There are unprecedented advantages for incorporating real estate into you portfolio. The incentive for our partners is an opportunity to increase cash flow through the sale of properties creating higher short term profit, gain equity in real estate holdings, and to yield from rental income long term. Real Estate offers a tangibility aspect to investor portfolio as it originates from hard assets. Reliability of income is important to us and we believe participating in real estate at this level will limit risk and enable us to increase projections for residual cash flow into the future. As many of our investors and other professionals have noted, the structure of our real estate funds are unique and unlike most any other on the market.
We create our funds with a two tiered platform.
• First tier- acquire, renovate/build, and sell for high net gains.
• Second tier- a consistent, long term, buy and hold approach.
Short Term Platform
Our short term platform consists of us taking advantage of distressed or high margin properties and flip for profit. We leverage with our banking partners, 3rd party investors, and fund assets to develop the properties to maximize returns. The capital used is returned back into the fund, along with profits, when a property is sold. Investors then receive interest payouts through the net profits of the sale in the form of a distribution.
Our partners enjoy the benefit of receiving dividends on their investment while maintaining their position without having to continually re-invest. Your capital continues to work for you in future properties increasing your return on investment. Once we have hit our targeted goals, we then transition the assets of the fund into our “buy and hold” strategy.
Long Term Platform
The long term platform consists of us leveraging our assets to acquire real estate properties that have an upside of continued residual income, as well as building equity value into the future. A key benefit to our partners is not only a high level of return through the short term platform, but they also maintain their interest moving forward for continual income and a full equity position with an exit strategy that could pay out multiple times over.
After hitting certain targets and goals, we will start transitioning into our long term platform which we refer to as a “buy and hold” strategy. This approach allows us to leverage the value of our funds and purchase multi-unit complexes, such as apartments, storage units, or multiple rental properties. Our partners then own income producing assets without having to come back out of pocket. The investments are made using the initial capital invested in the fund. These assets provide the benefit of residual cash flow, as well as equity positions moving forward. The revenue provided from these properties are paid out to investors through net profit distributions. The leveraged debt will be paid off over a period of time using a portion of the payments made by the tenants of these units. Over time, the assets would not only distribute residual income for all partners, but it also provides an opportunity to exit the investment with a potentially large payout.
Real Estate investors all around the world have utilized the advantages of building long term equity to realize large future gains. The fund offers the ability to receive the benefits of a high rate of return in the short term, residual income during the long term, and finally the opportunity to sell our assets, which could provide a multiple return on investment. Historically, multi-unit income properties have proven to rise substantially in value over time. During the management phase, we expect to be able to increase our equity position as our banking partners’ positions decrease. Once we have hit what we believe to be a profitable selling point, we will have the opportunity to sell or re-finance our equity. Investors would then be able to accept a cash payout based on their interest in the fund.