8% perf return w/ no upside.... Seems low to me....

[John Laney]

Hello, I am considering investing with Battle Monument group with their Guidon fund.
The fund invests in properties that are rented to dollar general / dollar tree stores.

It is a conservative fund, with long term debt and ~70%debt to value.

Which is what I want ( I think of my self as an "old man" investor)

However, it gives a 8% perf return with 6% paid quarterly and the remainder paid when the assets are sold....

That seems a bit low for a conservative play....

Does anyone else have experience playing in "shallow end of the pool" and what returns I should expect.

Best, John

https://www.battlemonument.com/
https://www.guidonfund.net/about

[Taylor L.]

It just goes to show how big this real estate world of ours is, those guys are based less than a mile from me and I've never heard of them until now. Will need to reach out to them.

Stabilized Triple net plays like this one tend to produce conservative returns but also have relatively low risk. 8% is pretty good when the world is in the midst of a deep recession and your tenant is only likely to become more and more popular. There's only going to be more and more vacant commercial space, but it seems like Dollar General has a very good fighting chance compared to any other type of retail. If I was looking for a conservative investment at this point, this type of thing would be on my list to consider.