Frequently asked questions

Currently the Fund primarily purchases real estate in New Hampshire. However, it has recently opened up a new opporunity zone in Des Moines, Iowa. Baxter Capital Group seeks to exclusively invest in cities and counties that have relatively low vacancy rates (i.e. less than the national average), where monthly rents are relatively high, and where the ratio of stablized rents to purchase price is strong (ie. above the “one percent rule“).

Each unit of the Fund is $100,000.00. The miminum investment is one (1) unit. Investors expect to receive 100% of their capital returned within 24 months or less. 

Interest Rates: We never use “cap rate compression” during the underwriting. We leverage the current interest rate environment at all times when evaluating new deals. 

Rents: Out of an abundance of caution, our pro formas projections do not assume any increases in rental income beyond the most recent official data. We base our stabilized rent estimates on current market rents and HUD’s ‘Fair Market Rents.’ 

Conservative Pro Formas: Baxter Capital Group, LLC has been consistently under budget for 90% of all rehabs forecasted. Many of the expenses outlined in our pro formas (e.g. the apportioned rehab budget,  trash removal, etc) are extremely conservative in an attempt to be as prudent as possible with investor capital. 

Baxter Capital Group is prepared for rising inflation. This is one principal reason why we invest in hard assets. Multifamily real estate itself serves as a powerful inflation buffer: rents and property values typically rise with inflation, allowing the asset class to preserve, and often grow, purchasing power over time. 

Regarding interest rate risk: Baxter Capital Group uses fixed rate debt at the longest possible interval available (i.e 5 or 10 years) instead of variable rate debt. This significantly mitigates investment rate risk. Moreso, prevailing market forecasts suggest rates will largely remain flat, or may even decline, over the next few years, supported by signals from the Federal Reserve and economists tracking moderating inflation. In the uncommon event that rates rise, it would likely only postpone the refinancing process; importantly, monthly rental income and LP distributions from ongoing operations would remain  relatively unaffected. 

By contributing capital to the Fund, the pool of investors (“Limited Partners” or “LPs”) will receive sixty percent (60.00%) of the ownership in the underlying assets as well as the cashflow from rents they generate. Additionally, the LPs shall receive 100% of their capital back when there is a capital event, such as a refinance or sale of the asset (note: a strategic refiance within 24 months is part of the business plan.) The Fund Sponsors (“General Partners” or “GPs”) shall receive forty percent (40.00%) of the ownership in the underlying assets and cashflow.

NB: The GPs shall NOT receive a single dime from any capital event (i.e. asset sale or refinance) until all LPs have 100% of their capital returned in full. 

Unlike most Managed Funds that distribute net income to investors quarterly, our Fund distributes cashflow monthly. We will pay out all monthly distributions via ACH.