Invest and Relax

Dream Beyond the Conventional Single-Family Rental Investment

One Home

PORTFOLIO OF HOMES

Portfolio of homes

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PlanOmatic
Long Term NNN Lease

Making Single-Family Rental Homes More Accessible to Individual Investors

Tailored Portfolios

Customizable Leverage

Full Control, Direct Ownership

Capital Gains Tax Deferral Options

Net-Leased Fixed Income

Annual Cash Flow Increases

Direct Title Security

A Direct Title Security (DTS) SFR Investment

A Direct Title Security represents an investor’s 100% ownership of the equity in a single member limited liability corporation (LLC) formed to acquire the individual home of homes. See our comparison chart below for Direct Title Securities compared to other single-family rental ownership types.

Direct Title Security (DTS)

SFR INVESTMENT
  • Long-Term NNN Lease
  • BBB+ Credit-Rated Tenant
  • Lease Negotiating Power
  • Customizable Debt
  • Readily Available Assets
  • Ownership Control
  • Passive Management
  • 1031 Eligible

Delaware Statutory Trust (DST)

SFR INVESTMENT
  • Long-Term NNN Lease
  • BBB+ Credit-Rated Tenant
  • Lease Negotiating Power
  • Customizable Debt
  • Readily Available Assets
  • Ownership Control
  • Passive Management
  • 1031 Eligible

Traditional Direct Ownership

SFR INVESTMENT
  • Long-Term NNN Lease
  • BBB+ Credit-Rated Tenant
  • Lease Negotiating Power
  • Customizable Debt
  • Readily Available Assets
  • Ownership Control
  • Passive Management
  • 1031 Eligible
1031 Exchange

Exchange into A Direct Title Security (DTS)

A 1031 exchange is a tax deferral strategy approved by the IRS, enabling an investor to sell an investment
property and purchase a like-kind property, with the goal of postponing capital gains and depreciation
recapture taxes.

Owner sells relinquished property on the real estate market and sale proceeds are transferred to a qualified intermediary (QI)

Within 45 days of the sale, the owner must identify potential replacement properties, made simple with the DTS structure

Within 180 days from the sale of the original property, the owner must formalize the purchase of the identified property from the DTS

Owner will use the proceeds from the sale to purchase the DTS, completing the exchange and deferring capital gains and depreciation recapture taxes. Allowing the owner to invest and relax, with zero maintenance responsibility

Direct Title Security Investment Process

Own a Tailored SFR Portfolio in 4 Simple Steps

Request a proposal

Request for Proposal

Interested investors will receive a Private Placement Memorandum (PPM), general brochure, and Request for Proposal (RFP) submission form. Investors will submit an RFP detailing their target investment needs and desired LTV to satisfy IRC Section leverage requirement for tax deferral.

Portfolio Selection

Investors will receive a curated investment package for consideration including the customized portfolio, PPM Property Supplement, Subscription Agreement, Purchase and Sale agreement (PSA), and loan documents, if applicable.

Finalize and Close

After the investor returns the Subscription Agreement, PSA, loan documents, and QI form (if applicable), Emerson Equity LLC, Appreciation Homes and the Title company work together to close on the properties.

Generate Effortless Income

After closing on the properties with the title company, we’ll take care of everything from here. The investor will receive a payment from Appreciation Homes every month for the duration of the NNN lease term.

Direct Lease Program

Enhance Your Home with a Direct Lease

The direct lease program offers current SFR developers the ability to enhance their homes with long-term net leases. For the cost of the lease, Developers will receive scheduled Net Lease Payments (“NLP”) with yearly escalations from Appreciation Homes Leasing. We will assume responsibility for all management and costs associated with maintaining the property including, vacancy-related costs, turnover, insurance, property taxes, capital expenditures and leasing costs.

