Questions & answers

Phoenix has emerged as a standout market for real estate investors, thanks to its consistent growth and strong fundamentals. Median home prices have steadily increased, reflecting a market with sustained demand and resilience. This growth is driven by a combination of economic expansion, job opportunities, and the city’s appeal as a desirable place to live.

One of Phoenix’s key strengths is its diverse and dynamic economy. The city is home to growing industries like technology, healthcare, and manufacturing, while also attracting startups and established businesses due to its innovation-friendly environment. Beyond economics, Phoenix offers a high quality of life with year-round sunshine, outdoor activities, and a lower cost of living compared to many other major cities.

What sets Phoenix apart is its unique supply-demand dynamic. Rapid population growth, coupled with geographic limitations, has created a housing market where demand far exceeds supply. This imbalance has positioned Phoenix as a leader in both rental growth and property appreciation, making it a prime location for long-term real estate investment.

Deal-by-deal investing allows you to select individual properties for investment, giving you direct control and flexibility over your portfolio. In contrast, fund investing involves putting your money into a portfolio of multiple properties managed by the fund, providing automatic diversification.

With deal-by-deal investing, you can handpick properties that align with your goals and risk tolerance. Fund investing, however, spreads your investment across multiple properties, reducing the impact of underperformance in any single asset and offering a more balanced return.

Both approaches have their advantages: deal-by-deal investing is ideal for those who want hands-on involvement, while fund investing suits investors seeking diversification and a more passive approach.

Deal-by-deal investing provides several advantages for investors looking to take a more hands-on approach

Control: You have the freedom to select specific projects that align with your goals and preferences, allowing you to build a portfolio tailored to your needs.

Transparency: Detailed information about each project—such as the address, property photos, financial estimates, projected returns, and the investment strategy—is readily available. This clarity helps you make informed decisions and understand what to expect from your investments.

Equity ownership: CoNest offers direct ownership shares in the underlying real estate, providing the stability and tangibility that many investors value.

Customized portfolio: Deal-by-deal investing allows you to adjust your risk and reward exposure by choosing projects that match your strategy. For example, long-term rentals focus on steady cash flow, while multi-family developments may offer higher returns with increased risk.

Equity fund investing offers several advantages for those seeking a more hands-off approach to real estate:

Uncapped Returns: Your returns are tied to the financial performance of the assets, meaning you have the potential to earn more than initially projected if the portfolio performs well.

Diversification: By spreading your investment across multiple properties, you reduce risk. If one property underperforms, others in the portfolio can help balance overall returns.

Professional Management: The fund is managed by real estate experts who handle property selection, acquisitions, and portfolio strategy. This allows you to benefit from their expertise and maximize returns without needing to make day-to-day decisions.

Convenience: Equity fund investing is ideal for busy investors. It requires fewer decisions, fewer wire transfers, and simplifies tax reporting compared to owning individual properties.

Our team of specialized experts manages every aspect of your real estate investment, ensuring a seamless experience from start to finish. Here’s what we take care of:

• Conducting market research and scouting locations
• Analyzing potential deals and securing properties
• Opening and managing LLCs
• Handling escrow and securing financing or refinancing (if necessary)
• Sourcing building materials and managing construction teams
• Renovating structures and stabilizing properties
• Overseeing ongoing property management for rentals
• Providing regular project updates to investors
• Delivering exceptional customer service
• Managing all financials, accounting, and Schedule K-1 filings
• Distributing proceeds to investors promptly

CoNest serves as the syndication sponsor and managing member for every deal, managing each project from start to finish. We begin by analyzing potential deals, conducting thorough due diligence, and selecting only those with the highest potential for our investors. Once a deal is chosen, we create the LLC for the property, secure deposits, handle title and escrow documents, negotiate favorable loan terms, and ensure the project stays on schedule and within budget.

On the investor side, we prepare detailed investment offerings, provide regular updates, offer customer support, and document the project with photos. We also manage all accounting tasks, including investor distributions, 1065 tax filings, and Schedule K-1s.

