Eastern Union's Equity Servicing Division Launches Commission-Free Service to Help Owners Raise Equity
NEW YORK, May 10, 2017 /PRNewswire/ -- 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 allows owners—acting as general partners (GPs)—to raise more funds in a shorter timeframe using the same network of investors with which they have an established relationship. Additionally, the LPs stand to profit more while investing with their network of accredited friends and family rather than going solo. That means LPs 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 LP gets another revenue stream, a strong investment and better IRR. The accredited investors can access deals that may have been inaccessible due to minimum investment thresholds. And, the accredited investors get to invest alongside an LP they know and trust, and with whom they share "skin in the game". For the GP, LP Servicing can help bring in more equity through their current LPs with minimal effort and no additional costs.
LP Servicing walks LPs through the entire process start to finish. Using its network of lawyers, LP Servicing provides detailed information and explanations about all legal issues, helps determine when to seek counsel, and makes legal compliance easier. It also assists in establishing an LLC, drafting 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.
Mr. Zlotowitz is personally running LP Servicing. Interested GPs, LPs or accredited investors looking to access Eastern Union's deal flow can contact Ira at 917-597-2197 or at [email protected] with any questions.
About Eastern Union Funding
Founded in 2001, Eastern Union Funding is one of the nation's strongest and most active commercial mortgage brokerage firms and was named by Crain's New York Business in 2014 and 2015 as one of the top 50 fastest growing companies in NYC. Its award-winning team closes over $3 billion in deals annually, specializing in sophisticated debt and equity solutions for small and mid-sized loans across all property types. Celebrating its 15th year in business, the firm launched its groundbreaking Eastern Union commercial real estate app that serves as a digital toolbox for investors to identify and close deals quickly. It is available in the Apple App Store and via Google Play for Android.
Eastern Union is co-headquartered in New York and Howell, New Jersey, with offices in Maryland and Israel. For more information, visit www.easternuc.com.
SOURCE Eastern Union Funding
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