Now Re-Open For Investment

The fund is now re-open for investment, through March 8, 2024.  Please click "Invest Now" on the right-hand side of this page to initiate an investment into the fund.

Learn More

Explore more about The PREF Fund and how preferred equity works:

• The PREF Fund: Presentation Deck
• The PREF Fund: Recording of Investor Presentation
• The PREF Fund: Recording of Live Q&A Webinar

For inquiries or to schedule a call, contact J Scott at j@bardowninvestments.com or click here.

Frequently Asked Questions

How Does The Pref Fund Provide A Lower Risk Than Traditional Syndications/Funds?

The PREF Fund seeks to dramatically lower risk through two mechanisms:

1.  The Fund will only invest in projects as a Preferred Equity class of shares, meaning the fund will receive priority treatment in receiving distributions and profits, second only to the lender.  In other words, for the deals the Fund invests in, the Fund will be entitled to receive a return of its capital, as well as all profits, prior to other investors receiving even a return of capital; and

2.  The Fund will make smaller and more numerous investments across a diversified set of real estate assets, with the typical Fund investment averaging $2-3M.

Additionally, the following safeguards will be made available as part of the Fund to reduce risk even further:

*  Fund operators will take no fees from the Fund

*  The Fund will target a maximum 80% LTC between debt and our Fund's equity position

*  Bar Down Investments principals will participate as General Partners in all Fund investments

*  Bar Down Investments will perform due diligence & underwriting for every asset in the Fund

*  Investments will provide for Fund operators to overtake management should performance targets of assets not be met

What Are the Projected Returns From the Fund?

Fund investors are projected to receive the following returns:

*  6% annual cash flow, paid monthly starting the month following the investment;

*  6% annual profit share, paid upon the sale or refinance of the asset

*  Between the monthly cash flow and the deferred profit share, the Fund projects fixed 12% average annual returns 

*  Participation in tax benefits for all current fund assets (Depreciation, Bonus Depreciation & Cost Segregation)

What is the Fee Structure of the Fund?

Fund managers take no fees or payment from the Fund.  Fund managers take an equity position in each of the assets in which the Fund invests, and are paid based on the performance of the asset.  

Note that as part of the general partnership, Fund managers have some degree of insight and control over operations, providing an additional layer of risk protection for the Fund.

How Has the Fund Performed To Date?

The fund has successfully paid all projected distributions to date, and there is no reason to believe this will not continue. Click here to view the PPM addendum required to be distributed to new investors as part of this raise.

Do New Fund Investors Get Exposure to Existing Assets in the Fund?

All investors in the fund are diversified across all assets in the fund.  New investors in this round of the Fund will have exposure to all previous assets in the Fund (prorated based on their time in the Fund and the size of the Fund's investment), and will then get exposure to any other assets the Fund might purchase in the future.

What is the Anticipated Term of the Fund?  When Will I Get My Capital Back?

The fund is projected to continue buying property for the next 1-2 years, after which we expect assets to start selling off. We project the Fund will be wound down in the next 4-6 years as all assets are sold off.  Once the Fund starts winding down, capital will be returned as assets are sold off, along with the back-end profits (the additional 6% per year) that accrued with that asset.

How Exactly Does Preferred Equity Work?  How is it Lower Risk?  

Here is more information about how Preferred Equity Works:

https://www.bardowninvestments.com/intro-preferred-equity

To reserve your spot, click "Invest Now" in the right-hand column.

Any questions, please contact J Scott at j@bardowninvestments.com.

*** Note that reserving a spot does not guarantee a subscription in this investment.