By joining the direct lease program, developers can:

Mitigate Risk

Cover Debt Payments

Eliminate Property Management

Trade Asset on Securities Market

Estimated Annual Costs

Invest and Relax, with Zero Maintenance Responsibility

Appreciation Homes is a   BBB+ credit-rated tenant that assumes complete responsibility for all labor, time spent, and costs associated with maintaining, owning and leasing the investor’s rental property.

Actively managing a rental property involves numerous headaches, from marketing and leasing the property to costly capital expenditures. The model to the right is based on a 12-month cost analysis of a home renting at the national average of $1,957 per month with a 2-month vacancy.

Traditional Tenant

Estimated Annual Costs
$ 16,181 Annual Recurring Costs
  • (2,467) Maintenance
  • (3,000) Turnover
  • (4,614) Vacancy
  • (200) Leasing
  • (2,000) Property Insurance
  • (3,900) Property Taxes
For Illustrative Purposes Only

Appreciation Homes

Estimated Annual Costs
$ 0 Annual Recurring Costs
  • 0 Maintenance
  • 0 Turnover
  • 0 Vacancy
  • 0 Leasing
  • 0 Property Insurance
  • 0 Property Taxes
For Illustrative Purposes Only
Bond Comparison

Direct Title Security Compared to BBB Bond

An Enhanced Investment Compared to Corporate Credit

Direct Title Security

Corporate Bond

Real estate depreciation qualifies as a tax deduction

Cash flow off set by depreciation and possible interest deductions

Day one collateral value averages $0.86 per $1 of face value

Residual value of the DTS grows with home price appreciation

Payment grows 1% per year

No tax-deductible depreciation

Interest is fully taxable

Corporate bond recovery rates average $0.40 per $1 of face value in default1

Residual value of a corporate bond at maturity capped at return of capital

Payment remains static

  1. S&P Global: Default, Transition, and Recovery: 2023 Annual U.S.
    Corporate Default And Rating Transition Study
  2. Corporate bond percentages last updated March 3rd, 2025
Direct Title Security (BBB+ Rating)
5.00 - 5.50%
US Corporate BBB 2
5.26%
US Corporate A 2
4.93%
FAQ

Common Questions

Yes, when you invest with Appreciation Homes, you own the individual single-family rental homes through a Direct Title Security.

A Direct Title Security (DTS), represents 100% of the undivided equity interests in a limited liability corporation (LLC) formed to acquire the individual home or homes.

Yes, as long as you are still within your identification period, you can work with our team to identify properties to purchase through a 1031 exchange. 

A 1031 exchange gets its name from Section 1031 of the U.S. Internal Revenue Code, which allows investors to defer capital gains taxes when selling an investment property and reinvesting proceeds from the sale in a like-kind property.

The minimum investment is the cost of the equity of one home. Contact us today to customize a portfolio from our available homes ranging from $150,000 to $500,000.

Appreciation Homes is an investment-grade BBB+ credit-rated tenant that assumes responsibility for all day-to-day costs, vacancy-related costs, turnover, property insurance, property taxes, capital expenditures and leasing costs.

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General Disclosure: All investing involves risk of loss of some or all principal invested. Past performance is not indicative of future performance. There can be no guarantee that any investment or strategy will achieve its stated objectives. Speak to your tax and/or financial professional prior to investing. 

Real Estate / 1031 Risk Disclosure: There is no guarantee that any strategy will be successful or achieve investment objectives including, among other things, profits, distributions, tax benefits, exit strategy, etc.; Potential for property value loss – All real estate investments have the potential to lose value during the life of the investments; Change of tax status – The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities; Potential for foreclosure – All financed real estate investments have potential for foreclosure; Illiquidity – These assets are commonly offered through private placement offerings and are illiquid securities. There is no secondary market for these investments. Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions; Impact of fees/expenses – Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefit. Stated tax benefits – Any stated tax benefits are not guaranteed and are subject to changes in the tax code. Speak to your tax professional prior to investing. Securities through Emerson Equity LLC Member: FINRA/SIPC. Only available in states where Emerson Equity LLC is registered. Emerson Equity LLC is not affiliated with any other entities identified in this communication. 

 

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