Direct Investment Made Simple

Registered Investors:

Funds Raised:

High Quality • High Yield Investments • No Fees

What is Telos?

Telos is a direct investment website for accredited investors seeking high-yield, collateralized investments sponsored by experienced industry leaders.  We match savvy investors in search of above-market-returns with seasoned investment sponsors needing capital for business opportunities in the fields of real estate, technology and energy.  Our goal is to offer high quality, risk-adjusted investments while making the investment process safe and transparent for the investor.  Skip the middle-man fees and grow your wealth with Telos Direct Investment!

At Telos, we focus on high-yield, high-quality alternative investments.  For decades, finding high-yield investments was all about who you knew.  Financial institutions and hedge funds pretty much had a lock on most high-yield investments.  Now, all that has changed.  Through Telos, accredited investors like you can access high-yield investments just like the big boys by investing directly with the investment sponsors.

Our website is super easy to navigate. We’ve made the entire process from selecting just the right investment for your needs, to retrieving your profits, completely online. Fast. Simple.

None of this matters unless you keep your profits healthy and nothing chews up your profits more than middleman fees. We deliberately engineered our business model to provide accredited investors like yourself with free access to high-quality investment projects. As a member of Telos you avoid middleman fees by communicating and investing directly with the investment sponsors.  Registration is fast and free.

Funded

Orange County Office Redevelopment

Commercial & Residential Real Estate

  • Target Yearly Cash 8%
  • Target Investment IRR 20%

Minimum Investment: $25,000

Total Capital Raised: $3,200,000

Pending

San Diego Brand Hotel Development

Commercial & Residential Real Estate

  • Target Yearly Cash 9%
  • Target Investment IRR 22%

Minimum Investment: $10,000

Minimum Investment Term: 3 Years

Pending

Las Vegas Mixed-Use Development

Commercial & Residential Real Estate

  • Target Yearly Cash 9%
  • Target Investment IRR 20%

Minimum Investment: $10,000

Minimum Investment Term: 3 Years

Pending

Detroit Single Family Housing Redevelopment

Commercial & Residential Real Estate

  • Target Yearly Cash 10%
  • Target Investment IRR 22%

Minimum Investment: $10,000

Minimum Investment Term: 2 Years

Our Selection Process

At Telos we tediously underwrite each and every investment project along with its sponsor.  We examine project market value, pro forma, budgets, location, competition, company infrastructure, sponsor experience and investment track record just to name a few.  98% of all investment projects submitted to Telos are rejected.  Good is not enough for Telos. Excellent is our investment standard.

Questions & Answers

Simply click on a question to see the answer

Terminology FAQs

What is Crowdfunding?

Crowdfunding is a form of investment advertising, usually using the internet. It allows investment sponsors, also known as “Issuers”, to advertise their investment offering directly to qualified investors. In 2013 the crowdfunding industry grew to over $5.1 Billion. Crowdfunding offerings are broken into two basic groups; offerings for accredited investors and offerings for qualified investors. Accredited Investors are basically millionaires, while qualified investors are investors that meet certain SEC requirements, but have a net worth less than one million dollars. Telos is a crowdfunding platform for accredited investors only.

What is an Accredited Investor?

An individual that earns more than $250,000 per year or has over $1,000,000 in asset excluding their primary residence.

What does Minimum Investment mean?

The smallest amount an investor may invest in the investment, usually the cost of one membership unit.

What does Maximum Investment mean?

The maximum amount an investor may invest in the investment, usually the total cost of the remaining membership units.

What is a Target Investment IRR?

This is a formula the investment issuer uses to calculate the return on investment that an investor could make on an investment. It is a target, which means that there is no guarantee that the investor will make this amount, but is based on the issuer’s pro forma of the investment.

What a Target Project IRR?

This is formula the investment issuer uses to calculate the return on investment that the entire project could make off the capital invested. This is usually less important to an investor than Target Investment IRR.[/learn_more

What is a Target Yearly Cash?

This is a calculation of how much an investor could make in the preferred position of an investment. A Target Yearly Cash is paid on the capital accounts of all equity investors before the issuer or sponsor are paid their “carried interest” which is their incentive bonus. Although, there is no guarantee that the issuer will be able to pay all or part of a Target Yearly Cash, there is a higher probability that the investors will be paid their Target Yearly Cash vs. the Target Investment IRR because the Target Yearly Cash is considered “first monies out” once all the investment’s expenses have been paid and all the invested capital has been paid back to investors.

Do I get both the Target Yearly Cash and the Target Investment IRR?

Preferred interest is counted as part of an investment’s IRR. As an example, if a one year investment paid a 9% Target Yearly Cash and also paid a 12% profit on your investment, then your total IRR would be 21% on the capital you invested. So, you do not receive preferred interest in addition to your return on investment, but as part of your return on investment.

