Legacy Venture Fund

The strategy of the Legacy Venture Fund I LLC is to provide mezzanine financing (2nd lien position) to new and existing real estate development projects. 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 $200,000 and the minimum additional investment amount is $50,000.

The Fund has a 3-year lockup period. Redemptions will be processed effective January 1st and July 1st with at least 6 months’ notice, once the subscription is out of the lockup period.

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.

Investors will purchase Class A shares only.

The Fund has a targeted annual return of 14-19%. The Fund will pay a 12% preferred interest rate plus 70% of the Fund’s profits to investors annually.

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 not use any bank leverage and therefore will not be subject to UBIT (Unrelated Business Income Tax).

The fund will report all earnings and distributions 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 Venture Fund 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.

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.