Did you know that you can grow your money in active real estate projects? Most people are familiar with investing in the stock market (stocks, mutual funds, ETFs, bonds, etc.), bank certificates of deposit (CDs), savings and money market accounts. ALL OF THESE ARE GREAT FORMS OF INVESTMENT. In general, having a well-diversified portfolio is the key to mitigate risk as ALL INVESTMENTS HAVE A RISK but at different degrees. Investors must have a good understanding of their tolerance to risk before considering any investment.
Another great way to invest is in ACTIVE REAL ESTATE project. We currently offer a great opportunity called the RPG PRIVATE FUND.
We have opened the opportunity of growing with us by being part of our real estate investment projects. This is a passive investing opportunity in which you become a private lender by helping us fund our projects. We offer a 10% annualized return on your investment as part of the deal. Your money yields daily interest for the duration of the project until the project sells at which time you have the option to withdraw your funds completely or re-invest on the next project. Initially, we require a minimum investment of $10,000. Once the project sells and you opt to reinvest, you can choose to add any amount, the minimum in this case is $1,000. Normally, we contribute with our own capital to cover approximately 20-25% of the total cost of the project. The other 55 – 65% is borrowed from commercial financial institutions. The remaining 10- 25% is either covered with our own funds or private investors like yourselves. Note that this remaining amount is borrowed as second-position lenders.
Individuals, corporate entities, or financial entities such as a self-directed IRA, solo 401k, that loans or invests money are considered private lenders. For example, if you have any liquid assets earning low interest in savings accounts, money market accounts, CDs, etc., these assets could be used in the RPG PRIVATE FUND. Similarly, if you have money from an old job’s 401k account that was never rolled over, we can show you the way you can roll it over to a self-directed 401k. Self-directed 401k accounts allow you to invest in a greater variety of investments as opposed to traditional corporate-sponsored 401k accounts. Traditional 401k accounts only allow the asset owner to invest in specific stocks, funds or bonds that are often traded in the stock market. Although investing in the stock market (if done appropriately) is another great way to put your money to work, the RPG PRIVATE FUND provides another great alternative to diversify your portfolio.
The RPG PRIVATE FUND offers the opportunity of investing in real estate projects. The money you invest is backed up by an actual hard asset. The interest rate you earn on your investment remains constant throughout the duration of the project. Because this is tied to a real estate asset, it is not influenced by the variations of the stock market or other types of investments.
The RPG PRIVATE FUND offers a simple annualized rate of 10%. This interest accrues daily until the property is sold.
Once the sale of the project you invested in sells and closes, you have two possible choices. You get your money plus interest back or you can choose to reinvest your money on the next project. In the case you choose to reinvest the entirety of your money plus earned interest, your investment capitalizes and grows at a faster rate!
Your money is made payable to and goes to a trust attorney. Once all the proper documents are signed and filed at the Register of Deeds, then the funds are released and put to work in actual projects that we work on.
The RPG PRIVATE FUND is different to other types of investments such as the stock market, savings accounts, etc. in that is backed up by a physical asset. The investment is similar to a mortgage. Your investment is dedicated to a specific property (we give you the option to choose which property address you prefer to invest on) with a promissory note and Deed of Trust.
The purchase of any land or property is done including a title search and title insurance. During construction, each project is insured with Builder’s Risk or Hazard insurance, Liability, and Worker’s Compensation insurance. The purchase of each project includes a due diligence period where all the necessary steps are taken to ensure that the investment is safe.
All investments inheritably carry a level of risk. Real estate investing is not the exception. There are several steps we take (during acquisition of the project, the construction stage, the insurance process, the sales process, etc.) in order to ensure a successful performance of the investment. For instance, we focus in areas where our research indicates strong recent sales, high market demand, steady appreciation, and relatively low risk. For the case of the RPG PRIVATE FUND, this is simply a loan between the private lender and our company. Your loan is backed up by a hard asset however.
Gains from your investment are subject to taxes and a 1099-INT form is sent to you in January. In the event that you are lending from your self-directed retirement fund, a Fair Market Value statement is provided in January as of the end of the previous year.
