Investments are structured as LLCs with investors owning a share of the LLC that holds title to the investment property so investors have a direct and fractional ownership of a property.
Investors are able to own a share of several properties instead of a single property which helps diversify risk and returns over a larger portfolio.
LRP serves as the guarantor for financings. Investors as limited partners do not incur any risk beyond their initial investment.
LRP handles asset management and investor reporting while property management is performed by professional real estate property managers. LRP and its advisors also prepare tax materials for its properties. Investors receive their distributions and K-1 forms with all tax and accounting completed.
Projects are able to reduce taxable income with depreciation and interest expense. Investors may receive distributions that exceed taxable income and in some cases properties may, despite healthy cash flow, generate taxable losses that can be used to offset gains on other investments.
LRP co-invests alongside its investors and its investment contributions receive the same return as all investors. Additionally, LRP’s main financial incentive is a promoted interest (or carry) that only applies after investors have achieved certain defined return thresholds.
LRP typically provides investors with semi-annual updates that detail property operations and financial performance. We appreciate our investors’ feedback and are always available to answer any questions or concerns.
LRP is able to perform many financial and legal functions that are typically performed by third parties. This keeps costs down as a benefit to investors.