Accredited investors only
The LOCAL Partner Fund
We build and remodel Smoky Mountain cabins, rent them to vacationers, and pay investors quarterly from the cash flow. Our team handles all of it.
- Minimum
- $25,000
- Distributions
- Quarterly
- Expected hold
- 10 years
- Projected annualized return
- 12-15%+
How the fund works
One structure, start to finish
- 01
The structure
The LOCAL Partner Fund is open to accredited investors, with a $25,000 minimum. Capital is pooled across multiple Smoky Mountain properties rather than concentrated in a single cabin.
- 02
How capital is deployed
We build new cabins on land our team sources, and we buy and remodel underperforming cabins that are worth more than they are earning. Both routes are handled in-house, acquisition, design, construction and management.
- 03
How income is produced
Completed properties are rented to vacationers and operated by our own short-term rental team. Investors never handle guests, cleaners, pricing or calendars.
- 04
How investors get paid
Investors receive quarterly distributions from operating cash flow, processed according to the fund's operating agreement.
- 05
The hold and the exit
Assets are held about 10 years. At the end of the hold, properties are sold or refinanced and the gain is split between the fund and its investors under the terms of the operating agreement.
- Talk to our team
Questions about the structure?
We'll walk you through the operating agreement, the portfolio and the reporting on a short call.
What you own
You hold a membership interest, not a deed
Your capital sits across multiple Smoky Mountain properties rather than one cabin, and the fund owns the properties. Here is what an interest in it actually represents.
A membership interest, not a deed
You own an interest in the fund in the form of shares. The fund owns the cabins, so your name is not on any individual property title.
Your share of the income
Rental income, after operating costs and debt service, is distributed quarterly in proportion to your interest, when the properties produce it. You share in the depreciation, cash flow, and long term appreciation of the assets.
Your share of the value
Any increase in property value is realised when assets are sold or refinanced at the end of the hold, and shared under the operating agreement.
Reported on a K-1
Each year you receive a K-1 showing your share of income, expenses and depreciation from the fund, rather than reporting rental activity yourself.
Tax treatment depends on your own situation and on the terms of the fund's operating agreement. Nothing here is tax advice. Please consult your own advisors.
Who it fits
Built for investors who want the return only
If you would rather hold the deed to a specific cabin, our brokerage, Local Realty Group, can sell you one and our team and partners can operate it for you afterward. The fund is for people who want the asset class without the asset.
- You are an accredited investor
- You want the return without owning or running a property
- You are comfortable with a long hold rather than quick liquidity
- You want real estate alongside, not instead of, the rest of your portfolio
- You want to be part of a large portfolio, which brings security
The process
From first look to final distribution
Every property the fund takes on moves through the same five stages. Timing varies by property and by market conditions.
Stage one
Discovery
Our team reviews land and existing cabins across the Smokies, and rules out most of them. We look at location, guest demand, build cost and what a property could realistically earn once it is operated properly.
Stage two
Diligence
Anything that survives screening gets a closer look: title and permits, site and inspection work, construction or remodel scope, furnishing budget and operating assumptions. Numbers are built line by line before we commit.
Stage three
Development
Capital is drawn from the fund to acquire and complete the property. Our own team handles design, construction or remodel, furnishing and the launch onto the booking platforms.
Stage four
Reporting
Once the property is earning, it joins the portfolio reporting. Investors receive quarterly distributions from operating cash flow when the properties produce it, and an annual K-1.
Stage five
Return
Assets are held about 10 years, then sold or refinanced. Proceeds are distributed under the terms of the operating agreement.
Proof before promises
Judge us on what we have built
We would rather show you completed properties and how we report on them than make claims about what a return might be.
Questions
The things people ask on the first call
- Who can invest in the fund?
- Participation is limited to verified accredited investors. Accreditation happens before any commitments are made.
- What is the minimum investment?
- The minimum is $25,000. Final terms, including any exceptions, are set in the fund's offering documents, which we share during the onboarding and review process.
- How often are investors paid?
- Distributions are made quarterly from operating cash flow, processed according to the fund's operating agreement. Distributions are not guaranteed and depend on how the properties perform.
- How long is capital tied up?
- Plan on 10 years. At the end of the hold, properties are sold or refinanced and proceeds are distributed under the operating agreement. This is not a liquid investment and there is no public market for the interests.
- What does the fund invest in?
- Smoky Mountain short-term rental properties only, new cabins built on land our team sources, and existing cabins bought and remodeled because they are worth more than they currently earn.
- Who manages the properties?
- Our own team handles acquisition, design, construction, furnishing and day-to-day short-term rental operations. Investors never deal with guests, cleaners, pricing or calendars.
- Can I invest if I would rather own a specific cabin?
- Yes, but through a different path. Our brokerage, Local Realty Group, can help you buy a cabin you hold the deed to, and our team and partners can operate it for you afterward. The Ownership Assessment will point you to whichever path fits.
Still have a question? Send it to us.
Priority access
Move up the queue with a refundable $1,000
Our rounds fill quickly, and allocation is offered in the order investors join the list. Once we've confirmed you're an accredited investor, a $1,000 reservation moves you up the queue for priority access to the next round. It buys position in line and nothing more: it is not an investment and does not guarantee an allocation. It is fully refundable on request at any time until you sign subscription documents, and if you go ahead it is applied to your subscription.
No payment is taken on this site. We confirm your interest first, then send payment instructions and written refund terms.
Important
This page is a general description of the LOCAL Partner Fund and is not an offer to sell or a solicitation of an offer to buy any security. Any investment is made only through the fund's offering documents and operating agreement, is limited to verified accredited investors, and involves risk, including the possible loss of capital. Past project results do not predict future performance. Nothing here is tax, legal or investment advice. Please consult your own advisors.