INVESTOR FAQs

How often are deals made available to investors?

MC Companies (MC) aims for at least one deal per quarter, but it is solely market-driven.

Does MC host shareholder meetings?

MC has hosted annual shareholder meetings in the past. MC does plan to host future shareholder events (i.e., meetings, events, Zoom calls, etc.).

If my circumstances change, can I sell my shares to other investors?

MC will work with investors to find another investor to sell shares to, but MC does not advise either party as to price, terms, etc. Investors are responsible for arranging the deal between themselves and the buyer. MC only prepares the documents for the transfer of interest. It is important to note that the buyer must be an accredited investor.

Does MC provide yearly Fair Market Value (FMV) statements that can be submitted to an IRA?

MC can produce a statement upon request. The FMV statement will be uploaded to an investor’s portal, which the investor can then send securely to their designated IRA platform.

When and how does MC make the decision to refinance or sell a property?

MC constantly evaluates the markets in which it operates to determine when it is best to refinance or sell. The five- or ten-year timeline presented in the business plan is representative of what MC expects regarding the property’s performance. If market conditions change, MC will make the appropriate decision at that time which may cause the hold period to be shorter or longer than the initial business plan intended.

What are the tax ramifications of distributions after a cash-out refinance?

There is no tax due from cash-out refinance proceeds. Taxes are deferred upon the sale of the asset.

Will the preferred return be paid regardless of income? How often will the preferred return be paid?

The preferred return is accrued and paid only from the operating income. If operating income is insufficient to pay the preferred return, it is accrued and paid first when income is available. There is no distribution to the General Partner (GP) unless the Limited Partner (LP) is current on the preferred return payments.

What are the tax ramifications on preferred and monthly distributions?

The distributions from operations are classified as ordinary income, depending on several factors as determined by the CPA at the end of each tax year. The income is sheltered by the depreciation losses passed through to the investors so investors will incur net losses for tax purposes.

What is the estimated depreciation expected to be reported on my K-1?

There are many factors that affect the annual tax outcome, and MC is not able to provide investors with individual estimates. An investor may consult with their CPA for an estimate using the deal Sources and Uses and Financial Projections provided in the Business Plan.

Can I upload documents in my portal?

No, at this time there is no way to upload a document to your portal. If you need to share confidential documents, email investorrelations@mccompanies.com.

What is the minimum investment required for a deal?

$100,000 is the minimum investment for MC opportunities.

Am I qualified to invest with MC?

MC only accepts accredited investors. If you are unfamiliar with the definition of an accredited investor, click here to view the SEC’s definition and here to view the latest update. MC is not currently able to partner with non-SEC accredited investors..

Does MC accept non-SEC accredited investors?

No, MC does not accept non-SEC accredited investors. MC wants to ensure investors are not taking undue risk.

Does MC accept foreign investors?

Yes, but it must be an LLC and it cannot be a single-member LLC. For more information, please visit our Foreign Investor page.

How does the investment process work?

After the Investor Interest Form is filled out, and the brief introduction call with an MC Investor Relations Associate is completed, then an investor may create an account on the MC investor platform. The MC investor platform allows investors to review new deal opportunities when they are made available. When a deal is open for investment, the platform will guide you through the subscription process. You will be able to create your investment profiles (LLC, IRA, Trust, individual), sign legal documents, and set up a bank account to receive distributions. The investment is not final until all legal documents have been signed and funding has been contributed and cleared.

Does MC take 1031 Exchange Funds?

Currently, MC does not accept 1031 Exchange Funds.

Can I use money from my IRA to invest?

Yes, but MC must receive funds by the funding deadline. IRAs often take a while to send funds and if the deadline is missed, it is possible to be removed from the deal.

Does MC develop or invest in senior housing facilities?

Currently, MC does not develop or invest in senior housing facilities.

Does MC invest in Opportunity Zones?

Currently, MC does not invest in Opportunity Zones.

Does MC complete cost segregations on its properties?

MC constantly reviews its portfolios and properties and will take any action recommended by its CPAs, including cost segregation studies, tax analysis, or changes in tax laws, that will maximize the after-tax benefits to investors.

Does MC provide depreciation as a tax savings?

Yes, the depreciation flows through to the LP class on the yearly K-1.

Where and how do I access the investor portal?

At the top of this page in the menu bar, there is a link titled Investor Login. Click on the link which will direct to the login page where users will be asked to enter their username and password. Please note, your username is the email address used to register with MC.

I am having IT issues with my investor portal. How can I request help?

At the bottom right corner of the investor portal screen. You will see a large orange question mark (?). This is where issues can be submitted. MC Companies is copied on all portal issues so we can document any problems you’re having.

How are distributions made to investors?

Payments are made via Electronic Funds Transfer (EFT) 30 days after the quarter ends.

Where can I update my contact and bank account information?

MC values investors’ privacy. All information can be updated in the investor portal safely and confidentially. MC is notified as soon as information is changed in the portal.

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