Frequently Asked Questions
How will properties be prioritized?
We will continually monitor properties that come to market and consider those that can be purchased with the money in the fund. The board will analyze properties based on financial feasibility, impact on the community and businesses.
What type of businesses do you want to encourage and protect?
We would like to encourage businesses that are consistent with the cultural identity of Little Tokyo. We will focus on businesses that add to the culture and the community of Little Tokyo but will not be limited to Japanese and Japanese American businesses. Examples of the types of businesses we would like to encourage are the mom and pop type businesses that add to the richness of Little Tokyo.
How will properties be analyzed?
- Impact on the community
- Impact on the businesses
- Financial feasibility
How and when will the board be elected?
A meeting to elect the board will be convened when there are 50 investors in the fund.
Will investors get to vote on which properties to acquire?
No. The board that is elected by the investors will be making these decisions on behalf of the investors.
What is the timeframe of the investment?
Investors should expect a 5-7 year holding period on the funds in the investment. The fund will be investing in real estate which is illiquid. The fund will need time to finance, re-finance and purchase additional properties. Our goal is to be successful at acquiring properties in the community while providing investors with a nominal return and hope that this will motivate investors to stay invested in the fund to continue to grow the real estate portfolio. It is possible that the holding period can be longer than expected.
What if I need to get my money out of the fund?
Best effort will be used to allow for distributions from the fund in the event of a hardship. Real estate is not a liquid investment. Therefore, distributions may not be possible, but best effort will be made to honor distribution requests.
What sort of return can I expect on my investment?
The fund will aim to provide investors with a 2-3% rate of return, although there is no guarantee of the fund’s performance. The other return on the investment will be intangible in the form of the social/community impact that is made on the community of Little Tokyo and protecting its cultural identity and heritage.
How will investors be taxed on the distributions?
We are currently working with our attorney and accountant to get a detailed answer for investors.
How will we communicate updates and progress to investors and the public?
We are in the process of adding a blog section to the website that will be used to communicate progress, summarize meetings that are held, and to convey any new important information
What are the potential risks involved with this investment?
Investments in real estate can fluctuate and are subject to risk, including possible loss of principal.
How will we measure success?
Success will be measured by achieving our goal of protecting Little Tokyo and encouraging businesses consistent with its cultural identity. Tangibly, the purchase of one or more buildings will show our success, as will the continuing legacy of existing Little Tokyo businesses and the addition of new businesses. We have already seen some success in the community coming together around this idea and show an interest in protecting and investing in the Little Tokyo community.
More questions and answers will be posted in the future.