Strategy

target

acquisition criteria

The Fund will seek to acquire undervalued single-family homes, and reposition with high quality amenities to endeavor to increase occupancy and rental rates.

Target Acquisition Criteria

Property Size: 5,000 sq. feet, 6+ bedrooms and 4+ bathrooms
Location: Class A Locations in Phoenix, Scottsdale, Paradise Valley, and Cabo San Lucas
HOA: No
Hold Period: 5 years
Price: $1MM - $5MM
The Scottsdale market has robust supply of large, luxury-style, owner-occupied homes and second homes that we seek to acquire at below-market value prices, re-model and turn the properties into short-term vacation rentals that today’s affluent vacationer is seeking.

summary of

key terms

The fund will acquire between 50 to 60 homes and will be structured as a close-ended investment vehicle where investors will make capital commitments that will be called in during the investment period.
investment strategy

PREF will acquire between 50 to 60 luxury, short-term vacation rental properties, anchored in the Phoenix and Scottsdale area, Cabo San Lucas, and other highly desirable destination markets with favorable ROI's.

Target Returns

20% - 25% Net IRR.

Fund Life

5 - 7 years from the final closing.

Target Fund Size

$100 million.

Target Leverage

70% of total committed capital.

Preferred Return

8% per annum, paid guarterly.

Cashflow Distributions

Available cash distributed quarterly.

fund management fee

1.5% management fee.

Fund Administrator

Verivest

value driven portfolio

The Parsons Villas Approach

The Fund will seek to create a value driven portfolio of luxury, short-term vacation rental properties leveraging its extensive real estate experience and deep relationships in the greater Scottsdale area.
Investment Property Identification
  • Identify luxury, short-term vacation rental properties with a 8-10% cap rate
  • Focus Search On Specific Zip Codes Including 85016, 85018, 85253, 85255, 85258, 85259, And 85260
  • Further Qualify Properties That Meet The Fund’s Stringent Investment Criteria Parameters
property due dilligence
  • Survey each home’s integrity
  • Calculate remodeling costs based on desired floorplan, design, and furnishings
  • Prepare a detailed project plan with the goal of completing renovations as efficiently as possible
valuation models
  • Analyze vacation rental trends and comp rates utilizing recognized yield management cloud-based tools
  • Evaluate data for location and consumer demand
  • Assess financing options
Basket of 50 active vacation rental properties that have been evaluated and added to the Fund’s portfolio
  • Efficiently remodel homes in accordance with the Fund’s criteria to attempt to maximize short-term vacation rental revenue
  • Actively promote the vacation properties through the Management Company’s sophisticated property management systems
*IDEAL TIME FRAME FROM CLOSE OF ESCROW TO COMPLETED RENOVATIONS IS 30 – 120 DAYS*

transparent

Investment Roadmap

The Fund endeavors to provide investors investment opportunities in a straightforward, ethical, and transparent manner.
1 property acquisition
  • Identify property
  • Negotiate price
  • Open escrow
2 Property Remodel
  • Light remodel (30-90 days)
  • Medium remodel (3 - 6 months)
  • Large remodel (6 - 12 months)
3 Management Company Portfolio
  • Home entered into Streamline software
  • Schedule photos, videos, and matterport
  • Create welcome book
4 Distribution Channels
  • Home listed on 95+ online travel sites including HomeAway, VBRO, and Booking.com
5 Hold Asset
  • 5 years
6 Capital Event
  • Refinance
  • Retail Sale
  • Portfolio Sale
7 Return of Capital
  • Endeavour to return 100% of initial investment to investors + 20% - 25% IRR

Exit Strategies Flow Chart

Fund LLC Acquisition Renovation Furnishing Begin Marketing Unit Active Leased & Managed Home 1 LLC Home 2 LLC Home 3 LLC Home 4 LLC Home 5 LLC Finance Buy & Hold Quick Sale Begin RefinanceProcess Final Appraisal & Underwriting End Financing Signed Contract Closing Return Investor Equity through Refinance ( Y ear 2-3) IPO/REIT Disposition (After 5+ Y ears) Continue to Hold (5+ Y ears)

"The best time to plant a tree was 20 years ago. The next best time is now!"

Be a part of history and become an investor in the Parsons Real Estate Fund I. Enter your information below to receive the full PPM.

  • This field is for validation purposes and should be left unchanged.