Legacy Opportunity Fund II

The strategy of the Fund is to create a highly diversified portfolio of small balance real estate-based assets to produce attractive risk adjusted returns. The Fund expects to spread its risk in a myriad of ways; geographically, by asset type, by property type, by sponsors, by duration of debt term, by exit strategy of each asset, and by investment size. The Fund intends to focus primarily on assets in the Pacific Northwest and, to a lesser degree, the Western United States.

The Fund’s objectives are to preserve and protect each Member’s and Note Holder’s contributed capital while providing consistent annualized returns.

Our funds are open to accredited investors only. Please contact us to learn how you can verify your accreditation to invest with Legacy Group Capital.

The minimum initial investment amount is $50,000 and the minimum additional investment amount is $25,000.

Subscriptions will have a two-year lockup period. Once through lockup, an investor can give at least 60 days’ notice for a redemption to be processed effective the first of the next quarter.

We started our first fund in 2008 and have not had any loss of investor capital since our inception. Our default rate is less than 2% since inception and we have had zero foreclosures. Previous results are not an indication of future performance.

Yes. The first $10,000,000 in subscriptions were issued in Class A shares which pay investors an annualized 6% preferred interest rate plus 80% of the quarterly profit-sharing distribution. Class A shares are now permanently closed and all subscriptions are done in Class B shares. Investors in Class B shares receive an annualized 6% preferred interest rate plus 70% of the quarterly profit-sharing distribution.

The Fund may choose to issue short-term notes with interest rates ranging from 2% to 7%, depending on the investment size and duration of the Note maturity. Please contact Legacy Group Capital for information on short-term notes.

The targeted annual net return for the Fund is 8-12%.

No, the Fund cannot accept 1031 Exchange proceeds.

Yes, the Fund can hold a maximum of 25% of the Fund’s total capacity in retirement assets. The Fund will be subject to UBIT (Unrelated Business Income Tax) so you should check with your tax adviser before investing with retirement funds.

Subscriptions into member units are processed the first of the quarter so an investor may receive a Form 1099-INT for any interest earned while their funding payment was in a temporary note awaiting subscription into the Fund. Once in membership units, distributions are reported on a Schedule K-1.

Historically, income in our other funds has been 100% Qualified Business Income (QBI). We cannot guarantee the income generated in the Legacy Opportunity Fund II will be 100% QBI. The determination of the Fund’s Qualified Business Income will be made each year by our outside tax advisors and will be reported on Schedule K-1. It is the member’s responsibility to contact their tax advisor with regards to the implications of the Qualified Business Income (QBI).

The Fund manager, at its discretion, may invest in projects and income sources in a given year which may result in a filing requirement for various states throughout the United States for members. The Fund may have income sourced from Idaho, Colorado and possibly other states throughout the Pacific Northwest and it will be the responsibility of the members to contact their tax advisors for tax implications and filing requirements based on the K-1s issued by the fund.

Note Holders will receive a Form 1099-INT for the interest paid.

The Fund will be audited by outside CPAs on an annual basis once it has reached $20,000,000 in capital raised or as required by a state’s regulations. The audit shall be available to investors upon request.

In addition, the Fund has retained Verivest, LLC as the Fund’s third-party administrator. Verivest will conduct a monthly review of the Fund’s financial activity, prepare investor statements and prepare investor distributions. Verivest will prepare the Form 1099-INT statements but an outside CPA will be retained for the Schedule K1 preparation.