The Fund was created in early 2014 to offer private investor the opportunity to capitalize on the attractive yields available in private lending and small balance real estate market.
The Fund is committed to providing investors with a high level of monthly income, preserving capital, capital appreciation and enhancing the diversification of an investor’s portfolio while benefitting from an institutional quality lending and management platform with the integrity, experience and education of the management team charged with the oversight of their investment on par with money managers and investment advisors
The strategy of the Fund is to produce attractive risk adjusted returns investing in real estate loans secured in first lien position and the acquisition of real property for investment purpose in the single family residential, multifamily and small commercial real estate market based primarily in California and occasionally in neighboring states in situations and locations where the Manager feels confident and comfortable in its capacity to underwrite effectively.
The Fund’s objective is to produce an overall return to Members in the range of 8.0% to 9.5% annually. Subject to performance of the Fund and after paying Fund Expenses as well as the Management Fee to the Manager, Members will receive a preferred return of 7% and then participate 50/50 in any yields above the preferred return.
By investing in Platinum Real Estate Fund l, LLC and pooling your capital with other investor capital allows you to enjoy three distinct advantages:
- Diversification – Rather than investing all of your capital into a single real estate asset, you are able to reduce your risk by owning a percentage of:
- Multiple properties
- Multiple Property Classes – Single Family, Multi Family, Commercial
- Multiple investment types
- Debt (Trust Deeds, acting as the Bank)
- Equity (buy and Hold for cash flow with appreciation as an inflation hedge)
- Experience and Time – By investing in Platinum Real Estate Fund l, LLC you tap into the over 100 years of real estate experience of the Fund manager who spends time marketing for, researching, evaluating, underwriting and managing the Funds assets to maximize your yield. You operate hands free, you have a passive role and can spend your time on the things you enjoy.
- Lower Barrier to Entry – Most real estate investments require significant capital to enter the market. With our Fund, the minimum investment can be much smaller and you can enjoy the benefits of the Funds being a high volume cash buyer when making offers or reviewing loan requests. Our Fund is an excellent option to invest retirement monies as well.
The Fund was created with three primary principals
- Capital Preservation – The Fund takes a conservative underwriting approach in determining the amount of money it will lend against the securing real estate. It is this protective equity that will help shield the Fund from any capital loss should a loan become non-performing and the Fund is forced to foreclose and take over ownership and management of the property.
- Transparency and Governance – The Fund architecture was designed to offer the investor security that the Fund has proper oversight and checks and balances. The Fund is managed by an experienced Advisory Board (not a single manager) to oversee the Fund investments and operations. Fund formation documents require audited financial to ensure compliance and third party verification of investment activity. The Fund has also retained Fairway America to perform servicing and investor reporting functions to add an additional level of review and oversight.
- Yield – Capital Preservation – Again, capital preservation is a key principal of the Fund. We believe there is ample opportunity to lend money and acquire real estate at attractive prices to provide the Fund’s investors with the targeted returns without exposure to unnecessary risks in either the underwriting process or evaluation process. All assets will provide cash flow or be very near cash flow as they go through a repositioning/rehab process.
If you would additional information regarding Platinum Real Estate Fund l, LLC then please request a copy of the executive summary for detailed information or contact me to set up an appointment to review your investment objectives.