Land Depot Capital - 25 Sheridan St.
Land Depot Capital Inc. has formed a Limited Partnership for the purpose of acquiring, holding, renting, improving, and selling the municipal property known as 25 Sheridan St., Brantford, ON.
Investors have the opportunity to invest in this property through Land Depot’s Fractional Ownership program.
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What is Land Depot Capital?
Land Depot Capital is changing the way that we invest in the real estate market. Founder and CEO of Land Depot Capital Inc. Gurmit Singh has 20 years' worth of valuable experience in the real estate industry. Based out of London, Ontario, Land Depot Capital Inc. is a fast-growing prop-tech company to watch. What started small has grown into a company of experts armed with a state-of-the-art algorithm.
Land Depot Capital has committed itself to the mission of making property ownership affordable and hassle-free. We have created a program that allows real estate investment to be passive giving our clients their time back. Fractional ownership is a new way to invest in property without tenant hassle, without a mortgage, and without a big down payment.
What is Fractional Ownership?
Fractional ownership is a way to invest in real estate without dealing with tenants, mortgages, maintenance, and any other hassles. LDC has invested in an algorithm that searches for the best deals in Ontario and then posts them on Equivesto. Once on the platform all approved investors have the chance to invest in the property, this allows everyone to own a piece of the house and watch the value grow.
With the help of our algorithm, we are able to acquire and bring to our members the best-undervalued properties which supply them with walk-in equity on each and every property. This allows your investment to grow from day one when you invest with LDC.
Why Invest in Fractional Ownership?
☑ The real estate market is growing exponentially.
☑ Hassle-free investing means we manage the property so you can enjoy passive income.
☑ Historically the price of real estate in Ontario have increased year over year.
☑ The real estate market is becoming increasingly hard to break into.
☑ The price of real estate is growing faster than people can save.
☑ Most people have given up hope on owning a home or investing in the market.
- Land Depot Capital purchases income generating property.
- Shares are sold as a percentage of the property for investors to own.
- LDC pays out a lump sum upon sale to investors.
- LDC Rent to Owns or Leases the property resulting in positive monthly cash flow.
- Fractional Ownership allows LDC to purchase more properties and benefit more Rent To Own Buyers as well as investors.
25 Sheridan St., Brantford, ON
The Property is a duplex home located in Brantford, Ontario. It is walking distance to desirable amenities, including Laurier University (Brantford Campus), Conestoga College, bus routes, Elements Casino, City Hall, restaurants, and Harmony Square. The Property is a duplex, with a 1.5 storey style and features two units: front and back. Unit A is a two bedroom apartment at the front of the house. Unit A is currently tenanted for $1,030.00/month inclusive of utilities. Unit B is a 4 bedroom unit with laundry facilities and is located at the back. Unit B is currently tenanted for $1,705.00/month inclusive of utilities.
The Partnership will seek to enter into a rent to own agreement with the tenant of one of the units and a lease with the other, or leases with both tenants.
How Does the Partnership Work?
By investing in 1000066806 Ontario Limited Partnership you will be co-investing along side Land Depot Capital Inc. in 25 Sheridan St., Brantford, ON. Land Depot Capital Inc. is the 100% owner of the company (1000066806 Ontario Inc.) that will act as the partnership's General Partner (GP) and you will be a Limited Partner (LP). Details on roles and responsibilities of Unit Holders based on Unit Class can be found in the Limited Partnership Agreement (LPA).
In a Limited Partnership, The General Partner takes on the responsibilities of the business, and the Limited Partners are simply investors. As the General Partner, 1000066806 Ontario Inc. (100% owned by Land Depot Capital Inc.) is responsible for the business and it's operations.
Agreement to Purchase the Property
Land Depot Capital (Parent company of the General Partner) signed a Purchase and Sale Agreement on January 29, 2022, for 25 Sheridan St., Brantford, ON. The property is being purchased from a third party for the agreed price of $550,000 CAD. The Limited Partnership will be assigned the Purchase and Sale Agreement and has the ability to take on a mortgage on the property.
What Happens if the Partnership does not Reach the Minimum Raise Amount?
The Partnership intends to complete the acquisition of the Property on or about April 30, 2022, after having closed the offering. In the event the Partnership does not raise the minimum amounts under the offering, or the Partnership is not able to close the acquisition of the Property for any reason, any subscription proceeds delivered to the Partnership will be returned to the investors.
