Looking for a real estate investment opportunity that will allow you to enjoy the benefit of working with a large real estate company? The Real Estate Entrepreneurship Partnership track allows you to take part in a large real estate project that yields high average returns (IRR) each year.
In the Real Estate Partnership track, we offer you the opportunity to be a partner in a project worth over $10 million, whether it is an existing property or a new construction project, and enjoy the joint income. You can enjoy all the benefits of large-scale investment, such as a low-cost purchase, attractive bank financing, cheap improvement costs, optimal risk diversification, and a high and stable long-term return on your investment. With us, every investor is, first and foremost, a partner.
This type of investment enables a private investor to step into the shoes of an entrepreneur and invest as a partner in a large real estate project.
As an entrepreneurial company, we always invest 10% of the total equity required to carry out a project. The level of risk for the investor is the same as our level of risk and significantly lower than an independent investment in small assets.
Thanks to the rich experience and economic power of our company, we purchase properties at about 50% of their market price and make significant improvements that increase their value significantly.
The improvements facilitate a significant increase in the value of the property allowing for attractive bank financing to return capital to the investor at the end of the improvement process.
After the full return of equity, the investor remains a partner in the project and continues to receive their share of the project profits on a quarterly basis through a deposit to the investor's bank account until the property is sold ("infinite return").
When all of the investment objectives have been achieved, the property will be sold and the sale profits will be distributed to investors and the entrepreneur.
Since the investment is made against the issuance of shares in a partnership that owns the property, the investor secures direct ownership of the project and the property.
The process of registering ownership of the property is carried out by a lawyer and is insured through title insurance.
This investment structure allows a private investor to enjoy the rich experience and financial resilience of a large entrepreneurial company and to partner in the success of the company.
Investing in a multi-income project, as opposed to purchasing a single asset, allows for minimization and diversification of risk and a guaranteed return, even if some of the units will not yield a return for some time.
Potential opportunity to employ financial leverage as part of a large, active, and stable body, which can enhance future returns.
The entire process of planning, construction, and improvement is done under one roof, which means huge cost savings.
Relatively low entry threshold.
High preferred annual returns.
High potential average annual return (IRR).
No incidental expenses (e.g., attorney, purchase tax, brokerage fee, maintenance).
The establishment and ownership of a U.S. company is not required.
Great savings in time and energy on the part of the investor.
Consulting and planning: In an initial meeting, the investor is presented with an investment opportunity in the project. The investor chooses the amount of the investment, usually starting at $100,000.
Signing an agreement: An investment agreement is signed between the investor and the company. The agreement is a simple, uniform, and legible agreement that has been utilized with hundreds of investors in the past.
Signing documents: In conjunction with the signing of the agreement, a number of additional documents will be provided based on the investor's tax residency (e.g., W-8 BEN, W-8 ECI, W-9).
Transfer of the investment: The amount of the investment is transferred by the investor to a trust account until it is subsequently transferred to the entrepreneur. The transfer is made via wire directly from the investor's bank account to the trust account.
Registration of ownership: In conjunction with the transfer of the investment amount, shares in the company are transferred in the name of the investor, so that the investor becomes a full partner in the project in accordance with the amount of his or her investment. The registration is done legally by the Florida State Registrar of Companies.
Construction and improvement: Depending on the nature of the project, our contracting arm implements the construction and improvement of the project from the planning stage to full occupancy and its transformation into a profitable property.
Return on capital: At the end of the improvement process and when full occupancy is achieved, the borrower works to obtain bank financing at attractive terms in favor of the full return of equity back to the investor. All income the investor receives from then on basically amounts to an "infinite return" without any risk.
Management and maintenance: Our property management system administers the property on an ongoing basis, including collecting rent, paying expenses, making repairs, evacuating tenants if necessary, etc. Investors receive a monthly report detailing all income and expenses.
Quarterly cash flow: The investor's share of income is transferred quarterly to his or her bank account. The investor receives a quarterly report on the transfer of the funds.
Termination of the investment: The sale of the property is made by a joint decision and in accordance with the investment strategy. The profit is divvied up to the investor based on his or her percentage of ownership in the holding company.
When a new investment opportunity arises, we give priority to investors who have completed an investment with us in the past before reaching out to additional external sources, all in order to ensure as high and stable a flow as possible.
When considering an investment there are many issues that are important to understand. Investing in general, and investing in income-producing real estate in the US, is not a trivial matter. We've compiled some of the most common questions we encounter when we first meet our investors. If you have any further questions we invite you to click here to schedule an initial consultation without any obligation.
BSD Capital invests and shares ownership of the property with you.
BSD Capital believes in complete transparency with our investors so we provide all the information needed to analyze transactions before you enter into the transaction.
All of our assets are registered in the names of the investors or the companies they own. The registration is done legally with the help of a real estate lawyer (title company) who verifies that the property is free of debts and has no liens, penalties, or levies on it prior to the registration. BSD Capital provides a bank guarantee for the entire registration period.
In the "Partnership in Real Estate Entrepreneurship" track, where each investor owns a certain percentage of the holding company depending on the amount of his or her investment, the property is registered in the name of a joint holding company.
Its important to note that it is strictly forbidden to guarantee investors a fixed return for real estate investments in the US market. However, in the investment in real estate entrepreneurship track, the investors and BSD Capital are partners in the property, which gives us incentive to lead the property to the best performance and highest possible return.
There are no associated costs. All costs of purchase, improvement, operation, management, and sale apply to the entire project and not to the investor individually. All costs are taken into account in the business plan ahead of time and are embodied in the investment amount. However, when investing in real estate, there can be personal expenses for the investor, depending on the investment structure.
It is necessary to pay taxes in the US so its advisable to enlist the help of an accountant to submit the annual report in an orderly manner.
Our experience shows that when it comes to relatively small investments (up to a total of about $250,000), the expected tax rate on renting the property tends to be low. Investors in BSD Capital are invited to hire the services of professionals who serve the company and are well acquainted with the company's activities and relevant tax laws in order to receive the most competent answers.