Types Of Investments

Choose Your Investment Style d

At Lexicon Capital, we believe in full transparency and flexibility when partnering with investors. Below are the three most common investment structures we offer, along with realistic examples of returns and risk-sharing. You choose what works best for your strategy.

Model – Deal-by-Deal LLC Structure

To ensure protection and transparency for both parties, each real estate project will be structured under a new LLC, formed specifically for that deal.

Ownership & Structure

• This LLC will be co-owned by:
  • You (the Investor) – holding 30% equity
  • Us (Lexicon Capital LLC) – holding 70% equity
• The LLC will be created with both names, and all contracts and titles will go under this entity.

Funding Breakdown

• Bank provides 70% of total project cost
• Investor contributes remaining 30%

Monthly Loan Payments

• Until the sale, monthly loan payments will be split 50/50 between the investor and Lexicon Capital.
• This ensures shared commitment during the holding period.

Upon Property Sale

After selling the property, the distribution of funds is as follows:

1. Bank loan is paid off
2. Investor receives back their full 30% capital
3. Both parties are reimbursed equally for all monthly payments made during the holding period
4. Net profits are split:
   • 30% to Investor
   • 70% to Lexicon Capital LLC

Option A: Full-Funding, 50/50 Profit Split

Ideal for: Passive investors who want full ownership of capital invested.

• Investor provides full funding (e.g., $400,000)
• We manage the entire project: acquisition, rehab, resale
• Investor is repaid 100% of initial capital first
• Remaining profit is split 50/50

Example:

• $285K profit → $142.5K investor / $142.5K Lexicon Builders

Option B: Split Capital / Risk-Based Profit Split

Ideal for: Investors willing to fund acquisition only

• Investor funds purchase (e.g., $300K), we fund rehab
• Investor is paid back original investment + 10% fixed return
• Remaining profit is split 60/40

Example:

• Investor gets $300K + $30K return = $330K
• Remaining $355K → You = $213K / Investor = $142K

Option C: Fixed ROI (No Profit Split)

Ideal for: Silent investors who prefer guaranteed return

• Investor provides capital (e.g., $400K)
• We agree on fixed ROI (e.g., 15–20%)
• Investor receives guaranteed return (e.g., $80K)

Which Option Is Right For You