Full due diligence · Step 6 of 10 · 10 min

Understand the terms, fees and risks

How SIG26 is structured, how long your money is invested, how distributions work, every way Sage is paid, and the main risks.

How your investment is structured

YouBuy units in SIG26 at $1.99 per unit

SIG26, LLCThe fund you invest in. Its only asset is its stake in Sage Investment Group.

Sage Investment Group LLCSIG26 expects to own about 22%, alongside earlier funds SIG20 through SIG25

32 project companiesOne per property, across six states, plus future acquisitions

Sage plans to raise future funds the same way. Each one adds capital for new projects and reduces SIG26’s percentage ownership. Ridgecrest Management, owned by Ross Hubbard, Emily Hubbard and Ryan Sudeck, manages every level.

How long your money is invested

Plan on a long hold. The PPM describes this as a long-term commitment that could last ten years or more, and you have no right to redeem before then.

The Manager plans to offer a redemption option after about five years. Whether and when it does is at its discretion, redemptions run through a 270-day window, and they can be limited or delayed if the fund can’t sell or borrow to pay them. There’s no market for the units. If you need your money back by a specific date, this isn’t the right investment.

How distributions work

Distributions come from the cash flow of our stabilized properties, after debt service, fees, expenses and reserves. They rise and fall with how those properties perform, and the Manager sets the amount and timing each period. They aren’t guaranteed.

Distributions have ranged from about 11% of the unit price in 2021 to under 2% in 2025, and we paused the Q1 2026 distribution. We expect them to resume for the Q4 2026 period, though that isn’t guaranteed. The year-by-year history is in the performance step.

Every way Sage is paid

4%Due diligence fee on each project’s total cost (purchase price plus construction and development), paid to the Manager at closing

~2%Asset management fee on each project’s monthly rent revenue, paid quarterly and set project by project

30%Profits interest in each project, paid to the Manager only after the project has returned 100% of the capital invested in it

1.5–6%Broker or consulting fee on a project’s purchase or sale price, typically paid to an entity owned by Ross Hubbard, a licensed Washington broker

At costReimbursement of pre-acquisition costs, lender liquidity requirements, and fund organization and offering expenses

If usedPlacement fees to broker-dealers or finders, paid as a fund expense. Sage doesn’t pay investors for referrals.

Fees and the profits interest are paid before distributions reach SIG26. Summary only: the PPM and Operating Agreement control, and the Manager can set different terms project by project.

The main risks

You could lose some or all of your investment.

Your money is illiquid for a long time, with no guaranteed exit.

Distributions depend on property cash flow and can be reduced or paused.

The Manager sets the unit price and has broad discretion over valuation, which may differ from what a third party would pay.

Property loans are repaid before equity, and higher interest rates reduce cash flow. Future preferred or new capital can also rank ahead of SIG26.

Conversions can run over budget or lease up more slowly than planned.

The Manager controls every level of the structure, earns fees from it and makes decisions where its interests can differ from yours.

These are highlights. The PPM’s Risk Factors and Conflicts of Interest sections run about 15 pages and are worth reading in full.

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