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Investment Profile

A Lynch Investments acquisition typically has the following characteristics:

Ownership: The property is owned by a separate, single-purpose, limited liability company, whose managing member is Lynch Investments, LLC. Investors are members of the owning limited liability company and have a pro rata ownership interest in that company based upon the amount of their investment.

Financing: Generally, as much as 30% of the total project cost of any one deal is provided by LLC investors (Individuals and/or institutions) and 70% or more of that cost is financed by mortgage-secured debt.

Returns from Cash Flow: Once a property is stabilized (generally six to twelve months after close of escrow), investors are paid all of the cash flow generated at the property up to the amount at which the investors have received a 8% to 10% annualized return on their capital investment (a "preferred return"). Any cash flows in excess of the preferred return are split between the investors and Lynch Investments, LLC (the investors generally receive 50% to 70% of the amount exceeding the hurdle). Cash flow distributions are paid quarterly.

Profits from Sale or Refinance: Investors are paid 50% to 70% of the profits from the sale or refinance of the property. Lynch Investments, LLC receives the balance of these profits.