Walton expands US home-builder BOLD funds

2018 and 2019 pricing strength, 57% of builders increased net prices in June, while traffic rating was the best it’s been in four years.

Average finished inventory fell 20% YOY as consumers clamored for quick move-ins and 55% of builders expect good sales in the next six months, compared to 36% one year ago.

The BOLD Funds intend to acquire properties identified by large publicly traded US home-builders for near-term residential development.

The land is then expected to be sold to those same builders in phases with an agreed upon takedown schedule and flexible payment terms. The BOLD Funds expect to make distributions to investors as homes are developed and sold by the builders.

The primary investment objective of the BOLD Funds is to preserve capital investment and generate cash flow through the acquisition and sale of land assets. A purchase and sale agreement with the home-builder is in place prior to each acquisition which defines the takedown schedule and price per phase.

Properties are acquired on an all-cash basis and cash flow is forecast to commence within 6-24 months.

“Walton’s BOLD Funds meet the needs of an evolving home-building industry by allowing builders to tie up land inventory with option structures that offer a limited amount of capital down,” said Bill Doherty, CEO, Walton Group of Companies. “Home-builders are able to improve their ROI by better aligning land inventory costs with cash flow from home sales and investors benefit from a diversified source of cash flow.” (AP)