Frequently Asked Questions
Investor FAQ
INCOME
You earned over $200,000 (individually) or $300,000 (with a spouse/equivalent)
in each of the prior two years and expect the same this year.
NEW WORTH
Your net worth exceeds $1M, excluding your primary residence.
PROFESSIONAL
You hold certain active financial licenses (e.g., Series 7, 65, or 82).
Not sure if you qualify?
Accreditation can be nuanced. [Book a call with our
team], and we can help you understand the guidelines and how the verification
process works.
How is my status verified?
As a 506(c) firm, we are required by the SEC to take reasonable
steps to verify accreditation. This is a simple process typically handled via a third-party
verification service or a brief letter from your CPA, attorney, or investment advisor. We strive to
make this process as seamless as possible for our partners.
What is the typical timeline for distributions?
Our goal is to provide predictable passive
income. While every business plan is unique, investors typically begin receiving distributions
quarterly once the asset reaches its targeted stabilization phase.
What should I expect regarding reporting?
Transparency is a pillar of LLK Private Capital.
You will receive:
● Quarterly Performance Reports: Updates on operations and financials.
● Annual K-1s: Delivered timely for your tax filings.
● Investor Portal: 24/7 access to your documents and distribution history.
What are the risks?
All investments involve risk, including the possible loss of principal. Real
estate is subject to market fluctuations, interest rate changes, and liquidity constraints. We
mitigate these through conservative underwriting and sensitivity-tested projections, but we
encourage all investors to review the "Risk Factors" section of t he Private Placement
Memorandum (PPM) before investing.
Investment Strategy: Built for Long-Term Wealth
What is LLK’s core philosophy?
We focus on "sticky" assets—multifamily, residential
communities, and RV/hospitality—in high-growth markets. We prioritize assets that offer a
balance of predictable passive income and long-term equity gains.
How do you select deals?
We apply a rigorous "Selection Filter" to every opportunity:
● Conservative Underwriting: We plan for market shifts, not just best-case scenarios.
● Market Growth: We target areas with strong job and population tailwinds.
● Clear Value-Add: Every deal must have a tangible path to increasing net operating
income.
What is my role as an investor? Your role is passive. We underwrite, acquire, operate, and
optimize. You receive the benefits of institutional-grade real estate ownership without the
burdens of property management.
Tax-Smart Wealth Planning
How does LLK help reduce my tax burden?
We leverage the tax code to help you keep more of your returns. Common strategies include:
Cost Segregation & Bonus Depreciation:
Often creating "paper losses" that can offset
taxable income.
Strategic Structuring:
Aligning your investment with tax-efficient legal frameworks.
REPS Support:
Assisting those with "Real Estate Professional Status" in maximizing
their deductions.
Do I need to fire my current CPA? No. We don’t replace your CPA; we elevate the
conversation. We provide the institutional-quality structures that many generalist CPAs may not
be familiar with, working in tandem with your team to optimize your wealth.
Standard Footer Disclosure (Mandatory for 506(c) Websites)
LLK Private Capital is not a registered investment advisor, law firm, or tax
professional. Securities are offered under exemptions provided by SEC Rule
506(c). These investments are highly speculative, illiquid, and involve substantial
risk. Past performance is no guarantee of future results. Tax benefits are subject to
individual circumstances and IRS changes. Prospective investors must read the full
Private Placement Memorandum (PPM) and consult with their own professional
advisors before investing.
