Building a Strategic Relationship with RIAs

Today’s financial advisory business has evolved with investors looking to registered investment advisors (RIAs) to provide investment advice, portfolio management and ongoing financial guidance. Inland Real Estate Investment Corporation (Inland Investments) has the unique opportunity to build a strategic relationship with RIAs to offer alternative programs and opportunities that may satisfy a wide range of investment portfolio objectives..

Here you will find an overview of Inland Investments’ operations and due diligence process for our suite of real estate investment solutions.

BEST PRACTICES GUIDE

OPERATIONS

plus-white
remove-minus

Investment Processing

Inland Investments’ products offer RIAs the opportunity to complete and submit appropriate investment paperwork via end-to-end digital solutions or a traditional submission process.


End-to-End Digital Solutions

Easily complete paperwork electronically and email the documentation to investors for an electronic signature via DocuSign.

ALTIGO LOGIN
AIX LOGIN
Request access to ALTIGO

Fees & Compensation*

AUM or AUA
FEES

RIA charges an advisory fee comprised of a percentage of assets under management (AUM) or assets under advisement (AUA) in a client account.

FLAT-FEE
PAYMENTS

Client agrees to a one-time flat fee for advice payable to the RIA. Fees may vary depending on complexity and size.

TIERED OR ASSET
CLASS BASED-FEES

Client responsible for paying RIA based on advisory agreement, which includes tiered fee schedule or based upon the asset class.

CONSULTING
AGREEMENTS

For RIAs that have a real estate consulting body, Inland Investments will work to build a custom compensation structure for the firm.

*This information represents the result of various discussions with RIAs of all sizes and disciplines, and no particular method is recommended over another. None of the methods described above may be relied upon as compliance or legal advice, and each firm should consider all options, and seek appropriate counsel to determine the needs of their specific business.

Custodial Platforms

Offerings are generally available on a variety of custodial platforms, including Charles Schwab, TD Ameritrade, NFS and Pershing. Contact Adam Nuger for an outline of all custodians available, platform fees and additional information.

Click here to learn the 3 easy steps for RIAs to successfully transfer custody of an Inland Private Capital Corporation (IPC) Delaware statutory trust (DST) investment to Charles Schwab.

Statements

Inland Private Capital Corporation (IPC) and Inland Venture Partners (IVP) statements are sent to investors via mail or email. These statements outline transactions that have taken place within the specified period, along with distribution amounts that have been received, if any. IPC statements are sent monthly and IVP statements are sent annually. Investors that own multiple Inland Investments’ products will receive separate statements.

IPC DST Distribution Statement 1

IPC DST Distribution Statement

IPC DST Distribution Statement 2-1

IVP DST Distribution Statement

Tax Documents Prepared by Inland-Sponsored Programs

1099-DIV

plus-white
remove-minus

Typically issued by a REIT investment, a 1099-DIV form provides detailed information about the income earned through dividends and distributions. It includes the total amount of dividends or distributions received, as well as any taxes withheld and other relevant information.

The income reported on a 1099-DIV must be reported on a client’s individual tax return, entered on Schedule B, which is attached to Form 1040 or 1040A. Depending on the amount and type of dividends received, your client may also need to report them on other parts of your tax return.

Schedule K-1

plus-white
remove-minus

When an Inland Investment program is structured as a partnership, the sponsor will provide a Schedule K-1. The Schedule K-1 provides detailed information on various types of income, including business income, rental income, interest, dividends, and capital gains. It also reports information on deductions, credits, and other tax items that your client may need to report on their individual tax return.

Schedule K-1 recipients typically receive a copy to include in their personal tax return, usually on Form 1040. The information from Schedule K-1 can also be used to determine your client’s tax liability or refund based on their share of an entity’s income or loss.

