Collab acquires student housing rental properties into LLCs and sells shares in those LLCs to the public. Through its decentralized property management system, Collab manages the day-to-day operations, including finding tenants and completing repairs. Investors receive monthly cash distribution from rental income and capture any property value appreciation.

Rental profits are distributed to shareholders on a monthly basis. Collab owns no less than 5% of each property, so its interests align with investors. Collab charges an all-in 2% asset management fee on the property’s value annually and earns 20% of the incremental value growth at the sale of each property. This incentivizes Collab to source the best deals with high growth potential in the market.

Collab portfolios consist of qualified offerings regulated by the Securities and Exchange Commission (SEC) to ensure investor safety. As a result, we must follow strict reporting requirements, including semi-annual financial audits, providing the same level of transparency as publicly traded companies. Additionally, being qualified with SEC Regulation A+ allows us to open investments to everyone, not just accredited investors. Investors can find the SEC filing for each Collab offering on the offering page.

At Collab, we work with well-established partners in the industry, including Artesian CPA as our financial auditor, Crowdcheck as our legal advisor, Dalmore Group as our Broker-Dealer, and North Capital as our Escrow manager. These partners are necessary steps required by the SEC to ensure no party can manipulate any information or the process. Investors’ transactions on the Collab platform are managed and monitored by these industry leaders collectively.

We use bank-level security measures to keep personal information safe, including AES bit symmetric key encryption and Transport Layer Security (TLS) technology.

Our community-oriented property management and investment management provide full transparency into the workings of your properties. Our vertically integrated system empowers investors with the same access to information that traditional real estate owners and operators have. Monthly financial statements are posted, and we undergo semi-annual audits per SEC regulation requirements. Investors can even socialize with renters at their properties or community professionals who help manage their properties, as everyone is part of the Collab community.

Collab’s selection process for student housing real estate investment deals is highly selective, with only the top 2% of projects being chosen. Here’s how we do it:

Projects are sourced through our extensive industry network and community members. Each project undergoes a basic screening process to meet our company standards. Projects that pass the initial screening go through an intense underwriting process, which includes (but is not limited to):

- On-site visits by Collab’s investment team.
- In-depth financial analysis.
- Market analysis (supply and demand, demographics, etc.)
- Renovation/redevelopment researchSale/refinance stress tests.
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If a project passes all these steps, Collab approves the deal and acquires it.

Collab chooses to invest in student housing because it tends to be “recession-proof” and has shown resilience through economic cycles, including the COVID-19 pandemic. During market downturns, people tend to invest in themselves by returning to school, resulting in increased demand for student housing. The National Multifamily Housing Council analyzed 43 years of college enrollment data in 2021 and found that college enrollment does not appear negatively affected by recessions. This aligns with the conventional wisdom that student housing tends to be a safe investment.

Student housing is a subset of the multifamily asset class, where employment prospects generally drive demand. A research report by Georgetown University shows that a Bachelor’s degree is worth $2.8 million on average over a lifetime, making demand for student housing insulated from macroeconomic or market-specific shocks.

Institutional investors such as Blackstone Real Estate have also recognized the potential of student housing as an investment. Kathleen McCarthy, Global co-head of Blackstone Real Estate, has stated that Blackstone is staying focused on asset classes where the wind is at their back, and student housing is one area of focus for the current economic environment. Nadeem Meghji, Blackstone’s head of real estate for the Americas, has also praised student housing as a compelling sector that has performed well through cycles and has been resilient. Jacob Werner, Co-Head of Americas Acquisitions for Blackstone Real Estate, has cited strong historical performance and future growth potential driven by increasing enrollment at top universities in the US as reasons for why student housing is a compelling sector.

Vertical integration is essential to Collab’s investment and management platform. It allows us to offer real-time reporting about the assets within your portfolio, providing unprecedented transparency into your investments.

Moreover, vertical integration helps our tenants receive the best possible service and maintenance experience, with property managers having a steady stream of tasks and maintenance at locations near them that they can pick up at their leisure. This ensures that tenants’ needs are met promptly and efficiently.

For investors, vertical integration provides transparency into their investments, allowing them to monitor their portfolios in real-time and make informed decisions based on the latest data. The integration of our investment and management platform ensures that all aspects of the investment process are aligned, resulting in a seamless and efficient experience for all parties involved.

Collab’s decentralized property management system is built on proprietary technology our experienced asset managers developed. This ecosystem vertically integrates all aspects of real estate, enabling tenants, property managers, and investors to collaborate seamlessly within our system.

Our decentralized approach allows anyone to occupy, help manage, and invest in any property on our platform. This fosters a vested interest for all parties to respect, improve, and collaborate on our members’ living spaces, places of work, and investments.

Through our decentralized property management system, tenants receive top-notch service and maintenance, while property managers/Community Pros have a steady stream of tasks and maintenance at locations near them that they can pick up at their leisure. This ensures tenants’ needs are met promptly and efficiently, resulting in a better living experience for everyone involved.

