INVESTMENT THESIS

Globally, the rental market needs 7M short- and medium-term housing and 3M US long term rentals within 5 years. Today capacity is only 4M new housing are planned to built in 5 years.

Breakthrough Investments will build or acquire at least 10 properties in the next 5 years in emerging markets domestically or internationally, meeting the needs of vacationer’s, travelers, digital nomads, snowbirds and expats.

  • Short Term: Cultural Experiences – 1 day to 4 weeks. Adventure seeker casual vacationers,
  • Medium Term: Try before you Buy – 3 to 6 Months – Business traveler, digital nomads, expat, snowbird,
  • Long Term: earn income from origin
  • country while living in lower cost oasis -12 months plus– Expat, Digital Nomads,

Risk:

Investing in personal real estate in emerging markets can be a high-risk, high-reward proposition.  Risk include political instability, economic instability, legal and regulatory risks, lack of infrastructure, and lack of transparency.

INVESTMENT CRITERIA

  • Destination locations Weather between 71 to 91 degrees, Beach, Tropical, Authentic local cultural experiences
  • Diversification Country, Geographical location, Expats, Business travelers, vacationers
  • 12 to 14% IRR Underwrite property with at least 11% Cash on cash.
  • >53% occupancy levels Short- and medium-term rental occupancy levels are at least 53%. Long term rental occupancy level is at 80%
  • < 4 hours flight from their port of Origin If travelers are in North America, we will have locations for them. If port of origin is Europe, Africa, Middle East, We have luxury stay.
  • > $260+ ADR If property earns $260 per night, we are aggressive buying it. Stable long-term rentals earn $1700 to $3500 per month
  • Under $620K homes The data supports sub $620K with 3bdr, 2+ baths homes exceeds our 11% cash on Cash target various targeted locations
  • Growth Incentives Foreign investor ownership Landlord friendly Retirees and foreign business incentives

FUND TERMS

GENERAL PARTNER NAME: Breakthrough Investments LLC.

LIMITED PARTNERSHIP NAME: Breakthrough Real Estate Fund 1. as a Reg 506(c)

Target Capital Raise: $5M

MINIMUM COMMITMENT: $50,000

COMMITMENT PERIOD: 5 years

TARGET RETURN: 12% to 14% IRR post capital call

TERM: 5 years

OFFERING PERIOD: 1  year

MANAGEMENT FEE: 2%

PREFERENTIAL RETURN: 8%

CATCH-UP: 0%

CARRIED INTEREST: 20%

INVESTMENT PROCESS

Investor challenges in emerging real estate markets

Invest and stay in any location we own….

U.S.A. ~ Ohio ~ International ~ Egypt ~ Belize