Phone: 530-320-7861|Email: info@comstockventures.com
Catalyst Fund Overview

Catalyst Fund

Comstock Ventures' arm of residential real estate investing

The Catalyst Fund is a long-term real estate investment program designed to make real estate investing accessible, simple, and hands-free. Built on a proven 7-year track record with multiple brokerages, this program allows you to build a diversified real estate portfolio without the typical headaches of property ownership—no qualifying for loans, no property management, no tenant calls at midnight.

What is the Catalyst Fund?

Each year, a new Catalyst Fund is created, allowing investors to invest in a professionally managed portfolio of 25-30 single-family rental homes across strategically selected Midwest markets. Think of it like a 401(k) for real estate—a disciplined, long-term wealth-building strategy designed for retirement and financial foundation planning.

Key Features:

  • Annual Fund Structure: Each year represents a new, discrete investment opportunity
  • Collective Power: Investor investments are pooled to purchase quality homes
  • Professional Management: Comstock Ventures handles all operations
  • Long-term Focus: 20-year fund lifecycle designed for maximum appreciation

How It Works

Auto Invest Program (Most Popular)

  • • Minimum initial deposit: $5,000
  • • Automatically allocate a percentage or fixed amount from your income
  • • Contribute monthly over a 12-month period
  • • Budget-friendly approach that builds your investment gradually
  • • Minimum monthly contribution: $750

Lump Sum Investment

  • • Make a single investment at any time during the enrollment period
  • • Can invest through personal funds, trusts, or LLCs
  • • Ideal for investors at different stages with available capital

Fund Structure

$1.5-1.75M
Typical Fund Size
60-70%
Leverage (LTV)
25-30
Single-family Homes
12.5-16.5%
Expected IRR

Ownership: 80% investors / 20% manager (Comstock Ventures)

The 20-Year Fund Lifecycle

Years 1-2: Enrollment & Acquisition

  • • Open enrollment period for investor participation
  • • Strategic acquisition of 25-30 quality rental homes
  • • Professional underwriting and market selection

Years 1-10: Debt Reduction

  • • All rental income applied to paying down mortgage debt
  • • No distributions during this phase
  • • Building toward debt-free ownership
  • • Conservative cash reserves maintained

Years 11-20: Distribution

  • • Fund is completely debt-free
  • • Annual cash distributions from rental income
  • • Steady passive income stream
  • • Properties continue to appreciate

Year 20: Liquidation & Final Payout

All properties are sold • Capture 20 years of real estate appreciation • Lump sum payout distributed to all participants

Target Property Profile

Typical Home Characteristics

Average Purchase Price: $140,000
Markets: Lansing, MI | Toledo, OH | Mobile, AL
Property Type:
  • • 3-4 bedroom single-family homes
  • • Comparable quality to $400K-$550K Reno homes
  • • Middle-class neighborhoods with decent school districts
  • • Typically family rentals
Age:

30-90 years old (well-maintained, character-rich homes)

Conservative Financial Metrics

Gross Rental Yield: 1.2%+ monthly
Example: $140K home renting for $1,680/month = 1.2% yield
Debt Service Coverage: 1.3-1.5x
Ensures 30-50% more income than needed for debt service
Cap Rate: 6.5% - 8.5%
Significantly higher than Reno market (4-5%)
Loan-to-Value: 60-70%
Conservative leverage protects against market downturns

Why These Markets?

Strategic Market Selection

Comstock Ventures has 7 years of experience and deep relationships in Midwest markets that offer:

  • Affordability: Purchase prices allowing strong cash flow and rapid debt paydown
  • Stability: Markets with limited new construction and existing housing supply constraints
  • Economic Diversity: Multiple markets reduce risk from localized economic downturns
  • Strong Yields: Rent-to-price ratios 3-4x higher than Western markets

Middle America Fundamentals

  • • Stable employment bases
  • • Affordable living attracting working families
  • • Limited speculative investor activity
  • • Mom-and-pop landlord market (97% of single-family rentals)

Risk Management & Conservative Approach

Built-In Safeguards

  • Substantial Cash Reserves
    Significant reserves held from initial capital for economic volatility
  • Conservative Underwriting
    High debt service coverage ratios (1.3-1.5x) and robust expense assumptions
  • Portfolio Insurance
    Properties insured as a portfolio with actual cost value coverage
  • Geographic Diversification
    2-3 markets per fund with different economic bases

Economic Resilience

  • High Vacancy Tolerance
    Fund can withstand 25-30% vacancy before debt service issues
  • Payment Flexibility
    Partnership with Tall Oaks allows flexibility in extreme scenarios
  • Quality Focus
    Focus on occupancy and stable tenants over maximum rents
  • Early Redemption Option
    20% early withdrawal penalty with clear terms for unforeseen circumstances

What Makes This Different

Traditional Real Estate Investing Challenges

  • Difficult market identification in expensive areas
  • Need to build contractor/manager relationships yourself
  • Personal debt and bank qualification requirements
  • Limited diversification with single properties
  • Time-consuming property management
  • Difficulty accessing quality opportunities

Catalyst Fund Solutions

  • Access to high-yield Midwest markets with expertise
  • Established teams across multiple markets
  • Private financing—no personal debt or bank hassles
  • Instant diversification across 25-30 properties
  • 100% hands-off management
  • Professional acquisition and due diligence

Ready to Get Started?

Join the Catalyst Fund and start building your real estate wealth today

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Frequently Asked Questions

Is this like a REIT?

No. REITs are publicly traded securities. The Catalyst Fund is a private, closed-end fund. You have direct ownership in actual properties, not shares in a company.

What if I need my money before year 20?

There's an early redemption option with a 20% penalty. After 3-4 years in the fund, even with the penalty, you'll typically see positive returns on your investment.

How is this different from other funds?

Several critical differences: (1) Closed funds with fixed property counts vs. evergreen funds; (2) Conservative growth (25-30 homes/year) vs. explosive unsustainable growth; (3) Complete transparency with access to all property details; (4) Physical site visits and hands-on management; (5) Only acquiring stabilized, performing assets.

The Bottom Line

A proven, disciplined approach to building generational wealth through real estate—without the headaches.

Near-term Security

Conservative investment structure with professional management

Mid-term Income

Annual cash distributions starting at year 10

Long-term Wealth

Lump sum payouts capturing 20 years of appreciation

Investment in the Catalyst Fund involves risk. All prospective investors must review the complete Private Placement Memorandum and Operating Agreement before investing. Past performance does not guarantee future results.