A Limited Liability Company is a corporate structure where members of the company have limited liability for the firm’s actions.

Investments in real estate LLCs can have similar attributes to investments in Real Estate Funds, including extensive due diligence and the potential for monthly cash flow. The main difference is that an LLC is usually an investment in a specific property, instead of a group of real estate holdings.

Investors acquire membership interests in the LLC owning the real estate holding, often a Tenants In Common (TIC) or Delaware Statutory Trust (DST) property.

The potential benefits of investing in an LLC.

• LLCs can be an attractive way to sample a particular real estate provider’s TIC business plan.
• LLCs can provide a simple means of diversifying an investment portfolio with real estate.
• The initial investment in a fund is substantially lower than a direct TIC or DST investment, (i.e. $25,000 for a fund instead of $100,000 for a DST or $250,000 for a TIC), allowing “beginner” investors to access these institutional-grade real estate opportunities.

• As with any real estate investment, an LLC can decline in value.
• Regular dividend payments may cease at any time.

INVERNESS provides direct investment opportunities to LLCs and a select array of other real estate investments. The properties included in the LLCs INVERNESS offers have been thoroughly vetted and researched.

Contact an INVERNESS Real Estate Consultant to learn more about your investment options.

• There are substantial differences between diversified funds and LLCs, including investment objectives, costs and expenses, fluctuation of principal and return, and more.
• Please note that a 1031 exchange cannot be completed by investing in an LLC.
• Before investing in an LLC, be sure to speak with your tax or financial advisor to determine how it may impact your tax status and overall financial position.