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Frequently Asked Questions

  • 1. How do I invest in Fund IV?
    Please navigate to our Investor Portal and request a login. Once issued, you are able to fill in your personal/investing information and then select “Invest” using the green button on the top, right corner. From there, a member of our team will reach out to finalize your investment onboarding. If you have questions about this process or need assistance, please email and a member of our team would be happy to help.
  • 2. What is the duration of Fund IV?
    An investment in Fund IV is considered long-term and illiquid. The initial term is projected to be up to ten (10) years and additional extension options are available.
  • 3. When are distributions for Fund IV made?
    Distributions are paid on a quarterly basis, based on cash flow available from each quarter. We typically distribute within 10 business days after the end of each quarter and offer ACH/Direct Deposit options for investors.
  • 4. When does my Preferred Return begin to accrue?
    Preferred Returns begin to accrue once an investors capital is moved from the Fund’s internal subscription account to operations and converted to Interests. Commitments are moved to the operating account on a first-in-first-out basis meaning, investors who make contributions to the Fund earlier, regardless of Investor Class, will begin accruing the Preferred Return sooner.
  • 5. What can I expect for a Preferred Return and Carried Interest?
    The rate of a Preferred Return and Carried Interest varies based on Investor Class, which are outlined below.
  • 6. What is Fund IV’s target return?
    Crystal View Capital Fund IV is targeting a 12-15% return for investors, inclusive of the Preferred Return which ranges from 7-9% depending on Investor Class.
  • 7. How much Capital will Fund IV raise? When will the Fund stop accepting Capital?
    The Fund is open for a $200 million dollar raise and will close for investing once it is fully subscribed.
  • 8. Does the sponsor co-invest?
    Over the Funds for Crystal View Capital, Matthew and his wife have invested over $12 million of their own capital alongside investors and on the same terms as investors. Additional team members have also invested in the Funds.
  • 9. How much Capital has the Firm previously raised and how much is the AUM?
    Across Crystal View Capital’s four Funds, over $200 million has been raised and deployed into assets. The Firm currently holds over $440 million in assets under management.
  • 10. Can I invest through my business or trust?
    Yes, as long as the entity or underlying beneficial owners are accredited investors they are able to make a contribution.
  • 11. Is the cash distribution treated as return of capital or return on capital?
    It varies based on the distributions. Preferred Return Distributions are a return on capital as well as other special distributions (any distributions above the preferred return which are subject to the applicable class split). When Return of Capital distributions occur, typically when an asset is sold (subject to the provisions within the Offering), but also via other special distributions, investors will be notified that it is returning capital and reducing their capital account balance.
  • 12. Do you perform cost-segregations on your assets?
    Yes, we do typically perform cost-segregations on the bulk of our assets.
  • 13. Do I need to be an accredited investor?
    Yes, we are a 506(C) offering which requires that we further verify that each investor in the Fund is accredited. Our team will reach out to verify once onboarding has started.
  • 14. What is the minimum to invest?
    The minimum investment is $100,000.
  • 15. What are the key assumptions in your Fund II and Fund III modeled net IRR assumptions outlined in the deck presented to 506 Group members?
    Question submitted 02/10/2023. For each Fund, the IRRs presented in the deck for the 506 Group are based on performance through 09/30/2022 and are based upon a theoretical liquidation as of the assumption date. The valuations driving that theoretical liquidation are based on NAV as of 09/30/2022. a. For example, what cap rates are you assuming on exit for the manufactured housing and self-storage assets in Fund II and Fund III? The underlying NAVs and corresponding cap rate assumptions for each asset in Fund II and Fund III vary depending on the asset. Fund II: The NAV the IRRs are based on is ~$100mm. The blended cap rate based on that value is ~7.1%. Fund III: The cost of the portfolio (excluding recently purchased assets) as of 09/30/2022 is ~$185mm. The blended cap rate at cost is ~7.7%. The NAV the IRRs are based on is ~$213mm which is a ~14.9% increase in value of the portfolio. The blended cap rate based on that value is ~6.7%. For reference, if we were to apply a 6.0% cap rate across the entire Fund III portfolio that IRR would be ~43%. b. If you assume the cap rate to be conservative, why do you believe that’s the case (i.e., what recent trades could you point to use a higher cap rate)? Our portfolio contains assets in various markets and of various quality which are important factors especially as it relates to self-storage and manufactured housing assets. See comment below as it relates to market trades and cap rate assumptions. These assets continue to be in high demand, and we are still seeing significant capital on the sidelines, preparing to be deployed specifically into these spaces, which gives us further confidence. c. What are the other key assumptions whether they be average annual rent growth, NOI growth, vacancy or otherwise in Fund II and Fund III? The IRRs presented do not have additional growth assumptions as described above, however when underwriting acquisitions, after year 1, we typically assume 5.0% or less in revenue growth, flat occupancy, and 2.0% expense growth. There are a few assets which may have been modeled slightly different, but overall, our goal is to assume as minimal growth as possible after year one and then utilize our team to find additional ways to influence the property to maximize the NOI over the hold and after initial stabilization. For reference, on Fund III, we generated over $1mm more NOI across all assets than initially underwritten for 2022. d. Why do you believe those assumptions to be conservative? We believe this all comes back to our initial underwriting on assets and projections for each year of ownership. We have a track record of surpassing our revenue and NOI assumptions. In addition, we typically see competitors underwriting to ~10% in revenue growth (sometimes including large year over year continual growth) which we believe may be aggressive in the current market.
