Rich Uncles University v1.2 (09/17)

Welcome to Rich Uncles University

The Rich Uncles Story

Who Are the Rich Uncles?

Rich Uncles' Values

Our History

When Rich Uncles’ technology platform was created in 2012, its purpose was to make the profitability of commercial real estate investment available to everyone. Lower initial investment amounts, monthly share repurchasing, and a sophisticated web-based investment portal made this possible. And what followed: astonishing growth. Less than five years later, Rich Uncles, LLC now manages 33 income-producing commercial properties which comprise over $200 million in assets.

Our Values

We are committed to improving the financial lives of our customers and clients through the power of every connection. This commitment guides our collaborative effort to help our customers, clients, and shareholders realize their individual goals. To do this, we must:

A Message from the Uncles

Real Estate Investment Trusts

What is a REIT?

What is a REIT?

A REIT (Real Estate Investment Trust) is a company that enables individual investors to own a diversified portfolio of real estate assets. A REIT acquires properties, collects rents, and distributes at least 90% of its taxable income to shareholders in the form of dividend distributions.

Why a REIT?

Investors who want to 1) generate cash flow 2) have the potential for long-term capital appreciation and 3) diversify their investment portfolio, may find REITs to be attractive supplements to their existing investment strategies. We advise all investors to carefully review our offering documents, including the prospectus, prior to making an investment in our REIT.

How Does Rich Uncles REIT Differ?

Rich Uncles NNN REIT, Inc.

Rich Uncles was created to make real estate investment easier, more transparent, and less expensive for all investors. Rich Uncles developed its online platform to offer REIT investments that exclude payment of commissions to broker-dealers and investment advisors.

Rich Uncles NNN REIT, Inc. was deemed effective by the SEC in 2016. We expect to primarily invest in single-tenant, income-producing commercial real estate, leased on extended terms to creditworthy tenants.

Our goal is to generate relatively predictable cash distributions to investors, while providing the potential for long-term capital appreciation in the value of our acquired properties.

We sell shares directly to investors, not through broker-dealers and investment advisors who are paid commissions and fees (which can typically represent 10% of an investor's initial capital). Since we do not pay commissions and fees, we invest a significantly higher percentage of the proceeds generated from the sale of our shares into properties.

Portfolio Map

REIT Quiz

What is a REIT?

  • Stock Options
  • Real Estate Investment Trust
  • Qualified Account
  • Non-Qualified Account

What does NNN (Triple-Net) mean?

  • The property owner (Rich Uncles) pays all taxes, insurance, and maintenance expenses.
  • Single-tenant buildings with creditworthy tenants.
  • The property tenant pays all taxes, insurance, and maintenance expenses.
  • Commercial Real Estate.

Who are the Rich Uncles?

  • Rich Uncles' Board of Directors
  • Chairman of the Board of Irvine Company
  • The Investors
  • Ray, Harold, and Howard

Who do we typically sell shares to?

  • Brokers and Dealers
  • Acquisitions Team
  • Retirement Services
  • None of the above

Why is our REIT different?

  • We are comparatively less expensive than other REITs.
  • We are publicly traded.
  • We pay all taxes on our acquired property.
  • We are a national company.

What are the goals of Rich Uncles NNN REIT, Inc.?

  • To make everyone rich.
  • To distribute relatively predictable dividends to investors.
  • To take over the market.
  • To flip properties for profit.

What is our complete address?

  • 3090 S. Bristol St. Ste 550 Costa Mesa, CA 62626
  • 3080 S. Bristol St. Ste 550 Costa Mesa, CA 92626
  • 3080 S. Bristol St. Ste 550 Newport Beach, CA 92626
  • 3090 S. Bristol St. Ste 550 Newport Beach, CA 92626

Which of the following represent Rich Uncles' Core Values? (Choose all that apply)

  • Deliver Together
  • Act Responsibly
  • Sell REIT Shares
  • Trust the Team
  • Realize the Power of People

Securities and Exchange Commission

Alternative Investments

Alternative Investment Asset Class

Alternative investments include venture capital, private equity, hedge funds, real estate investment trusts and commodities, as well as real assets such as precious metals, rare coins, wine, and art. These assets usually perform with low correlation to stocks and bonds, may be difficult to value, and are generally more illiquid than traditional investments. 

