| Funds Details | Tempo Opportunity Fund LLC | Tempo Growth Fund LLC |
|---|---|---|
| Investment Objective | Income & Growth | Growth |
| Fund strategy | Fund invests in a broad range of residential and commercial real estate projects, syndications and other funds across many sectors such as multifamily, self-storage, shopping centers, industrial, office, hotel conversion to multifamily, and other strategies.Both Income focused (performing) and growth focused (value-add) deals are a part of the investment strategy. | Fund invests in a broad range of residential and commercial real estate projects, syndications and other funds across many sectors such as multifamily, self-storage, shopping centers, industrial, office, hotel conversion to multifamily, and other strategies.Fund is focused primarily on Growth (value-add) investments and projects. |
| Target average annual return | 10 – 13% | 12 – 18% |
| Annual distributable Income (approximately) | 7-8% | 0% |
| Annual Growth (approximately) | 3 – 5% | 12-18% |
| Diversification | Great Over 80 assets in the fund spread over Multifamily, Self-Storage, Commercial and Residential Notes, Portfolios of turn-key houses, Office, Shopping plazas, Hotel conversions to multifamily, any other strategies in many regions of US |
Great 20-30 commercial investments in value-add Multi-family, conversions of Hotels to affordable housing, conversions of Office to multifamily, Distressed and Discounted commercial notes, Self-Storage and others, across many regions of the US |
| Portfolio Allocation benefits | Single Investment in the fund provides instant diversification across the entire portfolio.You can write one bigger check into the fund and participate in many strategies instead of writing a lot of checks to diversify directly. | Single Investment in the fund provides instant diversification across the entire portfolio.You can write one bigger check into the fund and participate in many strategies instead of writing a lot of checks to diversify directly. |
| Best Access Point | Access to deals that not available to public. And elevated economic terms vs. going into some deals directly as TOF often receives better terms through side-letters driven by bigger checks and our relationships with sponsors |
Access to deals that not available to public. And elevated economic terms vs. going into some deals directly as TGF often receives better terms through side-letters driven by bigger checks and our relationships with sponsors |
| Tax efficiency | Good Good Depreciation benefits and some portion of the return comes as capital gains |
Great Massive Depreciation benefits, and most of the income comes as capital gains |
| IRA friendly | Yes | Yes |
| Fund Type | Open-ended. There is no maturity or expiration date. Basically, the fund is “evergreen”. |
Close-ended. The fund will close its capital raising on or before March 9th, 2022. |
| Distributions | Quarterly | No initial distributions. Distributions will take place likely starting from 2022, and will be “clumpy” driven by Refinancing or Sale of Investments |
| Reinvestment of distributions | Yes | No |
| Subscriptions & Redemptions | Quarterly | Subscriptions are open now until the fund closes, latest date is Mar of 2022.There is no redemption mechanism.Investors will be in the fund for the life of the fund. |
| Capital Calls | N/A | Each Capital call is issued when TGF is ready to make one or more investments.Time between subscription date and capital call date can very from a few days to a few months.On average, we issue a capital call every 1.5-2 months. |
| Investment Period | Ongoing (no end-date, “evergreen”) | New deals maybe funded through Jan 16, 2023. Investment period end 12 months after the last subscription date. |
| Lock-in period / Investment Duration | 2 Years | N/A |
| Risk Adjusted Return | Superior! Low Fund Fees, Strong Preferred Return, Investor heavily favored Performance Split |
Superior! Low Fund Fees, Strong Preferred Return, Investor heavily favored Performance Split |
| Fund Fees | 2% – annual fund management fee 0.6% – approximate cost of fund administration, annual audit and tax filing, 0% – asset acquisition fees |
2% – annual fund management fee 0.5% – approximate cost of fund administration and tax filing, 1% – asset acquisition fees |
| Preferred Return and Performance Split | 7% (cumulative) preferred return, 80/20 split for Class A units, 70/30 split for Class B units, 60/40 split for Class C units. |
8% (cumulative) preferred return, 80/20 split for Class A units, 70/30 split for Class B units. |
| Unit Classes | Class A units: $1,000,000+ invested Class B units: $500,000 – $999,999 Class C units: $100,000 – $499,999 |
Class A units: $1,000,000+ invested Class B units: $250,000 – $999,999 |
| Traditional IRA to Roth IRA conversion benefits | No | Yes returns looks like a “J” curve, convert in 2022 or 2023 at ~ 20-40% lower statement value (consult with your CPA) |
| Tax form and timing | Investors need to file for extension every year. The Fund projects to have taxes filed and K-1s completed in July-Aug. | Investors need to file for extension every year. The Fund projects to have taxes filed and K-1s completed in June-July. |
| COVID-19 Pandemic Created Investment Opportunities | Fund is allocating a substantial amount of capital to “conversion of Hotels to affordable multifamily”, “conversion of Office to multifamily” and similar opportunities created by the COVID-19 Pandemic. | Fund is allocating a substantial amount of capital to “conversion of Hotels to affordable multifamily”, “conversion of Office to multifamily” and similar opportunities created by the COVID-19 Pandemic. |
| Special benefits | All points and fees collected on hard money loans go to the fund to enhance investor returns, rather than the manager | |
| Freedom Founders & Mile Marker Club members special benefits | Higher Class of Units based on combined investment in TOF & TGF, e.g. $500K in TGF and $500K in TOF = $1M total, and therefore Class A units in TOF | Access to class A units without $1M minimum investment for FF, MMC and other affiliated member groups. Higher Class of Units based on the combined investment in TOF & TGF concept applies here too. |
Introducing our Funds
Watch overview by Mike Zlotnik - Tempo Opportunity fund vs tempo growth fund