  • 16. What is the minimum stabilized cap rate that you are willing to buy self-storage and manufactured housing assets, respectively in the market today?
    Question submitted 02/10/2023. This really depends on the upside available on an asset. To be transparent, we’d be willing to buy at 2.0% cap rate if there’s a clear path to get that 7.0%+ in year 1. Ultimately, we are looking at all fundamentals to check the boxes and consider the cap rate as one point in a holistic view on how to decide if a deal is advantageous.
  • 17. What recent trades could you point to use a lower the cap rate?
    Question submitted 02/10/2023. We continue to see deals trading at low cap rates but would like to point out that cap rates on marketed deals may not truly reflect the rate at which an asset trades. This is because marketed deals are based on broker projections of NOI which often do not include tax reassessments, have lower expense ratios (i.e., showing a 30% expense ratio whereas we underwrite to a 40-50%), and other items which are not included in the cap rate calculations.
  • 18. Do you have a mechanism to all capital deposits to earn interest and fully pass on the benefit to the LP?
    Question submitted 02/10/2023. Yes, this is correct. The structure is like that of Fund III where we could hold for up to two subsequent quarters or four subsequent quarters, depending on the Investor Class. We did, however, add the ability for us to place pre-funded, but undeployed funds into treasury bills on behalf of the investor. We anticipate the Subscriptions we’ve made so far will deliver a ~4.5% return to investors. We understand that investors would like their capital to work as quickly as possible and we strive to do that while remaining fiercely dedicated to our purchasing strategy. We do have a deal under contract which we expect will be the first Fund IV asset and should deploy ~70% of the equity raised to take.
  • 19. What is your history with NAV?
    Question submitted 02/15/2023. Fund III was launched in November of 2020 and our first asset was purchased on December 23, 2020. March 31, 2021 is when we Crystal View Capital saw the first true adjustment to NAV for the Fund.
  • 20. What are the expected numbers for K-1s?
    Question submitted 02/15/2023. It will ultimately depend on the number of states in which we purchase assets in, but on the high side I would anticipate 15-20 states. This could end up being substantially less, but since the assets have not yet been identified I like to provide a conservative number. We aim to provide composite return options whenever possible to reduce the need for investors to file individually. In addition, some states may not require individual filings and investors should always consult with their CPA.
  • 21. Will there be an expected lag in the first few quarters until the money is deployed depending on the investor class?
    Question submitted 02/15/2023. Capital is deployed on a first-in-first-out basis so ultimately the timing of this will depend on 1) when investors fund their contribution 2) deal flow. Our team is working diligently to underwrite deals and ensure we are bringing the right assets into the Fund given current market conditions. We currently have two deals under contract which, if they come to fruition, would be assets in Fund IV and deploy largely everything raised thus far in the Fund.
  • 22. How long will my commitment sit before being deployed?
    Question submitted 02/15/2023. We do have the flexibility to hold for up to two or four subsequent quarters depending on the investment class; this timeline it can remain in the subscription account is the same as Fund III. For informational purposes, our average timeline in Fund III for deployment in 2021 was 86 days and in 2022 was 55 days.
  • 23. If I sign this week, when the money is expected to be deployed (assuming class C)?
    Question submitted 02/15/2023. Please see question #22.
  • 24. Over what time period would you expect money to be called?
    Question submitted 02/15/2023. It is called at once and placed into the subscription account per the terms of the PPM. See note above regarding deployment.
  • 25. With a $1mm commitment or more, would the money likely be deployed faster because it’s qualified for class B instead of class C?
    Question submitted 02/15/2023. We do not deploy based on class; it is deployed on a first-in-first-out basis.
  • 26. If I commitment documents today, do I start accruing at 7%? And does the 506 members as a group accrue the 8% preferred return once the group has committed $1mm or more?
    Question submitted 02/15/2023. You would begin to accrue the preferred return once your capital is converted to Interests by being moved to the operating account. We will aggregate and update the rates of return based on when capital is converted. Once we’ve converted to $1mm or greater of the aggregated amounts each would begin to accrued the 8% preferred return. If the group hits the $10mm threshold (in interests) all investors that have been converted at that time would begin receiving the 9% preferred return as of the date that is achieved.
  • 27. Crystal View Capital indicated that they will purchase T-bills with a three-month lockout period, but why not invest in a short term (30 day) money market fund from Vanguard like VUSXX which offers a yield that is nearly identical (only less a10 bps management fee paid to Vanguard)?
    Question submitted 02/15/2023. At the time of our decision to do this the spread was a lot wider on T-bills than it is now. In addition, we’d be paying a management fee to Vanguard which would be a disservice to investors as they are not paying any fees currently (the Fund does not collect any management fee since the capital is undeployed and there’s no portion of the interest earned that compensates anyone except the investors).