With some exceptions, only accredited investors are able to invest directly in alternative assets. This restriction exists because many fund managers rely on private placement registration exemptions that limit their investor base to well-educated investors. These investments are growing in popularity, as institutional investors (including pension and endowment funds) realize the long-term benefits of alternative assets, and steadily allocate more of their capital to them. 

Rich Uncles NNN REIT, Inc. Prospectus

What is a Prospectus?

A prospectus is a legal document that discusses the investment program for which money is solicited. 

A prospectus typically includes sections that describe how the solicited money is to be invested, the investment’s business plan, risks associated with the investment, the background and track record of the sponsors, and the legal rights and responsibilities of the investors. 

Before investing, each of our clients is instructed to carefully review the prospectus for a complete understanding of our offering.


Click here find the Rich Uncles NNN REIT, Inc. Prospectus

Suitability Standards

Suitability Standards

The shares we are offering through the Rich Uncles NNN REIT, Inc. prospectus are suitable only as long-term investments for persons of adequate financial means who have no need for liquidity in this investment. 

Because there is no public market for our shares, and we have no plans to list our shares on a national security exchange, investors will have difficulty selling their shares. Our articles of incorporation do not require us to ever provide a liquidity event to our shareholders. 

Our articles of incorporation do not require us to liquidate our assets and dissolve by a specified date, nor list our shares for trading by a specified date. 

There are significant restrictions on our share repurchase program. No public market currently exists for our shares, and we have no plans to list our shares on a national securities exchange.

In consideration of these factors, we have established suitability standards for investors in this offering and subsequent purchasers of our shares. These suitability standards require that a purchaser of shares have either:

A) A net worth of at least $250,000; or

B) Gross annual income of at least $70,000 and a net worth of at least $70,000.

In addition, the states listed below have established additional suitability requirements that are more stringent than ours and investors in these states are directed to the following special suitability standards:

  • California – Investors must have either (a) a net worth of at least $250,000 or (b) a gross annual income of at least $75,000 and a net worth of at least $75,000, and the investment must not exceed ten percent (10%) of the investor's net worth.
  • Idaho – Investors must have either (i) a liquid net worth of $85,000 and annual gross income of $85,000 or (ii) a liquid net worth of $300,000. Additionally, an Idaho investor’s total investment in Rich Uncles NNN REIT, Inc. shall not exceed 10% of his or her liquid net worth. Liquid net worth is defined as that portion of net worth consisting of cash, cash equivalents, and readily marketable securities.
  • Kentucky – Investors must have a liquid net worth of at least ten times their investment in Rich Uncles NNN REIT, Inc. In addition, no Kentucky investor shall invest, on an aggregate basis, more than 10% of his or her liquid net worth in the Issuer or Issuer’s affiliates’ non-publicly traded real estate investment trust. Liquid net worth is defined as that portion of a person’s net worth (total assets, exclusive of home, home furnishings and automobiles) minus total liabilities that is comprised of cash, cash equivalents, and readily marketable securities.
  • Missouri and Tennessee – Investors must have a liquid net worth of at least ten times their investment in Rich Uncles NNN REIT, Inc.
  • Virginia — Investors may not invest more than 10% of their liquid net worth in Rich Uncles NNN REIT, Inc. and in other illiquid direct participation programs.

For purposes of determining the suitability of an investor, net worth in all cases should be calculated excluding the value of an investor’s home, home furnishings, and automobiles. 

In the case of sales to fiduciary accounts, these suitability standards must be met by the fiduciary account, by the person who directly or indirectly supplied the funds for the purchase of the shares if such person is the fiduciary or by the beneficiary of the account.

SEC Quiz

Alternative investment assets includes which of the following? (Choose one)

  • Mutual Funds
  • Stocks
  • Bonds
  • Exchange-Traded Funds
  • Real Estate Investment Trusts

What is a Prospectus?

  • A statement of guaranteed return on investment.
  • A legal document that allows investors to purchase REIT shares.
  • A legal document that discusses the investment program for which money is solicited.
  • A statement of investment transactions.