What is the difference between a Sponsor and an Issuer?

The Sponsor and the Issuer are usually two separate legal entities, each with a role in an investment.

A sponsor is usually an operating company that executes the development and operation elements of an investment. The sponsor is contractually obligated by the investment issuer to perform certain tasks of the investment such as building an apartment building or running the day to day operations of a hotel. The sponsor is usually compensated for its services through certain fees paid by the Issuer and from “Carried Interest”. The sponsor usually invests some of its own money in the investment right alongside the other investors with the same terms and conditions. The sponsor’s investment is called, “Sponsor Equity” and is considered “skin-in-the-game” meaning it is at risk. An issuer of an investment is usually the holding company of the investment and its assets. The issuer is usually a Special Purpose Vehicle (“SPV”) in the form of a Limited Liability Company, Limited Partnership or a Corporation. The investor invests in the issuer’s offering by purchasing ownership interests, usually “units”, of the SPV. The issuer then contracts the SPV with the Sponsor.

What is an Investment Offering?

The document that explains the investment and defines the terms and conditions of the investment. It will also define many, but not all of the risks involved in the investment.

What is a Private Placement Memorandum?

The same as an investment offering. The document that explains the investment and defines the terms and conditions of the investment. It will also define many, but not all of the risks involved in the investment. Also known as a “PPM”.

What is a Subscription Agreement?

The document that the investor fills out, signs and submits to the investment issuer. The issuer may accept the investment by signing and returning the subscription agreement to the investor. Once returned, the investor is considered “invested” in the investment. Telos sponsors use an electronic subscription agreement which allows the investors to sign electronically and is legally binding.

What is a Project Investment?

A “project investment” is an investment used to finance a single or portfolio of projects. It is is different than a fund investment in that the project(s) are usually identified and underwritten before investment.[/learn_more

What is a Fund Investment?

A “fund” is a pool of capital from investors that is used to finance multiple projects. The projects are usually not identified before investment. The fund manager determines in which projects the fund will invest. Fund Investments are usually more diversified than project investments.

What does it mean to fund an investment?

An investor funds their investment after signing and submitting a subscription agreement. The investor may mail a check or include their bank transfer information on the subscription agreement to fund their investment.

What is a Membership Unit?

A “Membership Unit” is a unit of ownership in an investment. It is usually the lowest amount an investor may invest in the investment. The Membership Unit determines the percentage of profits (or loses) the investor will receive on their invested capital.

What is an Equity Fund?

A fund in which all investment into the fund is considered equity. Investor participate in the fund’s profits, rather than receive a predetermined amount of interest on their capital. An investor is not responsible for any losses beyond the amount invested.

What is a Subscription Period?

The period in which investors may invest in a fund or project.

What is an Acquisition Period?

The period in which the issuer may use investor capital to invest in projects.

What is a Reinvestment Period?

The period in which the issuer is allowed to reinvest profits from other investments that have already been liquidated.

What does Limited Liability mean?

An investor is limited in their liability. In other words, they are not liable for any company loses beyond the amount they have invested. The investment offering will state if the investment is limited in liability.

What is an investment term?

An investment term is how long the issuer estimates that the investment will last. For most investments this means that the issuer will use your capital for the entire investment term before your original capital investment plus all your remaining profit participation is returned to you. Some investments may return some or all of your invested capital back or pay profits during the investment, while others will “cumulate” all payments until the end of the investment. It is important to thoroughly read the investment offering for each investment to understand when your capital and your profits will be returned to you.

What is carried interest?

Carried interest is compensation in form of profit participation taken by the sponsor or issuer for setting up and operating the investment on behalf of the investors. Carried interest is usually paid after the investors have received all of their original capital back, plus their preferred interest. It is important to thoroughly read the investment offering for each investment to understand how much carried interest is being paid to the issuer and the responsibilities of the issuer.

Telos FAQs

What is Telos?

Telos LLC is a crowdfunding platform for accredited investors. We offer investments in technology, energy and commercial real estate. Investment sponsors, also called “Issuers”, create the investments that are displayed on our site. Accredited investors communicate and invest directly with the investment sponsors. Our goal is to provide qualified investors with all the information and due diligence they need to make wise investment decisions and create wealth.

So take a look around. IT’S FREE! And after you are done, we hope you recognize that direct investment through Telos is a better mousetrap.

What makes Telos different?

The principals of Telos are veteran investment bankers with decades of investment underwriting experience in energy, technology and commercial real estate. Over the past thirty years, our principals have financed projects with many of the world’s largest capital sources including pension funds, insurance companies, sovereign funds and endowments.

