Private Equity Limited Partnerships or LLCs of Targeted Real Estate Assets
LeRu Investments LLC offers qualified investors an opportunity to diversify a portion of their assets into managed real estate investments. This is an investment strategy which has historically demonstrated attractive returns through capital preservation, cash distributions and capital appreciation. All entities will engage in the business of acquiring, improving, operating and disposing of multifamily real estate assets. Investors involved serve in the capacity of non-managing members.
Capital Structure
Investments will be typically financed with 70% – 80% loans, the remainder of the capital being provided by Members’ capital.
Partnership Organization
Each acquisition will be structured as its own individual Limited Partnership or Limited Liability Company. This structure enables us to protect individual assets. LeRu Investments will act as the Managing Member in each partnership.
Distributions
LeRu Investments LLC will distribute available cashflow income either monthly or quarterly.
LeRu Investments LLC compensation is based upon profits over and above the return of LLC Member capital plus a rate of return. Any additional proceeds would be split with an agreed upon percentage going to the Managing Member and the remainder split evenly among all Members.
Investor Relations
In order to maintain managed real estate investments, conference Calls are held typically each quarter or monthly, if needed, to provide an update to the Members on the performance of the real estate asset.
Management Updates:
LeRu Investments LLC frequently follows up with on-site and off-site property management personnel and forwards a report to the Members on their activities along with current occupancy rates for each property. These updates include a weekly management traffic report, monthly updated tenant ledgers and delinquent rent report.
Annually, or as needed, LeRu Investments LLC performs an audit of site operations, management and the financial reporting, and flows down these reports to the Members, noting any concerns or recommendations for consideration.
Monthly Financial Reports:
A report on financial results, including operating activity, reserve balances, and amounts available for distribution to the Members is made each month.
Annual Report for Tax Purposes:
Members will receive annual reports that contain all information necessary for the Members to complete their K-1.
Self-Directed IRA: Building Wealth In Commercial Real Estate
Background:
There’s an estimated three trillion dollars invested in IRAs in the U.S. managed by financial institutions; however, only 1% of Americans currently have self-directed retirement accounts, accounting for twelve billion in assets.
The majority of investors associate IRA investing with stocks, bonds and mutual funds. Most are unaware that their accounts can be directed to invest in real estate and the IRS allows you to invest in real estate tax free. Many accountants do not understand how to work with these accounts, mistakenly informing their clients that it is not possible to use a self-directed investment account to purchase real estate.
Traditional vs. Self-Directed:
Traditional financial advisors and stock brokers prefer to control as much of their clients’ portfolios as possible. Financial advisors do not earn commissions on real estate investments through self-directed retirement accounts; therefore, they have a disincentive to recommend investing in real estate. This could be why most investors are not educated about this important Self-Directing option.
The first hurdle is becoming aware that this investing option exists and knowing how to establish one. Equity Trust, Udirect, Sterling Trust, PENSCO Trust and Entrust Group are some of the larger custodians of self-directed retirement accounts.
The second hurdle is having access to opportunities that qualify.
Keep in mind that an individual’s credit cannot be used if the real estate being purchased in the self-directed retirement account requires that the individual borrow. This is why many investors are opting to invest passively in group vehicles such as a Limited Partnership or LLC and, as well as Trust Deeds loaned to sponsors of commercial real estate investments.
Building Your Fortune Now:
Americans have become nervous about keeping their nest eggs in the volatile stock market environment, particularly when there is so little control available.
Savvy investors are avoiding the risky stock market and moving towards proven “brick and mortar” to buy and sell real estate investments using their self-directed retirement accounts, and are building fortunes doing so.
We look forward to helping you take this important step toward achieving your financial goals.