Certainty in an Uncertain World…

 

It’s been said the only thing certain in life is death and taxes.

Of course, properly structured and well-advised real estate investors can usually mitigate most of their taxes.

Meanwhile, before people die, they live.  Along the way, they get older.  And as people age, their needs change …

… and because entrepreneurship is about serving needs, it’s a safe bet there’s some opportunity in meeting the needs of aging people.

In a recent radio show, we talked about investing in undeniable demographics … specifically, the baby boomers … who are moving into retirement and beyond.

A few days later, this headline popped up in our news feed:

More Growth Ahead in Seniors Housing – NREI August 16, 2017

“… research shows continued confidence in improving fundamentals …”

Of course, if you’ve been following The Real Estate Guys™ for any time, you know senior housing in general … and residential assisted living in particular … is a niche we REALLY like.

The article affirms our belief that …

“ Demographics continue to be a big driver for development.”

“ ‘As active as the market is with the product that we have today, we are looking at the tip of the iceberg in terms of boomers hitting retirement age,’ says Scott Stewart, a managing partner at Capitol Seniors Housing, a private equity-backed real estate acquisition, development and investment management firm based in Washington, D.C.”

“ ‘The fast-paced growth of that population in that sector is going to make today’s discussion of overbuilding obsolete, because there just aren’t enough places for everybody today,’ ” he says.”

 The article is addressing … diffusing … concerns about over-building in the niche …

“ Demand mops up new supply.”

 “Despite the new supply coming online, respondents remain confident in improving fundamentals. A majority of respondents (78 percent) anticipate that rents will rise over the next 12 months …”

Other notable comments include …

“When asked to rate the strength of market fundamentals by region, the South/Southeast/Southwest rated the highest.”

 “When comparing with other property types, respondents continue to rate seniors housing as a highly attractive property type. Its scores topped that of the five major property types on a scale of one to 10.”

Okay, so it’s probably clear there’s some real opportunity here.

But if you’re a Mom-and-Pop investor, does it make sense to jump into a niche that’s attracting big players … or are you just cruising for a bruising?

No … and YES!

When you invest in housing for seniors it’s critical to understand the difference between a high-density community and a residential facility …

… and not just from the investor’s perspective, but from the resident’s perspective.

Let’s start with the resident …

There are some seniors … probably MOST … and their children (the decision makers in many cases) who’d rather see Mom or Dad live in a real home …

… in a tree-lined residential neighborhood, with a backyard, and neighbors … where residents don’t feel like inmates in an institution.

Please understand … we’re not slamming the great people or services provided in bigger facilities.

We’re just saying from a senior’s perspective, having a room in a home in a regular neighborhood FEELS a lot different than living in a room at a campus for old people.

But for a BIG investor, those individual homes are a logistical problem.

To move BIG money, you need economies of scale and the ability to buy or build a lot of inventory at one time.

It’s the same problem Warren Buffet alluded to when he told CNBC …

“I’d buy up a ‘couple of hundred thousand” single-family homes if I could.”

The challenge, as noted in this Forbes article about Buffet’s statement, is …

“… the cost and logistics of making such an investment in large enough size to move the needle for Berkshire Hathaway is prohibitive.”

The point is big money can’t play well at the single-family residential (SFR) level …

… even if the SFR’s are being converted into highly-profitable residential assisted living facilities.

But YOU can.  And that’s why we like them.  Think about it …

The supply and demand fundamentals are solid.

The priority for expenditure is near the top of the list for any family.  Taking care of Mom or Dad is far from a discretionary purchase …

… so as an investor, being that far up your tenant’s payment priority ladder is a much safer place to be in uncertain economic times.

Plus, much of the money to pay you comes from insurance, government, and the senior’s estate.  In other words, you’re very likely to get paid … even in a weak jobs and weak wages economy.

Also, you don’t have to compete with big money investors, even though they clearly see the opportunity and are moving into the space.

That’s because the barrier to entry for the big money isn’t how MUCH money is needed … it’s how LITTLE is needed.

Meanwhile, the customers would rather live in YOUR product than big money’s product.  So while big money is adding to supply, they’re not really in your niche.