Potential Returns for Limited Partners
All proceeds to the Partnership from rent paid by the Tenant, and from the sale of the Property, after payment of any fees or expenses will be distributed by the Partnership as follows:
- Up to 100% Capital Contribution (investment amount) of LPs (investors) - 0% return to GP until full capital is returned to the LPs
- Between 0% to 12% return - 80% of those profits are distributed to LPs, 20% to GP
- Between 12.01% to 24% return - 50% of those profits are distributed to LPs, 50% to GP
- Over 24% return - 30% of those profits are distributed to LPs, 70% to GP
Fees & Expenses
The property will be managed by Land Depot Property Management Inc. (LDPM) pursuant to the terms of a property management agreement. LDPM will be responsible for managing, maintaining, and finding tenants for, the property. The Partnership will pay to LDPM an annual management fee equal to 2.5% of offering proceeds invested in the property, paid monthly. Mr. Singh is also a licensed real estate agent and a mortgage broker and may earn a commission of up to 5% of the sale price upon the purchase or sale of the property. Any such commission will be in substitution for, and not in addition to, any commission paid to a third party real estate agent in connection with the sale of the property.
The Partnership will seek to enter into a rent to own agreement with the tenant of one of the units and a lease with the other, or leases with both tenants in respect of the Property.
In the Rent to Own Agreement, the Tenant will have the right to purchase the Property:
- From the date of the Rent to Own Agreement to and including May 31, 2023 for $636,000;
- From June 1, 2023 to and including May 31, 2024, for $674,160;
- From June 1, 2024 to and including May 31, 2025, for $714,609.60;
- From June 1, 2025 to and including May 31, 2026, for $757,486.18; and
- From June 1, 2026 to and including May 31, 2027, for $802,935.35.
In the event the Tenant exercises any of its rights to purchase the Property, the Partnership will be wound up. In the event the Tenant does not exercise any of its rights to purchase the Property, or no Rent to Own Agreement is entered into, the Partnership will be wound up in the sole discretion of the General Partner on or about five years from the closing of the offering. In either case, the net proceeds from the sale of the Property will be distributed to the Limited Partners and the General Partner as set out in the Limited Partnership Agreement.
In the event that the Partnership is unable to find a suitable Tenant pursuant to a Rent to Own Agreement, the Partnership intends to rent the Property to a Tenant at prevailing market rates. In such an event the Partnership intends to sell the Property within approximately five years of the closing of the offering.
*Recent deals by Land Depot Capital or related entities.
NOTE: You will need your Bank Account Number, Transit Number, and Institution Number to Invest.
1000066806 Ontario Limited Partnership:
- Minimum Raise - $100,000 CAD
- Maximum Raise - $250,000 CAD
- Security Offered - Limited Partnership Units (Units) at $1.00 CAD per Unit
- Minimum Investment - $250 CAD for 250 LP Units
- Maximum Investment - $100,000 CAD for 100,000 LP Units
Please refer to the attached 45-110 Offering Document and Limited Partnership Agreement for further details regarding the terms and conditions of this investment. You will need to start creating an Equivesto account to view documents attached to this page, Equivesto does not charge investors fees at any time.
Use of Funds
Land Depot Capital - 25 Sheridan St. Successful Closing
Land Depot Capital - 25 Sheridan Street (1000066806 Ontario Limited Partnership) successfully completed their campaign, raising ~115% of their minimum raise goal.
1000066806 Ontario Limited Partnership raised CAD $114,999 from 17 investors through a combination of Prospectus Exemption 45-110 'Startup Crowdfunding' and Prospectus Exemption 45-106 2.3 'Accredited Investor'.
The Campaign ended on April 1, 2022 and is in the closing process, which will end on April 30, 2022. The Limited Partnership will issue 114,999 Limited Partnership Units to the new investors. Investors can expect to receive future updates on the investment from the Issuer (1000066806 Ontario LP) directly. The issuer paid a commission to Equivesto Canada Inc. of $1,049.93.
Investors can view their legal documents by logging into the Equiesto platform, travelling to their 'Dashboard', and selecting the 'Transactions' sub menu. On the 'Transactions' page, investors can select the individual transaction and select 'View' to see the details. The details page of each transaction will have the option to download the completed investment documents package.
No Q&A have been posted for this campaign yet. Ask the project creator directly.