For investors
Paperfree is the first quant-driven real estate investment platform.
Background photo by The GTA Journal
Paperfree Real Estate | VIVA EQUITY
VIVA is a value investing, value add strategy sponsored by Paperfree.
Goal: capital preservation balanced with attractive risk-adjusted returns.
Features
1) Safety. Investments are backed by tangible assets.
2) IRR with multiple drivers. The margin of safety recapture, forced value growth, capital appreciation.
3) Sponsor Entrepreneur. We believe that each active investment is a start-up, and entrepreneurial skill is crucial for a successful outcome.
4) Diversification. Investments are diversified by asset type, market, and timing.
Target IRR
min 12%
How it works
step 1: Opportunity identification.
We are highly selective in the opportunities we look at. Our broad acquisition criteria and robust infrastructure enable us to support ongoing deals flow.
step 2: In-depth analysis.
Our investment and acquisition team powered by progressive operations enables us to perform due diligence on each opportunity: quant intrinsic value, proforma value.
step 3: Acquisition
We acquire mispriced and underperforming income streams based on intrinsic value rather than the market's perception of value.
step 4: Business plan execution.
We boost Net Operating Income (NOI) and compress Capitalization rate (CAP) through reinvigorating cross-business performance:
4.1.: operating efficiencies,
4.2.: lease-up vacancy,
4.3.: real estate asset strategic improvements in order to improve its place in the marketplace.
step 4: Disposition
We exit based on increased value through re-financing or selling.
Acquisition Criteria
We seek unaddressed opportunities including vacancy, capital improvements, rollover risk, etc.
1. Asset quality. Class from B- to A.
2. Investment structure. Single property or portfolio.
3. Investment size. $3MM - $50MM.
4. Properties that can be elevated to a higher level. Forced value growth, 24 months >25%. Proforma NOI *1.25
5. CAPEX < 20% of the purchase price.
5. Properties that can support debt at acquisition. DSCR > 1.05.
6. Asset type.
6.1. retail - performing centers with a strong anchor tenant, quick-service restaurants, single-tenant net lease properties.
6.2. multifamily - class A and B properties (100-300 units preferred),
6.3. manufactured home communities (> 30 homes),
6.4. office - class A, B, C properties (>10 000 sqft)
7. Market.
7.1. Geographic. USA, excluded states: CA, NJ, NY.
7.2. Local population. Growth in the next 5 years > 2%.
7.3. Economy. Favorable tax model, strong employment drivers.
8. Discount on replacement cost > 25%.
VIVA is a value investing, value add strategy sponsored by Paperfree.
Goal: capital preservation balanced with attractive risk-adjusted returns.
Features
1) Safety. Investments are backed by tangible assets.
2) IRR with multiple drivers. The margin of safety recapture, forced value growth, capital appreciation.
3) Sponsor Entrepreneur. We believe that each active investment is a start-up, and entrepreneurial skill is crucial for a successful outcome.
4) Diversification. Investments are diversified by asset type, market, and timing.
Target IRR
min 12%
How it works
step 1: Opportunity identification.
We are highly selective in the opportunities we look at. Our broad acquisition criteria and robust infrastructure enable us to support ongoing deals flow.
step 2: In-depth analysis.
Our investment and acquisition team powered by progressive operations enables us to perform due diligence on each opportunity: quant intrinsic value, proforma value.
step 3: Acquisition
We acquire mispriced and underperforming income streams based on intrinsic value rather than the market's perception of value.
step 4: Business plan execution.
We boost Net Operating Income (NOI) and compress Capitalization rate (CAP) through reinvigorating cross-business performance:
4.1.: operating efficiencies,
4.2.: lease-up vacancy,
4.3.: real estate asset strategic improvements in order to improve its place in the marketplace.
step 4: Disposition
We exit based on increased value through re-financing or selling.
Acquisition Criteria
We seek unaddressed opportunities including vacancy, capital improvements, rollover risk, etc.
1. Asset quality. Class from B- to A.
2. Investment structure. Single property or portfolio.
3. Investment size. $3MM - $50MM.
4. Properties that can be elevated to a higher level. Forced value growth, 24 months >25%. Proforma NOI *1.25
5. CAPEX < 20% of the purchase price.
5. Properties that can support debt at acquisition. DSCR > 1.05.
6. Asset type.
6.1. retail - performing centers with a strong anchor tenant, quick-service restaurants, single-tenant net lease properties.
