FAQs
4CC accepts investment requests on a first-come-first-serve basis. If you are interested in participating, please reach out. As loan requests come in, we tap investment requests in the order they were received with existing investors taking priority.
4CC is only available to Accredited Investors. The most common way to be Accredited is based annual income. As an individual, if you’ve made $200K a year for the past 2 years and you’re on pace to make it this year you are accredited, $300K annually for couples.
Our subscriptions have a standard 1 year lock up period. But we work with investors, especially in emergency situations, to allow decent liquidity. Any request for funds to be returned enter into a queue and we can usually accommodate requests of $100K or less in under 30 days.
All capital return requests are added to a queue and processed on a first come first serve basis. We usually have 3-6 loan payoffs per month, which constitute a liquidation event. We attempt to fulfill requests under $500K in 30 days or less.
All income for 4CC is considered ordinary income. Even if you reinvest your distributions, they are not eligible for long term capital gains. You will receive a K-1 at year end.
Please consult your CPA to determine what this may mean for you.
We have a 12 month initial lock up period and then all capital return requests are handled first come first serve. A liquidity opportunity happens with every loan pay off. We have around 2 loans payoff each month.
Distributions are paid out quarterly via direct ACH into your bank account. You have the option to automatically reinvest your distributions to benefit from compounding interest. Over half of investors take advantage of this program today.
We charge a 2% annual management fee on all capital under management. We also receive 20% of total foreclosure net profit associated with the additional workload of that process. All ROI numbers presented above are net of this management fee.
We begin a 3 month process that results in the sale of the property. Due to our LTV requirements, we generally experience higher ROIs in these situations, but we try to avoid them.
Mass foreclosures, similar to what happened in 2008, that results in the majority of our loans defaulting. In the unlikely event of this happening, we would move into a holding pattern. In this scenario, we would hold all of our assets that we can not sell for a profit and distribute the net operating income to owners in accordance with their ownership percentages.