This is a BEAUTIFUL thing.

But it gets better …

Residential assisted living homes can’t be mass produced.  They need to be built or converted one at a time.  There’s very little threat of a big player glutting the market.

And taking lessons learned from watching hedge funds move into the SFR space … big money was only able to acquire tens of thousands of SFRs because huge blocks of inventory were available temporarily through mass foreclosures.

We don’t think there’ll be mass foreclosures in residential assisted living facilities.  They’re way too profitable.

But because this kind of senior housing is in high demand and highly profitable, at some point big money will start assembling them …

… buying up groups of homes from multi-facility operators … and then buying up nearby individual facilities which can strategically integrate into existing operations.

It’s called consolidation … and when it comes, big money will bid up existing operations (creating equity for those already there) …

… because they can recover the “over-payment” through operational efficiencies and financial leverage.

Between now and then, for the street level investor, the big opportunity is to be part of building the inventory by converting homes into residential assisted living facilities …

… cash-flowing along the way … then one day cashing out to big money players.

And if those big money players never show up … just keep on cash-flowing while providing a much needed service to the community.

Until next time … good investing!

Certainty in an Uncertain World… is a post from The Real Estate Guys Radio Show.

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6 Ways to Finance Your Real Estate Projects

So you found the perfect house flipping deal that you have been reading so much about. It’s exactly the kind of real estate deal you see on HGTV. You’ve called your realtor, toured the property, your neighbor who’s a contractor worked up a renovation estimate, you’ve looked at comparable properties and convinced yourself you have found the needle in the haystack. The perfect deal. Let’s look at some important factors before deciding how to finance your real estate investment.

Create A Strict Budget

The first thing you need to do is work up a strict budget. This is not something to draw out on the back of a napkin. Your potential real estate investors want to see that the investment follows a strict budget. A couple factors to consider when creating a strict budget for your new investment property are as follows.

• Closing & carry costs – insurance, utilities, interest, title insurance, survey, etc.

• Sales costs – commissions, home warranty, transfer stamps, etc. (usually they total about 8 percent).

Once you know your budget and you have made an offer and the seller accepted subject to financing, where will the capital come from?

Where Will the Capital Come From?

Will you use your own resources or will you be leveraging all or part of the project? If you’ve done your numbers, the more you finance the greater the return on every dollar you invest out-of-pocket. This example demonstrates the difference between using your own capital and financing:

Using Your Own Cash
Purchase Price: $100,000
Renovation Costs: $50,000
Cash Out Of Pocket: $150,000
Sales Price: $200,000
Profit Amount: $50,000
Return On Investment (ROI): 33%

Using 70% Financing
Purchase Price: $100,000
Renovation Costs: $50,000
Costs of Financing: $10,000
Cash Out Of Pocket: $55,000
Sales Price: $200,000
Profit Amount: $40,000
Return On Investment (ROI): 73%

In this example, while financing your project lowers your total profits, it increase your profit margin tremendously and, with only a fraction of cash invested, you are able to avoid locking your assets into individual projects and spread them across more investments.

Leveraging Your Assets

Even though you may have the ability to pay cash for your project that doesn’t mean you should. As shown in the example above, leveraging your assets increases your return on investment (ROI) and gives you the ability to spread your money and fund multiple projects, while lowering your risks.

Get Financing for Your Real Estate Investments

Traditional Lenders

Banks and credit unions are on the top of the traditional lender list. Traditional lenders typically carry the best rates available but be prepared for a proctology exam. Most traditional lenders require a credit score of 680 or more, full documentation of income and debts, full appraisal and inspection reports, background check, significant “skin-in-the-game” (down-payment) and upfront fees for underwriting the deal. The process can be painful, slow, and repetitive. But, if you have your ducks in a row and are willing to put in the effort, this could be a cost-effective strategy for you.

Seller Financing

This is an ideal scenario since very little documentation is required and it is a quick part of the negotiations. But be wary, because some sellers will offer financing only on the condition of a quick sale. This quick sale may hamper your “due diligence” by forcing a close before you can adequately perform recommended inspections. Sellers are less likely to accept this alternative unless they are either looking for an income stream, subject to taxation on the sale or simply hoping you default.