The shares offered through the Rich Uncles NNN REIT, Inc. prospectus are suitable for? (Choose all that apply)

  • Long-term investments
  • Persons of adequate financial means
  • Those who have no need for liquidity in this investment
  • A guaranteed rate of return

True or False?

  • Rich Unlces NNN REIT, Inc. shares can be traded on any national securities exchange?

What are the 'minimum' suitability standards for an individual investor set forth by the Rich Uncles NNN REIT, Inc. prospectus? (Choose all that apply)

  • A net worth of at least $150,000.
  • A gross annual income of at least $70,000 OR a net worth of at least $70,000.
  • A net worth of at least $250,000.
  • A gross annual income of at least $70,000 AND a net worth of at least $70,000.

A CALIFORNIA investor requests to invest $50,000. What are the state's minimum suitability standards for this investment? (Choose one)

  • Investors may not invest more than 10% of their liquid net worth in Rich Uncles NNN REIT, Inc. and in other illiquid direct participation programs.
  • Investors must have either (a) a liquid net worth of $85,000 and annual gross income of $85,000 or (b) a liquid net worth of $300,000.
  • Investors must have a liquid net worth of at least ten times their investment in us.
  • Investors must have either (a) a net worth of at least $250,000 or (b) a gross annual income of at least $75,000 and a net worth of at least $75,000, and the investment must not exceed ten percent (10%) of the investor's net worth.

A CALIFORNIA investor is requesting to invest $75,000. The investor has claimed a gross annual income of $70,000. What is the minimum net worth he or she must have to satisfy the suitability of the investment?

  • $70,001
  • $250,001
  • $700,001
  • $750,001

For purposes of determining the suitability of an investor, net worth in all cases should be calculated EXCLUDING the value of? (Choose all that apply)

  • Investment property
  • Home furnishings
  • Automobiles
  • Primary property
  • Retirement accounts
  • Non-retirement accounts

Rich Uncles Types of Accounts

Non-Retirement Accounts

Individual/Joint

Individual accounts are held by one person. 

Joint accounts are co-owned between two or more individuals. Joint accounts are most likely to be used between relatives, couples, and/or business partners.

Trusts

A trust account is a fiduciary arrangement whereby a trustee holds assets on behalf of a beneficiary(s). 

*Additional documentation may be required:

1. The title page, which would include the full name of the trust.

2. The page which lists both trustees and successor trustees.

3. The signature page, which has the notarization stamp.

4. All pages that reflect revisions made to the trust.

Entities

This type of account is owned by an entity, not an individual person(s). 

This includes accounts held by corporations, partnerships, limited liability companies, professional associations, private foundations, and other types of organizations.

*Additional documentation may be required:

1. Operating Agreement and/or Articles of Organization

2. EIN Tax Number Verification

3. Filed list of Officers/Partners/Members


Online Investment Guide

Retirement Accounts

Retirement Account Types

Rich Uncles NNN REIT, Inc. accepts Traditional & Roth IRAs, 401(k) rollovers, Individual/Solo 401(k) Plans, and SEP & SIMPLE IRAs. 

However, to invest in an alternative asset, the client must utilize a Self-Directed qualified account; more commonly known as a Self-Direct IRA (SDIRA).

Retirement Investment Process

It's as Simple as 1-2-3

Rich Uncles IRA

Rich Uncles Retirement Accounts

Self-Directed IRA (SDIRA)

Most IRA custodians only allow their clients to invest in approved stocks, bonds, mutual funds, and CDs. A truly self-directed IRA (SDIRA) custodian, such as IRA Services Trust Company, allows for investments in those types of assets in addition to real estate, notes, private placements, tax lien certificates, and more.

Additionally, an SDIRA is a retirement account in which the individual investor is in charge of making all investment decisions. All securities and investments are held in an account administered by a custodian or trustee.

IRA Services Trust Company

Why IRA Services Trust Company?

IRA Services Trust Company has more than 35 years of experience offering unmatched custodial and administrative services in the self-directed IRA industry. They provide experience, superior service, true diversification and low fees, giving our clients greater choice and control for a better retirement.

