DUAL CITY CAPITAL GROUP
PRIVATE REAL ESTATE INVESTMENT FUND
OPEN AUGUST 2017
Preservation of investor capital
Maximize return on invested capital (targeted 8% monthly disbursements with quarterly performance payouts)
Target total investor return of 150% at disposition of fund
Capitalize on existing relationships and capabilities to source and acquire commercial real estate opportunities that meet acquisition criteria
Utilize our order of operations platform to execute our investment strategy
Targeted 5 year hold
$5000 per unit, minimum purchase of 10 units ($50,000 min investment)
$5,000,000 total raise Blind Pool Fund, open for 12 months (August 1, 2017 to July 31, 2018)
SPECULATION IS NOT INVESTING: Speculation involves emotion while investing requires discipline, analysis, and research. Speculation leads to mediocre performance at best, and disaster when market conditions change.
Markets are cyclical. We expect downturns and plan for cycles. We like cycles because they create opportunity for those who are prepared. We find great investments in up and down markets.
Knowledge mitigates risk. We are analytical and research the market. Knowing where the market is heading determines our investment parameters and designates us as market experts in the areas we operate.
Provide investors with streamlined access to previously unavailable investment opportunities
Leverage collective experience to employ a collaborative, multidisciplinary approach
Provide a robust investor reporting interface ensuring timely and transparent communications
Deliver sophisticated management and high-level accountability
We observe our competition and improve on their pitfalls, we do not promise returns based off of “pro-forma” or best case scenario property performance. Our returns are based off of historical data, which makes over delivering on our targeted return figures a normal occurrence for our investors.
Fund Acquisition Criteria
Our overall strategy is to acquire moderate to high cash flowing assets or transform and sell real estate assets that have significant value creation potential over a 3 to 5 year individual project life-cycle. We employ moderate amounts of leverage to increase yields to investors while mitigating the downside risks inherent in any real estate investment. Typical projects will include office, multi-family, self storage, and mixed-use, including portions of retail, which are underperforming the market. Through disciplined underwriting and superior execution of each project’s operational plan we realize above market growth in net operating income.
Our projects are evaluated and capital is stacked in such a way as to provide a balance between expected return and staying power in the event economic conditions deteriorate. Leverage is used prudently to enhance returns to equity, while keeping loan to value and debt service ratios at moderate levels. An important component of our risk management strategy is diversification – by property type and geography. It also involves sourcing projects in “non-traditional” market segments, avoiding the wild swings associated with “faddish” markets.
Cautious Opportunistic Approach
Investing in markets and assets that we feel are resistant to downturns in the real estate market.
South Carolina, North Carolina, Georgia, Tennessee, Ohio
In-house management, facilitates efficiencies that maximize value creation over the asset hold period. Intensive management to strive to maximize value creation through local market knowledge in select markets and assets.
Cash Flowing Assets
We expect returns on stabilized assets to return a minimum of 9% cash on cash return to investors with an IRR of at least 15%.
Value Add Assets
Single properties and portfolios requiring restructuring, repositioning and/or redevelopment opportunities.