An investor’s capital will be called once Smartland is ready to close on an asset. Once the capital is deployed, the preferred return will begin to accrue. Smartland aims to start distributing a preferred return for each new round of the fund within 90 days of deploying capital and acquiring an asset or when cashflow is available.
For example, an investor whose funds were deployed in July would expect to begin receiving their preferred return no later than the following October. This allows Smartland the time to acquire and stabilize the property.