FAQs – BALTA Silicon Valley Affordable Home Project

Frequently Asked Questions

What is BALTA Silicon Valley Affordable Home Project?

It’s a combination of activities for real estate investment, purchasing land for new homes by BALTA Participants.

Can you give me an example of how it works?

For example, the land price is $1M. And the lot size is 2 acres. Each Participant invests $100k. That means we need 10 Participants to purchase this land. And each Participant will own equity in the shared land with the lot size of 0.2 acres per Participant.

Who can become a BALTA Participant?

BALTA Home Project was created by and for all working professionals who wish to have an affordable $500k brand new home in Silicon Valley. You can invest your own funds to have your own affordable brand new home in Silicon Valley (you will need $100k on your personal checking account to start). In case you don’t have necessary funds, you may do your own due diligence and apply for a loan by yourself or you may take a loan from one of our trusted investors (note that interest in this case will more likely be higher). All BALTA Participants are also BALTA Shareholders. Your BALTA share value will naturally grow as your land shared in common and your new home value will be growing overtime. Every Bay Area resident who has the opportunity for investing can become a BALTA Participant or a BALTA Investor.

How can I become a BALTA Participant?

First, fill out the Participant Request Form and mail it to us. Next, choose one of the BALTA Projects you wish to participate in and create your transfer account.

What is a transfer account?

Transfer account is your personal bank checking account where you hold $100k for land purchase.

Why purchase land?

Land purchase is done, first of all, as an investment by itself. After this stage is completed, BALTA Participants continue with land improvement (utilities and permits) and new homes construction. These are 3 stages of each BALTA Silicon Valley Land Shared in Common Incorporated Project. Learn more about each stage on our page For Participants.

Who will be the owner of the purchased land?

The land owner will be BALTA DBA – legal entity, where BALTA Participants will be Shareholders.

Can there be profit and how is it shared?

Every BALTA Project is a separate legal entity, an independent corporation that operates for profit. All generated profit will be the profit of the corporation and will be distributed on BALTA Shareholders Meeting according to BALTA By-Law.

What documents does the BALTA Corporation have that BALTA Participants and Investors can review?

BALTA Participants have access to all BALTA documents. There is no single document that is kept secret or hidden or not accessible to the BALTA Participants and BALTA Investors. All BALTA documentation is transparent and open. BALTA Corporation has By-Law, Minutes of the Shareholders meetings and resolutions, transaction ledger showing the distribution of shares.

Can I review the BALTA Business Plan?

BALTA Business Plan is available for confirmed BALTA Participants and BALTA Investors.

What is the difference between BALTA Participant and BALTA Investor?

BALTA Participants invest their funds with the purpose of owning a home for themselves. BALTA Investors provide financing to those BALTA Participants who are not able to accumulate the necessary amount of funds for a BALTA Project that they choose to participate in.

How investors benefit from financing BALTA Projects?

When you are a BALTA Investor, you provide secured financing to those BALTA Participants who do not have enough funds to invest on their own. Your financing may be needed on one or all stages of each BALTA Project.

What is the expected investment amount?

For Investors the amount of funds may vary from $5M to $1B as it all depends on each Project Cost.

What is the Project Cost?

The cost of the project is determined in every BALTA Business Plan.

How many investors can there be for one project?

There can only be one outside investor for each BALTA Project (Business Plan / Legal Entity).

Who finances the BALTA Project and how?

Our approach is very flexible. Each plot of land and/or each group of Participants can decide for themselves. It depends on the quality of the land, on the conditions set by officials in the field of obtaining permits, and on the goals of the Participants in this group. Some scenarios may be based solely on investing in land and waiting for the right moment to resell it, while other scenarios involve additional improvements to the land, such as obtaining permits for the construction of engineering infrastructure and utilities, which increases the cost of investment. Another scenario involves three stages: purchasing the land, improving it, and putting homes into operation for the residents. A mandatory condition for participating in all of these scenarios is the initial contribution for the purchase of land, which amounts to $100k. At the time of purchasing the land, the participants are incorporated, and the land purchase occurs through the established corporation, in which all Participants have equal shares. After that, the corporation’s business activity begins according to the pre-signed agreement of the Participants. One option for further project financing may involve each Participant making equal investments in terms and amounts specified in the Business Plan. In another option, one Participant or group of Participants makes contributions on behalf of other Participants with established interest rates, for example, 50% annually, essentially providing credit to other Participants. Such an agreement among Participants may allow the corporation to conduct business activity by taking out loans secured by the land. All possible financing options for the project are discussed in advance before purchasing the land and are included in the company documents: By-Laws, Minutes, and Participants Agreement.

