Investing in physical assets can be complex, with varied risks that could impact the return on your investment. Cityfunds provides a strategic approach to asset maintenance and guarantees collateral, ensuring investor confidence in equity-sharing agreements. Let’s break down the protection and due diligence layers that safeguard your Cityfunds investments.

The Leadership Behind Cityfunds

The leadership of Cityfunds' management team is critical to the company's ability to protect and enhance the value of its investments.

A team of seasoned professionals with over 50 years of industry experience and management of $1 billion+ in assets leads Cityfunds. The leadership team, alongside John Green, Mauricio Delgado, Sundance Brennan, Jeremy Males, and Justin Wang, brings a wealth of knowledge and expertise in asset maintenance strategy to the table. They have extensive experience in real estate investment and asset management, making Cityfunds a trusted partner for investors.

The leadership team's deep understanding of the real estate market, physical asset management, and ability to navigate complex investment landscapes are key factors in Cityfunds' success. Their strategic vision and commitment to excellence drive the company's investment decisions, ensuring that Cityfunds consistently delivers investors high-quality, stable, and resilient real estate opportunities.

Structured for Stability and Protection

At the heart of Cityfunds' risk management lies a fundamental commitment to protect your investment at every stage. From asset selection framed by a secured equity position to homeowner-driven covenants, each detail is meticulously addressed to mitigate risks:

• Downside Protection: Cityfunds offers an average 10% to 15% discount on a home's appraised value, providing a safety net against potential declines in property value.
• Secured Interests: The home equity sharing agreements you invest in are backed by a Deed of Trust or Mortgage, ensuring your position is legally recognized and secure.
• Structured Payouts: Cityfunds establishes clear triggers for homeowner payouts within contracts, often tied to significant events that liquidate assets, such as a home sale or refinancing.
• Protective Covenants: Homeowners retain their familiar roles and are obligated to maintain the quality of their properties and keep them free from obstacles, effectively maintaining the asset's integrity over time.
• Quality Credit and Collateral: Since the financial health of homeowners is vital, Cityfunds invests in those who generally use funds to improve their financial standing, which, by extension, preserves the home's value.

Ensuring Asset Quality Before Investing

Before committing funds, Cityfunds engages in a rigorous due diligence process. What does this involve?

• Pre-Investment Due Diligence: A thorough property inspection gauges physical health, while a title exam ensures the absence of liens. Credit and employment checks verify homeowner stability.
• Reactive vs. Proactive Asset Management: Instead of waiting for issues to arise (reactive maintenance), Cityfunds opts for a proactive maintenance strategy, addressing potential problems even before the investment is formalized.

Post-Investment Due Diligence: Maintaining Asset Value

Once you've invested, your peace of mind is maintained through Cityfunds' asset management system, which meticulously monitors maintenance activities to uphold your asset's life cycle:

• Asset Tracking and Monitoring: Cityfunds employs BSI Financial as an asset servicing manager, maintaining oversight on property conditions, homeowner insurance, and tax compliance.
• Preventive Maintenance: Critical to avoiding unplanned downtime, the asset maintenance plan ensures the home remains well-maintained, retaining its value for when a liquidity event occurs—be it a home sale or a cash-out refinance.

Why Asset Maintenance Management Is Important

Adequate asset maintenance strategies are non-negotiable for the longevity of your investment. Cityfunds' approach minimizes the risk of asset failures and maximizes operational efficiency through:

• Effective Asset Maintenance: Regular maintenance tasks prevent the degradation of the property, extending its durability and performance.
• Significant Cost Savings: Preventive measures keep maintenance costs predictable and manageable by avoiding corrective maintenance, which often comes with heftier repair costs.

Collateral Maintenance and the Investor’s Advantage

Cityfunds offers an investment opportunity with a strong focus on asset performance and integrity. We are committed to maintaining critical assets through strategic planning to ensure increased availability for our investors. At Cityfunds, proactive asset management is combined with comprehensive risk management to create a potential pathway for your investment to thrive over its lifecycle.