Villa Bit Capital
Villa Bit Capital
Investor Earnings

ACCESS HIGH-GROWTH ADRIATIC REAL ESTATE THROUGH U.S. LLC AND UK LLP STRUCTURES

Villa Bit Capital offers eligible investors structured access to premium Croatian coastal real estate development opportunities through U.S. LLC-based project financing structures and UK LLP partnership-type participation structures

Villa Bit Capital offers eligible investors structured access to premium Croatian coastal real estate development opportunities through U.S. LLC-based project financing structures and UK LLP partnership-type participation structures.

Investors may benefit from a 10% cumulative preferred return, additional participation in rental income, and profit-sharing at project exit — combining stable real estate exposure with high-upside growth potential.

Backed by limited-supply Adriatic near-sea tourist locations, flexible rental or sale strategies, and professionally managed development operations, the structure is designed to target stable long-term returns while maintaining asset-backed security and international diversification.

WHERE U.S. AND UK INVESTMENT STRUCTURES MEET PREMIUM EUROPEAN REAL ESTATE

Combine premium EU real estate protections with strong U.S. LLC and UK LLP participation structures — using Villa Bit Capital’s unique USA–EU and UK–EU real estate opportunity backed by real-world market demand.

CAPITAL CALL FUNDING STRUCTURE

Real estate development projects rarely have one exact final cost from the first day.

For that reason, Villa Bit Capital may use a Capital Call model for each villa project.

Instead of requiring all committed capital immediately, investors may define the maximum amount they are willing to invest in a project. Funding may then be requested step by step as actual development costs become clearer.

For example:

  • Investor A commits up to USD 30,000
  • Investor B commits up to USD 100,000
  • Investor C commits up to USD 250,000

The committed amount represents the maximum available capital for that project.

If an investor commits up to USD 100,000, the project may initially request only part of that amount. Additional Capital Calls may occur later if project requirements justify additional funding.

This approach allows capital to remain available while helping avoid collecting unnecessary funds before they are actually needed.

The minimum investment amount is USD 30,000.

Investors who commit only the minimum amount generally fund that amount during the initial funding round.

Investor payouts are based primarily on the actual amount invested and the agreed project return structure. Ownership percentages may be used for legal, accounting, and management purposes inside the LLC or LLP structure, while investors remain passive participants.

PROPOSED INVESTOR RETURN STRUCTURE

10% GUARANTEED CUMULATIVE PREFERRED RETURN

Investors are offered a 10% annual guaranteed cumulative preferred return on invested capital throughout the development cycle of the project.

The preferred returns grow cumulatively during the development period and are paid once the real estate project is fully completed and officially ready for use.

Investors understand that this is exactly how such guaranteed interest-rate structures become realistically possible within real estate development projects. As builders, we know that once premium real estate is fully completed, it often immediately carries a significantly higher market value compared to the earlier construction-stage pricing — often around 20% higher.

That built-in value creation is what allows us to deliver a stable guaranteed base interest-rate structure in a sustainable way.

The cumulative preferred return is designed to provide investors with a stable and contractually prioritized base return, supported by the underlying value creation of the completed real estate asset.

RENTAL BONUS STRUCTURE

If the completed property is retained and operated as a rental asset instead of being sold immediately, investors additionally receive:

50% participation in net rental profits

after:

  • operating expenses,
  • taxes,
  • maintenance,
  • reserves,
  • management expenses,
  • financing costs,
  • and payment/accrual of preferred return obligations.

This rental participation continues while the property remains in active rental operation.

EXIT SALE BONUS PARTICIPATION

If the project or completed property is sold instead of retained for rental operations:

Investors first receive:

  • repayment of original invested principal,
  • all accrued cumulative preferred return amounts.

After these obligations are satisfied, investors additionally receive:

25% participation in remaining distributable project profit at exit.

GRADUAL EXIT / PARTIAL ASSET SALE STRUCTURE

In certain situations, the exit process may occur gradually instead of through the sale of the entire property at once.

