Frequently Asked Questions

Q: How do I sign up?

A: Each purchaser must execute a Subscription Agreement making certain representations and warranties to the Company, including such purchaser's qualifications as an Accredited Investor as defined by the Securities and Exchange Commission in Rule 501(a) of Regulation D promulgated.

Q: What makes RCA qualified to invest my money?

A: Losness Group Apartment Brokerage, the parent company of Redwood Coast Acquisitions( RCA), has over 10 years experience in the evaluation and underwriting of apartment buildings. They are well versed at deciphering the complex bookkeeping of any apartment asset. Primary evaluations are based on assessing the value of the asset through CAP Rates, Gross Rent Multipliers, Cost per Unit, Cost per Sq. Ft., Sales Comparables and Return on Investment (ROI). Secondary evaluations are conducted on future value of the asset through capital improvement, rental increases, tenant improvement, asset repositioning and reduction of costs. The combinations of the primary and secondary evaluations give us a strong idea of the properties current performance versus the properties future performance. The goal is to increase revenue during the holding period while simultaneously creating larger equity holdings.

Q: What if I want to get my investment out?

A: Investors understand that the Membership Units cannot be sold or transferred without the prior written consent of the Manager, which consent may be withheld in its sole and absolute discretion and which consent will be withheld if any such transfer could cause the Company to become subject to regulation under federal law as an investment company or would subject the Company to adverse tax consequences.
You are aware and acknowledge that, because of the substantial restrictions on the transferability of the Membership Units, it may not be possible for you to liquidate your investment in the Company readily, even in the case of an emergency.

Q: What fees do I have to pay?

A: Redwood Coast Acquisitions currently has no fee structure that is passed through to its members. RCA wants its investors to know that their investment is being used in its highest capacity.

Q: How often do I get paid?

A: The Class A Preferred Units sold through this Offering shall be provided an five percent (5%) non-compounding non-cumulative Preferred Return Distribution (the "Preferred Return") paid to investors semiannually with bi-annual four percent (4%) payments made on January 1st and July 1st of each fiscal year. The Preferred Return will be subject to the financial performance of the Company and Management approval. The Class A Members shall also participate in a pro-rata percentage of any additional net income approved for distribution to Members. Assuming maximum proceeds are raised through this Offering, the Class A Members would participate in forty percent (40%) of any additional net income generated by the Company whether derived from net operating profit or from capital gains from the sale of assets.

Q: Do I get tax benefits?

A: "Pass-through" or "flow-through" taxation is available, meaning that (generally speaking) the earnings of an LLC are not subject to double taxation unlike that of a "standard" corporation. However, they are treated like the earnings from partnerships, sole proprietorships and S corporations with an added benefit for all of its members. There is greater flexibility in structuring the LLC than is ordinarily the case with a corporation, including the ability to divide ownership and voting rights in unconventional ways while still enjoying the benefits of "pass-through" taxation.

Q: What is the benefit of an LLC?

A: The LLC is a hybrid that combines the characteristics of a corporate structure and a partnership structure. It is a separate legal entity like a corporation but it has entitlement to be treated as a partnership for tax purposes and therefore carries with it certain tax benefits for the investors.
The primary advantage of an LLC is limiting the liability of its members. Unless personally guaranteed, members are not personally liable for the debts and obligations of the LLC.

Q:What is an "Accredited Investor"?

A: The Company will conduct the Offering in such a manner that Units may be sold only to "Accredited Investors" as that term is defined in Rule 501(a) of Regulation D promulgated under the Securities Act of 1933 (the "Securities Act"). In summary, a prospective investor will qualify as an "Accredited Investor" if he, she, or it meets any one of the following criteria:
• Any natural person whose individual net worth, or joint net worth with that person's spouse, at the time of his purchase, exceeds $1,000,000.
Except as provided in paragraph (2) of this section, for purposes of calculating net worth under this paragraph:
(i) The person's primary residence shall not be included as an asset;
(ii) Indebtedness that is secured by the person's primary residence, up to the estimated fair market value of the primary residence at the time of the sale of securities, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of the sale of securities exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability); and (iii) Indebtedness that is secured by the person's primary residence in excess of the estimated fair market value of the primary residence at the time of the sale of securities shall be included as a liability.
• Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of those years and who has a reasonable expectation of reaching the same income level in the current year;
Any bank as defined in Section 3(a)(2) of the Act, or any savings and loan association or other institution as defined in Section 3(a)(5) (A) of the Securities Act, whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to Section 15 of the Securities and Exchange Act of 1934 (the "Exchange Act"); any insurance company as defined in Section 2(13) of the Exchange Act; any investment company registered under the Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of that Act; any Small Business Investment Company (SBIC) licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000; any employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan association, insurance company, or registered investment advisor, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self directed plan, with investment decisions made solely by persons who are Accredited Investors;
• Any private business development company as defined in Section 202(a)(22) of the Investment Advisors Act of 1940;
• Any organization described in Section 501(c)(3)(d) of the Internal Revenue Code, corporation, business trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000;
• Any director or executive officer, or general partner of the issuer of the securities being sold, or any director, executive officer, or general partner of a general partner of that issuer;
• Any trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in Section 501(b)(2)(ii) of Regulation D adopted under the Act; and
• Any entity in which all the equity owners are Accredited Investors.