The Real Deal New York

  • SPONSOREDEastern Union’s Equity Servicing Division Launches Commission-Free Service to Help Owners Raise Equity

    Presented by Eastern Union

     

    This year at ICSC, Eastern Union is bringing something new to the table.

    Eastern Union Funding’s equity servicing division is introducing LP Servicing, an industry-first service that works hand-in-hand with real estate owners to give their current limited partners (LPs) the ability to syndicate their investments to their network of accredited friends and family, thereby maximizing investment potential.

    The commission-free service also allows owners—acting as general partners (GPs)—to raise more funds in a shorter time frame using the same network of investors with which they have an established relationship, by introducing their current investors to Eastern Union’s LP Servicing.

    Additionally, the limited partners stand to profit more while investing with their network of accredited friends and family rather than going solo. That means limited partners can achieve a higher IRR for the same investment without having to take on more financial risk, making the investment more attractive.

    “The service is a win-win-win for each party involved,” says Ira Zlotowitz, President of Eastern Union. “It also minimizes the difficulty and discomfort that can arise when doing business with friends and family.”

    Through LP Servicing’s structure, the limited partner gets another revenue stream, a strong investment and better IRR. The accredited investor can access deals that may have been inaccessible due to minimum investment thresholds. And, the accredited investors also get to invest alongside a limited partner they know and trust, and with whom they share “skin in the game”. For the general partner, LP Servicing can help bring in more equity through their current limited partners with minimal effort and no additional costs.

    LP Servicing walks limited partners through the entire process start to finish. They have commissioned their council to provide detailed information and explanations about legal issues, to facilitate a limited partner’s legal compliance and to help him determine when to seek counsel. LP Servicing also assists in establishing an LLC, providing form limited liability company agreements and subscription agreements, managing Form D and state “blue sky” filings, and distributing returns.

    All third-party costs are shared proportionally with the accredited investors based on the dollar amounts invested. Accredited friends and family in the investment pay LP Servicing an annual administrative processing fee. When the accredited investors receive their principal back, LP Servicing will reduce the annual fee and the LP receives a 20% promote from the accredited investors.

    Ira Zlotowitz, who is personally running LP Servicing, will be in Las Vegas May 22-24 at ICSC/RECON. Please visit Eastern’s booth, C159F, where he will explain and demonstrate firsthand how we can help you raise equity easily and efficiently. Stop by our booth, or email cgornish@easternuc.com for an appointment.

    Interested general partners, limited partners or accredited investors can also contact Ira at 917 597-2197 or at iraz@easternuf.com with any inquiries or to get access to Eastern’s deal flow.  For more information visit www.easternuf.com/equity/lpservicing