Investment Opportunity - Waterfall

The waterfall investment strategy accomplishes two objectives listed below:

  • Produce a higher rate of return for investors as the success of the facility grows
  • Built-in incentive for the owners / managers to achieve even better results

First Hurdle – First claim on profits. Preferred Units receive 8% IRR, 0% to Owners / Managers

Second Hurdle – 80% to Preferred Units receive a return of up to 12% IRR, 20% to Founders / Managers

Third Hurdle – 50% to Preferred Units receive a return of up to 15% IRR total, 50% to Founders / Managers

This Investment is in an Opportunity Zone

Opportunity Zones are an economic development tool that allows people to invest in distressed areas. Their purpose is to spur economic growth and job creation in low-income communities while providing tax benefits to investors. Opportunity Zones are tax incentives to encourage those with capital gains to invest in low-income and undercapitalized communities.

The program provides two tax benefits for those who invest unrealized capital gains in Opportunity Zones: 1. Temporary deferral of taxes on previously earned capital gains. 2. Permanent exclusion of taxable income on new gains for investments held for at least ten years.

Real Estate Market Volatility: Opportunity Zone Funds are tied to investments in the real estate market and are subject to the same market fluctuations as any other real estate investment.

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