Opportunities:
1. Join our private debt fund,
HCF ASSET FUND I (Reg D, 506b):
We buy income streams. We purchase mortgage receivables secured by real estate direct from private lenders at a discount to face value. We also originate senior and junior liens on single-family houses. Interest rates we receive on performing notes are 10-15% on 1st position liens, and 15-20% on junior liens, paid monthly to us or our investors.
Minimum Investment: $150,000
2. Purchase our Turn-key Rentals:
We setup and structure the purchase of single-family properties on behalf of busy professionals (doctors, dentists, lawyers, CPAs, real estate brokers, engineers, etc.) who want the tremendous benefits of single-family and small multi-family real estate without the hassle of management or liability.
Our deals are made direct-to-seller where we often negotiate seller financing with 0% interest and long term notes with payoff discounts.
This allows for strong monthly cashflow on day 1. These deals are not available in the marketplace today with conventional purchasing.
By acting as their Trustee, our clients get anonymous ownership with the following benefits:
a) After-tax annual returns of 15-30%, paid monthly
b) Further paper losses to off-set any other real estate income
c) Stored-up passive losses to offset other income, when sold
d) No management, no fuss, no liability
e) Anonymity - off public record, but controlled as sole Beneficiary
f) All benefits of appreciation and a hedge against inflation
g) Opportunity to re-negotiate with seller’s Note in future and buy-out at discount
h) No bank debt, no payments due to anyone else
i) Realize cashflow within 30-60 days of closing
Our clients are issued their own K-1 at the end of the year, similar to a partnership or syndication. The tax savings with this strategy can by enormous.
For example, when done correctly, individuals can store up $50K-100K of passive losses per property which can be released upon Its sale and offset W-2 and ordinary income. For real estate professionals, it's even better. The losses can be used in the same year, offsetting other commissions and saving tens of thousands of dollars in taxes per year. Not only is it 100% legal, it's how the tax code was intended to be used when it was written.
Cash Needed: $100,000 per asset; if wanting to buy in bulk, we can package together 5-10 Single-Family houses for you and manage the holding company as your Trustee.
Our Space:
The single-family and small multi-unit space is simple. There is not much competition in our niche. Our deals are an alternative for those that like to invest in partnerships secured by property but prefer no banks, no expensive debt or personal mortgages, no development projects, no junior liens,, and no risks on fellow apartment competition, management headaches or other new builders.
Other Info:
We are a HARD ASSET FUND. We believe that every astute investor should have a hedge for inflation and rising living costs.
Dollars invested in our fund are held in escrow before an investor signs off on a specific deal. The investor is in control throughout the process. We deliver results before we make any profits.
**For more information, please contact Tom Harpole at 303-704-2961.
Our Principles:
1. Buy cash-flowing, occupied, median-priced single family real estate in good neighborhoods, below its replacement cost.
2. Purchase without new bank loans. Negotiate seller financing or taking over low-interest debt. Assume no liability in a deal beyond returning the asset. Only deal with sellers directly.
3. No speculating, no developing unless free and clear.
If assuming debt, assume debt at historically low interest rates.
4. Sign agreements but do not take on personal liability or recourse debt.
5. Follow the example of Blackstone. There is a reason they are fully invested in our space.
6. When possible, option property or lease/control long-term. Record deeds of trust ahead of subsequent liens to protect your interest. Take legal title only if necessary.
Our Targets:
18-30%
After-tax annual yield on LP cash invested
2-3 houses per month
purchased or controlled
$6 million
raised in IRA, 401(k), and Roth private funding
$50 million
in total asset value
3 elderly-care homes
bought and held by our 501(c)3, The Sojo Project, a new venture we are very excited to share soon.