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PROVIDENCE REAL ESTATE INVESTMENT GROUP
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Throughout recent history, the real estate market has followed a cyclical pattern. Economists believe we are at or near the bottom of this current cycle, making 2010 the time to acquire valuable real estate. This is an advantageous market for investors and real estate insiders to work as a team and take advantage of this opportunity to acquire prime properties at a fraction of their projected values.
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Geo Enterprises is a Limited Liability Corporation formed by George Potsidis and individuals who want to invest in prime real estate. Geo Enterprises is prepared to identify, negotiate, acquire and manage select properties while at the threshold of the upswing of the real estate market. Investors can benefit by sharing profits while avoiding liability and management responsibilities of the real estate acquired.
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The investment strategy of Geo Enterprises is to purchase sound properties substantially below current market value. This typically occurs with bank owned, or in the process of being bank owned, properties. We will focus mainly on residential properties in Providence's stable and affluent East Side, but will consider all types of properties throughout Greater Providence and Rhode Island. Our search will not be limited to any specific type of residential property. Single and multi-family dwellings, along with condominiums, will be targeted. If there is a solid property that can be purchased below market value or a property with great potential, we will buy it.
Upon acquisition, we will either:
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- Lease the property to generate income to support the hold period, and sell at the time when the projected profit meets our objective
- Make cosmetic and other low-cost improvements to help make a quick resale
- Sell to developers without making any improvements
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In most cases, all three options will be considered and our decision will be based on the best deal available. Having various options greatly reduces the risk of our investments. With our team's knowledge of local real estate pricing and control of the costs to improve and remarket a property, we are confident we will generate healthy returns on properties we select to acquire.
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Key Points of Member Agreement
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Management
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George Potsidis will be the Manager of the LLC. The overall management and control of the business and affairs of the LLC shall be vested in the Manager.
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Duration of LLC
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The LLC will be liquidated when the investment objective is met and income tax obligations are minimized. The expected time period until liquidation is 2-5 years from inception.
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Number of Investors
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We will commence the operation of the LLC with 3-5 investors. We expect the initial capital contributions from the members will total $500,000. It is the goal of the Corporation to raise an additional $1,000,000 of member equity in the following year. We plan to accomplish this with 5 additional members. Each member will own a percentage of the corporation relative to the amount each member invested. The initial members will decide what percentage interest and dilution formula to offer new members.
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Management Fee and Profit Distribution
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All members will receive a percentage of the profit in accordance with their ownership interest in the LLC. The Manager will be paid a fee for the management of the LLC. The fee will be incentive based and will be due only if the venture is profitable. The more profitable the venture, the higher the fee earned.
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For more information or to receive a prospectus, please contact George Potsidis.
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