Frequently Asked Questions (FAQ)

What are The BNIC Network LLC and the Closed Private Investment Network (CPIN)?

The BNIC Network LLC is a series LLC formed in Wyoming that has the ability to create an unlimited number of subsidiary LLCs. It is also the Parent Investment Club (PIC) of a network of investment clubs (we call them Series Investment Clubs: SIC) that we call the Closed Private Investment Network (CPIN).

  1. The PIC manages the CPIN. It is a non-voting member of each SIC as well as the Secretary of each SIC.
  2. The PIC manages Investment Opportunities that it presents to the members of the different SICs.

What is the cost to join one of your Series Investment Clubs (SIC)?

There is no cost, it’s 100% FREE to join! There are only 2 requirements to join and continue to be a member of a SIC:

  1. Support the vision of building a future where self-sufficiency and economic empowerment are accessible to everyone,
  2. Deposit at least $120/year or $10/month into your contribution account.

The PIC charges a 1% administrative fee on your profits for managing all administrative functions of the SIC as its Secretary. Your SIC retains 10% of your gross profits to donate to a 501(c)(3) organization of your choice and the PIC uses 9% of your gross profit to fund the Referral Distribution program. In the end, you wind up with your Net Profit being equal to 80% of your Gross Profit. This is part of the Cooperative Group Economics, where there is profit sharing, so everyone feels like they received their fair share, and we are contributing to the economic empowerment of our community.

Who can join an investment club?

  • Any U.S citizen who has a Social Security Number (SSN) and is at least 18 years old can join.
  • Any non-U.S. citizen who has an Individual Taxpayer Identification Number (ITIN) and is at least 18 years old can join.
  • Any legal US entity with a Tax Identification Number (TIN) can join.
  • An individual or legal US entity who (as evidenced by their behavior, actions, and words) supports the vision of building a future where self-sufficiency and economic empowerment are accessible to everyone.

Do I have to be a US citizen to join?

No. If you are joining as an individual, you must have a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) and be at least 18 years old. If you don’t meet those requirements, then you may want to join or create a legal US entity that has a Tax Identification Number: TIN (such as an Employer Identification Number issued by the IRS).

How does a legal US entity join or create an investment club?

An individual who is authorized to represent the legal US entity completes the online application and submits the following paperwork:

  • Articles of Incorporation/Organization
  • Operating Agreement/Bylaws
  • SS4 form from IRS or letter from the IRS with the tax ID on it

What’s the process to join or create an investment club?

  • The Parent Investment Club (PIC) reviews each application and makes the final decision on whether an application is approved or denied to join.
  • If approved, the applicant is notified and given instructions on how to complete the KYC (Know Your Customer) intake form, submit required documents, and complete the first three (3) educational modules if you are not an accredited investor.
  • Once you complete (and pass) the last educational module, you will be eligible to invest in Investment Opportunities presented by the PIC. You will receive information on how to submit your initial contribution to your investment club. You are also given the opportunity to:
  1. Join an existing investment club based on a referral to join that club (there’s a limit of 10 members per SIC).
  2. Create their own investment club if you have a legal US entity or at least four other family members, friends, or close business associates, or
  3. We will assign you to an investment club based on their preferences (location, gender, income, investment goals, etc.).

What is an Accredited Investor?

An accredited investor, as defined by the U.S. Securities and Exchange Commission (SEC), is an individual or entity permitted to engage in investment activities involving unregistered securities. This status is granted to those who meet specific financial criteria or possess certain professional credentials, ensuring they have the financial sophistication and capacity to handle the potential risks associated with such investments.

Criteria for Individuals:

  1. Income-Based Qualification:
    • An individual must have earned income exceeding $200,000 (or $300,000 combined with a spouse or spousal equivalent) in each of the past two years, with a reasonable expectation of maintaining the same income level in the current year. investor.gov
  2. Net Worth-Based Qualification:
    • An individual must have a net worth over $1 million, either alone or together with a spouse or spousal equivalent, excluding the value of the primary residence. investor.gov
  3. Professional Certifications:
    • Individuals holding certain professional certifications, designations, or credentials, such as Series 7, Series 65, or Series 82 licenses, are recognized as accredited investors. investor.gov

Criteria for Entities:

  1. Asset-Based Qualification:
    • Entities, including corporations, partnerships, limited liability companies, and trusts, with total assets exceeding $5 million, not formed specifically to acquire the securities offered, qualify as accredited investors. law.cornell.edu
  2. Ownership-Based Qualification:
    • Any entity in which all equity owners are accredited investors also qualifies. law.cornell.edu

These definitions are outlined in Rule 501 of Regulation D under the Securities Act of 1933. The SEC periodically updates these criteria to reflect current economic conditions and to include individuals with demonstrable financial expertise.

What is a Sophisticated Investor?

A sophisticated investor is an individual or entity possessing substantial financial knowledge, experience, and net worth, enabling them to evaluate and participate in complex investment opportunities. Unlike accredited investors, who must meet specific financial criteria, the definition of a sophisticated investor is more subjective and focuses on the investor’s ability to assess the merits and risks of prospective investments. Sophisticated investors must have sufficient knowledge and experience in financial and business matters to evaluate the investment’s risks and merits.

What type of Investment Opportunities are offered through the CPIN?

Investment opportunities presented by the PIC through the CPIN include whole and fractional ownership of real estate properties, equity investments in startups, and secured and unsecured notes.

Do I have to reinvest my capital gains distribution into a Qualified Opportunity Fund (QOF)?

No. You can do whatever you want with your capital gains distributions.

What can I do with the capital gains I receive from each deal?

You have four (4) choices:

  1. Withdraw the funds from your Distribution Account with the SIC and roll them over to a QOF within 180 days of the effective date of the capital gain, thereby deferring the payment of any capital gains tax until 2026 and receiving other favorable tax benefits according to how long you hold your investment position in the QOF.
  2. Withdraw the funds from your Distribution Account with the SIC and be prepared to pay the capital gains tax, if applicable (check with your tax accountant about your specific tax situation).
  3. Move the funds to your Contributions Account with your SIC and use the funds to participate in the Investment Opportunities presented by the PIC. Your capital gains will still be subject to capital gains tax as in option #2 above.
  4. Leave the funds in your Distribution Account with the SIC and don’t use them to participate in the investment opportunities presented by the PIC. Your capital gains will still be subject to capital gains tax as in option #2 above.