Everything you need to know about how fractional investing with Preq.co works.
Fractional business investing allows individuals to invest in a portion of a business rather than owning it entirely. This enables investors to share profits and reduce risk.
We currently offer fractional ownership in recession-resistant businesses like car washes, laundromats, and self-storage facilities.
You can start with as little as $100, making it accessible to everyday investors.
Returns are generated through operational cash flows of the businesses and distributed periodically based on your investment share.
Yes. Our team handles the day-to-day operations, so you earn income without managing the business yourself.
Each business undergoes rigorous financial, operational, and market due diligence before being made available to investors.
We plan to offer a secondary marketplace for liquidity. Until then, investors should view this as a medium to long-term investment.
Payouts are typically distributed quarterly, depending on the business’s performance.
Investments are made into LLCs that own the underlying assets, providing a layer of legal protection. However, as with any investment, there are risks involved.
Currently, we only accept U.S.-based investors due to regulatory requirements.
We charge a small asset management fee and may also take a performance fee based on business profitability. All fees are transparently disclosed.
Yes. All properties and operations are fully insured, including liability, property, and business interruption insurance.
We use conservative underwriting and risk controls, but underperformance can impact returns. Your capital is at risk, similar to other private investments.
Yes. Transparency is important to us. You’ll have access to the addresses, financials, and operational insights of each business you invest in.
Each location is operated by experienced local operators or management companies vetted by our team.
Preq.co operates under U.S. securities laws and offers investments through properly structured entities. We work with legal and compliance professionals to ensure full regulatory compliance.
Just create an account, verify your identity, and explore available opportunities. Once ready, you can fund and invest directly through the platform.
A mobile app is currently in development. Until then, the platform is fully responsive and optimized for mobile browsers.
We vet operators through background checks, experience reviews, and historical performance metrics to ensure alignment with investor interests.
Most investments have a holding period of 3-7 years, depending on the business model and growth strategy.
Yes. Once you receive distributions, you can choose to reinvest them in new offerings on the platform.
Yes. You will receive a Schedule K-1 annually from the LLC to use for your tax filings.
We use bank-grade encryption and follow best security practices to protect your personal and financial information.
You can reset your password using the ‘Forgot Password’ link on the login page. We’ll send you an email to guide the process.
Some investments may include a minimum lock-in period to ensure stability. Details will be available in each investment’s terms.
No. Our platform is open to non-accredited investors as well, under Regulation Crowdfunding and Regulation A+ exemptions.
No minimum income is required, but total investment amounts may be limited based on your financial profile, per SEC guidelines.
You can usually complete an investment in less than 10 minutes after your account is verified.
Yes. During onboarding, you can specify your investment entity, such as an LLC, trust, or self-directed IRA.
Businesses are valued using standard industry valuation methods like EBITDA multiples and asset-backed assessments.
Yes. Your dashboard provides real-time insights into returns, distributions, and business performance metrics.
Yes, we offer a referral program where you can earn rewards for inviting new investors to the platform.
We list new investment opportunities every 1-2 months, depending on deal flow and market readiness.
Auto-invest options will be available soon. You'll be able to set preferences based on sector, location, and risk profile.
You can reach our support team via chat, email, or phone Monday–Friday, 9am–6pm ET.
Target returns vary by deal but generally range between 8–15% annually. Past performance is not a guarantee of future results.
Investors typically receive economic rights, not operational control. Major decisions may include investor input depending on the LLC structure.
Yes. We work with third-party accounting firms to conduct regular audits of business financials.
Once committed and processed, investments cannot be canceled. Please review all materials before confirming.
Each opportunity includes an offering circular, business plan, operating agreement, and risk disclosures.
Distributions are made directly to your linked bank account, typically via ACH transfer.
An SPV (Special Purpose Vehicle) is a legal entity created solely to hold the investment, simplifying ownership and management.
Upon a successful sale or refinance, proceeds are distributed proportionally to investors based on ownership.
Yes. We follow all SEC regulations and use legal frameworks like Reg CF, Reg A+, and Reg D offerings.
You will report income from K-1s on your tax return. We recommend consulting a CPA for guidance.
Currently, each profile must be tied to a unique email. We’re exploring multi-profile support.
There are no penalties, but liquidity is limited unless a secondary market is available or a liquidity event occurs.
We aim to make private asset investing mainstream by simplifying access, enhancing transparency, and expanding asset classes over time.
Yes. Identity verification (KYC) is required to comply with U.S. financial regulations.
Yes. You can export your investment history, tax documents, and earnings in CSV or PDF formats.
Your investments are held in separate legal entities (LLCs), so they remain legally and financially independent of our company operations.
