Answers to the questions investors ask most often. If yours isn't here, please get in touch.
We are a real-estate investment company registered in Florida. We invest in income-producing real-estate projects, and we provide a platform for individual investors who are unable or unwilling to buy a whole property to take part in the same opportunity on a smaller scale.
We are real-estate investors ourselves and allocate at least 10% of every project to our own account. Our objective is long-term stable income and gradual appreciation. You should consider investing with us if you seek a steady income stream and gradual appreciation and are prepared to stay invested for the long term.
We prefer to work with investors whose financial situation is stable, who have some investing experience, and who share our long-term objective. If you're interested, please contact us or complete our short questionnaire so we can determine whether our approach suits you.
Investing with us is much like owning rental real estate yourself — minus the large capital requirement and the hassles of being a landlord — while you enjoy the same steady income and appreciation potential.
You invest by sending money to CRMM Holdings and choosing a project (usually a rent-producing property) to associate your investment with. You receive interest based on your percentage in the project for as long as it produces income.
The minimum in any one project is $1,000 or 1% of the project valuation, whichever is greater. A follow-up investment can be any amount in a project you're already in, or $1,000 / 1% (whichever is greater) in a new project.
We believe in transparency: the more information, the better. For each project we provide the property address, valuation, monthly income, tax and insurance information, homeowner-association dues, and anything else that helps you evaluate the investment. You can also get information about the property from sites like Zillow.com.
Each project has a valuation, usually revised at least yearly. When you invest, your percentage is your investment amount divided by the total project valuation, adjusted for pending tax and insurance.
No. Your percentage is fixed when you associate your investment with a project and does not change when the valuation changes. If you invest $1,000 in a $100,000 project, you hold 1%; if the project later appreciates to $200,000, you still hold 1%. A new $1,000 investment at that point would buy only 0.5%.
Usually by market analysis, which compares the property with similar ones on the market or recently sold to derive a reasonable price. You can also get valuation of the property from sites like Zillow.com.
We try to be conservative with our valuation, which benefits you because you may be investing in something worth more than face value. You can always cross-check with third-party sources such as Zillow.
You don't need to worry about depreciation. We do not include it in our valuation, and you are not responsible for any depreciation catch-up tax when a property is sold — your appreciation is based on the sale price versus the purchase price and selling costs.
Your investment earns interest that is not a fixed rate — it is tied to the performance of the project and your percentage in it. For example, if you invest $1,000 in a $100,000 project that produces $1,000 a month (after the 9% company-expense allocation), your interest is 1% × $1,000 = $10 per month.
Each time the project generates income (less the 9% company-expense allocation), your account is credited according to your percentage. You can withdraw the money or leave it to reinvest in the same or a different project.
We report the interest you receive on an IRS 1099 form each year. Whether you owe tax depends on your own situation, and we do not withhold tax unless required by law. Please consult your tax adviser.
Each time there is a property-related expense, your account is debited according to your percentage. You pay nothing toward company-operation costs such as advertising, office supplies, or legal fees not specific to properties you invested in.
Expenses allocated to you are mostly tax, insurance, repairs/improvements, HOA assessments, and services such as lawn/pool maintenance where they are part of the lease. All known expenses are disclosed on a project before you invest. Like owning real estate yourself, the expenses you pay reduce the interest you receive (and the tax you owe), and we report it that way.
A major improvement that raises the property value is treated as a contribution (though you don't send new money): your account is debited for your share of the cost, your cost basis in the project increases, and the valuation increases. We do most improvements before a project opens to investors, so experiencing a major improvement event is unlikely.
Nothing happens — your account simply goes negative and you don't need to send payment (unless you want to). Future credits bring the balance back to positive.
Investing with CRMM Holdings is a long-term commitment — usually a few years — not a get-in-and-out-in-months arrangement. You exit in one of these ways:
The project is terminated, usually because the underlying property is sold. The decision to sell rests solely with CRMM Holdings and is based on market conditions.
You sell your investment to another investor (including CRMM) at an agreed price. We facilitate the transaction by collecting payment from the buyer, paying you, and recording the change of ownership.
If you have an urgent need and CRMM's financial situation allows (at our sole discretion), we may return your original investment less any interest already paid — handled case by case.
Finally, after seven years since your original investment, you may request your original investment back while keeping all interest already received.
Yes. All profit from selling an appreciated property is distributed to investors as interest based on percentage, with no company-expense allocation taken from the selling profit — you keep all the profit you're entitled to.
No. We are not offering a security or investment instrument for sale. We simply explain to investors interested in real estate how they can participate in our investments and how we can help. Think of CRMM Holdings as an investment club: like-minded investors coming together to invest in real-estate projects and share in the results.
