Who is CRMM Holdings?
We are a real estate investment company registered in Florida. On the one hand, we invest in income producing real estate projects. On the other hand, we provide a platform for individual investors unable or unwilling to invest in whole real estate property to participate in the same investment opportunity on a smaller scale.
Who should consider investing with CRMM Holdings?
We are real estate investors ourselves. We allocate at least 10% of every project to ourselves. Our investment objective is long term stable income and gradual appreciation. We invite investors who has the same objective to join us and share our success.
You should consider investing with CRMM Holdings if you seek steady income stream, gradual appreciation, and are prepared to be invested for the long term.
What are the requirements to invest with CRMM Holdings?
We would like to work with investor whose financial situation is stable, has some experience in investing, and share our long term investment objective. If you are interested in investing with us, please contact us or complete this short questionnaire to determine if our investment approach is suitable for you.
What is the benefit of investing with CRMM Holdings?
Investing with CRMM Holdings is just like investing in rental real estate properties yourself minus the large capital requirement and all the hassles of being a landlord. And you enjoy the same steady income and appreciation potential. And we guarantee our investors no loss when we sell the property. Sounds too good? See the comparison for yourself.
How do I invest with CRMM Holdings?
You invest by sending money to CRMM Holdings and choose a project (usually a rent producing property) to associate your investment with. You receive interest based on your percentage in the project as long as the project is producing income. Please see additional information here.
How much money do I need to invest with CRMM Holdings?
The minimum amount you need to invest in one of our project is $1,000 or 1% of the project valuation, whichever is more. Follow up investment can be any amount in your existing project, or $1,000 or 1% (whichever is more) in new project.
So the bottom line is, in each project your investment should be at least $1,000 or 1% (whichever is more).
What information is available on each investment project?
We believe in transparency and the more information the better. We provide all relevant information on each project to our investors. The information on each project includes property address, property valuation (with CMA), lease information, tax and insurance information, homeowner association information, and any other information that will help our investors evaluate the investment potential.
Where can I find information on available investment projects.
Browse available investment projects here.
How is my percentage in a project decided?
Each project has a valuation, which is usually revised every year (if not more frequently). When you invest in a project, your percentage is decided by your investment amount divided by the valuation of the total project. It is also adjusted by the pending tax and insurance premium. Please see additional information here.
Does my percentage in a project change after investing?
Your percentage in a project is decided when you associate your investment with the project and does not change when project valuation changes. For example, if you invest $1,000 in a project with valuation of $100,000, you have a 1% stake in the project. If later on the project appreciates to $200,000, you still has 1% stake in the project. However, any new investment of $1,000 associated with the project will have only 0.5% stake in the project. There is the same concept whether you have 1% stake or own the project whole (100%).
How is the project valuation decided?
The real property’s valuation is usually decided by performing a comparative market analysis (CMA). The CMA compares the property with other properties on the market at the time or recently sold and derives a reasonable price the for property. The CMA report is available for our investors to see.
How do I know if the valuation of my project is justified?
We try to be conservative with our CMA (lower value). This benefits our investors because you may be investing in something that is worth more than face value. You can always check with 3rd party websites such as www.zillow.com or other resources for reference of the property value.
What about depreciation?
Our investors don’t need to worry about depreciation. We do not include depreciation in our valuation because when the property is sold, our investor is not responsible for the catch up tax. That is handled behind the scenes and our investor’s appreciation is based on sale price and purchase price (and selling costs), without considering depreciation.
How much do I get paid?
Your investment in a project, together with our own investment, earns interest. However, the interest you earn is not at fixed rate. Instead, it is linked to the performance of the project you associate your investment with and the percentage your investment counts in total project value. For example, if you invest $1,000 with CRMM Holdings and associate the investment with a project with a valuation of $100,000, and the project produces an income of $1,000 a month (after the 9% allocation to company expense). Your interest will be 1%(your percentage in the project)*$1,000(project income)=$10 per month.
How do I get paid?
Every time the project you invested in generates income (minus the 9% allocation to company expense), your account will be credited according to your percentage in the project. You have the option of withdraw the money from your account or save it up to reinvest in the same or different project.
Can I withdraw money from my account as I am getting paid?
Yes. You can withdraw money from your account or reinvest into same or different project.
Do I have to pay tax on my earning?
We report interest you receive on IRS 1099 form every year. Whether you need to pay tax depend on your own situation. We do not withhold tax from the interest you receive (unless we are required by law to do so).
If you have question about how to report the interest income and whether you need to pay tax, please consult with your tax adviser.
How is the property related expense (tax, insurance, repair/improvement) paid?