We offer several ways to contact our customer service team, including online chat, Discord, and email at support@collabhome.io

Our team is available to assist you with any questions or concerns you may have, and we strive to provide prompt and helpful support to all of our users.

Once your subscription agreement is submitted and the trade is paid, we cannot cancel or refund your transaction. This policy is in accordance with the terms outlined in the Offering Circular. It is the investor’s responsibility to conduct thorough due diligence and fully understand the risks associated with the investment before making a decision.

Please ensure you are comfortable with your investment choice, as it becomes final upon submission and payment.

Collab is open to any U.S. citizen (or permanent resident) or non-permanent residents holding valid SSNs currently residing in the U.S. over 18. We are SEC Reg A+ and RegCF regulated, meaning accredited and non-accredited investors can invest with us.

Investing with Collab  can generate returns in 2 ways:

Annualized Distribution. It is the cash return rate for the past twelve months. For newer listed properties, with data less than twelve months, year-to-date data is used. All offerings have some historical operational data.

Annualized appreciation returns. Returns from any changes in property value. Any appreciation returns net of disposition costs will be paid out upon the sale of the property. Based on national averages for multi-family apartments priced within the 35th to 65th percentile, according to Co-Star. Multi-family apartments have appreciated 4.3% per year on average for the last 20 years. This is a national average and may not represent actual performance of this property’s zip code. In addition to property appreciation, equity returns depend on real estate investment costs, hold periods, and leverage. For more information, refer to the Offering Circular.

When you invest $500 in a property through Collab’s fractional real estate investing, you’ll earn returns in two parts: monthly passive rental income and real estate appreciation. The returns will be distributed in proportion to your investment amount.

For example, let’s take the property at 1742 Spruce. This property currently distributes a monthly cash flow, which is annualized at potentially 5%. A $500 investment would give you approximately 5% cash return or $25 in one year, or ~$2.1 monthly.

In addition to the monthly distribution, the properties are projected to have equity appreciation due to our improvement in property management and potential renovations. The 1742 Spruce is projected to have ~15% Internal Rate of Return (including distribution) when the property is ready for sale in 5-7 years, with an average annual appreciation projected to be ~10%. If the sale happens at the end of year 5, your $500 initial investment should return $500 * 1.1^5 = $805. Including the $25*5 = $125 distribution you receive across 5 years, the $500 initial investment is projected to be $805+$125 = $930 at the end of year 5.

Each property has slightly different distribution and equity appreciation potential, so we suggest you read the property details and pick based on your own preference. We recommend spreading your investment across multiple properties to diversify your portfolio and minimize concentration risk.

Browse Properties: Investors browse the available properties open to new investors.
Buy Shares: Investors determine how much money they want to invest in each property (above $20).
Sign & Invest: Investors review the terms, sign an online contract, and fund the investment by linking their bank account or credit card.
Earn Income: Investors sit back, collect their share of net rental income and participate in the property value appreciation.

At Collab, cash distributions are paid out monthly on a pro-rata basis. These distributions are automatically deposited into the bank account on file, so you don’t need to worry about manually requesting or tracking your payments.

At Collab, we typically target 5-7 year hold periods for each investment. However, we maintain the right to exit investments outside of this time frame if we determine that doing so would be in the collective best interest of our investors.

We are also developing a buyback program for early redemptions, which will be available in the next year. However, we cannot guarantee liquidity or pricing. Before investing, it’s important to note that you may be required to hold your investments for the duration of Collab’s projected hold period.

While we aim to provide flexibility and liquidity to our investors, it’s important to remember that real estate investments are inherently illiquid and may require a longer-term commitment. Our customer service team can always assist you if you have any questions or concerns about your investment commitment.

At this time, Collab does not offer options to buy back shares before property sales. However, we are actively exploring options to facilitate early redemptions and provide greater flexibility to our investors. We will share more details on this as they become available.

We understand that circumstances can change, and investors may need to sell their shares earlier than anticipated. While we cannot guarantee liquidity or pricing, we are committed to providing our investors with the best possible investment experience. If you have any questions or concerns about selling your shares, please don’t hesitate to reach out to our customer service team for assistance.

Our investments can take up to five business days to settle (typically a week or 7 calendar days), you start earning your monthly dividend from the time you placed your investment.

You can track the status of your investment on the transactions tab of your dashboard.

If there are any issues, a member of our Investor Relations team will be in touch.

Collab’s fee structure is designed to be transparent and straightforward, so you always know what you’re paying for. Here’s a breakdown of our fees:

Buying Shares: There is no fee if you pay by wiring funds instead of using a credit card.

Management Fees: Collab charges an all-in 2% asset management fee annually on the property’s value. Please refer to our Offering Circular filed with the SEC for a complete list of the fees we are entitled to charge.

Disposition Fees: Collab charges a market rate of 1-5% of the selling price as a disposition fee, depending on the size of the transaction.

At Collab, properties are owned by a series of companies registered with the SEC. Each written series LLC owns one property. When you invest in a property, you purchase shares in the company that owns the property, which makes you a shareholder of the registered series LLC.

