rental-property real-estate limited-liability-company investment
What is &quot;ownership in the individual Series of a Series LLC that owns a home asset&quot;?
<p>I am looking into <a href="https://arrivedhomes.com/" rel="nofollow noreferrer">Arrived Homes</a>, a real-estate investment site.  (No affiliation.)  I am trying to determine, if you invest, what happens when the home is sold.  Their <a href="https://help.arrivedhomes.com/en/articles/4496432-who-legally-has-ownership-of-the-house" rel="nofollow noreferrer">answer</a> to the question &quot;Who legally has ownership of the house?&quot; is not clear to me.</p>
<blockquote>
<p>When you purchase shares in an Arrived home offering, you are directly
buying ownership in the individual Series of a Series LLC that owns
that home asset. So if for example, you purchase 1% of the shares in a
single home offering, you would then be entitled to 1% of the economic
interests of the asset over time, which may include income from rent
or property value appreciation.</p>
</blockquote>
<p>Can someone please paraphrase the answer in laymen terms?  Is this normal jargon, or is it intentionally unclear?</p>

<p>A series LLC is a single LLC filing with secretary of state where it is incorporated that includes many numbered sub-LLCs which are identical to each other in all internal governance respects except ownership.</p>
<p>It is implied that this particular venture uses one sub-LLC per house.</p>
<p>They are trying to say that if you invest x% in a single sub-LLC that owns a single house, then you own x% of the distributable income derived from that house (e.g. from rent net of management fees and operating expenses a.k.a. carrying costs) and that you also own x% of the net equity proceeds upon the sale (or other form of liquidation such as an eminent domain condemnation or insurance proceeds from a completely destroyed home) of the house after payment of any loans and closing costs.</p>
<p>They don't reuse the sub-LLC once the house is sold. They just discard it.</p>
