RealFi Real Estate Investment Trust LLC

RealFi REIT

Realfi Real Estate Investment Trust is a real estate debt business providing creative and comprehensive financing solutions across the capital structure and risk spectrum. 

We originate loans and invest in debt securities collateralized by high-quality real estate. 

The RealFi team of real estate professionals, with a combined 100+ years of real estate and lending experience, ensures a relationship-focused approach to real estate lending, providing customized financing solutions and certainty of execution to our clients.

If you would like to learn more about our lending programs, or investing in the REIT, please contact us at info@rhfunding.com

Bridge Loans

Structure

Our loans are typically bullet payment, first position mortgages on U.S. real property.

Rate

9.0% to 12%, 360-day basis simple interest. Most loans are 100% interest reserved upfront at close or we accept A.C.H. direct payments.

Size

$250,000 and up, with an average of $1,000,000. We usually package smaller properties into single loans to reduce transaction costs and improve our collateral.

Duration

6 to 18 months.

Security

Typically, first position mortgage on real property collateralizing the loan. We do not lend against owner-occupied properties. All borrowers are required to be incorporated. Borrowers must typically provide a personal guaranty of the note.

Geography

The 24-hour gateway cities of New York City, Boston, Washington, D.C., Seattle, the San Francisco Bay Area, and Southern California. Other select secondary markets. The real estate industry continues to express growing confidence in the potential investment returns in these markets. We are also viewing Florida in a very positive light.

Property types

We lend against 1-4 Family properties, Multi-family properties, Warehousing & Light Industrial, Office, Mixed-Use, Land, and other asset types

Loan to value

Most loans are capped at 65% L.T.V. The value determined based on our underwriting process and defined as After Renovated Value (A.R.V.) upon completion of renovation/construction.

The REIT

RealFi Real Estate Investment Trust, L.L.C.

Simply put, our objective is to identify viable transactions with responsible and experienced borrowers, protect downside risk and generate superior risk-adjusted returns to our investment partners.  For over two decades, this method has been the core of our investment philosophy and it has generated excellent results. Participation in the REIT offers a variety of attractive features:

Demonstrated performance

Over the last 30 years, the principals of the REIT have successfully closed numerous Mortgage Loans. Over the last 2 years the REIT has successfully closed approximately 95 Mortgage Loans. Despite the unprecedented disruption to the economy caused by the COVID-19 pandemic, the RealFi portfolio has performed well over the first half of the year. Our success stems from selecting the right deals and the right people. We say “no” far more often than we say “yes”. We believe our track record indicates we understand how to evaluate risk. Protecting one’s capital and maintaining a viable exit strategy should always come before sizing up one’s potential profits.

Attractive investment structure

The Units offered have a variable payment structure that affords Investors participation in the entire net cash flow (after certain fees and expenses) derived from the underlying portfolio, unlike most debt securities, which generally cap returns at a fixed coupon rate.

Portfolio Stability

After a start to the year that saw the stock market continuously setting new all-time highs, “normal” life, as we all knew it, came to a crashing halt as the COVID-19 pandemic unleashed a once in a century global health crisis along with the largest and most rapid economic downturn since the Great Depression. At the same time, the country is also experiencing a once-in-a-generation social movement where many Americans are demanding greater racial justice and equality. It is within the context of these pivotal world events that we then take measure of our investment performance over the last six months and continue to be encouraged by the strength and stability of the overall portfolio, particularly in relative comparison to what can only be described as extreme volatility in nearly every other investment class.

Alignment of interests

Financial interests are aligned between the General Partner and Limited Partners as evidenced by the performance-based compensation and the substantial investment made by the principals. The ongoing management practices of the REIT represent a continual alignment between the General Partner and Limited Partners.

Diversification

Since our investment structure provides all investors with indirect exposure to the REIT’s entire portfolio, investors will benefit from diversification as the size of our portfolio increases. As the size of the REIT (and the number of Mortgage Loans) grows, we will endeavor to diversify the portfolio across geographical markets, borrowers, type of underlying cases, and a variety of other factors.

Value and Growth

The Partnership will also target both value and growth-oriented markets. We believe that certain markets, especially in the Southeastern United States, contain the potential to grow at a pace that is in excess of that of the nation as a whole. Georgia, the Carolinas, Austin, Boston, Florida and Tennessee are all projected to grow at a substantially higher pace than the rest of the country in the near- and medium-term time horizon.

Distressed Debt Instruments

As the COVID-19 pandemic continues to cause a global health crisis, there is a strong belief that a credit crunch is imminent and should result in an increased pipeline of commercial mortgage defaults. Many of these will be the result of over-leveraging or ownership issues. We believe that, beginning in late 2020, there will be an opportunity to purchase debt instruments at substantial discounts to replacement cost or investment value, from institutions, servicing companies and governmental agencies.

Institutional reporting

In order to provide the highest quality portfolio monitoring, performance measurement, performance attribution, accounting and reporting, the REIT currently outsources all administrative and reporting functions to an unaffiliated third-party specialist provider that provides administrative, portfolio measurement and reporting services.

Simply put, our objective is to identify viable transactions with responsible and experienced borrowers, protect downside risk and generate superior risk-adjusted returns to our investment partners.  For over two decades, this method has been the core of our investment philosophy and it has generated excellent results. Participation in the REIT offers a variety of attractive features:

Target Markets ( Portfolio Geography)

Target Markets

RealFi is a national real estate lender. Currently, our investment strategy is focused in the 24-hour gateway cities and surrounding suburbs of New York City; Boston; Washington, D.C.; Seattle; the Bay Area; Florida and southern California. Secondary markets showing strong growth such as Austin, Denver, San Diego, San Antonio and Nashville are also viable lending markets.

New York
Our portfolio secures properties across the greater NYC and surrounding metropolitan areas. We know this market well and have acting partners across residential and commercial properties.
Boston
Surrounded by the second largest place for business on the east coast and with its over 30 Universities, Boston and its surrounding suburbs are well matched with our lending opportunities.
Washington D.C.
Washington D.C. has transformed itself into a leading business commerce anchor on the mid-Atlantic. We work with both downtown and surrounding areas across residential and commercial projects and our teams are keen to expand our footproint within this market.
Seattle
We provide lending services across the northwest and are seeking opportunities across Seattle and into Portland. This area of the U.S. has innovative companies across technology, life sciences, and food product development and is the go-to place for all who have visited.
San Francisco
The Bay Areas and surrounding Mountain View, San Mateo, Sonoma, and 101 other municipalities offer opportunities for commercial and residential projects.
Southern California
We are currently working with projects across southern California and have interest in working with partners across the state.
Previous
Next

Take a moment to discuss your next project with a member of our team.