Investment Structure
Investing for Cash Flow
This is Patriot's primary focus. We seek assets that will generate a 12% to 15%+ annual return on investment beginning year 1 and growing over a 5-year hold period.
Monthly Distribution Checks
We understand when an investment is made and you see no return on that investment for years afterwards, it's hard to conceive you are actually making a return. Patriot guarantees distributions are made monthly, ensuring investors a steady, consistent income stream.
Preferred Retun
Patriot pays B shareholders a 10% preferred return on capital invested and an equity ownership in the asset.
Holding Period & Exit
Every investment is planned to be held for a minimum of 5 years. At the end of 5 years the asset will be sold or refinanced. B shareholders, "the Preferred Members" will then receive their investment back plus the percentage of increase in their ownership equity.
Partnership Structure
Every property is purchased in a newly formed Nevada LLC. The LLC is made up of two types of members, A shares and B shares.
A shares are held by the Sponsor or Promoter of the transaction, which is Patriot Holdings LLC. A shares are granted for finding the deal, putting the deal together, guaranteeing the loans, overseeing the day-to-day asset management and executing the strategy for the asset: filling vacancy, building the planned expansion, re-positioning the property by overhauling the current management team and by adding capital improvements.
B shares are the capital (money) investors. They have no risk other than the money they invest and do not guarantee the loans. These investors receive a return on their investments, "a preferred return", until they get all their money back. Then their "preferred" status goes away and they remain owners of the asset or they can choose to be bought out by the other A or B shareholders, whichever they choose.