In this short dialogue, two speakers outline how to create a fractional investment club—named the Land Shark Mastermind—to raise capital specifically for land entitlement work, which is often the hardest financing piece. They discuss forming an LLC, collecting a 3% commitment/transaction fee from members, and using small tranche contributions ($10k‑$100k) rather than a single large raise. Members vote on which entitlement projects to fund, and once the club reaches its capital goal, the money is deposited into a dedicated bank account for deployment. The conversation highlights the significant value uplift (60‑70%) that entitlements provide, making it an optimal exit point for developers, typically via a buyout from Titan 23 or through refinancing. The structure allows continuous stacking of similar projects, with flexible exit strategies and a clear governance model.
Chapters
Are you in the deal room?
We could create a fractional for the Land Shark Mastermind as our, as our group, and then use the investment of that to go and do, say, just the entitlements. Because a lot of times that money for entitlements is the hardest to sort. And so we had a fund that just, it was, it was a fund that could be used to just do entitlements. We vote, do we want to do entitlements on this property? Then we move forward, we fund it. Is that kind of how we could structure that up?
100%. You could totally do that. So you're—
and then once we get through entitlements, because you've seen on entitlements, that's where the most gains are too, right? Like, once we get through entitlements, the property value goes up 60 to 70%, and that's the best time for me as a developer. That's the best time for me to exit because I make the most return, right? So at that point, we could probably just have a fund for Land Shark that covers those entitlement costs it produces, and they're exited by the Titan 23. For example, Titan 23 comes in, exits the entitlement fund or the Land Shark fractional fund, and the Land Shark fractional fund is exited by Titan 23 every time.
So yeah, you could raise for the land entitlement, and then your club business plan would be, hey, you know, we're, we're focusing on land entitlement. And then all you have to do is say, hey, I found 123 Main Street, do we want to do, you know, loan this land entitlement to that? And then the money would be play to it. And then whatever you decide, however you want to dissolve the club, whether it be Titan 23 buying it out or refiing, however you do that, that's totally acceptable.
And so we can't get the money for the land and the entitlement at the same time. So this would be a perfect project for that to happen. And then what we would do is we would stack that pipeline with these types of projects to the point that we need $1 million right now for it. And as the, as the funds come in, it can be satisfied because it's We only need them in like $50,000 to $100,000 tranches. We don't need them in a million-dollar tranche. So we could, we could do $10, $20, $30 million— $10,000, $20,000, $30,000 payments out to get entitlements done as these, you know, as these investors put their money in. But how does that work with the voting? So let's say I got this property where we do want to raise the capital for the entitlements, but they haven't put their money in yet. How do they vote on it?
Do they vote on it? Yes.
After the money comes in?
So basically what would happen is they would join your club, they would pay the 3% commitment, the 3% hard transaction fee to hold their spot in your club.
Got it.
Once your club hits its goal, that's when we collect all the money. We open a bank account in the LLC's name that we create, and then that money is sitting in that bank account ready to deploy.
