What's involved in finding and acquiring the property? What happens when we close on a property? Who manages the property? Since you are targeting properties with positive cash flow, does this mean I receive money periodically? What happens when it is time to sell? How will an investment with Clarus Property Ventures affect my tax return? What if a tenant slips and falls on our property? Can I personally be sued? What is a 1031 exchange? Why is it so talked about in real estate investing? What kind of investor is a good fit for Clarus Property Ventures?

Clarus Property Ventures begins with economic research, and utilizes the data to determine which markets deserve closer attention. After careful analysis, we select specific markets that it determines will provide the best prospects for cash flow and appreciation over the time horizon of the investment. Once we identify a target market, we then narrows our search to sub-markets that we determine to have a higher probability of outperforming the general target market. At this point, we engage real estate brokers and begin filtering our criteria through specific properties. Once we identify the target acquisition, we enter into negotiation and, if successful, place the target acquisition under contract. During the inspection period, we conduct due diligence on the target acquisition, its competition and the target market. Provided we deem the target acquisition satisfactory to its objectives at the conclusion of the inspection period, we then arrange financing. Throughout this period, we visit the target market and target acquisition multiple times and identify, interview and engage third party vendors who will assist us once we have closed the target acquisition. Once we close the deal, there will be a clearly established plan implemented to increase the performance of the property over the ownership period. This may include a rehabilitation project and most always includes enacting a plan for more effective management, since poor management is a common problem with under performing properties. Upon closing, the plan is activated and the partnership receives updates regarding our progress. As a part of the evolution of our company, we have developed Clarus Property Management, Inc., which manages all new acquisitions as of January 2007. Yes. We pay distributions on a quarterly basis on properties that produce positive cash flow. This means you would receive a check in the mail every quarter just as you would with a dividend paying equity. You will also receive a newsletter updating you on the progress of the property. As part of its asset management responsibilities, Clarus Property Ventures closely monitors the growth of equity in its portfolio properties and we will notify the partnership when we feel we have reached an optimal window for moving our capital into another market or taking money out of the market entirely. At this point, Clarus Property Ventures engages brokers to market and sell the asset. We negotiate offers and oversee the transaction to its close. Throughout this period, we participate in all aspects of the disposition including the execution of a Section 1031 tax-deferred exchange for those parties interested in participating in a subsequent Clarus Property Venture. Since you will be a member of a partnership you will receive a copy of a K-1 partnership return that we will produce with our accountant. The K-1 will detail your percentage ownership of the deal and thus will document your share of the passive income. The K-1 will be prepared so that you may directly import it into your tax return with minimal inconvenience. While there are no absolutes when it comes to legal issues, the primary reason we create single purpose Delaware based LLC's to take title is to limit our liability. The LLC is the entity that owns the property. You, as an individual would not own any property. You would own an interest in an LLC that owns property. In the event of a liability issue on the property, the plaintiff has recourse against the LLC only. Therefore, the limit of liability is all assets within the LLC, which in our case translates into the equity in the property and any cash built up in the reserve account. The reason we form our LLC's in Delaware is that this state's laws offer us the best protection regarding liability claims. A 1031 Exchange, also known as a Like Kind Exchange or Starker Tax Deferred Exchange (named for an investor who challenged and won a case against the IRS) is a transaction under United States law which specifies that if an asset (usually some form of real estate such as land or a building) is sold and the proceeds of the sale are then reinvested in an asset of a similar kind (like kind asset), then no capital gain or loss is recognized, allowing the deferment of capital gains taxes that would otherwise have been due on the first sale. This law is defined under section 1031 of the Internal Revenue Code, 26 U.S.C.ʧÊ1031. A general answer to this question would be that Clarus Property Ventures is a good fit for an investor who has a desire to invest in Real Estate but does not possess either the expertise or the time to dedicate to pursuing it individually. Our experience has shown that our investors fit into numerous niches, but the following examples are some of the general categories: An inexperienced Real Estate investor seeking to utilize our expertise and seek the security of joining a group of partners: There is no minimum amount of Real Estate investing experience that we require of our investors to participate in a deal. For some of our investors, the fact that we are Real Estate professionals who are actively involved in multiple markets is precisely why they seek to invest through us rather than go it alone. An experienced investor who is ready to become more hands off in their real estate investing: We have a number of investors who have invested in various forms of real estate individually and are now ready to assign the duties of finding, negotiating, operating and disposing of properties to a third party. An experienced or inexperienced investor who is seeking to invest in Real Estate while diversifying their risk over multiple properties. When Ian and Tonka Formigle founded Clarus Property Ventures, one of their initial motivating factors was a desire to continue to pursue real estate investing while spreading their risk over multiple properties.The risks that cannot be avoided in each Real Estate investment, such as location risk (both specific location as well as market and sub-market) and liability risk, make a strong argument for spreading out your real estate investment allotment over a series of properties rather than concentrating them into one or two properties.