Individual Investor Resources

FAQs

How do I invest on the platform?

The YouLand investor platform makes it easy for individuals to invest in a portfolio of mortgages. Individuals who want to invest can sign up through our website to see investment opportunities immediately, and make their first investment within days.

Who is eligible to invest?

Currently, our retail investor platform is open to individuals who are accredited investors in the U.S. and foreign investors. US investors must meet certain minimum annual income or net worth thresholds. We utilize the third party accreditation service Accredify to verify that potential investors meet the required eligibility criteria.

Who provides the capital for the loans?

YouLand is a direct lender. We use our own capital to originate loans, and in the days following a loan closing, we sell either whole loans to institutional investors or issue Platform Notes to individual investors. Because the loans have already been funded, you start earning interest from the very first day that you invest.

Can I pick my investments? Or are they assigned?

You can browse all investment opportunities open to individual investors, select ones that interest you, and specify the investment amount you wish to commit. Or you can have our AI Invest feature do the work for you.

How do you screen investments and what information is available about them?

We perform a comprehensive assessment of many parts of the loan, including the borrower’s credit, the asset valuation, and additional considerations specific to the opportunity being assessed. This diligence helps us offer you high quality investments so you won’t have to worry about evaluating each detail of the loan. If you do want to learn more about the mortgages in your portfolio, you can see information about the borrower, property, and loan terms through the investor portal.

How long are loan durations?

Your capital will be deployed for the length of the loan term, 12 months or less. It may be shorter if there is a prepayment by the borrower. It may be potentially longer if the loan has any issues including delinquency or default towards the end of the term.

Are there minimum commitment amounts?

$50,000 is the minimum required capital to become an investor on YouLand’s platform. Individual Platform Notes can be accessed for as little as $5,000 each, allowing you to spread out your investment across a variety of notes.

How do you service the loans?

Each mortgage loan is serviced by YouLand. Our servicing team collects payments and administers the loans, which includes handling any loan modifications or loss mitigation options, or arranging foreclosure proceedings.

How do I get paid back?

After payments are collected and applicable servicing fees are deducted, the remaining principal and interest is sent to you as a pro-rata share of your participation in the Platform Note. Those funds are seamlessly returned to your dedicated on-platform account, where the funds can either be withdrawn or reinvested to keep earning returns.

Can I see how my investments are performing?

Yes, you have 24/7 access to your investor dashboard, which shows you the in-depth status of each investment made and the performance of the underlying mortgage. You will know when payments have been made, if payments have been missed, the status of the loan, current unpaid balance, a complete history of proceeds received, and much more. You can also view summarized statistics for your portfolio, which are also sent as monthly statements.

What happens if a loan goes into default?

We will inform you if any significant actions are taken on loans related to your investments. We handle the process to provide a turnkey investment experience and ensure you’ll never have to worry about recovering the principal and interest of the loan.

What are the tax implications of investing?

Investments in our Platform Notes will result in interest income to investors. The interest provisions of each Platform Note vary according to the specific terms of the corresponding mortgage loan. Please consult with your tax advisor to determine the tax implications of any proposed investments.

What are the expected returns?

Expected returns on YouLand vary by loan product and may change over time as the underlying credit profiles, macroeconomic factors, and underwriting processes evolve. For each investment opportunity, we provide the gross underlying interest rate that, if the loan is paid on a normal schedule, is the rate of interest income that will be earned.

If I invest now, am I committed to any future investments?

No, there are no commitments or requirements to make additional investments.

Do you recommend specific investments?

YouLand sources high quality loans and strives to present investors with relevant information on investment opportunities, laid out in a clear and concise manner, to provide you with the ability to make the most informed decision. However, we do not provide recommendations related to the suitability of any particular investments.

Have regulators reviewed the Platform Notes?

The Platform Notes are being offered in reliance on an exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), and are not required to comply with specific disclosure requirements that apply to registration under the Securities Act. Neither the Securities and Exchange Commission, nor any state regulator, has passed upon the merits of or given its approval to the securities, the terms of the offering, or the accuracy or completeness of any offering materials.

What security is acquired upon investment?

Investors will acquire a borrower payment dependent promissory note (a “Platform Note”) from YouLand Inc. The Platform Note is an unsecured, limited recourse obligation of YouLand Inc that corresponds with an underlying mortgage loan originated on the YouLand Platform. Payments under the Platform Note are made when, as, and if, payments are collected by YouLand under the underlying mortgage loan, net of transaction costs.

Are the Platform Notes secured?