Chartered in 2008, IRA Services Trust Company is a non-depository trust company regulated by the State of South Dakota Division of Banking. It is authorized to act as a custodian of self-directed IRA accounts. Their account holders invest in “traditional” publicly traded assets such as stocks, bonds, and mutual funds, and a wide variety of alternative assets including: real estate, precious metals, partnerships, limited liability companies, private stock, promissory notes, crowdfunding investments, and more.

Rich Uncles chose IRA Services Trust Company to be our preferred self-directed IRA custodian because they provide the highest level of customer service to all of our clients, and charge a fair and reasonable price for the services they provide. Their fees are among the lowest, if not the lowest, in the industry.

SDIRA Custodian Fees

Rich Uncles Negotiated Fee Schedule

Rich Uncles will pay the first year’s $100 annual account fee, in addition to the $48 asset fee for the investment in Rich Uncles NNN REIT, Inc., if the investor makes a minimum transfer/rollover of $25,000 upon opening an account. 

Rich Uncles will continue to pay the annual fees with minimum contributions/transfers/rollovers of $2,500 or more each subsequent year.

If the investor does not make additional contributions/transfers/rollovers of $2,500 or more, the investor will be charged annual fees in accordance with IRA Services Trust Company fee schedule.

Traditional IRA

Traditional IRA is an Individual Retirement Arrangement (IRA) to which an individual contributes pre-tax or post-tax dollars, and which allows your money to grow tax-deferred. When an account owner makes withdrawals after age 59½, those withdrawals are treated as ordinary income for the year distributions are made.

How they work: Contributions are made with post-tax dollars, and individuals claim a tax deduction for their contributions. Earnings grow tax-deferred and are subject to income taxes when they're withdrawn.

Contribution limits: Individuals can save up to $5,500 in 2017. Those who are 50 or older by the end of the year can put away an additional $1,000 (catch-up).

Income eligibility requirements: There are no income limits for contributions; however, if covered by a qualified retirement plan (QRP) such as an employer-sponsored plan (401(k)), individuals may be subject to deduction limitations for IRA contributions:

Warnings: Individuals are subject to a 10 percent penalty if funds are withdrawn from a Traditional IRA before age 59½. Likewise, minimum required distributions must be made from Traditional IRAs no later than age 70½.

Roth IRA

Roth IRA is an individual retirement arrangement (IRA) that allows retirement assets to grow tax-free. Individuals fund Roth IRAs with post-tax dollars, meaning they've already paid taxes on the money they put into it. Although there is no upfront tax break for this type of account, money contributed to a Roth IRA grows tax-deferred, and when assets are withdrawn after the age of 59½ they are tax-free.

How they work: Contributions are made with post-tax money and earnings grow tax-deferred until they're withdrawn, at which point they're subject to NO income taxes.

Contribution limits: $5,500 per individual in 2017 with an additional $1,000 "catch up" contribution for those 50 or older.

Income eligibility requirements: 

Warnings: Individuals will incur a 10 percent penalty on funds saved in a Roth IRA if those funds are withdrawn before age 59½. There is NO required minimum distribution.

SEP IRA

Simplified Employee Pension 

A Simplified Employee Pension Plan (SEP) is a relatively uncomplicated retirement savings vehicle. A SEP allows self-employed individuals and/or employees to make contributions on a tax-favored basis to individual retirement arrangements (IRAs). 

SEPs are subject to minimal reporting and disclosure requirements. Under a SEP, an employee must set up an IRA to accept employer contributions. All eligible employees are required to be offered the plan.

Generous contribution limits

The contribution limits for SEP-IRA accounts are both straightforward and generous. Unlike many other retirement account types, such as 401(k) plans and SIMPLE IRAs, 100% of SEP IRA contributions come from the employer. Employees are not required to, nor are able to, contribute to their own accounts.

For the 2017 tax year, SEP IRA contributions are capped by the lesser of these two criteria:

  • 25% of the employee's compensation for the year
  • $54,000 (2017)

And unlike many other retirement account types, there's no such thing as SEP "catch-up" contributions for older employees. 

How they work: Contributions are made by the employer with pre-tax dollars and earnings grow tax-deferred. Individuals pay ordinary income taxes on original contributions and earnings in a SEP IRA upon withdrawal.

