Founders Capital Tier Investment Structure
Simple. Secure. Transparent.
To protect our investors and ensure every project is managed professionally, all of our flips are developed through a Special Purpose LLC created specifically for each property.
1. Each Project Has Its Own LLC
For every flip, we create a dedicated company (an “SPV LLC”).
Example: 123 Main St Flip LLC.
This LLC:
- Owns the property
- Manages the renovation budget
- Receives investor capital
- Distributes profits at the end of the project
This structure keeps the project legally separate and protects both you and us.
2. You Become a Member of the Project LLC
When you invest, you are added as a Member of the project’s LLC.
This gives you:
- Legal recognition of your participation
- Full transparency
- Access to project reporting
You do not take the risks of personal deed ownership; instead, the LLC holds the property for everyone.
3. Capital Contributions Are Documented
Your investment is formally recorded in the LLC’s documents.
You will receive:
- A Capital Contribution Agreement
- A Membership Confirmation
- A clear breakdown of your return structure
This ensures your investment is legally protected and fully verified.
4. Profit Distribution Is Defined in the Operating Agreement
The project’s Operating Agreement is the legal document that controls:
- Profit distribution
- Preferred returns
- Roles and responsibilities
- Decision-making rights
- Capital management
This agreement clearly defines how and when you receive your profit after the property is sold.
5. Your Personal Assets Are Protected
Because the LLC owns the property—not you—your personal assets remain safe.
The LLC shields all members from liability related to:
- construction
- contractors
- property issues
- legal claims
This is one of the main reasons professional investors prefer this structure.
6. Full Transparency Throughout
Throughout the project, you receive:
- financial updates
- renovation progress
- timeline reports
- sale status
- closing statements
You know exactly how your investment is being used and how the project is performing.
In Simple Terms
You invest capital → we place it into a dedicated LLC → the LLC owns and renovates the property → we sell → you receive your profit directly from the LLC.
Safe. Professional. Clearly defined.