PREP Frequently Asked Questions

What is the minimum investment amount?

Many of our current Colombian projects require a minimum investment of USD $25,000, while newer and larger projects such as those in Puerto Rico and the Green Coffee Company require a minimum investment of USD $50,000.

How do I reserve shares in an investment?

You should send a 5% reservation deposit via the Lifeafar PayPal account: [email protected] This option incurs no cost to the investor and is refundable either upon request or upon the receipt of your full investment or 25% investment deposit, whichever is sooner, subject to applicable offering documents. You can also reserve your shares via wire transfer to the project bank account, although wire fees may apply.

Can I use my deposit as part of the investment?

If your deposit was sent through PayPal it cannot be used as part of your funding requirement since it cannot be registered as foreign investment.

If your deposit was sent to the Project Account then yes it can be.

When will I receive my deposit back?

You will receive your deposit back once we have received the full amount of your investment or 25% investment deposit, whichever is sooner, subject to applicable offering documents. It will be refunded to the account from which it was sent.

Do I need to set up a brokerage or bank account to fund my investment?

No. We have structured our projects so that investments can be made via a simple wire transfer.

Is there a cost associated with placing my investment?

No. While some firms may charge you an “onboarding” or “service” fee, there is no cost to invest with Lifeafar.

Where is my investment going to be registered, and how will my ownership be structured?

When investing in a Colombian project, your investment will be officially registered in Panama. You will own an equity share in a Panamanian S.A. (holding company) incorporated for the express purpose of owning the Colombian real estate asset. You will receive a corresponding shareholder certificate proving your ownership in this company.

When investing in a Puerto Rican project, your investment will be officially registered Puerto Rico. You will own an equity share in a Puerto Rican LLC incorporated for the express purpose of owning the Puerto Rican real estate asset. You will receive a corresponding shareholder certificate proving your ownership in this company.

Why is the ownership of Colombian projects structured in Panama?

At Lifeafar we work to create a frictionless investment experience. Currently, the friction associated with moving money in and out of Colombia as an individual is high. In addition to the fees investors must pay in order to transfer, register, and convert capital, investors must also open a Colombian brokerage account, which can take a minimum of several weeks. When aggregated across multiple projects and hundreds of investors, this system is prohibitive to doing business. Our solution is to incorporate in Panama where we pool investor capital and leverage our industry relationships to move capital between the two countries as necessary. In doing so, we save you both time and money. In addition, by structuring in Panama, as it concerns U.S. investors, there is additional ease in investing as investments can be made directly in USD.

What are the next steps after I reserve my shares via 5% deposit?

After you reserve your shares, you will receive the Investor & Operating Agreements via email. You will need to review the agreements and then decide whether or not you’d like to participate in the investment. You will have ten business days to review the documents and determine whether to participate before your deposit will become non-refundable. If you’d like to participate, simply sign the documents electronically. After the documents are signed, we’ll send you the project bank account information so that you can initiate the wire transfer and complete your investment.

What happens after my capital lands in the project account?

After we’ve received your capital commitment we’ll send you a transaction receipt for your records. We’ll then collect some additional documentation from you as part of our KYC (Know Your Client) requirements.

When will I receive my share certificate?

You will receive your share certificate once the project is fully subscribed in order that your exact proportionate interests can be determined prior to issuance.

Is the final value of my investment denominated in USD?

When investing in a Puerto Rican project: Yes.

When investing in a Colombian project, the final value of your investment will be denominated in the Colombian peso (COP), as you own a Colombian asset. Funds will be received in USD in Panama and will be brought into Colombia and converted into COP according to the market exchange rate.

How are dividends calculated and paid?

Your share of the project dividends will be calculated by multiplying quarterly profits by your % share of the project. So if you own 10%, we’ll multiply the quarterly profits by 0.10 and then distribute the resulting dividends to you via wire transfer or PayPal.

When will I begin receiving dividends?

We will begin distributing dividends on common equity in our projects (see below regarding Keystone preferred dividends) as soon as the real estate asset is operational and cash-flowing. Dividends will be paid exactly one month from the end of the quarter (for example, Q4 dividends are paid on January 31st).

What is Keystone Equity?

Keystone Equity is preferred equity at a range of dividend rates, depending on the applicable project, issued to investors who contribute a higher minimum investment amount and, depending on the project, invest between 25%-100% of their capital commitment upfront. Keystone Equity shares earn interest during the development period, where common shares do not.

Why did Lifeafar create Keystone Equity?

Real estate investments are capital intensive, and almost all projects source the necessary capital via a mix of equity funding from investors and debt from lenders. In the nascent stages of a project, an investment firm typically secures debt from a lender in order to move the project along and shorten the development period for future equity investors.

However, debt in Colombia has long been prohibitively expensive (10%+ interest rates), leaving these conventional real estate finance strategies untenable. Furthermore, the notion of waiting up to two years before receiving returns is unattractive to many investors. Keystone Equity solves both these problems. Investors are offered the opportunity to earn interest on their equity during the development period of the project in which they invest, and the project gets off the ground faster.

What is the Equity Accelerator program?

Keystone investors can elect to reinvest their Keystone payments as additional equity in lieu of receiving cash payments, boosting their returns over the life of the project.

How will I be informed on the progress of the project?

Our Investor Relations team provides quarterly updates to all investors during the development and operational phases.

In which currency will I receive my returns?

Investors will receive their returns in USD.

How will I ensure that the returns generated by Lifeafar investments are properly reported for tax purposes?

Every year we send each investor a tax summary document, which allows them to accurately report their earnings to the relevant tax authority.

Are there transaction fees for dividend payments?

If you receive dividends via wire transfer the only fees associated will be those imposed by your bank and/or any third-party transfer service.

Do investors receive any perks or privileges?

Investors receive a generous discount when staying at any Lifeafar property:

  • 10% discount if booked more than 15 days in advance
  • 25% discount if booked 8 – 14 days in advance
  • 50% discount if booked less than 7 days in advance

Can I invest using my Self-Directed IRA or Self-Directed 401k?

Yes, investors commonly use self-directed retirement accounts to invest with Lifeafar.

If you have any additional questions that are not covered in these FAQs, please contact our Investments Team at [email protected].