Veranda Capital

Veranda Fund 1

Exclusive investment opportunities for accredited investors in student rentals and luxury flips.

Fund Highlights:

  • Targeted AAR of 20%
  • Cash on Cash of 5% to 7%
  • Diversified portfolio across two markets
  • Professional management by experienced team

Fund Overview

$30M

Assets Under Management

18

Properties in Portfolio

45+

Accredited Investors

Veranda Fund 1 is our flagship investment vehicle designed exclusively for accredited investors seeking exposure to high-performing real estate assets. The fund focuses on two distinct strategies:

Student Rentals in New Orleans

Our student rental properties in New Orleans provide stable cash flow and strong appreciation potential. Located near major universities, these properties maintain high occupancy rates and deliver consistent returns.

  • Multi-unit properties near educational institutions
  • Strong rental demand throughout academic year
  • Professional property management
  • Value-add renovations to increase rental rates

Luxury Flips in Laguna Beach

Our luxury flip strategy targets undervalued properties in the prestigious Laguna Beach market. Through strategic renovations and expert design, we transform these properties to capture significant value appreciation.

  • High-end residential properties in premium locations
  • Comprehensive renovations to maximize value
  • Shorter investment timeline (typically 9-14 months)
  • Higher potential returns with managed risk

By combining these two strategies, Veranda Fund 1 offers a balanced approach to real estate investing, providing both steady income and appreciation potential while diversifying across different markets and property types.

Investment Terms

Key Terms

Minimum Investment

$100,000

Fund Structure

Limited Liability Company (LLC)

Target Fund Size

$50 million

Investment Period

3-5 years

Distributions

Quarterly

Investor Reporting

Quarterly financial statements and annual tax documents

Target Returns

Annual Average Return (AAR)

20%

Cash on Cash Return

5-7%

Equity Multiple (Target)

2.0-2.5x

IRR (Target)

18-22%

Note: Target returns are not guaranteed and are based on historical performance and market projections. Past performance is not indicative of future results.

Fee Structure

Management Fee

2% annual management fee based on committed capital, charged quarterly.

Acquisition Fee

1% of the purchase price for each property acquired by the fund.

Performance Fee

20% carried interest after investors receive their initial capital plus an 8% preferred return.

Disposition Fee

1% of the sales price for each property sold by the fund.

Current Portfolio

1200 Pine Street
New Orleans

1200 Pine Street

Student Rental Property

Purchase Price

$850,000

ARV

$1,200,000

Targeted AAR

20%

Square Feet

3,200

Renovation Progress 75%
View Details
556 Through Street
Laguna Beach

556 Through Street

Luxury Flip Property

Purchase Price

$1,950,000

ARV

$2,800,000

Targeted AAR

22%

Square Feet

2,800

Renovation Progress 45%
View Details
684 Seaview Street
Laguna Beach

684 Seaview Street

Luxury Flip Property

Purchase Price

$2,100,000

ARV

$3,200,000

Targeted AAR

24%

Square Feet

3,400

Renovation Progress 15%
View Details
View All Properties

Accredited Investor Requirements

Veranda Fund 1 is available exclusively to accredited investors as defined by the Securities and Exchange Commission (SEC). To qualify as an accredited investor, you must meet at least one of the following criteria:

Individual Income

An individual with income exceeding $200,000 in each of the two most recent years or joint income with a spouse or spousal equivalent exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.

Net Worth

An individual with a net worth, or joint net worth with a spouse or spousal equivalent, that exceeds $1 million, excluding the value of the primary residence.

Professional Certifications

Individuals holding certain professional certifications, designations, or credentials issued by an accredited educational institution, as designated by the SEC.

Entity Requirements

Certain entities with total assets in excess of $5 million, including corporations, partnerships, LLCs, trusts, and 501(c)(3) organizations.

Note: The above is a simplified overview of accredited investor requirements. Investors will be required to verify their accredited status through a verification process prior to investment.

Verification Process

To comply with SEC regulations, we require verification of accredited investor status. This can be accomplished through one of the following methods:

Written confirmation from a registered broker-dealer, SEC-registered investment advisor, licensed attorney, or CPA.

Provision of financial statements, tax returns, W-2s, or other documentation demonstrating income or net worth requirements.

For entities, provision of formation documents, financial statements, and written confirmation that all equity owners are accredited investors.

Contact Us to Begin the Process

Frequently Asked Questions

What is the minimum investment amount?

The minimum investment in Veranda Fund 1 is $100,000. However, we may accept lower amounts at our discretion for certain investors.

How long is the investment period?

Veranda Fund 1 has a target investment period of 3-5 years. However, the fund may hold certain assets for shorter or longer periods depending on market conditions and investment performance.

How are distributions handled?

The fund makes quarterly distributions to investors from rental income and proceeds from property sales. Distributions are typically made within 30 days after the end of each quarter.

What are the tax implications of investing?

Investors receive a Schedule K-1 for their tax filings. The fund structure allows for potential tax benefits including depreciation pass-through and long-term capital gains treatment. We recommend consulting with your tax advisor regarding your specific situation.

Can I invest through my IRA or other retirement account?

Yes, investments can be made through self-directed IRAs and certain other retirement accounts. You will need to work with a custodian that allows alternative investments. We can provide recommendations for custodians experienced with real estate investments.

How is the fund managed?

Veranda Fund 1 is managed by Veranda Capital, LLC, with Marci Surfas serving as the Managing Partner. The management team has extensive experience in real estate investment, development, and property management, with a particular focus on the New Orleans and Laguna Beach markets.

Ready to Invest in Veranda Fund 1?

Join our community of accredited investors and start building wealth through strategic real estate investments in student rentals and luxury flips.

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