Tycon Capital’s investment structure is a contractual agreement between two parties – Limited Partners (LP) and General Partners (GP).
Limited Partners investors are typically seeking a passive investment, liability protection, tax efficiency, and may be constrained in experience, knowledge, skill, time, or the ability to diversify into redevelopment projects. The LP structure allows the investor access to investments that would otherwise be inaccessible due to the above factors.
General Partners are a group that possess expert knowledge and skill in acquiring, developing, and marketing the real estate as proposed.
Participation in Tycon Capital’s projects is primarily through Limited Partnership units. Each unit is essentially a share of the net profits with the added bonus of an annualized preferred rate of return.
The current offering allows for an 8% annual preferred rate of return for the LP investor, in addition to a 30% share of the net profits. The GP retains the option to buy out the LP shares at 15% annual return (inclusive of the 8% annual PRR) at any time.