Quotes and Abbreviations

DBA stands for Doing Business As
BALTA DBA is a legal entity that will be created in accordance with the Business Plan, within the California jurisdiction and incorporated by Participants of the BALTA Affordable Home Project on their initial meeting of the Shareholders by adopting By-Law and Minutes and accepting the Business Plan with DBA name associating to the place name (street name) of the Business Plan execution.
BALTA DBA stands for Bay Area Legacy Trust Association, and it is a legal entity incorporated by People of Bay Area as an interest Shareholders as a Participants of the BALTA Affordable Home Project and registered as a “C” corporation for profit under California jurisdiction and performing the business according to the California Law and Orders by employing company’s By-Law and in accordance with Minutes and decisions of the Minutes of the Shareholders.
BALTA Affordable Home Project based on the common ownership of the property as a Shared Land and other means as buildings, infrastructure, IP and other balanced items on the Incorporated BALTA DBA entity accounts by its Shareholders as a Participants of BALTA Affordable Home Project.
BALTA DBA Participants are the People of Bay Area, who are looking for affordable housing solutions within Silicon Valley and considering BALTA Affordable Home Project as a legal and effective way for resolving this issue and who wish to be incorporated to the BALTA legal entity as a shareholders and owners of the BALTA entity property and values in proportion to their shares value.
BALTA Affordable Home Project is considered as an Investment Project and implies the initial minimum investment.

BALTA DBA Business Plan addressed to the unique situation that is determined by Land properties.
BALTA Affordable Home Project is based on the moderate-income middle class of the Bay Area resident’s investment average reasonable amount that is $500k for the housing. The calculated proportion for the Business Plan First Step execution is around $100k. This step includes the Incorporation and the Land purchase. This amount is considered as a minimum initial Participant’s investment that must be accumulated on the Participant’s transaction account to be ready presented as a proof for creation of preapproval consolidated funds of BALTA DBA Incorporated upon offer to Land Seller.
BALTA DBA Business Plan based on the funding of the Participants. Each Participant may be considered as an Investor. Each Participant is considered as a BALTA DBA owner in proportion to the Shares own.
BALTA DBA is an entity that is created as a Business Plan executor and this Business Plan is unique and created to the particular Land. This Land based on the size and its property, has its own conditions and value that are implied to the Business Plan structure. Business Plan is presented with addressed Land as a unique investment opportunity for the Participant’s evaluation. In case the Participant is interested, and necessary qualified Participants are presented the process of the incorporation and Land purchasing is initiating.
BALTA DBA Investor is a person or financial institution who is ready to cover some financial obligation of BALTA DBA Participants. Each BALTA DBA entity may have just one qualified investor. The amount of the potential investments is determined in the Business Plan. Investors have a clear legal and fast exit strategy plan.
BALTA DBA Business Plan is based on the primary calculation that is based on three factors that are the land size, land price and land topography. Also, it is considered the minimum allowed lot size for each Participant and the concept of the BALTA Affordable Home Project middle class Participant’s reasonable investment that is $500k.
BALTA DBA Business Plan has the initial criteria for Participant’s evaluation. The location of the proposed land should be within Silicon Valley, the lot cost should be in the range of $100k for one Participant, the total amount of the investments to the final house delivery should not exceed $500k.
BALTA DBA incorporated by Participants based on their goal to invest in their own affordable housing. Based on this goal the Business Plan is created in the address to the Land improvement and building the house for each Participant. Each Participant becomes a shareholder of the BALTA DBA and has all rights of the ownership and for-profit distribution. Every qualified Participant upon fulfillments of Participant’s obligation receives the Shares of the BALTA DBA and becomes the BALTA DBA Shareholder. BALTA DBA is a legal entity incorporated under the California jurisdiction as “C” corporation. Participant as a Shareholder is not responsible for BALTA DBA obligations the same as BALTA DBA is not liable for obligations of its Shareholders. BALTA DBA is a holder of the Shareholder’s values as an investment and other property if appropriated by Business Plan. This is a great protection for Participant’s funds invested.
BALTA DBA may have an Investor that may be a person or legal entity or financial institution. If qualified, the Investors will have a right to create their own investment strategy for each Business Plan and offer it for consideration to the Meeting of the Shareholders. In case the Investor and Investor’s Business Strategy is approved by the Meeting of the Shareholders, the Investor may be included to the Board of Directors as a Board member and control all processes, spendings, contracts execution, vendor approvals and so on. This is a great opportunity to control the Cash Flow and Balance change and have the input to the decision-making process.
BALTA DBA Business Plan dedicates the investment opportunity to the Investor. For each Business Plan execution there can only be one qualified Investor. This term will help the Investor to create the most effective investment strategy. The primary investments will be made by Participants in the amount of $100k that is the Land purchase price. This is the first step of the Business Plan that may be considered as a final investment to the Business Plan and the Investor role may be to cover the initial investment of the Participant. Investors should qualify each Participant and specify the level of the investments required and approved based on Investor’s evaluation.
BALTA DBA may offer the participation in financing the Business Plan to the Qualified Investor. Investors should evaluate the Business Plan credibility, financial plan, cash flow, account receivable, profit and loss statements and other accountable figures and an exit strategy and to suggest the financial conditions. BALTA DBA must present all required information in case the Participant requests financial support. Participant as a Shareholder is not obligated to use the service offered by Investor.