For construction, we collaborate with architects to finalize building plans, obtain city permits, hire and manage general contractors, and supervise construction teams. We also handle property inspections, manage construction draws, select materials and finishes, and approve the final build.

By overseeing every aspect of the process, CoNest ensures a seamless and profitable experience for our investors.

To invest with CoNest, you must be at least 18 years old and verified as an accredited investor.

• Earn $200,000 or more in gross income annually for the past two years, with the expectation of maintaining this level.
• Have a combined gross income with a spouse of $300,000 or more annually for the past two years, with the expectation of continuing this level.
• Maintain a net worth of $1 million or more, excluding the value of your primary residence.
• Be an entity with at least $5 million in assets or a business where all equity owners are accredited investors.
• Hold an active and valid registration as a General Securities Representative (Series 7), Private Securities Offerings Representative (Series 82), or Licensed Investment Adviser Representative (Series 65).

CoNest offers several investment options to suit your needs. You can invest as an individual, through an entity, a trust, a retirement account, or a fund. Each method provides flexibility and aligns with your financial goals.

Yes, CoNest welcomes fund companies to participate in our investment opportunities.

Yes, CoNest accepts the following retirement account types:

• IRA LLC (Single-member)
• IRA LLC (Multi-member)
• Self-Directed Solo 401(k)

Sign up Creating an account is simple. Provide a few basic details and confirm your email address. Once registered, you’ll gain access to our platform.

Get verified To invest with CoNest, you must be verified as an accredited investor in compliance with SEC regulations. Complete the verification process through our third party partner.

Invest Use the ROI calculator to estimate potential returns for each opportunity. Once you’re ready to invest, you can commit your funds directly online. Our system will guide you through the investment agreement and provide wiring instructions to finalize your contribution.

Wire the funds To secure your spot in the investment, transfer the funds via ACH to CoNest’s secure account within five business days of completing your online investment order. Once your funds are received, you’ll receive an email confirmation that your investment is active.

Track your investment Monitor your investment through your online dashboard. A progress meter displays the project’s current status and completion percentage.

CoNest has built strong relationships with local real estate agents and brokers. Our properties are sourced not only from active market listings but also from off-market opportunities, including foreclosures, probate courts, and auctions. This diverse approach allows us to identify high-potential investments that may not be widely available to the public.

CoNest is committed to delivering only the best opportunities to our investors. Each property undergoes an extensive review process by our team of real estate professionals and analysts, ensuring it meets strict criteria for profitability and potential.

We focus on properties with value-add opportunities, transformative potential, and ground-up development projects, carefully selected to maximize returns and align with investor goals.

To maximize investor profits, CoNest does not maintain an in-house construction team. Instead, we partner with experienced general contractors and skilled builders. This approach allows us to scale efficiently across multiple projects and avoid unnecessary payroll costs during downtime between construction phases.

Our in-house project and operations managers oversee every project, ensuring quality and efficiency. CoNest also handles property inspections, construction draws, material and finish selection, and final approvals, maintaining close involvement from start to finish.

We collaborate with trusted, well-established construction teams who have a proven track record of successful builds. This ensures consistent quality, streamlined communication, and efficient project execution.

CoNest accepts ACH and wire transfers.

Legal documents ensure that investor funds are handled with accountability and transparency.

All funds contributed by investors are held in a non-interest-bearing account, exclusively for their benefit. Each property is structured under a separate LLC, with its own dedicated bank account, ensuring clear separation and proper management of assets.

Each series generates monthly rental income. After covering all necessary expenses, including management, maintenance, and taxes, the remaining profits are distributed to investors based on their ownership share in the project.

ROI (Return on Investment) measures the total return a project generates, regardless of the time frame. It reflects the overall profitability of the investment.

Annualized return, on the other hand, calculates the ROI over a 12-month period. This metric is particularly useful for comparing investments, as it standardizes performance to a one-year timeframe, making it easier to evaluate and contrast different opportunities.

