Is my investment is on Safe Hands?...

[Gopi Srini]

I have invested $50,000 and want to ensure my investment is secure and on track to deliver the promised returns., HCRE 004 LLC, Carillon Crown, Carillon Parc, 550 Reserve St., Southlake, Texas 76092. The "Carillon Parc" real estate development is a 42-acre mixed-use development located in Southlake, Texas. This capital is being raised by HCRE 004 LLC (the "Company") through the sale of up to 220 Class A Membership Interest Units at a price of $50,000 per unit. The purpose of this investment is for the Company to invest in Carillon High Circle, LLC, which in turn will use the proceeds to purchase a 47.5% membership interest in Carillon Crown, LLC. The Private Placement Memorandum is dated May 19, 2022. The total investment target for the offering related to Carillon Crown, LLC is $11,000,000.

[Stuart Udis]

@Gopi Srini Presumably, you executed an operating agreement and have a copy in your possession. You referenced a “promised return,” which I suspect is either a preferred return or a targeted return. 

Upload the operating agreement to ChatGPT with the following instructions. You should receive a fairly accurate explanation, though it is always best to independently verify the results.

Task:
I am uploading an LLC Operating Agreement. Please review it solely to explain the cash distribution and waterfall provisions, including:

• Any preferred return(s), including rate, compounding or non-compounding, and accrual mechanics
• Capital account treatment relevant to distributions
• Return of capital mechanics
• Catch-up provisions, if any
• Promote / carried interest structure, if any
• Order of distributions on an ongoing basis and upon liquidation
• Any differences between operating cash flow distributions and liquidation distributions

Instructions:
• Do not summarize the entire agreement
• Do not provide legal advice or interpret beyond the text
• Quote or cite the specific section numbers and language you rely upon
• If the agreement is ambiguous, flag the ambiguity rather than guessing
• Present the explanation in plain English, step-by-step, as if explaining to an investor

Deliverable:
A clear, structured explanation of how cash moves through the LLC, including a numbered waterfall.