Compound Real Estate Bonds is a financial technology company, not a bank account. We are focused on making financial products more inclusive and accessible. We are a next generation customer centric company. We are striving to unlock financial freedom for all by building a simple, secure financial ecosystem that makes it possible for the consumer to compound their investments by taking advantage of investment assets that have historically been reserved for Wall Street, not Main Street.
We invest and loans money from bond proceeds in real estate assets across a diversified portfolio consisting of mortgages, residential, commercial, and industrial assets. The income generated through rents, interest, and capital appreciation from our real estate assets flows back to the company. Then, the interest owed is returned to the bondholder, and the process is repeated until funds are withdrawn.
By employing a 'value investing' strategy, we aim to build a diversified and resilient portfolio consisting of high quality cash generating real estate assets across a range of asset classes consisting of mortgages, residential, commercial, and industrial assets.
We aim to acquire these real estate assets across a range of sectors with varying risk, return, liquidity, time horizon and regions.
Our diversified approach is designed to deliver outperformance by generating sustainable income and competitive capital returns, while minimizing downside risk. This in turn allows us to provide a risk adjusted fixed 7.00% yield rate through Compound Bonds.
We also aim to empower communities, people, and businesses with access to capital that was historically denied to them. We give loans to underserved and underbanked populations, adding a human touch to the otherwise rigid world of finance.
It’s important to note that all financial investments involve an element of risk.
We have designed our real estate asset investing processes with the goal of being able to withstand economic downturns, and volatility. Based on our value investing strategy of acquiring assets for less than what we believe their intrinsic value to be, diversifying assets across regions, sector, risk and time horizon, and our use of technology and data science for investment acquisition: we believe that our portfolio from a liquidity, and risk management standpoint is well positioned.
Additionally, by investing bond proceeds into real estate; we gain access to what is historically the most solid and stable investment class.
Please read the "Risk Factors" section of our offering circular for a number of risks affecting our business. Our offering circular is available on our website. It’s important to note that all financial investments involve an element of risk, and our Compound Bonds are no exception.
Compound Bonds are not correlated to the stock market, so they are not tied to the volatility of the stock markets or interest rate fluctuations set by the Federal Reserve.
Compound bonds are private, non-publicly traded corporate bonds. As such, they are more resistant to downturns in the stock market compared to investments in publicly traded stocks.
The best investment assets used to be exclusively for the elite clients of huge financial institutions. We wanted to unlock this access for the everyday person, so we built our business around the business models of financial institutions that have been operating for generations on Wall Street and around the world.
Compound Real Estate Bonds's business model and operations are built based on the structure, strategies and principles of asset managers that manage funds for institutions and sovereign wealth funds. We are bringing institutional grade products that were once reserved for the Top 1% by financial behemoths for the everyday person.
We intend to have a diverse stream of income. First, we make a spread between what is paid to you (7%) as a bondholder and the return generated when the bond proceeds are put to work in loans and other investments.
Additionally, we will seek to earn rental income from the real estate assets we own, along with capital appreciation, interest payments, and other fees from loans.
Between interest on the loans made and the combination of other real estate investments, we believe that a greater return than the 7% will be generated, and we will seek to fund our operations using this difference.
A bond is a fixed-income instrument that represents a loan made by an investor to a borrower. In the capital stack, bondholders are in a higher position than being an equity owner because bondholders have a higher priority claim to assets of the company over common and preferred equity owners.
Generally, Bonds work by paying back a regular amount to the investor, also known as a “coupon rate,” and are thus referred to as a type of fixed-income security. For example, a $10,000 bond with a 10-year maturity date and a coupon rate of 7% would pay $700 a year for a decade, after which the original $10,000 face value of the bond is required to be paid back to the investor.
Compound Bonds are demand bonds with a 7% coupon rate, meaning that they earn a fixed 7.00% rate with interest compounded daily, and can be redeemed at any time.