Risk Adjusted Returns
Very Low Investment to Value Ratio
For nearly two decades in the making, we like small deals.
Rather than having millions of dollars invested in a single asset, we own thousands
of assets with a small investment in each one. We focus on three asset types:
|Vacant Land||Rental Homes||Tax Lien Certificates|
|WHY?||Produces very attractive cash flow and allows diversification into thousands of unique assets.||Produces steady, reliable rental income, while reducing neighborhood blight and providing quality housing.||Tax liens provide unparalleled diversification, extremely low investment to value ratios, and provide a steady source of interest income and real estate assets to the Fund.|
|WHERE?||Our team has purchased and sold land in 35 states||Very select markets where the rental market is strong and the cost to acquire is very low||Tax liens are sold in 29 states|
|WHEN?||Over the past 18 years, our online land sales have proven to be relatively immune to market fluctuations and the “housing bubble".||Regardless of an up or down real estate market, people need a quality place to live. We take advantage of opportunities to buy these homes when the cost to acquire and the rental income meets our model.||We buy tax liens when they are near their maturity and can begin the foreclosure process.|
|HOW?||We acquire the vacant land parcels using a variety of methods, and then sell them using seller financing.||We acquire rental homes through tax lien foreclosure, county tax sales, and on the open market, and we hold them as long-term rentals.||Frequently, we acquire these assets from tax lien investment funds who need to sell due to the structure of their financing.|
How we are different
The underlying strategy, and structure of our assets is very different from most other real estate equity funds.
We do not invest millions of dollars into a handful of assets. We invest in small real estate assets, often only having a few hundred dollars invested in a tax lien, a few thousand dollars invested in a parcel of vacant land, and our investment in rental homes is in the tens-of-thousands, instead of hundreds of thousands (or millions).
We do not invest in real estate, hoping the market will appreciate, or betting the values will rise, thereby making a mediocre investment look better. We invest based on it’s cash flow. Appreciation is a distant second priority for us.
We’re not in the business of loaning money. We are in the business of owning real estate assets.
We don’t use lines of credit, large amounts of leverage, or long term financing. Often, equity funds owe millions of dollars to lenders, and the bank’s interest is superior to the equity members in the fund.
We focus on cash flow. Positive cash flow is the primary motivator for us to purchase a property. We are the nation’s leading experts in producing cash flow from small, vacant land properties.