How much of AiRE Generations Fund 1 will I own?
The investment made by each individual will be treated as percentage ownership in the fund. For example, if an investor were to commit $1,000,000 they would own 5% of the fund. Once the fund closes, these percentages become locked in place. As the asset base of the fund grows, the percentage ownership floats up with the investments.
Could I get my money out if I needed to?
The answer is a qualified yes. The money is of course yours as the investor, but it will be committed in real estate so accessing the principle investment will not be as straight forward as bank withdrawal. The fund will access a penalty for early withdrawals. Effectively the other investors will be responsible for purchasing the departing members equity and will receive a discount for the capital call requirement. Notification will be required up to 180 days before the capital could be extracted.
Who determines the assets that we will invest in?
Joel Andersen will serve as the lead on deal sourcing. All deals will be reviewed by AiRE managing directors and vetted by the board of advisors prior deployment of funds.
Where will the assets be located?
AiRE is initially targeting the Pacific Northwest. But, we are opportunists, and with relationships nation-wide the opportunities will be coast to coast.
Will I have to personally guarantee any debt?
No. AiRE will primarily serve as an equity partner in real estate deals. In the event that AiRE is also actively developing the asset, we will outsource the debt guarantee for a fee to protect our investors from downstream liabilities.
What can I expect for a return on my investment?
Real estate, like all investment, is inherently risky. But over time it can be the most stable. AiRE can not guarantee a specific rate of return, but our underwriting will target an 8% return on equity upon project stabilization. Depending on the deal structure, the initial investment can be made up to 4 years prior to a return being realized. Because of that, we use the first year of stabilization of the asset, (meaning when the asset is fully leased up) as the bench mark for measuring the return. The market has also grown via inflation at a clip between 2-3% per year, so for our underwriting model we can use a 2.5% growth per year for a conservative view on the cash flow return model.
How will AiRE be structured?
AiRE Generations Fund 1 will be formed as an LLC for the protection and flexibility of its members. It will be a multi-layered LLC that will roll up all the individual projects as their own LLC for protection purposes. Each member will also provide AiRE Generations Fund 1 with their own family LLC to ensure the assets can easily be transferred generationally.
Where will my money go once I send it over?
All investors money will be directly wired to a third-party money manager account. The cash deposits will be invested in very low-risk market investments while they await deployment to real estate transaction. The quarterly statements will include investment activity on the real estate front as well as the money market account.
I want in, what are the next steps?
Shoot us an email and we will set up a time to meet with you to discuss this unique generational investment opportunity.