  • 28. For a direct investment, who do I reach out to?
    Question submitted 02/15/2023. Please reach out to with an updated schedule listing of all investors who are coming in direct. This is a checks and balance process for aggregating the investments.
  • 29. Provide color or insight into the two under contract deals from Feb 2023 for self-storage, MHC, purchase price, cap rate, financing, business plan, and underwriting Y1 CoC and total returns.
    Question submitted 02/22/2023. The Fund IV facility sheet is still being discussed. The terms will be similar to Fund III and we are anticipating 60-65% LTV, SOFT +275, interest only. There are fees involved with setting up the facility if it is not being utilized so it is critical for us to time the setup appropriately. Here are some details that I can share: SS or MHC?: Both self-storage Purchase Price/Cap Rate: Combined purchase price ~$6.5mm; cap rates would be discussed on the deal webinar we intend to host Financing/Business Plan: Here is a very general summary which we would discuss further on the call: Asset 1 has rates which are at least 50% of current market, currently has no online marketing presence and is managed by paper. Asset two has rents at least 20% below market, there’s a portion of the land that could be sold or repurposed or a combination of both which we are evaluating, operational and managerial inefficiencies which we anticipating being able to fix rapidly after acquisition Underwritten Y1 CoC and Total Returns: Happy to provide this information once the deal is more finalized as we are still working through underwriting and this information is subject to change. We would certainly discuss this on the deal webinar. We intend to host a webinar to discuss the deals in Fund IV, once closed, and provide a Fund IV update/opportunity for Q&A for our current and potential investor base; this webinar can be shared with the group to register and ask questions. We expect this to be within the next 30 days, but will schedule once we get closer to closing on these deals.
  • 30. Is there a first closing scheduled soon? If first close, I would get in at cost (initial NAV)?
    Question submitted 02/23/2023. Investors ultimately come in at the NAV at the time their investment is converted to interests, as it was in Fund III as well so I would not anticipate that an investment today would come in at the initial NAV.
  • 31. Are they open to setting up a REIT blocker for this fund IV?
    Question submitted 02/27/2023. We have had discussions with our tax and legal team regarding this structure, but do not have any immediate plans for this. We will of course update if that changes.
  • 32. My only remaining prevailing concern is the queue now of commitments. Would appreciate hearing what the size of the current commitment queue is like now compared to the $6.5mm pending capital call.
    Question submitted 02/27/2023. I do not have much to provide in terms of commitment updates as we continue to work to deploy the capital contributed in Fund IV to date. We have over $7mm in commitments and are working through various stages of onboarding.
  • 33. Since RE valuations in the market have dropped 25-30% because of interest rates, shouldn’t held valuations also be marked down? I realize value add is a positive offset to that, but given that we are buying into $33mm of existing assets even before pipeline is considered, did you widen cap rates by 100-200bps while using a run rate of improved NOI?
    Question submitted 05/23/2024. This seems to ignore the increase in cash flow and NOI we are able to generate at the properties. The increase in cash flows has more than offset widening in cap rates in addition to our cap rates increasing to 7-8%+ quickly after acquisition.
  • 34. What’s the succession planning and ownership structure away from Matt? He’s clearly a key person in this operation what happens if he gets hit by the proverbial bus? Can the fund continue to grow or will it stop acquiring and just operate till runoff?
    Question submitted 05/23/2024. Yes, the fund can still grow and make acquisitions. The existing management team, which has substantial experience and expertise would continue operating the fund.
  • 35. Do you have a comprehensive DDQ you’re able to share?
    Question submitted 05/23/2024. This is a broad request. What are you looking for specifically? It’s possible we could send an NDA and share more information to those not already bound by the confidentiality in the fund documents.
  • 36. What is the estimated 2024 K1 write off as % of a new 2024 investor contribution? Do you have a sample redacted prior K1 to share?
    Question submitted 05/23/2024. This is highly variable depending on several factors including when investors commit their capital and what assets will be acquired in the balance of 2024. If investors fund now and under current tax law, a reasonable expectation would be a NOL of approximately 25-35%.
  • 37. Is there UBIT generated if invest via solo-401k? If so, what guidance can you provide on how much UBIT might be generated based on expectations or other more seasoned funds you manage?
    Question submitted 05/23/2024. Seeking input from our CPA and will be back.
  • 38. If invest now, how quickly is capital likely to be deployed? Range would be helpful. i.e. 1-2 weeks, <1mo, 1-2mo etc.
    Question submitted 05/23/2024. I would expect within 30 days and is driven by the pipeline. We have an active MHC acquisition we are working to close and all capital currently raised will be deployed at that closing.
  • 39. Can invest via IRA vs Self Directed 401k?
    Question submitted 05/23/2024. Yes, we accept a limited number of funds via IRA, 401k, tax-advantaged accounts, etc. Please reach out to a team member with your expected investment amount to confirm availability. As a note, we have been made aware that new tax law regarding these types of accounts may impact whether or not you want to use these vehicles to invest with. Please consult with your tax advisor to confirm this will be the best option for you.
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