Collective Ownership of Real Estate

Contact An Agent

 

HANDSHAKE

 

At Open Source Capital we provide a platform for friends and family to pool their capital in order to own and operate individual properties.

 

Our clients tend to be people who have some background and experience in real estate and have the basic skills and abilities to make well-educated decisions. Some family members like managing real estate while others don’t want or need “total control”, but still seek some involvement in selecting their investments. We believe that Collective Ownership affords them more safety and better outcomes.

 

Open Source Capital provides a Collective Ownership Program for Accredited Investors.

 

Collective Asset Ownership is both practical and effortless, allowing all owners to enjoy the benefits of owning quality real estate, while relieving some of the owners from the traditional worries of maintaining and operating an income producing property.

 

Collective Ownership Structure

 

If you want the most from your real estate investment dollars, collective asset ownership may be the right choice.

Here’s why:

  • If you decide to purchase an income producing property, you become an equity owner of your own LLC. Your LLC will include other selected investors that will own the project with you.
  • Your LLC will purchase the project with cash, plus a first mortgage loan up to 65% of the purchase price, giving your LLC a low non-recourse LTV mortgage and legally shared ownership of the assets of the LLC.
  • Your capital contribution will be significantly lower than what you would have had to put down if you were just purchasing the property yourself.
  • Your investment goes directly in to the property that you, and your fellow LLC partners own.
  • At the end of a pre-determined investment period, the property will be sold and the net sales proceeds will be used to first pay off the balance of the mortgage and then your capital investment, with 90% of the remaining sales proceed being, shared among you and the other members of your LLC, the remaining 10% is paid to Open Source Capital as the Special Member of the LLC.

What makes collective ownership a better choice than a typical fractional ownership?

  • There is no mark-up on the purchase price of the real estate. Fractional ownership opportunities are typically created by developers who mark up the purchase price to make a profit on the original sale, leaving it very difficult to resell a fractional ownership. With Open Source Capital, we are buying at or below market value, so when we resell the property at fair market, the owners have a greater potential to recoup their original investment plus appreciation.

Other expected benefits?

  • By expanding opportunities for businesses and small investors alike, Open Source Capital, LLC serves as a catalyst for business expansion and job growth, while providing investor’s an easy way to invest in local real estate.

Our goal is to create a lasting relationship with project sponsors and investors, in part by:

  • Emphasizing a fundamental alignment of interest with all stakeholders
  • Providing for flexibility to react to circumstances as they occur
  • Providing management and advisory services to support successful projects

 

Information included in this presentation may contain forward looking information that is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from expected results.  This information is not an offer to sell or a solicitation of an offer to buy any securities. Any such offer will be made only to qualified investors by way of written offering documents meeting the requirements of the Securities Act of 1933, as amended.