Open Source Capital, LLC Utilizes MarketPlace Financing to Help Fund Property That Is Being Re-entitled for Development

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Open Source Capital is introducing its newest investment product, which the company calls “Equity Plus”, which provides attributes of both a preferred return and appreciation. Equity Plus allows investors to invest in debt free property and often receive monthly payments while the property is being re-entitled for development, plus share in the profits from the sale.

Open Source Capital’s Managing Director, Kyle Meyer, states "re-entitlement is complicated. We try to make it accessible to more people. Our 'Equity Plus' program is a convenient way for accredited investors to participate"

Many properties being offered are currently in private sales discussions with developers or commercial tenants, while going through the permitting and approval process. Property owners often make substantial returns by re-entitling their property to a higher use, however the re-entitlement process can be expensive. To pay for the process owners can sell a preferred equity interest in the property. For example, if a property is valued at $1m and the mortgage is $400k, an investor(s) could payoff the mortgage on the property and in return become a preferred equity holder with a 35-45% equity stake in the deal. When the primary owner sells the property, the investor receives their initial capital back with a preferred return of 4-5% p.a., plus his or her portion of the appreciation. The primary "non-preferred" owner is the managing member of the entity owning the property and is responsible for the expenses of owning and completing entitlement of the property


For the Primary Owner:

Retains an ownership interest in the property
Maintains full management rights
Eliminates debt (mortgage) and preserves his or her equity ownership interest in the property
May extract equity without taking on debt

For the Investor:

Gains ownership of real estate that might not have been available without using debt.
Invest in debt free property
Invest without the headaches of property management
Take advantage of bridge loans becoming due in a credit constrained market
May receive monthly rental payments from existing tenants
May receive capital gains treatment on the profit

Open Source Capital identifies, analyzes and issues commitments to fund real estate developers seeking financing for their projects. Once a project has been vetted and approved for funding by Open Source Capital, the project is posted on a platform that facilitates MarketPlace financing via the internet.

NOTE: “The JOBS ACT” relaxed the advertising rules on private financings, extending companies' reach and breaking down barriers that hindered investors and companies from dealing directly with each other.

With over 25 years of experience in finance and real estate development, Open Source Capital can assist both new and experienced accredited investors in reaching their investment goals.

For more information email: kmeyer(at)opensourcecap(dot)com or call: Kyle Meyer: 954-650-6798

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Kyle Meyer
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