As your trusted navigator in the world of real estate investment, Admiral Realty Capital is here to locate the opportunity, calculate the prospect and present optimized results by combining the solid structure of debt financing with the dynamism of collective funding.
Bringing together accredited investors with high-profile projects, conducted by professional developers.
With an excellent track record of delivering competitive and healthy returns to local and international investors for over a decade, our aim at Admiral Realty Capital is to fill a particular niche in the development finance eco-system; by generating a powerful mechanism, that benefit both professional commercial borrowers and independent investors who acknowledge the value of contributing to the making of living spaces.
In order to provide investors with opportunities to directly enjoy higher returns on their secured investment, our private placements apply a sophisticated yet straight-forward methodology to put savings to work in a meaningful way.
Collective Lending through Debt Financing: An Omni-Beneficial Strategy
Admiral real estate funds’ business strategy combines the conservatism of the debt financing methodology with the practicality and efficiency of state-of-the-art online collective financing platforms in order to optimize the return-on-investment rates, developers’ capital use and the duration of loan terms – resulting in win-win structures that benefit the lender and the borrower.
Our collective lending strategy is different than equity financing method on which most crowdfunding offerings are based. Different than the countless smaller-scale deals in the crowdfunding space, which put investors’ money at uncontrolled risk, our funds operate like a bank. The members of our collective lending entity, instead of owning a stake in the construction project itself, own units of membership interests in a single asset limited liability company, (LLC) that lends construction capital to the developer of the targeted project. The funds collected in the LLC are backed by a commercial real estate loan that is secured by a first position security interest in the property of the project.
A debt structure is much safer and predictable compared to an equity investment deal, as it requires a specific amount of money to be repaid over a defined term by executed contacts underwritten by legal and real estate finance experts. At the end of the loan term, all investors earn a profit based on the targeted return rate and the units of membership interests they hold. Structuring the deal with an entity not only protects the investors from liability but also helps to streamline distributions and reporting from the borrower.
An allocation of funds into real estate is essential to the success every portfolio.
Why consider investing in real estate securities?
- Income levels on real estate securities have historically been higher than stocks, investment grade bonds, CDs and money market funds.
- The performance of real estate securities has had very low correlation to that of the broad stock market and other asset classes.
- Real estate securities have historically offered very good and stable yields. Income generation is an important part of a well-diversified portfolio, because over the long run, dividends and interest can comprise a substantial portion of the total return of most investment portfolios.
- Real estate securities have offered competitive long-term total returns.
- Commercial real estate development has historically produced relatively higher returns in comparison to other fixed income and real estate products:
*FTSE NAREIT U.S. Real Estate Equity REITs and represents total return data, with full reinvestment of dividends. Stock Market rates reflect the S&P 500 total return data obtained from CBOE. U.S. Bond index is from the Barclays U.S. Aggregate Bond Index. Real estate return data should not be used to estimate the return offered by Admiral real estate funds.
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