Hard Money

hard money lender

Get the most from your real estate investments

Hard money is a loan that is issued by private lenders. These loans are normally asset-backed loans that are short term and lent against the After Rehab Value (ARV). These are loan instruments that real estate investors can use to finance a quick fix and flip deal. But beware, quick and easy is not necessarily the best solution.

Hard money loans are not only expensive, but short term. You should expect fees going in and coming out as well as rates to be near usury.  Hard money loan terms are short, so don’t miss a payment or you risk losing the property. There are a lot of solid Hard Money lenders available, but you need to spend considerable time underwriting the issuers.

Family And Friends 

Approaching friends and family is also easy, and they need less convincing than other moneylenders. Have your plan together or, better yet, some portfolio to show and you should have little resistance building to your capital stack.

Keep in mind that family members tend to come with their own sets of complications, whereas with friends or associates, these kinds of emotional issues tend not to occur. Just know that whenever family is involved in business, things can get complicated.

Partners

Partnerships can be a great way to get started investing in real estate. Typically, a person might go to a private investor to get funding in exchange for doing the labor and management in preparation for the resale. You will end up splitting the profits in half, sometimes even more but it is a quick way to build momentum when investing in real estate.

On the upside, this type of partnership isn’t necessary to draw up any formal agreement as you can work on a deal-by-deal basis. But, on the downside you are likely to lose some of the decision making and control over renovation and deal making.

Crowdfunding

Crowdfunding is a relatively new alternative to creative financing real estate acquisitions. The SEC passed a law in 2012, which opened the floodgates for open solicitation of investment opportunities as long as the investors qualify as an accredited investor. With crowdfunding, you can expect competitive rates, underwriting and unbelievable fast turn-around time.

Real estate crowdfunding companies sprung up overnight to raise capital through online portals for investors. Because of this rapid influx of real estate crowdfunding businesses, it is necessary to exercise caution as a majority of these companies are run by technology entrepreneurs and not industry experts. Real estate professionals have the experience and knowledge to properly advise when an investment deal will be viable and worthy to investors.

Finding a company with years of real estate experience that understands the intricacies of finance, development, asset management and acquisitions is very important to successfully financing your real estate endeavors. RealtyeVest has a team of real estate professionals that will assist you in raising capital and leverage your assets to increase ROI for each property you find.

So, if you are a real estate developer interested in leveraging your assets or raising capital for your real estate investment properties, register with RealtyeVest to learn more about becoming a sponsor today.

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Opportunity Knocks – RealtyeVest Is The One-Stop Platform For Real Estate Investing, Project Financing

RealtyeVest formerly IHT Realty Group Simplifies Real Estate Investing

Jacksonville, FL, May 1, 2017 — RealtyeVest, formerly IHT Realty Group, officially unveiled their new brand and optimized website. Destined to become one of the largest real estate crowdfunding platforms in the U.S., the new RealtyeVest website (realtyevest.com) provides a simple, secure and transparent platform for accredited investors, real estate developers and owner-operators.

“Our decision to rebrand from IHT Realty Group to RealtyeVest was a result of listening to feedback from our strategic partners and observing best practices in the industry,” said Daniel Summers, CEO. “We believe our new name better represents the essence of our business, and we are excited about the innovative technology that powers our new online marketplace. We spared no expense in the new build, providing a win-win to our investors and Sponsors.”

With over 40 years of experience in the commercial real estate industry, Summers is a thought-leader in the real estate crowdfunding space. He frequently speaks at real estate conferences, investment conventions, and is scheduled to present at the upcoming 6th Annual Global Crowdfunding Convention in Las Vegas, Sponsored by Microsoft.

The distinguishing descriptions of the RealtyeVest brand are: Simple, Secure and Transparent.

Simple: RealtyeVest is an online marketplace that connects investors and Sponsors (real estate owner-operators) to crowdfund exclusive real estate investments. Their platform allows its members to browse, research and make informed investment decisions on these exclusive properties.

