Investment Process FAQ



Our value creation process highlights important values that we aim to provide and look for in those we partner with. We are looking for long-term partners who share our goals and core values.

We do not accept capital from new and existing investors until we have a need for the funds (generally for acquisitions or large improvements to existing properties). For this reason, it can take time (months to years) for us to accept new investments from new and existing investors. Please be patient with us as we look to match capital availability with the supply of deals that match our strict underwriting criteria. We will keep you informed when we are ready to accept your investment.

There is no waitlist for becoming an Alturas investor. Things we take into consideration include:

  • How well an investor fits our core values
  • Capital available
  • Time spent as a potential investor
  • Industry expertise

The minimum for our debt and equity offering is $250,000 for all prospective investors and we prioritize investments of at least that amount.

To be considered an accredited investor, one must have a net worth of at least $1,000,000, excluding the value of one’s primary residence, or have income at least $200,000 each year for the last two years (or $300,000 combined income if married) and have the expectation to make the same amount in the following year. If you are interested in investing through an entity, please see the SEC’s website for further clarification.

To invest in the Alturas Real Estate Fund, individuals must be accredited investors as defined in Securities and Exchange Commission Rule 501(a) of Regulation D (17 CFR 230.501(a)) under the Securities Act and will be asked to provide certain statements and other information regarding your accredited investor qualifications.

We do accept IRA funds on a limited basis. No more than 25% of our total investor capital can be sourced from retirement accounts.

No. We are not set up to receive 1031 proceeds. We are an open-ended, evergreen fund and investors purchase membership units in the fund. Those units do not meet the like-kind criteria in the eyes of the IRS for capital gains taxes to be deferred.

Returns disclosed in the quarterly report are an average of returns for all investors in the fund.  Each unit receives the same distribution but the price each investor paid for each unit differs.  The average of that range, which is what we disclose in our quarterly report, will skew to the lower end of the range because many of the units have been purchased at the higher end of the range of share price over the years.



We generally don’t begin the documentation and funds transfer process until we have a high level of confidence that a project will be completed. Do not fill out the documents provided during the pre-partnership phase. Once we are ready to move forward with your investment, we will send you the documents via DocuSign for signature.

Equity Investment

Funds are placed in a temporary note. Temporary notes generally last for 9-15 months and earn 6-8% interest. The term and rate of the note depends on various factors including amount of your current investment.

Once the temporary note has matured the funds automatically purchase equity units within the fund at the latest unit price.

Note Investment

Generally ranges from 24-60 months earning interest that has ranged between 6-8% historically.

Once note investments mature, investors have the option to:

  • Reinvest their investment into another note
  • Redeem their funds
  • Convert their funds into equity

Temporary note terms are the same for new and existing investors. The term and rate of the note is based on supply and demand of capital as well as the amount of the investment you make into the current round of funding (and does not factor in previous investments).

Feel free to contact us by email at for any changes you may need including:

  • Distribution preference changes
  • Updating contact information
  • Updating payment information
  • Redemptions
  • Transfers

We generally request funds be sent to us 2-4 weeks prior to closing a transaction in the fund. Those funds are first deposited into our subscription account where they stay until they are deployed. Once the funds are deployed, you begin earning interest on your temporary note (equity investments) or investor note.

We only determine the net asset value (NAV) of the units as of the first day of every quarter. Those are the only 4 days of the year we can transact units (purchases or redemptions).

Investors have the option of receiving distributions in cash or reinvested the distributions directly into additional membership units. Reinvested distributions are invested directly into equity (no temporary note required) and are invested at the share price from the beginning of the quarter in which the distributions were earned. Generally, members may change their reinvestment election up to two times per year by giving 90 days’ written notice to the manager.

Investors will be required to hold their equity units for a minimum of twenty-four (24) months after the effective date of the issuance of such units before they may request redemption, subject to certain exceptions as set forth in section 11.1.

Redemptions can be requested but are subject to a 90-day notice period, and then funds would be redeemed as of the first day of the quarter following the 90-day notice period.

All information regarding your equity investment will be documented in the initial subscription documents that are completed and signed during the onboarding process. We will notify you when your investment has converted to equity.


Ongoing Partnership

Distributions for equity investments are typically paid out by the end of the month following the end of the quarter. Distributions for debt investments are paid out no later than 15 days after the quarter ends but are typically paid out within about a week after the end of the quarter. We pay distributions by check, wire, or ACH.

Statements are sent out around the same time as distributions are made each quarter from our third-party administrator, Verivest. Debt statements are sent within the first 15 days after the quarter ends and equity statements are sent by the end of the month following the end of the quarter.

Quarterly statements will show the amount of your investment at the beginning of the quarter, earnings for the quarter, distributions or re-investments and the ending balance. Equity statements also show a roll-forward of the units you hold in the fund, the balance of funds not yet deployed, and the amount of any new funds that were subscribed to at the beginning of the subsequent quarter.

You can express interest in adding to your position by updating your investor survey submission. All new money coming into the fund will follow the same procedures regardless of status within the fund.

We provide quarterly reports at the end of the month following the end of the quarter. We will send these electronically, so please make sure we have your correct email address on file and that our communication does not end up in your junk or spam filters. The reports will contain a management letter, explain the performance for the quarter, and give investors information regarding new acquisitions, asset dispositions, fund returns, etc. The Manager holds quarterly manager conference calls which are generally held 6-8 weeks after each quarter end and are announced via email.

Equity investors receive the K-1 for their equity investment in the fund around the beginning of April each year. Debt investors can expect to receive a Form 1099-Int from Verivest no later than January 31st each year. Debt investors include short-term, long-term and temporary noteholders.

The fund engages an external audit firm to provide an audit annually. The audited financial statements are distributed to investors by the end of May each year.

We host an annual investor meeting in the Boise, Idaho area, when possible. It generally takes place in late summer or early fall and can be attended in person or online. It is open to all current and prospective Alturas investors. Further information regarding logistics and activities for those that choose to join us in person is provided well in advance of the meeting.

Feel free to contact us by email at for any changes you may need including:

  • Distribution preference changes
  • Updating contact information
  • Updating payment information
  • Redemptions
  • Transfers

GAAP represents all cash invested and reinvested from an investor. NAV represents everything in GAAP plus an investor’s share of the unrealized gains from the disposition of an asset and is what an investor would receive upon selling all of their member units.

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