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
Municipalities: Phoenix suburbs including Scottsdale, Kirkland, and Arcadia
HOA: No 4
Hold Period: 3 – 5 years
Price: $800,000 - $2,500,000
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 20 to 30 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

The Fund will invest in single family residences in and around Scottsdale, AZ.

Target Returns

20% - 25% Net IRR

Investment Period

3 years from the initial closing

Fund Life

7 years from the final closing

Target Leverage

65% of total committed capital

Target Fund Size

$25 million

fees

1.5% management fee

Preferred Return Hurdle

8% per annum, paid guarterly

Distributions

The manager will distribute any available cash generated from operations to investors on a quarterly basis.

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 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 building’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 30 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
  • Small remodel (10-15 days)
  • Medium remodel (30 – 45 days)
  • Large remodel (45 – 90 days)
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
  • 3 – 5 years
6 Capital Event
  • Wholesale
  • Refinance
  • Portfolio sale
7 Return of Capital
  • Endeavour to return 100% of initial investment to investors + 20% - 25% IRR

"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.