Frequently Asked Questions

Puerto Rico Real Estate Fund LLC acquires, develops, and operates real estate projects of various scales (primarily subdivisions, residences, and multifamily buildings) and allows investors to participate in its growth by acquiring equity interests in the company.

In short: We do not invest in third-party projects. We develop our own projects and allow investors to participate directly in the returns generated by the real estate portfolio.

The investor participates by acquiring a Membership Interest in Puerto Rico Real Estate Fund LLC. This makes them a co-owner, in proportion to the amount invested, of all current and future assets of the company.

In return, investors receive an annual Preferred Return of 9–11%, depending on the class of participation acquired.

In summary:

• You purchase a share in the company.
• You become a co-owner.
• You receive a preferential annual return backed by real estate assets.

The company develops projects backed by land and real estate assets valued at over USD $16 million, according to certified professional appraisals (Click here to access the appraisal).

By investing, participants obtain ownership in an entity backed by real assets, whose value increases as developments progress and construction is completed.

In addition, investors are the first to get paid. Preferential Return means that investors get paid first. The owners of the company only get paid after all preferential returns have been paid.

And they will also receive:

• Access to an exclusive investor portal.
• Periodic reports.
• Real-time videos of the progress of the works.
• Updated documentation on the progress of each project.

We primarily invest in residential developments, planned communities, housing communities, and high-demand construction projects in Puerto Rico. We are currently developing 510 homes in three strategic municipalities in the southwest of the island: Guánica, Lajas, and San Germán.

Yes. Our corporate structure is designed to receive capital from investors in Argentina, Paraguay, Chile, Mexico, Colombia, and the rest of Latin America. The process is simple, legally secure, and supported by our team.

DocThe current minimum amount is USD $50,000, but varies depending on each class. See the Returns section.

Upon investing, the partner receives complete documentation for their support:

• Operating Agreement
• Subscription Agreement
• Private Placement Memorandum (PPM)
• Certificate of participation
• Project Executive Summary
• Appraisals, deeds, financial statements, and other relevant documents

Investors receive a preferential return of 9-11%, which means that before distributing any overall profits from the project, investors are first paid that 9-11% annually on their invested capital.

Only after this preferential return has been met are the remaining profits distributed. This model protects the investor and guarantees them priority access to the project's cash flows.

Our main developer, Ramón Misla Villalba, has over 30 years of experience and has built more than 3,000 homes in Puerto Rico.

See developer experience

Puerto Rico offers a unique investment opportunity backed by three active and verifiable sources of demand:

A clear, secure, and fully digital process:

1. Step 1. Register on the platform: Create your account with your basic information and access the Investor Dashboard.
2. Step 2. Review the documentation: Download and review key documents:
   • PPM (Private Placement Memorandum): explains the risks, the structure of the Fund, and the opportunity.
   • Operating Agreement: Fund operating rules and investor rights.
   • Executive Summary: clear summary of the opportunity.
   • Subscription Agreement: a contractual document that formalizes your intention to invest.
3. Step 3. Sign and upload the Subscription Agreement: You can sign it digitally or upload it signed from your Dashboard. The investment is only confirmed once PRRE Fund reviews and countersigns it.
4. Step 4. Complete the KYC/AML process: Upload your ID, proof of address, and other required information. This process verifies your identity and complies with international anti-money laundering regulations.
5. Step 5. Wait for final verification (5 business days): Our team will validate all documentation. Once approved, you will receive the countersigned Subscription Agreement.
6. Step 6. Transfer the funds (within the next 10 days): Once the Subscription Agreement has been countersigned, you have 10 days to make the transfer to the authorized account.
7. Step 7. I received your Certificate of Membership Interest: Once the deposit has been confirmed, we will issue your certificate attesting to your participation in the company.
8. Step 8. Begin your Preferred Return: When the First Close is declared, your capital will begin to generate the preferential return corresponding to your investment class.

Our portfolio of projects has extraordinary support thanks to its location within the United States federal Opportunity Zone program.

The Opportunity Zone program is an incentive created to stimulate investment in areas with high potential for economic development. Puerto Rico is the jurisdiction that benefits the most in the country: approximately 98% of the territory is designated as an Opportunity Zone, making the island one of the most attractive destinations within the U.S. legal framework.

The three projects —Valle Tania, Estancias del Parra and Paseo del Valle— are located within these zones, so they fully qualify for the tax incentives.

This means that projects receive tax credits equivalent to 15%–25% of the construction cost, which can:

• to be sold on the market to companies or individuals with tax burdens, or
• to be used to reduce local taxes.

In our portfolio, loans are sold directly, generating additional cash income exceeding USD $7 million and potentially exceeding USD $14 million.

These revenues significantly strengthen the financial structure, improve cash flow, and reduce risk for investors.

It is a fixed annual percentage paid to investors before company owners.

It means that:

• The investor always gets paid first.
• The manager and owners only get paid after meeting the preferred return.
• If the return is not paid in a given year, it is accumulated as a “preferential accumulated return” (see point 17).

Preferential Return fully aligns the interests of the manager with those of the investor.

Yes. The preferential return is cumulative and compounded.

This means that if, during a given period, the Fund is unable to pay all or part of the preferential return, or if the investor decides not to withdraw the returns, then that outstanding amount is carried over to the next cycle.

As it is a compound return, any accumulated returns (whether due to non-payment or the investor's decision not to withdraw them) are added to the base capital, and the return for the following period is calculated on this new amount. This generates interest on interest.

The minimum term is 24 months.

There is no option to withdraw before the established period.

No.

It is not a promissory note or a debt instrument.

It is a Certificate of Membership Interest, a title that represents ownership within the company.

Preferential Return works as follows:

If the entire preferential return cannot be paid in a given year:

• The outstanding amount becomes the Preferential Accumulated Return.
• It must be paid as a priority in the next cycle.
• The manager does not charge or distribute profits until all preferential returns—both current and accumulated—have been paid.

This ensures that investors remain a priority in the payment structure.

No. Profits distributed to investors are not subject to income tax in Puerto Rico, as the projects are developed under the Opportunity Zones Program in accordance with Law 60.

This benefit applies to both U.S. and non-U.S. investors and is limited exclusively to tax treatment in Puerto Rico. Therefore, it does not replace or eliminate any tax obligations that the investor may have in other jurisdictions.

PRRE Membership Units are not listed on any public market and should be considered a medium- to long-term investment. Any sale or transfer is subject to legal restrictions and prior approval by the Manager.

To invest in PRRE, investors from the United States and Puerto Rico must meet certain legal requirements designed to protect investors and ensure that they understand the risks of a private investment.

In general terms, the investor is required to be considered a Accredited Investor and successfully complete the verification and compliance processes.

PRRE also accepts investments from non-U.S. individuals and entities, provided that the legal requirements applicable to international investments are met.