Reliable 8% returns
for accredited investors
How would you like to invest in real estate and see returns of up to 8%, without the hassle of sourcing and financing your own properties?
There is a stable, time-tested, and diversified Real Estate Debt Fund offering exactly that.
I invest in this myself, which is why I’m happy to share it with you — I know it delivers on its promises.
Established in 2009 and officially filed with the Securities and Exchange Commissions, the fund was created with one simple goal: to provide accredited investors with a debt fund that provides reliable cash flow and liquidity. Passive income is paid out twice a year and you can withdraw your principal within any 12-month period (and a lot of times receive it within 3 months).
Let’s take a closer look at the details.
Introduction to the fund
Every cent that you invest into this fund goes into commercial and residential properties and nothing else — no crypto, VC projects, or speculative opportunities.
The question on your mind is probably “Can I trust this investment?”
As with any financial investment, it’s never possible to say that it’s completely risk free. But aside from the usual assurances like being filed with the SEC, it’s run by a man who had over 25 years’ experience as a successful real estate investor before he started this debt fund. He also has a personal property portfolio worth more than $50 million.
That means he’s operating in an industry he knows intimately and has extensive experience in — two factors that appeal to us as investors.
The fund is also backed by the founder’s other, earlier fund. It’s paid out more than $16 million since then, has never missed a payment, and is projected to pay over $2 million to investors in 2023 alone.
HISTORICAL DISTRIBUTIONS
Like I said before, I trust this fund with some of my own portfolio and it’s delivered on every promise.
Here are some of the benefits:
- There are no fees
- Investors have no liability
- Income is paid every 6 months
- You can use retirement savings to invest
- Fixed income of either 6% or 8%, depending on the amount invested
- You can withdraw your money inside of 12 months instead of locking it up for years
Plus, there’s a full team of project managers, architects, contracts, designers, structural engineers, brokers, and support staff, all working hard to maximize returns.
How it works
This Real Estate Debt Fund looks for residential and commercial properties that provide maximum cashflow or resale profits within a relatively short space of time.
Specifically, properties in great neighborhoods, below market prices, with the ability to be developed and/or repositioned. It follows the five-step FACTS process to cover all of the above:
1. Find
2. Analyze
3. Control
4. Time
5. Strategize
Residential properties undergo extensive renovation that increases the value enormously, with an average turnaround time from purchase to exit of 12-24 months. As you can see, we’re not talking about a coat of paint and new carpets. These properties are completely transformed, with a typical rehab spend of $400 to $500 per square foot, and exiting at $1500-$2000 per square foot.
The rehabbing of commercial properties has a longer time frame of up to five years, generating cash flow for the fund to provide liquidity and allow investors to cash out if they choose.
Specifically:
- Residential properties are purchased in San Francisco, California, for large cash gains that create fund liquidity.
- Commercial mixed use properties are purchased in Old San Juan, Puerto Rico, and held for the long term to create cash flow.
- Single tenant buildings are held nationwide with long-term leases with corporate guarantees. These are later sold for maximum profit.
The fund is a California Limited Liability Company and follows the SEC rules of capital deployment. As a debt offering, investors enjoy the advantages and rights of Lenders, including:
- Security
- High liquidity
- Generous cash flow interest income
- No fees - acquisition, management, disposition
There are also distinct benefits for investors:
- Direct cash investment (cash from savings, low interest credit lines etc.)
- Qualified retirement plans investments
- 1031 exchanges can be arranged into the fund to defer your capital gains
Real properties from the fund
156 Liberty St.
San Francisco, CA
80 6th Ave.
San Francisco, CA
How to get started
If you’re an accredited investor with a minimum of $25,000 available to invest, complete the form below. A member of the team will contact you to verify that you’re an accredited investor and then you’ll just wait for approval.
Once approved, you’ll also have the option to have a meeting with the fund manager to ask any questions and get to know him prior to investing your money.
An accredited investor is defined as an individual with:
- A net worth of $1 million or higher, excluding your primary residence (this net worth can include your spouse or partner)
- A personal income higher than $200,000, or a joint income of $300,000, in each of the last two years and a reasonable expectation to earn the same in the current year
FAQS
This Real Estate Debt Fund is only available to accredited investors, defined as someone with a net worth of at least $1 million — excluding their primary home — or a personal income of $200,000, or a joint income of $300,000, for at least the last two years and the expectation to earn the same this year.
Yes. The Class B debt share has a $25,000 minimum investment and pays 6% interest. Fractional shares are available after the first share is purchased, up to a total investment of $249,000.
Class A debt share has a $250,000 minimum investment with no maximum limit, and pays 8% interest.
As with any investment, it’s impossible to say there is zero risk. However, the fund has a proven track record since it was founded in 2009, and its founder has a personal portfolio in excess of $50million. Aside from its strong track record, the fund mitigates risk by being well diversified — instead of being tied up in a single property, it purchases multiple properties across multiple types and locations.
Yes, provided the requirements are met the fund permits IRA and 401k investors.
No, including for acquisition, management, and distribution.
Investors are paid twice a year, on February 28 and August 31.
You can cash out by giving 12 months’ notice at any time. It’s possible to be fully cashed out within the 12 months and, in many instances, in under 3 months.
The fund has a specific aim of purchasing properties that provide liquidity, through selling at a substantial profit or providing ongoing cash flow.
