Series Manager, Ricardo Fornesa Jr., is a licensed real estate agent in Texas for many years and have been in business all his life. He is aware that the two most important things to keep in mind about properties are cash flow and appreciation. When buying investment properties, he will always look for cash flow potential and areas that are up-and-coming. He can make use of the MLS (Multiple Listing Service) as Texas Realtor to get a realistic feel for the market he is entering and to spot trends he might be able to take advantage of. He can start with his own neighborhood or one close by, so he can go there again and again (Bell, 2021). He understands that if the property costs $200,000.00, then the monthly rent should be at least $1,400.00 to break even on the cost of ownership ($200,000 x 0.007). Any more is a potential profit and any less, the Master LLC could lose money. If the average rent based on the MLS comparative market analysis (CMA) in rental is less than 0.7% of the value of the average property in a chosen area, Series Manager shall choose to buy a property in different area. The $100,000.00 capitalization can buy two properties with 20% down payment for each investment property with a total down payment of $80,000. Financial statements consisting of Profit & Loss, Balance Sheet, and Cash Flow Statements will be provided to Master LLC Members quarterly. When the two investment properties become cash flowing assets, more potential Sub-Series are expected to join the Master LLC to have separate ownership and financial statements.
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