FAQ 1

 

How do I contact Hamptons Capital?

If you have any questions, please email us at info@HamptonsAnalysis.com or call us at 1-800-970-9010.

 

How do I get started as an investor with Hamptons Capital?

The entire account creation and investment process is completed online. You will be prompted to provide or verify any required information, as well as make the necessary acknowledgments electronically.

 

Am I an accredited investor?

An accredited investor, in the context of a natural person, includes anyone who:

 

• Has earned income that exceeded $200K (or $300K together w/ a spouse) in each of the prior two years, and

reasonably expects the same for the current calendar year, OR

 

• Has a net worth over $1M, either alone or together with a spouse or spousal equivalent (excluding the value of the

person’s primary residence), OR

 

• Holds good standing a Series 7, 65 or 82 license

 

On the income test, the person must satisfy the thresholds for the prior two years consistently either alone or with a spouse, and cannot, for example, satisfy one year based on individual income and the next two years based on joint income with a spouse. The only exception is if a person is married within this period. The person may satisfy the threshold based on joint income for the years during which the person was married and based on individual income for the other years. In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:

 

• Any trust with total assets more than $5M, not formed to specifically purchase the subject securities, and whose

purchase is directed by a sophisticated person, OR

 

• Certain entity with total investments more than $5 million, not formed to specifically purchase the subject securities, OR

 

• Any entity in which all the equity owners are accredited investors.

 

In this context, a sophisticated person means the person must have, or the company or private fund offering the securities reasonably believes that this person has, sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.

 

What type of accounts can I invest through?

There are several options for types of entities/accounts you can use when investing in our funds. You can invest as an Individual, Jointly, through an LLC (Limited Liability Company), Corporation, Partnership, Retirement Plan/401K, or a Trust.

 

Can I invest through my IRA?

If you have an existing IRA, or a 401K from a previous employer, it is likely that you will be able to self-direct all or a portion of it into our investment vehicles. Check with your current custodian to see if they will allow you to self-direct your retirement account. If the answer is yes, please contact a member of our investor relations team by email at info@HamptonsAnalysis.com, call us at 1-800-970-9010, and we will introduce you to one of the custodians that we work with that will allow you to invest in alternative assets using your retirement funds.

 

What type of tax documents will I receive?

That depends on which vehicle you decide to invest in. If you invest in our new accredited fund, you will receive a Form K-1. A Form K-1 is a tax form used by partnerships to provide investors with detailed information on their share of a partnership’s taxable income. Our goal is to finalize all Form K-1s annually by March 31st, however, we do rely on outside reporting and may require additional time to furnish the forms in a way that is to the investor’s best advantage. Accordingly, you may be required to obtain one or more extensions for filing federal, state and local tax returns, but that is not our intention. If you invest in our new non-accredited vehicle, you will receive a Form 1099-DIV. A Form 1099-DIV is a tax form that records income earned from entities or persons other than your employer. For our non-accredited vehicle, it will record the amount of distributions you receive and whether those distributions are income or a return of capital. We will provide you with a Form 1099-DIV by January 31st each year.

 

FAQ 2

 

Can I invest if I live in another country?

You can invest in our fund if you live in another country. Depending on how you structure your investment, different

documents may be required. We have many international investors in our Hamptons Equity Funds. For our non-accredited vehicle, only U.S. Persons can invest, meaning a U.S. citizen or resident, U.S. partnership, corporation or entity, or U.S. estate or trust.

 

How long is the term of the vehicles?

The term of our vehicles are generally 10 years, but we have sole discretion to extend the life or even decrease the life after you have invested. The reason for this is we want to maximize the value of the real estate investments. We do not want to be forced to sell investments when the market is bad, nor do we want to pass up the opportunity to sell investments when the market is great. We are long-term investors and the more time we stay invested in a property, the better chance we have of capturing property appreciation from inflation and rising rents.

 

What happens if Tristan retires or passes away?

That is a great question! We should discuss the reality of that situation. If Tristan retires or passes away, the vehicles themselves and their property investments will continue to operate. Revenue will continue to be generated and distributed to investors. We have a great team at Hamptons Capital, and we have excellent third-party property managers that are very experienced operating our properties. Together the team will continue with business as usual maximizing the value of each property investment.

 

How often will I receive a distribution?

That depends on the vehicle you decide to invest in. For our accredited vehicle, we intend to pay distributions monthly but may change the frequency at our sole discretion during the term of the fund. For our non-accredited vehicle, we intend to pay distributions at least annually and our target is quarterly. Regardless of the vehicle, the change in distribution frequency can depend on many factors such as the property’s cash flow level or needed capital expenditures. Sometimes the cash flow of the property may not support a distribution.