FREQUENTLY ASKED QUESTIONS
Why invest in Real Estate Equity?
“Under all is the land.” According to Franklin D. Roosevelt, “Real estate cannot be lost or stolen, nor can it be carried away. When purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.” This is the Omega philosophy and strategy. Creating partnerships of accredited real estate investors allows for more buying power than one person can afford on their own. Real estate can generate significant income without having to sell your investment and value is added by improving and managing all types of real estate. Not only can real estate provide good income, it's income that naturally keeps pace with inflation.
Why invest in Oil & Gas?
Board Members of Omega Resources, Inc. believe the United States is still energy dependent on the oil and gas industries and most likely will be for the foreseeable future. It will likely be some time before alternative energy sources are able to meet current energy demands. Therefore, Omega Resources, Inc. plans to invest in oil and gas properties that can be reworked to provide substantial cash flows to the Company and its investors.
Why avoid Debt?
Borrowing or leveraging to maximize returns is dependent on individual risk tolerance, procuring investment funds is a personal decision supported by professionals familiar with each investors objective. With over 150 combined years of experience and having lived through two recessions and several market downturns, members of the Board of Directors have learned that debt, though it can increase returns, can also cost investors to lose their project when and if they run out of cash reserves and therefore Omega has chosen to give up some cash flow as opposed to losing the assets.
Who should own Real Estate Investments?
The simple answer is everyone should hold some of their assets in real estate. Many own their own home and for many this is their single largest investment, but the key is diversification. Not all of your assets should be in real estate, though many of the world’s richest own real estate and they own it for many reasons. Generally, real estate held for long periods of time is a great hedge against inflation. For example, is the home you own worth more today than it was a decade ago?
What sets Omega apart from others?
Omega only offers no leverage real estate offerings. In other words no debt is used. The projects are 100% equity distributed among all of the investors on a specified sharing arrangement. As a qualified accredited investor member, along with other accredited investors provide all of the capital necessary to own and operate the property, and Omega provides the talent and expertise to make it all happen. Since no leverage is used, the returns will be slightly less, but this is a much safer way to invest without the fear of losing the asset to a lender, as there is no lender…just equity investors.
What is Rule 506 of Regulation D?
Defined in the JumpStart Our Businesses Act (JOBS Act), Rule 506 is how a business can raise money and what critrium needs to be met in order for it to do so. Check out our JOBS Act page for more information.
Rule 506(b) only allows Private Placement offerings to “Member” Investors; how do I become a Member?
The SEC has defined pre-existing relationships as a investor and company relationship that is established prior to the offering. Since establishing a relationship prior to an offering is important, Omega encourages interested investors to reach out to us to start that line of communication. Although, you may not qualify for a current offering, the relationship will have been potentially established for the next offering.
Why invest in Property with Development Potential?
Equity investing in development property with upside potential has a number of advantages. Taking raw land through the process of entitlement, development and construction adds value at each step along the way. By creating these equity bumps along the way your equity gains value. Very few individuals and slightly more real estate professionals understand the various detailed steps necessary in the land entitlement and development processes. While all land use is still local there are many tasks that are similar from municipality to municipality and that is why we use local experts to fill in the gaps and assist us through the municipal maze. Understanding the approval processes and coordinating the rigorous and comprehensive process is what we do and have done for many years.
What is a general outline of steps throughout the Development Process?
1) Identify a high growth market
2) Identify a specific void within that high growth market…a market niche
3) Identify a site or alternative sites within the market suitable for your project
4) Contract with the property owner to acquire your site under your terms
5) Perform intense Due Diligence on the selected site
6) Arrange project funding
7) Close on project site
8) Complete entitlements and development construction plans and budgets
9) Construct project
10) Operate and manage project as per business plan
11) Complete business plan for disposition of project
I noticed that the Investor Portal link brings me to a webpage run by Realty Funding Source Investment Management (RFS). What is the connection between Omega and RFS?
RFS Investment Management manages the investor portal for Omega Resources, Inc., facilitating investment opportunities. While Omega Resources, Inc. and RFS Investment Management are separate entities, we work together to provide you with access to investment opportunities in real estate. Click 'Investor Portal’ in the navigation menu to access the RFS portal.