It is rare in a fund structure to find a high level professional operator who owns a large local property management who is directly involved in the fund at the management level. In addition, we have the ability to perform much of the needed construction and repairs utilizing our in-house construction arm. This gives us a huge strategic advantage in all phases of the property cycle from sourcing, acquisitions, construction and management. Another of our Managing Partners brings extensive fund management experience in this same space, creating a powerful synergy between local real estate expertise and professional fund management to maximize performance and investor returns.

The partnership aims for annualized returns of 10% to 16%. These target returns are pursued through a diversified strategy. Please note that all projections are forward-looking, and actual results may vary.

• Value-Add Strategy: The General Partner will acquire undervalued properties in strategic locations, enhance them through renovations, and manages them for high cash-on-cash returns, increasing both equity and cash flow.

• Leveraging Financing: The partnership will utilize conservative leverage as the portfolio stabilizes. This strategy helps improve cash-on-cash returns for investors while maintaining cash flow stability.

• Alternative High-Yield Investments: The partnership will also originate high-interest, collateralized real estate loans.

• Exit Strategy: Once fully stabilized, the fund will pursue multiple opportunities for exit such as; sale to institutional buyers, or refinancing to unlock value.

The General Partner will employ a proprietary algorithm to underwrite each property at acquisition and periodically evaluate the portfolio as a whole. Stress tests will be conducted under various scenarios to ensure stable cash flow management, strategic financing, and optimized reinvestment opportunities throughout the portfolio’s lifecycle. Investors will receive detailed financial reports in a timely manner.

The General Partner is legally obligated to act in the best interests of the partnership and to avoid any misconduct. Compensation for the General Partner is tied to exit equity, ensuring their incentives are aligned with investor success.

The partnership structure allows Limited Partners to benefit from the fund’s performance without being exposed to the responsibilities and liabilities of fund management, which is handled by the General Partner. However, there are risks that may affect the fund’s performance:

• Management Control: Solely held by the General Partner.

• Leverage Risks: Debt can amplify returns and losses.

• Market Conditions: Real estate value is subject to cycles and trends.

• Illiquidity: Hard to liquidate, requiring patience for capital access.

The above is not an exhaustive list. Only capital that can afford to be illiquid for an extended period should be invested.

Unlike many funds that deduct up to 7% of the initial investment in organizational and operational fees, our onboarding fees are limited to actual costs, ensuring that more of your capital works for you from day one. Below are our representative fees.

• Onboarding Fees: Around 2% or less.

• Annual Asset Management Fee: 1.5% of the after repair value (ARV).

• One-Time Acquisition Fee: 1.5% of the purchase price.

• One-Time Disposition Fee: 3% of the gross sales price.

• Class A: For investors looking for maximum growth.

• Class B: For those preferring a steady income stream.

• Note Holder: There will be opportunities to become Note Holders with a shorter investment duration, offered from time to time at the General Partner's discretion.

The partnership follows the below waterfall structure for payments:

• Note Holders: As creditors, Note Holders will be paid in full first, before any distributions to Class A or B Limited Partners will be made.

• Class A Limited Partners: Will receive their 8% Preferred Return, compounded annually, and have priority over Class B investors for principal and interest repayment during liquidation or capital events.

• Class B Limited Partners: Will receive their 8% Preferred Return, with 4% distributed quarterly and the remaining 4% will be compounded and paid at the end of the investment period. Principal repayment occurs after all obligations to Class A investors are met.

• Exit Equity Sharing: Any remaining profits, after fulfilling the above obligations, will be shared equally between the Limited Partners (Class A and Class B) and the General Partner.

The minimum initial investment is $50,000, representing one Unit. The General Partner may accept smaller investments at its discretion, and fractional units may be issued to accommodate irregular amounts.

Yes, the fund operates as an evergreen fund, allowing new investments on a rolling basis. Typically, investments are accepted at the start of each quarter to align with the fund’s reporting schedule. Note that late-stage investors may not experience as much compounding as early entrants, and the yearly performance may vary.

Like most other private equity funds, investors must typically use after-tax dollars, unless investing through a self-directed IRA or a self-directed solo 401(k). The fund employs optimal tax strategies, such as depreciation and cost segregation, to enhance tax efficiency during the life of the fund. However, dividends and distributions will be taxed according to each investor's individual tax status.

Investments are available for withdrawals after 2 years subject to procedures. While early withdrawals are unusual, exceptions will be considered under extraordinary circumstances. Investors expecting life events may consider the Note Holder option.

Quarterly reports on financial performance, property updates, and investment goals are provided via an online platform, with annual financial statements further ensuring transparency.

Transfers are generally restricted and require the General Partner's approval. Exceptions may be made for family members or related trusts.