Olson Equity Fund IV
Olson Capital Equity Fund IV is a diversified real estate fund which will primarily invest in Institutional Class hotels. The Fund’s targeted average return is 12% per year over the life of the Fund, after payment of Manager’s fees and other expenses borne by the Fund. The Fund will seek to achieve its objective by utilizing the Manager’s select investment criteria and return objectives in the acquisition, leasing and/or repositioning of undervalued or performing properties. Project investments may be individual or multiple properties and will generally consist of a diversified group of Class B and C hotel assets with 50-300 rooms and range in price from $5- $25, Million. The Fund is targeting a minimum of $1 million and up to $50 million in capital commitments from qualified investors for acquiring, repositioning, managing, operating and disposing of such assets. Although the Fund will primarily target hotel assets in the United States, the Fund may, from time to time, invest in other commercial real estate such as multi-family, office and single-family assets as well as real estate-backed investments in other markets if compelling opportunities arise. The projected term of Olson Capital Equity Fund IV will be ten (10) years from its initial closing. Olson Capital Equity Fund IV will use a combination of equity and debt financing for its acquisition of portfolio investments, provided, however, the Manager will make reasonable efforts to assure that Olson Capital Equity Fund IV’s total leverage will not exceed, in the aggregate, 80% of the value of the Fund’s assets. Olson Capital Equity Fund IV will target a portfolio of investments that seeks to provide its investors with an average rate of return of 12% net of fees and expenses. The Manager of the Fund will be Olson Capital Investments LLC, a Delaware limited liability company. The strategic direction and investment objectives of the Fund are the focus of the Manager’s principals, Amariah Olson and Obin Olson. The Brothers Olson have been investing in commercial Real Estate since the 2012. The Olson’s combined 10+ transactions in excess of $30 Million have been across multiple cities and several states including Atlanta, Charlotte, Wilmington. The Fund and the Manager seek properties year round to discover opportunities in markets overlooked by large institutions. Property profiles typically offer high returns, protecting against downside in market downturns. The Fund focuses on buying properties that offer opportunities to increase revenue, occupancy, reduce expenses, while using the Olson’s proprietary knowledge and software/underwriting systems and strategies for locating deals that have operating inefficiencies. In addition to the above criteria, the Fund focuses on investments that should provide positive cash flow upon acquisition. The Fund follows a conservative investing model where the purchase price is based on trailing 12-month financial calculations. The Olson’s have used regional banks, Fannie Mae, and commercial institutions for borrowing. The Manager prides itself on its reputation with sellers and borrowers to get deals closed. Olson Capital Investments has bought and sold real estate assets through various economic conditions and in different markets. The Fund’s goal is to continue to build wealth through real estate with well positioned acquisitions, high quality property management and strategic dispositions.
What is a "Private Placement"?
the sale of stocks, bonds, or securities directly to a private investor, rather than as part of a public offering.
How does one invest in a private placement fund?
Simple, fill out the required documents either online, or print and scan, then wire a 20% deposit to hold your position, then (when the capital is called) wire the balance. Receive monthly distributions during the hold period until the end when your principle is paid back.
Is the investment secured?
The investment is secured by cashflowing real estate. Even if the market values fluctuate, the intent is that the properties continue to pay out a dividend.
Can I invest my 401k or IRA?
Yes! You will just need to contact a custodian for the appropriate handling of funds. We would be glad to refer one to you if you get in contact with us.
What does 'preferred return' mean?
Preferred return is the first money paid after debt and expenses, before any profit split with the manager. This is the most secure equity position to be in because the likelihood of receiving monthly dividend payments is very high.
What types of hotels does the fund invest in?
We prefer, but are not limited to, limited service, brand name, franchise hotels.
When do I get my principle back?
After the "Hold Period" the principle and any accrued interest is due.
How does the internal return work?
Any profits above the preferred return such as appreciation and mortgage balance paydown, are split per the offering documents at the end of the hold period.