To calculate your ROI (Return on Investment), divide your net profit by the total amount you invested in the property. Then, multiply the result by 100 to express your ROI as a percentage.

In the rare event that a project fails to close escrow, CoNest will offer investors two options: transfer their funds to a similar project or receive a full refund of their investment.

No, investors cannot exit an investment before the project is completed. The capital you invest is used to fund the project until its conclusion. Once the project is finished, funds will be disbursed to investors.

Typically, we charge a project management fee for each series.

CoNest charges fees for managing the entire real estate investment process, with percentages varying by property type and LLC. These fees cover services such as location scouting, opening and managing the LLC, securing financing, handling escrow, obtaining permits, managing construction, overseeing design, stabilizing the property, and providing accounting and investor distribution services.

No, the investment opportunities listed on our platform are not designed to qualify for 1031 exchange transactions.

CoNest does not currently have a referral program or pay referral fees. However, we greatly appreciate when our investors share their experiences with friends and family. This support helps us grow as a company and expand the number of projects we can offer to our community.

The company operates as a series LLC, with each series representing a separate asset or group of assets. Investments in a series are limited to that series only and do not grant ownership in the company or other series. Investments are accepted on a first-come, first-served basis, subject to minimum investment amounts and the manager’s discretion.

When placing an investment, you’ll digitally sign the following:

• Confidential private placement memorandum
• Privacy Policy
• Subscription Booklet
• Series limited liability company agreement
• Series Designation

CoNest is registered with the SEC under Rule 506(c) and adheres to all applicable rules and regulations. We also file each property’s ownership LLC with the SEC to ensure full compliance.

No. Investors cannot be held liable for anything beyond their initial investment. Each property is held in a separate LLC, ensuring the investment is isolated from investors’ personal assets.

No. As with any investment, we cannot guarantee a profit. However, you can review our track record to see our history of consistent returns. Note: Past performance does not guarantee future results.

Each Series LLC, established by CoNest Investments LLC, is created for a specific asset or group of assets. Investments in a Series are limited to that Series only and do not grant ownership in CoNest Investments LLC or other Series. Investments are accepted on a first-come, first-served basis, subject to minimum investment amounts and the discretion of CoNest Management LLC, the Manager. Once a Series is filled, a new Series is opened for additional investors.

An accredited investor is an individual or business that meets the SEC’s (Securities and Exchange Commission) qualification requirements to invest in unregulated securities.

While anyone can invest in regulated securities like stocks, bonds, and mutual funds, the SEC restricts access to certain investments to protect average investors from risks beyond their means or understanding. By setting specific income or wealth requirements, the SEC allows accredited investors to access less-regulated investment opportunities.

SEC regulations mandate that investors be accredited to participate in certain investment types, including CoNest’s real estate syndication opportunities. The SEC oversees most publicly traded financial securities, providing essential protections for less experienced investors. However, sophisticated investors often seek access to innovative, less-regulated opportunities. To balance this, the SEC created the accredited investor standard, allowing financially savvy individuals to invest in these options. Being verified as an accredited investor signifies that you have the financial knowledge and resources to make informed investment decisions.

CoNest partners with a secure third-party service, to provide confidential verification. Once your CoNest account is created, you’ll be guided through the online application process.

Before starting, gather the necessary documentation based on your investment structure:

For Individuals and Retirement Accounts:

• Income Proof: Provide evidence of $200,000 or more in gross income annually for the past two years (e.g., W-2, Schedule K-1, or 1099). For joint income with a spouse, provide proof of $300,000 or more annually.
• Net Worth Proof: Submit documentation showing a net worth of $1,000,000 or more, excluding your primary residence. Acceptable documents include property deeds, bank statements, or vehicle titles with professional valuations.
• Third-Party Letter: A verification letter from a licensed CPA or attorney, dated within the last 90 days, confirming your accredited status.

