Appreciation Homes is an investment-grade tenant with a BBB+ credit rating 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.
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.
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 1031 requirement.
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.
After the investor returns the Subscription Agreement, PSA, loan documents, and QI form (if applicable), NexPoint, Appreciation Homes and the Title company work together to close on the properties.
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 entire lease term.
Direct Title Security
Real estate depreciation qualifies as a tax deduction
Day one collateral value averages $0.86 per $1 of face value
Residual value of the DTS grows with home price appreciation
Corporate Bond
No tax-deductible depreciation
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
1 S&P Global: Default, Transition, and Recovery: 2023 Annual U.S. Corporate Default And Rating Transition Study
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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