Secure: Investors can sleep soundly knowing their money is well invested. RealtyeVest uses the highest cyber-security measures to constantly monitor and maintain the safest online marketplace.

Transparent: Investors have at their fingertips an online dashboard where they can conveniently monitor the status and track the growth of their investments. The average real estate investment offering on the platform yields a 10% return and, oftentimes significantly more.

Investment opportunities with RealtyeVest are available only to accredited investors.

To learn more about RealtyeVest, visit their website (realtyevest.com). Connect with them on social media @RealtyeVest, on Facebook, or Linkedin.

 

Contacts:
David Meacham                                                                          Daniel Summers
Ignite Agency                                                                               RealtyeVest
(949) 235-8862                                                                           (904) 501-7693
dmeacham@conservaco.com                                                   dsummers@ihtrealty.com

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RealtyeVest Offers High-yield Investment Opportunity in Brand New Assisted Living Facility in Pearl River County

The Monroe House to Draw Seniors from Mississippi, Alabama, Louisiana to the Growing Community

CARRIERE, Miss., May 16, 2017 — RealtyeVest announced today capital raise plans for brand new construction of The Monroe House, an assisted living and memory care facility in Pearl River County, Mississippi. The beautiful, spacious facility sits on 4.4 sprawling acres, less than four miles from the new state-of-the-art Highland Memorial Hospital in Picayune. The Monroe House promises to attract seniors from nearby areas of Louisiana, Alabama and Mississippi.

“We are excited that this project offers amazing high-yield returns to our investors, and a much-needed facility for the local Carriere community.” said Dan Summers, CEO of RealtyeVest. “With access to private deal flow and unique investment mechanisms, RealtyeVest offers affordable real estate opportunities that investors would otherwise not be able to access.”

The Monroe House will be a 40,000 square-feet single story building with 60 one-bedroom, one-bathroom living quarters. Pearl River County has enjoyed consistent population growth over the past several years, where almost 20 percent of the residents are over 55 years old.

RealtyeVest has opened its online platform and social network to provide accredited investors unprecedented access to professional-grade real estate. Unlike competitors, RealtyeVest vets each offering through an extensive due-diligence process and remains actively involved through completion, investing side-by-side with investors. Investment opportunities on the RealtyeVest debt platform offer a 10 plus 10 reward program (10 percent annual return plus 10 percent profit share, while being secured with a first lien position on the asset).

The Monroe House offering sweetens investor enticement as an opportunity to immediately engage in.

A rendering of the 40,000-square-feet, single-story facility.

“Our sponsor, longtime local banker Paul C. Monroe, wanted to kick off this program by aggressively offering a 12 percent yield and 10 percent participation on the first $1M,” said Summers.

Construction has been approved by the planning and zoning commission, and the board of supervisors. The building will feature large, modern community areas for residents. The rooms are approximately 20 percent larger than other assisted living facilities in the area. Each room will be equipped with a computer, high-speed wi-fi access, a television and telephone capable for video conferencing with family and friends.

“Until now, 13 million accredited investors in the country only had access to a fraction of the real estate opportunities on the market,” said Paul C. Monroe, project sponsor. “As a leading real estate investment management company, RealtyeVest has created a marketplace that allows investors to curate a profitable portfolio, while also expanding their network of other like-minded investors.”

Mr. Monroe has deep experience in real estate development as a co-owner and manager of multiple developments around Alabama and Mississippi, such as the Turnberry Condominiums, a 200-unit development, and the Bella Luna, a 128-unit high-rise with a 50-berth marina. He has also held various board and civic positions, including commissioner of the Mississippi Motor Vehicle Commission and Director of the Pascagoula Chamber of Commerce.

Income for the project is projected to reach stabilization within, or fewer than, 12 months, generating approximately $1.5M in gross revenue and netting an income of $168,746 by the end of its first year of operation. By the fifth year, it is projected to net an annual income of $733,000. Check out The Monroe House for more information.

Learn more about RealtyeVest at www.realtyevest.com. Connect with them on social media @RealtyeVest, on Facebook or Linkedin.

