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The minimum investment amount on HoneyBricks typically starts at $5,000, although some specific projects may require higher minimums.
Investing in HoneyBricks involves various risks inherent to real estate and investment platforms, including market volatility, liquidity challenges, regulatory changes, operational uncertainties, economic fluctuations, and technology-related vulnerabilities.
Investing in Sweater's Cashmere Fund, like any venture capital investment, carries inherent risks. These risks include market volatility, economic conditions, and challenges specific to the companies in which the fund invests.
HoneyBricks offers a Secondary Market for liquidity, allowing investors to buy and sell assets after a 12-month hold via SPVs and blockchain technology.
Sweater provides biannual redemption windows for investors to access their investment before the end of the investment term. However, there may be restrictions and limitations on the redemption process.
HoneyBricks targets over 15% annual returns and aims for a cash-on-cash return of over 5% from its real estate investments. These returns are projections based on conservative reviews and are derived from property appreciation and reliable cash flows from high-occupancy assets.
The investment time horizon on HoneyBricks is inherently long-term, with the expectation that investors may hold their investments for several years to fully realize the potential appreciation and sustained cash flows from multifamily real estate assets. While a secondary market exists to provide liquidity after a 12-month holding period, immediate or short-term exit opportunities may be limited.
Sweater's Cashmere Fund is designed for long-term investments, but they provide biannual redemption windows for investors to redeem a portion or all of their investment.
HoneyBricks is available to accredited US investors and to non-US investors without accreditation requirements.
Any U.S. resident over the age of 18 with a Social Security Number (SSN) is eligible to invest in Sweater's Cashmere Fund.
The assets on HoneyBricks, like any real estate investments, are subject to market volatility influenced by economic conditions, interest rates, and local market trends. These fluctuations can impact property valuations, posing risks particularly for those seeking short-term gains.
The assets on Sweater's platform, including the investments made by the Cashmere Fund, can be subject to volatility.
HoneyBricks adheres to regulations set by the SEC and undergoes necessary audits to ensure transparency and investor protection. Its investment offerings require SEC filings and provide detailed offering circulars to investors.
Sweater operates under SEC regulations, allowing them to accept investments from non-accredited investors.
HoneyBricks ensures its properties are insured against physical damages and losses, offering a layer of protection for investments. However, this insurance does not cover market volatility, economic downturns, or fraudulent activities that might affect property values. Additionally, coverage limits may not fully reflect current market valuations.
Specific details about Sweater's insurance policies are not available on their website.
HoneyBricks investors receive dividends from the net rental income of properties after expenses and reserves. These regular cash distributions aim to provide a predictable passive income stream from high-occupancy multifamily real estate investments. The exact amount of dividends may vary with the performance of the assets.
According to Sweater's website, the Cashmere Fund does not pay dividends to investors.
Investors on HoneyBricks can potentially get their money back by selling their shares on the platform's Secondary Market after a 12-month holding period, subject to market demand. The timing and success of the sale depend on market conditions, and while there are no HoneyBricks fees for the transfer, blockchain network fees may apply.
Investors in Sweater's Cashmere Fund can redeem their investment during biannual redemption windows. However, there may be restrictions or limitations on the redemption process.
HoneyBricks charges no fees for initial investments or for transfers on the Secondary Market. Investors may only incur blockchain network fees for transactions executed on the platform.
Sweater's Cashmere Fund charges a fee of up to 2% for redeeming investments during the semi-annual redemption windows.
HoneyBricks offers tax-advantaged investing and provides necessary tax documentation to support investors in reporting their investment income.
Venture funds, like Sweater's Cashmere Fund, generally provide tax reporting support to investors.