Equity investing in real estate is the buying of shares in a pooled or group investment. An analogy for a private equity firm could be a mutual fund for real estate instead of stocks. The investor owns a share of an entity rather than a direct investment in a specific property. It could be a single property or a diversified fund where the shareholder owns a share in multiple properties. It could also be compared to a Real Estate Investment Trust (REIT) except that it is not publicly traded and it doesn’t have the same income distribution restrictions as a REIT.

The concept and goal of private equity is to provide the many benefits of direct investing (pass through tax benefits and income) in a format that has less personal management and liability. At the same time it can provide more diversification and liquidity than is typically associated with owning real estate. It is a passive investment in an LLC or Limited Partnership that owns real estate assets managed by an experienced broker with a performance based compensation plan.

Investorlando Realty is not a private equity firm but manages the affiliated private equity namesake, Investorlando Limited. This eleven year old private equity firm is very successful and sometimes makes equity interests available to qualified investors. Broker, Lenny Layland is the General Manager for this private syndication and is proud to have earned the limited partners over 2 million dollars since inception in 1999. This represents an average annual return on investment of approximately 10%.

These consistent results were generated in good times and bad through diversification and asset reallocation based on market conditions. There have been over 100 residential transactions representing millions of dollars of mostly single family homes and foreclosures. Commercial deals have included build to suit industrial, multi-family bulk transactions and our current office building (The Historic Longwood Village Inn). Other real estate related investments include private mortgages and tax lien certificates as well as LLC interests in land targeted for eminent domain taking.

This private equity company hasn’t accepted new private or IRA investors for many years. This may change soon because of the distressed property and foreclosure opportunities created from the real estate bubble. Investorlando Limited will be doing a new offering to accredited and sophisticated investors who have a relationship with the company. This could grow the partnership from the current three million to the 5 million dollar equity limit. As the market recovers we will be considering other new private equity programs, including the option of contributing property as equity into a new entity for tax deferred investment and diversification.

This information is not intended to be an offering of securities but is simply informational in nature. It is provided to outline the experience and expert investment services offered by Investorlando Realty and Broker/Owner, Lenny Layland.

If you would like to start a relationship by discussing real estate investing options please complete a quick inquiry form. From this you could schedule a consultation or request information on any future investment offering.