HGCC is board managed by successful entrepreneurs. Each has their own business and real estate experiences and successes. Harvard Grace has brought this elite team together for this opportunity in time. The board will bring its collective expertise to HGCCs investment decisions.
We know the region we are focused on. We live and work in here.
Harvard Grace Capital Corporation (“HGCC”) will invest in real estate properties and businesses for the purpose of generating recurring cash flow and capital gains. These investments will take varying forms. Likely, HGCC will provide short-term equity or secured notes with equity attributes.
Since the societal changes implemented because of the COVID-19 pandemic, investment firms have changed their tactics for soliciting investment capital. On CNBC, Fox Business, and email blasts, investment firms have opted for general solicitation ads. These ads offer fixed returns from 9% to 16% with no opportunity for additional upside. These are essentially debt investments with varying levels of securitization.
HGCC’s preferred stock offering is highly differentiated from other products by not only offering a fixed 6.5%preferred rate but also a participation in the profit distributions, which will enhance the returns on investment to an estimated 22.5% annually over ten years.
Further differentiation comes from how HGCC will be taxed. Once HGCC has 100 investors, we will elect to be taxed as a Real Estate Investment Trust (REIT). A REIT is not taxable at the corporate level, as long as it distributes 90% or more of its income.
The REIT status also ensures no investor will not have “phantom income” or have to wait for a K-1 to file their taxes. The only income tax reporting will be via a 1099-DIV, which will be received by January 31st of each year.