TrustPoint Joint Venture (JV) Program
Investment: $250,000 to $2,500,000

Specifically designed and custom tailored with the specific investor(s) in mind. Usually, there is only one investor per deal but multiple investors can be accommodated in the right situation. More details on this approach can be provided upon request.

The majority of our joint venture projects are handled through a limited liability company entity due to the flexibility of ownership and pass thru tax provisions. For a better understanding of this concept, please review below for the benefits of an LLC and how it can be used to maximize your return.

If a limited liability company sounds like a foreign concept, that's because it is. For years, Germans, South Americans and the French were allowed to have small companies or groups of individuals who enjoyed limited personal liability while operating under partnership types of rules.

It wasn't until 1977 that Wyoming became the first U.S. state to enact LLC legislation. In 1982, Florida followed suit. Now, all states have made it legal, and it's the most popular structure, by far, for a small business. When LLCs finally hit these shores, the big question was whether the Internal Revenue Service was going to tax them as corporations or partnerships. The fuzzy picture came into focus in 1988 when the IRS agreed that an LLC formed under the Wyoming statute was eligible for partnership status. In 1997 the IRS eliminated a complicated series of regulations relating to LLCs. The IRS also gave LLC owners the option of electing corporate-tax treatment. These actions paved the way for more small businesses to elect to do business as LLCs. Most states also allow a sole proprietor to form an LLC.

There are four reasons behind the popularity of LLCs:

Limited liability. The LLC is the only entity (other than a corporation) that has limited liability. Owners are exempt from personal liability for business debts and other legal issues, such as court judgments.

Pass-through taxation. Profits and losses pass through the business and are taxed on the owners' individual tax returns.

Management flexibility. Owners are referred to as members. A member/owner can be an individual, a partnership or a corporation. Each investor/owner has a percentage interest in the LLC. This helps to determine how to split up profits and losses and divide voting rights.

Profit and loss distribution. LLC owners can decide how to distribute profits and losses among themselves. They are not required to divide profits so that they are proportional to capital contributions. They can be split in any manner.

In our particular case, the investor(s) simply provides TrustPoint with their desired parameters for what type of investment they wish to consider in regards to location, minimum return on investment required and number of commitment years.

We use our resources and vast experience to pinpoint ideal prospect deals based on those pre-identified parameters. Once an investment opportunity is located and qualified as a high-quality match, the individual investor has the option to participate in that particular opportunity (or set of opportunities in some cases) or they may elect waiting for another one. It’s their choice.