General Questions
- What is fractional business investing?
- 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.
- What types of businesses can I invest in?
- We currently offer fractional ownership in recession-resistant businesses like car washes, laundromats, and self-storage facilities.
- How much do I need to start investing?
- You can start with as little as $100, making it accessible to everyday investors.
- How do I earn returns?
- Returns are generated through operational cash flows of the businesses and distributed periodically based on your investment share.
- Is this passive income?
- Yes. Our team handles the day-to-day operations, so you earn income without managing the business yourself.
- How are businesses selected?
- Each business undergoes rigorous financial, operational, and market due diligence before being made available to investors.
- Can I sell my shares?
- We plan to offer a secondary marketplace for liquidity. Until then, investors should view this as a medium to long-term investment.
- How often will I receive payouts?
- Payouts are typically distributed quarterly, depending on the business’s performance.
- Is my investment secured?
- 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.
- Can I invest from outside the U.S.?
- Currently, we only accept U.S.-based investors due to regulatory requirements.
- What are the fees?
- We charge a small asset management fee and may also take a performance fee based on business profitability. All fees are transparently disclosed.
- Are these businesses insured?
- Yes. All properties and operations are fully insured, including liability, property, and business interruption insurance.
- What happens if a business underperforms?
- We use conservative underwriting and risk controls, but underperformance can impact returns. Your capital is at risk, similar to other private investments.
- Can I visit the businesses I invest in?
- Yes. Transparency is important to us. You’ll have access to the addresses, financials, and operational insights of each business you invest in.
- Who operates the businesses?
- Each location is operated by experienced local operators or management companies vetted by our team.
- Is Preq.co a registered investment platform?
- 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.
- How do I get started?
- Just create an account, verify your identity, and explore available opportunities. Once ready, you can fund and invest directly through the platform.
Account & Profile
- How do I create an account?
- Click the Sign Up button, enter your details, and verify your email to create an account.
- Can I update my profile information?
- Yes, you can update your profile details from your account settings at any time.
- What if I forget my password?
- Use the 'Forgot Password' link on the login page to reset your password via email.
- How do I verify my identity?
- We use a secure identity verification process complying with regulations to verify your identity during account setup.
Investment Process
- How do I choose investments?
- Browse available businesses on our platform and review detailed info before investing.
- Can I invest in multiple businesses?
- Yes, diversify your portfolio by investing in as many businesses as you like.
- What is the minimum investment per business?
- Typically $100, but amounts can vary per opportunity.
- How is my investment ownership documented?
- Ownership is legally documented via shares or membership units in LLCs holding the assets.
- Can I invest more after my initial investment?
- Yes, you can add funds to your existing investments when new offerings open.
Taxes & Legal
- Will I receive tax documents?
- Yes, we provide necessary tax documents such as K-1s or 1099s based on your investments.
- Are investments tax deductible?
- Investments are not tax deductible, but you may benefit from depreciation and other tax treatments. Consult your tax advisor.
- Is my personal data protected?
- Yes, we follow strict data privacy and security standards to protect your information.
- What legal agreements do I sign?
- You will sign subscription agreements and disclosures outlining your rights and obligations.
Payouts & Returns
- How are returns calculated?
- Returns are based on net operating income of the business minus fees and expenses.
- When will I receive my payouts?
- Payouts are typically quarterly, but timing depends on each business's cash flow schedule.
- Can I reinvest my payouts?
- Yes, you can choose to reinvest dividends or withdraw them.
- What happens if a business goes bankrupt?
- In bankruptcy, your investment could be lost; always invest responsibly and diversify.
Platform Features
- Can I track my portfolio performance?
- Yes, you can monitor your investments, returns, and documents on your dashboard.
- Does the platform support mobile devices?
- Yes, our platform is fully responsive and mobile-friendly.
- Can I download my investment reports?
- You can download statements and tax documents directly from your account.
Security
- How secure is the platform?
- We use industry-standard encryption, two-factor authentication, and continuous monitoring.
- What if I suspect unauthorized access?
- Contact support immediately. We also recommend enabling two-factor authentication.
- Do you store my payment info?
- Payment info is stored securely with PCI-compliant processors, not directly on our servers.
Technical Support
- How do I contact support?
- Use the Help page chat, submit a ticket, or email support@preq.co for assistance.
- What browsers are supported?
- We support all modern browsers including Chrome, Firefox, Safari, and Edge.
- What if I find a bug?
- Report bugs via the Help page or support email. We prioritize quick fixes.