How the Economics Work
See exactly how the numbers work — for flips, holds, and short-term rentals.
Complete Fee Reference
| Fee | Amount | When Collected | Notes |
|---|---|---|---|
| Onboarding Fee | $2,500 | Upon acceptance | One-time only — never repeated |
| Capital Fee | 5% of invested capital | Upon deployment | Per project |
| Profit Share | 5% of net profits | Upon exit | $0 if unprofitable |
| Hold Management | 8–10% of gross rent | Monthly | Hold strategy only |
| STR Management | 15–20% of gross revenue | Monthly | STR strategy only |
Worked Example: Fix-and-Flip
$100,000 invested, 6-month project cycle
| Line Item | Amount |
|---|---|
| Purchase Price | $180,000 |
| Closing Costs (purchase) | $5,000 |
| Renovation (R² Remodeling) | $45,000 |
| Holding Costs (6 months) | $8,000 |
| Selling Costs (~6%) | $15,000 |
| Total Project Cost | $253,000 |
| Your Capital | $100,000 |
| Financing | $153,000 |
| Sale Price (ARV) | $295,000 |
| Gross Profit | $42,000 |
| Onboarding Fee (first project only) | -$2,500 |
| Capital Fee (5% × $100K) | -$5,000 |
| Profit Share (5% × $42K) | -$2,100 |
| Total Redoubt Fees | $9,600 |
| Your Net Profit | $39,900 |
| Your ROI (6-month project) | 39.9% |
Note: On subsequent projects, the $2,500 onboarding fee is not repeated — improving returns by 2.5 percentage points.
Worked Example: Buy-and-Hold
$100,000 invested, long-term wealth building
Phase 1 — Acquisition
| Line Item | Amount |
|---|---|
| Purchase Price | $150,000 |
| Closing Costs | $4,000 |
| Renovation (R² Remodeling) | $40,000 |
| Holding Costs (4 months) | $5,000 |
| Total Investment | $199,000 |
| Your Capital | $100,000 |
| Financing | $99,000 |
| After Repair Value (ARV) | $240,000 |
| Refinance (75% LTV) | $180,000 |
| Capital Returned via Refinance | $81,000 |
| Capital Still Invested | $19,000 |
Phase 2 — Ongoing Annual Economics
| Line Item | Monthly | Annual |
|---|---|---|
| Gross Rent | $1,800 | $21,600 |
| Mortgage Payment | -$950 | -$11,400 |
| Property Management (10%) | -$180 | -$2,160 |
| Insurance + Taxes | -$250 | -$3,000 |
| Maintenance Reserve (5%) | -$90 | -$1,080 |
| Net Cash Flow | $330 | $3,960 |
Total Annual Wealth Building
Worked Example: Short-Term Rental
$150,000 invested, premium rental income
Acquisition
| Line Item | Amount |
|---|---|
| Purchase Price | $200,000 |
| Closing Costs | $5,000 |
| Renovation (R² Remodeling) | $55,000 |
| Furnishing + Staging | $15,000 |
| Platform Setup + Photography | $3,000 |
| Total Investment | $278,000 |
| Your Capital | $150,000 |
| Financing | $128,000 |
Ongoing Annual Economics
| Line Item | Monthly | Annual |
|---|---|---|
| Gross Rental Revenue | $4,200 | $50,400 |
| STR Management Fee (18%) | -$756 | -$9,072 |
| Mortgage Payment | -$680 | -$8,160 |
| Insurance + Taxes + HOA | -$350 | -$4,200 |
| Cleaning / Turnover | -$400 | -$4,800 |
| Supplies + Maintenance | -$200 | -$2,400 |
| Platform Fees (~3%) | -$126 | -$1,512 |
| Net Cash Flow | $1,688 | $20,256 |
Tax Advantages — The STR Depreciation Strategy
Under the One Big Beautiful Bill Act (July 2025), 100% bonus depreciation is permanently restored with no sunset date. Combined with a cost segregation study, a $278,000 STR property can generate $60,000–$90,000 in Year 1 depreciation deductions.
Because STRs with average stays under 7 days are classified as active businesses (not passive rentals) under IRC Section 469, investors who materially participate can deduct these losses against W-2 and ordinary income — not just against other rental income.
At a 32–37% marginal tax rate, this translates to $19,000–$33,000 in Year 1 tax savings — often exceeding the property's annual cash flow. Your financial partner coordinates cost segregation studies and tax strategy as part of the Redoubt service team.
How Our Interests Align
Every part of our fee structure is designed so Redoubt earns more only when you earn more. Here is how that alignment works in practice.
Profit Share = Skin in the Game
Our 5% profit share means we earn nothing unless you profit. Zero profit equals zero fee.
In-House Construction
R² Remodeling is wholly owned. Renovation quality and cost control are built into our business, not outsourced.
Transparent Invoicing
All partner costs passed through at actual cost. No markup. You see every invoice in your portal.
Direct Ownership
Your property, your LLC. You hold a tangible asset, not fund units or paper claims.
Capital-First Model
Both sides are committed before work begins. Your funded capital means our sourcing effort is backed by ready resources.
One Deal at a Time
New investors start with one project. Every deal gets our full operational attention.
There is no scenario where Redoubt benefits from a mediocre outcome. Our revenue goes up only when your returns go up.
What You'd Pay Without Us
These costs don't disappear with Redoubt — they're paid from the project fund, but fully managed by our team through vetted, SLA-bound partners. You see every invoice at actual cost in your portal. No markups, no surprises.
| Service | DIY Cost (You Find & Manage) | With Redoubt (Managed for You) |
|---|---|---|
| Real estate attorney | $1,500–$3,000/deal | Managed — actual cost |
| Buyer's agent commission | 2.5–3% of purchase | Managed — actual cost |
| Wholesaler assignment fee | $5,000–$15,000/deal | Managed — actual cost |
| Property inspection | $400–$600 | Managed — actual cost |
| Deal analysis / underwriting | $500–$2,000/deal | Managed — actual cost |
| Contractor management | Your time + 30–50% markup | R² at 20% cost-plus |
| Project accounting + tax prep | $2,000–$5,000/year | Managed — actual cost |
| Total DIY (flip, not counting your time) | $10,000–$25,000+ per deal | $7,500 ($9,600 w/ onboarding) |
The real savings: You pay the same professional fees either way — but with Redoubt, every partner is vetted, SLA-bound, and managed as part of a coordinated team. The DIY estimate also doesn't include the most expensive cost: the mistakes you'd make learning by doing. One bad contractor, one overpriced acquisition, one missed legal protection — any one of those can cost more than all of Redoubt's fees combined.
The Fine Print, in Plain English
- All fees are documented in your investor agreement before you invest a dollar
- Partner invoices are visible at actual cost in your portal — no markups, no processing fees
- No annual fees, no subscription charges, no platform access fees
- R² Remodeling operates cost-plus with a fixed 20% transparent margin
- The onboarding fee is paid once and never repeated
- Profit share is assessed only on net profit — zero if unprofitable
- Hold and STR management fees are competitive with independent property managers
Ready to See These Numbers in Action?
Schedule a consultation and we will walk you through projections tailored to your investment goals and preferred strategy.