United Development Funding III (“UDF III”) L.P.
(Please note that UDF III is closed to new subscriptions.)
Historically available to large institutional investors, UDF III offers the individual investor the opportunity to participate in an attractive alternative to traditional real estate investments. Our investment approach for UDF III is based on an established business model, extensive real estate finance experience and strategic, long-standing relationships in the housing industry. Our flexible financing structure enables us to respond quickly in an industry with significant capital needs and limited resources to meet those needs.
Our investment strategy is based on financing the acquisition and development of land for median-priced residential housing.
Our investment strategy is based on financing the acquisition and development of land for median-priced residential housing. Land acquisition is the critical first step in the launching of any neighborhood development. While most traditional real estate investments focus on the end product, UDF III takes advantage of the opportunity to offer solutions to homebuilders and developers long before the sale of the individual home lots.
Our intended portfolio of loans will predominately consist of short-term land acquisition and development loans, generally 24 to 36 months in length. Our interest income will be scheduled monthly with principal repaid upon sale of the single family lot and will not be contingent upon the construction and sale of individual homes. Through extensive market research and analysis, UDF III will target markets with strong local economies and sustainable growth. In many cases, the single family lot developments we plan to finance will have been pre-sold to national homebuilders. We believe this investment strategy will deliver risk-adjusted returns.
|Loans for the acquisition and development of single-family residential lots|
|Strategic alliances with national and large regional residential homebuilders and developers|
|Select geographic markets with moderate to strong growth trends|
UDF III is committed to offering innovative, forward-thinking solutions with the goal of:
- Providing attractive income with immediate cash flow
- Preserving, protecting and returning capital contributions
- Delivering earnings stability through monthly distributions
There can be no assurance the investment objectives described herein will be achieved. An investment is subject to substantial risks. These risks include absence of a public market for these securities, lack of an operating history, absence of loans identified for acquisition, limited transferability and lack of liquidity, possibility of substantial delay before distributions are made, reliance on the fund’s general partner, payment of significant fees to the general partner and its affiliates, potential conflicts of interest, and lack of diversification in mortgage loans until significant funds have been raised.