A “Real Estate Equity Pool” is an organization or combination of Investors pooling capital for investment. HIGHLAND Capital Group (HCG) arranges acquisition of Commercial Real Estate. One of the investment advantages of an Equity Pool is the ability to participate in a broader range of transactions, allowing our Investors to diversify their investments.
Each Investment, or Project, is put in to a separate LLC, and managed by HCG. Not only does HCG act as the Managing Member, we also make a cash investment in each and every one of our deals. We do not and would not expect any Investor to have the only capital at risk.
HCG strives for the following through its Equity Pool:
Realize cash-flow from operations that will allow annual cash distributions to its members, and invest in properties that will provide year-after-year gain in value to allow for additional cash distributions from either asset disposition or refinance. As a general rule HCG has a buy and sale strategy for all its investments. However, there may come a time that a long term hold of the investment makes sound business sense for its members. HCG philosophy is to identify properties representing sound investment value and to operate its properties in order to generate projected annual cash-flow.
Investing with HCG is to be viewed as an alternative or compliment to a short-term investment strategy. It has been recommended by financial planners that investors should have 15% to 30% of their investment holdings in Real Estate, excluding personal residence(s).
There are two ways Investors have worked with us over the years. Investors have invested in our Commercial Real Estate Investment Fund, allowing Investors to pre-commit to a level of capital that is contributed when they receive a “capital call notice” from HFCG. Upon the substantial completion of due diligence, we submit such a capital call notice to each Investor for their pro rata share of the capital required for the project. Think of this style of investment like a traditional venture capital fund. A second way in which Investors have participated with us is by investing in single designated property syndications.
Our short-term financing and syndication opportunities are only made to persons who are accredited investors with substantial financial capabilities and who have pre-existing substantive relationships with HCG.
We are not a licensed securities broker, and therefore each of our investments is only offered to those who have a connection with us. If you are interested in short-term financing, please call us for a private presentation.