#1 Guide to Using Retirement Accounts for Reg CF Real Estate Investments on Invown
On Invown you can invest in Reg CF real estate investment on the platform using your retirement account. Here are some examples of retirement accounts that can be used:
SDIRA (Self-Directed IRA): A retirement account allowing investors to choose their investments beyond stocks and bonds.
Solo 401k: A retirement plan for self-employed individuals or business owners with no employees.
SEP IRA: A retirement plan for self-employed individuals or small business owners to make tax-deductible contributions.
Simple IRA: A retirement plan for small businesses with up to 100 employees that allows both employer and employee contributions.
eQRP: A qualified retirement plan for business owners and self-employed individuals, offering greater investment flexibility.
401k: A retirement plan offered by employers that allow employees to make contributions and receive a match from their employer — ask if the employer plans allow for self-directed private investments.
403b: A retirement plan for employees of tax-exempt organizations or public schools, similar to a 401k — ask if the employer plans allow for self-directed private investments.
Often to invest using one of these accounts, a custodian or company manages the retirement account and will request certain types of documents. Many custodians are unfamiliar with Reg CF offerings and request specific documents. This guide will translate what custodians are looking for based on their experience with Private Placements into equivalent documents in a Reg CF offering and where to find the relevant information or documents.
As a general rule with Reg CF everything is found in the Form C that the issuer (Sponsor) files with the SEC prior to allowing investors to invest in the offering. The Form C is found both on the SEC website (https://www.sec.gov/edgar/searchedgar/companysearch) and in the due diligence section of the page on Invown.
Here is a table the documents sometime asked for by a custodian or retirement account company:
| Document | Description | Availability for Reg CF |
|---|---|---|
| Company State Filing | Formal paperwork to establish the issuer’s company in a specific state, with details about the company and its ownership. | Available on request from the issuer or in the Due Diligence Documents section of the Sponsor’s offering page on Invown. |
| Operating Agreement | Legal document outlining the rules and procedures for running the issuing company, including member/shareholder rights and responsibilities. | Available in the Form C, which can be found in the Due Diligence Documents section of the Sponsor’s offering page on Invown and the SEC site. |
| Subscription Agreement | Contract between an investor and a company outlining the terms of an investment in a private offering. | Sent to the investor via email after making the investment commitment. |
| Investor Questionnaire | Form that potential investors fill out to provide information about their financial status and investment objectives. | Filled out by the investor during the investment checkout process on Invown. |
| PPM (Private Placement Memorandum) | Legal document used to disclose information about a private investment opportunity to potential investors, including risks and terms. | Information disclosed in the Form C, which can be found in the Due Diligence Documents section of the Sponsor’s offering page on Invown and the SEC site. |
