Frequently Asked Questions
General Questions
You can get started as an investor with Comfort Capital by clicking here. The entire account creation and investment process is completed online via the Comfort Capital website. You will be prompted to provide or verify any required information, as well as make the necessary acknowledgments electronically.
We currently support personal investment accounts, joint accounts, and certain entity accounts (Trusts, Limited Liability Companies, Limited Partnerships, C Corporations, and S Corporations). For more information on IRA accounts, see below.
Yes you can. It just needs to be a self directed individual retirement account, which only means you need to call the custodian/company that manages these funds and tell them you want to self direct into a Regulation D real estate investment. They will have the steps you need to follow to invest your money with us. Be sure to contact your financial advisers before utilizing a self-directed IRA.
Managing the communities is a top priority for us and we have a vertically integrated approach to ensure their successful operation. Our property management division, Comfort Communities, handles the day-to-day activities with expertise and efficiency. With over 15+ years of experience in manufactured housing community management, Comfort Communities implements an unmatched management strategy that is highly effective in maximizing the community’s potential. Rest assured, we are fully committed to delivering exceptional management services to optimize the performance of our communities.
Comfort Communities has a uniquely effective approach to infilling vacant lots. We are a licensed manufactured home dealer, meaning we purchase our homes in bulk directly from the manufacturer. This provides our management team with the resources necessary to quickly infill vacant lots for a whole sale price.
Cash flow distributions start being paid out to investors within 6 months of closing the transaction as the investment stabilizes. After the initial holding period, cash flow distributions are sent out monthly via check or direct deposit through our investor portal.
As a partner in the LLC that purchases the properties, you will receive a K-1. A K-1 is a tax form used by partnerships to provide investors with detailed information on their share of a partnership’s taxable income. Partnerships are generally not subject to federal or state income tax, but instead issue a K-1 to each investor to report his or her share of the partnership’s income, gains, losses, deductions and credits. The K-1s are provided to investors on an annual basis so that each investor can include K-1 amounts on his or her tax return.
Yes, you can.
Comfort Capital has the utmost faith in manufactured housing communities as an investment due to their strong resilience during recessions. Additionally, manufactured housing communities produce stable cash flows with the availability for growth through value-add projects that other real estate asset classes cannot provide.
While it is true that the homes may depreciate in value over time, our investment strategy focuses on uplifting and enhancing the park, which can positively impact the value of our tenant’s homes, all else being equal. It’s important to note that our primary objective is not to own the homes themselves, but rather to own and lease the land beneath them while increasing the overall park value.
$50,000 is the minimum dollar amount you must contribute in order to invest with Comfort Capital.
Investment Types
As a partner in the LLC that purchases the properties, you will receive a K-1. A K-1 is a tax form used by partnerships to provide investors with detailed information on their share of a partnership’s taxable income. Partnerships are generally not subject to federal or state income tax, but instead issue a K-1 to each investor to report his or her share of the partnership’s income, gains, losses, deductions and credits. The K-1s are provided to investors on an annual basis so that each investor can include K-1 amounts on his or her tax return.
Our goal is to finalize all K-1s by March 31st, however, we do rely on outside accounting services and may require additional time to furnish the forms in a way that is to the investor’s best advantage. Accordingly, you may be required to obtain one or more extensions for filing federal, state and local tax returns.
An accredited investor, in the context of a natural person, includes anyone who:
- earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR
- has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence)
On the income test, the person must satisfy the thresholds for the three years consistently either alone or with a spouse, and cannot, for example, satisfy one year based on individual income and the next two years based on joint income with a spouse. The only exception is if a person is married within this period, in which case the person may satisfy the threshold on the basis of joint income for the years during which the person was married and on the basis of individual income for the other years.
In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:
- any trust, with total assets in excess of $5 million, not formed to specifically purchase the subject securities, whose purchase is directed by a sophisticated person, or
- any entity in which all of the equity owners are accredited investors.
In this context, a sophisticated person means the person must have, or the company or private fund offering the securities reasonably believes that this person has, sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.
There are other ways to qualify as an accredited investor. See the SEC Website for more information here: SEC.gov | Accredited Investor
Yes, you can! So long as your SDIRA/SD401K provider permits the use of the funds for MHC investing and the proper regulations are followed. We advise investors to work with their custodian to maintain confidence that their SDIRA/ SD401K investment is managed correctly.
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