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Need $125,000 Working Capital for a $2m Private Equity Fund
Posted by: Myron Manuirirangi on 3/5/2010 3:16:07 PM
Funding Needed:
$100k - $250k 		Category:
Real Estate / Construction 		Website :
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Location :
Las Vegas, USA 		Viewed : 279 times
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Description:
We started a private equity fund in October 2009 that invests exclusively in Property Tax Liens and Redeemable Tax Deeds. We opened the fund with $2 million, which was contributed by two members of our management team. We were NOT permitted to use any fund money to capitalize the company.

From Oct through Dec 2009 we purchased $350,000 worth in liens in Illinois and New Jersey. Jan and Feb were off-season months. Within 60-days, we received redemption notices for 20% of our portfolio (an APY well above 25%).

Our first year forecast is 13% gross APY across-the-board, which to investors in our fund translates to an estimated 12% net return after fees and profit share. 18% across-the-board by the end of year three.

Our cash flow for this year is forecasting a -$125,000 shortfall because revenue generated from year one acquisitions are staggered over a four year period. The end-of-term profit more than justifies carrying the only year of loss.

The Property Tax Lien Industry is about to realize significant benefits as a result of the declining economy, the fast approaching crash of the commercial RE market, the 4-million new foreclosures expected in 2010, and the $1.5 trillion in Alt-A and Option ARM loans resetting between Jul 2010 and Aug 2011.

Our offer is a total of 10 Preferred A member units. Price is $12,500 per unit, up to five units. Interest paid quarterly at 15% per annum. Principal repaid after 12 months.

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