FAQ
Our methodology consists from analyzing indicators that predict strong GDP growth in a city level (such as job and population growth, public and private investments among others) to, within those cities, searching the neighborhoods with the largest price/sqft spread between old and new homes and low days on market of new properties. From there our team created a proprietary methodology to analyze thousands of properties each day and choose to visit the ones of most potential upside for our investors. Of course that we also leverage our local network of experts and our local team to check in loco for: flooding zones, energy lines, quality of neighbors, among other factors that may affect pricing and liquidity.
New properties in our target neighborhoods are very resilient to different economic scenarios. We back tested price/sqft and days on market for new homes in these locations and observed that in rising interest rates environments liquidity and prices varies very little given the consistent demand for new properties in these neighborhoods and limited supply of this asset type.
Our team analyses which types and plans of homes reach the full potential of price/sqft, total area, construction times and costs and liquidity. Additionally we partner with local home builders with extensive project development and construction track record in the neighborhoods we invest in. We conduct a thorough due diligence to choose builders with local expertise, track record of projects delivered on time, on quality and on cost, financial health and proven processes and management control. Furthermore we are connected via API with our partners CRM to manage in real time the main metrics of our projects. Finally we have a local team on the ground to manage the relationship with our partners, also frequently inspecting our construction sites.
This fund is destined to accredited investors. Our fund is placed in BVI (British Virgin Islands) and investors can
We have a 1.75% of set-up fee to cover our daily effort to find the best deals, a 1,75% administration fee to manage our portfolio of investments and make sure we deliver the projected IRRs and finally a 20% performance on results that surpasses our hurdle of 8% to our investors
Our fund is designed to take 30 months from its inception to the sell of the last property.
The main risks are pricing and liquidity variation as well as construction time and cost and knowing that we created investment and management processes and policies to make sure these risks are under control. If you want to know more we can also share our funds memorandum.