Plotify is an end-to-end platform. We allow our Members to decode the macro housing market, understand which markets to invest in, make investments in minutes instead of months, add instantaneous optional financing, take away all of the friction of on-going management and tax optimize. We give our Members their time back and deliver enhanced returns through economies of scale.
Our unique Plot structure brings together all the components needed to transact and operate a residential rental property. A Plot is a single residential property, owned by a single SPV, with a single investor. Combining this tradable legal structure with smart technology, investors can instantly acquire an underwritten, cash-flow positive rental property. The SPV, and all aspects related to the property, are managed by Plotify. who arrange services including instant debt finance, property management, insurances, accounting and tax reporting. In the USA, the SPV is in the form of an LLC.
To invest in a Plot, you will need to set up a Member account (see "How do I set up a Member account?"). Once you have set up a Member account, you can browse available SFR properties on our app and select a Plot. When you invest, you're purchasing 100% of the shares within a dedicated LLC for that property. The Plot includes optional financing and full-service asset management, encompassing property management, a flexible reserve fund, insurance, tax optimization, accounting, and compliance. Plotify's unique bankruptcy remote structure ensures the security of your investment.
We leverage the same acquisition platforms, technology, data, and channels as the big institutions such as REITs.
Plotify’s team sources all assets through the lens of buying assets ourselves for the long term. Our team has bought thousands of SFRs over decades. We use multiple channel partners to source assets, and have developed our own proprietary methodology to select markets and properties. We apply discipline, rigor and patience around the deployment of capital. Whilst we can drive purchase discounts because we are a bulk buyer and have strong relationships, there are other key drivers that determine the price at which we are comfortable purchasing.
You are purchasing 100% of the shares of an LLC. The sole purpose of the LLC is to own the title of ONE property. Because you own 100% of the LLC, it is treated as a disregarded entity. All income and expenses flow through to your personal tax return.
The properties we buy to create PLOTs are high quality and in liquid markets. We’ve carefully designed the PLOT structure to remain in good standing regardless of Plotify’s status as a company. The ownership of the property by the LLC remains intact and you will continue to earn income. Each LLC is bankruptcy remote, and there is no cross collateralization of each property or encumbrances.
Customers are projected to make more income through Plotify because of reduced transaction costs, more immediate income, our scale which allows docounted property management, re-leasing, insurance and financing fees. Additionally, we purchase and manage proactively, which typically leads to better bottom line performance.
Plotify is the asset manager of your plot. The role includes hiring and engaging with the property manager, monitoring tenant leases, making decisions on capital expenditures and maintenance, analyzing rental vs. market rent pricing. Additionally, Plotify aggregates all financial data to create monthly and quarterly investment reports and annual tax documentation.
Plotify administers a data and expereince driven Reserve Fund called CARV which is built over time through rental income contributions. Additionally, Plotify provides each Plot with a credit facility to support CARV. To learn more about how our Members benefit from this, please schedule a call.
We have partnered with private lenders to integrate financing into the Plot. Loan options now include interest-only and 30-year options.
Our standard loan product does not require a personal guarantee and only requires information on the asset, not the equity investor. The advantages of this structure, where the loan is being made to the LLC, is that the loan can remain in place when it is sold to another investor on the Plotify marketplace. The next buyer can avoid refinancing.
Yes, if you can find a better rate for a non-recourse loan we will switch. However, we are typically able to secure lower rates from our partners based on scale and our track record.
At the point of investment, USA based Members can choose to invest in a Plot using Retirement Account Funds. In the case of a traditional IRA, Members can invest pre-tax income , generating returns on a pre-tax income instead of after tax income. Income and gains are only taxable at the point of withdrawal from the IRA, which typically is at a lower tax bracket post-retirement. In the case of Roth IRAs, the investment is made using post-tax income , though there is no tax on the gains at exit.
Tax on capital gains can be deffered by taking advantage of the 1031 exchange program offered by the IRS in which a seller can use a Qualified Intermediary to sell a property and buy into another one within a certain time frame. Our Plot structure qualifies for 1031 exchanges.
From an operating standpoint, expenses associated with operating the property can be deducted against rental income, which reduces taxable income. These expenses include operating expenses such as LLC compliance cost, property taxes, property management fees, repairs & maintenance. You can also deduct loan interest if the purchase is financed. Importantly, you can deduct depreciation as an expense, which substantially reduces your taxable income.
