Frequently Asked Questions

Straight answers to the questions investors ask us most.

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The Company

Single-family home development with resale values ranging from $1.5M to $3.0M across affluent towns in central and northern New Jersey.

Prawdzik is a homebuilder that runs a lean operation across central and northern New Jersey counties. Our current organization includes departments such as construction, warranty, design, sales, marketing, finance, and operations.

To help fuel growth and backfill our equity, so we aren't tying up too much of our own cash in projects, while providing lucrative returns to our investors.

How the Investment Works

It isn't one of our main capital-raising offerings, but it can be discussed.

It varies based on the investment's return profile and deal structure.

All projects are individualized, and capital is deployed in order of project priority.

Most projects are already in progress, and investments are used to backfill GP equity. We are an operating business — we don't wait for LPs to invest.

Your capital and returns get paid back ahead of any GP equity.

Returns, Risk & Taxes

Our projects are always conservatively modeled, and our pro formas are always positive — in the absolute worst case, break-even. There have been situations where net profits missed targets due to different factors, but Prawdzik has always executed as efficiently as possible to ensure maximum investor returns.

There is no “guarantee” when it comes to investing, so we don't offer any guarantees of financial security. What we do guarantee is a heavily underwritten, conservative, risk-adjusted investment opportunity, where your capital is returned on a preferred basis in relation to the GP common equity.

Our buyer profile is the upper-middle-class family, which is less sensitive to volatile interest-rate environments. We also focus heavily on brand building to increase our visibility to buyers and our ability to pre-sell our homes. Pre-selling is exactly what eliminates disposition risk in our business model.

This investment offering focuses mainly on heavy value-add appreciation through development and value creation. Tax-advantaged investing through depreciation and/or other means is not the main objective of the investment vehicle. Please consult a tax professional before investing.

Transparency & Reporting

We value transparency. With notice, meetings can be set up at our projects. In addition to in-person visibility, we send all investors a monthly portfolio newsletter detailing the current performance of the whole portfolio.

All data in our data rooms, decks, and summaries is updated and adjusted monthly to ensure it stays current. Investment opportunities are actively changing and being adjusted to match the level of risk involved, so be sure to ask us for the latest version of any material you receive.