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How We Distribute Returns
Our Preferred 8%
Our goal is for you to achieve a regular, reliable annual return of 8-12% from the rent on your investment, paid on a quarterly basis.

We achieve this return by putting our partner’s returns first. CityR will not take any profit from our own share of the investment until our partners have made at least 8% annually - so if you invest £36,000, we won’t take any profit until you achieve 8% return (£2,880 per year).

Above this threshold, rental earnings are split 50/50 between CityR and its partners. So if your investment yields 8.5% in rental earnings, you receive 8.25% and CityR takes 0.25%.
If we fail to achieve returns of 8% in one year, we make sure to make it up in the next year. So if one year yield 7%, and the next year yields 9%, we won’t take any profit from that year, so that our partners achieve 8% overall.

The income from your investment will be paid out on a quarterly basis. Your quarterly income can be paid into any account you specify.

Why are we prepared to use our profits to make sure our investment partners receive returns of 8%? Because our main investment goal is our share of the capital gain on each property.
RENTAL INCOME

Our goal is for you to achieve a regular, reliable annual return of 10% from the rent on your investment, paid on a quarterly basis We achieve this return by putting our partner’s investment first. We will not take any profit from our own share of the investment until our partners have made at least 8% annually – so if you invest £36,000, we won’t take any profit until you achieve 8% return. £2,880 per year Above this threshold, rental earnings are split 50/50 between CityR and its partners. So if your investment yields 8.5% in rental earnings, you receive 8.25% and CityR takes 0.25% Our investments have yielded fantastic returns in the recent past. For example.

  • The average annual yield of our investment in Eagle Landing, in Montgomery, Alabama, has been 11.2%
  • The average annual yield of our investment in Chestnut Ridge, Louisville, Kentucky has been 12.9%
  • The average annual yield of our investment in 148 Chancellor Avenue, New Jersey has been 11.3%

However, if we fail to achieve 8% returns for our investors in one year, we make sure to make it up the next. So if one year yields 7%, the next year we only take income if the yield is over 9% - putting our partners first

CAPITAL GAIN

Investing in property – especially multi-family residences – provides a great opportunity for capital gain. Our investment horizon is usually 3-5 years, and when we come to sell an investment, our approach is staggered depending on the size of the gain.

So if a property is bought for $10,000,000 and is sold for $22,000,000
$7,500,000 of the gain is proportionally shared among our investment partners and $4,500,000 is taken by CityR
  • The first 50% of the gain ($5,000,000) is split 70/30
  • $3,500,000 is proportionally shared among our investment partners
  • $1,500,000 is taken by CityR
  • The second 50% of the gain ($5,000,000) is split 60/40
  • $3,000,000 is proportionally shared among our investment partners
  • $2,000,000 is taken by CityR
  • Above 100% the gain ($2,000,000) is split 50/50
  • $1,000,000 is proportionally shared among our investment partners
  • $1,000,000 is taken by CityR
RETURN OF INITAL INVESTMENT

As with any investment, there is no guarantee of capital gain and the value of the property may go down as well as up. However, if you invest £30,000 and the price of the investment property reduces below its purchase price, CityR still puts your investment first so that you receive your initial investment sum back. We are able to do this because a proportion of the rental income receive is put towards paying off the mortgage from the US bank – so over 3-5 years, the proportion of the property owned by the LLC is gradually increased. So if property prices reduce, there is still capital that can be used to return your initial investment.