investor FAQ

Getting started

Who can invest?

Most offerings are open to accredited investors only. For an individual, that generally means a net worth over $1 million not counting your home, or income over $200,000 in each of the last two years ($300,000 with a spouse) with the same expected this year. Some trusts and entities also qualify. Because our offerings use Rule 506(c), accreditation has to be verified by a third party such as your CPA or attorney. Our team can send you a simple letter template for them to sign.

How do I get started?

Join the club with a short intake form, have an onboarding call with Lane, and once your accreditation is verified you can see what the community is investing in.

Is now a good time to invest?

No one can time the market, and we don’t try to. We would rather you spread investments across several offerings and over time, the same idea as dollar-cost averaging, so no single entry point decides your outcome. Our focus is on what we can control: conservative underwriting and active management of each asset.

What is your track record?

Over the years we have taken a number of projects full cycle, through sales and refinances, along with the setbacks that come with real operating experience. Past results do not predict future ones, so detailed project history is shared with verified accredited investors through the investor portal rather than on the public site. We would be glad to go through it with you on a one-on-one call.

Is my investment guaranteed?

No. Private investments carry real risk, including loss of your entire investment. Be cautious of anyone who promises guaranteed returns.

How long is my money tied up?

Treat any private investment as long-term and illiquid. Holding periods vary by investment and are set out in the offering documents, so only invest money you will not need for the life of the investment.

What is my liability as a limited partner?

As a limited partner, your liability is generally limited to the amount you invested, and you do not sign on any loans. Oil and gas can be different; see the oil and gas questions below.

Are the properties insured?

Yes. Our real estate carries commercial insurance, including loss-of-rent coverage, and lenders require coverage levels above what many owners would choose on their own. Developments carry an extra layer through the general contractor. We have handled fires, storms and freeze damage and use third-party claims adjusters on large claims. Diversifying across several investments limits how much any one event affects you.

What is the Family Office Ohana Mastermind (FOOM)?

A paid peer group for accredited investors who want to go deeper than deal vetting. Members meet on regular video calls and at in-person retreats, and cover tax and legal structure, infinite banking and legacy planning alongside investing. You can invest in our offerings whether or not you join. Apply at thewealthelevator.com/foom.

Oil and gas

Why do accredited investors look at oil and gas?

Mainly for its tax treatment and for diversification away from stocks and real estate. Direct drilling programs are one of the few investments where a large share of the first-year investment can be deductible.

How does the oil and gas deduction work?

There are three pieces. Intangible drilling costs (labor, fuel, site work) usually make up most of a well’s cost and can be deducted in the year paid. Tangible equipment is depreciated, and bonus depreciation can speed that up. Once a well produces, small producers can usually take a percentage depletion deduction on its income. Rules and timing conditions apply, so confirm with your CPA.

Can the deduction offset my W-2 or business income?

Only if the investment is structured for it. Under the tax code, a working interest held with unlimited liability is not treated as passive, so its losses can offset active income. Programs usually do this by having investors elect general partner status during drilling, then convert them to limited partners later. The same investment held as a limited partner produces passive losses instead.

What are the main risks in oil and gas?

Oil and gas prices you cannot control, operator quality, wells that underproduce or come up dry, and tax rules that can change. The deduction only helps if the project itself makes sense.

How is a drilling program different from oil stocks, ETFs or royalty trusts?

Stocks, ETFs and MLPs give market exposure but not the drilling deductions. A direct working interest can carry the deductions but is illiquid and carries more risk.

Pre-IPO

What is a pre-IPO investment?

A stake in a private company before its shares trade on a public exchange, usually bought either in a company financing (primary) or from an existing shareholder (secondary).

What is the difference between primary and secondary?

In a primary investment, new shares are issued and the money goes to the company. In a secondary, an existing shareholder sells, and the money goes to that seller. Secondary shares can be restricted or need company approval to transfer.

What is an anchor investor or an access fund?

An anchor investor makes a large early commitment that helps a fund reach the size needed to get an allocation. An access fund pools investors so they can participate in a company they could not reach individually.

Is pre-IPO investing risky?

Yes. It is speculative and illiquid, with less public information, transfer restrictions, uncertain valuations and concentration in a single company. A company may never go public, and you can lose your entire investment.

Taxes and logistics

What is a K-1 and when do I get it?

A K-1 reports your share of a partnership’s income or loss for the year, similar to a 1099. K-1s are usually sent between mid and late March, so many investors file a tax extension.

Do you take 1031 exchanges?

Usually not. A 1031 into a syndication generally only works for very large commitments set up as tenants in common. Some investors instead use passive losses from depreciation in other investments to offset gains from a property sale, which is sometimes called a “lazy 1031.” Whether that works for you depends on your situation, so talk to your CPA before selling.

Can I invest through a retirement account or entity?

Yes. We accept self-directed IRAs, Roth IRAs, Solo 401(k)s and company entities. Ask your custodian or CPA about the details for your situation.

How do I invest once I am approved?

Create an account in the investor portal, sign the documents electronically, then wire your funds. Only use wire instructions from the secure portal, never from an email.

Who do I contact with questions?

Email team@thewealthelevator.com or call 808-215-5531 during business hours.

This page is for education only and is not tax, legal or investment advice, or an offer to sell any security. Past performance does not guarantee future results. Consult your own CPA, attorney and financial advisor.