Important Terms and Dates for IncomePlus Fund Investors
The Origin IncomePlus Fund is an open-end private real estate fund that provides accredited investors with consistent distributions, offers downside protection and minimizes the impact of taxes. The Fund targets a 8-10% total net annual return, with a target distribution of .5% paid monthly (6% total annually). This steady passive income stream is unlike our past closed-end funds, where investors typically did not receive a distribution until an asset had undergone its entire business plan, leaving investors eager for their first distribution.
The IncomePlus Fund allows you to enter the Fund at various points in time and immediately diversify your capital across a high-quality portfolio of real estate assets. Plus, the IncomePlus Fund’s buy, fix and hold strategy means that you can stay in for as long as you’d like instead of being forced to exit when we sell our assets.
Below are the terms and dates that will help you understand how investing in the IncomePlus Fund works:
Investment Date: The investment date is the date when your money is received for a capital call and marks your official “investment date.” After you complete the subscription process, you will either be placed in the funding queue or your money will be called right away. Once we determine that your capital is needed, a capital call will be issued, and you will have seven days to fund your commitment.
Trade Date: The trade date is the date when you officially become a member of the Fund from an accounting standpoint. This is the date you will begin to pay fees, accrue a preferred return and dividend, and is the first day of the month. For example, if you fund your investment on July 15th, you will be assigned a trade date of August 1st. Between the time of the investment date and the trade date, you will not pay any fees and won’t accrue a dividend. The IncomePlus Fund offers twelve trade dates throughout the year and each one corresponds to the first day of each month.
Unit Price: The IncomePlus Fund’s unit price is established based on the fair market value of the underlying assets and is updated monthly. Your unit price will be determined based on the month that precedes your investment date. Expanding on the above example, if your capital is called on July 15th, you will acquire units at the price established on June 30th which will be finalized around the third week of July. You will know the price of your units and the number of units no later than the trade date.
Record Date: The record date is the last day of the month and establishes when you are eligible to receive a distribution. Investors who are official members as of the record date (“owners of record”) will receive a distribution on the payment date which is 30 days after the record date. Again, you become an official member when your subscription agreement is signed, and your capital has been funded. Simply committing to the Fund does not make you an official member and you will not be assigned a trade date, investment date, record date or unit price.
Payment Date: The payment date is when you will receive your distribution payment. The distribution is typically made 30 days after the record date.
Distribution Dates: Distributions are paid twelve times per year to IncomePlus Fund members who are owners of record. It’s important to note that you must be invested for the entire month to receive a distribution. For example, if you fund your capital call on July 15th you will be assigned a trade date of August 1st. Although you funded your commitment in July, your trade date of August 1st and record date of August 31st means you will not receive a distribution until the end of September. As such, you will have a payment date of September 30th.
Distribution Reinvestment Plan (DRIP): You can receive your distribution in cash, and we will send it straight to your bank account or you can take advantage of compounding returns through our distribution reinvestment plan. The DRIP allows you to use the distribution proceeds to automatically acquire new units each month. You can opt in and out of the DRIP at any time.
DRIP Unit Price: The unit price is the determined valuation in the month prior to the applicable record date. If you opt in for the DRIP, you can expect to have your distributions reinvested on a monthly basis at the share price established in the month preceding the record date. For example, a record date of August 31st means you will receive the corresponding payment on September 30th, at the unit price established at the end of July.