Targeting a 16 to 20% IRR and >2x multiple on invested capital (MOIC)
Select access to home equity investments across the US
Select exposure to top-performing Cityfunds & exclusive access to new Cityfunds
Select investor access; limited to 99 investors only
Redemption after 12-month lock-up

Cityfunds Select

is a five-year term fund that is structured to provide investors with exposure to a diversified portfolio of city-specific home equity investments across major markets, such as Austin, Miami, Denver, Phoenix, Los Angeles, and Nashville by placing select investments, as a “fund of funds” vehicle for the Cityfunds I, LLC private investment vehicles, which include the Cityfunds Series-level LLC offerings (“Series”) that are formed by and managed by Nada Holdings, Inc. (“Nada”) in addition to the acquisition of home equity investment contracts originated by Nada, providing opportunistic exposure to the US single-family home equity market across the US.

Cityfunds Select

seeks to achieve superior long-term returns, targeting a net 16-20% IRR, through its investment strategy into the US single-family home equity market.

Investing in: Cityfunds Series-level Offerings

Select intends to maintain a balanced portfolio that consists of diversified exposure to the Series offerings through direct investments into the underlying Series funds of #Austin Cityfund, #Dallas Cityfund, #Miami Cityfund, #Tampa Cityfund, #Denver Cityfund as well as first access to markets like #Los Angeles Cityfund, #Phoenix Cityfund, and #Nashville Cityfund. Select intends to establish a balanced exposure to current operating Series funds and first capital into new Series funds.

Fund Performance

$/Share

$112.85

Appreciation

12.8%

Spots Left

30 Projected Return

$1,000

Projected Return

$25,000

Investment

$25K

$500K

18% IRR

Target Return

12%

24%

5 Yrs

Hold Period

*The projections above are forward-looking statements that should not be relied upon as actual. Real estate investments come with risk as market conditions and business strategies may change, impacting financials considerably. Projections assume all dividends are reinvested.

About HEIs

Home equity investment agreements (which we refer to as “Homeshares”) allow homeowners to access cash from their equity without the burden of added debt or monthly payments while delivering highly accelerated & downside-protected assets to investors.

Home equity investment agreements are an emerging asset type, with only five or six asset originators operating within a $20+ trillion home equity market today. None of these originators make it possible for individual investors to gain access to this asset, instead they deal exclusively with a few private institutions. Nada is the first to make this asset accessible to individuals and smaller firms through its Cityfunds investment product. Home equity investment agreements have proven to be an established and institutional-grade asset, similar to the mortgage debt market products, with nearly $1 billion in unrated securitizations over the past two years, and most recently another $528 million in rated securitizations with the rating agency, DBRS Morningstar.

Historically, investors have not been able to access the home equity sector due to the lack of institutional-grade assets and the absence of a publicly available private real estate fund that has this type of deal flow. Nada, through its wholly-owned subsidiary Nada Loans, LLC, is capable of sourcing and originating home equity investment agreements through its in-house licensed mortgage brokerage origination and underwriting team.

106 Assets

As of September 10, 2024

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Asset Class Comparison

*Source: Bloomberg and Federal Reserve Bank of St. Louis. Returns based on December 1990 = 100. Past performance does not guarantee future results and there is no guarantee this trend will continue. All returns are estimates and assume reinvestment of dividends. Index information is provided for illustrative purposes only and is not meant to represent the results of an actual investment. Returns do not include any management fees, transaction costs or expenses. Volatility is measured as the standard deviation using the monthly total returns of each index or asset class. The historical performance of each index cited is provided to illustrate historical market trends. Risk/reward profile for each asset class varies significantly. This should not be construed as a recommendation of any specific security. You cannot invest directly in an index.

Fund Details

Strategy

Growth

Fund Status

Performing

Target Return

18.0% IRR

Dividends

Event-based

Term

60 months

Management Fee

None

Acquisition Fee

0%

Tax Form

K-1

Liquidity

The Manager intends to offer investors liquidity events, through a redemption program.

Management Team

Cityfunds Manager, LLC, which is owned and managed by Nada is led by John Green, Mauricio Delgado, Sundance Brennan, Jeremy Males, and Justin Wang, with 50+ years of industry experience and management of $1B+ in assets.

The Manager and the Cityfunds Series funds are uniquely well suited to be the source of underlying residential real estate investments because of their unprecedented ability to provide access to the $20+ trillion home equity sector of the residential real estate market. Home equity investment agreement assets are sourced through a targeted strategy, rigorous diligence processes, an experienced team, and a commitment to transparency with all stakeholders.

Each of the Cityfunds Series funds creates a thematic, index-like exposure to a single city’s home equity market through diversified portfolios of home equity investment agreements. Cityfunds Series funds are able to unlock access to some of the most in-demand real estate markets by investing in owner-occupied homes through the home equity investment agreement asset type.

John Green

Co-Founder & COO

Mauricio Delgado

Co-Founder & CFO

Sundance Brennan

VP of Revenue

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Upcoming Webinar

Join our free live webinars! Hosted by Cityfund’s leadership, we cover the real estate market, cityfund investing, relevant current events, new product launches, and more.

Cityfunds Live Q&A

September 17, 2024 at 6:00 PM CST

Risk Management

Nada supports Cityfunds and its investors through a two-stage, bottoms-up approach to mitigating risks. First, is our asset selection framework for home equity investment agreements. Second, we build investor protections directly into the home equity investment contract. Nada’s secured equity position comes with certain rights and protections and allows them to intervene and protect the interests of all equity holders in the underlying property.

Downside Protection: Home equity investment agreements are made with an average 10-15% discount to the home’s appraised value, protecting investors from home value declines and prepayments.

Secured Interests: Home equity investment agreements are secured and recorded with a Deed of Trust /Mortgage, typically behind the primary mortgage and above the homeowner (like a HELOC).

Structured Payouts: Homeowner payouts triggers established within the contract, most commonly by liquidity-driven transactions, such as a home sale or cash-out refinance.

Protective Covenants: Homeowner retains ownership—and must maintain and keep the asset unencumbered.

Right of First Refusal (ROFR): Contracts have a ROFR clause to protect against below-market transactions.

Quality Credit & Collateral: Most homeowners use their cash to reduce debts, improve their credit profile, and invest in their homes.