Prudent Growth Partners, LLC  (2017)    1829 E. Franklin St, Suite 800-F, Chapel Hill, NC 27514  (919) 590-4119

OUR PROCESS

Once a deal that meets our criteria is selected, the work is really just beginning.  PGP’s management and advisors have decades of combined experience in commercial real estate and know how to get a deal through due diligence and ultimately to closing.

 

A typical timeline looks like this:

 

  • Investment property identified and preliminary offering sheet prepared

  • Investor interest is gauged, helping us to finalize a price and evaluate the success of the deal

  • Purchase contract signed and ownership LLC entity is formed 

  • Due diligence period starts – typically 30 days – during which the following occurs:

    • Full property inspection completed and analyzed by licensed inspector

    • Phase 1 Environmental Inspection completed

    • Property Survey and Title search completed

    • Bank loan terms finalized

    • Bank ordered appraisal completed

    • All leases obtained and analyzed for any discrepancies with forecasted rent, stated occupancy level, etc.

    • Tax and insurance information analyzed for any discrepancies with projected expense amounts

    • Tenants are interviewed and estoppel agreements signed (if needed)

    • LLC paperwork for the new entity formalized and distributed to investors

    • Investors' initial deposits and subscription agreements are returned

    • Legal counsel for closing identified and escrow account for funding opened

    • Property management agreement negotiated and signed

    • Any deferred maintenance items identified and costs estimates completed

  • After the due diligence period ends, and if all of the above is completed to our satisfaction, we prepare to close:

    • Property management agreement signed and new management team prepares to assume leases, collect rents and security deposits, and prepare for maintenance transition

    • Any deferred maintenance items identified and costs estimates completed

    • Bank loan documents are finalized and executed

    • All funds needed for closing must be received by the LLC at least 5 days prior to closing

    • Property manager sets up the operating account and begins the onboarding process for the new property

    • ​​All SEC Regulation D forms and state notice filings submitted (as needed)

              

Once the transaction is closed, we fund the operating account and begin operating the property.  On a quarterly basis, all investors will receive their distribution checks and a property update.  At the end of each tax year, all investors receive a K1 from the CPA handing the LLC’s tax return.  All gains and losses from the investment flow through to the investors.