Exiting Investors Update

October 15, 2026 - Wanted to provide an update on final steps that the Company wil be taking to finalize the Investment for exiting Partners.   The Company has provided the Accountants with all closing statements, invoices and statements and the books that will allow them to audit and finalize the payouts.   As noted in the Discussion for each property the strategy of making the properties look great enabled us to get the sales price we wanted however at a higher cost.  If you need an estimate you can take what the Company initially projected, the final amount will be less (about 5%) which from an estimation exercise its better to estimate higher than lower.    

While the Accoountants are finalizing the payout amounts they will also need to calculate what the Company needs to withhold for CA taxes for non resident investors.  This is a necessary step before we can issue distributions.  

The Lawyers will also need to prepare a mutual release which will formally exit Partners from the Fund.  We will have them draft that and will have that for you to sign (husband and wife if needed) to properly indemnify everyone.    So look for that email.   

We may have some amount to withhold however that should be a relatively small amount as we will try and get the final bills submitted.   

I'm hoping to wrap all this up in a month - the Accountants tell us that we may need to wait for the IRS and FTB to issue the 2026 K1s so that is still out of our hands.   It would be nice to get everything sent out at once, however we may issue the distributions before the K1s if that looks like it will be causing a delay.    My goal would be to wrap up everything at once within November.    We will put together a final Management Discussion that summarizes the results - although most of that will be found in the property update pages - when the final K1s are issued.