Every time there is a property related expense, your account will be debited according to your percentage in the project. Keep in mind you don’t pay anything for expenses related to company operation such as advertising, office supply, legal fees, etc.
What will be the expenses allocated to investor?
Just like investing in real estate on your own, there will be property related expense an investor has to pay. The expenses allocated to your account will mostly be tax, insurance, repair/improvement, HOA assessment if required, services such as lawn/pool maintenance if that is part of the lease. All known expenses related to a property will be clearly disclosed in the project before you invest. On rare occasion, there may be other expenses such as special assessment, which could happen to any real estate owner but certainly not often if at all.
And just like investing in real estate on your own, the expense you pay reduces the interest you receive (and the tax you have to pay) and we report it as such.
How will property improvement affect investor?
In the case of improvement, which usually is major work to the property and increases the property value, it will be consider a contribution (although investor doesn’t have to send in new money). Your account will be debited for the improvement cost according to your percentage in the project. Your base contribution to the project will increase (not percentage), and the project valuation will increase. This will reduce your reported interest (and tax) when the property is sold.
We try to do most improvements before the project is open to the investor. So chance of investor experiencing major improvement event is small. This is not to say improvement is a bad thing, sometimes it increases property value more than the investment itself. It is because usually the property starts generating income after all major improvements and our investors usually get into the project after it is already generating income.
What happens if I don’t have enough money in my account to cover the expense?
Nothing. Your account will simply become negative and you don’t need to send in payment (unless you insist). Your future credit will bring the account back to positive balance.
How can I get my original investment back?
Investing with CRMM Holdings is a long term commitment. It is not suitable for investor who wants to get in and out in a matter of months. Usually you need to commit your investment for a few years. You exit from your original investment in the following situations.
- The project is terminated. This usually means the underlying property is sold. The decision to sell the property is usually based on market condition and is made solely by CRMM Holdings. Usually our selling condition is at least after 1 year (usually 2 to 5 years) and the property will make a profit after selling expenses (which is much lower than normal selling expenses because our agent charges very low selling commission). If special situation arise in which we must sell at a loss, CRMM Holdings will make up the difference and return to investor his/her original investment amount.
- You sell your investment to other investors. You will be responsible to find other investors willing to buy your investment for agreed price. We will facilitate the transaction by receiving the payment from new investor and send payment to you, as well as recording the change of ownership.
- If you are in urgent need of money and CRMM’s financial situation allows (our sole decision), we may return your original investment minus any interest already paid to you. This will be a case by case situation.
- Lastly, even though normally each project lasts between 2 to 5 year, officially every investment agreement is for 7 year term. It means at the end of the 7 years, you have the right to ask for your original investment back while keeping all the interest you already received. Although it is unlikely a property is not sold for that long time.
In general, your investment in our project is a long term investment and should be treated as such.
In the extremely rare situation where the project is terminated due to destruction resulted in an insurance claim, CRMM will distribute the insurance payment to all investors having stake in the project according to percentage of interest. This is unlikely to happen and usually the insurance payment should be more than the original investment.
Do I get to share the gain on the property when it is sold?
Absolutely! All the profit from selling the appreciated property will be distributed to investors as interest based on his/her percentage in the project. There is no company expense allocation from selling profit. You keep all the profit you entitled to. Also keep in mind, you will not lose money on the sale of the property because of our no loss guarantee (see below).
Are you offering security for sale?
No! We are not offering security or investment instrument for sale. We are simply explaining to investors who is interested in real estate investment how they can participate in our investments and how we can help them.
Think of CRMM Holdings as an investment club. Like minded investors come together to invest in real estate project and share all aspects of profits.
Is my investment insured?
No. Investment with CRMM Holdings is not insured. We invite you to invest with us in our projects and give you your share of earnings based on specific project performance. We do have a no loss guarantee on the selling of the property (see below).
However, CRMM Holdings investments are safer compare to most other non insured investment because our projects are already producing income from day 1 of your investment. And unlike investing in residential mortgage, where non performing borrower can cause long time of zero income and reduced property value due to foreclosure. With our project, non performing tenant only causes temporary reduction of income until new tenant is found. Not to mention the potential profit in property appreciation that is not available with mortgage investment.
What is CRMM’s no loss guarantee?
When a property is sold, CRMM Holdings guarantees investor will receive no less than his original investment in the project. If the property is sold at a loss, CRMM will make up the difference.
(This guarantee applies only to CRMM’s selling of the property, it does not apply to insurance payout situation.)
I am ready to invest. Where do I start?
What if I don’t like uncertainties? Do you have a fixed return option?
Yes. If you want fixed return on a fixed term, we can work together too. Please see here.
I have other questions. Where do I go?
Please do not hesitate to contact us. We will try our best to answer your questions.