IILIFE

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IILIFE PREFERRED CREDIT FUND

The Preferred Credit Fund is lending capital focused on operators, builders, and developers in the country with assets similar to IILIFE assets. These top-tier operators and builders share our mission to create assets that provide premium amenities and/or extraordinary lifestyle experiences. Through our strategy, we help these sponsors scale their businesses and make an impact in achieving extraordinary returns.

The Fund will invest in opportunities such as the origination and acquisition of these assets through equity and/or mortgage loans. These loans are against non-owner-occupied single-family, multifamily, and mixed-use assets. The loans are always in a Preferred Credit position, typically with a personal guarantor and significant equity invested behind the Fund’s loan. The Fund does not own real estate directly, but instead lends capital to real estate operators.

KEY FUND BENEFITS

– Quarterly and/or Annual Distributions
– Evergreen fund structure offering ongoing liquidity
– Targeted annual returns of 8-10%

Accredited investors only*

Fund Highlights

  • Open-ended, private credit real estate fund that enables the manager to make debt investments for the acquisition, repositioning, and construction of primarily assets with premium amenities designed to provide consistent double-digit returns to investors.
  • Loans are typically short-term in nature, ranging from six to 24 months. The short-term duration focus of the fund provides significant liquidity to investors and should provide protection from rising rates and inflation.
  • A thorough underwriting process that makes sure loans are only made to borrowers that have a high probability of success with the project/property by primarily lending to proven successful operators with high credit scores, ample liquidity, and personal guarantees.
FUND OVERVIEW
Fund Type
Preferred Real Estate Credit
Fund Investments
Loans and preferred equity investment backed by real estate-1st position, subordinate, mezz, note on note finance, and preferred equity primarily assets with premium amenities.
Direct/Indirect Security
Notes Secured by Equity Pledges, Mortgages and Personal Guaranties
Inception Date
Nov 2023
Fund Term
Evergreen
Distribution Frequency
Quarterly (Pref); Annual
Management Fee
2.0%
Annual Management Fee Rebate for Investments of $1M+**
0.50%
Annual Management Fee Rebate for Investments of $10M+**
1.0%
Targeted Current Distributions
10%
Preferred Return
8%
Targeted Annual Net to Investor
8% to 10%
Management Performance Fees
20% upon achieving 8% preferred return
Redemptions
180-Day Notice*
Benefits of Leverage
Yes
IRA Investment Option
Yes
Tax Shelter through Depreciation
No
QBI (199A) Deduction Eligible
Yes
Subject to UBIT
Yes
Target Fund Size
$250,000,000
Minimum Investment
$100,000
Manager Co-Investment
Minimum 2% Committed Capital
Must Be Accredited
Yes
Tax Reporting Method
K-1
Institutional Option
Yes
Reporting Frequency
Quarterly

Past performance is not a guarantee of future performance.

* Accredited Investor Definition: For an individual to be considered an accredited investor, he or she must have a net worth of at least one million U.S. dollars, not including the value of one’s primary residence or have income at least $200,000 each year for the last two years (or $300,000 together with his or her spouse if married) and have the expectation to make the same amount this year.

**Management fee rebates of .5% for >$1M investment and 1% for >$10M investment are per account, per fund, based on a minimum annual investment balance-as of Dec 31st for the 2024 calendar year; per calendar year thereafter.

Risk Disclaimer: Investing in private real estate funds and notes secured by real estate has certain inherent risks, which could result in the loss of some or all of your principal investment.

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