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Transparent information about how our investment platform works, legal structures, tax implications, and investor protections.
Investors provide capital in exchange for a legally binding promissory note that guarantees repayment of principal plus interest over a specified term.
Investors seeking predictable income with lower risk tolerance who prefer fixed returns over equity appreciation.
Investors receive membership units in the property-owning LLC, sharing proportionally in rental income, appreciation, and eventual sale proceeds.
Investors seeking long-term appreciation and willing to accept variable returns in exchange for higher potential upside.
Property-Specific LLC
Each property or small portfolio is held in its own Michigan Limited Liability Company
Membership Units
Investors receive membership units representing their proportional ownership interest
Operating Agreement
Governs member rights, profit distributions, voting, and management responsibilities
Manager Structure
Manager-managed LLC with 7 and 1 Holdings serving as the managing member responsible for day-to-day operations
Limited Liability
Personal assets protected from business liabilities
Asset Segregation
Each property isolated in separate legal entity
Transparent Reporting
Regular financial statements and property updates
Defined Rights
Clear documentation of investor rights and obligations
As an LLC member, you will receive an annual Schedule K-1 (Form 1065) showing your share of the LLC's income, deductions, and credits.
Benefit from depreciation on the property structure (typically 27.5 years for residential rental property), which can offset rental income and reduce taxable income.
Deduct your share of property taxes, insurance, maintenance, property management fees, utilities, and other operating expenses.
Upon sale, profits may qualify for long-term capital gains rates if held for more than 12 months (typically 15-20% vs. ordinary income rates).
Subject to specific requirements and LLC structure approval, may qualify for like-kind exchange to defer capital gains taxes.
Promissory Note Investments
Interest income is typically reported as ordinary income on Form 1099-INT. Not eligible for depreciation benefits or capital gains treatment.
Equity Share Investments
Income reported via Schedule K-1. Eligible for depreciation deductions, expense pass-throughs, and potential capital gains treatment on sale.
Real estate markets fluctuate. Detroit property values, while showing growth trends, remain subject to economic conditions, local market dynamics, and broader housing trends.
Real estate is an illiquid investment. You may not be able to sell your interest quickly or at your desired price. Expect to hold investments for 5-10 years.
Properties may experience vacancy periods. Even with strong Detroit rental demand, tenant turnover can impact cash flow and reduce distributions.
Unexpected repairs, weather damage, or structural issues may require capital calls. Maintenance costs can exceed budgets and reduce returns.
Investment returns depend on effective property management. Poor management decisions, operator error, or mismanagement could negatively impact performance.
Changes in local zoning, building codes, tax laws, or rental regulations could negatively affect property values and operating costs.
If properties are leveraged, rising interest rates on refinancing could reduce profitability. Inability to refinance could force a sale at an inopportune time.
Economic downturns, job losses, or recessions can impact both property values and tenant ability to pay rent, affecting cash flow and returns.
Tax laws may change, potentially reducing the benefits of depreciation deductions or altering capital gains treatment. State and local taxes may increase.
Undiscovered environmental issues (soil contamination, asbestos, lead paint) could require costly remediation and reduce property value.
Review our current investment opportunities or contact our team to discuss how real estate investing fits into your financial plan.
Additional Resources