Substitute 1099 - MISC/1098

plus-white
remove-minus

A Substitute 1099/1098 tax statement is provided to investors in an Inland-sponsored Delaware statutory trust, or DST. While some information will typically be reported by the sponsor electronically, such as Interest Income on a 1099-INT form; Mortgage Interest Paid on a 1098 form; and Rents (gross rental income) on a 1099-Misc form, the investor is responsible for reporting items such as income.

The substitute 1099/1098 can help in calculating each investor’s depreciation and other costs needed to be included on each investor’s Schedule E of Form 1040, which is covered in detail.

Paperwork Submissions

Once paperwork has been reviewed and completed by the investor and RIA, the following workflows provide a high-level overview of the submission processes for 1031 exchanges and IVP offerings. For additional paperwork submission workflows, contact your Institutional Relations Group team member.

IPC 1031 Exchange Transactions

01

Qualified Intermediary (QI) selected

02

Investor sells relinquished property

03

RIA submits completed IQPA to

investments@inlandprivatecapital.com

RIAs may submit completed paperwork prior to the sale of the relinquished property

Refer to our 1031/DST Roadmap To Success for important information related to each phase of 1031 Delaware statutory trust (DST) investment process

IVP Fund Submissions

  • Investor completes Subscription Agreement (sub doc) with RIA

  • RIA does direct business and submits sub doc to SS&C (transfer agent)

  • RIA submits sub doc to custodian

IVP utilize SS&C Technologies Holdings (SS&C) as the transfer agent for submission agreement processing. SS&C is responsible for tracking account balances, recording transactions, and more.

Risk Management

plus-white
remove-minus

Form ADV & Part 2 Brochures

Form ADV and Part 2 Brochures should be current, consistent and accurately describe advisory services for alternative real estate investment securities. Below is sample language that may be utilized by RIAs looking to expand their portfolio allocations to include real estate. This sample language is not intended to provide legal advice and each RIA should consult their legal and/or compliance resources to develop language that applies to their specific business model.

Example Language:

“Our investment recommendations are not limited to any specific product or service offered by a broker dealer or insurance company and will generally include advice regarding the following securities:

  • Interests in partnerships investing in real estate
  • Private placements, typically focused on real estate
  • DST and other real estate-focused investments"

For additional language examples, please contact Adam Nuger.


Insurance (E&O) Considerations

We understand that as your firm expands its investment solutions to include alternatives that better serve your clients, your business insurance needs may change. While RIAs are not always required to secure E&O insurance, we recommend that RIAs review all insurance coverage options to prevent themselves from exposing their business to unnecessary risks. Inland Investments has built a strategic relationship with Golsan Scruggs to help answer any insurance related questions you may have.

Golsan Scruggs is a premier third party insurance brokerage firm operating throughout the United States, specializing in insuring RIAs and private and public fund groups. Primary coverage lines include E&O, D&O, Cyber, Wire Fraud, Employment Practices, and Crime. As one of the largest insurers of investment firms in the United States, Golsan Scruggs understands the unique risks of the RIA industry and has specialty knowledge, securing superior client results. To learn more, or if you have questions about your insurance situation contact Brian Francetich directly at Golsan Scruggs.

Contact name: Brian Francetich, Director of GSRIA
Phone: (503) 244-0297 x103
Email: bfrancetich@golsanscruggs.com

Third Party Due Diligence Firms

Inland Investments works with two of the leading, third-party due diligence firms in the nation to offer RIAs focused intelligence and due diligence reporting for our alternative investment solutions.

Snyder Kearney, LLC is an independently owned and managed law firm that has actively engaged in providing due diligence services to RIAs since 2001. Snyder Kearney provides most reports for IVP. Access these reports via their due diligence portal here. RIAs who have never accessed Snyder Kearney’s due diligence portal will need to request a new login. Contact Mia Wrisley at (443) 979-7200 ext. 126 or mwrisley@snyderkearney.com.

