Frequently Asked Questions

Puerto Rico Real Estate Fund LLC acquires, develops, and operates real estate projects of various scales, primarily residential communities, subdivisions, and multifamily developments, while allowing investors to participate in the growth of the company through equity ownership.

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

Investors participate by acquiring a Membership Interest (equity ownership interest) in Puerto Rico Real Estate Fund LLC. This makes them partners and co-owners of the Company’s current and future assets.

In return, investors may receive a Preferred Annual Return ranging from 9% to 11%depending on the class of Membership Interest acquired.

In summary:

• You acquire an equity ownership interest in the Company.
• You become a co-owner of the real estate portfolio.
• You receive a preferred annual return backed by tangible real estate assets.

As this is a private investment opportunity (Private Equity), Puerto Rico Real Estate Fund LLC cannot legally guarantee returns or future performance. However, the Company implements legal, financial, and operational structures specifically designed to mitigate risk and help protect the interests of its investment partners.

Key Risk-Mitigation Strategies Implemented by the Company Include: 

• Operations conducted under the jurisdiction of Puerto Rico and the United States, providing a stable and well-established legal framework.
• Development of projects denominated in U.S. Dollars (USD), one of the world’s strongest and most stable currencies.
• Preferred Return distribution priority for investors.
• Backing through tangible and identifiable real estate assets.
• Transparency and investor monitoring through a private dashboard with access to reports, documentation, and project updates.
• Potential implementation of Payment & Performance Bonds and Builder’s Risk Insurance to help mitigate construction-related risks.

To learn more about the security structures and risk mitigation strategies implemented by PRRE Fund, click here..

We primarily develop residential communities, planned housing developments, and high-demand real estate construction projects throughout Puerto Rico. The Company is currently involved in the development of more than 510 homes across three strategic municipalities in the southwest region of Puerto Rico: Guánica, Lajas, and San Germán.

Yes. Our corporate structure is designed to receive capital from investors across Argentina, Paraguay, Chile, Mexico, Colombia, and the rest of Latin America, the investment process is designed to be simple, legally structured, and supported by our team throughout each stage of participation.

The current minimum investment amount is USD $50,000; however, the minimum may vary depending on the selected Membership Unit class. Please refer to the Returns section for more details.

Once the investment process has been completed and approved, the investor will receive documentation formally confirming their participation as a member of Puerto Rico Real Estate Fund LLC.

Key documents may include:

• Countersigned Subscription Agreement
• Membership Unit Certificate corresponding to the acquired interest
• Quarterly reports
• Operational and financial updates from the Company
• Ongoing access to relevant documentation through the Investor Dashboard

These documents allow investors to stay informed about the Company’s performance and the progress of its real estate developments.

Investors receive a preferred annual return ranging from 9% to 11%, meaning that before any general project profits are distributed, investors are paid their preferred annual return on invested capital first.

This structure is designed to prioritize and help protect investor interests by granting priority over project cash flows.

The development team is led by developer and entrepreneur Ramón Misla Villalba, who has more than 30 years of experience and over 28 completed real estate developments throughout Puerto Rico.

See developer experience

Puerto Rico offers a unique real estate investment opportunity supported by three active and verifiable sources of housing demand.

The process begins by egistering through our platformInvestors then gain access to their private Investor Dashboard, where they can review active investment rounds, select the opportunity in which they wish to participate, complete the AML/KYC verification process, review the Offering Memorandum, and electronically execute the Subscription Agreement.

Once the documentation has been approved, investors will receive instructions to complete the investment transfer process.

To review the complete step-by-step investment process click here..

Puerto Rico Real Estate Fund LLC projects the development of a real estate portfolio with estimated sales exceeding USD $103 million, in addition to an estimated USD $7 million to USD $14 million in projected value through the monetization of Opportunity Zone tax credits. 

The projects are backed by tangible and identifiable real estate assets, including land and properties directly associated with the developments. Additionally, certain upcoming projects are expected to be developed under Puerto Rico’s Opportunity Zones Program, providing tax incentives that may strengthen the financial viability and stability of the developments.

The Preferred Return structure, is a mechanism that grants investors priority in the distribution of returns over the managing partners of the Company.

This means that, whenever distributable profits are available, investors are entitled to receive their preferred return before managers participate in profit distributions.

Additionally, if during a given period the preferred return cannot be fully distributed, the unpaid portion will accumulate for future periods as a “Preferred Accumulated Return,”allowing investors to benefit from compounding returns.

Yes. The preferred return is cumulative and compounded

This means that if, during a given period, the Company is unable to distribute all or part of the preferred return, or if the investor elects not to withdraw the returns, the unpaid amount will accumulate into the following investment cycle.

Because the structure is compounded, all accumulated returns (whether due to non-payment or by investor election) are added to the principal balance, and future returns are calculated based on the increased amount. This allows investors to generate returns on previously accumulated returns.

The minimum holding period for investments is 24-Month.

At this time, the investment structure does not contemplate early withdrawal mechanisms prior to the expiration of the established investment term.

No. The Certificate of Membership Interest does not constitute a promissory note or debt instrument. It is a document evidencing the investor’s equity ownership interest in Puerto Rico Real Estate Fund LLC.

If, during a given period, the Company is unable to distribute all or part of the Preferred Return, the unpaid amount will accumulate as a “Preferred Accumulated Return,”.

Such accumulated amounts must be paid with priority in future distribution cycles. Additionally, the managing partners may not participate in profit distributions until all pending and accumulated preferred returns owed to investors have been satisfied.

This structure is intended to preserve the economic priority of investors within the Company’s distribution framework.

Distributions generated from projects developed under Puerto Rico’s Opportunity Zones Program, may qualify for exemption from Puerto Rico income taxes, pursuant to the applicable provisions of Puerto Rico Act 60.

This exemption applies solely to taxation within Puerto Rico and does not affect tax obligations in other jurisdictions.

Membership Units in Puerto Rico Real Estate Fund LLC are not publicly traded and should be considered a medium to long-term investment.

Any sale or transfer of Membership Units is subject to applicable legal restrictions, as well as prior approval by the Company’s Manager .

In General Terms:

• Membership Units are subject to minimum holding periods pursuant to applicable securities laws.
• Certain international transfers may be subject to additional restrictions during the first 12 months following the investment.
• All transfers are subject to regulatory compliance and verification procedures (KYC/AML).
• Any new investor must satisfy the eligibility requirements established by the Company and applicable regulations.

To participate in the investment offerings of Puerto Rico Real Estate Fund LLC, investors must satisfy the applicable requirements under Regulation D of the United States Securities and Exchange Commission (SEC) including qualification as an “Accredited Investor.”.

In General Terms, an Individual May Qualify as an Accredited Investor by Meeting at Least One of the Following Criteria:

• Net worth exceeding USD $1 million, excluding the value of the primary residence.
• Annual individual income exceeding USD $200,000, or joint income exceeding USD $300,000 with a spouse or partner, during the previous two years, with a reasonable expectation of maintaining such income levels.
• Certain financial licenses or certifications recognized by the SEC.
• Certain entities or companies meeting asset thresholds established under applicable regulations.