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Sponsor Spotlight – John Daley: Raise Capital For Real Estate

When John Daley, 55, wanted to start investing in assisted living homes, he didn’t go the traditional route of borrowing money from a bank. Instead, he looked to RealtyeVest, the premiere real estate crowdfunding platform, to raise capital for real estate that he needed in order to purchase his next fix and flip project. Thirty days later, RealtyeVest had raised $215,000 from various investors around the country and Daley had his property.

Under construction now, the Sweet Water Park project is a residential assisted living facility in Jacksonville, Fla… The project build out will consist of three phases, which will take place over the next several months.

“The first phase will be licensed for 15 beds and is under construction right now, and should be completed by July. After that, it will take between 60-90 days of licensing and we should open our doors for business by September,” Daley said.

“The second phase will include adding another 15 beds in a new construction project on the property. Phase three will include expanding the current structures so in the end there will be a total of 50 beds at this location. The structures are being built on 5.8 acres in a park-like setting that features a one-acre pond, trees and benches. There will be front porch seating so the residents will be able to enjoy the gorgeous view of the pond in the Florida weather. Residents will also enjoy one-on-one care, organic produce and fresh ingredients in all the food provided.”

Originally from Biloxi, Miss., Daley, 55, has been living in Florida for the majority of his adult life. His interest in real estate peaked seven years ago, when he saw a Carleton Sheets’ infomercial on television. From there, he joined a real estate investment club in Jacksonville, where he spent eight months learning the intricacies of real estate investing.
Since, Daley has been involved in several renovation projects, including six single-family homes, three of which have been sold.

Q: What is the secret to your success and how have you been able to secure financing for those projects?
Mr. Daley: Actually, I have now sold five of the six single-family homes. I only have one house left and that should be on the market in about two weeks. After that, I am going to concentrate on my Assisted Living project until it is up and running. As for the secret to my success, it is all about buying right and not taking any short cuts. Once completed, my houses sell within a week because I purchase them at a low enough price that sets me up to make a profit. Having said that, we do not take any shortcuts when it comes to making renovations. The last house I sold, the buyers home inspector stated on the home inspection that it was the best renovation by an investor he had ever seen.

Q. Tell me about your next project(s) and where you see yourself in five years?
Mr. Daley: Once the Sweet Water facility is up and running, I have plans to open several more Assisted Living Facilities in Jacksonville and several other locations. As for the Florida market, I have plans to open another four to five Assisted Living Facilities in the Jacksonville area within the next 5 years.

Q. How has your experience raising capital through crowdfunding platforms helped expedite the timeline of past, present and future projects?
Mr. Daley: My ability to raise capital for real estate through crowdfunding platforms has helped me move much faster on obtaining my first Assisted Living Facility. I spent many months jumping through hoops without any approval for a small business association loan before I was approached by Dan Summers of RealtyeVest about crowdfunding. As I mentioned, through crowdfunding, I was able to get the perfect property under contract and purchased within about 30 days.

Q. How has your business been received since partnering with RealtyeVest?
Mr. Daley: Everyone I have spoken with about Sweet Water has been extremely impressed with the design and speed of the project, which might not have happened without RealtyeVest and the funds they have raised for the project.

Q. Lastly, would you recommend RealtyeVest to other developers and real estate operators?
Mr. Daley: I have financed several real estate projects using crowdfunding through RealtyeVest and would recommend RealtyeVest to any real estate investor or operator. They have come through for me in raising funds on every project that I have done with them.

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June Newsletter: Lower Entry, Investor Growth & New Offerings

RealtyeVest’s Lowers Minimum Investments Across the Board

Beginning in June RealtyeVest’s investor community will be able to participate in all investments for as little as $5,000. This will allow for new and experienced investors to get into more deals and diversify their real estate investments across more offerings.

Since the launch of the new RealtyeVest platform, our investor base has experienced a 61% growth rate over the previous month. This growth has largely stemmed from our extensive marketing campaigns, rebranding efforts, new investment offerings and promotional outreach.

