Frequently Asked Questions

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The Platform

What is the TribeVest Platform?

TribeVest is a FinTech startup located in Columbus, OH. Founded in 2016. TribeVest is a platform that helps to organize and facilitate small group investing and/or experiences for like-minded individuals.  TribeVest does not sell any investments, we facilitate dream investments for our members. Acting as a neutral 3rd party, TribeVest makes group investing fun and unemotional by taking the group on an intentional journey. We take the ambiguity out of forming an investment group by introducing the correct topics and questions at the right time to keep your tribe aligned, keep your tribe moving forward, and to keep you informed.

Why would my group of friends consider using TribeVest versus doing it on our own?

TribeVest puts the tools in place that help a group of people that know, like and trust one another to:

  • Align: you might be friends but are you good business partners? Do you share the same objectives and mindset towards your financial goals? The TribeAlign process will keep your group on the same page with continual forward progress. 
  • Save: help the group determine how much, how often and for how long they would like to save in order to make a financial transaction, like a down payment on real estate. It is important to mention that during the saving period all members have their own individual FDIC insured savings account. The account is created by TribeVest on behalf of the customer. If at any point during the saving process a member decides to leave the group all money is returned to the member without penalty. The money is not commingled with any other members’ money.
  • Protect: form the proper entity (LLC, non-profit, etc.) and business banking accounts to protect the individual members and allow for business transactions to take place.

Transact: use your business banking account and accumulated capital to purchase your dream investments

Terminology

What is a tribe?

A tribe is a group of like-minded people who have agreed to work towards a common goal. A tribe will function much like an executive team within a business where individual members have different roles within the tribe. Each member will participate in the decision making process as well as learn and grow with their tribe.

What is the “saving period”?

This is the period of time your tribe has agreed to work together to fund your business. Most groups agree to at least 24-months. This is your capital creation time. It is likely the saving period will continue beyond your first transaction.

  • Align: you might be friends but are you good business partners? Do you share the same objectives and mindset towards your financial goals? The TribeAlign process will keep your group on the same page with continual forward progress. 
  • Save: help the group determine how much, how often and for how long they would like to save in order to make a financial transaction, like a down payment on real estate. It is important to mention that during the saving period all members have their own individual FDIC insured savings account. The account is created by TribeVest on behalf of the customer. If at any point during the saving process a member decides to leave the group all money is returned to the member without penalty. The money is not commingled with any other members’ money.
  • Protect: form the proper entity (LLC, non-profit, etc.) and business banking accounts to protect the individual members and allow for business transactions to take place.

Transact: use your business banking account and accumulated capital to purchase your dream investments

What are the “Rules for Saving?”

These are the guidelines you and your tribe discuss and agree to that govern the saving period. These rules determine the following:

  • How much? On a monthly basis, how much money will be automatically withdrawn from your personal account and moved to your TribeVest savings account. 
  • How long? The length of time for the saving period. How many months will transactions automatically happen before our tribe needs to decide whether you continue to save in parallel.
  • Start Date. The date transactions will begin to take place and the day of the month that subsequent withdrawals will take place. For example: if your tribe has a start date of 7/1/19, the first withdrawal will take place on July 1st, 2019 with all subsequent monthly withdrawals taking place on the 1st of the month or as close to the 1st as possible taking into account weekends and holidays. 

Voting Threshold. The minimum percentage of tribe members that need to agree to a proposed topic/action for that topic/action to be considered approved by the tribe. For example: when it comes time to make your first transaction, like deciding on your first property to purchase, the numbers of members that will need to agree on the property for it to be an official affirmative group decision.

Savings and Banking Accounts

Where does my money go once it is pulled from my personal bank account?

TribeVest partners with industry leading financial institutions to make certain your money is safe and secure.

Your money is being saved with MVB Bank, a $1.7B national bank and a FDIC member bank publicly traded on the NASDAQ stock exchange.   MVB Financial features multiple subsidiaries and affiliated businesses, including MVB Bank, Inc. (“MVB Bank”), and MVB Mortgage. The Company’s principal executive offices are located in Fairmont, WV.

Our partner for securely linking your bank account is Plaid. Plaid works with over 9,600 financial institutions and is the leader in technical infrastructure and intelligent tools that give everyone the ability to simply and securely link to and verify their bank account. Plaid is a venture-backed company most recently valued at over $2.65 Billion.

