Exit Strategy
Rowland Capital Partners specializes in providing investors with multifaceted returns through our portfolio of single-family homes; acquired debt-free and located in high demand rental markets. While the Primary Exit Option is to disposition assets to a Continuation Fund, secondary exit options remain available to the Manager as well. This approach ensures that the Manager can adapt to market conditions and pursue the best possible returns for investors.
PRIMARY STRATEGY
Continuation Fund
A Continuation Fund allows investors the option to fully exit or maintain their stake in the portfolio. Under this strategy, the portfolio is transferred into a new fund, extending the investment horizon and allowing for additional time to capture value from the rental income, appreciation, and depreciation benefits. An individual portfolio may be combined with other similar portfolios in type and performance and/or new assets added in the Continuation Fund. Investors benefit from:
Longer-term appreciation
By holding onto the properties, the fund capitalizes on real estate market growth, potentially increasing asset value over time.
Continued income stream
Rental income remains a steady source of returns for investors.
Tax-efficient benefits
Investors can continue to leverage depreciation on the properties, reducing taxable income.
Flexibility
Investors can choose to either remain in the continuation fund or fully exit and cash out at the current valuation.
SECONDARY STRATEGIES
External Portfolio Sale
An external portfolio sale involves selling the entire portfolio of homes to an institutional buyer or large investor. This strategy provides:
Immediate liquidity
Investors can receive their final return quickly with a one-time sale.
Market-driven valuation
The sale price will reflect the current real estate market conditions, capturing any appreciation in asset value.
Efficient process
A single transaction reduces complexity, minimizing administrative efforts and potential costs.
Staggered Individual or Group Sales
In this strategy, single-family homes are sold either individually or in small groups over time. This approach offers a balance between liquidity and market timing:
Flexible exit timing
By staggering sales, the fund can choose optimal moments to sell based on market conditions, potentially enhancing returns.
Liquidity on investor terms
Investors may receive proceeds gradually, which can be beneficial for those who want periodic liquidity rather than a lump sum.
Maximizing value per property
Individual sales allow for tailored marketing strategies to attract retail buyers or smaller investors, who may be willing to pay premiums compared to institutional buyers.