Mick Law P.C. offers a broad range of legal services to RIAs including thorough due diligence reviews of various alternative investment asset classes. Mick Law provides reports for most IPC programs. To request a copy of an IPC program report, contact Nikki Burson at (402) 504-1710 or nburson@micklawpc.com.


Due Diligence Questionnaires (DDQs)

In an effort to help RIAs effectively and efficiently complete a detailed due diligence review, we offer extensive DDQs for each of our investment opportunities. The DDQs provide general background on the organization, product information, performance updates, risk management details, financials and more.

DDQs are provided upon request. Please reach out to Adam Nuger for that documentation.

Implementation Strategy & Blueprint

plus-white
remove-minus

Inland Investments has developed a multi-level approach for implementation and educational training on our alternative investment solutions.

  • Executive Team Discussion

    Provides alignment on the positive business impact and enterprise revenue opportunities of our alternative investment strategies and includes a discussion on how to mitigate enterprise risk when implementing a new investment solution.

  • Regional Office Management Education

    Similar to the Executive Team Discussion, we create alignment on the positive business impact and regional revenue opportunities of our investment solutions. The team also begins development of a custom IAR educational program to fit the needs and wants IRAs.

  • IAR Education

    Objectives of a custom IAR education program are to offer insight into business opportunities, provide additional education on Inland Investments and our alternative investment solutions, and demonstrate how these solutions can help generate new clients for IARs.

  • Customized Marketing Strategy

    Work with your experienced Institutional Relations Group team member to create a personalized marketing strategy that includes social, website and email campaigns.

  • Continuing Education

    Inland Investments continuing education provides additional support and insights into our investment solutions to help facilitate client opportunities. Continuing education opportunities include individual case support, educational meetings and webinars, third-party educational content, and featured speaker events with value-add leaders.

Educational Resources

plus-white
remove-minus

Inland Academy: Helping Advisors Grow Their Practice

Insights to Grow Your Knowledge and Your Practice

Through a series of videos, guides, templates, and checklists, the Inland Academy provides the insights you need to help create a client experience that elevates your business to new heights.

EXPLORE OUR COURSES
Pattern-fill

Inland
Academy

video-screen-3

Advisor
Education

videoscreen-2

Regulatory
Education

video-screen-1

White Label
Programs

video-screen

Client Approved
Materials

VIEW EDUCATIONAL RESOURCES

Contact Us

After connecting with Inland Investments and expressing interest in learning more about the organization and products available, RIAs will be put in touch with a member of our Institutional Relations Group for due diligence information, fee discussions, and selling agreement completion.

Group 59

If your state is navy blue, please contact:

Ryan Perri, VP of Institutional Relations

630-586-6711 | RPerri@inland-securities.com

If your state is gray, please contact:

Adam Nuger, SVP of Institutional Relations

630-828-5842 | ANuger@inland-securities.com

If your state is light blue, please contact:

George Sabino, VP of Institutional Relations

854-202-4442 | GSabino@inland-securities.com

Questions or to Schedule an Onboarding/Operations Review Meeting Contact:

Adam Nuger, SVP of Institutional Relations

630-828-5842 | ANuger@inland-securities.com
;

This website is neither an offer to sell nor a solicitation of an offer to buy any security which can be made only by a prospectus or offering memorandum, which has been filed or registered with appropriate state and federal regulatory agencies, and sold only by broker dealers and registered investment advisors authorized to do so.

The Inland name and logo are registered trademarks being used under license. "Inland" refers to some or all of the entities that are part of The Inland Real Estate Group of Companies, Inc. which is comprised of a group of independent legal entities some of which may be affiliates, share some common ownership or have been sponsored and managed by such entities or subsidiaries thereof including the Inland Real Estate Investment Corporation (Inland Investments) and Inland Securities Corporation. Inland Securities Corporation, member FINRA/SIPC, is dealer manager and placement agent for programs sponsored by Inland Investments and Inland Private Capital, respectively. For more information on Inland Securities Corporation, visit FINRA BrokerCheck.