No, Platform Notes are not secured. While their corresponding mortgage is secured, Platform Notes themselves are not secured.

What is youland.us?

youland.us is an online marketplace for real estate investing. We are connecting Chinese investors who want to invest in US real estate with as little as $10,000 and real estate companies that need real estate capital – either debt or equity.

Who is YouLand?

YouLand is a team of professionals, with expertise in real estate, technology and finance. We are headquartered in San Francisco, CA, and have regional offices in Beijing, Columbus, OH, Denver, CO, Houston, TX, and New York, NY.

How does it work?

Through the youland.us platform, both individual and institutional investors have the opportunity to invest in real estate opportunities online through a private, secure website. Investors can browse investments, review due diligence materials and sign legal documents securely online. Once invested, investors have access to an investor dashboard, giving them 24/7 access to watch how their money is working for them.

Borrowers and sponsors looking for debt or equity capital can do so by filling out an online application, creating an account and going through our due diligence process.

We simplify real estate investing through cutting edge technology.

What types of investments does YouLand offer?

YouLand offers individual and institutional investors access to investment opportunities involving a variety of real estate property types, including multi-family residential, office, industrial, self-storage, retail, medical office and hospitality facilities. Single-family residences being used for investment purposes (not owner-occupied) are also the subject of many investment opportunities.

YouLand also offers different types of investment vehicles. Investors can purchase securities related to secured real estate loans (both first- or second-lien positions); equity investments in commercial properties, usually involving in-place cash flow that provide an income component to the investment; and "preferred equity" investments involving a preferential position in the equity capital structure but limited potential upside.

Who invests through YouLand?

YouLand’s investors include high net worth individual investors and institutional investors including family offices, registered investment advisors, private equity firms, hedge funds, banks, asset managers, and non-accredited individual investors.

Who is eligible to invest through youland.us?

Both US based accredited and non-accredited investors are eligible to invest in the offering on youland.us.

The accredited Investors can invest in private placements on the YouLand platform. To qualify as an accredited investor, you must meet certain thresholds as defined by the Securities and Exchange Commission under rule 501 of Regulation D. Specifically, you must meet one of the following criteria:

  • Earn an annual income per individual of over $200,000 per year ($300,000 per couple) with the expectation of maintaining such level of income in the future.
  • Have a net worth of more than $1 million (individually or jointly), excluding the value of a primary residence.
  • Be a bank, insurance company, registered investment advisor, business development company, or small business investment company
  • Be a general partner, executive officer, director or a related combination thereof for the issuer of a security being offered.
  • Be a business in which all the equity owners are accredited investors.
  • Be an employee benefit plan, a trust, charitable organization, partnership, or company with total assets in excess of $5 million.

In addition, overseas foreign investors are eligible to invest in the offering.

Why should I use YouLand to invest in real estate?

Commercial real estate investing often involves large investment amounts and limited regional opportunities. YouLand, on the other hand, allows accredited and institutional investors to invest for as little as $10,000, all from the convenience of an investor's laptop or tablet computer. This means that investors have the ability to participate in opportunities that historically may have been available only to large institutions. You'll also be investing "passively" -- similar to stocks and bonds -- so that you don't need to directly be concerned with the management headaches associated with a property.

YouLand does some initial review of potential investment opportunities and then, with the ones it moves forward with, presents the relevant investment information in an easy-to-use format so that investors can make their own decisions about which opportunities they want to pursue. These opportunities involve a variety of property types, are across a number of regional geographies, and can relate to debt, equity, or "preferred equity" opportunities. Once an investment has been made, investors are able to monitor the progress of an investment via an investor dashboard that contains earnings history, management updates, and other follow-on information to be reviewed.

What types of investments does YouLand offer?

On youland.us, you can invest in two primary investment types: loans (debt) or equity:

Real Estate Loans (debt): In this investment type, investors purchase a specific loan or a pool of loans. The underlying loan is tied to a residential or commercial property and the loan is secured by the property until the borrower repays the loan in full. Investors earn monthly interest on their money typically with a balloon payment at the end. Hold periods for the loans could be as short as a few months and as long as a few years.

Equity Investments: In this investment type, we focus on equity investments with existing cash-flow, like apartment buildings, office buildings, retail shopping centers, and self-storage facilities. With this type of investment, investors pool their money to purchase a piece of a specific property or a pool of properties. The investment is acquired and managed by a professional real estate investment company, also known as a “sponsor”, with a track record of acquiring and managing real estate. Investors are typically entitled to a share of the cash-flow from rents as well as a share of the proceeds when the property is eventually sold. The hold period for an investment like this may range from 1-5 years.

