Your Ultimate Guide for Understanding Real Estate Private Placements


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Earn Income Passively

You’ve worked hard to get to where you are today. It’s time to begin thinking about investing and expanding your wealth. Passive investing sounds great, but where do you begin? Download this ultimate guide to help you find success.

In this exclusive resource, you will learn:

  • What are Real Estate Private Placements
  • The types of properties Private Placements invest in
  • Important terminology
  • Questions you should ask a General Partner

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Disclaimer:Ashcroft Capital LLC is not an investment adviser or a broker-dealer and is not registered with the U.S. Securities and Exchange Commission. The information in the presentation should not be used as the sole basis of any investment decisions, nor is it intended to be used as advice with respect to the advisability of investing in, purchasing or selling securities, nor should it be construed as advice designed to meet the investment needs of any particular person or entity or any specific investment situation. Nothing in this presentation constitutes legal, accounting or tax advice or individually tailored investment advice. The recipient of this presentation assumes responsibility for conducting its own due diligence and assumes full responsibility of any investment decisions. 

No investor shall be permitted to invest unless he, she or it meets the standards of an accredited investor as outlined at 17 CFR § 230.501. The Partnership expressly reserves the right to reject any investor it believes is not qualified under the appropriate exemption from registration found at rule 506(c) of Regulation D or other exemption or for any other reason. Investments may be made by accredited investors only in accordance with and following satisfactory completion of the subscription procedures on this website following an investor’s review of the investment’s private placement memorandum.

Ashcroft Capital
Value-Add Fund II

In an effort to continue our focus on capital preservation and further mitigate risk while still having upside potential, we created this fund. We have provided the information in this FAQ Guide to help you learn more about it and once you’re ready to invest, please click the button below to get started.

6-10 Properties

DIVERSE REGIONAL MARKETS

5-7 Years

ANTICIPATED LIFE OF FUND

$25,000

MINIMUM INVESTMENT

Investment Criteria

thumbnail_image002 Communities located in the growth markets of the Sun Belt including Dallas-Fort Worth, Atlanta, Orlando, Tampa, Jacksonville, Raleigh/Durham, Charlotte, and Phoenix
thumbnail_image002 Class A/B properties with excellent opportunity for value creation through improvements

 

thumbnail_image002 Under performing or distressed multifamily properties
thumbnail_image002 200+ Unit assets in highly desirable submarkets
thumbnail_image002 $20 million to $150 million total capitalization per property

 

Targeted Fund Returns*

Cash-on-Cash Returns
(Avg including sale)

13% to 20%

Cash on Cash Returns
(Avg excluding sale)

6.8% to 8.5%

Levered IRR (Net)

13% to 18%

Equity Multiple (Net)

1.5x to 2.0x

Annual Cash-on-Cash Projections**

Year 1:

5.0%

Year 2:

7.0%

Year 3:

7.4%

Year 4:

8.0%

Year 5:

9.0%

 

*Based on 5 year hold for Class B Limited Partner Investment. Target returns represent ranges for base case, downside, and upside scenarios.

**Projected cash on cash returns are based on base case assumptions for the properties within the Fund

Note: Projected returns are based on LP levels of Fund

Return Structure

Investors have the opportunity to invest in Class A and/or Class B Limited Partnership Interests.

Limited Partner (A) - Class A

Class A Limited Partner’s earn a coupon of 9% per annum of such Limited Partner’s investment in Partnership (the “Class A Coupon”). Class A Limited Partners have limited distributions upon disposition of the Property. This tier offers stronger projected cash flow and reduced risk as compared to Class B Limited Partners.

Limited Partner (B) - Class B

Class B Limited Partners earn a coupon of 7% per annum of such Limited Partner’s investment in Partnership (the “Class B Coupon”). Upon the disposition of the Property, after payment of debt, return of Class A and Class B Limited Partner investments, payment of any unpaid Class A and Class B Coupon Amounts, and then, prorata, seventy percent (70%) to the Class B Limited Partners and thirty percent (30%) to the General Partner until such time as the Class B Limited Partners have received a cumulative amount equal to thirteen percent (13%) IRR. Then, Class B Limited Partners will receive 50% of the remaining proceeds from disposition. This tier has a lower coupon but provides greater participation upon disposition or capital event compared to Class A Limited Partners.

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Understanding the
Benefits of Investing in a Fund

  • Spreads out investor equity over multiple acquisitions
  • Greater exposure to investments in various markets and asset classes
  • Ability to invest in different individual property business plans and hold periods
  • Provides the opportunity to participate in upside on property price appreciation upon sale, refinances, and supplemental loans
  • Diversification offers the ability to reduce risks while offering the potential for higher returns
  • Potential tax benefits for investors such as pass-through depreciation opportunities and 1031 exchanges

 

Ready to Get Started?

Schedule a 1-on-1 call with a member of our investor relations team to learn more.

 

Disclaimer: This investment will be filled on a first-come, first--fund basis and is open to accredited investors only. All investment information will be made available in the investor portal.

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