Veranda Capital
Coming July 2024

Veranda Fund 2

Real estate investment opportunities for non-accredited investors in student rentals and luxury flips.

Fund Highlights:

  • Targeted AAR of 15%
  • Cash on Cash of 4% to 6%
  • Lower minimum investment threshold
  • Access to institutional-quality real estate investments

Fund Overview

Pre-Registration Now Open

Veranda Fund 2 is our upcoming investment vehicle designed specifically for non-accredited investors who want to participate in institutional-quality real estate investments. Launching in July 2024, this fund will provide access to the same types of high-performing assets as our Fund 1, but with a structure that allows participation from a broader range of investors.

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

Democratizing Real Estate Investment

Veranda Fund 2 is designed to democratize access to institutional-quality real estate investments. We believe that everyone should have the opportunity to build wealth through real estate, not just accredited investors.

Our fund structure leverages recent regulatory changes that allow non-accredited investors to participate in private investment offerings, providing access to the same types of high-performing assets that were previously available only to the wealthy.

Pre-Register for Fund 2

Anticipated Investment Terms

Key Terms

Minimum Investment

$25,000

Fund Structure

Regulation A+ Offering

Target Fund Size

$20 million

Investment Period

3-5 years

Distributions

Quarterly

Investor Reporting

Quarterly financial statements and annual tax documents

Target Returns

Annual Average Return (AAR)

15%

Cash on Cash Return

4-6%

Equity Multiple (Target)

1.8-2.2x

IRR (Target)

14-18%

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

Anticipated 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.

Final terms will be available in the offering circular, which will be filed with the SEC prior to the launch of Fund 2 in July 2024.

Regulation A+ Offering

Veranda Fund 2 will be offered under Regulation A+ of the Securities Act, which allows companies to raise up to $75 million from both accredited and non-accredited investors. This regulatory framework provides several benefits:

Accessibility

Regulation A+ allows anyone to invest, regardless of income or net worth, opening up institutional-quality real estate investments to a broader audience.

Transparency

Offerings under Regulation A+ require SEC qualification and ongoing reporting, providing investors with greater transparency and disclosure.

Liquidity Potential

Securities issued under Regulation A+ can potentially be traded on secondary markets, offering the possibility of greater liquidity compared to traditional private placements.

Investor Protection

The SEC review process and disclosure requirements help ensure that investors have access to the information needed to make informed investment decisions.

By utilizing Regulation A+, Veranda Capital is able to democratize access to real estate investments that have traditionally been available only to accredited investors, while maintaining high standards of transparency and investor protection.

Investment Strategy

Veranda Fund 2 will employ a balanced investment strategy that combines income-producing student rentals with value-add luxury flips to provide both steady cash flow and appreciation potential:

Student Rental Property

Student Rental Strategy (60% of Portfolio)

Our student rental strategy focuses on acquiring and renovating multi-unit properties near major universities in New Orleans. These properties provide steady cash flow through rental income and benefit from consistently high demand due to their proximity to educational institutions.

  • Target properties: 4-12 unit buildings within walking distance of universities
  • Value-add renovations to improve unit quality and increase rental rates
  • Professional property management to ensure high occupancy and tenant satisfaction
  • Typical hold period: 3-5 years
Luxury Flip Property

Luxury Flip Strategy (40% of Portfolio)

Our luxury flip strategy targets undervalued properties in the prestigious Laguna Beach market. We acquire properties with significant renovation potential, implement comprehensive improvements, and sell them at a premium to capture substantial value appreciation.

  • Target properties: Single-family homes and small multi-family properties in premium locations
  • Comprehensive renovations including structural improvements, layout optimization, and high-end finishes
  • Collaboration with top designers and contractors to create distinctive, market-leading properties
  • Typical hold period: 9-14 months

Risk Management

Our investment strategy incorporates several risk management practices to protect investor capital:

  • Geographic diversification across two distinct markets
  • Strategy diversification with both income-producing and appreciation-focused investments
  • Conservative underwriting with built-in contingencies
  • Thorough due diligence process for all potential acquisitions
  • Professional property management and construction oversight
  • Regular portfolio reviews and market analysis

Pre-Register for Fund 2

Be among the first to access Veranda Fund 2 when it launches in July 2024. Pre-registration gives you priority access to the offering and ensures you receive all updates and information as soon as they become available.

Pre-registration does not constitute a commitment to invest or an obligation on either party. Formal investment opportunities will be presented when the fund launches in July 2024.

Frequently Asked Questions

What is the difference between Fund 1 and Fund 2?

The primary difference is accessibility. Fund 1 is available only to accredited investors with a minimum investment of $100,000, while Fund 2 will be available to all investors (both accredited and non-accredited) with a lower minimum investment of $25,000. Fund 2 will be offered under Regulation A+, providing additional regulatory oversight and transparency.

When will Fund 2 be available for investment?

Fund 2 is scheduled to launch in July 2024. We are currently in the process of preparing the offering circular and other required documentation for SEC qualification. Pre-registration is now open, which will give you priority access when the fund launches.

What is the minimum investment amount?

The minimum investment in Veranda Fund 2 will be $25,000. This lower entry point is designed to make institutional-quality real estate investments more accessible to a broader range of investors.

How long is the investment period?

Veranda Fund 2 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 will make 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 will receive appropriate tax documentation for their 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.

What is Regulation A+?

Regulation A+ is a securities offering exemption that allows companies to raise up to $75 million from both accredited and non-accredited investors. It requires SEC qualification and provides investors with greater transparency through mandated disclosures and ongoing reporting requirements.

Be Among the First to Invest in Veranda Fund 2

Pre-register today to secure priority access when the fund launches in July 2024. Join our community of investors and start building wealth through strategic real estate investments.

Pre-Register Now Contact Us with Questions