At the core of Cityfunds' strategy is the unique ability to offer accredited investors access to one of the most dynamic and traditionally inaccessible asset classes—home equity investment agreements (HEAs). This innovative model allows investors to benefit from the upside of real estate appreciation without the typical hassles of property management or the risk concentration that comes with owning a single property. Our approach is designed to maximize returns while providing downside protection through strategic asset acquisition and diversification in markets like Los Angeles.

1. Diversified Real Estate Exposure

Unlike traditional real estate investments where you are limited to the performance of a single property, Cityfunds spreads your investment across multiple high-quality homes in thriving markets. In Los Angeles, investors can fractionally invest in multiple properties, spreading the risk and increasing the potential for long-term gains in one of the most desirable real estate markets in the world.

By diversifying across several homes in LA and other targeted cities, we mitigate the risk of any one property underperforming. This strategy ensures that your investment is not reliant on the success of a single asset but rather benefits from the overall growth of the Los Angeles real estate market, known for its strong appreciation, luxury appeal, and consistent demand.

2. Unique Access to Home Equity Agreements (HEAs)

Cityfunds is a pioneer in making Home Equity Agreements (HEAs) accessible to individual investors. HEAs provide liquidity to homeowners by allowing them to sell a fraction of their home’s equity without taking on debt, while giving investors the opportunity to own a stake in the future appreciation of these properties.

What makes HEAs special in LA?

• Off-market access: We acquire HEAs directly from homeowners, typically at a 10-15% discount below the appraised market value, providing investors with instant value—right from day one.
• Fractional Ownership: Investors can own a fractional share of multiple homes in LA, creating a diversified portfolio without having to manage properties.
• Increased upside potential: Investors participate in the home’s appreciation while benefiting from protections that traditional real estate investments don’t offer.

3. Downside Protection

At Cityfunds, protecting investor capital is paramount. With up to 40% downside protection built into our investment agreements, your risk is significantly reduced. This means that the properties we invest in must depreciate by more than 40% before any loss is felt by our investors.

How we achieve this:

• Discounted asset acquisition: Through our HEA model, we negotiate below-market prices with homeowners who need liquidity, ensuring that your investment is already in-the-money from day one.
• Diversification: Your investment is spread across multiple properties within LA’s best real estate markets, further minimizing exposure to downturns in any specific home or neighborhood.

4. Growth-Oriented and Opportunistic

Los Angeles is a prime example of our growth-oriented strategy. Known for its economic diversity, LA is a hub for industries like entertainment, tech, healthcare, and international trade, creating strong and steady demand for housing. The city’s population of nearly 4 million people and consistent influx of new residents provide a stable foundation for long-term property appreciation.

Why invest in LA?

• High Demand for Housing: With its growing population and limited housing supply, Los Angeles remains one of the most competitive real estate markets in the country.
• Economic Powerhouse: LA boasts a gross metropolitan product (GMP) of over $1 trillion, ranking it as one of the top economic centers in the world.
• Job Growth & Industry Diversity: From Silicon Beach startups to Hollywood entertainment, LA's diverse economy attracts global talent, sustaining a robust real estate market.
• Historical Appreciation: Over the past decade, LA’s housing market has seen steady growth, with some areas experiencing double-digit annual appreciation.

Investors in LA Cityfund are positioned to benefit from this continued appreciation, all while being protected through our rigorous asset selection and downside protection measures.

Cityfunds provides a rare opportunity to participate in pre-IPO-like investment access. Investors can buy into the LA Cityfund at $10/share, before shares become available to the public, positioning early investors for significant growth as the fund matures.

5. Strong Asset Selection and Partnering Strategy

Our team of experienced real estate professionals sources homes with high appreciation potential, often targeting areas within the Los Angeles metro and surrounding regions. Los Angeles' real estate market consistently attracts global attention and has seen sustained growth due to its economic diversity and appeal. By selectively acquiring properties with high growth potential, Cityfunds offers unparalleled opportunities for investors to benefit from LA’s upward trajectory. Our asset acquisition process ensures that investors gain access to the best properties in the most desirable areas.

Conclusion:

A Balanced Approach for Maximum Gains in LA Cityfunds’ strategy revolves around providing accredited investors with a unique, diversified, and downside-protected entry into the Los Angeles real estate market. By investing in HEAs and accessing off-market properties, Cityfunds ensures investors benefit from long-term appreciation, stability, and high potential returns, all while maintaining significant downside protection. Whether you're looking to capitalize on Los Angeles' growth or build a diversified portfolio of homes across top U.S. cities, Cityfunds offers an exclusive opportunity to achieve your investment goals with confidence.