How It works | Cali Fractional Investments

How It Works

Simply put each Single Family Rental Property title is held in a California LLC Partnership. Investors purchase shares of the LLC that give them the equivalent percentage of non management membership of that LLC's assets value. This is termed "Fractional Ownership" as the LLC holds the title of the property, and investors own shares of company and therefor "Fractional Ownership" of the titled property. Fractional ownership does come with some voting rights (see sample LLC Operating agreement) but Cali Fractional Investments handles all the day to day management of the company making investment easy and hassle free. Fractional Ownership does entitles investors to partake in their proportion of profits in the form of quarterly revenue (3-7% yields). Investors shares appreciate over time as both the assets value appreciates on the open market and the rental income increases over time (7-10%). This allows the investor to sell or liquidate anytime after the first year of Fractional Ownership. Ultimately investors will reap the largest reward when they reach the full investment hold time (7-10 years) as the LLC - Property will be sold on the open market and generally in Southern California properties have doubled their value every 7-10 years, meaning investors shares will be bought back at 80-120% of their orginal value.

7 easy steps to Fractional Ownership
Step 1. Research the available property investments. (Click Here)
Step 2. Invest by purchasing the number of shares you desire of each property. (Click Here)
Step 3. Receive a certificate of shares (% membership in the LLC) of each investment (See Example)
Step 4. Start receiving your Quarterly Revenue profits (3%-7% Yields) from each investment. (See Example)
Step 5. Receive annual appraisals of each investment showing your shares growth. (5% - 10% annually)
Step 6. At the "Investment Hold Term" the company (property) is sold on the open market.
Step 7. You'll receive your proportion of profits from that sale (80% to 120% over term) (See Example)

Benefits

Invest for as little as $1000 or as much as 100%. in 1 or as many properties as you want.
Diversify into as many investments as you want to balance your risk.
No cash down deposits (25%), mortgage loans or interest payments (Currently 7.9% interest.)
No Mortgage Insurance ((PMI) typically costs between 0.58% and 1.86% of the loan amount per year..)
Hassle free investment and ownership in the property
Revenue positive from day 1. (3-7% revenue returns) .
No property management headaches.
Sell your shares (% membership interest) anytime after the minimum hold period of 1 year..
Investment is backed by real estate property.
A Tax deduction on income tax from the depreciation of the rental property

Invest for as little as $1000 or as much as 100%. in 1 or as many properties as you want.

Diversify into as many investments as you want to balance your risk.

No cash down deposits (25%), mortgage loans or interest payments (Currently 7.9% interest.)

No Mortgage Insurance ((PMI) typically costs between 0.58% and 1.86% of the loan amount per year..)

Hassle free investment and ownership in the property

Revenue positive from day 1. (3-7% revenue returns) .

No property management headaches.

Sell your shares (% membership interest) anytime after the minimum hold period of 1 year..

Investment is backed by real estate property.

A Tax deduction on income tax from the depreciation of the rental property