High Yield Fund III
Value add opportunistic real estate investing
BENEFITS
Value Add
At the core of Fund III is investing in projects where physical improvements and proper management have a major impact on the value of its properties thereby increasing the value of your investment.
Cash Flow
As properties are improved and repositioned, you will enjoy steady passive income on the way to re-finance or sale of the asset and the big pay day.
Appreciation
As properties are improved and income rises during the reposition phase, the value of the asset increases with its ability to produce income. Your member units increase in value in sync with property appreciation.
Leverage
Allows investors cash on cash returns to increase dramatically. Leverage is used on all projects in the 65%-75% range.
Management
By far the easiest way to own real estate is investing in a professionally managed fund. All the benefits, none of the management headaches.
Taxes
Enjoy the tax benefit of depreciation from fund assets to offset income received. A benefit not available to non real estate related investments.
STRATEGY
VALUE ADD REPOSITION AND EXIT
The Firm’s cycle-tested investment strategy is designed to extract long-term value from underperforming properties over a 2 to 4-year period maximizing returns for investors.
Purchase
- Identify undervalued assets with high tenant demand and significant barriers to development
- Acquire underperforming properties at a discount to intrinsic value with fundamentally sound structures
- Minimize risk by avoiding development, redevelopment, or large-scale renovation projects
Enhance
- Unlock value and increase income through professional and prudent management
- Optimize rents at competitive market rates
- Execute cost-effective aesthetic improvements to revitalize the property
- Stabilize the property by streamlining operations and controlling costs
Refinance or Sell
- Evaluate multiple exit options carefully to ensure that returns are maximized
- Refinance property, returning most, if not all, of invested capital in a tax-efficient manner
- Hold property until sale can occur in the most favorable market environment
- Sell the property once value-enhancing potential has been realized, or a more lucrative opportunity is available
Case Studies
Condominium conversion
The Conversion of Apartments and Commercial assets to Condominium Ownership.