Scarlet Ibis strives to renovate residential properties throughout the east coast. After gaining a foothold in Hampton Roads VA, we will move to other mid-size markets in North Carolina, South Carolina, and Georgia. When the opportunity arises, we will also renovate commercial properties and rentals. The aim is to create a brand that represents excellence, provides quality homes and spaces for buyers, and makes a healthy and solid return for investors while being socially responsible and good citizens. Our hope is to gain more capital to grow and to provide investment opportunities to communities that do not readily have access to high yielding investment opportunities. To that end, Scarlet Ibis will be launching the MPK Real Estate Development Managed Fund. Through this fund, investments will be pooled to purchase properties that can be renovated for a higher return than one would receive from a bank account or CD.
Tier One
To join Tier One, investors will invest in increments of $500, with a minimum investment of $2,500 and a maximum investment of $9,500. Investors will receive an annualized 8.50% return. Every six months, investors may roll over the principal and interest, receive a distribution of the principal and interest, or receive a distribution of the interest with the principal rolling over. For example, an investment of $2,500 would yield you $106.25 in six months or $212.50 in one year.
Tier Two
To join Tier Two, investors will make a minimum investment of $10,000 into Scarlet Ibis’s MPK Real Estate Development Management Fund. Investments will be pooled together to purchase real estate. 50% of the profits will be distributed based on the amount invested as a percentage of the total investment pool ($180,000). Investors will be required to hold the principal in the Fund for a period of two years before withdrawal. Distributions of the profits will be made annually but the investor may elect to have them rolled into another Fund. Investments from the Fund will be used to renovate at least two properties per year. For example, if your $10,000 is 5.56% of the total investment pool ($180,000), and the model detailed on page six is norm, the investor will earn $1,250 after year one and $2,500 total after year two. That is a return of 13% annualized.
Tier Three
To join Tier Three, investors will make a minimum investment of $50,000 into Scarlet Ibis’s MPK Real Estate Development Management Fund. All terms are similar to Tier Two; however, the investor will receive more detailed information and input will be solicited during the procurement, design, and the closing process. A $50,000 investment would represent 27.78% of the investment pool ($180,000) and the investor will earn $6,250 in year one and $12,500 total after year two.