The FixedFunds Program™ FAQs

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PIR buys, renovates, and holds value-add multi-tenant small-bay industrial properties in primary markets nationwide.    Industrial properties of interest to PIR are typically 20,000 to 100,000 square feet and are made up of suites that are 1,000 to 5,000 in size.  Our tenants are small operating service and manufacturing companies.  You can think of these properties as the industrial property equivalent of multi-family real estate.

The industrial properties we buy need moderate to substantial capital improvements to bring them to the standard of other similar industrial properties in their local submarket.

PIR’s strategy is to acquire each property, complete a campaign of renovation, and bring all tenants to market lease rates on multi-year triple net leases.   The result is a renovated and stabilized industrial property with good cash flow, solid tenants, and substantially higher value.

In approximately year 3 of our ownership, we refinance the property with a new institutional first mortgage.  This refinance allows us to pay back an amount of PIR FixedFunds™ capital equivalent to the PIR FixedFunds Program™ capital we employed to acquire the property originally.  We then hold the property long-term as part of our growing portfolio of stabilized industrial properties.

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The FixedFunds Program™ is limited to accredited investors only, but the lender can be an individual, a family, an entity, a Trust, or any kind of IRA or SDIRA.   For more information about the SEC definition of an Accredited Investor, go here.

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The FixedFunds Program™ Income Note is a three-year note paying 7% interest only with monthly payments.  The minimum investment in the FixedFunds Program™ is $50,000.00

When you lend funds to us, you can choose to do so using our Income Note, our Growth Note, or our Tax-Advantaged Note.  The Income Note is a three-year note paying 7% interest-only with monthly payments.  The Income Note is the “standard” note of the FixedFunds Program™.

Our Growth Note is an alternative note designed for FixedFunds Program™ participants who are not seeking additional income but instead want the additional return that comes from allowing their interest to compound monthly.    Like our Income Note, our Growth Note is a three-year note bearing interest at 7.0% per annum.   With our Growth Note, instead of receiving your interest payments monthly, the interest you earn each month is added to the principal balance of your loan, allowing your loan to compound monthly.   You receive your principal plus all accumulated interest when we pay off your loan.  A Growth Note that matures at the end of three years generates a compounded return of 7.76% on your funds.

Our Tax-Advantaged Note is designed for participants who are not seeking additional income and who are also interested in minimizing the taxes they pay on the returns they earn.  Our Tax-Advantaged Note is a three-year note bearing interest at the Applicable Federal Rate.  All interest earned each month is distributed to you each month.  The balance of your return on the note is paid to you at note maturity as a lump-sum premium in addition to the original principal balance of the note.  The premium amount is sized to deliver an overall return of 7.0% per annum on your funds.  This premium has the advantage of being taxed as long-term capital gains instead of ordinary income.

Unfortunately, no. PIR FixedFunds Program™ is a loan and does not give you ownership in the property we are purchasing.

As PIR builds its industrial property portfolio, we acquire each individual property into a single-purpose LLC formed to hold ownership of just one property.  All of the membership interests of each of these single-purpose LLCs are owned by Phoenix Industrial Holdings, LLC, an Oregon LLC (“PIH”).    PIH is the borrower for each FixedFunds Program™ loan.

Each investment you make in the FixedFunds Program™ is a three-year loan.   While we sometimes do pay off these loans earlier than three years, there is no guarantee that will happen.   The Income Note, Growth Note, and Tax-Advantaged Note each have two one-year extensions built into the promissory note.   If we exercise one of these extensions we pay you a fee equal to one percent of the loan amount and extend the loan for one additional calendar year.   While it would be rare, if we use both of our available extensions, the loan would become a five-year loan and you would have been paid two one-percent extension fees along the way.

Absolutely!  We’d be happy to put you in touch with other accredited investors who are participating in the FixedFunds Program™.