SONDGEROTH DEBT FUND 1
Our Fix-and-Flip Fund is Now Available for Sophisticated and Accredited Investors!
What is a Debt Fund?
A real estate debt fund is a type of investment fund that primarily invests in debt instruments that are backed by real estate assets. These funds typically provide financing to real estate developers or investors who require funding for projects such as property acquisitions, developments, or renovations.
Real estate debt funds can come in various forms, including private funds, publicly-traded funds, and hybrid funds. Some real estate debt funds may specialize in certain types of real estate assets or financing structures, such as senior or mezzanine debt.
OUR PROCESS AND OFFERINGS
Think of our fund as a kind of bank. We are an opportunistic entity that uses its investors' capital to create multiple streams of revenue, all of which evolve to address the needs of the market over time. Currently, the fund is focused on lending money to vetted real estate rehabbers with short-term hard money for particular projects
In exchange for the privilege of accessing capital, borrowers pay us interest on their loan amounts- which is how our investors are paid. We then take our fees out of the remaining amount. According to Rocket Mortage, typical hard money interest rates currently hover between 8 and 15%. These interest payments (which we receive on top of principal debt paybacks) accrue across the borrower's loan period. Every quarter, we then issue investors' an 8% preferred return on their capital annually**.
SPECIFICS
We offer investors a 8-10% return, paid quarterly (and based on prime interest rates).
As a general rule, we will never lend more than 70% LTV on purchase, and fund 100% of rehab costs via draws.
We only fund deals in markets in which we’re already active: Illinois, Indiana, and Florida.
** Returns are based on investor class (A, B, C) as well as tied to the prime rate and subject to change.
OFFERING DETAILS
**Higher Returns Available for Those Interested in Investing More Starting at $250k. Returns are Also Based on Investor Class (A, B, C) as Well as Tied to the Prime Rate and Subject to Change.
PROTECT YOUR WEALTH
As important as it is to focus on growing your wealth long-term- which real estate investment vehicles such as apartment syndications are ideal for doing- protecting it in the short term is just as vital. This is especially true in today's uncertain economic climate. Conservative and consistent options like real estate debt funds are a great way to ensure that: a) your money is safely secured in hard assets and b) you get a consistent, cash-based return every quarter that will hedge against inflation and bank-related volatility. How could our debt fund help you achieve this?
Focus on Income Generation: Real estate debt funds typically invest in debt securities backed by income-generating commercial or residential properties. This focus on income generation can provide a stable source of cash flows for investors, even during times of economic uncertainty.
Collateralized Investments: Real estate debt funds are typically secured by the underlying property, which acts as collateral for the investment. This can help protect investors' capital in case of default by the borrower.
Diversification: Real estate debt funds invest in a diversified portfolio of properties and loans, which can help reduce the risk associated with any one property or borrower.
Active Management: Real estate debt fund managers actively manage the portfolio by conducting due diligence on borrowers and properties, monitoring market trends, and adjusting the portfolio as necessary. This can help mitigate risks and take advantage of opportunities during times of economic volatility.
