Full transparency on how we structure our investments to maximize returns while protecting stakeholder interests
Each entitlement project will use a Single Entity Limited Liability Company (SELLC). TrendAmerica Land Entitlements LLC will be the Manager of the SELLC. Investors will be Members of the SELLC, holding membership interests proportionate to the percentage that their investment represents of the total funds raised for a project. The Manager handles day-to-day operations and the entitlement process; investors are passive, with consent rights limited to the major decisions described below.
Per project investment threshold
Investors receive 100% of all project profits until they earn a 20% annualized return on their investment, then share in uncapped upside above it, as described below
Above the preferred return, you share in profits with no cap, stronger project performance means more for you
Our compensation is weighted toward outperformance, so we earn more only when investors do
Our model is designed around a simple principle: you get paid first, and we only win bigger when you do. Investors receive 100% of profits until they earn back their capital plus a 20% annualized preferred return. We share in the profits only after you have cleared that hurdle.
Above the preferred return, the upside is uncapped. The stronger a project performs, the more everyone earns, and our compensation is weighted toward that outperformance rather than a fixed cut off the top. That structure keeps our incentives pointed in one direction: maximizing your return on every deal.
The 20% preferred return is a target, not a guaranteed payment or a debt of the Manager. Returns depend on each project's outcome and are not guaranteed. The complete economic terms, including the profit-sharing arrangement between investors and the Manager, are set out in the Private Placement Memorandum and operating agreement for each project.
The Manager handles day-to-day operations and the entitlement process. Investors are passive stakeholders and not actively involved in routine project management operations.
Below are TrendAmerica Project Funding Requirement Examples to Entitle Land to Tentative Subdivision or Plan Development Map Approval. Investor capital funds the land acquisition deposits and entitlement costs; the balance of the land purchase price is paid from the homebuilder's proceeds at the double-escrow close:
| Land Purchase Price | Entitlement Funding Required | Purchase Contract Extension Deposits | Total Investment |
|---|---|---|---|
| $1,000,000 | $200,000 – $250,000 | $50,000 – $75,000 | $250,000 – $325,000 |
| $3,000,000 | $250,000 – $300,000 | $75,000 – $100,000 | $325,000 – $400,000 |
| $5,000,000 | $350,000 – $400,000 | $100,000 – $150,000 | $450,000 – $550,000 |
| $7,000,000 | $400,000 – $500,000 | $150,000 – $200,000 | $550,000 – $700,000 |
| $10,000,000 | $600,000 – $700,000 | $200,000 – $250,000 | $800,000 – $950,000 |
The figures above are estimates only, based on the past experience of TrendAmerica and its principals; the actual funding required is determined on a project-by-project basis and may vary across the funding requirement spectrum shown. The above land acquisition transactions include deposits which are credited against the Purchase Price. Those amounts are accounted for in the Total Investment figures estimated above. The above figures are estimates based upon experience, keeping in mind that every deal is unique and different.
We structured our compensation so our success depends on yours. The Manager's primary reward comes from its share of profits above your preferred return, not from fixed fees skimmed off the top. The harder a project performs, the better the outcome for everyone at the table.
That alignment is the whole point: we are most rewarded when investors do best, so every decision is pointed at maximizing your return. Complete details on Manager compensation and any fees are provided in the offering documents for each project, where they are disclosed in full before you invest.
In California, a Tentative Subdivision or Planned Development Map once approved by a City or County does not expire for 2 years thereafter, and can be extended an additional 3 years if needed, for a total of 5 years.
The Homebuilder will be solely responsible for taking the approved Tentative Subdivision or Planned Development Map to a Final Map, which is a civil engineering process requiring City or County Planning Department Staff plan approval and typically takes 6-9 months.
Some new homebuilders' underwriting criteria may require closing upon administrative approval of a Grading Plan after Tentative or Planned Development Map approval, which adds roughly 6 months to the closing process.
We use a Double Escrow Close structure where we use the new Homebuilder's purchase money — not Investor Funds — to pay the underlying land owner when we roll-over the deal. Investor capital funds the deposits and entitlement costs, and the balance of the land purchase price is paid from the homebuilder's proceeds at the double-escrow close.
This approach provides two key benefits:
The conditions and terms in the TrendAmerica/Homebuilder Sales Agreement we execute with the Homebuilder will typically require closing 30-60 days after execution of the Sales Agreement.
Contact us to discuss investment opportunities and current projects
Contact TrendAmericaThis material is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security. Any offer or sale will be made only to accredited investors as defined under Rule 501 of Regulation D, in reliance on Rule 506(c), and only through a confidential Private Placement Memorandum, operating agreement, and subscription agreement for a specific project. Accredited status will be verified as required under Rule 506(c). Each project is a separate, single-purpose entity and a separate investment. These investments are illiquid, long-term, and high-risk, and an investor could lose some or all of their capital. The preferred return and any target returns are objectives only and are not guaranteed; if a project does not generate sufficient cash, they are not paid. The prior experience and transactions of TrendAmerica and/or its principals are not indicative nor predictive of future results. Prospective investors should rely solely on the offering documents and consult their own advisors. TrendAmerica is not a registered broker-dealer or investment adviser.