Welcome to the exciting world of Real Estate Investing!

Before we embark on this journey together, we want to ensure you are well-equipped with essential knowledge about the real estate investment world. To help you navigate our investment opportunities and conversations with ease, we have prepared a glossary of commonly used terms:

Real Estate Glossary:

1. Limited Partner (LP): You, as an investor who provides capital to a real estate project, but does not participate in its day-to-day management.

2. General Partner (GP): The entity or individuals responsible for managing the real estate project and making operational decisions.

3. Passive Investment: An investment strategy where you provide capital but have limited involvement in the management or decision-making processes.

4. Capital Contribution: The initial investment you make in the real estate project.

5. Distributions: Periodic payments made to Limited Partners from the profits generated by the real estate investment.

6. Cash Flow: The income generated from the property after expenses, typically distributed to investors on a regular basis.

7. Equity: Your ownership stake in the real estate project, representing a proportionate share of the property's value.

8. Appreciation: The increase in the value of the real estate asset over time.

9. Cap Rate (Capitalization Rate): A metric used to assess the potential return on investment by dividing the property's net operating income by its current market value.

10. Debt Service: The regular payment of interest and principal on any loans used to finance the property.

11. Due Diligence: The thorough research and analysis performed before investing in a property, including market research, financial analysis, and property inspections.

12. Exit Strategy: A plan outlining how and when the investment will be liquidated or sold.

13. Liquidity: The ease with which an investment can be converted into cash.

14. Property Management: The ongoing operations, maintenance, and leasing activities necessary to run a real estate investment.

15. Tax Benefits: Deductions, depreciation, and other tax advantages associated with real estate investments.

In the coming weeks, we will keep you informed about our investment progress, important updates, and upcoming opportunities. Your trust in us is greatly appreciated, and we look forward to a mutually rewarding partnership.

All the best,

Matt Cruikshank

President, Coastal Tide Capital LLC