Investing with Arixa

Arixa Capital measures its success by the consistency of its track record and our ability to generate attractive risk-adjusted returns for investors, which include high net worth individuals and families, registered investment advisors, family offices, and institutional investors, such as endowments. We leverage our deep market knowledge to deliver attractive returns on each of our funds, promoting investment transparency and strong reporting with audited financial statements.

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INVESTMENT STRATEGY

High Yield
Healthy Margin of Safety

 

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INVESTMENT FUNDS

First Trust Deed Investing
Diversify Your Portfolio

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sample Investments

Skilled Borrowers
Successful Projects


Investment Strategy

Why First Trust Deed Investing

INCOME  

Professional single family home renovators have special requirements, such as short funding timelines, that traditional institutional lenders are unwilling to accommodate. This provides an opportunity for private lenders who cater to this market to command premiums on their capital. In today’s market Arixa’s lending funds generate current income from 7-10%.

PRINCIPAL PROTECTION 

Arixa’s loans are secured by a first lien on a house. Borrowers typically provide 20%-25% of the capital needed to buy the house. Additionally professional developers enhance the value of the collateral through renovations that they fund with their own equity.

DIVERSIFICATION

Real estate including real estate debt is an important component of a well diversified portfolio. An allocation to first trust deeds can reduce overall portfolio volatility and increase returns, as first trust deeds are not well correlated with either the stock or bond markets. 


Investment Funds

Arixa Fund GROWTH OF $100,000

Arixa Secured Income Fund

ARIXA SECURED INCOME FUND CHARACTERISTICS

Target Net Return:

Diversification:

Typical Loan-to-Cost:

Typical Loan Maturity:

Leverage:

AvERAGE Loan-to-Value

Return (since inception)

7 - 8%

38 Loans

75%

12 Months

None

55%

9.26%

 

Arixa Fund III

ARIXA FUND III CHARACTERISTICS

9 - 10%

50 Loans

75%

12 Months

Up to 50%

57%

10.47%

Target Net Return:

Diversification:

Typical Loan-to-Cost:

Typical Loan Maturity:

Leverage:

AvERAGE Loan-to-Value

Return (since inception)


Sample Investments


New to Trust Deed Investing?

WE ARE YOUR RESOURCE FOR EDUCATION

At Arixa Capital, we value education. We like to learn from the best real estate investors; practice our craft over and over; and then document and teach what we know to others. To this end, we have created a number of frequently asked questions (FAQs) and white papers on topics related to our core business, including the popular Trust Deed Investing FAQ and Hard Money Lending FAQ. Please take a look and don't hesitate to reach out with questions.


Our Investment Philosophy

KEY CONSIDERATIONS FOR OUR INVESTMENT FUNDS

LIMITED RISK

Frequently, we would rather give up some of the “upside” of an investment in order to limit our risk. We are fundamentally risk-averse, long-term focused investors.

INVESTMENT STRATEGY 

We like strategies that are more difficult to execute for larger investment management companies, which allow us to earn above average returns for our investors. Excessive amounts of capital ruin good investment opportunities so we avoid highly competitive markets whenever possible.

UNDERVALUED ASSETS

We seek to invest where we see undervalued assets (such as buying homes from banks in the wake of the financial crisis); however, we do not pursue investments whose returns are based on the timing of a recovery in asset values, which we consider too hard to predict and too volatile.

EXPERTISE IN NICHE

We seek to make investments in products, people and markets that we know well. This allows us to have a strong point of view about value, risks and the potential rewards of each investment.

ECONOMIC TRENDS 

We actively pursue a deep understanding of long term demographic and housing trends and to take advantage of these trends when we invest. One such trend is the increased demand among Millennials to live in more urban areas areas with shorter commutes rather than having a larger home and yard with a longer commute. We also see a limited supply of high-quality properties in very desirable urban neighborhoods where demand is strongest. Our point of view on these trends drives many of our real estate investment decisions.

CUSTOMER NEEDS 

When necessary to serve our customers, we are willing to build out infrastructure and to develop vertically-integrated platforms. This goes hand-in-hand with serving harder to reach niche markets and making a large number of smaller investments.

NIMBLE APPROACH

At the same time, we aim to remain nimble enough to change our investment strategy as the market changes. This may mean returning capital to our investors in one fund and launching new funds as market opportunities disappear in one area and emerge in other niches.


From our Investors