Frequently Asked Questions
1. When is the first distribution?
Sterling will return 100% of the initial investment plus the interest payments once the property is re-sold. There will not be any monthly interest payments to investors during the 6-12 month flip.
2. Is there a preferred return?
No, because this is a second position debt investment offering the interest rate offered is fixed for the life of the investment in the property.
3. If the property is sold quicker than 12 months, how much interest will I earn?
Our interest payments are based on an annualized basis. For example, if the property is sold in 6 months and you originally invest $100,000 at a 9% interest rate you will be returned $4,500 plus your original investment of $100,000 for a total of $104,500.
4. What are the CAP rates in Pacific Beach?
Entry cap rates for buyers in Pacific Beach, CA average in the low-mid 3% range. Our exit CAP rate assumption is 4.2%.
5. When do I need to have my funds ready to wire over?
We operate on a first come, first serve basis. So it is important to click the soft commit link on the email and reach out as soon as possible to secure your spot. Close of escrow on this deal is January 19, 2020.
6. How do I know my investment is safe and secure?
While no investment is ever 100% risk free, debt investments are less risky than equity investments. Your investment is secured by real property in a San Diego sub-market with high barriers to entry. Your name will also be recorded on a second deed of trust and recorded with the county. When the property is sold you will be paid through escrow, and Sterling will not be able to sell the property unless you are paid on your investment.
7. What is the history, background, and track-record of Sterling?
Sterling Investment Group is arguably the most successful residential and commercial investment group in San Diego; demonstrating the most consistent results and attention to detail which has allowed us to deliver over 500 projects and grossing over $250 million in sales over the past decade.
8. How do I know wiring money is safe?
A third-party escrow account will be set up for you to wire your money through. You will then call the escrow officer to confirm wiring instructions. If this is still confusing, don’t worry we will walk you through it!
9. Am I able to see the property before I wire my investment?
Of course! Since, this deal has four vacant units currently (a huge bonus) it will be very easy to show you the property.
