Originally I wanted to help my dad. That went well, so I opened it up to the rest of my family and my wife's family. At a certain point it made sense for the investment club to form a C Corp and make the investment clubs accessible to everyone. We believe people shouldn't have to work all their lives and depend on Social Security. We believe banks shouldn't set the status quo on investments to 1%, or annuities at 3-4%.
We are one of the only companies that historically pays no less than 15%. According to the SEC private placements are not considered securities. People who are normally non-accredited investors become accredited if they are Director's of the corporation. All shareholders are Director's of BIC Real Estate Development Corporation. BIC also has about 50% more in reserves than all of the non-managing shareholders combined and 12M in insurance for breach of contract.
Honesty, integrity, negotiating costs, understanding real estate cycles, and being a real estate appraiser helps us know building costs and future values prior to making investment decisions. Although not required by law, we require all investor's who are not using retirement funds to sign a club member agreement. This gives you many benefits, and details the relationship between club, corp and investor. Please see attachments.