Income eligibility requirements: Employees who earn less than $600 annually may be excluded. However, if an individual opens a plan for themselves, his or her employer must offer the plan to all other eligible employees who have worked for any amount of time in three out of the last five years.

Warnings: Individuals are subject to a 10 percent penalty if funds are withdrawn from a SEP IRA before age 59½. Likewise, minimum required distributions must be made from SEP IRAs no later than age 70½.


SIMPLE IRA

Savings Incentive Match Plan for Employees

A Savings Incentive Match Plan for Employees Individual Retirement Account, commonly known by the abbreviation "SIMPLE IRA", is a type of tax-deferred employer-provided retirement plan in the United States that allows employees to set aside money and invest for retirement.

How they work: Contributions are made by employees with pre-tax dollars; employers match savings in one of three ways: (a) They can fund up to 3 percent of earnings every year, (b) In certain years they can chip in between 1 and 3 percent of earnings, or (c) they can make non-elective contributions (that is, give money to an employee's plan even if that worker doesn't save), that are equal to 2 percent of a worker's compensation. Contributions and earnings grow tax-deferred until withdrawn, at which point they're subject to income taxes.

Contribution limits: Individuals can save up to $12,500 annually; those who reach age 50 by the end of 2017 can save an additional $3,000.

Warnings: Individuals who withdraw funds from a SIMPLE IRA prior to age 59½ will generally be subject to a 10 percent penalty on the withdrawn funds; individuals must start cashing out of a SIMPLE IRA by age 70½ or be subject to a 50 percent penalty on the required minimum distribution.

Who they're for: Self-employed individuals or small businesses with no more than 100 employees who earned more than $5000 in the preceding calendar year. Plans are ideal for self-employed business owners, including individuals, who want a flexible plan because contribution methods can be selected before the start of each year.

Qualified Retirement Plans

Qualified Retirement Plans 

A qualified retirement plan (QRP) is simply a plan that meets the requirements set out in Section 401/403/457/501 of the U.S. tax code. The majority of retirement savings programs offered by employers and state entities are qualified plans since contributions are tax-deductible.

ERISA

The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most voluntarily established pension and health plans in private industry to provide protection for individuals in these plans.

ERISA requires plans to provide participants with plan information including important information about plan features and funding; sets minimum standards for participation, vesting, benefit accrual and funding; provides fiduciary responsibilities for those who manage and control plan assets; requires plans to establish a grievance and appeals process for participants to get benefits from their plans; gives participants the right to sue for benefits and breaches of fiduciary duty; and, if a defined benefit plan is terminated, guarantees payment of certain benefits through a federally chartered corporation, known as the Pension Benefit Guaranty Corporation (PBGC).

In general, ERISA does not cover retirement plans established or maintained by governmental entities, churches for their employees, or plans which are maintained solely to comply with applicable workers compensation, unemployment or disability laws. ERISA also does not cover plans maintained outside the United States primarily for the benefit of nonresident aliens or unfunded excess benefit plans.

401(k)

A 401(k) plan is a defined contribution plan that is a cash or deferred arrangement. Employees can elect to defer receiving a portion of their salary which is instead contributed on their behalf, before taxes, to the 401(k) plan. Employers may match these contributions. 

There are special rules governing the operation of a 401(k) plan. For example, there is a dollar limit on the amount an employee may elect to defer each year. An employer must advise employees of any limits that may apply. Employees who participate in 401(k) plans assume responsibility for their retirement income by contributing part of their salary and, in many instances, by directing their own investments.

How they work: Earnings grow tax-deferred. Income taxes are owed on money that's withdrawn. Most employers also kick in contributions to 401(k) plans, matching savings up to a certain limit or percentage of an employee's salary.

Contribution limits: Individuals can save up to $18,000 in 2017, and those who reach age 50 by the end of the year can save an additional $6,000.

Income eligibility requirements: None

Warnings: Individuals who withdraw funds prior to age 59½ will generally be subject to a 10 percent penalty on the withdrawn funds; individuals must start cashing out by age 70½ or be subject to a 50 percent penalty on the required minimum distribution amount.

Who they're for: Any wage-earner whose employer allows them to participate in their plan.

