How it works

To Start

Coldstream owns/operates cash-flowing rentals with 25-50% equity stakes. The rest is “owned” by our lender (a bank).

First Steps

Coldstream issues promissory notes to investors in order to “unlock” pieces of the equity we have. The money invested to purchase these can be used by Coldstream for capital improvement on existing properties, or to fund other cash-flowing investments; investors are owed their contractual return no matter what.

*NPA=note purchase agreement, which does not constitute equity in any asset; rather it is a form of debt owed by by Coldstream Partners to you, the investor.

Our Goal

As the mortgage is paid, and as the property (generally) appreciates, Coldstream’s equity position tends to grow. Additional investors can be added over time, but as a group, we will never permit them to hold notes worth more than 30% of any given property. Coldstream may choose to refinance the bank’s portion (and “extract’ additional equity), but will never hold less than a 5% equity stake. Overall, this guarantees that Coldstream always has skin in the game and that our interests are well aligned with those of our investors.

About us

We are proud of the operational efficiencies that differentiate us from other real estate investment opportunities, and help us to deliver what we see as the best risk-adjusted return you can find.

For example, we neither take nor pay any salaries, nor do we take any fees for acquisition, management, or sale. Our money is made purely on the profit remaining after we pay our expenses, including the full promised return to our investors.

We also have great lending relationships that afford us great terms to acquire properties. We realize the last few years were probably unique (and acknowledge that as we write this in late 2022, rates have climbed), but have been able to lock in borrowing rates in the 2-4% range on our properties.

And we have long-term relationships and volume discounts with real estate agents and property managers that reduce our costs to buy, manage, and sell properties relative to many operators.

Putting this all together is what sets us apart: we can afford to buy and hold “boring” properties that offer good cash flow, and substantially reduce our risk relative to flipping, intensive rehabs, and other more speculative forms of real estate investing.