Pool C Rehab Fund
226 Montoya Street Et Al Taos County, NM 87571
Kitchen Island Back-Lit Granite
Pool C Rehab Fund takes advantage of the strength of multiple rehab flip properties in a single portfolio. Pool C will invest in up to quick-flip rehab properties: a 2,000sf house rehab in Albuquerque; a 3,000sf house on 1-ac with additional land parcels totaling 4 acres in Arroyo Seco, a small ski town just north of Taos; a 2,000sf duplex rehab also in Arroyo Seco; and a 3,500sf triplex also in Arroyo Seco. These properties are all value-added distressed properties. Our target buyers for each property are the plentiful local investors looking for rentals or winter/summer Airbnb properties.
We - Poston Investment Collective LLC, the umbrella company that manages all projects - specialize in finding distressed properties we can upgrade or rehab. This specialization insulates our projects against economic fluctuations, such as recessions or stock market crashes, and our project Framework locks in future appreciation upon resale by ensuring that we acquire, manage, and disposition all projects the same way every time, regardless of size, complexity, or asset class. Having a distressed property pool fund gives us the capability to move quickly when we find such a distressed property. See the video link below: What is the Poston Collective Framework?
The vision for forming the Collective five years ago was to be ready to acquire distressed and bargain properties in the next recession, the one that’s apparently here now! Our Collective mission is simple: (1) provide a satisfactory ROI for our investors and (2) fund the nonprofit Fifthwall Sanctuary Holistic Wellness and Healing Center. With these projects, we think we can safely provide 20% ROI per year (two-year max) for participating investors.
Under the tab “Property Summary” you’ll see a top-level description of our current and prospective projects requiring funding from the Pool C Rehab Fund. We follow the same Framework procedure on all projects. We will acquire up to four rehab assets in a separate LLC holding company with a single bank account for asset protection. The assets will be sold as soon as practical after each rehab is complete, and investors will be paid 20% ROI first at the end of the year or after the last asset is sold, whichever occurs first. After the investors are paid their ROI, 10% of net profit goes to our Charity Foundation, then the umbrella company gets paid last. The umbrella company’s share is split evenly between the Operations budget and management team as their only compensation.
[This Fund is for accredited and non-accredited (experienced) investors]
The sponsor is paying a 20% ROI per year for the duration of the holding period (two years max). Investors will be paid first, that is, at the end of each year or after the last asset is sold, whichever occurs first and before the company gets its share and before charity gets its 10%. Investors receive 20% ROI per year plus 20% of net profit.
The sponsor has three powerful benefits to secure profit for investors: (1) The Project Framework (see the video) that is used to acquire, manage, and disposition all rehab projects, safeguarding investor capital in the process; (2) almost 30 years of experience with over $30M in projects; (3) and a fully transparent track record on the website.
Since the Framework requires that all projects have their own holding companies (LLCs), Pool C Rehab Fund will be the lead investor or the only investor on every project. Recall, the two main goals of the Poston Investment Collective are (1) provide a satisfactory ROI for investors, and (2) fund the nonprofit Fifthwall Sanctuary Holistic Wellness and Healing Center.
Poston Investment Collective LLC
Jeffrey Poston has been called the "Big-Picture Guy". He heads the successful real estate syndication firm, Poston Investment Collective LLC, a lean company that is quick to pivot toward new development opportunities. He has also built the Collective Framework that enables him to start and fund new companies extremely efficiently and quickly. The Framework is the tool Jeffrey uses to acquire, manage, and disposition all Collective projects. In short, every project gets its own LLC (holding company) and its own bank account. These aid in asset isolation and liability protection, thus safeguarding investors’ capital.
Jeffrey is an international #1 bestselling novelist and the founder of an innovative medical cannabis capital fund. He has a diverse background of 40 years in engineering, program management, entrepreneurship, partnership syndication, and real estate investment and development. He is also a former Air Force officer.
Since 1992, Jeffrey has bought and sold many distressed properties, created limited partnerships and holding companies, and redeveloped multiple commercial properties. His ability to deliver is based on stellar project management, especially when things don't go as planned. The key to success is never really about the project but rather the project management team.
In nearly 30 years of experience and $30M in projects, Jeffrey has built a team of licensed General Contractor/Builders with professional Project Managers to track budgets down to the penny and keep projects on schedule. It is this unique combination of skills and talents that sets Jeffrey apart from anyone else in the field.
Pool C Rehab Fund
A Portfolio of Rehab Flips Before The Next Recession
We don’t know if or when the recession will arrive. [Update 5/1/2020: It is apparently here now!] However, the one thing we DO know is that we don’t want to have our money in the stock market when it crashes 20-40% or more whenever the recession does arrive [That already happened and we did not lose money]. Nor do we want to be caught trying to flip houses when the recession hits unless there's a value-added play.
We only look for distressed properties in micro-economic areas that also tend to have some kind of insulation against the broader market forces. For example, in Taos, New Mexico, the art and ski economies tend not to be influenced as much by recessionary forces because of the demographics of the local population. Skiers and art aficionados always need short-term lodging and the hotel room count is limited in Taos. Local investors are always looking for winter/summer Airbnb properties that are ready to rent, and these properties fetch a premium if they are close to the ski area on the north side of town or close to the art community near the Taos Plaza. Three of our rehabs are in these two areas, while the fourth is in Albuquerque. That last property is in a neighborhood of Albuquerque that is easy to sell and has an excellent resale value. Since we bought the house at 50% ARV we don’t have to push the resale value to the max. We can sell at any price that gives us a quick profit because we have plenty of margin.
When the Collective began in 2015, our objective was and still is to be prepared (cash-ready) to buy distressed bargains in the coming recession. In reality, for the savvy prepared investor, distressed properties can be found in every part of the market cycle. The Poston Investment Collective LLC has specialized in finding and acquiring profitable distressed real estate - quick-flip rehabs (houses) and cash flow rehabs (apartments) - because discounted property can insulate against market uncertainty, especially if you add value through renovation like we do. It requires two things: a disciplined formula and a Framework (see the video) to make sure every project is managed with the same processes regardless of size, complexity, or asset class.
Now is the time to think about moving from 1-4 unit flips into safe conservative cash flow properties by the end of 2020. While you’re thinking about that, this is an excellent time to get a few more flip rehab done since we’re not at the market peak yet. But we certainly want to exit flips when the market peaks, then get ready to buy distressed cash flow to ride out the recession.
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