Overview of the Investment Process
1. ADF Capital screens potential investors for qualifications.
2. Once qualified, the investor receives a prospectus for the deal.
3. Each prospectus explains the deal and gives a financial analysis, as well as a demographic analysis of the community in which the property resides. The prospectus also includes property plans and/or survey, the manager’s qualifications and the term sheet.
4. If an investor is qualified and wants to invest, a private placement memorandum and subscription agreement must be completed.
5. The investor returns all paperwork and funds to ADF Capital. This can be accommodated through the mail and/or wire services.
6. ADF Capital updates the investor through a quarterly narrative detailing the issues confronting each deal and outlining the deal’s progress. Investors also receive access to our extranet website, where they can view a balance sheet and annual income statement showing the financial condition of the deal.
7. Distributions vary by deal. Development deals distribute after the sale of the asset(s). On-going cash flow deals distribute quarterly under normal conditions.