The Real-estate Growth Portfolio holds high growth potential real estate. This generates returns mostly from the sale of the underlying properties. This includes buying a property and performing renovations in order to sell the asset for a gain (Fix&Flip).
You earn returns primarily through property appreciation (60%) and dividends from cash flow producing real estate (40%).
Property appreciation funds are allocated to Fix&Flip or Fix&Rent deals categorized by a minimum of a 30% expected appreciation in value after renovations. When not invested in a Fix&Flip or Fix&Rent deal, property appreciation gains will be calculated across the current portfolio at 100% of current market value and allocated to the next Fix&Flip or Fix&Rent deal. Property appreciation gains are paid at the time of property exit (100%), refinance (100%) or at the end of the investment term at 90% of current market value.
Dividends are generated through property rental payments and are calculated in proportion to your share of the rental pool. The Dividend fluctuations are based on 2 factors, changes in the average rents due upgraded or new lease agreements and rental payment performance. Dividends are paid quarterly.
Example:
Total investment 15K:
9K Appreciation Dividend (Varies) - Varies
6K Rental Dividend (Quarterly) - Approx. $750
Total 3Y Cash return 16-25K
9K Appreciation Dividend (varies) - Worst 7,500 Best 18,000
6K Rental Dividend (Quarterly)- Approx. $9,000