RealtyeVest is evolving into a national crowdfunding brand. We have recently been invited to speak at a number of national and international conferences along with attracting several very large sponsors.  Other national crowdfunding platforms are evolving into more of a traditional lending capacity, making the on-boarding process laborious and untimely, while RealtyeVest remains nimble and user-friendly.


 June Updates

The Monroe House

RealtyeVest is pleased to announce that it has recently added a new debt investment offering for a 40,000-square-feet Assisted Living Facility in southwestern Mississippi, near the Louisiana state line. The development includes 60 one-bedroom/bathroom units.

Dubbed The Monroe House, the project is a $1,000,000 debt investment opportunity that’s being offered at 12% interest as a current payment with 10% profit participation in a capital event. The total raise for the project will be $5,000,000 in five total tranches. Construction for the development has been approved by the planning and zoning commission, and the board of supervisors.

VIEW DETAILS

Island Oaks

RealtyeVest is pleased to announce that it has recently added a new debt investment offering in Merritt Island, Florida. Island Oaks Condominiums is a four-building, 48-unit condominium development located off North Courtenay Parkway. The community also lies within the Space Coast, an area inside Brevard County that got its name because of its proximity to the Kennedy Space Center and Cape Canaveral Air Force Station.

The development, which is currently under construction, is $2,000,000 debt investment opportunity with a 10% ROI and 10% profit participation. The total cost to capitalize the development is $10,271,520, which includes $1,500,000 in land acquisition costs; $6,252,000 in construction hard costs; $707,000 in soft costs; and $1,812,520 in carrying costs and project fees.

Why We Like This Deal


A Word From The CEO


“You spoke and we listened… we lowered the minimum investment on “every” deal on our site to $5,000. This opens the floodgates for first time investors to invest with us with an increased comfort level. We look forward to working with new and seasoned investors and as always, I am available via phone or email to answer any questions. Thank you and Happy Investing.” – Dan Summers

Tip of the Month

A lot of investors try to cut corners to save money, but in our opinion, they end up having more issues when they attempt to sell the property. If a renovation project is not done correctly and repairs are left needed… don’t expect to get the full market value of the asset. Look to crowdfunding for additional capital to help with the unexpected costs and renovations of projects.


RECENTLY CLOSED DEALS

Sweet Water Park Assisted Living Facility

The equity investment portion on this Senior Living Project, which offered a 28% ROI, has just closed. Under construction now, Sweet Water Park is a residential assisted living project in Jacksonville, Fla. The project build out will consist of three phases, which will take place over the next several months. The first phase will be licensed for 15 beds and should be completed by July.  The second phase will include adding another 15 beds in a new construction project on the property. Phase three will include expanding the current structures so in the end there will be a total of 50 beds at this location. The structures are being built on 5.8 acres in a park-like setting that features a one-acre pond, trees and benches.

But for the investors who participated in this project, there is nothing left to do but relax and enjoy the fruits of passive real estate investing.

For more information on Sweet Water Park check out our spotlight interview with project sponsor John Daley.


“Buy land, they’re not making it anymore” – Mark Twain


SPONSOR SPOTLIGHT: Mr. John Daley


Originally from Biloxi, Miss., Daley, 55, has been living in Florida for the majority of his adult life. His interest in real estate peaked seven years ago, when he saw a Carleton Sheets’ infomercial on television. From there, he joined a real estate investment club in Jacksonville, where he spent eight months learning the intricacies of real estate investing.

Since then, Daley has been involved in several renovation projects, including six single-family homes, five of which that have already been sold, he said, “and the sixth should be on the market in about two weeks.”

READ FULL INTERVIEW


Events


Crowd Invest Summit West 2017
RealtyeVest CEO Daniel Summers is scheduled to present at the upcoming 6th Annual Global Crowdfunding Convention at the Planet Hollywood Resort & Casino in Las Vegas, Oct. 23rd – 24th.

The two-day convention, sponsored by Microsoft, is considered the flagship crowdfunding event of the year!

Get Your Tickets

The post June Newsletter: Lower Entry, Investor Growth & New Offerings appeared first on RealtyeVest Crowdfunding News.

