Investment Glossary

After Repair Value (ARV)

The estimated market value of a property after all planned renovations are completed. ARV analysis is a key metric in Redoubt's underwriting process for determining potential project ROI.

BRRRR Strategy

Buy, Rehab, Rent, Refinance, Repeat — a hold-strategy variant where the investor acquires and renovates a property, rents it to establish income, refinances to recover capital, and repeats the process with the recovered funds.

Capital Call

A request for the investor to transfer committed funds into the project-specific LLC escrow account. In Redoubt's capital-first model, capital is committed before properties are sourced on the investor's behalf.

Capital Deployed

The total amount of investor funds that have been invested into active or completed projects.

Capital Fee

A project fee charged by Redoubt Capital that covers property sourcing, expert validation, due diligence, acquisition negotiation, and closing coordination. The Capital Fee is disclosed in the operating agreement before any capital is committed.

Capital Queue

The placement list for onboarded investors who have committed capital and are awaiting property sourcing. After funding their LLC escrow account, an investor enters the capital queue and Redoubt's acquisition team sources and validates a property on their behalf.

Charlotte Metro

Redoubt Capital's target investment geography, encompassing the Charlotte metropolitan area including surrounding counties in both North Carolina and South Carolina.

Contingency Reserve

A budget line item (typically 5-10% of renovation costs) set aside to cover unexpected expenses during renovation.

Cost-Plus

A construction pricing method where the contractor charges actual material and labor costs plus a transparent markup. R² Remodeling operates on a cost-plus basis for all Redoubt Capital projects with no third-party markup.

Creative Finance

Non-traditional funding methods used in real estate investment, including seller financing, subject-to acquisitions, and the BRRRR strategy. Redoubt Capital evaluates creative finance options on a deal-by-deal basis where they can improve returns or reduce risk for the investor.

Deal Pipeline

The internal queue of potential investment properties being evaluated by Redoubt's acquisition team on behalf of investors. Properties progress from initial sourcing through expert validation and acquisition. Sources include wholesalers, off-market deals, MLS listings, foreclosures, and network referrals.

Downside Modeling

A risk analysis technique used during underwriting that projects financial outcomes under adverse scenarios (e.g., lower sale price, higher renovation costs, longer hold times) to ensure a deal remains viable even in less-than-ideal conditions.

Due Diligence

The investigation and analysis phase before acquiring a property, including inspections, title searches, market analysis, ARV analysis, downside modeling, and renovation cost estimation.

Dynamic Pricing

Automated rate adjustment for short-term rental (STR) properties based on demand, seasonality, local events, and competitor pricing. Dynamic pricing tools maximize revenue by optimizing nightly rates in real time.

Expert Validation

Redoubt Capital's rigorous multi-step property validation process performed before every acquisition. Includes market analysis, ARV assessment via comparable sales, professional inspection, renovation scope and budget verification by R² Remodeling, title search, and financial modeling. Only properties passing all criteria are acquired on behalf of investors. This systematic approach replaces individual investor deal approval with consistent, expert-validated criteria.

Flip

An exit strategy where the investor chooses to purchase a property, renovate it, and sell it for profit within a relatively short timeframe (typically 6-12 months). The exit strategy is selected at the outset of each deal.

Gross Rental Income

The total rental revenue collected from a property before deducting operating expenses, management fees, or reserves. For hold-strategy and STR properties, gross rental income is the baseline figure used to calculate management fees and track portfolio performance.

Hold

An exit strategy where the investor chooses to purchase a property, renovate it, and retain it as a rental for ongoing income. The exit strategy is selected at the outset of each deal.

Investor

An individual who partners with Redoubt Capital on a real estate investment project, contributing capital and owning the property directly through a dedicated project LLC. There is no accredited investor requirement.

K-1 (Schedule K-1)

An IRS tax form issued by the LLC to each member reporting their share of income, deductions, and credits for the tax year.

LLC (Limited Liability Company)

A business structure that provides liability protection to its members. Each Redoubt Capital project uses a dedicated single-purpose LLC with one investor per deal.

