Choose from vetted portfolio managers based on their track record and strategy
Sign legal documents & transfer your funds
Own a fractional piece of each business and receive quarterly distributions
Accredited investors who want exposure to online businesses but may not have the time or skill set
Entrepreneurs and Founders who may have the skill but want passive returns and diversification
Non-accredited investors or those who don’t have the capacity to take on the risk or diversify across multiple deals.
Active investors looking to run their own online business
|Investor Profile||Accredited Investors|
|Minimum Investment||$25,000 USD|
|Capital Stack||95% investor capital
5% portfolio manager capital
|Profit Split &
66.7% to Investors
• 20% to Portfolio Manager • 10% to EF Capital • 3.3% to Advisors
|Portfolio Manager Profit
|Paid Quarterly. Split at the percentages above
First distribution 9-12 months after investment
|Sale of Business
|Investors recoup their initial investment first
Increase in business value is split at the percentages above
|Hold Period||2-4 years|
|Return Expectations||20% projected average annual returns*|
|Reporting||Quarterly reports including financials and commentary.
Financials will be put together by a 3rd party accounting firm and reviewed by EFC
* These are estimated returns which may be significantly higher or lower. There is no cap or guarantee on returns, and investments may result in partial or total loss. Please refer to legal fund documents for full detail of terms.
Empire Flippers has done over $400 million worth of deals and is the #1 largest curated marketplace in the world for online businesses. Over the last decade, we’ve built a network of portfolio managers with successful track records.
Businesses Brokered 2,000+
Sales Volume $400M+
Active Buyers & Sellers 245K+
Return Expectations Where do returns come from?
The most important thing and one of the reasons I like working with Empire Flippers so much is they set up realistic expectations for their sellers
My clients and I have done countless deals with them and they do a awesome job for both the buyer and seller in each transaction.
Past performance is no guarantee of future results and any expected returns on investment disclosed through the investor platform are hypothetical and may not reflect actual future performance. All investments made through the investor platform may result in partial or total loss. All fund performance information disclosed through the Investor Platform is presented prior to the removal of all management fees and expenses unless otherwise disclosed. Some of the statements made on the Investor Platform constitute forward-looking statements and should not be relied upon as predictors of future events. These statements may fail to account for both known and unknown risks, market or other uncertainty, changes in the economy as a whole, or changes outside of the control of the Portfolio Manager. Nothing contained within the Investor Platform or the Services should be considered investment advice and you should obtain investment and tax advice from independent investment professionals prior to investing in any offering provided through the Investor Platform or the Services. All information provided through the Investor Platform and the Services, including information in private placement memorandums, have been prepared without knowledge of or concern for each Investor’s individual financial situation or risk tolerance. Nothing contained within the Investor Platform or the Services should be considered to constitute tax, legal, or investment advice.
The official SEC criteria for accredited investors is outlined below. Income can be from any source including your own business. The only exception is income from your primary residence.
Absolutely. As long as investors meet the accreditation requirements as laid out by the SEC they will be able to invest.
There will be no additional capital calls for investors, meaning you’ll never be required to contribute additional funds into any deal.
Investors will receive a quarterly report on their deals with financials and written commentary. Financials will be put together by a 3rd party accounting firm, who will have direct access to the monetizations and bank accounts. They will pull the numbers and put the reports together. EF Capital will audit the reports for any questions or anything unusual and ask the portfolio managers to explain in detail. Portfolio Managers will put together commentary on the performance of each deal, what happened in the last quarter and their plan for the coming quarter.
Once you’ve made your initial investment, the portfolio manager will continue to raise funds from other investors to acquire the full amount needed. We will hold all the investment funds in a segregated account and ensure they are only deployed to purchase businesses that match the portfolio manager’s predetermined criteria. Note: If the money is not deployed within 90 days from the acquisition of full funding, it will be refunded to the investors. If the portfolio manager acquires less than the amount raised including money set aside for growth, the difference will be refunded to investors proportionally. The portfolio manager will acquire a business from Empire Flippers that matches their acquisition criteria and growth plan. Once the funds are deployed and the business has been acquired, the portfolio manager may reinvest some of the monthly profits into growth. Some portfolio managers will set aside some of the money that has been raised to be used for growth, and if they do, the amount will vary from portfolio manager to portfolio manager and will be outlined on the individual deal page.
Each deal is a separate legal entity with separate investors and separate portfolio managers. It is set up this way to limit liability for the investors and limit risk to any given deal. Portfolio Managers and investors own the LLC equivalent to the cash they put in (95% Investors, 5% Portfolio Manager). Portfolio Manager, EF and Advisors receive an additional carried interest based on the profits but no additional ownership.
Each LLC is a passthrough entity. You will get a K-1 that shows the income of the LLC. Any income and any eligible depreciation will pass through. Please consult with your tax accountant for planning advice.
Yes, the setup is standard. If you’re a non-American and have invested internationally it will be exactly the same. Tax withholding on non-American companies is 21%. Tax withholding on foreign individuals is 37%. Please note that foreign trusts are taxed at the individual rate of 37% as well. The US has tax treaties with many other countries so you should not be double taxed even if they withhold a higher amount you may be able to file a tax return and claim some of it back. Please consult with your tax accountant for planning advice.
Apart from investing your capital and choosing which portfolio manager you want to work with, this investment will be completely passive. You will not have access to the portfolio manager to ask questions or give your input on how to run the business. You will simply receive a quarterly report and a quarterly payment for each deal you invest in.
Please fill out our portfolio manager interest form (empireflippers.com/operator) including your experience, strategy, current and past portfolio performance. We will inform you of our vetting process and be in touch to discuss next steps. Please wait to hear back from us after you submit your form. It is critical for EF to get the best portfolio managers involved in the program. We are diligent in vetting them and making sure they’re qualified.
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