The Terra Investment Fund

FAQs

FAQS

Frequently Asked Questions

Here are answers to some of the most common questions about investing with Terra Investments.

Cost segregation is an IRS-approved method that categorizes the depreciable life of all the assets/items at a property, rather than using the 27.5 year standard depreciable life for everything.

Bonus Depreciation is the process that allows a business to immediately take a large paper loss against their depreciable assets (categorized during the cost segregation study), potentially generating losses that can offset income from other sources.

Bonus Depreciation can allow an investor in the Terra Investments portfolio to potentially get a paper depreciation loss of 70-100% of their initial investment amount in the first year of ownership that can offset income from other sources.

A value-add investment involves purchasing properties that have the potential for increased income and appreciation through renovations and better management.

Terra Investments targets an average 19.9% IRR and 194% total 5-year gains for our investors. However, past performance does not guarantee future results.

We encourage investors to consult with their tax advisors. Many investors benefit from cost segregation studies and bonus depreciation, which can provide significant tax advantages in the first year of ownership.

Investors receive monthly performance reports and quarterly distributions, along with annual tax documents (K-1s) for tax preparation.

The securities are subject to restrictions on transfer and resale, so investors should plan to hold their investments for the projected 3-5 year investment horizon.

The minimum investment amount with Terra Investments is $25,000. This allows investors of various levels to participate in our real estate opportunities.

Terra Investments partners with professional property management teams that focus on operational efficiency, cost-effective maintenance, and optimizing rental rates to ensure strong cash flow and property value growth.

 

Terra Investments secures competitive financing, with terms like 5.28% fixed interest rate and 30-year amortization. These favorable loan terms allow us to maximize returns while maintaining low leverage.