Real Estate Investing Questions & Answers

No, Hezekiah has never lost money on an investment.

ROI is independent of time frames and measures the total return on investment for a project. Annualized return, on the other hand, calculates ROI over a 12-month period. Annual return is valuable for comparing investments as it provides insight into their performance over a standardized one-year period.

After making your investment(s), you will receive instructions for completing an online wire transfer or ACH. You must complete the transfer within 5 business days to activate your investment. For wire transfers, there is a unique reference code highlighted in red; it is crucial to include this code when sending your funds.

Please be aware that if you have a daily wire transfer limit, you can conduct multiple transfers on different days until you reach your total investment amount. Ensure that you use the same reference code in all transfers in such cases.

Your investment begins on the day you make the initial placement. For instance, if you placed an investment on January 26th but completed the wire transfer five days later, the investment's start date remains January 26th. However, the status will not switch to "Active" until we receive the investment funds via wire transfer or ACH. Investors will receive a confirmation email once the funds are received and the investment is active.

Hezekiah ensures that funding never delays a project. They provide upfront funds to allow deals to proceed on schedule. Investments remain open on the website, enabling additional investors to join as the project advances. As new investors participate, their funds replace Hezekiah's initial investment. Therefore, investment returns are prorated according to the time each investor joins the deal.

Each project's "Deal Level Financials" includes:

• A starting date (when escrow on the property opens),

• An ending date (the estimated completion and sale date of the project),

• A total projected timeframe (the estimated duration from start to finish).

The "ROI Calculator" for each project displays:

- The remaining estimated timeframe (how much time is left until the project's completion).

Your ROI is prorated based on the period during which you are invested in the deal. For instance, if a project has a total timeframe of 18 months according to the "Deal Level Financials" and there are 16 months remaining in the "ROI Calculator" when you invest, your profit share will reflect the 16 months you were an investor.

Hezekiah's proprietary software automatically tracks and calculates the estimated ROI based on the current day you view the investment. It's important to note that while the actual ROI varies based on your investment period, the annualized return remains consistent for all investors in a project.

To compute your ROI (Return on Investment) for a property, follow these steps:

1. Subtract the total investment amount from the net profit generated by the property.

2. Divide the resulting net profit by the total investment amount.

3. Multiply the quotient by 100 to express your ROI as a percentage.

This formula helps determine the profitability of your investment relative to the initial amount invested.

On the Hezekiah platform, investors are unable to designate "beneficiaries" for legal reasons. In the event of unforeseen circumstances, such as incapacity or death, your share in the property would transfer to the individual specified in your legally binding document, such as a will or trust.

However, you can designate an emergency contact within the platform. This option becomes accessible in your profile after you have made an investment. Hezekiah will contact this designated emergency contact to facilitate disbursements from your account if necessary.

You have to receive the proceeds from your previous investment before you can reinvest them into a new project. We cannot automatically transfer funds from one project to another on your behalf. Once a project is completed, the funds will be disbursed back to your bank account automatically. After receiving these funds, you can decide to reinvest them in a new property if you choose to do so.

The real estate opportunities listed on our platform are not eligible for use in 1031 exchange transactions.

We maintain two distinct insurance policies for our construction and new development projects:

1. Premises liability insurance: This policy covers injuries sustained by individuals on the property.

2. Builder's risk insurance: This policy protects the property itself during the construction phase against damages or destruction caused by events such as fire, vandalism, or other unforeseen occurrences. In the event of damage, the insurance covers the full "Replacement cost" of the property.

If a project were to unexpectedly fall out of purchase escrow, Hezekiah would provide investors in the deal with the option to either participate in a similar project or receive a refund of their funds.

Our construction timeframes are meticulously planned based on project schedules, which include factors like material availability, supplies, and workforce availability. Despite our careful planning, unforeseen delays can occasionally extend the construction period.

In such situations, Hezekiah collaborates closely with the construction team to mitigate delays and strive to complete the project as closely as possible to the originally estimated completion date.

If the property still sells for the projected amount upon completion, investors' ROI (Return on Investment) remains unaffected by construction delays. However, the annualized return may be impacted. This is why Hezekiah tracks both annualized returns and straight ROI, providing investors with comprehensive insights into project performance.

If a project requires additional funds to complete development, Hezekiah will extend a 0% interest loan to the ownership LLC. This loan is intended to support the completion of the project and will be repaid once the property is sold.

Hezekiah conducts thorough market analyses to predict sale dates and prices for completed properties. However, due to fluctuating market conditions, properties may take longer to sell or sell for more or less than initially anticipated.

If a property takes longer than expected to sell, Hezekiah continues to market the property and updates investors on its progress. Assuming the property ultimately sells for the projected amount, investors' total ROI remains unaffected.

In the event of significant market changes that make selling the property impractical, Hezekiah will seek qualified renters for the property. This generates passive rental income for investors and offers tax benefits through depreciation deductions on rental properties. This approach continues until market conditions stabilize and the property can be sold successfully.

It's important to note that Hezekiah has always successfully sold properties as planned. Nevertheless, we are prepared to take necessary actions to ensure the success of every deal, adapting to any shifts in the market landscape.

If a property sells for more than initially expected, the additional profits are distributed among the investors participating in the project. Conversely, if a property sells for less than anticipated, the ROI for investors is adjusted accordingly to reflect the lower sales price. This ensures that investors' returns accurately reflect the actual outcome of the property sale.

Hezekiah strategically acquires and develops properties in high-demand areas, minimizing the likelihood of extended vacancies. In the event a tenant gives notice to vacate, we typically secure a new tenant within 30 days of the unit becoming vacant. During this period, investors may receive a partial disbursement from rental income until the unit is fully occupied again.

Our "Coming Soon" investments provide an early preview of upcoming deals that will soon be available for investment. You can review property descriptions and estimated financials for these projects before they are officially open for investment. Notifications will be sent to alert you when these opportunities become available for investment.

Open investments are currently accepting funding. You can access detailed property information, financial breakdowns, and comprehensive descriptions outlining our plans for each property. To participate and secure an ownership stake in the project, simply wire your investment today.

An ADU (Accessory Dwelling Unit) is an additional housing unit constructed on existing single-family properties. ADUs can either be standalone structures adjacent to the main house or integrated into the property, such as by converting an unfinished basement, attic, or garage loft into an apartment.

To optimize property value and enhance investor returns, Hezekiah frequently constructs new ADUs adjacent to the primary structure for our House Flipping projects.

In most instances, we rely on the bank's appraisal to establish property values. When the bank does not conduct the appraisal, we engage certified appraisers who are members of the Appraisers Association of America (AAA). AAA-certified members possess a minimum of 10 years of experience as licensed real estate appraisers. Their extensive experience, education, and expertise distinguish them, ensuring accurate valuation of our developments, renovations, and rental properties.