What makes an ideal CRE investment

by Robert Kantor

Today, we formally announced the launch of Headwater Capital, Inc. and the closing of our flagship property investment, Olio Pavilion, LLC at $3.5 million. Headwater secured $1,725,000 from investors and arranged financing from A 10 Capital for the balance of the Olio purchase price.

The Olio property exemplifies the attributes of an ideal Headwater Capital investment — projected to offer our investing partners an average annual cash yield more than 7.0 percent per annum over a 10-year investment period, with a total IRR of 10 percent and a very low risk profile.

I’ve been involved in real estate investment and development for 43 years—since the early- to mid-1970s, and I’ve learned a fair amount about the use of real estate as part of an investment strategy to provide cash flow. I’ve learned about the risk involved in various aspects of real estate and what I would invest in or recommend people invest in to reduce risk while still providing a stable cash flow.

I have lived through cycles—good cycles and bad cycles. And one of the biggest enemies of a bad cycle is having borrowed too much money. So I put these elements together for some friends with the idea of helping them invest safely and securely in assets that are going to be valuable for a really long time while generating enough cash flow to make a difference in people’s lives. And it has grown into a business.

Read more about it at: Eye on Sun Valley

Our press release is here

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