Last month, CalTier Fund 1, LP paid out the 24th consecutive monthly distribution to investors. This achievement was a massive milestone for the fund, the entire team at CalTier, and our stellar real estate partners.
For those invested with us already, you will find October’s distribution reflected in your account (the 25th consecutive), and based on this payment, the fund is producing an annualized cash-on-cash return of 6.6%*.
When we launched CalTier Fund 1 in November 2019 we set out to build a robust portfolio of real estate assets that we believed could withstand ups and downs in the market. We didn’t know quite how well it would perform in tough times, but now, with two years of consistent investor payouts, I can hand on heart say we built just that.
We created CalTier Fund 1 around what we perceived, based on historical data, to be a very robust real estate type: Class B&C Multi-Family. There are plenty of reports and websites that go into detail and show how well Multi-Family has performed against other real estate types and even the S&P 500. I won’t comment on those in this email because you can find them online, but I will say that the fundamentals of class B&C Multi-Family are what drove us to choose this particular asset type:
Resilience – Ability to withstand ups and downs in the market.
Growth – There is a demand for more multi-family units in the United States in almost every state.
Sustainability – People always need clean, affordable places to live regardless of what the market is doing.
Flexibility – The ability to add value to the asset through renovations and other creative property management mechanisms.
Leverage – The ability to use leverage, often up to 70% debt, to increase cash flow and project returns.
There are also other economic drivers, such as the baby boomers moving from their single-family homes into apartments in their later years – according to the Census Bureau 74.6 million of them!
Obviously, with any investment, there are never any guarantees on future performance, but we are incredibly proud of how well we have built the cornerstone of what we believe will be a portfolio that will continue to grow and perform.
We recognize you have many options to choose from when investing your money, and we greatly appreciate your trust when you invest with us. What I would say is to make sure you do your research and understand exactly what you are investing in when you pledge your hard-earned money.
Not all investments are the same, and this is especially true with real estate.
I see a lot of buzz right now around different real estate offerings, whether it be vacation rentals, house flips, storage, build-to-rent properties, and many others. Vacation rental investing, in particular, is a hot topic. While some people have made a lot of money on this initial ‘bump,’ I question the longevity to sustain returns. There is a lot of inward pressure on that market right now from City and State regulations on length of stay, hotel brands pushing back with creative solutions such as discounted rates and late check-out times, and overall the desire of the market to pay what is increasingly becoming higher fees.
As always, it comes down to personal choice, and I personally value the longer-term benefits of sustainable options over the short term. Thanks again for your commitment to what we are doing and, as always, if you have questions, let us know.
CEO & Co-Founder
You will see “NCPS custodian” (our escrow agent) on your bank statement for the distribution payment for those of you who elected to receive one.
If you selected the ‘reinvest my distributions’ option you will see another transaction on your dashboard and there is nothing else for you to do.
If you would like all your distributions paid to your bank account you MUST confirm those details in your investor dashboard using our secure system. You can elect to do so and it will be applied to your next distribution. To do so, please follow the instructions below:
- Log into your dashboard here.
- Click ‘My Account’ at the top of the dashboard
- Navigate to ‘Payment Method’ on the sub-navigation
- Click ‘Add new payment method’ and follow the steps
*CalTier does not see your banking details.
You can see where to go in the image below: