What kind of Cash on Cash return can I expect?
With HHCP the investor is offered both a debt and equity investment. This approach pushes more of the returns on the cash flow side which is less speculative than the long term upside equity play. Our cash on cash returns range from 6-11%.
How often do I receive dividends or draws?
At HHCP we close out every month and distribute both interest and draw checks to our investors.
How soon can I expect to get my investment back?
One of HHCP’s unique advantages is we stabilize and refinance our projects quickly and usually can return all debt side capital in 18-24 months. We do this through NON-ReCourse financing which means there is no personal guarantee; hence the investor has all their money back with no risk, which yields an infinite return on their remaining equity investment.
What kind of fund structure does HHCP have?
HHCP uses a syndicated approach to funding our projects. We pull together a small group of investor for each deal and form a LLC Partnership for each specific project. We feel this provides options for our investor to choose which projects they want to participate in and liability protection by separating each project. We also use insurance, recorded mortgages and other vehicles to reduce our investors risk and protect and preserve their investment against liability.
What is unique about HHCP, why should I invest in this commercial investment vs. another opportunity?
- Very deep knowledge in real estate vertical by founding partners, including mortgage finance, title, construction, property management, renovation, and financial certifications like CCIM and CAM.
- Completely vertically integrated which keeps costs controlled and understood. We manage all our own properties through Heritage Hill Property Management (HHPM) and do our own construction work through Heritage Hill Homes (HHH) at 35-45% of construction book costs.
- Each project has its own LLC which limits exposure.
- We perform our takeout of initial capital in 18-24 months, not as long term as most of our competition.
- We push our returns to cash on cash which our real and less of our overall return on the long term equity play, hence, our returns our less speculative.
- We place recorded mortgage on initial capital to protect our investor's capital.
What is the average time frame for disposition of HHCP’s assets?
HHCP truly believes in buy low sell high. We analyze the market cycles, capitalization rates for each property and will sell when we can maximize our IRR and reinvest in new value add projects. Generally can be 3-7 years depending where we are at in the cycle. All our projections are based on 5 year holds.