For Entities and Trusts:

• Owner Verification: Each equity owner must provide proof of accredited status (using the same income or net worth documentation as above).
• Third-Party Letter: A verification letter from a licensed CPA or attorney, dated within the last 90 days, confirming the entity’s accredited status.
• Asset Proof: Documentation showing assets exceeding $5,000,000 (e.g., formal valuations from a professional).

For License Holders:

• Series 7 and Series 82: The reviewing attorney must confirm you are currently employed by a FINRA-member or SRO firm or left such a firm within the last two years without joining another FINRA-member firm.
• Series 65: You must be registered with a State and in good standing.
• Provide your name as it appears on your license, your individual CRD#, and (for Series 7 and 82 only) the name of the firm you are licensed through.

No, holding a Series 79 license does not automatically qualify you as an accredited investor. However, if you meet the SEC’s accredited investor criteria—such as income or net worth requirements—you can still invest with CoNest. Should the SEC expand its list of approved licenses in the future to include Series 79, holders in good standing may qualify as accredited investors at that time.

Currently, the SEC recognizes the following licenses for accredited investor status:

• Series 7: General Securities Representative.
• Series 82: Private Securities Offerings Representative.
• Series 65: Licensed Investment Adviser Representative.

No, to invest in any CoNest project, you’ll need to be verified as an accredited investor. This step helps ensure compliance with SEC regulations and supports a secure investment process for everyone involved.

Yes, individuals holding certain professional licenses, such as Series 7, Series 65, and Series 82, may qualify as accredited investors. The requirements for each license are as follows:

• Series 7 (General Securities Representative) and Series 82 (Private Securities Offerings Representative): The reviewing attorney must confirm that you are currently employed by a FINRA-member or SRO firm or left such a firm within the last two years without joining another FINRA-member firm.
• Series 65 (Licensed Investment Adviser Representative): You must be registered with a State and in good standing.

To verify your accredited investor status based on these credentials, you will need to provide:

• Your name as it appears on your license.
• Your individual CRD#.
• For Series 7 and Series 82 only, the name of the firm you are licensed through.

CoNest operates under SEC Rule 506(c) of the Securities and Exchange Commission. This regulation allows us to offer investment opportunities exclusively to accredited investors, ensuring compliance with federal securities laws and providing a secure framework for both investors and the company.

The SEC (Securities and Exchange Commission) aims to protect average investors from engaging in investments that may be beyond their financial means or understanding. Real estate syndication investments, such as those offered by CoNest, are subject to less stringent regulations compared to traditional securities like stocks and bonds. To mitigate risks, the SEC established Rule 506(c), which limits participation in these non-traditional investments to accredited investors only.

No, unfortunately not. All investors complete the verification process through our platform using a trusted third-party service. This ensures a consistent and legally compliant review conducted by licensed attorneys specializing in this area of law. The verification is valid for 90 days, and once you make your first investment, it becomes permanent. If your verification expires, you can easily reapply when ready.

Investors are responsible for covering the cost of their accredited investor verification. The verification process is conducted through an independent third-party service, which handles the application and review process. CoNest does not manage or influence the verification, and the application fee is paid directly by the investor to the service provider.

No, you are under no obligation to invest with CoNest after completing the accredited investor verification process. However, please note that your verification is only valid for up to 90 days. If you do not place an investment within this timeframe, your verification will expire, and you will need to reapply if you wish to invest at a later time.

Since the application fee for verification is paid by the investor, all future re-applications will also require payment. This ensures a consistent and legally compliant review process for every investor.

Your verification is valid for 90 days. Completing your first investment within this period ensures your status becomes permanent. If the timeframe expires, you are welcome to reapply when ready to invest.

If your verification expires after 90 days without an investment, you can simply reapply through our platform when you are ready to proceed.

No, there is no limit to the number of times you can apply. However, since the application fee is covered by the investor for each verification, we encourage applying only when you are ready to invest within the 90-day period.

Email: info@conest.investments

Phone: 928 237-1777

Address: 15657 N Hayden Rd #1021, Scottsdale, AZ 85260