For each real estate asset acquired, NextGen will establish two Limited Liability Companies. The property will be purchased and held in the first LLC taxed as a partnership in the state where it is located. The sponsorship team will establish the second LLC to act as the managing member of the first LLC and therefore absorb the liability of operation.
With that in mind, there are multiple ways to partner with NextGen:
Private Equity
Partners who contribute capital to the acquisition will be Limited Liability Partners of the Manager Managed LLC that holds the property. These partners will share in equity ownership and member distributions throughout the hold period. Combined with strong operating agreements, this structure protects our partners from the liability of operating the property and from each other.
Loan Sponsor
Partners with a high net worth can help us qualify for premium financing. To qualify for this position, this individual must have a net worth equal to the purchase price of the property and liquidity equal to one year of debt service payments. This will ensure the highest loan amount and competitive interest rates. In exchange for signing on the loan, this partner will receive a portion of the cash flow and equity for the project.
Deal Finder
Since the most difficult aspect of investing in multifamily and commercial real estate is finding a strong acquisition, we are always willing to partner with someone who brings us a viable acquisition opportunity.
This Partner will become a General Partner of the Manager Managed LLC that holds the property and will share in equity ownership and member distributions throughout the hold period.
This is the basic structure that our acquisitions will follow. How do you see us doing business together?