Overland Development develops projects for its clients and its own account. Accordingly, there are opportunities for investors to participate as equity partners in both client projects and Overland projects. These projects differ in type and risk, but can be very lucrative because an investor gets in on the ground floor of the development and participates in the value added as the project is completed and leased up. Although some investments have yielded very small returns due to economic and market conditions, others have yielded quadruple returns. Investment risk in real estate, like any other form of investment, has the potential to lose money, particularly with the importance of location and market timing. Nevertheless, it has been our experience that real estate investments have the advantages of leverage and favorable tax treatment through depreciation deductions which shelter cash flow while benefiting from market appreciation as the economy experiences reasonable inflationary pressure built into the Federal Reserve’s economic growth psyche. Naturally, the higher the leverage, the more risk involved. Please contact Overland Development for information on specific investment and joint venture opportunities @ Marketing@OverlandCorp.com
Investments are usually in the form of ownership in a limited liability company that owns a specific asset. At the end of each year, the tax benefits and cash distributions after the project matures are passed directly to the investor. Arrangements can be made to structure a specific investment to meet your personal investment goals.
Overland Development particularly specializes in joint venture relationships with land owners. The typical scenario is for Overland to invest cash to cover all of the costs of development, which include such things as architectural, engineering, surveying, legal, city fees, etc. Once the project has been approved for development and a construction loan has been secured, a limited liability company is formed, and the landowner contributes or assigns his land to the limited liability company. Although the landowner is required to take a subordinate position to the construction loan, Overland Development does not share in the profit that is generated until after the landowner has been paid for the cost of the land, at which time, both Overland and the landowner share the profit.
Typically, other than reimbursement for its out-of-pocket expenses and a hard-earned developer fee when the construction loan closes, Overland Development takes no remuneration or profit until after the landowner is paid for the land. This arrangement makes it possible for the landowner to earn a significantly higher return because not only is he compensated for the value of his land, but he receives the benefit of sharing in the creation of value as the project is built and leased up.
There is some added risk to the landowner by participating in the development process, but Overland minimizes that risk by covering all the initial costs of development. This approach creates a win-win situation for both parties: Overland uses its capital to cover initial development costs but does not have to use its capital resources upfront to purchase the land. The landowner also wins by receiving significantly more than the value of the land by participating in the profits of the joint venture.
These joint venture arrangements also create unique opportunities for investors who get in on the ground floor at cost before the property experiences the appreciation that occurs when the property is fully developed and ultimately sold for considerably more than the cost of development.
Please contact Overland Development for information on specific investment and joint venture opportunities @ Marketing@OverlandCorp.com