A fund focused on high-yield, 1st and 2nd position loans and in some cases will take a share of the developer’s profits.
- Loans are always secured by real estate or real estate-related assets
- An experienced fund management team typically reviews dozens of deals before they decide to make an investment.
- Funds are lent to borrowers who are willing to pay the interest rate the fund charges because they need the money to complete a short-term project, such as renovation, repurposing or improving the property, which will enable the developer to sell the property for a higher price once the improvements are completed.
- One of the benefits of lending against Real Estate is that the loan is secured against a physical asset. To maximize the security of each investment made, investor’s capital is pooled in a fund and then invested in multiple projects, typically across different asset classes and geographies for maximum risk diversification.
A fund designed to reduce risk and maximize returns by investing in a diversified portfolio of real estate projects, hand selected by the fund’s management team for the best combination of security and profit potential.
- Structured so that the investor is protected.
- Some funds allow reinvesting
- Annual interest at 6%
- Paid to investors in equal monthly installments
- Held in a reserve escrow account to assure that you will get your payments on time
- Properties can include multi-unit apartment buildings, mixed-use developments, hotels, medical buildings, shopping centers, office buildings, assisted living facilities or other kinds of commercial projects.