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The Rocfey model4 min read

Stage 1 vs. Stage 2 investing

The two entry points into individual Rocfey deals, and how their risk and return profiles differ.

Every individual Rocfey property is offered at one of two clearly labeled stages, so investors can choose the risk and return profile that fits them.

Stage 1 - Pre-buildout

Stage 1 is the earlier entry point: the property is identified or acquired and plans are prepared or approved, but the buildout is not complete and there is no lease income yet. It targets higher returns in exchange for higher execution risk - construction, licensing, and operator placement all still lie ahead.

Stage 2 - Stabilized

Stage 2 is the later entry point: the home is built out, licensed, and leased to an operator that is already in place, producing stabilized lease income. It targets a lower but more predictable return, with less execution risk and more emphasis on operator and regulatory factors.

Choosing

Investors seeking upside who can accept execution risk and a longer path to income may prefer Stage 1. Investors seeking more stabilized cash flow may prefer Stage 2. Each opportunity lists its specific risks.

This material is for educational purposes only and is not investment, legal, tax, or accounting advice. It is not an offer to sell or a solicitation to buy any security. All investments involve risk, including possible loss of principal. Target returns are illustrative and not guaranteed.

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