Property Developments

Objective: Purchase infill raw land in the path of growth that has not yet been entitled for development. Hold the land until demand causes prices to increase thereby transforming the raw land into a development opportunity. Leverage the capital of stakeholders to secure land for future development.

Timeline: Hold for up to two years. Related expenses: In addition to the cost of the land, managing the land and paying property taxes. These expenses may be offset by possible usage rents or other short-term revenue opportunities.

Overcoming Potential Risks: By purchasing infill raw land, public policy changes similar to urban growth boundaries, endangered species, development moratoriums, or other anti-development actions will less likely affect the property and future development. Rewards: Land appreciation and site of future development.

Investment Type: Phase 1 Acquisitions are perfectly positioned to be a Tenant in Common property. Tenant in Common property provides for undivided fractionalized ownership and can accommodate up to 35 separate owners on one property. There are many benefits to purchasing real estate through a Tenant in Common. Individuals will own an undivided fractional interest in the entire property and share in their portion of the net income, tax shelters, and growth. Further, TIC owners will receive a separate deed and title insurance for their percentage interest in the property and have the same rights as a single owner. Investor Profile: Individuals who want a secure investment in real estate but do not want hands-on property management. This type of investment into real estate is compliant with IRS 1031 tax-deferred exchange requirements and can be closed in a relatively short time frame.

Investment Opportunity: Highly secure investments providing returns of up to eight (8%) CAP