Residential Fund Structure
How is the fund structured
There will be three investment classes:
- Foundation Investment- This investment class will be made up of principle investors that must invest a minimum of 50,000 in general funds and will have first access to all Class A individual fund investments. This class will receive a spot on the BOD for Blue Ridge
- Tier B Investment- This class must invest a 25,000 investment into the general fund and will receive all second rights on individual fund opportunities.
- Equity Investors- This class must invest 10,000 dollars into the general fund and will have third rights on any investment opportunity. They are also eligible for equity awards based on labor contribution designated by the Management Board and BOD.
How Do Fund Proceeds Work
The General Fund will be in place for strictly all pre-sale activities and admin functions
- Upon purchase this fund will be paid back with a built in purchase price of all relative activities.
- If the subject property is not purchased then this amount will go into a general overhead cost category. (This category will be replenished on a percentage of property sale).
- Each property, after clearing due diligence and qualifying as a blue ridge subject, property will be presented to the classes of investors. Upon the stated order they will receive first right of investment based upon investment status. Once the fund is full it will be closed and set to operation (please refer to fund operation on following slide).
- Upon successful sale of property the following formula will be applied to the proceeds of the fund.
- Sale Price- Commissions-Taxes-Acquisition Price-Renovation Cost-(Unfunded General Fund Total *.05)- Distributed Equity- REIT Management Set Aside = Dividable Proceeds*Fund Ownership Percentage