How is YouLand different than a Real Estate Investment Trust (REIT)?

YouLand allows you to choose and invest in a specific property or a group of pre-determined properties, whereas a REIT only allows investments into pools of capital that are often directed toward investments limited by asset class or geography.

REITs can sometimes charge relatively high fees, and there are some tax advantages to direct participation structures such as those utilized by YouLand. REITs are often so large that they have difficulty participating in opportunities involving "small balance" projects under $50 million, which projects represent many of the opportunities listed by YouLand. Finally, because most REITs are publicly traded, the shares in those REITs can be subject to the same volatility as may be experienced by the stock market generally. You should consult your tax or investment advisor for additional information.

How does an investment opportunity get listed on youland.us?

Real estate companies or individuals list their investment opportunities in the youland.us marketplace only after joining youland.us, submitting an application, and going through an underwriting and due diligence process.

For equity investments, the youland.us underwriting team to review their materials and determines whether the company and the investment is a good fit for our members. We go to great lengths to fully understand the variables of each transaction including return structure, market statistics, quality of the property and the track record, reputation and quality of the real estate investment company we are working with. This process also includes background, criminal, and credit checks to mitigate the risk of fraud. Finally, we always tour the property as a final step before it is listed. We reject many equity transactions that are proposed to us, keeping in mind one of our core values - Investor Protection.

At youland.us, we look for transactions that provide cash flow to investors as quickly as possible. Some properties may have some level of vacancy or have the ability for our operating partner to add value and increase cash flow over the life of the investment. We do not currently fund ground-up development, as we believe one of the benefits of real estate investing is passive income and development projects typically take 18-36 months to generate income.

For debt investments, youland.us provides loans for commercial properties including apartment buildings, self-storage facilities, mobile home parks, office and multi-tenant industrial buildings, and retail shopping centers. We examine many variables when evaluating debt investment opportunities. For loans on commercial properties, we evaluate metrics including debt service coverage ratios, loan-to-value ratios, and debt yields. Regardless of loan type, we look for borrowers with a successful track record and make sure they undergo background and credit checks so we can ensure financial competence and responsibility.

The liens associated with our debt are frequently “senior” or in “first position,” so in the event of a borrower default, our investors have first claim to the proceeds in the event of a foreclosure. Most of these loans are short-term, ranging from 6-36 months before principal is repaid. We may from time to time offer debt in the second position (mezzanine debt), which is subordinate to our more frequent offering of senior debt. Investors are always made aware of the debt position prior to making an investment decision.

When I invest on YouLand, what do I own?

For equity investments, YouLand sets up a separate limited liability company (LLC) for each investment opportunity, and that LLC will in turn hold an interest (sometimes indirectly) in the entity that actually owns the subject real estate. When you invest in an equity opportunity through YouLand, you own shares in that LLC. Using this structure, you should have the benefit of limited liability while also enjoying the benefits of using a "pass-through" entity for tax purposes.

For debt and certain "preferred equity" investments, investors will invest in debt obligations of YouLand subsidiaries -- "payment dependent notes" -- that are tied to the performance of real estate loans or investments made by that subsidiary. The notes are issued in tranches, or “series,” and each series of notes will be tied to the performance of a corresponding borrower loan or project investment. In some cases, a relationship with a third-party trustee has been established so that the counterparty risk to investors in these situations is limited.

How do investors earn returns?

The frequency of any investor returns depends on the type of investment. Typically, equity investments have distributions on a quarterly basis, while debt and preferred equity investments involve payouts on a monthly schedule. An investor's share of any distributions is generally transferred directly into the same bank account that was initially used by the investor for the contribution of the original investment amount, and typically occurs within a few days of YouLand’s receipt of such distributions.

On debt investments, the monthly payments of interest are dependent on YouLand having received the correlating payments from the borrower on the corresponding borrower loan. Preferred equity investments are designed to have "current" payments made on a monthly basis and then an "accrued" payout that is payable at the expiration of the investment period. Normal equity investments are usually designed to have investors get quarterly distributions and also to participate in any net appreciation realized when the property is sold. An investor's share of any of these distributions will be deposited directly into the bank account designated by such investor.

Payout schedules cannot be guaranteed, of course, nor can there be any guarantee as to return rates or the return of investor capital generally, regardless of the structure of any investment opportunity.

Are the investments secure?