Solo 401(k)

Solo/Individual 401(k) Plans

How they work: Contributions are made by sole proprietors with pre-tax dollars; earnings grow tax-deferred. Income taxes on earnings and original contributions are paid when funds are withdrawn.

Contribution limits: Up to $18,000 in 2017 plus an additional $6,000 for those who reach age 50 by the end of the year, plus an additional 25% of total compensation, up to $54,000 in 2017.

Income eligibility requirements: None.

Warnings: Individuals who withdraw funds prior to age 59½ will generally be subject to a 10 percent penalty on the withdrawn funds; individuals who fail to take a required minimum distribution by age 70½ may also be subject to a penalty.

Who they're for: Because its contribution limit is far higher than those of IRAs, the solo 401(k) is good for self-employed individuals with no employees who want to contribute a significant amount of money to a retirement plan.

Rich Uncles Account Type Quiz

In a ROTH IRA, contributions are made with post-tax dollars, account growth is tax-deferred, and qualified distributions are tax-FREE?

  • True
  • False

For the 2017 tax year, what is the maximum fund limit an individual can contribute to a 401(k) plan if he or she is under 50-years-old?

  • $10,000
  • $18,000
  • $24,000
  • None of the Above

SEP IRA stands for?

  • Standard Employee Pension IRA
  • Standard Employee Payment IRA
  • Simplified Employee Pension IRA
  • None of the above

For the 2017 tax year, SEP IRA contributions are capped by the lessor of which of the following two criteria?

  • 25% of an employee's annual compensation, OR $54,000
  • 25% of an employee's annual compensation, OR $53,000

The following can all be common names for a Qualified Retirement Plan, EXCEPT for? (Choose one)

  • 401(k)
  • 411(c)
  • 403(b)
  • 457(b)

Rich Uncles offers which of the following account types? (Choose all that apply)

  • 403(b)
  • Solo 401(k)
  • Trusts
  • Entities
  • Roth IRA
  • SEP IRA
  • Coverdell
  • UTMA
  • Traditional IRA
  • SIMPLE IRA
  • Joint Accounts
  • 457(b)
  • Individual

Self-Directed IRAs allow you to invest in?

  • Real Estate
  • Precious Metals
  • Private Tax Liens
  • All of the Above

Which of the following accounts creates a fiduciary arrangement whereby a trustee holds assets on behalf of a beneficiary(s)?

  • SIMPLE IRA
  • SEP IRA
  • Entity
  • Trust

Which of the following is an account held by corporations, partnerships, limited liability companies, professional associations, private foundations, or other types of organizations?

  • Trusts
  • Entities
  • 401(k)
  • Simplified Employee Pension

Which two IRAs are considered long-term investment types?

  • Traditional IRA
  • Hoth IRA
  • Rich Uncles IRA
  • Roth IRA

A client would like to rollover their orphaned 401(k). What type of IRA should the client establish?

  • Roth IRA
  • SEP IRA
  • Individual 401(k)
  • Traditional IRA

A 51-year-old client would like to make a 'tax-deductible' contribution for the year. Assuming the client is single and below the phaseout limits, what type of IRA should the client have, and what is the contribution limit for 2017?

  • Roth IRA; $5,500
  • Traditional IRA; $5,500
  • Roth IRA; $6,500 (includes $1,000 catch-up)
  • Traditional IRA; $6,500 (includes $1,000 catch-up)

A client would like to use their 'current' employer's 401(k) plan to invest. Assuming that both the 401(k) plan and the participant qualify for an 'in-service distribution,' what type of IRA should the client establish?

  • Old School IRA
  • Industrial Age IRA
  • In-Service IRA
  • Traditional IRA

Introduction to RU Investor Relations

Investor Relations

Objective

Rich Uncles Values

Investor Relations

Investor Relations - Cont.

Importance of Investor Relations

Marketing Qualified Leads

Client Journey

Key Performance Indicators

KPI - Responsibilities

Customer Relationship Management

CRM - Cont.

CRM - Cont.

Salesforce

Salesforce

Lead Conversion

Person Account

Person Account Navigation

Common Error

Person Account Navigation

Person Account Navigation

Person Account Navigation

Employee Benefits (Coming Soon)

Code of Conduct

Eligibility Periods

Health Insurance

Pushing Up People