Real Estate Development

1. Hands-Free Property Oversight – We handle inspections and necessary construction.

2. Seamless Property Acquisition – We manage the entire purchase process.

3. Price Appreciation – Your investment gains value over time.

4. Effortless Equity Growth – As tenants pay rent, your ownership stake increases.

5. Residual Passive Income – Earn steady monthly rental income.

6. Tax Advantages – Benefit from K-1 pass-through income, depreciation, and tax deductions.

7. Hassle-Free Property Management – No need to deal with tenants, maintenance, or daily operations.

8. Simplified Accounting & Legal Compliance – Our team handles financial records, insurance, and legal matters.

1. What is the minimum investment required? Each investment has a minimum buy-in, which will vary by project. Investors will be informed of the minimum required for each opportunity.

2. What is the expected return on investment (ROI)? Expected annualized returns range between 10% and 12%, depending on market conditions, rental income, and appreciation.

3. How is rental income distributed? Rental income is distributed monthly, based on each investor’s ownership percentage.

4. Who manages the property? VASE handles all property management, tenant relations, maintenance, and daily operations to ensure a hassle-free investment experience.

5. What are the tax benefits of investing? Investors benefit from depreciation, K-1 tax filings, and deductions on expenses such as mortgage interest, property management fees, and maintenance costs.

6. What if I want to exit my investment? You can sell your portion of the investment at any time. VASE can facilitate the sale for you, retaining 5% of the proceeds if we handle the transaction.

7. Can I reinvest my earnings into other properties? Yes! Investors can reinvest earnings into new properties to grow their portfolio and maximize tax benefits.

8. How long should I plan to hold my investment?

   We recommend a holding period of 5–10 years to maximize appreciation and returns, but you may sell earlier if desired.

9. What are the risks involved?

   As with any investment, risks include:

   • Market fluctuations affecting property value.

   • Unexpected construction or renovation costs.

   • Tenant turnover affecting rental income.

   • Potential delays in property appreciation.
     However, our expertise in property selection, management, and financing helps minimize these risks.

What is the structure of the investment?

1. Each investment is structured as a single-purpose LLC.

2. VASE manages acquisition, construction, and property operations.

3. Investors receive 40% ownership, 40% of rental income, and 40% of tax benefits.

4. VASE retains 60% ownership and management responsibilities.

How are investment funds allocated?

1. Funds are used for property acquisition, renovations, and pre-development costs.

2. VASE is responsible for managing construction, tenant placement, and property operations.

Will there be fees associated with the investment?

1. Construction Management Fee: VASE will manage construction, and fees will not exceed 10% of the total rehab cost.

2. Exit Fee: If VASE facilitates the sale of your investment, we retain 5% of proceeds.

What happens if an investor needs to withdraw early?

1. If an investor needs to exit before construction or lease-up, they will receive $0.80 per dollar invested within a 90-day period.

What if construction costs more or takes longer than expected?

1. Unexpected construction costs: If costs exceed estimates, VASE will not make additional fees.

2. Delays in timeline: Construction may take longer due to unforeseen factors, but VASE does not profit from any delays.

Why might construction costs increase?

Several unforeseen factors can lead to increased costs, including:

1. Hidden Structural Issues – Foundation problems, unaccounted-for load-bearing walls.

2. Hazardous Materials – Asbestos, lead paint, mold, or water damage requiring remediation.

3. Outdated Electrical & Plumbing – Non-code compliant wiring or corroded pipes needing replacement.

4. Site Conditions – Unmarked underground utilities or weak soil.

5. Material & Labor Shortages – Supply chain disruptions and labor availability issues.

6. Code Compliance Changes – New building code updates requiring adjustments.

7. Design Changes – Owner-requested upgrades or architectural modifications.

8. Pest Infestations – Termite or rodent damage impacting structure.

9. Weather Delays – Storms or extreme weather affecting construction schedules.

How does VASE manage construction risks?

1. We budget for unforeseen repairs and set aside contingency funds.

2. We work with licensed professionals and third-party consultants to mitigate surprises.

What happens after the rehab is complete?

1. The property will be fully leased and managed by VASE.

2. Investors receive monthly rental income based on their ownership share.

3. The property will be held for long-term appreciation, unless a majority vote decides to sell.

What is the process for forming the investment entity?

1. The LLC is formed with all investors and VASE as members.

2. The property is purchased under the LLC’s name.

3. An operating agreement defines roles, voting rights, and exit strategies.

How are voting rights determined?

1. Voting rights are based on ownership percentage.

2. Major decisions, including property sale, require a majority vote.