The GCA Equity Partners management team includes experienced real estate developers, lenders, and loan and fund servicers. Our team members enable Equipoise to make investments in premier real estate projects around the country.
Thomas P. Braegelmann, CEO of GCA Equity Partners; is an accomplished entrepreneur, fund manager and private lending mentor offering a wealth of experience and knowledge gained during his 30+ year career in real estate investing, commercial construction, land development and private lending.
As a Certified Fund Manager and founder of GCA, Tom is no stranger to thinking outside the box and has earned a reputation as a thought leader in his industry. Through careful investment analysis and strong focus on safety, as well as the development of the unique National Construction Lending Alliance™ program, Tom and partners have shown a consistent track record of delivering double digit returns to their investors on short-term, passive real estate investments.
With Tom’s leadership, and through the development of the National Construction Lending Alliance™ program, GCA participated in the funding of more than $100 million in real estate transactions nationwide in under 18 months.
As a native of Central Minnesota, Tom previously served as owner and CEO of a private real estate investment company, with a portfolio comprised of several hundred multi-family apartment units, residential and commercial complexes, and single-family homes.
With a passion for facilitating and teaching collaborative real estate investing, Tom donates his time and serves as a well-respected, highly sought after mentor and teacher for a group of more than 400 passive real estate investors around the country. He also founded and hosts a monthly REIA/Private Investment club with over 1600 members in the San Francisco Bay area. Tom is committed to giving back to the community and building sustainable cash flow for passive real estate investors.
Chuck has 23 years of experience as a high-technology executive, having served in a variety of engineering and marketing management roles. Over the last twenty years he has been investing in various real estate projects, including owning investment property directly and through various real investment funds. This approach has allowed him to develop a strong sense of what investors are looking for and how best to deliver it.
He has a passion for helping investors achieve their financial goals through careful selection of the right investments, and in particular for helping people optimize returns for their own retirement accounts.
Chuck holds a degree in electrical engineering from the University of California, Davis. During his high-tech career he served in various technical and management roles at Altera Corporation, Aptix, Inc., QuickLogic Corporation and Xilinx, Inc.
In the next few days, GCA Capital Partners and Good Steward Capital Management will file the required documentation for a public offering of their new fund, Secured Real Estate Income Fund II, LLC, under the SEC’s new Regulation A+.
By adopting the landmark regulation A+ rules that came into effect in June 2015 under the JOBS Act, GCA’s Secured Real Estate Income Fund II will offer a number of key advantages to investors and potential borrowers alike.
Benefits to Investors
Investors in the Fund, who will not be restricted to so-called “accredited investors”, can benefit from the passive income generated by a targeted 8% preferred annual return paid monthly, a share of the fund’s profits paid quarterly, and the peace of mind that comes from the knowledge that the fund will be managed by investment professionals who will secure investors’ capital by liens or mortgages on physical real estate. Borrowers will benefit from the larger capital base and efficiencies that the Fund will bring to our lending team.
Rationale for the Fund Approach
The purpose behind GCA’s Secured Real Estate Income Fund II is to provide near-equivalent yields to passive investors whilst maintaining the security of a mortgage or lien in the underlying physical real estate. The Fund has a targeted 8% preferred return.
For investors in the Fund there is little or no “concentration risk”, no time spent stressing over losing their principle from a single bad loan.
By adopting the landmark regulation A+ rules that came into effect in June 2015 under the JOBS Act, GCA’s Secured Real Estate Income Fund II will be available to all potential investors in the USA, and will not be restricted to so-called “accredited investors”.
To be considered an accredited investor, an individual must have earned more than $200,000 (or $300,000 in combination with a spouse) in each of the previous two years and, according to the SEC, “reasonably expects the same for the current year.”
Accredited status may also be determined by an individual’s net worth, which must exceed $1 million.
Accredited investors typically have access to the most potentially lucrative investment opportunities in the nation, however according to the 2016 white paper “The Renaissance of the Retail Investor,” Dara Albright, James A. Jones, and Kim Wales note that “only a paltry 2.8% of all U.S. households are presently considered accredited”. In other words, more than 97% of American households cannot access the same investment opportunities as the 2.8%.
We anticipate that all of the stock sold in the Regulation A+ Secured Real Estate Income Fund II will be freely tradeable and the Fund will become a fully-reporting Regulation A+ company. Our objective is to enable stock in the Fund to be tradeable on the OTCQB once the offering is complete.
By adopting the new Regulation A+ rules for its Secured Real Estate Income Fund II, GCA and Good Steward Capital Management will help bridge the chasm between accredited and non-accredited investors and we will play an important role in the democratization of post JOBS Act investing. Our new Fund will enable non-accredited investors to access previously unavailable secured investment opportunities backed by mortgages and liens on physical real estate. With a targeted 8% preferred return (plus a quarterly profit share), the potential returns can be significantly greater than conventional stocks, bonds, and mutual funds.
For a typical money partner wanting passive income, the Fund can provide similar returns to what they can expect in a single loan, but without the risks associated with asset class concentration and under-diversification, and without the multiple sources of stress associated with an investment in a single loan.
If you are a potential investor or borrower and are interested in finding out more about the Secured Real Estate Income Fund II, please contact Tom Braegelmann or Chuck Tralka.