We know a good deal when we see it… and we know a bad one. We admit it. We’re picky about which deals are posted on our site. We only allow sponsors with extensive experience in their field and a successful track record of investment to post investments on our site. We require our sponsors to put “skin-in-the-game” by investing sponsor equity at the same terms and conditions as the outside equity investors. We only approve investments with deal structures that provide proper and balanced motivation to the sponsors so their interests are aligned with the outside investors. As you review our site’s investments we hope it becomes clear that we at Telos seek quality first and foremost.

Investing FAQs

Do I save money?

In the past, fund managers, securities firms and investment banks were usually the gatekeepers of quality investments. They were the middlemen, aggregating together groups of investors and investing in sponsor’s projects. They charged fees for their services, usually a percentage of each dollar invested and on the profits that they generated for their clients. The investment structure was fairly rigid and usually there was a chain of middlemen handling each investment project. A sponsor would go to an investment banker. The investment banker would go to a fund manager. The fund manager would use money from insurance companies, pension funds, endowments and other institutional investors. The pension funds, insurance companies, etc. would get their money from investment advisors. Investment advisors handled the individual investors. And, of course, everyone in the chain took their piece of the investment pie. Finally, the individual investor would get their return on their investment. The problem was… there wasn’t much left.

 

 

Well now all of that is gone… or at least starting to fade away. Qualified investors can communicate and invest directly with investment sponsors through Telos. No more middlemen. No more management fees.

Can I invest more than the minimum investment?

Usually, yes. You can invest up to the remaining amount available for investment for that particular investment. You usually need to invest in increments equal to the minimum investment amount. So, it the minimum investment amount is $10,000, and $150,000 is still available for investment, you could purchase 3 investment units for $30,000. At the issuer’s discretion, you can invest uneven amounts of capital and receive a pro rata share of profits. It is best to email the issuer and ask if it will accept an uneven amount of investment capital.

Is it risky?

Yes. All investments carry some risks. You need to be careful and do your homework when investing in projects on Telos. Not all investments and not all sponsors are the same. Some are safer than others. Some are more experienced than others. But usually, risk is adjusted through higher returns on investment and you can usually mitigate some of the risk by reviewing all the due diligence material and checking up on the sponsor of each investment you are considering.

We at Telos do not give investment advice on or recommend specific investments to investors. We provide opportunity and information. It is up to the individual investor and their advisors to do their own due diligence on each investment they are considering. One thing to keep in mind is that many of our sponsors have used money from institutional capital sources on past investment projects. In other words, if you invested with certain institutional firms there is a chance that you already have invested with a particular sponsor. You just didn’t know it. You took the same basic risk and you paid a good portion of your invest profits in middleman fees.

Is there any cost savings with Crowdfunding?

In most cases, absolutely. In the past, fund managers, securities firms and investment banks were usually the gatekeepers of quality investments. They were the middlemen, aggregating together groups of investors and investing in sponsor’s projects. They charged fees for their services, usually a percentage of each dollar invested and on the profits that they generated for their clients. The investment structure was fairly rigid and usually there was a chain of middlemen handling each investment project. A sponsor would go to an investment banker. The investment banker would go to a fund manager. The fund manager would use money from insurance companies, pension funds, endowments and other institutional investors. The pension funds, insurance companies, etc. would get their money from investment advisors. Investment advisors handled the individual investors. And, of course, everyone in the chain took their piece of the investment pie. Finally, the individual investor would get their return on their investment. The problem was… there wasn’t much left.

Well now all of that is gone… or at least starting to fade away. Qualified investors can communicate and invest directly with investment sponsors through Telos. No more middlemen. No more management fees.

What are the benefits of an LLC?”

The limited liability company (LLC) is a relatively new form of doing business in the United States (in 1988 all 50 states enacted LLC laws). The best way to describe an LLC is to explain what it is not. An LLC is not a corporation, a partnership nor is it a sole proprietorship The LLC is a hybrid that combines the characteristics of a corporate structure and a partnership structure. It is a separate legal entity like a corporation but it has entitlement to be treated as a partnership for tax purposes and therefore carries with it certain tax benefits for the investors.

The owners and investors are called members and can be virtually any entity including individuals (domestic or foreign), corporations, other LLCs, trusts, pension plans etc. Unlike corporate stocks and shares, members purchase Membership Units. Typically, Members who hold the majority of the voting class membership units maintain controlling management of the LLC as specified in the LLC operating agreement. The primary advantage of an LLC is limiting the liability of its members. Unless personally guaranteed, members are not personally liable for the debts and obligations of the LLC. Additionally, “pass-through” or “flow-through” taxation is available, meaning that (generally speaking) the earnings of an LLC are not subject to double taxation unlike that of a “standard” corporation. However, they are treated like the earnings from partnerships, sole proprietorships and S corporations with an added benefit for all of its members. There is greater flexibility in structuring the LLC than is ordinarily the case with a corporation, including the ability to divide ownership and voting rights in unconventional ways while still enjoying the benefits of “pass-through” taxation.