Worcester Investments & Worcester Fund
WHAT TYPES OF REAL ESTATE DOES WORCESTER INVEST IN?
Worcester is primarily focused on the multi-family real estate within a 500 mile radius of the Kansas City metro area.
WHO IS WORCESTER INVESTMENTS?
The Worcester brothers and their father founded Worcester Investments, a family owned and operated real estate investment company located in Kansas City, Missouri.
In partnership with their investors, Worcester Investments has $500 MM assets under management, including 2,800+ apartment units in the Midwest area. Worcester Investments employs a team of 100+, and was named Kansas City’s sixth fastest growing company by the Kansas City Business Journal in 2015.
WHAT IS WORCESTER’S INVESTMENT STRATEGY?
Worcester Investments’ strategy is to create value utilizing two primary approaches. First, Worcester will acquire underperforming multi-family communities and improve the financial performance of each property by leveraging the in-house property management and construction teams. Secondly, the firm will develop and manage new communities in strategic Midwest area markets where there is opportunity for compelling investment returns.
HOW DOES WORCESTER ADD VALUE?
Worcester adds value by combining a unique combination of focusing on primarily multi-family real estate in the Midwest area. Focusing on these two elements enables a higher level of understanding and better decision making which leads to ultimately better financial returns for partners who invest with us.
Because we focus on the Midwest area multi-family market, we know how to identify value and avoid over paying for properties. We believe making prudent acquisitions is a key driver to investment returns. We review hundreds of opportunities in the Midwest every year and actively pursue less than 2% of those.
After a property is acquired, we add value by leveraging our in-house property management and construction teams to Improve operating performance by lowering costs, increasing occupancy, and increasing revenues.
WHO CAN INVEST IN THE WORCESTER FUND?
Investors interested in investing in the Worcester Fund must satisfy the Accredited Investor rules set forth by the Securities Exchange Commission of the United States Government.
CAN I INVEST USING MY IRA ACCOUNT?
WHO IS THE FUND ADMINISTRATOR FOR THE FUND?
The administrator of The Worcester Fund is Verivest, an affiliate of Fairway America. Verivest is the only third-party administration firm anywhere that focuses exclusively on non-institutional sized, real estate asset based funds, syndications, and managers.
WILL I RECEIVE A K-1 IF I INVEST IN THE WORCESTER FUND?
Yes. K-1 tax returns are completed by The Worcester Fund accountant team.
HOW OFTEN WILL I RECEIVE STATEMENTS ON MY INVESTMENT?
You will receive quarterly statements in addition to having 24/7 online access to your account.
IF I AM NOT A US CITIZEN, CAN I INVEST IN THE WORCESTER FUND?
The Fund is available to non-U.S. citizens. Non-U.S. citizen investors should first seek tax advice from a Financial Advisor prior to investment to ensure all preliminary requirements are met.
ARE YOU AN ACCREDITED INVESTOR?
An Accredited investor, in the context of a natural person, includes anyone who:
- Earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR
- Has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).
- On the income test, the person must satisfy the thresholds for the three years consistently either alone or with a spouse, and cannot, for example, satisfy one year based on individual income and the next two years based on joint income with a spouse. The only exception is if a person is married within this period, in which case the person may satisfy the threshold on the basis of joint income for the years during which the person was married and on the basis of individual income for the other years.
- In addition, entities such as banks, partnerships, corporations, non-profits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:
- Any trust, with total assets in excess of $5 million, not formed to specifically purchase the subject securities, whose purchase is directed by a sophisticated person, or
- Any entity in which all of the equity owners are accredited investors.
- In this context, a sophisticated person means the person must have, or the company or private fund offering the securities reasonably believes that this person has sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.