Questions & Answers

The Equity Fund grows your money by building and selling new homes in North Carolina, and is open to new Members now. The High-Yield Fund earns fixed income from real estate loans and is currently paused to new capital (waitlist open). Many investors like to diversify across both.

The Equity Fund gives accredited investors equity in new-construction housing. We provide the capital to get projects started; experienced local builders handle construction. The fund earns by owning a share of each project and sharing in the profit when homes sell.

No. It is an open-ended pool fund. Your capital participates across all the projects in the fund, which diversifies your exposure rather than betting on a single build.

Yes. We work only with accredited investors, in line with SEC rules for a 506(c) offering. That generally means income over $200,000 a year ($300,000 with a spouse), or a net worth over $1 million, not counting your home.

$75,000. In the Equity Fund, your preferred return rises with your commitment: $75,000+ earns 6%, $125,000+ earns 7%, and $250,000+ earns 8%. Tiers are cumulative — when your total crosses a threshold, your whole investment earns the higher rate going forward (not retroactively).*

Yes. You can invest with a self-directed IRA or Roth IRA. We work with major custodians (such as Directed IRA, Inspira, and Equity Trust) and are happy to point you to ones we have worked with.

Answer a few quick questions on our Book a Call page and pick a time. From there you complete a subscription agreement, verify your accredited status, and commit capital — which is called as projects are funded.

The Equity Fund targets an annual return of 12%–18%, depending on your class, from a mix of preferred return and profit share. These are targets, not guarantees — actual results depend on project outcomes.*

It is a return owed to you before the Manager earns any profit share. It is cumulative — if part is not paid in a given year, it carries forward until it is — and it does not compound. A preferred return is a payment priority, not a promise of payment.

In order: first your capital is returned, then your preferred return is paid, then additional profit is shared between Members and the Manager by class. Once Members reach a 20% annual return (IRR), any further profit is split 50/50. The full waterfall is in the Operating Agreement.

Quarterly. The High-Yield (income) Fund has paid quarterly distributions since Q1 2025. The Equity Fund builds a pipeline first, then uses proceeds from home sales to pay quarterly distributions — expected to begin in early 2027.*

Several guardrails: conservative underwriting, an investment committee review on every project, strict budget and draw controls, builder performance requirements, and a right of first refusal on our builders’ projects. The Manager can step in and take corrective action at the project level, and your capital is spread across multiple projects.

As with any real estate investment: market cycles (housing demand, interest rates), builder execution (delays, cost overruns), and limited liquidity while your capital is deployed. We manage these with disciplined underwriting, experienced builders, and diversification — but you should be able to bear a loss of principal.

The Manager can intervene at the project level — replace contractors, restructure financing, adjust the budget, or force a sale — to protect Member capital. Builders share in profits rather than taking fixed fees, so they do well only when Members do.

We work only with builders who have a record of delivering projects on time and on budget. Diligence includes financial review, background checks, references, and past performance. Builder partners share in profits rather than taking fixed development fees, so their outcome is tied to the Members’.

Each contribution is locked for 36 months. After that you can request a redemption; because capital may be deployed in active projects, we fulfill requests as liquidity allows and may use up to 12 months, to protect the fund and other Members.

REI Transactional Manager LLC manages the fund — sourcing and vetting builder partners, approving budgets and draws, monitoring construction, and handling reporting and compliance. The Managers also co-invest their own capital, so we succeed alongside you.

A 2% annual management fee, charged quarterly. It is calculated on contributed capital plus fund borrowings — contributed capital meaning what you have actually paid in, since capital is called as projects are funded. It is the Manager’s primary compensation, on top of the profit share it earns only after Members are paid. Full fee terms are in the Operating Agreement.

You will receive a Schedule K-1 each year. Income is allocated to your capital account per the Operating Agreement — but everyone’s tax situation differs, so check with your own advisor.

Quarterly financial reports and distributions (when available), an annual K-1, a secure investor portal, and direct access to the Fund Manager.

If the fund is wound up, the order is set in the Operating Agreement: debts and liabilities are paid, cash reserves are set aside, Member capital is returned, and any remaining profit is distributed through the waterfall.

No — it is a private fund offered under Rule 506(c). We are not a publicly registered investment company, but we are subject to federal securities laws, including accreditation verification and anti-fraud rules. Our fund counsel is Niam Law Firm.