Funds are either transferred via Automated Clearing House (ACH) transfers or, if you are investing through an IRA, by wire transfer. Funds relating to investments in debt securities are deposited into an FDIC-insured (up to $250,000) bank account with Wells Fargo, N.A.; equity and preferred equity investments are deposited in a tri-party escrow account involving both our broker-dealer partner and a third party bank. Funds are kept in this account until the amount of funding ultimately agreed upon is reached and the underlying real estate project (usually involving a property acquisition) is ready to close; sometimes this can be several weeks or more following the fund raise. Funds are then released for the purpose of financing a loan or making an investment in a sponsor's company that owns or controls the subject property.
If the underlying project does not close or the raised funds are otherwise not accepted, 100% of your funds are returned directly to you. Because it often takes 2-3 weeks after the fund raise is completed before the underlying project investment closes, your funds are typically not debited from your bank account until the scheduled closing date nears.