The fund’s core thesis is to consistently produce high yields and protect individual investor ROI through investments in the local Lehigh Valley sub-market, a fast growing sub-market following the post COVID-19 exodus from neighboring metropolises such as New York City and Philadelphia. The fund’s key activities include:
A pioneering approach…
-
Origination and funding of, in whole or part, loans secured by non-owner-occupied 1-4 unit residential, multi-family, mixed-use and commercial properties. Capitalization of local residential redevelopment activity and speculative construction in high demand and constrained-supply areas. To date, acute lack of affordable housing in Lehigh Valley has yielded zero delinquencies in the lending division, and a repeat customer base of 80% allowing consistent reinvestment into new participations. This component of LVPEFUND’s strategy underscores the preferred returns offered.
-
Capital accumulation of Class B and C assets using proprietary methods for short term holding periods. With these assets, the fund focuses on aggressive, rent justified physical improvements, operational changes, and other value enhancement activities to maximize the property net operating income (NOI) and value.
-
Stabilization of under-performing assets through value enhancing and judicious cost saving measures to achieve higher returns per unit. The fund retains the option to reposition and resale these after a 5-10 year window.
Target Returns by Asset Class
-
Our Returns
Our investors receive an annual preferred return and an overall annualized target return.
-
Convenient Payments
We provide our investors with monthly preferred returns & quarterly payments of excess distributable cash.
-
What We Do
We create our returns through diversification in lending and acquisitions in the real estate industry.
-
Methods
Investors receive returns through: qualified lending, real estate re-development and long-term acquisitions.
LVPEF Strategic Plan
Our strategy of acquiring properties for short-term and long-term holds continues to generate sufficient profits to pay our preferred and EDC (Excess Distributable Cash) distributions. We use short-term holds to generate cash to cover renovation costs and support our returns. Long-term holds become the backbone of future cash flow streams to form our core holdings to increase our returns over time. Our lending activities provide consistent returns and liquidity at little or no cost to the fund. These combined elements of our strategy have allowed us to meet our goal of paying our preferred distribution starting the first month of operation and providing for EDC payout each quarter over the past year.
We are closely watching for economic changes that will impact lending. Historically, higher residential mortgage rates have reduced the number of potential retail buyers for single-family homes. Higher commercial loan rates will also likely slow demand for multifamily, mixed-use, and commercial properties. Rates may rise to the point where real estate prices flatten out or even decline to some extent. These factors may lead to downward pressure on real estate prices. However, the local Lehigh Valley market is still supported by strong demand for single-family homes and apartments. The demand continues to be much greater than the supply and we believe this will limit downside risk through the balance of this year.
Property Acquisition Process
Why Invest in Lehigh Valley?
The Lehigh Valley is a region of Pennsylvania located within a short 90-minute drive to New York City, and 60-minute drive to Philadelphia.
A former manufacturing area, the Lehigh Valley is geographically a one-day drive to 40% of the total U.S. population and more than 50% of Canada’s population.
As e-commerce and logistics play an increased role in the U.S. economy, the Lehigh Valley is well positioned for exponential population and economic growth.
The 3rd largest metropolitan area in Pennsylvania, the Lehigh Valley is already considered the nation’s second largest hub for warehousing, manufacturing, e-commerce logistics and distribution, second only to the Inland Empire in California.
Higher education, life sciences and healthcare are additional sectors where the area has grown immensely.
As such, the area boasts a handsome $43.3 Billion GDP ahead of three major U.S. States, including Vermont ($29.1 Billion), Wyoming ($33.8 Billion) and Alaska ($42.8 Billion), according to the BEA.
The Lehigh Valley is additionally unique in the diverse sector of employment within the region. It’s top sectors including manufacturing, transportation, health care, professional sciences, and finance. It holds 108.9 million square feet of logistics space, with an additional 7.3 million square feet of warehousing and industrial spaces under construction.
Nearly 50,000 jobs are projected to be added to the local economy, which will only heighten the need for affordable housing for the local workforce.
Diversified Economy
LVPEFUND — Evergreen Fund
Unlike traditional closed-ended real estate funds and operators, the LVPEFUND does not expire.
Investors receive an annualized preferred return each month and an overall annualized target return.
The fund has no termination date and capital that is raised continues to earn returns on an ongoing basis.
This was a specific strategy chosen by the fund managers to ensure investors would be able to achieve high yield returns. Monthly, investors in the fund are provided preferred returns, as well as quarterly payments of excess distributable cash based on the firm’s investments.
The minimum investment is $50,000 and an initial holding period of one year to safeguard fund liquidity.
Additionally, unlike some funds, the entirety of an investors commitment is backed by real estate assets, making LVPEFUND a viable long term solution.
LVPEFUND vs. Others
-
Annual preferred return paid monthly via ACH
Annual target return calculated and paid quarterly
Only real estate-backed investments
IRA-friendly investments
Proven leadership with a long-standing management history
Management is extremely active within our market’s daily deal flow
Specifically targeting the Lehigh Valley market
Long-term asset appreciation
Diversified investment strategy
Long-standing reputation as a local resource for real estate investors
-
High-rate returns with predictable monthly income
Share in bigger successes of the fund
Hard assets with appraised value behind every transaction
Defer or eliminate taxes while creating long-term growth with income and appreciation
High level of confidence in delivering our projected results
Firm has unique access to off-market opportunities to get the highest returns for our investors
Early entrant in a rapidly growing $43 BB economy with highly profitable opportunities
Fund ownership has flexibility to grow significantly
Provides a hedge against future economic cycles and provides the fund the ability to shift the asset mix with market conditions
A successful system to market dispositions open to investors and buyers across the U.S.
Portfolio
Join the Lehigh Valley Private Equity Fund
Schedule a no-obligation 1:1 virtual meeting w/ Tejas Gosai, Manager of LVPEFUND. During the call, you'll have the opportunity to get all of your questions answered and learn more about investing with us.
