© 2005 118 Ventures, LLC
118 Ventures, along with our investors, invest in pre-construction and pre-development waterfront, water view, oceanfront and ocean view real estate opportunities. Investing in these types of properties allows us to purchase at a significant discount. In order for developers to secure funding from their financial backers, they must obtain reservations or sell a part or all of the units or lots in the project. The developers offer investors like us a significant discount for being an early investor. In our pre-construction opportunities we are placing a refundable deposit before the building has been built and in the pre-development opportunities we are buying vacant land prior to the infrastructure (i.e. roads, water, sewer, etc.) being put in place. Depending on the project, there may be more than one phase. We typically like to invest in the first phase of a multiple phase project to get the best return on investment. Through our partnerships, we gain access to opportunities that are not available to the average investor or the general public.
Our Methodology
We pool investors into what we call Private Client Groups. These groups are made up of multiple investors for the purpose of investing in a specific target investment. A single investor may be involved in one or more Private Client Groups at any given time. Involvement in an investment is solely at the direction of the investor. New opportunities are pre-released to Private Client Group members forty-eight hours prior to releasing to everyone else; the only exception is when turn around time on an investment does not permit. We manage the investment from the purchase through the sale.
Our Investment Process
118 Ventures distributes real estate investment opportunities via email. Depending on the investment type, pre-construction or pre-development, we either define the amount we need to raise or leave it open ended. For pre-construction, we know the amount we need to raise and will specify that in the email. For pre-development, we typically have access to multiple lots and will leave the amount open. The amount raised dictates the number and type of lots we can purchase.
Investors commit to an investment by responding to our email and specifying their investment amount. As each opportunity is first come first serve we require the reply email so we can use the date and time of the reply email to order investor responses. Once the investor commits we follow-up with funding instructions. Investors must submit a Funding Submission Form along with any funds. By submitting funds to 118 Ventures the investor agrees to the terms of the Investment Agreement.
In the event that more money was raised than was needed for the investment the date and time stamp from the response email will be used to order investors and will determine which investor's funds will be utilized. Any funds that are not used may be directed by the investor to be held by 118 Ventures for future investments or simply returned to the investor. Collection of more funds than needed typically only occurs in pre-development opportunities where the type and value of lots purchased is dictated by the amount of money raised.
118 Ventures completes and executes the appropriate contracts and funds the investment. All contracts are held at the 118 Ventures offices. Copies of the contracts are available to members of the Private Client Group upon request.
Upon completion of the investment, investors are mailed an Investment Agreement. This document includes detailed property information, investment amount, percentage of the investment the investor holds and the total amount of the investment. For pre-development investments where we must obtain a mortgage for the property the preparation and mailing of the Investment Agreements is delayed until after closing so we can include the closing costs in the total investment calculation. The investor is provided two signed copies of the Investment Agreement, one to inital, sign and return and a copy for their records.
From time to time the members of the Private Client Group will receive email updates with information or news pertaining to the investment.
Upon the sale of the investment the funds are distributed to the investors in the following manner:
Investor Profit = PCG profit amount * Investor Percentage
118 Venture's compensation is purely profit based and there is never a management fee, so we profit when you profit.
Our Methodology
We pool investors into what we call Private Client Groups. These groups are made up of multiple investors for the purpose of investing in a specific target investment. A single investor may be involved in one or more Private Client Groups at any given time. Involvement in an investment is solely at the direction of the investor. New opportunities are pre-released to Private Client Group members forty-eight hours prior to releasing to everyone else; the only exception is when turn around time on an investment does not permit. We manage the investment from the purchase through the sale.
Our Investment Process
118 Ventures distributes real estate investment opportunities via email. Depending on the investment type, pre-construction or pre-development, we either define the amount we need to raise or leave it open ended. For pre-construction, we know the amount we need to raise and will specify that in the email. For pre-development, we typically have access to multiple lots and will leave the amount open. The amount raised dictates the number and type of lots we can purchase.
Investors commit to an investment by responding to our email and specifying their investment amount. As each opportunity is first come first serve we require the reply email so we can use the date and time of the reply email to order investor responses. Once the investor commits we follow-up with funding instructions. Investors must submit a Funding Submission Form along with any funds. By submitting funds to 118 Ventures the investor agrees to the terms of the Investment Agreement.
In the event that more money was raised than was needed for the investment the date and time stamp from the response email will be used to order investors and will determine which investor's funds will be utilized. Any funds that are not used may be directed by the investor to be held by 118 Ventures for future investments or simply returned to the investor. Collection of more funds than needed typically only occurs in pre-development opportunities where the type and value of lots purchased is dictated by the amount of money raised.
118 Ventures completes and executes the appropriate contracts and funds the investment. All contracts are held at the 118 Ventures offices. Copies of the contracts are available to members of the Private Client Group upon request.
Upon completion of the investment, investors are mailed an Investment Agreement. This document includes detailed property information, investment amount, percentage of the investment the investor holds and the total amount of the investment. For pre-development investments where we must obtain a mortgage for the property the preparation and mailing of the Investment Agreements is delayed until after closing so we can include the closing costs in the total investment calculation. The investor is provided two signed copies of the Investment Agreement, one to inital, sign and return and a copy for their records.
From time to time the members of the Private Client Group will receive email updates with information or news pertaining to the investment.
Upon the sale of the investment the funds are distributed to the investors in the following manner:
- All outstanding expenses are applied to the sale proceeds prior to any allocation of funds.
- Investor funds will be distributed from the net proceeds prior to any profit calculations.
- The net profit is then split 50/50 between the Private Client Group and 118 Ventures.
- The PCG's portion is split based on the individual investor's percentage of the investment.
Investor Profit = PCG profit amount * Investor Percentage
118 Venture's compensation is purely profit based and there is never a management fee, so we profit when you profit.