BALTA DBA is a dedicated way to invest and make a profit by employing the individual characteristics of each Business Plan. Each Business plan for each BALTA DBA structure is unique and flexible and has an easy strategy to exit based on the strong market values as a Land in Silicon Valley location and Participants personal control on Business Plan execution.
BALTA umbrella stands for organizational structure where the BALTA Inc provides the assistance and the legal support to the BALTA DBA legal entities created as an independent corporation for profit for BALTA Affordable Home Project execution.
BALTA Affordable Home Project is the document that describes the detailed plan of the Affordable Home creation for each Participant and created for the land incorporated to the BALTA DBA Business Plan.
BALTA DBA Business Plan stands for the Business strategy created for the land purchased by BALTA DBA with a goal to improve and build affordable homes for Participants as BALTA DBA Shareholders.
BALTA DBA Business Plan Strategy is a financial, organizational and management move combination that led to the most effective way to realize the BALTA DBA Business Plan with a goal to provide the affordable housing for each Shareholder and considering the investment strategy for their Legacy.
BALTA DBA Shareholder is the BALTA Project Participant who purchased the Shares of BALTA DBA.
BALTA DBA Investor is a person or financial institution that support the financial needs of the Participants or Shareholders in order to fulfill the BALTA DBA Business Plan financial budget in accordance with Assets-Liability Balance, Cash Flow Plan and Profit and Loss Statements and considering the investments for the profit.
BALTA DBA Business Plan investment strategy stands for the BALTA DBA Shareholders and BALTA DBA Investors investment plan for investment growth and safe and profitable exit on each Step of the Business Plan during its execution.
BALTA DBA Business Plan Steps are the implementation of the completed parts of the Business Plan.
BALTA DBA Business Plan Steps as completed parts of the Business Plan have three finalized businesses within the Business Plan and each of them may be considered as a final step with the right of the exit for Investors or Shareholders and that is the land purchase, land improvement and home construction.
BALTA DBA Business Plan Step one (1) is the wrapped out and completed business of the land purchasing. This Step starts with Participants Business Plan approval, Participants transaction account creation and its fulfillment with the funds determined in the Business Plan within their financial institution in order to create consolidated pre-approved fundings for the Purchase Offer and in case of the Seller’s acceptance, Participants incorporate in to the BALTA DBA legal entity and transfer the agreed payment to the Seller’s transaction account through BALTA DBA consolidating account. During the established evaluation period to examine the Land for necessary conditions and confirm the purchase followed Land Deed issuance to the BALTA DBA ownership.
BALTA DBA Business Plan Step two (2) is the wrapped out and completed business of the land improvement. This Step starts with permits preparations in accordance with the City and County rules and regulations, vendors and the construction plan approval.
BALTA DBA Business Plan Step three (3) is the wrapped out and completed business of the infrastructure and new homes construction.
BALTA DBA Business Plan Steps fulfillment is established by the Meeting of the BALTA DBA Shareholders.
BALTA DBA Shareholder’s Meetings are held on the Request for Meeting initiated by any of the Participant as a Shareholder or as an Investor at the place allocated in Business Plan at the time specified by Participant but not less than two weeks in advance the Meeting will be held with the description of the Meeting agenda, requested subject and proposed solution.
