Fund objectives
Raxford fund’s objective is to achieve better performance than most stock-based investments while significantly mitigating the risk caused by the capital market’s volatility via capitalizing on premium residential real estate investments.
Because everyone needs a home in which to live and raise their family.
We aim to acquire strategically selected homes that can generate a consistent annual rental income of 3% to 5%. The rental income should increase annually in line with the market rental rate escalation, while the properties themselves should progressively appreciate in value consistent with the real estate appreciation of similar premium properties. The combined result is a steady, robust annual total return on investment “ROI”
Based on data from REcolorado, Colorado listing service, homes in the entire Denver Metro area have appreciated at an annual rate of 7.8% over the last 15 years. Using our unique algorithm to choose our properties, our model more than doubles this rate.
While consistently achieving such strong returns is indeed very significant, our real estate portfolio provides a resilient level of safety as well. Unlike the volatile capital market that is triggered by the 24-hour news hype cycle, our fund assets are 100% collateralized by premium real estate physical properties in some of the most desired metropolitan areas in the USA, delivering higher levels of safety to complement the superior performance.
It’s a win-win formula. While our investors reap great benefits, the end-users, “Tenants,” also do. Our unique luxury homes are selected to cater to the special needs of upper-middle-class families. They are typically two to four bedrooms relatively new single-family homes, with two-car garages, backyards, and basements in desirable communities. Adding to that, our lease-to-buy option makes them indeed a hard-to-find homes to lease opportunity, designed as a stepping stone to buying one’s own home. The investors further benefit from leasing their properties to renters in the upper 25% of the home renters market, with stable higher income and credit scores.
The Risk and reward :
Indeed, real estate values, including those of premium properties, may temporarily decrease or remain flat. However, they are not triggered overnight by news hype, and they typically recover rapidly due to the continuous demand for housing. Homes will always be in demand, regardless of how the market swings.
Nothing in this article should be interpreted as an offer to acquire or sell interest in the fund or any other investment or construed as investment advice.