REAL Interest has arrived!
Interest rates on bank accounts, CD’s, Money Markets, and Bonds are extremely low, and this has caused many of us to look to other traditionally “safe” investments for greater rates of return. At REAL Interest Fund LLC, we believe that we have found that investment alternative. The drop in cost of rental real estate properties combined with the rise in rents has created an opportunity in real estate, which will support the preferred 4% return. REAL Interest Fund LLC is a limited liability company organized in New Jersey that was established to take advantage of the opportunities available in the rental real estate market in order to consistently give its owners a 4% predictable return, while shielding them from the risk of capital losses.
Why rental real estate?
There are several principal reasons why rental real estate is a particularly good investment at this time, and has very good prospects going forward. First, housing prices have been falling over the last several years, which has lowered the entry level purchase price of rental real estate. Second, the new stricter standards for mortgage lending have resulted in fewer people being qualified to purchase a home or condo. Third, due to the poor economy and higher unemployment, there is less new construction. Fourth, the greater demand for rental real estate (in particular apartment style condominiums) and the fewer units available have resulted in increasing rents.
About the Management Owner
Michael Porfido is the founder and Management Owner of REAL Interest Fund LLC. He has 24 years of executive experience in the business world, and has personally invested in rental real estate all during those 24 years. Michael has recently dedicated himself to take advantage of the lower prices of rental real estate and the increasing rents for these properties. With REAL Interest Fund LLC, Michael has come up with a way to further take advantage of the rental real estate opportunity and offer a way for others to get better than average preferred return.
Why investing in Mercer, Middlesex and Burlington Counties New Jersey?
This area has major train hubs that can easily connect commuters with the New York and Philadelphia metropolitan and is in proximity to the many employers in the Route 1 and I 95 corridors. This has historically created a strong demand for rental housing. It is also the area where Michael Porfido has lived and maintained real estate investments since 1996.
What if a large builder builds new condos or apartment buildings to absorb this excess demand?
There have been new apartment building built in the area, and there is a large project underway at the Hamilton New Jersey train station. The rents from these units and other new building rents are estimated to be $2,200 per month for a 2 bedroom 2 bath unit, and $1,800/month for a 1 bedroom 1 bath. REAL Interest Fund will purchase 2 bedroom 2 bath rental units that typically produce rents in a range of $1350-1500 per month. REAL Interest Fund believes that the properties it purchases are in a different market than these new units, and therefore creates an opportunity. You cannot build a 20 year old apartment or condo.
Is this a safe investment?
No investment is 100% free from risk. A Preferred Ownership interest in REAL Interest Fund LLC, however, is designed to minimize risk through the following investment features: (i) The priority of the Preferred Member’s return, which is paid before any management fee; (ii) REAL Interest Fund only buys real property for cash, no mortgage financing; (iii) REAL Interest Fund only purchases 2 bedroom 2 bathroom condos, believed to the most desirable rental real estate; (iv) REAL Interest Fund only purchases condominiums in Mercer, Middlesex and Burlington counties New Jersey, strong and stable real estate markets in this economy; (v) Michael Porfido’s familiarity with the Mercer, Middlesex and Burlington county rental real estate market; and (vi) Michael Porfido has established a relationship with real estate brokers and other professionals and tradesman to reduce the time it takes rent real property after it is purchased.
How can I invest?
For more information on how to get started you can email or call REAL Interest Fund LLC at mporfido@realinterestfund.com, 609-429-0909.
