I am David Zussman,
beginning In the year 2000, I started working with individual investors advising them on their personal financial and real estate investments. As my business grew, I didn’t have enough time to deal with each person individually, so I created investment funds (REIT’s) that could handle hundreds of investors who all wanted the same thing (high income and limited risk).
Over the years, I created and managed three separate real estate investment funds. Our funds purchased approximately 10,000 Tax Certificates (Liens and Deeds) from delinquent real estate property taxes. The 3,300 County Treasurers and 1,400 Municipalities all sell Tax Certificates on local real estate when the property owner failed to pay the yearly property taxes. The certificates are sold to any investor. Our three prior investment funds purchased properties that had a County Treasurers assessed value of over $1 Billion. Our funds purchased the Tax Certificates for approximately $10 Million cash.
Our investment funds also acquired over 200 houses for cash. We renovated most houses that we acquired through foreclosure, bankruptcy or short sale during the prior real estate crash from 2008 to 2013. Most of the renovated houses were rented for a few years before we sold them producing net profits for our investors. I believe the current 2022/2023 recession in real estate will be similar to the 2008 crash in real estate and the economy which will provide great opportunities to investors to buy good properties at great reduced prices now.
For over 200 years, the County Treasurers and the Municipalities have sold millions of delinquent property Tax Certificates to Banks, Insurance Companies and to the public. Management expects all sold Tax Certificates to produce between 10% and 20% interest per year during the Counties pre set life of all sold Tax Certificate of 1, 2 or 3 years. All purchased Tax Certificates are either redeemed or the property is acquired or they will eventually become worthless.
Each year, approximately 95% or more of all sold Tax Certificates are redeemed by the property owner, their heirs or the first mortgage lender on the property. If the Tax Certificate isn’t redeemed on time, then the buyer of the Tax Certificate will receive from the County Treasurer a check or wire for the original cost of the redeemed Tax Certificate and the accrued earned interest to the date it was redeemed. Every year, there are a few Tax Certificates that aren’t redeemed and the owner of each purchased Tax Certificate (Lien) has the legal right to foreclose on the Tax Certificate property and acquire the property title to use, rent or sell. The investor that purchased the Tax Certificate (Deed) already owns the property Deed, so once the redemption time expires, they can already use, rent or sell the property.
I started my financial career in 1970 with a Wall Street Securities Firm in Beverly Hills, Ca. I was a fully licensed stock broke for 10 years. I received a Juris Doctor Degree in Law and built several successful investment business. Along the way, I made a few million for my family.
I always enjoyed investing in real estate so in 2003, I created and was the President / CEO of three separate real estate investment funds (REIT’s) during the next 20 years , I wrote the PPM Disclosure Prospectus for each investment fund and had our Securities Attorney review each prospectus before we filed each offering with the State of Nevada and the SEC. Each of our investment funds was a Regulation D, 506 C offering. Each investors had to be accredited and had to prove that they meet the SEC’s suitability requirement of being a millionaire not including their home.
I acquired a Realtor Broker & Property Manager License in Las Vegas, Nv. I acquired a real estate Agents License in Orange County, Ca and I also acquired a real estate Agents License is Austin, Tx. I was a Licensed Investment Advisor for 10 years and a College Instructor in Business, Real Estate and Law for life in California. My wife and I lived in Southern California for 45 years before we move to Austin, Tx to be near our grandkids.
Our funds worked with a full team of management experts, Broker Realtors, local repair crews, property insurance, bookkeeper, CPA. And our lawyers. We used Home Depot and Lowes mainly to buy for cash, all of the items and supplies our funds properties needed to repair them to rent and sell.
During the last 20 years, I managed three separate investment funds at the same time. In 2021, I shut down the last two operating funds. Each of my investment funds had its own website so all investors could receive fund information and necessary documents online.
The first investment fund I created, was the Tax Lien Income Fund I, LLC, the second investment fund was the Yield & Profit Lien Fund I, LLC and the third investment fund was the Distressed Realty Fund I, LLC. The website for this last fund was the distressedrealtyfund.net. Most of our approximately 200 accredited investors invested their IRA / Pension money into our funds.
The management of our newest investment fund “Rental & Net Profit Fund I, LLC”, expect our investors will receive approximately 1% per quarter / 4% per year from the interest earned on the redeeming Tax Certificates and the rents received on all rented properties. The Investors will also receive a 75% share of all net profits produced from the sale of all owned properties throughout the operating life of the fund.
Our new investment fund is planning to raise $25,000,000 from accredited investors to purchase under valued and under priced real estate for cash. Management doesn’t plan to place mortgages on any of our funds specific properties, however, management may use the fund’s total assets to arrange a limited operating line of credit to provide the needed capital at specific times to enhance the funds ability to buy at great prices and to hold desirable properties for specific periods of time. Management must always hold cash in its bank account to be able to pay operating expenses and quarterly investor payments.
Each purchased investment unit in our new fund, will be $25,000. The fund plans to issue 400 units to new investors. Management reserves the right to sell additional units if the demand is sufficient. Investors can buy as many units as they want. I expect the fund will be ready to file the offering prospectus in Las Vegas, Nevada and with the SEC, during the summer of 2023.
If you are an accredited investor and want additional information about our up coming real estate investment offering, please email me at [email protected]
. We currently live in Austin, Texas 78738 which is near our grandkids. In 2021, we moved to Austin from Newport Beach, California were we lived near the Ocean for the prior 24 years.