6.2. multifamily - class A and B properties (100-300 units preferred),
6.3. manufactured home communities (> 30 homes),
6.4. office - class A, B, C properties (>10 000 sqft)
7. Market.
7.1. Geographic. USA, excluded states: CA, NJ, NY.
7.2. Local population. Growth in the next 5 years > 2%.
7.3. Economy. Favorable tax model, strong employment drivers.
8. Discount on replacement cost > 25%.
.jpg)
Track Record
Offering #MF_78
Strategy: value - add
Asset type: multi-family
Risk profile: medium
Year Net Cash Flow
0 -$170,000.00 Initial equity investment
1 $0.00
2 $0.00
3 $1,260,000.00 Upcoming exit
Total Cash Distributions: $1,260,000.00
Total Equity Invested: $170,000.00
Equity Multiple: 8.4x
IRR, internal rate of return, levered: 103.3%
Strategy: value - add
Asset type: multi-family
Risk profile: medium
Year Net Cash Flow
0 -$170,000.00 Initial equity investment
1 $0.00
2 $0.00
3 $1,260,000.00 Upcoming exit
Total Cash Distributions: $1,260,000.00
Total Equity Invested: $170,000.00
Equity Multiple: 8.4x
IRR, internal rate of return, levered: 103.3%
Offering #SF_34
Strategy: value - add
Asset type: single-family
Risk profile: low
Year Net Cash Flow
0 -$50,000.00 Initial equity investment
1 $0.00
2 $70,000.00 Exit
Total Cash Distributions: $70,000.00
Total Equity Invested: $50,000.00
Equity Multiple: 1.4x
IRR, internal rate of return, levered: 18.3%
Strategy: value - add
Asset type: single-family
Risk profile: low
Year Net Cash Flow
0 -$50,000.00 Initial equity investment
1 $0.00
2 $70,000.00 Exit
Total Cash Distributions: $70,000.00
Total Equity Invested: $50,000.00
Equity Multiple: 1.4x
IRR, internal rate of return, levered: 18.3%
[1] Accredited Investors must meet one of these guidelines: Net worth exceeding $1 Million (excluding primary residence) or individual annual income over $200,000 or Joint annual income over $300,000.
[2] The intrinsic value of the real estate is therefore defined as the net present value (NPV) of all future net cash flows which are foregone by buying a piece of real estate instead of renting it in perpetuity. These cash flows would include rent, inflation, maintenance, and property taxes. This calculation can be done using the Gordon model.
[3] The margin of safety is the difference between the intrinsic value of an asset and its market price.
Why invest with us
We believe in active management and value investment.
Paperfree develops unique alternative/real estate investment products that provide attractive risk-adjusted returns while protecting investor capital.
We strive to create investment opportunities with superior management teams, future-proof asset classes, and distinct product structures that can provide durable income or/and growth potential, reduced volatility, and low correlation to traditional markets.
We believe in active management and value investment.
Paperfree develops unique alternative/real estate investment products that provide attractive risk-adjusted returns while protecting investor capital.
We strive to create investment opportunities with superior management teams, future-proof asset classes, and distinct product structures that can provide durable income or/and growth potential, reduced volatility, and low correlation to traditional markets.
Diversification
Investments diversified by real estate sector, location, and timing to reduce exposure to movement in any single market and minimizing volatility.
Investments diversified by real estate sector, location, and timing to reduce exposure to movement in any single market and minimizing volatility.
System
Technology that automates routine and frees up time for better decisions.
Deals
Our infrastructure allows us to support an ongoing deals flow.
Insights.
Investment Manager Spotlight.
.jpg)
Real Estate Investment Principles by Billionaire Bruce Flatt
Real Estate Investment Magazine.
Beginners. Advanced.- PUBLISH CONTENT
- Real Estate Investment Principles by Bruce Flatt the CEO of Brookfield Asset Management
- Real Estate Investing Basics: 2 Ways of Real Estate Investment
- Back to Basics: Understanding Real Estate
- 5 Best Ways to Invest in Real Estate For Starters
- 7 Ways On How To Make Money In Real Estate
- 6 Factors To Look For Before Investing in Real Estate
- Return on Investment (ROI) In Real Estate & Its Calculation
- How Much Money To Invest in Real Estate
- Real Estate Business: 7 Challenges You Need To Know Before You Start
- Real Estate Investment Trust (REIT)
- Introduction of Real Estate Investment Trusts (REITs)
- Direct Real Estate Investment Vs REITs - Which One To Choose?
- REITS, Real Estate Funds & Real Estate Mutual Funds: The Comparison
- Equity Vs Mortgage Real Estate Investment Trust
- Assessing A Real Estate Investment Trust (FFO and AFFO)
- Real Estate Investment Trust (REIT) and Its Risks
- Counties by population based on United States Census
- Trump's tax report and tax avoidance leveraging Real Estate business
- Demographic trends in The United States
LEARN MORE