We work directly with property owners and brokers to identify properties that are below market value or under performing because of poor management or maintenance. Once we acquire the property we renovate and improve the property for tenants and distribute any profits to investors.

Rule 506(c) of SEC Regulation D gives private funds a way to raise investment capital through general solicitation and advertising without any limitation on how much capital they can raise. The fund must take reasonable steps to ensure that investors are accredited.

We look for properties that are underperforming due to poor management or maintenance or that are not being used to their highest potential. We target single family, multi family, small bay industrial, and residential infill properties.

Once a property is renovated we return any rental or sale income to investors. Returns are distributed quarterly based on cash flow. We use conservative underwriting to acquire properties and we acquire multiple properties so that on average investors can have the best chance to achieve the 12%-15% return.

There can be demographic changes to the market, construction scope may increase, weather systems may cause damage to the property, these are just a few of the risk factors.

We evaluate the credit application and credit worthiness of the mortgagor and we evaluate the property just like we would if we were considering purchasing it and purchase the note at a significant discount. There are multiple risk factors but should the mortgagor stop paying then the property can be foreclosed and sold.

Lokosee designed this fund with an all weather strategy to perform well in all market conditions, but this investment does have the risk of loss and an investor should carefully review all investment documents before investing.

Lokosee uses a simple waterfall that returns investor capital first and then distributes profits to investors and management. Lokosee also has an asset management fee, acquisition fee, refinance fee, and disposition fee. These fees cover oversight of the investments to make sure that investors assets are protected and well managed.

The minimum investment amount is $50K, and funds are locked up for three years with optional redemption after that point. The fund targets distributions after 12 months with regular quarterly distributions following that initial 12 month period.

If you make at least $200K if you are single, $300K if you are married or have over one million in net worth not including your primary residence you are probably accredited. We have a simple form one of our team members can share with you and you can have your CPA or financial advisor fill out or you can use verifyinvestor.com to verify your accreditation status.

Our strategy is to acquire, stabilize and sell or refinance properties. Our fund has a 10 year time horizon, but we look at market conditions and sell or refinance based on what will be best for investors.

We focus primarily on the sunbelt but we can acquire properties in any growing market that meets our investment criteria

If we do not manage the property ourselves we use trusted vetted third party management companies to manage the property. Our team provides oversight of every project regardless of who is managing the property to make sure that investors assets are always protected.

Investors would benefit from any accumulated depreciation that the fund's assets generate. Most of the assets would be held as long term capital gains to also benefit investors.