You are purchasing fractional ownership in a rental property. This is structured as a membership interest in a single-asset LLC that holds title to the property, granting you a pro-rata share of that LLC's net rental income.

The 16% first-year return is a target return, not a guaranteed one. It's funded from rental income and, where income is insufficient, from company reserves — but it is not insured, escrowed, or backed by any third party.

There is no third-party guarantor. Returns are paid from the operating income of company-owned properties and, if needed, from company reserves. Investors bear the risk that property performance may not meet the targeted return.

If rental income falls short of the target in a given year, the shortfall is shared pro-rata across all owners rather than absorbed by the company or a single investor. Rental performance can vary with local market conditions; past or projected market growth is not a guarantee of future results.

In year six, we anticipate liquidating the asset. Assuming average capital appreciation of approximately 10% per year (a projection, not a guarantee), the model estimates an additional ~50% return on your original invested capital at that point. Actual appreciation, and therefore the maturity amount, will depend on market conditions and could be lower than projected — including the possibility of no bonus or a capital loss.

A $5,000 investment is projected to return approximately $7,500 at maturity (year six), before taxes. This is a projection based on the appreciation assumption above, not a guaranteed amount, and is in addition to annual distributions paid along the way.