Press Release: Introducing Exclusive No-Load Pledge Fund

REALTYeVEST INTRODUCES EXCLUSIVE SINGLE FAMILY NO-LOAD PLEDGE FUND

Offers Investors Unique Opportunities in High-Performing SFR Asset Class

Jacksonville, FL, June 15, 2017 — RealtyeVest seeks accredited investors to create an exclusive $1M Single Family No-Load (1) Pledge Fund for the fast financing of highly opportunistic off-market Single Family Residential (SFRs) deals in North Florida’s profitable SFR buy-renovate-sell market. Investors in this eFund strategy will have a strategic advantage over competing non-fund investors.

“Given the number of Funds seeking capital in today’s private equity market, emerging managers often run into difficulty finding investors willing to fully commit their capital for 10 to 12 years in a traditional blind-pool private equity fund structure,” said Daniel Summers, CEO of RealtyeVest. “As a result, our clients have increasingly asked us about short-term, No-Load alternatives to the traditional private equity/debt Fund model.”

What is a Pledge Fund
A Pledge Fund is an arrangement where investors pledge a predetermined dollar amount into an investment pool with pre-disclosed parameters. Sponsors (real estate operators) have access to the pledge fund for fast financing of attractive deals, enabling them to almost always edge out the competition. Details of every investment opportunity are completely transparent, providing investors the choice, on a deal-by-deal basis, whether to participate in an investment.

Hottest Market Opportunities
North Florida is the hottest real estate market in the United States according to Forbes. Single family properties are increasingly in high-demand and selling quickly in the Greater Jacksonville area. Real estate investors who have their financing secured ahead of time stand the best chance of acquiring the hottest properties normally without layers of brokerage fees, and earning aggressive financial returns on their investment.

Pledge Fund Property Distinctions

  • Located in Duval, St. Johns, Clay, and Nassau Counties
  • Off-Market
  • Single Family Residences
  • No Mobile or Manufactured Homes
  • No Rural Areas, Located in Up-Trending Neighborhoods
  • ARV (After Repair Value) Generally Between $100k – $300k

Pledge Fund Financial Overview

  • $1,000,000.00 Pre-Pledged Fund
  • Interest Only Loan (2)
  • 10% Interest Paid Monthly
  • 10% Profit Participation From Net Profits (5)
  • Secured By a 1st Mortgage with 1st Lien Position (3)
  • Pre-Paid Interest Will Be Held in Escrow and Drawn Upon For The Length of Term
  • Loan to Verifiable ARV (4) Not to Exceed 70%
  • Normal term is 6-9 months
  1.  No-Load Fund – A no-load fund means you can invest in shares of the fund at any time without a commission or sales charge.
    Interest-Only Loan – A non-amortizing loan in which the lender receives interest during the term of the loan and principal is repaid in a lump sum at maturity.
  2. 1st Lien Position – A lender or creditor in a first lien position has priority in case a debtor defaults and collateral has to be liquefied to settle the debt. For example, mortgage lenders are usually in a first lien position; if a borrower defaults on his payments, the mortgage lender is the first creditor to receive remuneration from the sale of the property.
  3. ARV – ARV stands for After Repair Value. This is an estimated value of a property after it has been completely renovated. This is a crucial number for those flipping homes and allows you to calculate the spread between what you should purchase it for and the price you can expect to resell it for.
  4. Net Profits – defined as Gross sales price less any and all acquisition costs, holding costs, rehab costs, closing costs including but not limited to liens, commissions, title charges, etc.

Carpe Diem
Because RealtyeVest’s Single-Family No-Load Pledge Fund is financing properties exclusively in America’s hottest real estate market, the Pledge Fund will quickly reach it’s $1M funding goal. Accredited investors are encouraged to immediately express their interest in pledging to the fund in order to seize their spot in this unique, high-yield investment opportunity.

Visit realtyevest.com/pledge-fund to learn more about their Single Family Pledge Fund. And read their educational article to learn more about Pledge Funds.

Connect with RealtyeVest on social media @RealtyeVest, on Twitter, Facebook or Linkedin.

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