FAQ’S

Getting Started

For existing LandX investors, you will receive an email from us to login to our investor portal, where you can create a new login, and complete your investor. If you have not received an invite yet, please email jd@landx.land!

For new investors, those with no prior LandX investments, Click Here to sign up. 

Please note that new investors must be approved before the investment process can begin, which can take up to one business day.

 

Minimums vary from deal to deal, but generally are set at $100K.

The process to invest in is simple:

  1. Create an investor portal account
  2. Execute subscription documents
  3. Complete third-party accredited investor verification process; and
  4. Fund your commitment

Please contact a LandX Partner with any additional questions.

Yes, as long as the active deal is still open to new investment.

You will simply sign another subscription agreement to formalize the investment, provide an update verification letter if needed, and fund the increased amount.

Returns & Distributions

We model most of our equity investments with a 12 to 24 month hold period. This typically provides ample time to execute our subdivide strategy for value-add subdivide projects. Once equity capital is repaid to us, we then distribute your original invested cash principal payments first (after third party debt is repaid if there is any), and we aim to do this within 12 months. We do not wait until the full project is sold to make distributions of your original principal. After the initially invested cash principal is fully repaid, we then pay out profits.

The returns forecasted are described in the private placement memorandum (PPM) and vary from deal to deal. For most of our equity investments, we target annual returns in the 20-30% range with a 12-24 month targeted hold period. Actual returns vary on a property by property basis. See the private placement memorandum (PPM) for specific property investment risks.

The most common fees are an acquisition fee based on purchase price and is paid at closing, and an asset management fee. These costs cover the general partner’s costs to find the deal and get it under contract. The second most common fee is the asset management fee which is compensation for holding the deal manager accountable, to ensure execution of the business plan, bookkeeping, and distribution of checks and K1s, and several additional responsibilities. The asset management fee is aligned with the investor’s interest as it is based on the property’s revenues. Industry averages are 2-4% of the asset price for all fee types.

We make payments as quickly as we can (typically within a few business days) once distributable proceeds are received by LandX. When your equity capital is repaid to us, we then distribute your original invested cash principal payments first (after third party debt is repaid if there is any), and we aim to do this within 12 months. We do not wait until the full project is sold to make distributions of your original principal. After the initially invested cash principal is fully repaid, we then pay out profits.

Yes – as a part of our due diligence and underwriting process, we model several different scenarios to show returns based on a varying set of assumptions.

LandX Communications

You are of course encouraged to reach out anytime with questions, as we’re always here for you! More formally, we will provide monthly or quarterly email-based updates on the investment’s progress, and periodic updates on distributions as the land sells. You will also receive a K-1 statement from us by March 15th of each year for your tax filing.