Our Early Funding Investment Incentive

Investing in private-market real estate alongside a GP too often means you have a waiting period before the deal closes and when you can start putting your dollars to work.

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How your capital is treated leading up to closing will vary from manager to manager. Lightstone DIRECT provides individual investors something rare — a yield on invested capital, well in excess of a money-market rate of return, before the official close date of the deal. This means your capital is not sitting idle — in fact, it is earning more than the “opportunity cost” rate of return that you might find in a money market account. 

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As of 11/25/25, Lightstone DIRECT offers an Investment Incentive for those who invest before the closing date: an annualized interest rate of 5.75% on your funded capital. By comparison, the most generous money market accounts will yield only around 4.25%, as of 12/3/25. 

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Lightstone DIRECT provides approximately 1.5% better economics. Some details on this benefit: 

• Only available to investors who fund at least 14 days prior to closing the Series.
• Accruing, but not compounding, and measured daily until closing of the Series.
• Paid out within one month after the Series closing date.

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Let’s take an example. If you invest $100,000 (the typical minimum for a Lightstone DIRECT offering) 60 days before the Series closing date, you would accrue $945, of which would be paid out within one month after the Series closing date.

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This funding incentive should give investors peace of mind. You can fund on your timeline without worrying that a) the deal could fill up before you have a chance to finalize your investment, or b) your capital may sit idle for a period of time before the investment closes.  

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Early-Funding Interest Incentive FAQs

Will the rate of return on the incentive yield change over time?

The investment incentive yield is established at the outset of each deal and will not change until all interest is paid out. This incentive, however, can change for each subsequent offering. 

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How will I receive interest earned from the incentive yield?

The incentive yield is accrued leading up to closing of the Series. This accrued balance will be sent via ACH to your designated account.

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When does the clock start for earning this interest?

You will begin earning interest as soon as your subscription documents are signed, your investment amount has been received, and Lightstone DIRECT determines you are an approved investor in the Series. 

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When does the clock stop for earning this interest?

On the date of the Series closing date. This close date will be stated explicitly in the subscription docs of each investment. This investment incentive is no applicable to individuals who invest after the Series closing date.