If this gradual exit structure is used, investors receive proportional distributions progressively as individual asset sales occur.

The rental bonus structure and exit sale participation structure payments are adjusted gradually based on how much of the property is still operating as a rental asset and how much has already been sold.

As portions of the project are sold, investors progressively recover invested capital while still maintaining economic participation in the remaining unsold or rental-operating portions of the project.

This allows investors to:

  • progressively reduce capital exposure,
  • improve liquidity over time,
  • continue participating in ongoing rental income generation from remaining assets.

This phased monetization structure is designed to follow market conditions.

If the goal is to maximize returns, there are periods when selling is strategically better and periods when holding assets longer creates greater value.

We are focused on managing projects toward maximizing long-term investor profits.

EXAMPLE EXIT SCENARIO

INITIAL INVESTMENT

Completed Property Build Cost€300,000
Final Property Sale Price€500,000
Total Profit€200,000

1. INVESTOR FIRST RECEIVES

Original principal repayment€300,000
All accrued guaranteed cumulative preferred return amounts

ACCRUED PREFERRED RETURN EXAMPLE

10% cumulative annual preferred return held for 2 years2 × 10% = 20%
20% of €300,000€60,000 accrued preferred return

2. EXIT BONUS UPON PROPERTY SALE

Remaining distributable project profit (after principal + preferred return)€140,000
25% participation of remaining €140,000€35,000 exit participation bonus

TOTAL EXIT SUMMARY

Principal Repayment€300,000
Accrued Preferred Return (2 Years)€60,000
Exit Participation Bonus€35,000
Total Received at Exit€395,000

EXAMPLE PERFORMANCE METRICS

We are not calculating any additional rental income in this example.

If the completed property is retained and operated as a rental asset instead of being sold immediately, investors additionally receive 50% participation in net rental profits.

It is self-understandable that if and when that happens, the RENTAL BONUS is added on top of the existing return calculations shown here.

ILLUSTRATIVE EXAMPLE ONLY — NOT GUARANTEED

Initial Investment€300,000
Total Capital Returned€395,000
Total Net Profit Earned€95,000
Total Return on Investment (ROI)31.67%
Approximate Annualized IRR / Annual Return Equivalent~14.8% annually
Investment Period2 Years

EXAMPLE EXPLANATION

In this illustrative scenario:

  • Investor contributes €300,000
  • Project completes and exits approximately 2 years later
  • Investor receives:
  • full principal repayment,
  • accrued 10% cumulative preferred return,
  • plus additional 25% participation in remaining distributable project profits.

This example results in:

  • approximately €95,000 total net profit,
  • approximately 31.67% total ROI over the investment period,
  • and an approximate annualized return/IRR equivalent of ~14.8% annually.

CAPITAL CALL NOTE

The examples shown on this page assume that the required project capital has been contributed. Actual funding may occur through one or more Capital Calls depending on project timing, development progress, and funding requirements.

Important Disclosure

The above figures are provided solely as an illustrative example to demonstrate the potential economic mechanics of the structure.

Actual investor returns may be materially higher or lower depending on:

  • project performance,
  • construction timing,
  • financing costs,
  • market conditions,
  • sales velocity,
  • rental performance,
  • taxes,
  • operational expenses,
  • and final exit values.

All returns are not guaranteed, and all investments involve risk.

For all disclosures, risks, and important information, please visit:

https://villabitcapital.com/disclosures.php

Structural Notes

  • Investors participate economically at the LLC/project financing level and do not receive direct ownership of Croatian real estate assets. Instead, they gain economic exposure to the Croatian real estate through loan structures secured against the real estate project itself.
  • Croatian project entities may remain under sponsor/developer ownership and operational control.
  • Final investor rights, distributions, waterfall mechanics, and participation calculations will be defined in the definitive operating agreements, subscription agreements, loan documentation, and offering materials.
  • All returns remain subject to project performance, market conditions, operational costs, taxes, financing conditions, and successful project execution.

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