BALTA DBA Meeting of the Shareholders is the only way to create the decision, to instruct the BALTA DBA Board to execute the decision, and or to implement the decision. The executive Meeting’s decision is adopted in case it is supported by more than half of the presented Shareholders. The legislative Meeting’s decision is adopted in case it is supported by two thirds of the presented Shareholders. The Meeting’s decision is considered final in case this decision was not appealed. Shareholders may initiate the Meeting decision appeal by Request for Meeting to Appeal the Meeting Decision. The Meeting’s decision is considered final if the appeal is not filed during the following two weeks after the Meeting’s decision was made.
BALTA DBA Meeting POD USPS informed delivery method must be used to file the Request for Meeting to the BALTA DBA Board and to each Shareholder and Investor.
BALTA DBA exit strategy for Participants as Shareholders includes a legal and convenient way to release funds by selling shares of BALTA DBA. To initiate the exit Shareholder is calling the BALTA DBA Meeting by Request for Meeting. BALTA DBA Shareholders have a first hand right on purchasing the Shares to release. The Shares may be sold to the approved Participants only. In case a Participant has financial or other obligations before other Participants, those obligations must be covered or settled with the engaged Participant before Request for Meeting. The funds to release are equal to the Shares cost and the exit amount cannot be less than the common sum of the investments made by the Participant. The upper value of the exit amount is not limited and determined by the most interested Participant considered as a new Shares owner as Shares purchaser. In case this obligation is not executable the Default Strategy is used.
BALTA DBA exit strategy for Participants as an Investor includes a legal and convenient way to release funds by selling Participant’s debts to another Participant, Investor or financial institution. To initiate the exit Investor is calling the BALTA DBA Meeting by Request for Meeting. BALTA DBA Shareholders have the primary right to purchase the obligations assumed to the Investor for the release of funds. Obligations to the Investor may be sold to the approved Participants only. In case Investor has financial or other obligations before other Participants, those obligations must be covered or settled with the engaged Participant before the Request for Meeting. The funds to release are equal to the obligations to the Investor and the exit amount cannot be less than the common sum of the investments made by the Investor. The upper value of the exit amount is not limited and determined by the most interested Participant considered as a new obligation made to the Investor owner as a new Investor. In case this obligation is not executable the Default Strategy is used.
BALTA DBA Default Strategy is described in the Business Plan and its major goal is to prevent Participant’s investments loss. This concept is based on the Three Steps Business Plan strategy and every step upon finalizing is evaluated at the BALTA DBA Meeting. Upon every Business Plan Step finalized the Meeting of the Shareholders held. This Meeting Agenda is to confirm the Business Plan Step execution and the move on to the next Step, evaluation of the investment’s growth, comparing this growth to the expected growth, analyzing the budget executed and proposed, making the correction if necessary, evaluation the Board of Director’s work and call for re-election Meeting if necessary.