Our goal is to buy income producing properties and notes at 60% of realizable value. We re-position the properties with the objective to get rental occupancy rates on par with the average in the region, thus increasing our rental income. All stated returns are targeted returns. There is no guarantee of performance. The ability to pay the targeted return depends on the overall performance of the Fund and the assets therein.
Is my investment insured or guaranteed?
All investments carry some degree of risk and there is no guarantee that you’ll make money from your investment. It's important that you understand before you invest that you could lose some or all of your money. Your investment is not insured by the FDIC or any government or third party. You can read more about the Fund specifics in the PPM.
Are there any requirements to participate?
Strategic Diversified Real Estate Holdings, LLC is exempt from registration with the SEC under Regulation D 506(C) Requirements to participate are: $25,000 minimum investment. You need to be a qualified or “accredited investor” which is: a natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person or a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.
What is the Liquidity?
Investments that may be need to be withdrawn in a short period of time should not be invested with Strategic Holdings. That being said, after two years, investors in the membership interests may request 25% of their funds returned per calendar quarter. Redemption requests will be contingent upon available cash flow, and will be completed on a first come, first serve basis. Hypothetically, provided there is adequate cash available, you could have all your money returned from this fund in 18 months. In the unlikely event that an investor has an urgent cash need, we will do our best to accommodate the request in a timely manner. Investors should understand that there is no secondary market for the units, and liquidation is not guaranteed.
Are you able to purchase at deep discounts because you are buying the worst properties?
A Distressed Price Does Not Always Equal a Distressed Property. Properties may be distressed for a variety of reasons which includes, but are not limited to, mis-management and/or the current loan exceeding the current value of the property or other types of over-leveraging.
How is the Investment Structured?
It is a private equity fund structured under an LLC. Qualified or “accredited” investors buy shares in the LLC, backed by commercial real estate.
Are there any Management Fees?
Our fund has a 1 .5% assets under management fee. There is no load, no sales fee or surrender charges for Series 1-A through 1-C, but Series 1-D does have Broker Dealer fees and other expenses, please speak with Investor Relations or read the PPM for further details.
What are Commercial Notes?
A commercial note is a negotiable promissory note issued by a bank and payable to the bearer on demand. The amount payable is stated on the face of the note. Banknotes are considered legal tender, and, along with coins, make up the bearer forms of all modern money. We have institutional relationships with many banks, special servicers and lenders that allow us the opportunity to buy commercial notes and properties at deep discounts.
How is the management company being paid?
Strategic Diversified Real Estate Holdings, LLC Fund pays its creditors and Investors first. After all fund obligations are paid, anything left over is paid to the management of Strategic Holdings.
Can Investors participate in the upside gains?
For the tranches 1-A through 1-C, we pay up to the stated targeted preferred rate of return to our investors as identified within their respective investment tranche. For the 1-D tranche, 25% of the profit is allocated on a per share basis, after certain fees and expenses have been paid, please see PPM for details. We pay our investors first before management gets paid.
Is this Investment publicly traded?
No. Strategic Holdings Diversified Real Estate, LLC Fund is a privately traded fund that is exempt from registration with the Securities and Exchange Commission under Regulation D 506(c). This is an investment in a Private Real Estate Secured Fund.
How are the Investors taxed?
Investors that are equity shareholders/member will get a K-1. You should always discuss your specific tax situation and potential investments with your personal tax professional prior to investing.
Can I invest through my IRA?
Yes, there are a handful of Self Directed IRA custodians that have approved our fund to hold in their company. We can provide you with the list of custodians and help you with the process.