Business Model
Baxter Capital Group, LLC:
A Tax-Advantaged, High-Yield Multi-Family Real Estate Fund
Baxter Capital Group, LLC is a private real estate investment company specializing in undervalued multifamily properties, with a current focus on New Hampshire and Iowa. The firm operates through a Managed Fund structure targeted at accredited or qualified investors. Its model delivers passive income, high-yield returns, and significant tax advantages, all with a unique emphasis on rapid capital return and downside protection. At the core of this approach is a proven operator with a track record managing over 320 rental units, and a Managed Fund structure that ensures passive income, aligned incentives, and long-term investor benefits.
The Four Pillars of the Baxter Capital Investment Model
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1. Cashflowing Properties & 10–15% Cash-on-Cash Returns
Investors in the Fund offered by Baxter Capital Group LLC begins earning monthly cashflow very shortly upon investing (typically within 1-3 months). The properties purchased by the Fund are then stabalized and underwritten to yield 10–15% annualized Cash-on-Cash (CoC) return. This consistent monthly rental income is distributed on a pro-rata basis relative to each investor’s ownership stake in the Fund (i.e. based on their number of units purchased), and monthly distributions continue both before and after refinancing. This makes the investment truly passive and income-generating from inception.
2. 100% Return of Capital Within 24 Months or Less
What truly sets Baxter Capital Group, LLC apart is its commitment to provide full return of capital to all investors of the Fund within 24 months or less, and often much sooner (some projects have returned principal as quickly as 12 months). This is achieved through strategic refinancing of the assets once significant value has been created (typically via rent increases, property improvements, and/or operational efficiencies). Upon refinancing, the investor receives their entire original investment back, yet continues to receive monthly profit distributions indefinitely from the Fund.
At that point, the return on capital ( ‘Cash-on-Cash Return’) becomes infinite because the investor is earning a consistent passive income but also has received ALL their original capital back.
3. No Additional Capital Calls or Surprise Expenses
Investors enjoy true passivity with zero expectation of future capital calls! All risk, operational overhead, and unforeseen costs are absorbed by the sponsor, Baxter Capital Group LLC, which is one reason the General Partner (“GP”) receives a 40% of stake while investors keep the remaining 60%. This alignment of interests ensures that the Fund Operator has skin in the game and strong incentives to drive successful execution, refinancing, and returns without burdening investors with future funding needs.
4. Accelerated Depreciation for Tax-Free Passive Income
Baxter Capital Group, LLC leverages cost segregation studies and bonus depreciation to deliver significant tax benefits to investors. By front-loading depreciation deductions in the early years of ownership, investors receive large “paper losses” on their K-1 tax statements. This often results in tax-free cashflow for the first 4–6 years of the investment, or the option to offset passive income (or even active income, under certain IRS guidelines) from other sources.
This tax treatment means that an investor earning a 12-15% return from Baxter Capital Group LLC may need to find a 20-25%+ return in a taxable investment elsewhere to achieve the same after-tax benefit. The result: not just high returns, but highly efficient returns.
Why Baxter Capital Is Different
The firm’s operational model includes vertically integrated management. Baxter’s in-house management arm operates at cost or even as a loss leader, allowing for faster stabilization, lower expenses, and higher investor IRRs. Unlike many syndicators who outsource property management, Baxter keeps it internal, ensuring tighter control and better performance.
Additionally, Baxter Capital Group LLC focuses on off-market deals or heavily negotiated acquisitions. These opportunities are ones even seasoned investors might not be able to secure. This gives the fund access to properties with below-market pricing and above-market upside, enhancing the velocity of appreciation and refinance timelines.
Deal Structure and Capital Raise
Each deal is structured as a separate Limited Liability Company (LLC) managed within the Managed Fund, pooling investor capital for targeted property acquisitions. Investors receive equity in proportion to their contribution and participate fully in both cashflow and upside. As of this offering, Baxter Capital has already raised $1.5M and seeks to raise another $1.5M by mid-September 2025 to complete the current acquisition round. The offering includes full access to pro forma projections and historical track record data, including realized IRRs ranging from 97% to over 400% across prior refinanced or exited deals.
Executive Summary:
Baxter Capital Group offers a compelling investment vehicle for those seeking:
- Immediate, passive monthly cashflow;
- Full return of capital in under 24 months;
- Ongoing profit participation after principal is returned;
- Powerful tax deferral through accelerated depreciation;
- No further capital obligations and low downside risk
For investors seeking a safe, repeatable, and tax-efficient entry point into multifamily real estate, with upside potential that outperforms most comparable investments, Baxter Capital Group LLC delivers a model as lucrative as it is disciplined.
For inquiries or a copy of prior pro forma(s) and or a track record document, contact: