Investor Relations

“The best investment on Earth is earth.” -Louis Glickman

What The ValCap Group can do for you…

We wholeheartedly feel that for our company to be successful our investors need to be successful as well. Therefore we align our goals as much as possible. Many private equity funds take exorbitant acquisition and disposition fees, asset management fees, syndication and legal fees all before the investors get a dollar returned. These funds make money on deal flow wether the deals are good or bad. We have adopted a model for splitting profits that put us all on the same team, first the investors receive a high fixed return on their investment, this is typically in the upper single digit range, then the remaining profits from operations, or a capital event (such as a refinance or sale) would be split between the investors and the sponsor.

The typical investment structure in our company is a membership interest in a single asset LLC. Our company will act as the projects Sponsor and Managing Member, we will also invest our own money into the project. When an appropriate property is identified we will assemble a Private Placement Memorandum which will contain a plan for the property as well as financial projections. We will circulate this within our group of interested investors. Qualified investors will be approved for each project, then it will be funded and purchased.  From there job number one is to execute the plan, culminating in selling or permanently financing the project.

Through the identification of undervalued real estate and the judicious use of leverage our company typically undertakes investments that net our investors an internal rate of return of between 12%-18%, with a typical hold period of 1-3 years. Of course each deal is unique and often we out perform our conservative projections.

We welcome you to contact us here if you have interest in investing in future ValCap Group projects, or are a property owner interested in selling your property.

Investment Underwriting Criteria

The ValCap Group reviews hundreds of properties each month. Only a very few make it through our strict underwriting process. This process begins with leads coming in from our network of brokers, property owners, and several listing services. From there the due diligence phase begins with an evaluation of the area demographics as well as the properties financials. Most potential deals are filtered out at this stage but if all looks good a site visit is scheduled. We have capable employees located in different states that can perform the site evaluation. At that point an offer is typically made and the deal struck.