Value-Add Residential Fund (VRF)
- Fôrt + Hōm
- Oct 28, 2021
- 3 min read
After the successful launch and funding of our first Value-Add Residential Fund (VRF), Fort + Home (FH) is thrilled to announce that we will be opening a second (VRF) in October.
The real estate market is continuing to boom and the pandemic and has generated tremendous growth in the Rocky Mountain region. With flexible work arrangements becoming the norm, many people are seeking the type of community, lifestyle, and affordability that the Rockies offer. The VRF is an amazing opportunity to passively invest in real estate throughout the Rocky Mountain region.
For the last 13 years, Fort + Home has been successfully investing in and revitalizing real estate properties in the region. These restored homes and buildings add new value to their communities. The Fort + Home VRF expects to deliver attractive investor returns while providing quality, attainable housing in desirable neighborhoods.
Real estate prices continue to rise, pushing many prospective buyers out of the market. With no slowdown anticipated until at least 2024, the VRF plans to acquire distressed and/or foreclosed properties at prices we believe are a discount to the market. We anticipate renovating these properties will yield higher returns than building new structures. This strategy aligns with FH’s mission to offer homes for sale in neighborhoods that were previously unaffordable to many buyers.
The VRF is focused on desirable locations in Colorado including Denver, Colorado Springs, Fort Collins, and Grand Junction. Demand is strong for both multi-family and single-family homes in these areas. Our business plan is to increase the supply of quality, affordable housing to make purchasing homes attainable for more buyers.
The Fund plans to diversify investments into two types of properties:
Multi-family, 2-50-unit properties: FH’s renovations should add significant value to these properties. We believe the improvements will lead to increased income, reduced expenses, increased occupancy, and extended leases. We also expect the restored properties to appeal to a wider tenant base, which should increase the net operating income and value of the properties.
Single family fix-n-flips: FH plans to buy houses that have an after-repair value below the area's median home price. After remodeling to FH's quality standard, we plan to sell the property at an affordable price that still yields considerable profit. This model can be replicated across many homes, which we expect to improve the overall return of the Fund.
As a vertically integrated firm, Fort + Home manages the assets from start to finish. We have deep experience in every step of the process.
We know the Colorado housing market. We understand neighborhood by neighborhood where there are growth opportunities and hidden gems.
We plan to only purchase properties below market value, so equity already exists at the point of acquisition.
Our Construction and Development team specializes in making the right, value-added renovations which we expect will maximize returns.
We provide property management services during ownership of the property which can minimize expenses and provides flexibility to rent the properties if needed
Fort + Home is committed to building quality housing that people will be proud to call home. Our proven value-added model creates desirable assets and together, with our investors, we plan to elevate our communities. We hope you will join us on this mission.
Our new fund will be limited to accredited investors. If you are interested in additional information about our company or the investment opportunity, please contact us.
Forward Looking Statements: While the company believes in these projections, their based upon the forward-looking assumptions, the company cannot guarantee future results, performance, anticipated returns or achievements.
As defined by Rule 501 of Regulation D of the Securities Act of 1933.
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