Legacy Security Fund

The strategy of the Legacy Security Fund LLC is to provide a lower-risk real estate fund for investors seeking shorter-term liquidity options. The Fund expects to finance the first lien deed of trust loans for single-family homes and up to four-unit properties. The Fund intends to focus on assets in the Western United States.

The Fund’s objective is to preserve and protect each Member’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.

Class A shares will have a 30-day holding period. Investors can then give at least 30 days’ notice for a redemption which would be effective the first day of the month following the 30-day notice period.

Class B and Class C shares will have a twelve-month 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 2006 and have not had any loss of investor capital since our inception. Our default rate has been less than 2% since inception, and we have had zero foreclosures. Previous results are not an indication of future performance.

Yes. Investors seeking a short-term holding period will be interested in Class A shares which have a 30-day holding period and pay an annualized 6.25% interest rate.

Those looking for a longer holding period will invest in Class B or C shares. Investors in Class B shares will have a 12-month holding period and pay an annualized 7% preferred interest rate monthly and quarterly profit-sharing distributions. The first $10,000,000 subscribed into Class B shares will receive 80% of the quarterly profit-sharing distributions. Once $10,000,000 is reached, Class B shares will permanently close and subscriptions will go into Class C Shares.

Investors in Class C shares will have a 12-month holding period and will receive an annualized 5% preferred interest rate monthly as well as 70% of the quarterly profit-sharing distributions.

Investors in Class A shares will receive an annualized interest rate of 7%. The net annualized targeted return for investors in Class B shares is 6-8%.

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 on the first of the quarter. 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, the income in one of our other funds, the Legacy Opportunity Fund, has been 100% Qualified Business Income (QBI). We cannot guarantee that the income generated in the Legacy Security Fund will be 100% QBI. The determination of the Fund’s Qualified Business Income will be done 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 regard 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 will have income sourced from Idaho and possibly other states throughout the Pacific Northwest. 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. Currently, we are awaiting Idaho’s updated 2022 Pass-Through Entity/Nonresident Owner Agreement form. Once available, we will forward it to any non-Idaho resident investor holding their investment in a joint or individual account. We recommend that all investors, including entities such as trusts and LLCs, consult your tax advisor for tax guidance. See https://tax.idaho.gov/i-1039.cfm for more information.

The Fund will be audited by outside CPAs on an annual basis once it has reached $5,000,000 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.