Investment Strategy for New Era Capital

1. Investment Approach: Debt-Based Security

New Era Capital’s investment strategy is centered on providing our investors with a low-risk, high-reward opportunity by structuring investments as debt instruments. This structure allows us to secure investor capital while maximizing the leverage available through senior debt financing to fund our real estate developments. Investors participate in a secured, preferred lien position that is backed by fully approved and entitled projects, effectively minimizing pre-construction risks.

2. Secure Investment Position

  • Promissory Notes & Collateral:

    Each investment is backed by a promissory note issued by the development entity, ensuring a clear legal obligation for repayment. Additionally, the lien/mortgage position on the property, after senior debt is satisfied, further secures the investment. The development entity’s assets provide the collateral for the investment, minimizing risk exposure.

  • Preferred Lien Position:

    Investors benefit from a preferred lien position, which means their investment is secured by a specific development project. This unique structure provides a direct claim on a project's asset should there be any challenges, adding a layer of protection to the investment.

3. Fixed-Term Investment Structure

  • Interest Accrual & Terms:
    Investments accrue interest over a fixed term, typically ranging from 8 to 30 months, depending on the project’s timeline. The interest rate is set to reflect the secured nature of the investment, ensuring competitive returns without undue risk.

  • Balloon Payments:
    At the end of the investment term, all capital—both principal and accrued interest—will be paid back as a lump-sum balloon payment. This structure ensures that investors receive the full return at once, simplifying the exit strategy and maximizing investor confidence.

4. Risk Mitigation & Project Execution

Our vertically integrated team plays a crucial role in ensuring the success of every project. By overseeing all aspects of the development process, from acquisition through construction to the final exit, we are able to:

  • Fully Approved & Entitled Projects:
    We target projects that have already been through the entitlement and approval process, reducing risks typically associated with zoning, permitting, and planning delays. This positions our investors in a secure environment with reduced pre-construction uncertainty.

  • Ensure Efficiency and Quality:
    The integration of our team allows us to execute projects efficiently, on time, and within budget, reducing the risk of cost overruns or construction delays.

  • Ongoing Monitoring & Reporting:
    Investors will receive regular updates on the project’s progress, from construction milestones to any changes in market conditions or timelines. This ensures transparency and builds trust throughout the investment cycle.

5. Personal Guarantees

To further protect our investors, personal guarantees are provided by the founding partners. This adds an additional layer of accountability and demonstrates our commitment to the success of every project, reinforcing our investors' confidence in the safety of their capital.

6. Exit Strategy & Repayment

  • Repayment via Balloon Payment:
    At the conclusion of the fixed term, investors will receive their full principal investment plus the accrued interest as a balloon payment. This approach ensures clarity and simplifies the exit process for all parties involved.

  • ●  Project Completion:
    Upon successful completion of the development and stabilization of the property, the project is either refinanced or sold to generate liquidity. This generates the funds required for the balloon payment and ensures a strong, predictable return for our investors.