Origin Growth Fund IV

[PHANTASOS]

Does anyone have their eye on this?

Apparently coming January 15 2022 as noted in the WCI facebook live event. It sounds like this is going to be all "ground-up" development.

I am attracted by the reasoning that current pricing on housing offers only very slim margins for value-add strategies. It makes building ground-up seem reasonable.

What are the hive's opinions on how this compares to DLP housing fund or Origin IncomePlus fund?

It sounds like the Origin Growth Fund IV is not an evergreen fund, but I didn't really know how to interpret what the CEO was saying in the facebook live event when he described it as a "a very short-duration fund with a target of 5 years" but then said you could "opt in" and stay in for "6, 8, 10, 12, 15 years."

Is an evergreen fund (IncomePlus, or DLP housing) really forever? Once you start talking about 15 years, is that long enough to start being similar to an evergreen fund, or is this still rather different?

[PhysicianOnFIRE]

Sounds similar to DLP's Building Communities Fund, which will also be ground-up development. https://dlpcapitalpartners.com/dlp-b...munities-fund/

I haven't compared numbers, but in general, with new development, I would expect somewhat higher risks and returns.

[The White Coat Investor]

I'm assuming the shift toward ground-up is based on where we are at in the real estate cycle-properties have now gotten so expensive that it is now cheaper to build new than buy old. Not a reason to invest or not invest, but something good to recognize.

[PHANTASOS]

Does anyone here have plans to invest in this? or does everyone here still prefer the DLP housing or Origin IncomePlus funds? Thanks

[docbells]

Keeping my eye on this for sure. Currently invested in the Origin IncomePlus fund, which I have been very happy with. Trying to decide to invest more in the OIP fund, as my next investment will be a the lower fee structure, or invest in this new fund.

[The White Coat Investor]

Does anyone here have plans to invest in this? or does everyone here still prefer the DLP housing or Origin IncomePlus funds? Thanks

I'm thinking about both this one and DLP's similar new ground up fund.

[PHANTASOS]

When I registered for their webinar on the Origin Growth Fund IV (January 13th) I asked the question: I like the idea of ground up development, but if my time horizon is much longer than the 4-6 year planned holding period (perhaps 20 years or more), would I be better off investing in the IncomePlus fund?

We will see if the topic is addressed. I also need to see the details on the fee structure.

I seem to be liking some aspects of Origin better than DLP right now. I like the fee structure better. I have some concern that DLP is incentivized to take excess risk when the profits are split 60/40 on any returns higher than 12%. Also, the higher fee structure sets in at 12% nominal returns. If inflation is 5-7% right now, the real returns might start being eroded by that fee structure faster than many (myself included) anticipated.

I get invitations to lifestyle events that DLP is hosting. They sent me a "DLP capital" branded blanket, and some kind of a bag. Each time I am reminded that the fancy events, bags, and blankets are all being paid for by... me. I just want a good investment - that's all. I don't need a fancy dinner, bag or blanket.

[Hoopoe]

When I registered for their webinar on the Origin Growth Fund IV (January 13th) I asked the question: I like the idea of ground up development, but if my time horizon is much longer than the 4-6 year planned holding period (perhaps 20 years or more), would I be better off investing in the IncomePlus fund?

We will see if the topic is addressed. I also need to see the details on the fee structure.

I seem to be liking some aspects of Origin better than DLP right now. I like the fee structure better. I have some concern that DLP is incentivized to take excess risk when the profits are split 60/40 on any returns higher than 12%. Also, the higher fee structure sets in at 12% nominal returns. If inflation is 5-7% right now, the real returns might start being eroded by that fee structure faster than many (myself included) anticipated.

I get invitations to lifestyle events that DLP is hosting. They sent me a "DLP capital" branded blanket, and some kind of a bag. Each time I am reminded that the fancy events, bags, and blankets are all being paid for by... me. I just want a good investment - that's all. I don't need a fancy dinner, bag or blanket.

I invested in the DLP Building Communities Fund. 8% preferred return with 80/20 split. the 60/40 thing is gone to the best of my knowledge for both this and their housing fund (which has slightly lower risk, rehab and mgmt of established buildings and 6% preferred return).

I am warming up to DLP with their events. At first they dropped the investment minimums to 100k for WCI affiliates and they also had a free invitation to their Prosperity event. Sure that costs money, but it also brought in a lot of new investors and capital. I bet they had a lot of good investment opportunities and wanted to recruit more capital and thought that this was a good way to do it. Have you seen how many online ads Fundrise et al put out? I think they met their basic goals and have enough new clients with recurring capital investments (like me) and now they are charging for future prosperity meetings (about 1k or so which seems fair if you want to go) and have raised new investment minimums to discourage an influx of new customers who need to be managed. I did get a blanket, some coffee, and a nice coffee mug for christmas. I actually got something similar from the main hospital I work at. I don't imagine that cost more than $100 including shipping and if it makes me feel warm and fuzzy to drop another 100k into their investments I bet it was a good ROI.

[PHANTASOS]

In case anyone wants to see the webinar. It can be watched at 1.5x-2x if you want to get through it faster.

https://origininvestments.com/2022/0...growth-fund-iv

[Zzyzx]

Any opinions? 50k min is enticing

Origin Co-Investment $5 million
Target Fund Size $200 million with $250 million cap
Minimum Investment $50,000
Tax ReportingSchedule K-1 (Form 1065)
Initial ClosingMarch 31, 2022 expected
Final Closing12 months from initial closing or when the fund is fully committed
Annual Management Fee on Invested Capital
COMMITMENTS UNDER $5M
1.50% per year on deployed capital
COMMITMENTS ABOVE $5M
1.25% per year on deployed capital
Committed Capital Fee None
Acquisition Fee 0.50% of gross development costs
Performance Fee 15% after an 8% preferred return (50/50 catch up)

[PHANTASOS]

I'm planning to invest in this. I'm still working, so I am okay with the fund not producing income for a few years. I wish I had a better understanding of how long they intend for the "optional hold period" to be after the "stabilization period." I guess I don't really know how long an "evergreen fund" is either (IncomePlus or DLP housing). I'm suspicious that "evergreen" isn't really forever.

[Zzyzx]

I wish I had a better understanding of how long they intend for the "optional hold period" to be after the "stabilization period." I guess I don't really know how long an "evergreen fund" is either (IncomePlus or DLP housing). I'm suspicious that "evergreen" isn't really forever.

agreed, these are questions i have as well

[mianesmd]

Anyone else thinking about investing in this space but just finding the minimums prohibitively high? Even if you have a $2 million portfolio the $200K minimum for DLP would make it 10% of your portfolio...all just in one fund! Makes it pretty difficult to diversify, and also for most of us probably difficult to come up with $200K unless you save for several years at a huge opportunity cost...at least Origin with the $50K minimum it is easier to get into it and increase involvement in various funds over several years to build up to that same allocation but in a more diversified and gradual way.