There’s a major distinction between a casual real estate investing approach yielding periodic, fluctuating revenue versus a proven cycle-tested strategy designed to garner consistent and reliable value from underperforming assets that optimizes returns for investors. The latter investment modality is incontrovertibility preferrable, especially given the recent economic turbulence associated with COVID-19. Sustainable passive income combined with a growth-minded perspective is a winning combination regardless of asset class and that’s exactly what investors will find when they choose Voyager Pacific Capital—a vertically integrated investment firm that utilizes efficient capital deployment into fragmented secondary and tertiary markets to deliver premium risk adjusted returns via their dynamic duo of vehicles: Voyager Pacific Opportunity Fund II and Voyager Pacific High Yield Fund III. Geraci LLP had a chance to sit down with David Hardcastle, CEO of the firm’s Fund II along with some of his colleagues tasked with the much-anticipated launch of Voyager’s Fund III.
VOYAGER FUND II OVERVIEW
“If I had asked the public what they wanted, they would have said a faster horse.” -Henry Ford
Think of Voyager Pacific Capital’s Fund II as the ‘Model-T’ of real estate investing: an innovative, successful deviation from the norm that is producing consistent results quarter after quarter. The underlying approach and carefully crafted asset structure is unique in that instead of devoting millions of dollars in capital to several assets with the hope of profiting from eventual appreciation, Voyager Capital invests in small real estate assets with a concentration on cash flow returns.
The idea behind Fund II is deceptively simplistic. For over twenty years, Voyager has recognized the aggregated value of small transactions across three main asset categories: (1) Vacant Properties; (2) Rental Properties; and (3) Tax Lien Certificates. Let’s take a closer look at each of these asset types to provide an insight as to why they were selected to comprise the foundation of Fund II:
Vacant Land: Diversified revenue streams with a track record of relative immunity to market fluctuations. Sound too good to be true? The good news is that it’s not—and these characteristics are exactly why the Voyager Capital team has purchased vacant properties consistently over the past 18 years across 35 different states. The broad variety of vacant parcels allows for portfolio diversification while producing attractive cash flow, making it an ideal asset to integrate into Fund II.
Rental Properties: Rental homes provide consistent income with the added bonus of improving neighborhood dynamics via affordable and accessible housing options. The real estate experts at Voyager Capital leverage their wealth of experience and market familiarity to pinpoint local markets where the rental market is performing optimally and the acquisition cost is investor-friendly and then purchase these assets through tax lien foreclosures, county tax sales or open market transactions to transition them to long-term rentals. Rental property assets are inherently resilient to external economic factors as there will always be a demand for quality housing options—a key asset feature that makes rental properties a great addition to Fund II.
Tax Lien Certificates: When it comes to diversification, tax liens are hard to beat. Add to that significantly low investment to value ratios and a steady source of passive interest income and you have a dynamic asset class to round out Fund II. Voyager Capital acquires tax liens across 29 states as they approach maturity and can initiate the foreclosure process.
By combining these asset categories into Fund II, Voyager Capital is able to deliver its investors a number of key benefits to include reliable, risk-adjusted, non-correlated returns and a diversified portfolio to support a variety of exit strategies all whilst utilizing extremely low investment to value ratio and zero leverage. While the major players in the real estate investment industry focused on primary markets and metropolitan areas, Voyager Capital is tapping into the mid and smaller markets that feature reduced acquisition costs and higher yields. Data supports that these secondary and tertiary markets will experience outweighed gains in the near future—and Voyager Capital’s Fund II is perfectly positioned to capitalize on this forecasted market trend.
VOYAGER FUND III
“The greatest danger in times of turbulence is not the turbulence—it is to act with yesterday’s logic.”—Peter Drucker
One of the first things you’ll notice with essentially every interaction with Voyager Capital is the underlying devotion to the continual improvement of efficiency and improving the ultimate bottom line for its investors. In accordance with these corporate values, CEO David Hardcastle is excited for the initial roll-out of the Voyager Pacific High Yield Fund III. This fund is concentrated on higher value, value-add initiatives in which leverage will be relied on to optimize IRR. These investments will focus on assets that deliver reliable revenue streams, consistent growth, expense control and long-term capital appreciation.
The Voyager Capital team is confident that by assembling a diverse and stabilized asset portfolio, they can exploit ideal market dynamics resulting from the current insufficiency of affordable housing options. The $100 million Fund III is open to accredited investors and Voyager Pacific management representatives will be speaking to interested investors at Geraci Media’s 5th Annual Captivate Conference and Capital Expo in Las Vegas, Nevada on August 18-20. The Fund III project will largely be spearheaded by Philip Adler, who brings with him a proven track record of success in the industry spanning more than thirty years—over the course of which he has successfully managed in excess of $500 million in asset transactions. Don’t miss out on this unique opportunity to tap into Fund III that is poised to take advantage of a limited market opportunity focusing on value-add assets in ideally located, transit-oriented markets boasting promising job growth and economic trends.