Land Depot Capital - 108 Marlborough Ave.

Real Estate
London, Ontario, Canada
647 408 6929
gurmit@landdepotcapital.ca
1000159943 Ontario Limited Partnership
1000159943 Ontario Limited Partnership

$34,400.00

Funded Of $100,000.00 Goal
34.4% Raised
Equity Crowdfunding Offer. Structure
45 Days Days Left
$250.00 Min. investment
$100,000.00 Max. investment
$100,000.00 Minimum Raise
$300,000.00 Maximum Raise

Offering Description

Land Depot Capital Inc. has formed a Limited Partnership for the purpose of acquiring, holding, renting, improving, and selling the municipal property known as 108 Marlborough Ave., London, 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.

Gurmit

What is Fractional Ownership?

Solution

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.

Business Model

  1. Land Depot Capital purchases income generating property.
  2. Shares are sold as a percentage of the property for investors to own.
  3. LDC pays out a lump sum upon sale to investors.
  4. LDC Rent to Owns or Leases the property resulting in positive monthly cash flow. 
  5. Fractional Ownership allows LDC to purchase more properties and benefit more Rent To Own Buyers as well as investors.

Property Details

Solution

108 Marlborough Ave., London, ON

5 Bed & 4 Bath

Welcome to 108 Marlborough Ave in South London! This charming home consists of a 3 Bedroom main unit and a fully finished lower unit with a separate entrance. The interior of the main unit features a brand-new kitchen with updates such as an island, lighting, and new custom cabinets (2021). The shingles were also replaced in 2020. The lower unit has been newly finished and is complete with it's own modern kitchen and 3 piece bathroom. The location is also great as it is close to the hospital, shopping, and schools. Hwy 401 is also easily accessible through Highbury Ave which is a 5 min drive away! This is an excellent home to move into or even as a rental investment!

The Partnership will seek to enter into a rent to own agreement with someone interested in owning the property.

Market Trends

trends

How Does the Partnership Work?

By investing in 1000159943 Ontario Limited Partnership you will be co-investing along side Land Depot Capital Inc. in 108 Marlborough Ave., London, ON. Land Depot Capital Inc. is the 100% owner of the company (1000159943 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, 1000159943 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 April 6, 2022, for 108 Marlborough Avenue, London, ON. The property is being purchased from a third party for the agreed price of $640,000 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.

Exit Strategy

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 Jun 1, 2022, and including May 31, 2023 for $690,000.00;
  • From June 1, 2023, to and including May 31, 2024, for $731,400.00;
  • From June 1, 2024, to and including May 31, 2025, for $775,284.00;
  • From June 1, 2025, to and including May 31, 2026, for $821,801.24; and
  • From June 1, 2026 to and including May 31, 2027, for $871,109.10.

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. The rent-to-own agreement is a binding purchase and sale agreement, with transfer of ownership at or before the end of a specified period of occupancy.

The rent-to-own agreement is a binding purchase and sale agreement, with transfer of ownership at or before the end of a specified period of occupancy. 

  1. possession is given under or as a consequence of an agreement to transfer the ownership of the complex to the recipient.
  2. The recipient acquires legal title to the property after payment of a specified amount or after a specified period of time
  3. payments under the agreement are referred to as instalments, interest or similar amounts;
  4.  the recipient is liable for property taxes, utility payments and other amounts payable in respect of the property (this criterion is only relevant if other criteria are met since the condition in this criterion may occur in net lease agreements).

Depending on the terms of the contract the general partner has the full right to monetize and or lease the property for a specific period of time either way by long- or short-term rentals and or rent to own programs

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

RecentDeals

*Recent deals by Land Depot Capital or related entities.

Offering Terms

NOTE: You will need your Bank Account Number, Transit Number, and Institution Number to Invest.

1000159943 Ontario Limited Partnership:

  • Minimum Raise - $100,000 CAD 
  • Maximum Raise - $300,000 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

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Our Team

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04/10/2022
Project launched

FAQs

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