Preferred Equity Fund
Luxe Living Homes' fund-level investment strategy is designed to offer investors a diversified and balanced approach to real estate investments, combining attractive fixed income with potential for significant upside.
Our Preferred Equity Fund offers an 18% annual return, seamlessly distributed through an attractive quarterly dividend of 4.5%.
In the intricate web of investment opportunities, our fund emerges as an astute income and impact-driven fund investment strategy tailored for institutions, accredited investors, and forward-thinking angel investors. The fund is a paragon of discerning real estate investment, melding robust returns with "impact" in an era where the latter isn't just commendable, but essential.
This, in itself, is an unparalleled income opportunity in the current investment ecosystem. However, what truly sets the Luxe Preferred Equity Fund apart is its inherent resilience during volatile economic climates, acting as a bulwark against inflationary surges and the unpredictable tremors of capital markets. While traditional stocks and bonds grapple with market vagaries, our fund offers a secure alternative, assuring both income and capital appreciation.
Central to our fund's ethos is our early foray into net-zero homes - a premium offering that resonates with the future trajectory of real estate. This isn't merely a venture into uncharted territory but a conscious decision to lead in an arena poised for exponential growth. And the numbers speak for themselves. Consider an illustrative insight: With an average home price projected at $300,000 and an assumed profit margin of 20%, a builder that manages to capture just 1% of the global market stands at a staggering market capitalization of approximately $232.8 billion according to housing data from the United Nations. This isn't a flight of fancy but a calculated forecast rooted in the present landscape and forward-looking ambitions.
$10 Million
Total capital raise for accredited investors, both retail and institutional
4.5%
Quarterly dividends with an annual preferred return of 18% annually
$50,000
Minimum investment amount to become an investor in the fund
2-Years
Minimum holding period to be able to exit and liquidate your position
Why Our Fund?
1) Diversified Real Estate Portfolio:
Our fund invests in a wide range of real estate projects, including residential, commercial, and mixed-use properties. This diversification spreads risk across different asset types and market segments. By investing in multiple projects, the fund mitigates the impact of any single project’s performance on the overall portfolio, providing a more stable and reliable investment vehicle.
2) Fixed Annual Returns with Quarterly Dividends:
Investors in the fund receive a fixed annual return on their capital, currently set at 18% per annum, which is distributed in the form of quarterly dividends. This structure offers investors a steady income stream, making it an attractive option for those seeking regular, predictable returns.
3) Participation Interest in Future Exits:
In addition to fixed returns, investors are entitled to a 20% participation interest in the investor pool in the event of a future exit, such as an IPO, buyout or merger of the company. This participation is based on an EBITDA multiple and/or Net Asset Value (NAV) at the time of the exit, offering the potential for significant additional returns on top of the fixed dividends.
4) Backed by Parent Company and Subsidiaries:
The fixed income and dividends are backed by Luxe Living Homes and its collection of subsidiaries, which includes all individual assets across the entire portfolio. This backing provides an additional layer of security for the fund’s investors, ensuring the reliability of the promised income streams.
5) Attractive Incentives and Upside Potential:
Our fund offers investors not just stable returns but also the opportunity to benefit from the future success of the portfolio’s assets. Investors can enjoy attractive incentives and rewards that are aligned with the fund’s performance, providing an opportunity to participate in the upside potential of the real estate market.
6) Long-Term Value Creation:
The fund is managed with a focus on long-term value creation, leveraging Luxe Living Homes’ expertise in identifying and developing high-potential real estate projects. This approach aims to enhance the overall value of the portfolio over time, offering investors the potential for capital appreciation in addition to fixed income.
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