Structure | Vesdor Ownership and Income Distribution

Make passive investments. Earn active returns.

You receive an ownership stake in an individual rental property by investing in a Limited Liability Company (LLC) that Vesdor sets up specifically to purchase and own the property. Through this vehicle, you will receive your share of the net rental income distribution generated by that property, and your share of the net capital gain upon the eventual sale of that property. Vesdor targets properties that will generate an 8-12% annualized return for its investors

The Income Distribution Process

The LLC receives gross rental income from its tenant(s), then pays for property management, taxes, and insurance. Vesdor acts as the manager of the LLC, overseeing the property management and allocating funds for the above expenses and for any maintenance, repair, or vacancy issues. After addressing expenses, Vesdor calculates the distribution amounts and sends the cash distributions to you and the other investors.

Minimum Income Distribution

The LLC is set up so that your regular distribution must reach a minimum benchmark (typically 8.0% annualized) before any funds are allocated to Vesdor for acting in its role as the source of the investment opportunity and the manager of the LLC. Once Vesdor’s “promote” is allocated, all additional remaining funds are added pro rata to your total distribution amount for the period. This structure is Vesdor’s approach to ensuring that we don’t get paid until you do! And remember that Vesdor targets properties that will generate a total annualized return of 8-12% return for its investors.

Holding Period

Investors should expect to maintain their investment for a five-year period. There are provisions that allow for a path to exit by investors prior to that time, but a successful exit cannot be guaranteed. Also, investments may be either truncated or extended by Vesdor, so that the company has the ability to be opportunistic in optimizing the total return associated with the property for the investors.

Exit

At the end of the property’s holding period, the LLC will be dissolved and you will receive your proportionate share of the net sale proceeds. As with the income distributions, the distribution of sales proceeds will be net of expenses and Vesdor’s promote.

Learn more about the Vesdor process.