Three Arch Investors 2013, LLC, a California LLC, is proud to announce our West Coast Fix and Flip Fund, a new and advanced version of the fix and flip pools we have successfully completed since 2010. We now offer investors greater flexibility and more access to West Coast housing inventories through advancements in technology, improved reporting, updated legal systems, and a more efficient industry.
Because the entry rules for both accredited and non-accredited investors have been relaxed, we can now accept a minimum investment of $50,000. While we cannot guarantee our past record of success will continue, we believe 2014-2015 will find our investors earning rates consistent with our results over the past four years. Our funds’ rates of return have substantially exceeded most passive investments, delivering 10% to 14% annualized rates of return.
How The Program Works
Three Arch Investors 2013, LLC was established to provide investors with an opportunity to invest with experienced professionals who have a track record of over $1 billion in residential real estate development. The fund will buy single-family homes in California, Nevada, and Oregon to continue our successful approach that has seen more than 80 homes – worth $15 million – successfully fixed and flipped since 2010.
Our West Coast Fix and Flip Fund is acquiring mostly upscale homes in safe neighborhoods that typically have been neglected during the last five years by owners who had no equity in the properties. We rehab homes with new carpet, new cabinets, new appliances, modified kitchens with open floor plans, and upgraded master bedrooms. Our improvements are aimed above the established levels of the surrounding neighborhoods, allowing us to increase our sales velocity over homes that have not been rehabbed. The fix and flip business today has many suppliers and sub-contractors who specialize in this field, making it much easier for operators to execute necessary improvements.
After each six-month period, the fund will calculate the estimated profits, and disburse a portion of those profits to provide some current income. At the end of each six-month period, investors may indicate if they desire to exit their investment after the next six-month period – providing a vehicle for a minimum holding period of 12 months. We have found that our investors appreciate this added flexibility.
More Flexibility and Liquidity for Investors
We have established lines of credits with three lenders, which allows us better liquidity than we have had in the past. Based to our past performance, our firm has Platinum Status on several auction boards. We believe that with interest rates reduced to a nominal return for passive investors, our West Coast Fix and Flip Fund – with its more flexible terms and liquidity – offers investors an excellent vehicle for passive returns that will exceed most alternative investments.
Our Experienced Team
Of course, while past results do not guarantee future performance, flipping homes has risks that we try to mitigate with our skill set. During the past five years, our experienced team has had only five homes that incurred losses – compared with more than 75 that made money. While we have an excellent record, every acquisition is unique. The industry averages approximately 15% losses due to the nature of buying foreclosures and finding unknown issues which require repairs not evident at the time bids are placed on homes.
The Truth about Fix and Flip “Reality Shows”
You may have watched fix and flip “reality shows” and believe they accurately represent the business. However, the drama shown is for dramatic effect and does not reflect actual industry performance. To reiterate our earlier comment, approximately 15% of homes bought at auction have issues that ultimately result in a loss for investors. Because of our extensive experience, we understand this risk and more than offset our losses with homes that either meet or exceed expectations.
Many investors have been with Three Arch Investors and its managing general partner, David Michelson, for decades because of our performance and impressive past rates of return. In fact, some families have three generations of members in our current pools. They trust us because we know our business well. Therefore, we invite you to participate and call us with questions. We will be pleased to provide references and look forward to your enquiries.
For ore information, please contact David Michelson, Managing Partner, Three Arch Investors, LP, Laguna Hills, CA by calling 949-305-5165 or complete our online Inquiry Form.