For example, Series A, a YSMD Series LLC, owns 1742 Spruce in Berkeley, CA. When you buy shares in 1742 Spruce, you purchase shares in Series A, a YSMD Series LLC. As a shareholder of Series A, a YSMD Series LLC, you are a fractional owner of all company assets, including 1742 Spruce Street in Berkeley, CA. This means you are a fractional owner of 1742 Spruce in Berkeley, CA.

Yes. One of the unique aspects of Collab is increased access to our community, be it residents, investors, or our Community Pros. In addition, our decentralized approach allows investors, tenants, and others to earn money by completing tasks, supporting operations, providing stable investment, and more, which helps offset costs on all ends and cultivates a tight-knit community.

At Collab, we understand that property ownership comes with various costs, including real estate taxes, property insurance, repairs and maintenance, and other expenses incurred in renting properties. As an investor, you are not responsible for these costs directly. Instead, the cost of property ownership is part of the registered series LLC’s operating expenses.

As a passive real estate owner, you get all the benefits of ownership without the hassle of developing a business plan for a property and managing it daily. As the series LLC manager, Collab will oversee everything for our investors, including property management and maintenance.

As an investor with Collab, you can expect to receive regular reports to keep you informed about your investment. Here’s what you can expect:

Monthly Property Overview and Financial Summary: This report includes a current property overview, including occupancy rates and financials.

Semi-Annual and Annual Financial Statements: These statements will be filed with the SEC semi-annually and annually and can be located on the SEC’s website under each series filing. They provide a comprehensive overview of the property’s financial performance.

Tax Reporting: We will provide annual K-1 statements for US taxpayers to assist with tax reporting.

At this moment, our offerings are only open to individual investors.

At Collab, the minimum investment amount varies depending on the property. For Spruce, the minimum investment amount is $500. For Hilgard, the minimum is $100, and for Buttonwood, it’s $20. Please note that the minimum investment amount may vary for future investment properties.

If you purchase additional shares in the same property in the future, each transaction must meet the minimum investment amount for that property. This means that if you want to purchase more shares in Spruce, each transaction must meet the $500 minimum investment amount for Spruce.

The SEC, or the US Securities and Exchange Commission, was created in 1934 by the Securities Exchange Act. The SEC has a three-part mission: to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.

The SEC was created in response to the Great Depression, which caused a loss of confidence in the US markets. Congress passed the Securities Act of 1933, also known as the “Truth in Securities” law to address this. This law requires that investors receive financial and other significant information concerning securities being offered for public sale and prohibits deceit, misrepresentations, and other fraud in the sale of securities.

Internal Rate of Return (IRR) is a performance measure commonly used in real estate investing. It calculates the return earned by an investor over a defined period based on cash flows. IRR accounts for the concept of the “time value of money,” which is calculated as the discount rate that makes the present value of all cash flows from an investment equal zero.

IRR is a useful metric for comparing different assets based on yield while holding other variables constant. It differs from other metrics in providing a comprehensive picture of an investment’s profitability over time. At Collab, we use IRR to help our investors evaluate the performance of their investments and make informed decisions about future investments.

Equity multiples are a performance metric used in real estate investing to measure the total return paid to an investor. The equity multiple is found by dividing the cumulative distributions from a project by the paid-in capital.

The equity multiple differs from the IRR in that it does not consider the investment period’s length or the time value of money. It provides a snapshot of an investment’s profitability based on the total return paid to an investor.

At Collab, we use equity multiples to help our investors evaluate the performance of their investments and make informed decisions about future investments. The equity multiple formula is cumulative distributed returns divided by paid-in capital.

Cap rate, short for capitalization rate, is commonly used in real estate investing. It is a ratio that compares a property’s net operating income to its current value or sale price. The cap rate helps to determine the potential return on investment.

In other words, the cap rate is the rate at which the net operating income recapitalizes the asset value annually. It is useful for assessing real estate investment opportunities and drawing conclusions across asset classes.

At Collab, we use cap rates to help our investors evaluate the potential return on their investments and make informed decisions about future investments. The cap rate formula is: net operating income divided by property value or sale price.

Cash-on-Cash Return, or cash yield, is a widely used metric for measuring commercial real estate investment performance. It provides insight into the business plan for a property and the likelihood of receiving regular cash distributions throughout an investment.

The cash-on-cash return rate is calculated by dividing the annual pre-tax cash flow by the total cash invested. This metric compares the amount of cash received to the amount invested, providing a clear picture of an investment’s profitability.

A common feature of a real estate equity waterfall(the method by which capital is distributed to partners) is the preferred return or “pref”, which is a minimum annual return that the limited partners (you) are entitled to before the general partners (us) may begin receiving carried interest.

A common resource within real estate pro forma, Sources & Uses are shown in a table intended to serve as a roadmap surrounding where the project’s funding comes from (the “Sources of Funds”) and how that funding is to be spent (the “Uses of Funds”).