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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
Income
Fund Status
Target Return
-- APY
Liquidity
Yes
Dividends
Quarterly
Term
Open-ended
Management Fee
1.5% per year
Acquisition Fee
1.0%
Tax Form
1099-DIV
Management Team
Yield is managed by Cityfunds Yield Manager, LLC (the “Manager”), a joint venture between Cityfunds Manager, LLC, and JM Yield Management, LLC. Cityfunds Manager, LLC also serves as the manager for Cityfunds I, LLC, each Cityfunds Series LLC, and Cityfunds Portfolio Fund, LLC (the “Cityfunds family of funds”).
The Manager and the Cityfunds family of funds are uniquely well suited to be Yield’s 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.
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 (referred to as “Homeshares”) through its in-house licensed mortgage brokerage origination and underwriting team.
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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.
Related Documents
Offering Memorandum
Subscription Agreement
Risk Factors
Management
Description of Business
Description of Securities
Terms of Investment
Additional Information
* Past performance is not indicative of future results. No assurance can be provided that the market or the value of our investments will appreciate or will not depreciate in value.
© 2024 Nada Holdings, Inc. and/or its affiliates. All rights reserved. Nada is a registered service mark of Nada Holdings, Inc.
Note: These graphics are purely hypothetical and for illustrative purposes only and are not intended to reflect future returns or portfolio performance in any way. The value of our properties and investments may increase or decrease.
Nada Holdings, Inc. ("Nada"), as a manager of Cityfunds I, LLC (“Cityfunds”) operates the www.nada.co website (the "site") and the mobile-based app (the "App") and is not a broker-dealer or investment advisor. All securities ("shares") related activity is conducted through Dalmore Group LLC, a registered broker-dealer and member of FINRA/SIPC, located at 525 Green Place, Woodmere, NY 11598. You can review the brokercheck for Dalmore.
You should speak with your financial advisor, accountant and/or attorney when evaluating any offering. Neither Nada, Cityfunds, nor Dalmore makes any recommendations or provides advice about investments, and no communication, through this website or in any other medium, should be construed as a recommendation for any security offered on or off this investment platform. The Site may make forward-looking statements. You should not rely on these statements but should carefully evaluate the offering materials in assessing any investment opportunity, including the complete set of risk factors that are provided as part of the offering circular for your consideration.