Do my tribe members have access to my money while we are saving towards our goal?

During the saving period all members have their own individual FDIC insured savings account. The account is created by TribeVest on your behalf. If you decide to leave the group at any point during the saving period all money is returned to your personal account without penalty. The money is not commingled with any other members’ money.

  • Align: you might be friends but are you good business partners? Do you share the same objectives and mindset towards your financial goals? The TribeAlign process will keep your group on the same page with continual forward progress. 
  • Save: help the group determine how much, how often and for how long they would like to save in order to make a financial transaction, like a down payment on real estate. It is important to mention that during the saving period all members have their own individual FDIC insured savings account. The account is created by TribeVest on behalf of the customer. If at any point during the saving process a member decides to leave the group all money is returned to the member without penalty. The money is not commingled with any other members’ money.
  • Protect: form the proper entity (LLC, non-profit, etc.) and business banking accounts to protect the individual members and allow for business transactions to take place.

Transact: use your business banking account and accumulated capital to purchase your dream investments

When will I see TribeVest withdrawals in my personal account?

Transactions related to the ACH withdrawal from your personal account will be recorded in your personal account within one business day of your tribe’s designated withdrawal date. (Holidays and weekends could add up to three business days)

  • How much? On a monthly basis, how much money will be automatically withdrawn from your personal account and moved to your TribeVest savings account. 
  • How long? The length of time for the saving period. How many months will transactions automatically happen before our tribe needs to decide whether you continue to save in parallel.
  • Start Date. The date transactions will begin to take place and the day of the month that subsequent withdrawals will take place. For example: if your tribe has a start date of 7/1/19, the first withdrawal will take place on July 1st, 2019 with all subsequent monthly withdrawals taking place on the 1st of the month or as close to the 1st as possible taking into account weekends and holidays. 

Voting Threshold. The minimum percentage of tribe members that need to agree to a proposed topic/action for that topic/action to be considered approved by the tribe. For example: when it comes time to make your first transaction, like deciding on your first property to purchase, the numbers of members that will need to agree on the property for it to be an official affirmative group decision.

When will the TribeVest platform reflect updated individual transactions and tribe collective balances?

Deposits to your TribeVest savings account will be reflected on the TribeVest platform within your TribeView Dashboard five business days or less after the withdrawal from your personal account. The delay is due to required banking regulatory compliance. (Holidays and weekends could add up to three business days)

Should I be concerned about saving my money in a low interest savings account?

This is absolutely a legitimate consideration but do not put too much emphasis on the short term. Keep your eye on the prize.

The big picture and the real reason for creating a tribe is to invest in real estate and/or other alternative investments that generate 20%+ returns. Not starting to save now through the TribeVest platform because you might lose $140 over two years may well stop you from earning tens of thousands in the long run. Short term pain for long term gain. In my opinion, the long-term benefit of setting aside automatic savings every month at a low interest rate far outweighs the short-term loss.

I did a little analysis to see the actual variance between 1% and 3% interest in an account over 1-year, 2-years, 3-years and 4-years. See attached image. There is real money there but I think the big picture is extremely important to consider.

interest table faq

The intention of saving through the TribeVest platform is to segregate the money and save in parallel with the rest of your tribe. There are a few benefits:

  • Power of the team. Ability to see collective savings as it builds on the platform. Promotes camaraderie within the group and generates discussion on next steps.
  • Automates Next Steps. Saving through the platform allows for easy conversion to joint account when it comes time to pool the money to begin transactions and formation of LLC/business bank account.

 

Capital Growth and Protection. Isolates money to remove temptation to use funds for other purchases. Enforces the discipline needed to start the capital creation process.

Company Formation (LLC)

What is an LLC?

An LLC (Limited Liability Company) is a type of business formation that allows its owners (also called Members) to have limited liability protection. This type of protection eliminates a member’s personal risk in the event a creditor attempts to pursue collection for the business’s debts. Once your LLC is considered “Active” by your state, you can then go ahead and create your LLC Operating Agreement.

What are the benefits of forming an LLC?

