Liquidity Without Liquidation

Commercial real estate investments are traditionally known for their illiquid nature, meaning they can’t be quickly sold or converted into cash without a significant loss in value. This is due to the time it takes to find buyers willing to pay the property’s full market value. However, we’ve designed a unique liquidation program that addresses this challenge head-on.  We will be reserving 10% of the free cash-flow from our portfolio of assets, on a quarterly basis, to create quarterly liquidity events for our universe of individual investors.  This innovative approach allows for greater flexibility and access to funds when investors decide it’s time to exit. 

Furthermore, our liquidity program draws it strength from our broad base of small individual investors, which diversifies the investment timelines and needs among the group. This diversity ensures that redemption requests can be efficiently managed, as not all investors will seek to exit at the same time, maintaining the fund’s growth trajectory and compounding effect. This structure provides a thoughtful solution to the traditionally illiquid nature of real estate investments, giving our investors both the growth potential of real estate and the flexibility they desire.

Questions? You’re Covered

The liquidity program draws it strength from the law of large numbers.  

All share purchases, will become eligible to participate in the redemption program, 18 months after initial purchase. Investors can then submit a redemption request, on our mobile app or in our investor portal.  We will fill those redemption requests with 10% of the cashflow reserved from property cash-flow in our investment portfolio.  We will buy back your shares at the then current Net Asset Value (NAV) per share, without discount. 

Remember this is an open ended fund, meaning we will be continuously selling new shares at the current NAV price per share. As the fund grows we will be publishing the NAV per share price on the web site and in the portal. So you will always know what the redemption value of your shares will be.

It is highly unlikely that we will be over subscribed on redemptions in any given quarter but in the event that does occur, investors will be redeemed on a pro-rata basis.  And any unfilled redemptions will be rolled to the following quarter, during which time an investor can decide to retract their remaining redemption or let it be filled at the end of said quarter.  

The Net Asset Value is the aggregate value of all of the equity in properties owned by the fund, cash available for investment, and business assets.  Because we invest in properties that produce cash-flow the Net Asset Value consistently grows.  In addition, the value of our real estate equity remains constant unless there is a material change in the cashflow stream of a given property.

No, shares are not publicly traded because we are not a publicly listed firm.  Being publicly listed would open up REICG shares to the volatility of the market and the manipulative forces of large institutional investors.  Being private allows our share value to remain remarkably stable and gives our investors peace of mind that their investment will be consistently valued.