Fix and Flip Fund
In collaboration with Brem Group, Blake Capital Group is pleased to present an exciting opportunity to invest in the Fix and Flip Fund. This fund is dedicated to the construction, acquisition, and redevelopment of single-family homes in the Houston, Texas market.
As an evergreen fund, it is open-ended and continuously accepts investments. Additionally, we offer a six-month liquidity provision, allowing you to liquidate your position if you are not satisfied at any point during the investment.
By applying an institutional approach to this straightforward concept, investors in the fund can benefit from shorter, more liquid hold periods, limited competition, an experienced sponsorship team, and long-term returns.
Property Metrics
Property Type: SFH
Location: Houston, TX
Status: Currently Raising
Total Raise: $10M
Business Plan: Redevelopment / Development
Total Properties: 10+
Investment Highlights:
Shorter Hold Period / Liquidity Provision
Investing in residential development and property flips can offer quicker returns compared to multifamily investments. While multifamily projects typically span a cycle of 3 to 5 years, residential flips allow for the completion of a full development project in less than a year. This approach provides greater liquidity and enables the reinvestment of profits more quickly.
- Investors in the fund are provided with a six-month liquidity provision, allowing them to withdraw their equity with six months’ notice if they wish to do so for any reason.
Experienced Sponsorship Team
This fund will mark the 6th transaction between the Brem Group and Blake Capital Group.
- With a robust track record in the Houston market, Blake Capital Group boasts extensive experience, having successfully owned and operated six properties thus far, predominantly focused on multifamily residences.
- Brem Group has successfully implemented this business plan on ten single-family homes to date, achieving an average deal-level internal rate of return (IRR) of 67.3%.
Limited Competition
We narrowed our foreclosure buying criteria to homes built between 2009-2019 with an ARV over $500,000. At this price point, there is less competition among bidders compared to homes in the $200,000 to $300,000 range, allowing us to purchase newer homes that require fewer renovations.
Additionally, homes built during this time frame typically have lower existing loan-to-value ratios than those built during or after the COVID housing boom, offering a larger profit margin and more flexibility for our projects.
Long Term Returns:
This open-ended fund is designed to cyclically acquire properties, sell them, distribute properties, and then reinvest in new projects. By participating in the fund over a longer period, investors can anticipate a higher level of profitability.
Additionally, the sponsorship offers a 24% preferred rate of return, providing protection against downside scenarios.
Disclaimer
*This offering is being made under Rule 506(c) of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”), which permits general solicitation and advertising of the offering. The securities being offered have not been registered under the Securities Act, or any state securities laws, and are being offered and sold in reliance on exemptions from the registration requirements of the Securities Act and applicable state laws.
The offering is being made only to accredited investors, as defined in Rule 501(a) of Regulation D. Accredited investors are presumed to be able to fend for themselves and bear the economic risk of investment in the securities being offered.
The information contained herein is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Any such offer will be made only by means of a private placement memorandum and related documents. The private placement memorandum will contain complete information about the offering, including the risks associated with investing in the securities.
Investing in the securities being offered involves a high degree of risk, including the possibility of a complete loss of your investment. The securities being offered are speculative and involve substantial risks. The risks include, but are not limited to, the following:
- The real estate market may decline, causing a decrease in the value of the property.
- The property may not generate sufficient income to meet its operating expenses or debt service obligations.
- The property may require significant capital expenditures or maintenance expenses, which could result in a decrease in income or increase in expenses.
- The property may be subject to environmental or other liabilities, which could result in significant costs to remediate or defend against claims.
- The value of the securities may be affected by economic, political, and regulatory developments.
Investors should carefully consider these and other risks before investing in the securities being offered. Investors should also carefully review the private placement memorandum and related documents before investing.
No assurance can be given that any investment in the securities being offered will be profitable or that investors will not lose their entire investment. The securities being offered are not insured by the Federal Deposit Insurance Corporation or any other governmental agency.
The information contained herein is subject to change without notice and does not purport to be a complete description of the securities being offered or the risks associated with investing in the securities. Any such offer will be made only to qualified investors by means of a private placement memorandum and related documents, which should be read in their entirety.