FAQs

We have relationships with commercial brokers who bring us deals often before they go on the open market.  We also occasionally engage in direct marketing campaigns and are constantly building relationships with banks to get access to their REO inventory.  Once presented with an opportunity, our team then underwrites every single property to the highest standards and eliminates those that do not qualify.  We then send each property to a team of mentors and coaches to ensure long term sustainability.

All our investment and private placement memorandums are based on individual properties, and every property is different, and will therefore offer different returns. Our current investors are realizing a 7-8% preferred return rate and expect to more than double this return upon the sale or refinancing of the property for overall investment lifecycle returns of 16-18%. Our returns consist of three parts.

1. Preferred Return from Cash Flow: Each investment is selected such that it pays a minimum average annual preferred return of 7% (depending on the individual property deal, this could be higher) which is paid out quarterly via direct deposit into your bank account or by check. In other words, the investors get paid first before we (the sponsors) get paid anything. This protects you as an investor and makes sure we only pick projects that have strong cash flow outlooks.

2. Refinance Proceeds: On select properties, we purchase the property using a short term bridge loan then refinance based on the new property value into a traditional loan after 1-2 years. We use this option when we can greatly increase the value of the property in the first year of ownership. In these situations, it is our goal to return 100% of the initial invested amount to each investor with the funds received when refinancing. The investor then receives “infinite” returns because they continue to receive cash flow payments even though all of their capital has been returned.

3. Profit Share: Upon the sale of the property, the outstanding initial invested amount is returned to each investor and then profits from the sale are split between sponsors and investors based on the equity split as defined in the private placement memorandum that was signed before the initial investment was made. A sample split would be a 75/25 split which is 75% of the cash flow and profits to the investors and 25% of the cash flow and profits to the sponsors.