How we Partner

Business Model Overview

Halsey Development Group acquires, improves, and manages income-producing real estate. If this sounds simple, that’s because it is; it’s a traditional real estate investment business model. To acquire these properties, we partner with individuals who provide capital in exchange for partial ownership in the asset and access to the potential returns. Returns come from three main avenues, the first is rental income after expenses and debt service (cash flow), the second is appreciation of the equity of the asset both through property improvements and market appreciation, and the third is loan paydown as the rental income pays off the debt.

Value Proposition

A good real estate investment is simple, but not easy. The key is finding and putting together a good deal, then operating it effectively and efficiently, and we know how to do that. Limited Partners get access to this, with the following value proposition:

1. Diversification via low risk alternative asset class

2. More compelling potential returns than publicly traded real estate funds/REITs

3. Access to commercial real estate transactions for comparatively low cost of entry

4. Experienced, transparent operator

5. High yield opportunities via annual returns

Partnership Structure: Syndication

We operate under a model called Syndication, a partnership structure that treats each investment (in our case each real estate asset) as a standalone partnership with a dedicated LLC. In the partnership, there is a syndicator (also known as the “Sponsor” or “General Partner”), and the Limited Partners. The General Partner (Halsey Development Group LLC) acquires, operates, and manages the investment. The Limited Partners provide capital towards the investment and receive returns if the investment is profitable both annually through disbursements via rental income and upon sale/exit after a hold period. The Limited Partners are silent, while the General Partner makes all decisions related to operating the property. The specific terms of the partnership can be found in the Private Placement Memorandum for each individual opportunity.

Favorable Incentive Structure for Limited Partners

Aside from an ethical and moral obligation, the General Partner is also incentivized to perform well and deliver returns to the Limited Partners by three key factors:

1. Incentivized Return - Deal structure pays the Limited Partners first and only pays the General Partner if the property performs well enough to have additional income

2. Relationships & Reputation - the General Partner is dependent on successful projects to continue to run a real estate business

3. “Skin in the game” - the General Partner is also personally investing capital into each deal

Legal Framework

These partnerships operate under the SEC Private Placement rule 506(b) of Regulation D, a “safe harbor” under Section 4(a)(2). Under this provision, non-accredited investors can participate in the investment if they are properly informed on the merits and risks; the General Partner must provide disclosure documents, financial information specified in Rule 506, and be available to answer questions from prospective purchasers (Limited Partners).

Each transaction is supported and reviewed by a lawyer.