Kicking off the New Year!
Welcome to the first Harbor Drive Investor update of 2020! Like you, we at Harbor Drive Holdings couldn’t be more excited to kick off a new year! Since closing on our most recent project in 4Q19, we’ve been actively underwriting and searching for the next great real estate investment opportunity to kick off the new year! We’re very grateful for all those investors who invested in our most recent project as well as all of our other real estate projects in the past.
What are the benefits of investing in a HDH opportunity?
Many investors that are interested in our business model often ask us what the benefits of investing in a Harbor Drive Holdings opportunity include. While there are many great reasons to invest in one of our opportunities, those who have participated in one or more of our past deals, love the investments for the following three main reasons:
Cash Flow: All the investors in our past and future opportunities receive distributable cash flow from the real estate operations. Each quarter, investors that participate in our deals receive cash flow from the investment proportionate to their level of ownership based on distributable cash available. Many investors use this cash flow to supplement their income while others boost their retirement account balances with the goal of early retirement.
Tax Benefits: All investors in our deals receive annual K-1s prepared by our accounting team. Because each of our investors has an equity ownership in each property, they receive depreciation and other tax benefits that come with real estate ownership. In many cases, because of the depreciation benefits investors receive, their K-1s will show investment losses at the end of a year, even though they’ve received quarterly cash flow (dividends) from distributable cash from the operations! These losses can be used by the investors against other like-investment income on an investor’s tax return. As always, we encourage all of our investors to consult with their own tax professionals for tax planning and advice.
Equity Appreciation: Perhaps one of the most exciting reasons our investors love participating in our opportunities is the equity preservation and appreciation. As we’ve discussed with many of you in the past, Harbor Drive Holdings seeks property acquisitions that provide value-add opportunities, whereby we can increase the value of a property through operations and increased NOI. We’ll cover more on value propositions and equity appreciation on a future Harbor Drive Investor post.
We would love to connect with you to learn more about your investment goals for 2020 and how we might be able to help you achieve those goals.
Whether you are looking to increase your cash-flow, looking for additional tax benefits, or want an opportunity to increase your ROI through equity appreciation, we want to help you. Call us to get started!
With a new year comes new opportunities in real estate and we will continue to keep you and all of our investors informed on upcoming investment opportunities.