For Passive Investors | For RE Brokers and Landlords

Real estate investment opportunities:

[v] rigorously vetted,
[v] inflation hedged,
[v] assets backed.

Background photo by The GTA Journal

Offerings for passive investors
For advisors and accredited individual investors ^[1]

Paperfree is a fully-integrated real estate investment platform primarily focused on growth zip codes located across US markets.

Investment Products

Multifamily B Apartments, Value Add

Strategy goal
The main goal is capital preservation balanced with attractive risk-adjusted returns.

Features
1) Cash flow Inherent.
2) Investment backed by real estate.
3) Multiple IRR drivers: the margin of safety recapture, forced value growth, capital appreciation.
4) Sponsor Entrepreneur. Each value add investment is unique and we believe that the sponsor's entrepreneurial skills are crucial for a successful outcome.

Target IRR
min 12%

Investment principles

How it works
step 1: Opportunity identification
We are highly selective in the opportunities we look at. Our detailed 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.

step 3: Acquisition
We acquire mispriced and/or 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 of:
4.1.: operating efficiencies,
4.2.: lease-up vacancy,
4.3.: asset strategic improvements.

step 5: Disposition
We re-finance or sell property with a profit based on the new increased value.
Where
Profit=EQUITY D - EQUITY A - Debt service - Capex

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Track Record

Real-time investments and returns

Offering #MF_78

Strategy: value add
Product 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
Product 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%

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[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.

Diversification
Investments are diversified by asset type, market, and timing to reduce exposure to movement in any single market and minimize volatility.

paperfree

System
Technology that automates routine and frees up time for better decisions.

paperfree

Deals
Our infrastructure allows us to support an ongoing deals flow.

paperfree

Insights.

Investment Manager Spotlight.

Real Estate Investment Principles by Billionaire Bruce Flatt

More in Real Estate Investment Magazine.

Beginners. Advanced.

LEARN MORE

For Brokers and Landlords

Why sell to us. Benefits.

1. Tax protection.
We can exchange a seller's equity into LLC units to maximize the seller's bottom line.
2. Timing.
Exceptional record for closing in 30-45 days.

Our acquisition criteria.

A. CORE OPPORTUNITY

1. Capitalization Rate: 7.3% - 14%
2. Deal size: $10MM-$60MM

B. VALUE ADD OPPORTUNITY

We seek unaddressed opportunities including vacancy, capital improvements, rollover risk, etc. Properties that can be elevated to a higher level.
1. Deal size: $3MM - $50MM
2. NOI
Proforma 2y NOI = Acquisition NOI *1.25
3. CAPEX
Proforma 2y CAPEX < 20% of the purchase price.
4. Cash flow
a. Cash flow inherent: at acquisition or in a short future.
b. Preferable: properties that can support debt at acquisition. DSCR > 1.05. DSCR < 1 under select circumstances.

STRATEGY AGNOSTIC CRITERIA

1. Product type.
1.1. Mixed-use.
a. Storefront office.
b. Storefront residential.
1.2. Multifamily.
100-500 units.
1.3. Manufactured home communities.
> 30 homes.
1.4. Industrial.
1.5. Office.
size>10 000 sqft.
1.6. Flex / Business Park.
1.7. Retail
a. Urban strip centers.
b. Convenience Store.
c. Quick Service.
d. Service Station.
1.8. Single Family Residential (limited markets).
(Re)built to rent.

2. Market.
a. Location
Third and fourth-tier markets.
Preferable states: AZ, CO, TX, GA, NC, FL, UT.
b. Neighborhoods and/or:
The population growth > 0.2% by 2026.
Employment and household income growth.
We like to invest in irreplaceable assets in submarkets with diversified and growing economies, positive population growth, and educated talent base, reduced regulations, lower taxes, and less government intervention.

3. Tenant base structure.
a. Multi tenant.
b. Anchored or unanchored.

4. Asset Class.
from B minus to A.

5. Investment structure.
Single property or portfolio.

Contact us

online meeting: https://calendly.com/paperfree
offline meeting: 265 Greenwich Ave, Greenwich, CT 06830
by mail: PO BOX 7873 Greenwich CT 06836
by email: [email protected]