Corporate Structure

There is a Single Purpose Entity in the form of a California LLC that is created for each project. The entity is created with the purpose of acquiring the property, holding title to the property and doing the necessary construction project and selling the property upon completion of project. The single purpose entity is managed by Aron Developers Inc. Our crowd-funding investors execute a membership agreement with the Single Purpose Entity that gives them economic interest of membership units but minimizes their liability.

Capital Stack

Each project has its own timeline typically varying between 12 months to 24 months. When a project is open to investment, the projected timeline will be provided for that project and investors can decide to invest or not based on that timeline.

We promise a certain return to our crowd-funding investors (e.g. 15% IRR). The promised return can and will likely vary from project to project and is provided to investors before they commit to investing in a project.

Risks

Investments are never risk-free and this investment is not risk free either. However, structurally, our capital goes in first and we get paid last. Crowd-funding investors contractually will receive all their invested capital as well as promised returns before sponsors receive any of our profits or invested capital back.

Paperwork and Agreement

In order to comply with SEC regulations for crowd-funding, we partner with a 3rd party company which ensures that all required Federal and State regulations are complied with. This includes but is not limited to Accreditation Checks, Anti Money Laundering Check, Bad Actor Check. We will deny taking investments from any investor who fails any of the required checks. Investors execute a legal subscription agreement which gives them economic interest of membership units in the Single Purpose Entity in lieu of their investment.