Letter to Members
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Dear Investors,
Yesterday we went to auction to bid on the properties that we presented to you last week. As you may know, the winning bid for 28 condos and 22-unit (21 rentable) apartment together came very close to $2M. Our research indicated the market value for these 2 properties is in $1.9M-$2.1M range. Therefore the winning bid was paying the market price.
Our strategy is buying distressed property at 50-60cents on the dollar, execute a turnaround plan and making a 50+% capital gain on top of annual operations cash flow of at least 10% on the cash we invest. We believe this strategy can provide us the best possible return and least risk for our investment. We are NOT satisfied in any income generating property with only 6-8% annual return from operations for these reasons (1) there is no room for margin of error (2) it cannot weather storms from economic downturn or demographic change.
Our strategy dictates that we need to be patient, maintain high level of discipline, do not overpay for any property to increase our investment risk and reduce our rate of return.
We followed our plan and maintained discipline yesterday. Although the outcome was disappointing to everybody, we don’t regret for the decision we made. Safeguarding your best interest is a high responsibility and one we approach with greatest seriousness. To be successful investors, it is not what we do; quite often it is what we don’t do. That is to refuse to overpay for an investment.
We thank you so much for the support and trust you have placed in Board of Directors, TZLC Investment Group LLC. Board is working diligently to look for other investment opportunities. Once we identify them, we will let you know as soon as possible. Meanwhile please maintain your patience and focus.
Best Regards,
Board of Directors
xxx Investment LLC
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