HOW DOES TEXAS PROSPERITY WORK?

Texas Prosperity Commercial is a private Real Estate Investment Company actively investing (owning, operating and funding) in multiple assets classes (Land, Industrial, Retail, RV Parks, Mobil Homes and Multifamily) across multiple core markets. TPC enables Accredited and Sophisticated investors to come together to invest in a common project. With TPC, investors are able to partner with full-time real estate investors. Derisk portfolio by investing across asset classes and multiple markets.

Texas Prosperity Commercial works with both Accredited and Sophisticated Investors

The SEC defines an accredited investor as anyone who:
A) earned income that exceeded $200,000 (or $300,000 together with a spouse or spousal equivalent) in each of the prior two years, and reasonably expects the same for the current year, OR
B) has a net worth over $1 million, either alone or together with a spouse or spousal equivalent (excluding the value of the person’s primary residence), OR C) holds in good standing a Series 7, 65 or 82 license.

The commission defines a sophisticated investor as an individual or institution that “must have sufficient knowledge and experience in financial and business matters to make them capable of evaluating the merits and risks of the prospective investment

The minimum investment is typically around $100,000.

Our goal is to purchase our commercial real estate assets below market value so that we build instant equity into the asset the minute we close on the deal. Once the property is under contract, but prior to when we close on the purchase, we present our private money lenders (PML’s) with an opportunity to invest. This means our PML’s will fund the purchase price, the renovation costs (or both) and/or all of our holding costs. Our PML’s also have an opportunity to earn double-digit returns, unlike the returns we typically see in the bank, stock market or retirement accounts, with a protected, secured and insured asset.

We’ll provide a promissory note summarizing the terms and conditions of your loan, I’ll obtain a builder’s risk insurance policy listing you as a beneficiary/loss payee and as I mentioned earlier, I’ll also record a mortgage against the property with your name attached to it so that I can’t sell the property without your written consent.

Investing with an IRA is a popular way to invest with Texas Prosperity Commercial. We make investing with your IRA a seamless process and we have worked with dozens of IRA custodians. Connect with us for more.

Texas Prosperity Commercial purchases different types of asses including Land, Industrial, Retail, RV Parks, Mobil Homes and Multifamily real estates.
Here are some examples of a few:
Typical Multifamily assets with at least 50 units or more.
Typical Industrial is between 10,000-30,000 SQFT leasable space.
Typical Land is 5-200 acres tract for new development.
Details for each investment opportunity is shared as they become available.

Texas Prosperity Commercial always invests side by side with our Investors. We make our money when we buy. That said, when we buy below market value and build instant equity in the property, when we obtain wholesale pricing from our contractors and when we work with a team of industry experts, we are able to provide our investors with higher returns. Also, depending on the deal, we are able to eliminate the realtor commissions, broker fees, loan fees, etc.

Each real estate investment opportunity is different. Depending on asset class, TPC typically aims to deliver our partners double-digit overall returns.
For Multifamily, we target in excess of 10% per year of overall return.
For Land, we target in excess of 15% per year.
For Industrial, (Cash Flow), we target in excess of 8% per year of Cash flow.
All of our investment opportunities include financial projections prepared by Texas Prosperity Commercial and Partners, based upon our expertise and educated assumptions. While we like to provide conservative projections, it is required that each investor understands that past performance does not indicate nor guarantee future results.

In the commercial real estate investment context, risk is anything that creates volatility in a property or portfolio’s expected or actual returns. Lear More about Risks of Investing.

You are always welcome to visit the property that you have invested in in person. We also make all the details for each property available online for your review.

Texas Prosperity Commercial distributes earnings to our partners on a quarterly basis.

We make our money when we buy. That said, when we buy below market value and build instant equity in the property, when we obtain wholesale pricing from our contractors and when we work with a team of industry experts, we are able to provide our investors with higher returns.  Also, depending on the deal, we are able to eliminate the realtor commissions, broker fees, loan fees, etc.

I can’t guarantee anything. Worst case scenario, you have to be O.K. never seeing this money again. HOWEVER, the probability of that happening is low for the reasons we’ve already discussed in all of the credibility pieces. Remember that we buy our properties below market value, our strict buying criteria is based upon historical data, we work with a team of experts who have been in business for X years and we focus on strategic markets where demand is high and inventory is low. All that said, on the rare occasion that the deal does go south, all of the projected profits are gone, and I’m no longer able to cover your investment out of pocket, then you have a legal right to foreclose on me since I will be recording a mortgage against the property with your name on it. But most of the time when deals “go south,” we simply don’t make as much profit as we forecasted.

If you’d like to keep your money working for you, then we can roll your principal and interest earned into a new project and create a new set of loan docs. Many of my lenders do this.

Otherwise, I’ll pay your principal and interest back as soon as the property sells as a part of the closing process.

Nope! We pay for all closing costs, escrow fees, attorney fees and wire fees.

No. Your funds will be attached to one property secured by a mortgage and you’ll have your own separate set of loan docs. On occasion, depending on the size of the deal, I may have multiple lenders on one deal but each lender will have their own separate set of loan docs and each lender will be assigned a separate lien position.

Depending on the deal, most of my contracts are set up with a 3-to-5-year term but my goal is to pay you back ASAP. As soon as the renovated property sells, you will receive your principal plus interest back in one lump sum at closing. Your name and balance due will be captured on the HUD statement as a lender. Also, I will take care of filling out all of the loan docs on your behalf so that all you need to do is review and approve them. I will also cover your attorney fees if you’d like him/her to review the loan docs. They are very straightforward and easy to read.

I’d be more than happy to open up an escrow account with a title company and I can draw from the account as needed. I’ll cover all of the fees associated with setting up this account as well. Or, since I travel so much and prefer not to wait until 1-2 days prior to closing, you can also wire the funds directly to my business checking account which will be solely dedicated to your property. I will also provide you with view access to the account so you can log in and see where the funds are 24/7. Also, I will begin to accrue the interest as soon as the wire is processed so that we don’t have to wait until 1-2 days prior to closing. This is my preferred method but I’ll follow your lead.

The proof is in the paperwork we used to protect, secure and insure each of my private money lender’s investments. All of the contracts have been reviewed by our attorneys (your attorney can review them as well and we will cover that cost) and the recorded mortgage which secures your lien position will be signed and notarized by the County Clerk and Time & Date stamped at the time of filing. Also, as we continue to educate you on our strict due diligence process which includes 12 different credibility pieces, your confidence in investing with us will continue to go up.

Like all investments, there is always an element of risk associated in the transaction and there are no guarantees. However, our job is to minimize that risk. When we borrow money from the bank, they ask us to sign a personal guarantee, but they only offer us a 3.5% ROI and a 10-to-30-year term, fully amortized. We would be more than happy to guarantee the note if you prefer the personal guarantee with a 3.5% interest rate as opposed to 12%.

Every year, my team will provide you with a 1099 form for you to share with your CPA or tax consultant. The statement will show how much interest you have earned for the year. It will be categorized as “Interest Income” and you’ll need to pay tax on it unless you are getting paid on money you loaned from your “Self-Directed Retirement” account.

You’ll get paid whether we do or not. Our job is to make this a passive investment for you. If the property doesn’t sell “on time” then once the right buyer comes along, we’ll end up making a smaller profit. This is something we also discussed when we walk you through our property analysis template. If you look at the projected profit, you’ll see how much that will drop month over month as the house sits on the market. At the end of the day, my job is to ensure you still get paid. Even if I don’t profit on the deal, my goal is to cover the loss out of pocket.

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