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A Limited Liability Company (LLC) is formed for each new investment.
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Investors own a share of the LLC in proportion to the amount they invest.
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Investment properties are then purchased by the LLC.
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Investors receive a return from the LLC by way of annual or semi annual distributions.
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Investors also receive a one time capital gain when the properies are sold.
The graphic below is a hypothitical example based on projects we have done in the last 5 years.
5 Year Share Appreciation
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40 - 50%
Annual Distribution
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8 - 10%
Purchasing Power
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$1,000,000
4 Shares of $50,000 each
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$200,000
C.K., LC
(focused on equity appreciation)
This LLC was formed to purchase an apartment building in Waterloo IA.. The initial $50,000 investment was rolled over a few times into larger properties and has grown to over $600,000 in 15 years.
J&A Investments LC
(focused on current income)
A relatively new investment, this LLC was formed to purchase 3 buildings for a total of 22 units in Newton IA. This $25,000 investment provides a 12% annual distribution to its owners.
Really Great LC *
(focused on equity appreciation)
This is an LLC that was formed around 20 years ago that started with a $36k investment in a small apartment building. The LLC now owns more than 50 units in 5 towns with more than $5,000,000 in equity in addition to minimal distributions made mainly to help owners pay for taxes on income the LC generated.
*LLC name changed to protect the innocent! (The owners did not want the name used since it is self identifying)
Existing Investments
How it Works
Most of our Denbar sponsored investments are in multi-family buildings, however, we have also invested in other real esate such as hotels, stores, land, and gas stations. The examples below are summaries of existing investments focussed on either current income or long term equity appreciation. The annual return represents actual distributions to investors which is in addition to mortgage paydown and any potential appreciation
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Purchasing power is based on a 20% downpayment with an 80% mortgage loan
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5 year share appreciation is based on the mortgage paydown of a loan at 5% and amortized over 20 years.
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The example does not factor in potential appreciation.
Our investments can be broadly categorized as being focused on either current income or equity appreciation. But as you can see from the above example, projects that produce current income can also have equity appreciation.
Individual investors need to decide which type of investment is best for them, but to help you make a decision, here are examples of current investments from both categories, and below that is some general information of each option.
Click here to see more examples
Denbar Sponsored LLC
Focused on Current Income
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Properties are newer or recently refurbished
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Use longer term or interest only mortgage loans
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Distribute high percentage of available cash flow
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Do not sell and exchange for larger properties
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Refinance to provide addition distributions
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Focused on Equity Appreciation
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Properties need to be rehabbed and/or repositioned.
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Use shorter term mortgage loans.
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Distributions if any, just to cover owner’s tax.
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Exchange for larger properties every 5 years.
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Refinance only when better terms are available
It Takes Just 3 Steps
Is it Easy to Invest?
3
2
1
Then . . . . I guess it's not even 3 steps! But we'll make this a step - Sit back, relax and cash your annual distribution cheks.
If it does, send us a signed Subscription Agreemetnt, LLC Operating Agreement, and a check for the number of Units (shares) you are requesting.
Review a proposal for a Denbar sponsored project to determine if it matches your investment goals.
LLC Investment Alternatives
Not from the US, but would like to own real estate in the States?
We will help you get on board! Check out our International Investors page for more info.
Want to invest funds that are in a retirement account, but don't know where to start?
No problem. We will work with you. Click here for more info.
Need more info about real estate investing in general?
Check out our Real Info section.
See answwers to questions other people have asked
Check out our FAQ page.
Sample Certificate of Organization
Sample LLC Operating Agreement
Can it get any Easier?
Yes! Soon you will be able to review, apply for, and fund your investment completely on line.
Customized Investments
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Initial meeting to understand your needs and what you are looking for
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Define a list of investment parameters that we both agree with such as location, type of property, length of ownership, form and timing of returns, level of risk, tax favorability etc.
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Denbar will provide a consulting bid if we are confident about successfully executing the project
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Bid includes working on your behalf through all stages of search, due diligence, entity creation, acquisition, and funding and in some cases, ongoing management.
How it Works
Is this for Me
This option is best suited for investors who have considerable experience with investing in real estate, and have a good idea of what they are looking for, but do not have the time or inclination to do the leg work. It works best for project sizes of $5MM or greater.
Existing Customized Investments
Due to the proprietary nature of these investments and to maintain the privacy of the investors, we cannot publically show sample investments. However, we can provide additional information and investor references for investors who has a serious interest in this option.