EquityRoots is a private, secure and efficient way for qualified investors to discover, analyze, review and invest in hotel assets. EquityRoots brings vetted hotel properties and their typical transactions, (Acquisitions, New Development, Repositioning) to potential investors along with the ability to appraise details of the property, review legal documentation and perform other forms of due diligence. EquityRoots lets you make knowledgeable investment decisions on a virtually limitless online platform.
How you make money
If you plan on buying debt: Interest and Principal payments will be made directly to the investor as per the terms of the debt instrument. If you plan on buying equity: The operating agreement of the newly structured Limited Liability Company holding the asset dictates how the business is run. Remember, you own part of the LLC, so profits and losses are passed through to you on your K1, without double taxation.
How EquityRoots makes money
EquityRoots does not charge fees directly to investors. They do charge issuers various fees (typically $100K-$255K) to the issuers.
Is it safe?
Like all forms of investing, commercial real estate entails risk. As an investor, you must be prepared for the potential loss of all of your investment. If this will render you unable to survive financially, or you are unwilling to accept the potential loss of capital you have invested, they do not recommend you invest with them, or anyone else. With that fact established, they understand the value of total due diligence, deep underwriting of potential investments and other basics that control our risk. We are committed to offering only investments that meet our stringent criteria.