The Wealth Development Company has launched the Caliber Residential Advantage Fund which is designed to offer the capital appreciation and passive income-producing benefits of residential property ownership without the burden of daily management.
It is available to accredited investors directly or by recommendation from registered investment advisers (RIAs).
“I’ve wanted rental properties for diversification as well as income, tax and growth aspects for a while,” says David Cogan, Caliber investor and managing partner of Eliances. “I never took the first step because of the time involved in property management and ownership.
“Working with Caliber allows me to invest in the marketplace without having to manage while reaping the equity and tax advantages of ownership.”
The Caliber Residential Advantage Fund will acquire, renovate, rent and manage a diversified portfolio of single-family homes, town homes, condominiums, duplexes, triplexes and fourplexes in growth-oriented markets. Additionally, it will opportunistically pursue the more elegant strategies in residential investment such as bulk purchasing and short term, high yield flips.
Specific properties are directly owned by the fund with investors owning a proportionate share as limited partners. Investors potentially achieve consistent rental income, appreciation and tax advantages uncharacteristic of REITs. Investors wanting to exit daily management of their current rentals can also opt to deed over existing property titles to the fund in exchange for limited partnership ownership interests.
For a minimum USD35,000 investment, an accredited investor can choose to invest in the fund and own a proportionate share of a portfolio of hand-picked properties. Caliber draws upon its in-house capabilities to acquire, renovate, lease and manage the property, generating economies of scale and greater ROI.
The fund was designed with an 18-month minimum commitment and a long-term strategy, allowing investors similar terms to owning rentals on their own.
According to a new Realtor.com forecast, the top housing market in the US in 2017 will be metro Phoenix. The Valley’s steady growth in sales and price increases, tighter new home market, and short supply of foreclosures make it one of the healthiest in the country.
Caliber Realty Group director of acquisitions Lisa Pudewell says: “There’s tremendous desire by investors to diversify into new strategies that produce risk-adjusted returns beyond traditional investment portfolio options.
“The Caliber Residential Advantage Fund is a model for creating wealth like none other in the industry. With over 50 homes currently identified to jump-start the fund and a strong pipeline of property deals being evaluated to ensure distributed cash flow and appreciation goals, the perpetual fund is targeted to become a ‘must-buy’ with investors and will grow into attractive markets beyond Arizona over the next few years.”
