Investors | Sellers

Paperfree is the first quant-driven real estate investment platform.

Background photo by The GTA Journal

Our offerings
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.

Value Add Essential Real Estate Strategy

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

Features
1) Investment backed by tangible assets.
2) Multiple IRR drivers: the margin of safety recapture, forced value growth, capital appreciation.
3) 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

Become LP - Click to Apply

Track Record

Real-time investments and returns

Updated weekly.

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

Real Estate Investment Magazine.

Beginners. Advanced.

LEARN MORE

For Sellers

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.

We seek unaddressed opportunities including vacancy, capital improvements, rollover risk, etc. Properties that can be elevated to a higher level.

1. Asset Class. from B - to A.
2. Investment structure. Single property or portfolio.
3. Deal size. $3MM - $50MM.
4. Proforma NOI
a. 24 months Proforma NOI = Acquisition NOI *1.25
5. Proforma CAPEX
a. 24 months Proforma CPEX < 20% of the purchase price.
6. 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.
7. Product type.
7.1. Mixed-Use.
a. Storefront office.
b. Storefront residential.
7.2. Multifamily.
a. 100-300 units.
7.3. Manufactured home communities.
a. > 30 homes.
7.4. Office.
a. size>10 000 sqft.
b. usage: Office Medical and essential services.
7.5. Flex / Business Park.
7.6. Retail
a. Urban strip centers.
b. Convenience Store.
c. Day Care Center.
d. Quick Service.
e. Service Station.
7.7. Single Family Residential.
a. Rebuilt to rent.
8. Tenants base structure.
a. Multi tenant.
b. Anchored or unanchored.
c. Essential service providers.
9. Market.
Properties in Third and Fourth-tier Cities Growth Zip Codes as demonstrated by (and/or)
a. Demographics. The population growth > 0.2% by 2026.
b. Employment and household income growth.
c. Location by state. Preferable: AZ, CO, TX, GA, NC, FL, UT.