Although no investment is guaranteed, one benefit of investing with youland.us is that you are investing in physical assets around the United States. Your investment is in an actual property as opposed to a stock or bond or other non-physical asset.

Are these investments risky?

Yes. Similar to investing in the stock market, there is no guarantee when you are investing in real estate. The real estate market has economic cycles and it is difficult to know how and when the economy will change.

Does youland.us do background or credit checks when new investors register with the site?

Yes. Our broker-dealer, North Capital, runs KYC (Know Your Customer) and anti-money laundering on all who invest in deals on our site. Additionally, on some offerings where advertising may have been used, some additional verification of an investor’s status as an accredited investor may be required.

Is there an investment minimum?

Yes. The minimum investment is different for each investment, but can be as low as $10,000.

Are there fees for investors?

Joining youland.us and browsing the marketplace requires no obligation. For those who choose to invest, there are fees associated with each investment. The fees depend on the type of investment (loan purchase or equity purchase) and the nature of the transaction. In addition to administrative and legal expenses, the fees will cover the ongoing reporting and communications for the investments. As we are big believers in transparency, you can find the specific fee structure for each deal when you browse through our investment opportunities.

How does the investment process work?

An investment is not final until all legal documents are signed and funding has been contributed and cleared. When an investor makes their investment, the money is held securely at a US bank. Once the fundraising target is met and the real estate transaction is completed, the money is transferred for the sole purpose of the specific loan or specific property that is being invested in.

How do investors transfer funds to youland.us?

Standard ACH transfer can be made from an investor’s bank account for amounts up to $100,000. Amounts larger than $100,000 are made using a wire transfer. For each investment opportunity there will be specific account numbers that we will provide to the investor so that funds are properly received on our end.

How are legal documents handled on youland.us?

All legal documents can be sent and signed electronically through our website. This allows for more efficient and seamless transfer of documents between you and youland.us, while maintaining the authenticity and security of your information. Investments are finalized once proper legal documentation is accepted, funds are confirmed received, and we provide you with completed counterpart signatures.

How will investors be updated about their investment status?

Investors will be able to view real time updates of their investments when they login to the site and view their investor dashboard. This is their hub of information, and will provide comprehensive metrics about their distributions to date, upcoming milestones, and overall return on investment. Additional emails are sent out when distributions are sent to your bank account.

Once invested, how do investors get regular updates about their investments?

youland.us will work with the real estate company to provide timely updates shared with all investors at least quarterly. Updates will be provided via email and via the investor dashboard. In addition, investors will receive tax documents every year that they have a distribution from a real estate investment on youland.us.

How will my investment cash flow allocations be distributed?

Investors who invest in debt typically receive interest payments on a monthly basis, while investors who invest in equity typically receive quarterly distributions.

Usually we will send the cash flow income to the same bank account that the investor provided for their original investment, though we can accommodate changing a distribution bank account by request. We ask for bank information that will allow for monthly or quarterly standard ACH transfers.

Distributions are never guaranteed in amount or timing and you should carefully read the offering documents on the specific deal you are interested in to fully understand how projected distributions look like and what risks are involved.

Is my investment liquid?

No. The real estate investments found on youland.us are private transactions in physical properties around the United States. The investments are not traded on public stock exchanges and cannot be easily sold or traded.

You may be able to resell your investment security in a private transaction subject to restrictions that are specific to each investment and under the Securities Act of 1933. Since the resale restrictions on youland.us can be very limiting, you should not invest with the expectation of reselling your investment.

When will I get my investment back?

Different properties have different expected hold periods. A hold period is the anticipated time investors will be involved with the investment until the underlying property is re-sold or the loan on it is paid off. It is important to read the offering documents for each investment opportunity for a deeper understanding of the hold period for each investment.

What types of properties are available through equity investments?

youland.us offers access to a variety of property types including, but not limited to, multi-family, office, industrial, self-storage, retail, medical office, and hospitality.

How are equity investments structured?

Investors are typically purchasing shares in a YouLand Limited Liability Company (“LLC”) that in turn invests into an LLC or Limited Partnership (“LP”) that holds title to the real property.

When I invest in equity investments on youland.us, what do I own?

When you invest in an equity opportunity, you are typically purchasing shares of an LLC as a limited member. In turn, that LLC owns (directly or indirectly), along with the sponsor and other investors, a share of a joint venture entity that owns a specific investment property, like a specific apartment building. An LLC gives you liability protection, shielding your personal assets from the investment.

Why do investors invest into a YouLand LLC instead of directly into the company that holds title to the real property?

