What is syndication?
Syndication is the pooling of investor money where the investor is typically a limited partner and the general partner, or active partner, puts the deal together and manages the business plan to provide a return for the benefit of all investors.
What is a Private Placement Memorandum (PPM)?
The Private Placement Memorandum is required by the SEC and describes the offering, risks, includes the partnership agreement, investment summary and subscription agreement. It is a lengthy legal document prepared by a syndication attorney. The subscription agreement section includes basic information as to amounts being purchased and percent ownership. The risk section highlights just about every possible risk that could happen.
What are your return projections and how are they calculated?
Annual returns are targeted at an average IRR in the 25%+ range over the hold period. In development projects, a large part of the investor returns come in the year of the sale. Actual returns vary on a project by project basis. See the Private Placement Memorandum (PPM) for specific project investment risks.
When will I get my original investment back and what is the expected hold period?
We model each investment with a 3-5 year hold period. This provides ample time to execute our development plans and stabilize projects while maintaining flexibility for an opportunistic sale or exit. Some investor principal could be returned as early as year 3 from capital events, but we may hold projects longer depending on market conditions
What is the minimum investment?
Minimums are set at $100,000 with preference given to investors with more to invest. Some cases may be considered for lower minimums, ask your LandVest Capital investor relations associate for more details.
When and how will I get paid?
Investor distributions are paid at capital events (cashflow or sales) and vary from project to project. Investors are paid via ACH or Wire through our custom investment portal.
How will you communicate with me?
We’ll provide quarterly email updates and periodic videos on project progress including details on market conditions, project performance, timeline expectations, and other project-specific updates. You will also receive a K-1 statement from us each year for your tax filings.
What are the tax implications?
Development syndications are very tax efficient. As a limited partner, your distributions will typically be taxed at a lower rate than standard income, as partnership gains are typically treated as long-term capital gains. Tax situations will vary case-by-case and depreciation capabilities will vary project-by-project.
Do you invest in your own deals?
Yes – we invest alongside our investors in every single deal. Our model is to make money when our investors make money, so we are incentivized for efficient project execution.
Do you perform sensitivity analysis?
Yes – we model different scenarios based on several market and project-based assumptions (exit cap rate, starting rents, etc.) Sensitivity models are available upon request. Ask your LandVest Capital investor relations associate for more details.
Can I invest using a retirement account (IRA or solo IRA)?
Yes – You can invest in our projects and fund with certain retirement accounts. Our custom investment platform makes this very straightforward. Ask your LandVest Capital investor relations associate for more details on the process if you have any additional questions.
What are the general partner fees?
LandVest Capital charges a flat 2% asset management fee annually. Additional details about this fee are described in the private placement memorandum (PPM). Though this fee is typically utilized for administration related expenses with your investment. We at LandVest Capital aim to make money with our investors on profits, not from fees of managing your capital