Structure of the Offering
– Each of their investments into one partnership unit is $24,700.
– The year of the investment, the investor receives a tax deduction of approximately $12,000, which is used on their personal income tax to reduce their taxable income.
– The majority of tenants in the property are already in place, so the rental income helps pay down the mortgage, with a little left over every year.
– The mortgage on the property typically pays out in about 14 years, with approximately $400 left over for investors each year during that time. But as mentioned above, the mortgage payout starts the next phase of the investment of income production.
– If all goes according to their projections, and based on our experience with other investments – in their group, each of the $24,700 investment units is targeted to produce approximately $5,000 of net rental revenue per unit, per year, and the potential for continued growth year after year.
– They still operate some of the initial commercial properties as income producers, so a structured exit plan is offset by the ongoing income stream.