By investing into a YouLand LLC, it minimizes overhead for the sponsors who work with youland.us and allows us to access more investment opportunities for investors. It also allows for streamlined reporting, distributions, and tax documentation through the youland.us platform.

Who makes decisions in an LLC?

Decisions in an LLC are governed by a document called an “operating agreement”. While every operating agreement is slightly different, they usually include a manager (who may also be a member) and limited members. The manager typically makes all of the day-to-day decisions and the limited members act as passive investors on the transaction. The manager can determine how much cash to distribute to the limited members versus how much to hold in reserve and assess possible sales for the property. There are certain activities that might mandate a vote by the limited members and the limited members can typically take action if the managing member defaults on the terms of the agreement or is grossly negligent.

Who makes decisions in the YouLand LLC that investors contribute to?

youland.us is typically the Managing Member of YouLand LLCs. YouLand Manager is an Exempt Reporting Advisor. YouLand Manager does not own a piece of the YouLand LLCs, but is responsible for certain limited decision making. However, you will need to review the specific offering materials for each investment to fully understand the structure and the duties of all entities involved.

How often should distributions be expected?

Distributions depend on the specific investment, but are typically provided to equity investors each quarter. Please review the expected distribution schedule for each investment before making an investment. No distributions are guaranteed.

What if I invested in equity and more money is needed for the property in the future? Am I obligated to invest more as an equity owner?

youland.us investments typically do not have capital calls. A capital call is where the investor is required to commit more money to the property, beyond the initial investment. Rather than requiring an additional investment, it is possible that investors will be diluted if more money needs to be raised. While this is typically the case with equity investments offered on youland.us, please check the offering materials for each investment to fully understand your liabilities as an investor.

What are the tax implications of investing in Equity opportunities with youland.us?

One of the benefits of investing in real estate equity through limited liability companies (LLCs) is that LLCs can be treated as partnerships for tax purposes. Partnerships generally are not taxed at the entity level (other than annual franchise taxes and filing fees) and can “pass through” applicable items of income, loss and depreciation to their members.

Non-cash depreciation deductions can shelter or eliminate the amount taxable income that may be otherwise passed through to an investor from a real estate equity investment, particularly in the early stages of the investment. As a result, cash distributions received by an investor, in a year when there is no corresponding pass-through of taxable income (again, due to depreciation deductions), may result in lower or deferred taxes.

The special purpose entity (a YouLand LLC) you own when you invest in an equity transaction reports your annual share of income and loss and distributions on federal and state K-1s that you can then use to prepare your tax return. While the special purpose entities (the YouLand LLCs) that are formed for each equity transaction typically are Delaware entities, there may be filing requirements and tax liabilities in other states depending on the details of a particular transaction, your state of residence, and the location of the investment property.

YouLand and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. See offering documents for additional details, disclosures, and disclaimers.

What types of loan/debt investments can investors make?

When investing in loans, investors will either acquire a borrower payment dependent promissory note (a “Platform Note”) from YouLand, Co. or purchase a whole loan.

When I invest in a Platform Note on youland.us, what do I own?

When you invest in a Platform Note, you are purchasing an unsecured note in YouLand, Co., the performance of which is tied to the underlying real estate loan. This Platform Note allows you to receive periodic payments on the loan if and when the borrower on the underlying real estate loan makes interest payments.

Who is eligible to buy whole loans?

Institutional investors looking to invest >$25 million are eligible to buy whole loans from youland.us. These whole loans differ from the Platform Notes in that they are secured by real estate.

When investing in whole loans, if a loan defaults, is there any obligation to invest more?

Yes, an investor will be responsible for the cost of any foreclosure in the event of a default when purchasing whole loans.

If a borrower stops paying, what happens?

If a borrower stops paying, we will determine what loan modification or loss mitigation options to pursue before beginning foreclosure proceedings. youland.us will inform all investors if any significant actions are taken on their specific loan investments.

How often should distributions be expected?

Distributions depend on the specific investment, but are typically provided to debt investors each month. Please review the expected distribution schedule for each investment before making an investment. No distributions are guaranteed.

What are the tax implications of investing in Debt opportunities with youland.us?

Tax information regarding first lien debt investments is reported annually to investors on Form 1099. For other types of debt (like mezzanine debt), distributions may be characterized as interest, dividends, or other distributions, and investors may receive either a Form 1099 or a Federal and state Form K-1, depending on the structure of the transaction.

YouLand, Co. and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. See offering documents for additional details, disclosures, and disclaimers.