The "Take Home" Advantage
How a $25,000 allocation performs across three different investment scenarios in Year 1.
2025 Stock Market
Return (10%)$2,500
Tax Due (35%)-$875
Net Value
$1,625
Standard High Yield
Return (14%)$3,541
Tax Due (35%)-$1,239
Net Value
$2,302
*10% return based on 2025 S&P 500 forecast consensus.
The Highlands
Return (14%)$3,541
Tax Due (Sheltered)$0
Extra Tax Savings+$2,193
Total Net Value
$5,734
Projected Returns Analysis
$25,000 Minimum Investment • 3-Year Term
1. Cash Flow + Tax Savings Investment
Traditional real estate investments offer cash flow. The Highlands offers Cash Flow + Tax Savings. We utilize an advanced tax strategy called Cost Segregation, performed by qualified third-party engineering firms, to accelerate the depreciation of non-structural assets (flooring, fixtures, landscaping). This creates a deduction that can offset income.
Why 55% to Investors?
Tax benefits flow pro-rata with equity. Since Investors contribute 55% of the capital stack (Boundary Stone Capital is contributing the remaining 45%), 55% of the total $178k depreciation pool flows directly to the investor pool.
Tax Benefit Offset
This non-cash depreciation deduction flows to you via Schedule K-1. It is typically used to offset tax liabilities from other passive income sources. In the absence of other passive income, this benefit directly offsets the interest cash flow generated by this investment, effectively sheltering it from taxation.
2. The Investment Offering
Base Performance (Cash Only)
Nominal Rate
14.0%
Compounds Monthly
Effective Annual Yield
14.93%
Actual Annual Yield
Distributions
Quarterly
Paid 4x Per Year
Tax-Adjusted Performance (Cash + Tax Savings)
Avg. Annual Return
21.0%
Tax-Equivalent
Total 3-Year ROI
63.1%
Total Value / Capital
Structure
Preferred Equity
Priority Position
3. Cash Flow Model
The table below models a $25,000 Investment for an investor with NO other passive income. It demonstrates how the accelerated deduction (Column 3) completely shelters the cash distribution (Column 2), resulting in $0 Tax Due.
| Year | Period | Cash Payment to You |
Taxable Income Reportable |
Cumulative "Suspended" Loss |
Net After-Tax Cash Flow |
|---|---|---|---|---|---|
| Year 1 | Q1 - Q4 | $3,541 | $0 | ($20,069) | $3,541 |
| Year 2 | Q1 - Q4 | $3,541 | $0 | ($17,918)* | $3,541 |
| Year 3 | Q1 - Q4 | $3,541 | $0 | ($14,377)** | $3,541 |
| End Year 3 | Capital Return | $25,000 | $10,623 | $0 (Fully Used) | ~$22,875*** |
| TOTALS | 3 Years | $35,623 | $10,623 | -- | $33,498 |
*Allocated Deduction represents the investor's share of the depreciation expense. **Carryover Benefit represents the unused portion of the deduction.
COMMITMENT DEADLINE: JAN 2, 2026 Beck Vissat | Principal
FUNDING DEADLINE: JAN 16, 2026 513.309.8667
PROPERTY CLOSING DATE: JAN 23, 2026 bvissat@boundarystonecapital.com
DISCLAIMER: Boundary Stone Capital and its principals are not tax professionals, CPAs, or financial advisors. The projections herein regarding tax savings, depreciation, and effective yields are estimates based on preliminary Cost Segregation analysis and current tax laws (including assumptions regarding Bonus Depreciation and Section 179 expensing). Actual tax consequences will vary. Passive Activity Loss (PAL) rules may limit immediate deductibility. Investors are strongly encouraged to consult with their own tax advisors.
The Bennett Group
Construction Excellence Since 1980
The Bennett Group is a premier commercial and government construction contractor with over 40 years of experience in the Washington, D.C. metropolitan area. Known as a "go-to" manager for complex historic renovations and landmark projects, the firm has built a reputation for quality, integrity, and sustainable construction practices.
The company specializes in navigating the unique challenges of the D.C. market, maintaining strong relationships with local municipalities, and delivering institutional-grade projects on time and on budget. Their deep expertise in multifamily renovation ensures that The Highlands will be executed to the highest standard.
Leadership
LuAnn Bennett
President
With over 30 years of industry leadership, LuAnn Bennett has guided the firm's growth into one of the region's most respected construction entities.
Selected Projects
Howard University
Lincoln Theater
Marymount University
D.C. Government (IDIQ)
The Reconfiguration Strategy
We are combining 4 separate, inefficient 1- and 2-bedroom units into 2 high-demand 5-bedroom family residences.
Existing (4 Small one & two badroom Units)
Proposed (2 Large five badroom Units)
Strategic Benefits
279%
Revenue Increase
0%
Projected Vacancy
34%
Lower Reno Cost
Current Property Condition
The distressed nature of the asset is the opportunity. These photos show the "before" state, which allows for our low acquisition basis.
Full Investor Presentation
Download the comprehensive 11-slide deck including market analysis, renovation plans, and team bio.