Limiting the deductibility of capital losses. Excess capital losses relative to capital gains can be deducted from the ordinary income of a non-corporate tax liabilit, subject to an annual deduction of $3,000. A non-corporate taxpayer may experience excess capital losses for an indeterminate period. Our manager Cardone Capital, LLC, will entrust management responsibilities to Cardone Real Estate Acquisitions, LLC (CREA). CREA has one (1) senior employee and five (5) employees. Currently, Grant Cardone is the head of our manager and CREA and devotes a significant part of his working time to our company without pay. For more information about our staff, see « MANAGER, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS. » First, Mr. Cardone will coordinate all of our activities. Cardone Capital, LLC or their subsidiary CREA provided working capital to cover our initial expenses.

We plan to establish consultants, lawyers, accountants and other staff if necessary. We believe that the use of unpaid staff allows us to spend our capital resources as variable costs, as opposed to fixed operating costs. In other words, if we do not have enough income or cash at our disposal, we will be better able to use only the services necessary to generate revenue rather than having employees. All expenses related to the offer are billed to the company. For example, all costs associated with raising capital, such as pinching, transfer, marketing, auditing, legal and technology royalties, are borne by the company. However, the costs related to the general administration of the company and the administration and acquisition of the real estate are the responsibility of the administrator, with the exception of the activated charges related to certain real estate properties. The Company offers 50,000 Class A interest at an interest rate of US$1,000 per interest through a Tier II offer under Regulation A, also known as « Reg A, » and intends to sell the shares directly to investors and not through registered dealer-dealers who collect commissions. The minimum investment is $10,000. The maximum amount to be put in place in the offer is $50 million.

Investors who register capital in the company, after acceptance by the managing member of their subscriptions A Class A member in the company.