L17 Capital, LLC - Investor FAQs

What exactly am I investing in?

You’re participating in an integrated, hybrid model that combines coastal branded residences and boutique hospitality. This creates both real estate equity upside and recurring hospitality income. You can choose to enter through an Expression of Interest (EOI), a Key membership, or direct equity participation.

How are my funds handled?

  • EOI and Key deposits are held in a third-party escrow account until key milestones are achieved.
  • Certain pre-development expenses, such as land option fees, early design work, legal costs, and strategic reserves, are allocated outside escrow to secure the project and protect investor interests in an emerging market environment.
  • You receive full documentation of fund flows — no hidden charges, no surprises.

What fees does L17 take?

L17 operates as a vertically integrated sponsor and operator. Fees cover:

  • Development fee (industry standard, ~5-7% of total project cost)
  • Asset management fee (oversight, strategy, investor reporting, and financial stewardship)
  • Property management fee (ongoing operational performance, automation, and excellence)
  • Acquisition Fee (years of property lead qualification and closing)

We fully disclose these fees in project agreements and investor updates. All fees are aligned with project success and long-term value creation.

What about key man salary or compensation?

In an emerging market environment like coastal Mexico, having the sponsor fully engaged on the ground is not optional; it is essential to protect capital and execute well. For that reason, L17 includes a modest key man salary. This isn’t structured as a bonus or excess GP compensation, but as a necessary operating cost that ensures 24/7 focus on land control, government approvals, community relations, and project execution in a market where outside managers can’t simply “fly in” and run a spreadsheet.

The key man salary covers the operational risk of running projects in a frontier environment and provides stability for the sponsor to remain fully committed long term.

What makes this model resilient?

  • Combines steady hospitality cash flows with long-term real estate appreciation.
  • Shared amenities and operational efficiencies create cross-selling opportunities and stronger absorption.
  • Priority access and optional monetization for residence owners enhance both lifestyle and financial appeal.

How do future expansions work?

  • Future phases (such as the 30+ ocean-view branded residences) will only proceed after stabilization and proven success of Phase 1.
  • Early EOI and Key members receive priority upgrade rights if future residences are offered.
  • Expansion decisions will be data-driven, investor-aligned, and fully transparent.

How does L17 ensure trust and transparency?

  • All major investor funds tracked and documented.
  • Quarterly impact and financial reports provided.
  • Local compliance, social integration, and environmental stewardship prioritized.
  • Strong governance structures and third-party audits as we scale.

Why is there a non-escrow portion?

Certain early-stage costs must be committed upfront in any emerging market development — these include land control fees, permitting costs, initial design and legal expenses, and strategic reserves for operational resilience. This is standard practice to secure the opportunity and de-risk later phases.

Who is this for?

For investors who value both lifestyle and long-term equity growth, the ones who want to be early, shape a legacy, and enjoy the coast while participating in a unique hybrid income model.

💬 Ready to learn more?

We welcome aligned, long-term capital partners.

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