North Capital Debuts REITless Impact Income Strategies
The investment vehicle produces positive social impact in communities as well as consistent cash flow.
North Capital Investment Technology Inc. recently debuted a new investment vehicle, REITless Impact Income Strategies, which focuses on lending and strategic debt investments to mostly single- and multifamily development as well as redevelopment projects that produce positive social impact.
“We will produce positive impact through the saving and improving of existing housing stock, rather than tearing down and rebuilding; utilizing low flow plumbing fixtures, efficient appliances/ insulation and weatherproofing to reduce a property’s impact on the environment plus providing affordable housing for low-income residents and generating local employment,” says Jim Dowd, founder of North Capital.
Research suggests that improvements in housing stock drive collateral improvements through investments, which makes housing-focus initiatives particularly impactful.
“Our current investment parameters has us strictly within the United States and do not restrict us from investing in anywhere within its borders. With this being said, we prefer to make smaller investments ($50,000 – $250,000), which makes investing on either coast more difficult,” Dowd says. The firm is targeting Salt Lake City, Colorado Springs, Phoenix, Albuquerque, Omaha, Milwaukee.
REITless plans to focus on hard secured money lending for rehabilitation and selling/refinancing strategies (fix-and-flip). Their preferred loans are on single family and multifamily properties priced below $250,000.
“We did not create REITless to provide concessionary returns. We believe that there is high demand for our product from small developers, who are locked out of the institutional market,” Dowd tells GlobeSt.com.
Unlike most REITs, there are no upfront selling commissions paid by investors. Any compensation sharing from this offering will be paid by the manager from its annual 1% management fee. Dowd expects to distribute the REIT directly and through fee-based investment advisory channels, so commissions do not factor into the strategy.
REITless membership interests are available to both accredited investors and non-accredited investors who meet the qualifications of the offering. Each opportunity considered for investment by the REIT will be evaluated and vetted by North Capital’s research committee.