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Investor funds their investment with the full subscription amount.
Funds are released (from Escrow, if applicable)
$500,000 (TEA)/$1,000,000 (non-TEA) to Partnership, syndication fee to General Partner.
Each quarter the project investment pays the Partnership the interest on the note.
Each quarter the Partnership passes through the agreed upon interest to the General Partner and to the Limited Partner’s capital account.(Limited partners are able to monitor activities of the partnership online)
Each year the Partnership makes a distribution to the parties of the partnership proceeds.
At the six year mark of the loan
Target investment pays the Partnership the principal amount of the loan and the final interest payment.
Partners vote to liquidate the partnership and distribute the remaining interest and principal according to the Partnership Agreement