We strive to provide investors with access to high-quality exclusive deals which are not usually offered to the regular middle-class investor. We bypass the many obstacles that average investors face and serve as a bridge to connect you to the ultimate investment.
Until recently, private equity investments were exclusive to institutions such as hedge funds, banks and investment companies, or to wealthy and high net-worth individuals also referred to by the Securities and Exchange Commission (SEC) as accredited investors. To be considered an accredited investor, among other requirements, you must maintain an annual income exceeding $200,000 ($300,000 for joint income) for the last two years with the expectation of earning the same or a higher income in the current year. You would also be an accredited investor if you have a net worth exceeding $1,000,000, either individually or jointly with a spouse. In other words, an accredited investor is someone who is already extremely well-off.
So, these private placement investments are one of the factors that contribute to the fact that the rich get richer and the middle class are limited to the types of investments they can participate in, thus limiting their ability to grow out of the middle-class.
While the goal of the SEC was to protect unsophisticated investors from falling prey to risky ventures and shady operations that could jeopardize their savings, they unwillingly also stopped them from partaking in some of the best investments available.
On April 5th 2012, President Obama signed into law the JOBS Act, which makes it possible for regular people to begin investing in private placement offerings and ventures through crowdfunding. This is a huge break for investors. Under the provisions of the JOBS Act, you no longer have to be an accredited investor to begin investing in these deals.
High Barrier to Entry
With this new solution to the government regulations that had previously prevented them from investing, investors were now challenged with another difficulty. Although they can now invest in private offerings, both startups and joint ventures, most non-accredited investors encounter the high barrier to entry that many of the high-quality deals have, especially with regards to real estate investments.
Oftentimes, upon taking into account their limited capital and inadequate funding, non-accredited investors are forced to settle for mediocre deals and everyday investments. This occasionally causes unnecessary risks and, in some cases, losses to their hard-earned money, which could have otherwise been avoided by investing in institutional quality investments available to those with larger budgets.
Even those lucky enough to gain entry to the superior quality private placement investments often have to settle for a less competent management team, a sponsor who is new to the industry and who’s only motivation to accept the funds in the first place is the difficulty of raising capital from institutional investors early on in their career, or, in the best-case scenario, take a backseat when it comes to having their opinions and views taken into account. This frequently turns off investors from investing altogether as it affects their peace of mind when it comes to the execution of the deals, as well as the level of control that they possess.
Diversification is also a challenge for the working-class investor. If it is difficult to truly diversify with a large amount of money, it becomes almost impossible if you only have a smaller amount to work with. With the high cost of entry to many private offerings, it usually requires you too invest everything you have, and then some, to be able to participate in the offering, leaving no room for you to diversify into projects and ventures in different fields and industries.
BRIDGEHALL GROUP’S WINNING STRATEGY
In order to facilitate entry to markets as well as diversification for all investor classes, both on the high and low ends of the spectrum, we are reinventing real estate investing. Our unique combination of high-quality deals provide maximized returns and peace of mind, all with the accessibility aspect to ensure that all investors can now join the elite investors club of the wealthy and institutional investors, without having to compromise.
Our select group of strategic partners and associates create a winning combination of experience and reputation, allowing you to form a truly diverse portfolio, all while dealing only with the best of the best, to provide you with the confidence and peace of mind that all aspects of your investments are undertaken with excellence and perfection.