Find answers to common questions about the Catalyst Fund investment opportunity
The Catalyst Fund is an exclusive investment opportunity for Dickson Realty employees to participate in real estate investments alongside the company. It's designed to help team members build long-term wealth through carefully selected property investments.
The Catalyst Fund is available to eligible Dickson Realty employees. Specific eligibility criteria and investment requirements will be discussed during the application process.
Participants can invest in properties selected by our experienced team. The fund handles property selection, management, and optimization, while investors receive potential returns through appreciation and rental income.
Investment minimums and terms are flexible and designed to be accessible for our employees. Detailed investment requirements will be provided during your consultation with our team.
The fund focuses on properties within our target markets, particularly in the South and Midwest, that show potential for both appreciation and rental income. We target properties that can achieve a monthly gross rental yield averaging 1.20% and typical cap rates of 6.5-8.5%.
The fund uses a class share system: Class A shares are held by Comstock (GP shares), Class B shares are for Dickson agents/staff, and Class C shares are for other investors. There is no priority difference or preference between classes - all distributions are made pari-passu according to ownership interest.
The fund targets expected returns between 12.5% and 16.5% IRR. Property appreciation is projected between 3.5%-5.75%, with higher rates typically coming from initial purchasing outcomes or improvements rather than just market growth. Performance is driven by multiple factors including appreciation, rental growth, expenses/capex, vacancy rates, and turnover costs.
Properties are managed by carefully selected local area managers who typically charge between 8-10% for general management. Additional services include lease-up fees, property inspections, licensing, and legal services. Comstock takes a performance-based 3% management fee, which may be adjusted based on portfolio performance.
The fund typically captures significant rental growth during the first 1-3 years through property improvements and market rate adjustments. Long-term average rental growth is modeled around 4% (range 2.5-4.75%). The strategy focuses on providing quality, well-managed rentals in markets where such properties are less common, which has historically supported above-market rental rates and lower vacancy.
Even in a more conservative scenario with 3.75% appreciation, 2.75% average rental growth, and 2% increase in expenses, the projected annual return would still be approximately 11.5-12%. The fund's structure and management strategy are designed to maintain solid returns even in less optimal market conditions.
For the current year, Comstock's investment is represented by the considerable costs incurred in building and deploying the program. For future funds, Comstock intends to make direct investments, which would be designated as Class C shares, separate from their Class A GP shares.
The fund uses a conservative 9.5% cost of sale estimate for valuation purposes, which includes typical selling costs (6-7% for agent fees, closing/title) plus additional allowances for potential price reductions or repairs. This conservative approach helps protect the annual NAV from being overvalued.
Contact us or review the detailed fund information to learn more.