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Compliance & Governance

Accredited Investor Requirements for the Latitude 20 REIT Offering

To comply with U.S. securities regulations under Regulation D of the Securities Act of 1933, participation in the Latitude 20 REIT is limited strictly to accredited investors. This classification ensures that participants have the financial capacity and sophistication necessary to evaluate and withstand the risks of private real estate investing.

 Individual Eligibility (Rule 501(a), Regulation D)

An individual is considered an accredited investor if at least one of the following applies:

  • Has a net worth exceeding $1 million, either individually or jointly with a spouse or spousal equivalent (excluding the value of a primary residence).

  • Has an individual annual income exceeding $200,000 (or $300,000 jointly with a spouse or spousal equivalent) in each of the last two years, with a reasonable expectation of maintaining that income level.

  • Holds certain professional financial licenses, such as Series 7, Series 65, or Series 82.

  • Is a knowledgeable employee of a private investment fund.

 Entity Eligibility

An entity qualifies as an accredited investor if it meets any of the following conditions:

  • Possesses assets exceeding $5 million, and was not formed solely to purchase securities.

  • Is composed entirely of equity owners who are themselves accredited investors.

  • Is a registered investment advisor, broker-dealer, or other qualifying institution.

  • Is a family office or trust with over $5 million in assets under management.

 Regulatory Overview: Rule 506 Offerings

The Latitude 20 REIT offering is conducted under Rule 506 of Regulation D, which provides two key pathways:

  • Rule 506(b): No public advertising is allowed. The issuer must reasonably believe all investors are accredited.

  • Rule 506(c): Public advertising is allowed, but the issuer must take reasonable steps to verify accredited status, such as reviewing tax returns, bank statements, or third-party verification letters.

 Private REIT Considerations

The Latitude 20 REIT is classified as a Private Real Estate Investment Trust (REIT), which differs significantly from public REITs:

  • Available only to accredited investors

  • Not listed on public exchanges

  • Shares are illiquid and may not be transferred or redeemed easily

  • Investors must understand and accept higher risk, reduced liquidity, and longer-term commitment

 Investor Compliance & Verification

All investors must undergo an accredited investor verification process before any capital is accepted. This may include submission of:

  • Income documentation (tax returns or pay stubs)

  • Net worth verification (bank, brokerage, or retirement account statements)

  • License verification for qualifying professionals

  • Third-party verification from a CPA, attorney, or registered investment advisor

 Summary Eligibility Checklist

Category       Criteria

Individual       Net worth > $1M (excluding home), or income > $200K ($300K joint), or qualifying license

Entity               Assets > $5M, or composed of accredited owners, or a qualified institution

Verification    Documents proving financial status or professional qualifications

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​AML & KYC Overview

  • Quarterly investor updates with property acquisition summaries, financial performance, and forecasts.

  • Quarterly dividend disbursement, subject to cash flow and board approval.

  • Annual K-1 tax reporting for U.S. investors; foreign investors receive corresponding year-end financial summaries.

  • Annual general investor meeting (virtual or in-person) with fund leadership and compliance officers.

SEC Form D Filing

Latitude 20 Equity Fund LLC has filed Form D with the U.S. Securities and Exchange Commission (SEC) under Regulation D, Rule 506(c). This exemption allows for general solicitation provided all investors are verified as accredited through third-party or issuer methods.

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Our legal counsel ensures annual updates and full compliance with SEC requirements. Fund documents are updated to reflect any material changes and investors are notified immediately.

Mexican and U.S. Regulatory Adherence

The fund adheres to a dual-compliance framework:

  • U.S.: Operates as a private REIT under federal securities laws, managed by a U.S.-based LLC (Astamar Asset Management LLC). Overseen by Chief Compliance Officer, with reporting obligations fulfilled per SEC and IRS.

  • Mexico: Title and asset acquisitions occur through a Mexican entity, Hauzen Consultoría. All acquisitions are notarized, registered with the Public Registry, and undergo due diligence by Mexican legal counsel. We comply with SAT tax regulations, INM (immigration/foreign ownership rules), and utilize fideicomisos (bank trusts) when required.

 

This structure ensures the fund maintains transparency, investor protections, and operational legitimacy in both jurisdictions.

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