KINGS CASTLE limited partneRship investment in apartment buildings
This real estate rental property investment is primarily into carefully selected apartment buildings and secondarily into land parcels. Eleven founding limited partners, including the four shareholder General Partners of Prestigious Properties have invested $520,000 to start this Limited Partnership (LP). The target raise is $15 million, as was the case with our previous offering (PRISM:A) which was closed to new investors in December 2009 after the target was reached. As money is raised for Kings Castle LP, we will begin to purchase properties that we have located, researched and conducted a stringent review against our investment strategy. Unlike many other LP offerings we do not inflate going-in-prices of properties we purchase.
This exciting new partnership opportunity has tremendous incentives in place to attract early investment. By clicking the investor interest information button at the top of any page of this website, you can get a complete information package and find out about current incentives.
This is our 6th Limited Partnership offering to date. For detailed information on our past investments we welcome you to review our track record. You can can also look at an overview our investment history, and use our interactive track record player to look at ROI performance on specific properties. You can also look at our PRISM:A page.
In Kings Castle We Are Targeting Properties For You To Co-Own That Are Similar To PRISM: A Purchases:
Kings Castle - Investment Strategy In A Nutshell
Focus on apartment buildings because this real estate class is less volatile than the stock market or other real estate sectors, while having good upside plus built-in inflation protection. Keep door open to invest up to 25% elsewhere, such as in residential land development, when the price is right. Here's more on why we choose apartment buildings.
Look for buildings in regional economies that are strong or expected to be strong in coming years, such as Western Canada or select US states such as Texas.
Evaluate buildings for sale, sifting through the list over many months to find the best values.
Purchase selected buildings as good deals are found, typically with 15-35% cash down.
Increase value of assets through prudent renovations, which support higher rents and resale values.
Increase value of assets through expert property management, further supporting rents and resale values.
Use cash flow from renters to maintain the asset and flow excess into the LP as available.
Allow time for cash flow from rents paid to lower the mortgage debt on each building so that the LP owns more of each, and thereby increasing the value of its original investments outside of the increases in market value of the assets themselves.
Allow time for local economic growth/in-migration/tightening vacancy rate to increase market value of assets.
Periodically sell or refinance buildings to produce investor profits, and at some point liquidate the LP and its assets for the same reason.
How You Participate
There is a minimum $25,000 investment for eligible and/or accredited investors. The set value of one LP unit is $5,000 and each limited partner will own at least 5 units. Your investment term is a minimum of 5 years, with optional quarterly positive cash flow. However, the LP will also allow redemption of LP units, regardless of the reason. There is a decreasing penalty to redeem your investment before 5 years from the initial investment.
Target Return
Double-digit average annual ROI over 5 year investment with optional 5% annual cash distribution or DRIP (Distribution Reinvestment Plan).
Investor Protection
• General Partners sign all required personal guaranties for mortgages (investors like you are Limited Partners).
• Your total liability is limited to your investment.
•
General partners are motivated to protect investors because they receive the bulk of their profits through their equity share, which is only paid out after investors’ initial investments have been returned to them. Here's how we share profits:
STEP 1: 100% of all cash distributions will be sent back to investors until they have received an amount equal to their initial capital contribution
STEP 2: 60% to Investors and 40% to Prestigious Properties, until investors have received a 100% return on their original investment
STEP 3: 40% to Investors and 60% to Prestigious Properties
This stepwise process generally takes a few years to transpire and compares favourably to a classic hedge fund model where profits are distributed to managers annually, encouraging high risk/immediate return investing on your behalf. Should the fund collapse the following year, the net result can be that managers still walk away with huge fees the previous year and you still lose all your money as has happened to many in the 2008 stock market crash!
Management Fees
Commissions paid to people who help find investors: 6% of gross investments (up to 8% if a third party sales representative is involved). Asset Acquisition Fee: 1% of the asset purchase price. Annual Asset Management Fee: 0.5% of Asset Value. Refinance Fee: 0.7% of refinance amount. Administration Fee: 1% of gross investments.
Find Out More
You owe it to yourself to find out more!
> Download our KINGS CASTLE LP information brochure.
> Receive more detailed investor information package on KINGS CASTLE LP
