Walking through his company’s newest rental townhouse community, which is still under construction in Blaine, Kading said that non-accredited investors who want the opportunity to make money on tangible real estate projects that they can see and even rent out if they wish. He said he believes there are many.
For as little as $10,000, people can invest in the $33.5 million, 74-unit Foxtail Hollow development, scheduled to be completed this month. This is the first project that Kaeding Development is offering to investors through its real estate investment company Auor Capital. After the development is leased, the Blaine project will be put up for sale, with Awol and its investors planning to split the profits.
“We believe this investment exists and this type of investor exists,” Kading said as he showed off a model townhouse unit with quartz kitchen countertops and a walk-in closet. “We believe that there are people who are not accredited who want to incorporate real estate into their portfolios, and that is why we are working hard to prove that idea. I’m here.”
Through Auor, people can invest in single-asset products like Foxtail, allowing them to become direct stock owners in LLCs that own real estate, similar to how real estate limited partnerships operate. In the future, investors will start investing before building the project.
Return on investment is generally never guaranteed, so potential investors should be prepared for a variety of outcomes.
Kading cautioned that people should not use their rainy day savings to invest, but should instead attend educational seminars offered by Aor to see if the program is right for them.
