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How it Works

We’re committed to making commercial real estate more accessible for individual investors

Our team brings diverse industry experience in real estate finance and private equity. We were brought together by a shared vision of transforming real estate investing by providing a new level of access to private transactions and streamlining the investment process. While we believe in the transformative power of technology, we recognize that our platform is only as good as the people and experience behind it. We’re committed to transparency, rigorous underwriting, and investor support.

 

Smart investing is about managing risk. We help you build a smarter, more diversified portfolio. Building a sound portfolio starts with thoughtful allocation between major asset classes. With Horizon Companies, you can allocate a meaningful portion of your portfolio toward commercial real estate to complement your public market investments. 

 

We mitigate risk to our investors through diversification across multiple projects. The hallmark of sound investing is diversification. Also, our low minimums allow you to diversify the real estate portion of your portfolio by investing across a range of deal types, helping you manage risk while retaining substantial upside potential.


Our equity raises are structured to align our success with yours. Our team works to ensure that our private investors are on the same economic terms as the other institutional investors that participate in the projects. 


Common Equity


  • Target Annual Cash Return: 6-12%
  • Target Internal Rate of Return (IRR) to Investors: 14%+
  • Typical Term: 3-7 years
  • Risk: As the last party to get paid, equity investors have limited downside protection. However, they enjoy uncapped upside as the deals perform over time.   


Preferred Equity


Our preferred equity deals offer investors a fixed return, combined with a fixed portion of the project upside upon repayment. We employ this structure to provide shorter, fixed terms and to help manage risk.


  • Target Current Preferred Return: 7-12%
  • Target Total Preferred Return: 10-14%
  • Typical Term: 1-3 years
  • Risk: Preferred equity investors are entitled to repayment before the common equity holders and the company are paid. This lets investors manage risk while also participating in a portion of the deal’s target upside.

  

Preferred vs. Common Equity


Preferred equity investors favor a fixed return and priority as to both the return of their investment and the return on their investment. This is particularly true of institutional investors. Typically, preferred equity has contractual rights contained in the project’s operating agreement. Preferred equity also avoids the need of an inter-creditor agreement with the senior lender.


Like debt, preferred equity most often involves a fixed term. This is usually two to three years. At the end of the term or in the event of certain triggering events related to the nonperformance of the sponsor, the sponsor is typically required to redeem the preferred equity interest for a redemption price equal to the unreturned capital plus any accrued but undistributed interest earnings.


Common equity, on the other hand, is more than just a loan. It is buying into the project. An investor receives a percentage interest in the project. That way, he receives a part of any increase in the value of the completed project. Or he might receive a portion of rental income. Or both. This is pretty much like buying stock from your broker. You own a portion of the company. But if the project loses money, the investor may also lose his money.

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Horizon Companies

Disclaimer and Disclosure

Horizon Companies, LLC operates a website at horizoncompanies.cc (the “Site”). By using this website, you accept our Terms of Use and Privacy Policy. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in partial or total loss. While the data we use from third parties is believed to be reliable, we cannot ensure the accuracy or completeness of data provided by investors or other third parties. Neither Horizon Companies nor any of its affiliates provide tax advice and do not represent in any manner that the outcomes described herein will result in any particular tax consequence. Prospective investors should confer with their personal tax advisors regarding the tax consequences based on their particular circumstances. Neither Horizon Companies nor any of its affiliates assume responsibility for the tax consequences for any investor of any investment. 


Horizon Companies does not give investment advice, endorsements, analysis or recommendations with respect to any securities and the content contained in them. The Horizon Companies Platform does not constitute an offer by Horizon Companies to sell, solicit or make an offer to buy an investment interest. Offers to sell, or the solicitation of offers to buy, any security can only be made through official offering documents, such as a subscription agreement and private placement memorandum (the “Documents”). Before making an investment decision with respect to any investment described herein, potential investors are advised to carefully review the Documents and seek their own legal counsel for advice. Any investment overview found on the Horizon Companies platform is intended only as a preliminary summary of such investment and may later be updated to fit the current market. This summary does not purport to be complete and is qualified in its entirety by reference to the more detailed discussion contained in the actual text of the Documents. 


Full Disclosure 

The information contained herein neither constitutes an offer for nor a solicitation of interest in any securities offering; however, if an indication of interest is provided, it may be withdrawn or revoked, without obligation or commitment of any kind prior to being accepted following the qualification or effectiveness of the applicable offering document, and any offer, solicitation or sale of any securities will be made only by means of an offering circular, private placement memorandum, or prospectus. No money or other consideration is hereby being solicited, and will not be accepted without such potential investor having been provided the applicable offering document. Joining the Horizon Companies Platform neither constitutes an indication of interest in any offering nor involves any obligation or commitment of any kind.

 

Neither the SEC nor any state securities commission or regulatory authority approved, passed upon or endorsed the merits of any offering on the Horizon Companies Platform. Any publicly offering circulars of the issuers sponsored by Horizon Companies, LLC, are not qualified by the Securities and Exchange Commission.