Hedge Funds

Hedge Fund Company in Tampa, Florida, USA

12% Distressed Realty Fund, LP 3

Google Map 7303 N. Nebraska Ave., Suite Number 1
Tampa Florida 33604 USA
Phone: 410-889-1570

Investment Philosophy

Our Fund will focus on purchasing REO homes (foreclosed properties owned by banks or mortgage companies) spread over 10 markets located throughout Florida. The homes purchased will be purchased at a 50% to 70% discount to their current value and if they were rented would generate an annual cash on cash return of least 12%. The homes purchased will ultimately be targeted to be resold to first time home buyers. The value proposition for the buyer is the monthly cost of a home is less than they would pay to rent an apartment. Some of the homes will be renovated by the management team and sold directly to the first time buyer, while others will be sold to other real estate investors.

The General Partner has established relationships with a number of investment club mentors, whose business is renovation of houses, and are in need of inventory and hard money for property acquisitions. We provide a turn-key solution for them to take advantage of the current market conditions.

  1. We acquire REO homes directly from banks, at auctions and through proprietary lead sources at steep discounts (sub-wholesale prices).
  2. We provide quality inventory to real estate investors that have been reviewed and meet pre-established guidelines.  We sell these homes to investors adding a wholesale fee of $10,000 to $15,000 to our original purchase price.
  3. We provide the hard money to the investors enabling them to buy our inventory from us quickly, at a price that allows them to make their targeted profit.

In order to minimize the risk on hard money loans made, pre established underwriting guidelines will be used in determining the credit worthiness of the borrower in additional to the collateral securing the loan.  Where appropriate we will obtain cross-collateralization on other real estate for loans being made.  The investor will be required to have the cash on hand to perform repairs, which will be put in escrow and released as repairs are completed.  We utilize legal counsel with hard money loan experience to help ensure that the Funds assets are protected.  In the event of a change in the market condition and we deemed it appropriate to rent the houses, because the houses are purchased at a steep discount, sufficent rental income can be generated to meet the preferred rate of return to the investors.

Our strategy will enable our Fund investors to earn a preferred rate of 12%.

No profit is allocated to the fund managers until the fund investors have earned a preferred annual 12% return.


Source:  http://12percentfund.com/philosophy


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