Our Equity Partners play a very important role in our business, and what we want to achieve.
Who are they?… They are individuals, business owners, families, that KNOW real estate is the vehicle, that will help them achieve their financial goals. They do not want to actively invest in real estate. They are ok with investing alongside a trusted team of active investors, and taking the backseat, while their equity grows. They do not want to deal with the headaches of the investment.
What is their role? There role is to simply supply the capital needed, to close and stabilize the asset. They are called limited partners for a reason. Sounds simple right, however, we do not take that lightly. Although its one task, it is hard-earned capital, and my team and I take that very seriously.
How much capital does this one partner need to have, in order to purchase an asset with us? The minimum an individual partner needs to invest, is $50,000. Where it comes from, does not matter (Cash, Savings, SDIRA, 401K, Roth IRA).
When do they wire the funds? We will first identify the asset we are targeting, we will then submit an offer. If the offer is accepted, we will open up the offering to our investors, which is when we will start receiving the capital for the property.
What will it be used for? We will use all the equity raised for a number of things… 1. Any fees to get the deal closed (DD Fees, Closing Costs, Guarantor Fees, Acquisition Fees) 2. Operating costs/savings 3. Capital Improvements (Roof, Plumbing, Electric, Unit Renovations, etc.)
When do they get their capital back? The initial investment ($50,000), will be returned upon sale of the property. However, depending on the structure of the deal, our equity partners will receive distributions from the cashflow of the property, throughout the hold period.
If you are interested in learning how you can get involved with us, visit https://valleyislecapital.com/invest
