Outlook Investment Group was formed to syndicate and collaborate on investment opportunities with Outlook Development Group. Together, we have a total of over 500 investors and partners that have syndicated on over 100 investment opportunities since 2004. These opportunities include commercial real estate development and acquisition projects, private equity and venture capital opportunities.
How do the investments and returns work?
Once an investment group for a particular property or company is formed, we create an LLC and that LLC is filed with the IRS. Each member of the group is a member of the business and there is a corresponding operating agreement. A tax return is filed each year and each member receives a K1 statement to file with their own individual return.
Here’s a generic, basic example of how we can generate great returns. Imagine that Outlook Development Group finds a solid investment property or company to purchase, or invest in, for 10 million dollars. This may require a down payment, or equity injections, of 30% or $3,000,000. Rather than put all of the money up, Outlook Development Group, as the general partner, looks for partners to invest in the property.
Outlook Development Group might put up $600,000 of the total down payment, or equity needed, and that leaves another $2,400,000 to raise. Outlook Development Group syndicates that amount. That’s where Outlook Investment group comes in. Outlook Investment Group will raise the remaining equity, or a percentage of the remaining equity (based on demand), and joins as a limited partner. We do not sign on any debt. We find people or companies that are interested in the investment opportunity and invest via a single-purpose entity.
The returns essentially flow through a distribution waterfall that starts with Outlook Development Group as the General Partner. Outlook Investment Group may be a General Partner in some instances depending on the investment opportunity. All preferred returns and equity are paid back to investors first and then excess cash flows are split with the GP. This is the same for all investments that we place.