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UNDERSTANDING PROS AND CONS

Raxford Fund is a private equity fund operating under SEC   Section 506 Regulation D of the Securities Act. In general, and not specific to any individual circumstances, here are some pros and cons of the Raxford fund, and perhaps any real estate private equity investment:

Pros:

  • High Returns: The fund aims to acquire strategically selected single-family homes to generate a consistent annual rental income of 3% to 5%. Together with the lucrative appreciation of those well-selected real properties would likely provide a considerable ROI
  • Lower Risk: The carefully selected premium single-family homes, located in highly desirable metropolitan areas across the USA provide strong collateral for the invested funds, and are mostly unaffected by capital market volatility
  • Stability: The stable rental income, which continues to increase year after year, plus the appreciation of the property value, which also continues to increase, offers a consistent appreciated value of the investment. In contrast with the volatile capital investment and the non-performing bank deposit, residential real estate investment offers both consistent and safe investment alternative.

Cons:

  • Real estate investments and units in real estate funds are not as easily liquidated as bank deposits and tradable capital securities.
  • Real estate fund investments could have even less liquidity than individually owned real property, because the fund manager may not be willing to fast-sell a property to accommodate the cash distribution need of one investor, which could be detrimental to the fund’s best interest and the best advantage of other investors.
  • Selecting and managing the properties is decided by the fund manager, not directly by the investor who may disagree with the manager’s selection and management style.

 DISCLAIMER

This article should not be interpreted as an offer to purchase or sell any interest in RAXFOR fund OR ANY OTHER INVESTMENT.

While we strive to assist our investors, the fund manager and staff do not offer personal investment advice to any of the fund’s investors or potential investors. This is to avoid any potential conflict of interest with managing the interests of all other investors at large. Therefore, investors shall determine for themselves or with the help of their advisors if the Raxford Fund is suitable for their investment needs.

In compliance with Regulation-D, all investors must be accredited investors as defined under Section §230-501