1 min read
Sources:
Form 1-A, Kevin's account
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Short answer
Reinvest is an operating company, not a fund. It owns its buildings directly, charges no management fee, carries no mortgage, keeps the gain from buying below market as an unrealized cushion rather than marking to market, and pays tax as a C corporation. Investors hold stock or bonds in the company, not units in a pool, and there is no redemption window or public market; the preferred converts to non-voting common in 2029. Kevin’s view is that fund layers are mostly fees. The trade-off is liquidity and diversification, which funds offer and Reinvest does not. 12
Structure: Operating company (C corporation, owns buildings directly)
Management fee: None (no fund layer)
Leverage: None (no mortgage or bank debt)
Liquidity: None (no market, no redemptions)
What Reinvest is
A Wyoming C corporation that owns 38 properties directly, with no mortgage, and runs a membership business alongside. Investors buy its stock, bonds or preferred. There is no management fee, because there is no manager separate from the company; the officers are employees, and executive compensation is disclosed in the filing. 1
What a REIT or fund is
A pooled vehicle that owns many properties, charges a management fee, usually carries mortgage debt, marks its holdings to market regularly, and offers some liquidity, whether a stock exchange listing or a periodic redemption window. Most are structured to pay out most of their income and avoid entity-level tax.
Kevin’s argument
Kevin’s account
When Reinvest has equity gains from acquiring real estate, they do not get marked to market, an invisible safety cushion, and no taxes are owed on those gains. An ETF, a fee-based business in a world where fees are not the answer, could never do that. 2
The honest trade-off
Reinvest gives up what funds are good at. There is no public market for its shares and none is expected. There is no diversification beyond 38 properties and one management team. There is no independent daily valuation, which is why the book value and Kevin’s estimate differ by over $20 million with nothing to settle it. A fund’s fees buy liquidity, spread and marking; Reinvest’s lack of fees costs exactly those things. Compare the disclosures of any fund you are considering, including a crowdfunded one, against the Form 1-A on the same points.
Direct ownership, no fee layer, no leverage, no liquidity. A fund gives you the opposite of each. Decide which trade you want. 12
Simply put
✅ How Reinvest works
➡️ You own stock in a company that owns houses. No middle layer taking a percentage.
➡️ The company never borrows against the buildings.
➡️ If it bought a house cheap, that gain sits quietly until the house sells. Nobody marks it up or down.
✅ How a fund works
➡️ You own a slice of a pool. The manager takes a fee. Values are updated regularly.
➡️ You can usually get out, at least sometimes. You are spread across many properties.
✅ The catch
➡️ With Reinvest you cannot sell. There is no market. You are betting on one company and one manager.
Sources
Form 1-A, Business; Risk Factors (no public market; no bank debt; C corporation structure) Open the filing
Kevin's account, The thesis: “An ETF, a fee-based business in a world where fees aren't the answer, could never do that.” Read the excerpt
