Land Depot Capital - 429 Saul 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 429 Saul St., 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.
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.
- Units are sold as a percentage of the property for investors to own.
- LDC pays a total of 18% per annum returns on the capital invested by Limited Partners. 9% will be paid in the form of a lump sum at the dissolution of the partnership and 9% will be divided and distributed quarterly.
- 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.
- The partnership will plan to sell the property 5 years from now, if not sooner. When the property is sold, the partnership will be dissolved.
429 Saul St., London, ON N5W 4T4
4 Bed & 2 Bath
Fully renovated 4-bedroom 2 bath house. Renovations include the addition of a second kitchen, new shingles, eavestrough, fascia, soffits, all new windows and exterior doors, new back deck and front porch deck with aluminum railings, central air, hardwood flooring, new kitchen cabinets with quartz counter tops, new paint throughout, new plumbing fixtures, both bathrooms fully renovated, new electrical panel and pot lights, decora switches, new carpet.
The Partnership will seek to enter into a rent to own agreement with someone interested in owning the property.
How Does the Partnership Work? What are my Returns?
By investing in 1000217749 ONTARIO INC. you will be co-investing along side Land Depot Capital Inc. in 429 Saul St., London, Ontario. Land Depot Capital Inc. will act as the partnership's General Partner, and you will be a Limited Partner. Details on roles and responsibilities of Unit Holders based on Unit Class can be found in the Limited Partnership Agreement (LPA).
Agreement to Purchase the Property
Land Depot Capital (General Partner) signed a Purchase and Sale Agreement on February 28, 2022, for 429 Saul St., London, Ontario. The property was purchased from a third party for the agreed price of $625,000 CAD. Land Depot Capital Inc. also has a appraisal completed on the property showing a valuation of $625,000 CAD. The Limited Partnership will purchase the property from Land Depot Capital Inc. at the price of $625,000 CAD 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 September 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.
Returns for Limited Partners
Proceeds to the partnership in the form of rent and income will be given solely to the general partner. Limited partners will receive a total of 18% per annum fixed interest rate on their invested capital. This fixed interest rate will be distributed as follows: 9% will be distributed quarterly to limited partners, with the remaining 9% annual return paid upon disolution of the partnership. The partnership will be dissolved upon the sale of the property, which will be within roughly 5 years or sooner.
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.
Use of Funds
The funds raised will be used primarily for the purchase of the property at 429 Saul St. in London, Ontario.
If the maximum $750,000 CAD is raised, The Use of Capital will be as follows:
$625,000 CAD will be used to purchase the property;
$50,000 CAD will used for renovations;
$75,000 CAD will spent on legal fees and a reserve.
Please see the 45-110 Offering Document attached to this page for a breakdown of the use of funds assuming the minimum amount is raised.
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 May 1, 2022, and including August 31, 2023 for $750,000
- From September 1, 2023, to and including August 31, 2024, for $795,000.00
- From September 1, 2024, to and including August 31, 2025, for $842,000.00
- From September 1, 2025, to and including August 31, 2026, for $946,857.72 and
- From September 1, 2026, to and including August 31, 2027, for $1,003,669.18
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.
NOTE: You will need your Bank Account Number, Transit Number, and Institution Number to Invest.
1000217749 Ontario Limited Partnership:
- Minimum Raise - $100,000 CAD
- Maximum Raise - $750,000 CAD
- Security Offered - Limited Partnership Units (Units) at $1.00 CAD per Unit
- Minimum Investment - $1,000 CAD for 1,000 LP Units
- Maximum Investment - $200,000 CAD for 200,000 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.
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