Frequently Asked Questions
What is the minimum investment?
$100,000 is the minimum invesment in RENTDUE Capital.
How do I invest?
1. Fill out the investor form by clicking on the button.
2. Read the PPM, Operating Agreement.
3. Fill out the subscription agreement and the accredited investor questionnaire.
4. Wire Funds
**normally takes 48 to 72 hours to hit the trading account. You will be notified when your funds are in the trading account**
Do I have to be an accredited investor?
Yes you do. An accredited investor is a person or entity who is allowed to invest in securities that are not registered with financial authorities by satisfying one (or more) requirements regarding income, net worth, asset size, governance status, or professional experience.
1. An individual with an income exceeding $200,000 (or $300,000 together with a spouse) in each of the prior two years, and a reasonable expectation of the same or higher income in the current year.
2. An individual with a net worth exceeding $1 million, either alone or together with a spouse, excluding the value of the primary residence.
3. Certain institutional investors, such as banks, partnerships, corporations, nonprofits, and trusts, with assets exceeding $5 million.
4. Professionals holding specific licenses or credentials (like Series 7, Series 65, or Series 82 licenses) who are considered to have sufficient investing experience and knowledge.
Where are the RENTDUE funds being held?
Currently funds are held in a TD Ameritrade Account (Charles Schwab). We trade on the Think Or Swim Platform. You can read more about their asset security here TDA-Brochure-Account-Protection
Can I use my IRA or 401K account to invest in RENTDUE Capital?
Absolutely. RENTDUE Capital investments is considered an Alternative Investment. You will need to do your own research, but some investers have already used Self-Directed IRAs. For specific questions about 401k or IRA eligibility, please contact jace@rentduecapital.com.
How safe is my investments?
As of September 12, 2024, we have experienced a total of 18 losing days, with the largest single-day loss being 0.86% of the account—less than 1%. Although we have not yet encountered a losing week, it is important to note that they will occur as part of normal market fluctuations. This is not a risk free investment. Please read disclosures!
What do We trade?
Our primary focus is on trading call and put options on the QQQ Index. (this can change)
How do we lose money?
We lose money when we deviate from our established rules or become entangled in market unpredictability. Losing money on trades is very common, but our goal is to end every trading day with profits. While our strategies and guidelines are designed to mitigate these risks, losses are sometimes inevitable. The quicker we take our losses and move onto the next trade the better.
Our trading strategy is governed by a comprehensive set of rules. The degree to which these rules are fulfilled directly influences our willingness to assume risk and our confidence in the potential success of a trade. A trade that meets all our criteria is classified as an A+ trade. Ideally, we aim for every trade to satisfy all our rules; however, this scenario is less common than desired. When a trade aligns with most, but not all, of our criteria, we proceed with caution, opting to engage with fewer contracts than we would in the case of an A+ trade. Our approach to trading is predominantly discretionary, allowing us to exercise judgment and control over each decision. This method enables us to maintain objectivity in day trading, offering a balanced blend of hands-on management and adherence to a systematic framework.
What is the Lock-up period?
A lock-up period is a window of time in which investors of a hedge fund or other closely-held investment vehicle are not allowed to redeem or sell shares. With RENTDUE Capital, each quarter you will be able to make a withdraw of all your funds. (subject to change)
How is my investment taxed?
The partner or member reports their share of the income on their personal tax return, based on the information provided on the K-1.
The income is taxed at the individual's ordinary income tax rate, unless it qualifies for capital gains or other special tax treatment (e.g., rental income or qualified business income).The income reported on a K-1 must be reported regardless of whether you received a cash distribution. You are taxed on your share of the partnership's or corporation’s income, not on the amount of cash you receive.
Losses reported on a K-1 may be subject to certain limitations, such as passive activity loss rules, and may not be immediately deductible.
Is this too good to be true?
"Risk is what you don't see because it cannot be predicted."
At RENTDUE Capital, we strive to limit exposure and take daily profits. Our impressive returns stem from the strategic use of options, leveraging them to achieve significantly higher returns.
Are you ready to JOIN US!
We would be delighted to have you join us; however, we exclusively accept accredited investors. If you're ready to invest, please click the link and complete the form. Should you have any questions, feel free to contact us.