Pinhook Development, LLC
News & Info
Initial Successes
With its first $60,000 invested, Pinhook has secured an initial dividend run rate of over $10,000. While our equity sector appears to be recovering gradually, historic opportunities still remain. We have also built up significant cash reserves in anticipation of real estate acquisitions with extremely attractive prices and huge potential for appreciation and income growth.
End State
Beyond the completion of our initial growth period, we plan to conduct periodic strategic reviews to ensure the company meets the goals of all members and other stakeholders in the best way possible. Any major changes to our approach or company structure would be carefully considered prior to a decision, and would be based on input from all members.
Tax Implications
Both asset classes are optimized for substantial deferral and even exemption of profits for long periods, and Pinhook also expects to receive tax credits for energy-related improvements that can be carried forward for multiple years to offset future gains. We anticipate profitable operations from Q2 2017 forward (post-startup costs) with minimal tax liability, and will provide each member with a Schedule K-1 for each year, indicating any taxable profit or loss.
Timing of Distributions
The company will acquire assets aggressively from 2017 through 2019, with 100% of funds reinvested. Units will be extensively renovated or rebuilt, then sold or mortgaged to unlock new equity for further acquisitions. Beginning in 2020, Pinhook will reduce its growth rate and focus on paying a sustainable yield, while reinvesting to ensure moderate equity and income growth.
