Group 01
Residential
Single-family through multifamily housing, held for rental income and long-term appreciation.
Returns: rent + appreciation
05 / ALEX Investments
We invest with our clients, never against them.
ALEX does not compete with clients for real estate. If we find a deal strong enough that we'd want it for ourselves, our fiduciary duty means we offer it to our clients first, and we put our own fee into the deal right beside their capital.
Online: alex-companies.com/investments
Printable PDF: alex-companies.com/alex-investments.pdf
Version 1.1 · October 24, 2026 · 8:46 PM CDT
At a glance
- ALEX contributes its full buyer-broker fee
- All investor contributions in cash
- 10% typical reserve in every LLC, based on the investment
- Proceeds shared by equity, with no hidden waterfall
Typically 100%
of buyer-broker fee into equity
2 to 1
manager equity credit
5%
max ALEX contribution
10%
typical reserve
Principle
Our fiduciary principle
Many investor-brokers keep the best opportunities for themselves. We think that conflicts with the duty every brokerage, broker or agent owes: putting the client's interests above our own.
So ALEX invests only alongside clients. We don't buy against them, bid against them, or hold back deals for our own portfolio. When ALEX builds wealth through real estate, it does so in the same LLC, on the same asset, at the same time as the people we serve.
Process
How it works
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Every deal passes the same gate. If it doesn't make sense to ALEX, it never reaches investors.
01
ALEX vets every deal
If a deal makes sense to us, we bring it to our investors. If it doesn't, it's vetted out and never reaches them.
02
An acquiring LLC is formed
Each property is purchased by its own LLC. ALEX represents the LLC as buyer's broker.
03
ALEX contributes its fee
At minimum, ALEX puts its entire buyer-broker commission (for example, 3%) into the LLC's equity, and may add its own cash, up to 5% of the purchase price in total.
04
Investors contribute cash
Client investors fund the remaining equity in cash, including a reserve, typically 10% based on the investment.
05
Sold and shared by equity
ALEX represents the LLC as listing broker at sale for a 3% commission. Net proceeds are then distributed according to each member's equity share.
Compensation
Financial Overview
We list every source of ALEX compensation in plain terms. Nothing is paid to the manager beyond what's on this table.
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| Item | Terms |
|---|---|
| Buyer-broker fee | Contributed in full to the LLC as equity. ALEX does not take it as cash. |
| Manager equity credit | As manager, ALEX's contribution is credited 2 to 1. A 3% fee contribution is credited as equity equal to 6% of the purchase price. |
| ALEX cash co-investment | ALEX may add its own cash so its total contribution, including the fee, reaches up to 5% of the purchase price. This caps ALEX's equity credit at 10% of the purchase price. |
| Annual management fee | 1% per year of the LLC's value. |
| Property management | 6% when the property requires residential or commercial management. |
| Listing commission at sale | 3% of the sale price, paid at closing to ALEX as listing broker. |
| Disposition | Net proceeds (after sale costs, including the listing commission) are shared by equity. No waterfall, no preferred-return hurdle, no back-end promote or manager bonus. |
Strategies
Six investment groups
Group 02
Commercial
Retail, office, industrial and mixed-use property, held for tenant-driven income.
Returns: tenant income
Group 03
Income-producing land
Timber, farm and ranch land, held for production or lease income while it appreciates.
Returns: production or leases + appreciation
Group 04
Land bank
Raw, undeveloped land bought ahead of the path of growth and banked while it appreciates. Special valuations or exemptions typically keep property taxes low while the land sits idle.
Returns: appreciation
Group 05
Land hold
Rural land, held mid-term for appreciation over several years.
Returns: appreciation
Group 06
Land splitting
Larger parcels, bought to split into smaller tracts, often called ranchettes, and sold back on the market.
Returns: sale of tracts
Capital
Capital and reserves
Cash contributions
All investor contributions are made in cash. ALEX's contribution is its earned buyer-broker commission plus any optional cash, up to 5% in total, credited as equity.
10% typical reserve
Every LLC holds a reserve, typically 10% based on the investment, for property taxes, maintenance, legal and accounting. Interest earned on the reserve belongs to the LLC, not to ALEX.
Illustration
See how the equity works
An illustrative example assuming an all-cash purchase. Closing costs and financing are excluded.
Inputs
$
%
%
Capped at 5% total ALEX contribution.
Reserve fixed at the typical 10%. Manager credit fixed at 2 to 1. ALEX contribution capped at 5% (equity credit max 10%).
Results
Total capitalization (price + reserve)
ALEX total contribution (fee + added cash)
Investor cash required
ALEX equity credit (2 to 1)
Annual management fee (1%, at purchase price)
ALEX ownership
Cash in (price + reserve)
ALEX Investors
Equity credited (ALEX at 2 to 1)
ALEX credit Investors
Ownership split
Investors:
ALEX:
What the 2 to 1 credit does
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ALEX ownership at each contribution level, up to the 5% cap. The dot follows your inputs. The dashed line shows the same money credited 1 to 1, so the difference is the manager credit.
At sale (illustrative)
$
Listing commission to ALEX (3%)
Net proceeds shared by equity
ALEX distribution
Investor distribution
CommissionALEX shareInvestors' share
Not a projection. Enter any price. Other sale costs, any remaining reserve, operating results and taxes are excluded.
FAQ
Questions
ALEX invests only alongside clients. Opportunities we find are offered to clients first, and ALEX participates through the same LLC. If every client declines a deal, ALEX does not proceed with it.
Each dollar ALEX contributes is credited as two dollars of equity, in recognition of its role as manager. On a $1,000,000 purchase with a 3% fee, ALEX contributes $30,000 and receives $60,000 of equity credit. Because this credit increases ALEX's share, investors' percentages are proportionally smaller. ALEX may also add its own cash, but its total contribution, including the fee, is capped at 5% of the purchase price, so its equity credit can never exceed 10%. The calculator above shows the exact split.
No. Net proceeds at disposition are shared strictly by equity. There is no preferred-return hurdle, tiered waterfall or manager bonus at sale.
When it's time to sell, ALEX represents the LLC as listing broker and is paid a 3% commission at closing, the same professional fee any listing brokerage, broker or agent would typically earn. Because ALEX is also the manager and a member of the LLC, this relationship is disclosed in writing to every member before any sale.
A reserve, typically 10% based on the investment, covers property taxes, maintenance, legal and accounting, so the LLC isn't forced into capital calls for routine costs. Any interest the reserve earns is income of the LLC and is shared by equity like all other income.
Interested in investing with ALEX?
Start a conversation about your goals. We'll explain current eligibility requirements and what's available.
Accredited investors only
Important: This page is for general information only and is not an offer to sell, or a solicitation of an offer to buy, any security. Any offering will be made only through definitive offering documents and only to persons who qualify. Investments are open to accredited investors only, as defined in Rule 501 of Regulation D. Investing in real estate involves risk, including loss of principal. Past performance does not guarantee future results. The calculator is illustrative and excludes closing costs, financing, operating results and taxes.
ALEX Real Estate is a d/b/a of Alexander Tiffany Southwest, LLC. When ALEX or its license holders acquire an interest in a property, that interest will be disclosed in writing as required by law. ALEX is not a registered investment adviser and does not provide tax or legal advice.