Adding/Removing Members – If a new member is added or an existing member is removed from the company, which means the LLC Operating Agreement would need to be amended, all existing members must approve with the written consent of that new member or agree to the terms of the exit of an existing member. This also applies to an increase or decrease in ownership from one member to the next.

Distribution of Profits – It’s very easy to dispense profits to members within the LLC as each member is responsible for paying taxes on the income they make from the business.

Flexibility – When setting up the structure of your LLC Operating Agreement, you can keep it simple or add as many laws within the company as you see fit. An LLC typically has much less paperwork and meeting requirements than most other formation types.

Pass-through Taxation – The business itself is not taxed, instead each member pays their share of taxes for the money made or lost based on personal income.

Protection – Members of the LLC are not personally liable or responsible for business debts and liabilities. The protection an LLC provides to its members is the primary reasons LLCs are formed over other formation types.

Should I incorporate my LLC in the state in which I live?

The majority of companies created in America are local small businesses so naturally it only makes sense to start an LLC in the business’s residing state. You may have heard of a few select states such as Delaware, Nevada, and Wyoming that are favorable due to favorable tax laws and business infrastructures. For example – in the State of Delaware, members of an LLC can be kept secret from the public while only having the Registered Agent’s name being available on public record.

Businesses that serve a local demographic should register within their state. Cyber or Internet type businesses, where the location of their business has no importance, can research the state that fits their business model best. If you do decide to incorporate an LLC in a different state from which you live, you will need to find a Registered Agent that resides in the same state where you incorporate your business. This is not a difficult task as there are many professional services that offer Registered Agents for hire at a reasonable cost. So, now you have selected a state, let’s start considering a name for your LLC.

  • How much? On a monthly basis, how much money will be automatically withdrawn from your personal account and moved to your TribeVest savings account. 
  • How long? The length of time for the saving period. How many months will transactions automatically happen before our tribe needs to decide whether you continue to save in parallel.
  • Start Date. The date transactions will begin to take place and the day of the month that subsequent withdrawals will take place. For example: if your tribe has a start date of 7/1/19, the first withdrawal will take place on July 1st, 2019 with all subsequent monthly withdrawals taking place on the 1st of the month or as close to the 1st as possible taking into account weekends and holidays. 

Voting Threshold. The minimum percentage of tribe members that need to agree to a proposed topic/action for that topic/action to be considered approved by the tribe. For example: when it comes time to make your first transaction, like deciding on your first property to purchase, the numbers of members that will need to agree on the property for it to be an official affirmative group decision.

What is a registered agent and do I need one for my LLC?

A Registered Agent is a person either affiliated with the LLC, such as a member, or a third-party who acts on behalf of the LLC to collect all legal notices from the State or other important notices such as a lawsuit. With regards to Single-Member LLCs, some States allow the single member to also act as the registered agent and other states require that a third-party be the registered agent.

The registered agent must have a physical address in the State in which the company is located. The address can not be a P.O. Box. Your State will ask you for the name and address of your registered agent when you submit the Articles of Organization. You will also want to list the registered agent on your LLC Operating Agreement.

Please note: If the mailing address of the registered agent changes, you must notify and file the respective paperwork with the State of the change. Failure to do so could result in the dissolution of your company.

Do I need an operating agreement for my LLC?

The easy answer is, yes! An operating agreement is a key document used by LLCs because it outlines the business’ financial and functional decisions including rules, regulations and provisions. The purpose of the document is to govern the internal operations of the business in a way that suits the specific needs of the business owners. Once the document is signed by the members of the limited liability company, it acts as an official contract binding them to its terms.

What are the benefits of having an operating agreement for my LLC?

To protect the business’ limited liability status: Operating agreements give members protection from personal liability to the LLC. Without this specific formality, your LLC can closely resemble a sole proprietorship or partnership, jeopardizing your personal liability. 

To clarify verbal agreements: Even if members have orally agreed to certain terms, misunderstanding or miscommunication can take place. It is always best to have the operational conditions and other business arrangements handled in writing so they can be referred to in the event of any conflict.

To protect your agreement in the eyes of your state: State default rules govern LLCs without an official operating agreement. This means that each state outlines default rules that apply to businesses that do not sign operating agreements. Because the state default rules are so general, it is not advisable to rely on a governing body state to manage your agreement.

Want To Learn More?

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