LIBRARY

Glossary

Limited Liability Company Investor (LLC): Investors generally invest with us as a passive member of a property specific LLC. Investors can use capital from a variety of sources to purchase a percentage interest in the LLC. Cash flow and profit participation are based on the percentage interest in the LLC, as well as the investors’ share of depreciation. The LLC provides investors the same benefits of direct ownership with added liability protection.

Tenant-In-Common Investor (TIC): On a very limited and select basis, OREP may make available fractional ownership interests. These fractional interests will be reserved for larger investment amounts (generally in excess of $250k) and for investors seeking to use a 1031 exchange to fund their interest. TIC investors will be governed by a separate Tenant-In-Common agreement and may be required to execute the note and deed of trust from the lender. TIC investors will also be required to form a Single Purpose Entity (SPE) LLC prior to the close of escrow.

Self Directed IRA’s and 401k’s: Many investors choose to invest with us using their Individual Retirement Accounts or 401k accounts. To do this, investors must have their funds held with a custodian who is authorized to do Self Directed IRA’s and 401k’s. This is a very attractive option for investors who don’t need immediate cash flow, are seeking beneficial tax treatment on cash flow and gains, and generally have a longer term investment horizon.