Institutional Fund Structure

Institutional Fund Structure

All properties will be purchased with a single purpose entity and wholly owned by the Fund. (i.e. REI Real Estate Income Fund, LLP)  This type of investment entity is a “limited liability partnership” for tax purposes, and interests will be offered exclusively through a "Private Placement Memorandum". The properties to be purchased will not be identified in advance. Properties will be purchased with modest leverage approx. 60% LTV, and all Net Operating Income, less prudent reserves, will be distributed to investors on a quarterly basis.

The Sponsor Organization “REI Capital Management, LLC” a Delaware LLC, will be the Fund manager, who will receive 1%, of invested capital as a management fee.

Investors receive 100% of every dollar (above the management fee) distributed until and unless the investors have achieved the promised average annual "Preferred Return". Currently 7%.  Investors then receive 70% of every dollar distributed above the "Preferred Return".

REI Equity Management, LLC, the Fund's General Partner, will receive 30% of every dollar distributed above the "Preferred Return".

Each partnership will do business primarily with REI Advisors Group affiliated entities, all at standard market rates and all fully disclosed. These will include, but will not be limited to, real estate brokerage, mortgage brokerage and property management. Initially, the primary benefit and compensation to the REI Organization will be realized through these affiliate entities performing services for the partnerships.

Equity interests in this and subsequent Funds will only be offered to “accredited” investors, as such term is defined in Regulation D promulgated under the Securities Act of 1933.