We are sharing some of our most frequently asked questions below. If you have any questions feel free to reach out to us on our Contact Page.

An intimate group of owners controls private companies like Blue Oak Capital. The owners can offer ownership interests (i.e., stock, LLC interests, partnership interests) in the company to private investors. Still, those interests, unlike public stocks, are not available to the general public. Unlike public stocks, private companies are not listed on a stock market, and investors are subject to specific qualification requirements.

There are several key differences between investing in a private company and a public company.  Here are some of those key differences:

  • Access. Almost anyone can invest in public stock and often for as little as pennies, depending on the price of a share of stock.  Private companies, however, typically have entries in the $50k-$75k range as minimum investments.  Investors in private companies also must meet specific qualification requirements as described more fully below.  
  • Liquidity. Public stocks are highly liquid – able to be bought and sold at the click or swipe of a screen.  Private investments are illiquid with long lockup periods of typically a minimum of 3-5 years.
  • Volatility. Unlike public stocks that are highly correlated to the volatile broader markets sensitive to herd behavior, news, social media, economic reports, etc., private investments are insulated from Wall Street volatility due to their illiquidity. 
  • Gains. While gains from public stocks are exclusively dependent on the appreciation of stock prices, investors in private companies receive increases principally from cash distributions from profits generated by the company in addition to appreciation.  Tax Benefits         Long-term capital gains treatment on assets held more than a year.
  • Tax Benefits. The partnership structure of most private investments affords significant tax benefits that public stocks don’t offer, including:
  • Capital gains treatment
  • Pass-thru of deductions and depreciation
  • Tax deferral in some circumstances
  • Avoidance of self-employment taxes

Headed by experienced and knowledgeable management, Blue Oak Capital offers qualified investors the opportunity to invest in recession-resistant and inflation-insulated commercial real estate assets with minimal downside risk through mitigating measures, including seasoned management and a disciplined, proven investing model. Blue Oak Capital will initially focus on its local markets in Texas.

Our mission is to change private equity real estate by focusing on lowering risk, providing periodic distributions, and building recession-resilient portfolios.  We allow investors to leverage our experience, infrastructure, and processes to invest in an asset-backed investment class resistant to Wall Street volatility through our offering.

Based on SEC rule 506(c) restrictions, only Accredited Investors can invest with Blue Oak Capital.

To qualify as an “Accredited Investor,” you must meet the following requirements.

  1. Individuals who have earned $200,000 or more in gross income each year for the past two years and expect to continue doing so.
  2. When combined with a spouse’s income, individuals whose gross income totals $300,000 or more each year for the past two years.
  3. Individuals who maintain a net worth of $1 million or more, excluding the value of or her primary residence.
  4. An entity with at least $5 million in assets or a business in which all equity owners are Accredited, Investors.
  5. Any of the remaining persons identified under the definition of Accredited Investor under Rule 501 of Reg. D not listed here.

Quickly gaining a reputation as the land of the free – from both an individual as well as a business standpoint – Texas is experiencing massive growth from businesses flocking to the state because of its favorable tax and regulatory environment and from individuals seeking lower taxes, high quality of life and reasonable cost of living.  Business growth and population growth can only lead to demand for residential and CRE assets.

Partnering with lean private companies with boots on the ground in local markets offers distinct advantages over more prominent institutional investors and out-of-state prospectors, including connections, familiarity, alerts to local tax breaks and economic incentives, and access to reliable contractors and service providers.

In exchange for investment capital, investors receive preferred equity interests in the company paying an annual Preferred Return based on a fixed percentage of an investor’s capital investment.  Preferred Returns are paid before any other profit distributions to any other investment class.  In addition to the Preferred Return, investors also receive a percentage of any remaining cash flow from operations and a portion of net cash flow from a sale of any assets.

Investors can expect distributions on a quarterly, semi-annual, or annual basis, depending on the terms of the offering.

The qualification, account registration, and investment process are completed online on our Investor Portal.  You will have access to our offering documents that will include a Private Placement Memorandum detailing the terms of your investment.  You will be prompted to provide or verify any required information and make the necessary acknowledgments electronically. One of our representatives will reach out to you after registering with an intro call.

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

Yes. You can invest through a Self-Directed IRA by locating an SDIRA custodian if you do not have one currently. Many banks and brokerage firms will not allow investment assets like ours in their IRAs.

As with any investment, an investment with Blue Oak Capital involves a certain degree of risk. In deciding whether to invest, you should carefully consider the risk factors that could have a material adverse effect on the value of the equity interest you purchase and could cause you to lose all or part of your initial purchase price or adversely affect future distributions you expect to receive. Refer to the lists of risks in any offering materials you provide before investing.

Our equity interests are considered risky and speculative and are suitable for purchase only by investors of adequate financial means. If you cannot afford to lose all the money you plan to invest with Blue Oak Capital, you should not invest.

Yes. You can anticipate a minimum investment of $50,000, which may change at management’s discretion.

Blue Oak Capital will provide periodic updates to all investors. Updates will be delivered via email or your Blue Oak Capital Investor Portal. In addition, you will receive 1099 tax documents every year for the interest earned from your equity interests.

The equity interests are generally not transferable absent the approval of Blue Oak Capital and subject to strict SEC rules and regulations regarding resale. Even with permission, there can be no assurance that you will be able to sell your equity interests legally. We desire to give investors the highest amount of liquidity available, but investors should be prepared to hold their equity interests for the life of the Company.