Membership Interest

An investor's ownership share in a project LLC, determining their percentage of profits, losses, and voting rights.

Net Operating Income (NOI)

Total income from a property minus operating expenses, before debt service and taxes. Primarily relevant for hold-strategy projects.

Occupancy Rate

The percentage of available nights a short-term rental (STR) property is booked over a given period. Occupancy rate is a key performance metric for STR investments, tracked alongside average daily rate (ADR) and revenue per available night (RevPAN).

Onboarding Fee

A one-time, non-refundable $2,500 fee charged to new investors upon acceptance, covering account setup, legal documentation, and initial consultation.

One-Investor-One-Project

Redoubt Capital's Phase 1 policy that each investor may have only one active project at a time. An exception may be granted for investors with a minimum of two successful exits and 12 months in the Redoubt network.

Operating Agreement

The legal document governing an LLC's operations, member rights, profit distribution, management authority, and dissolution procedures.

Profit Share

A percentage of net profit earned by Redoubt Capital on the back end of a deal — only when the deal is profitable. If the project does not generate a profit, no Profit Share is owed.

Project Cycle

The complete lifecycle of an investment from capital commitment through property sourcing, expert validation, acquisition, renovation, sale or lease-up, and profit distribution — typically 6-12 months for flip projects.

Projected ROI

The estimated return on investment for a project, calculated as (Projected Sale Price - Total Costs) / Total Investment × 100. Redoubt targets a minimum 20% ROI for flip projects.

Punch List

A list of remaining items to be completed or corrected near the end of a renovation project before it can be considered complete.

R² Remodeling

Redoubt Capital's wholly owned in-house construction arm. R² Remodeling handles all renovations on a cost-plus basis with no third-party markup, ensuring cost transparency and schedule control.

Referral Bonus

A reward given to existing investors who successfully refer new qualified investors to Redoubt Capital.

Renovation Budget

The total estimated cost of all improvements planned for a property, including materials, labor, permits, and contingency.

ROI (Return on Investment)

The percentage gain on an investment, calculated as (Net Profit / Total Investment) × 100.

Self-Directed IRA/401(k)

Retirement accounts (Individual Retirement Account or solo 401(k)) that allow the account holder to invest in alternative assets such as real estate. The retirement account becomes the LLC member, and all returns flow back into the tax-advantaged account. Requires a qualified custodian that supports real estate investments.

Seller Financing

A property purchase arrangement where the seller provides the loan to the buyer instead of a traditional bank or mortgage lender. The buyer makes payments directly to the seller under agreed-upon terms. Redoubt evaluates seller financing opportunities where they improve deal economics.

Short-Term Rental (STR)

A property rented on a nightly or weekly basis through platforms such as Airbnb and VRBO. STR is a hold-strategy variant that typically generates higher per-night revenue than traditional long-term rentals but requires active management including dynamic pricing, guest communication, and turnover coordination.

Single-Purpose LLC

An LLC created to hold and manage a single property with one investor, providing clean liability isolation and direct ownership. The securities structure is designed to avoid registration requirements.

Subject-To

A real estate acquisition method where the buyer acquires a property subject to the existing mortgage remaining in place. The deed transfers to the new owner, but the original loan stays in the seller's name. This creative finance technique can reduce upfront capital requirements.

Title Insurance

Insurance that protects the owner and lender against financial loss from defects in the title to a property.

Title Search

An examination of public records to confirm legal ownership of a property and identify any liens, encumbrances, or claims.

Turnover Coordination

The management process between short-term rental (STR) guest stays, including checkout verification, professional cleaning, linen and supply restocking, property inspection, and preparation for the next guest. Turnover coordination is included in Redoubt's STR management fee.

Underwriting

The process of evaluating a potential deal's financial viability, including ARV analysis, renovation cost estimation, downside modeling, and confirming a minimum 20% ROI target for flip projects.

Vertical Integration

A business model where one company controls multiple stages of production or service delivery. Redoubt Capital controls deal sourcing, underwriting, acquisition, renovation (via R² Remodeling), project management, financial services, and disposition.

Wholesaler

A person or company that contracts to buy properties at below-market prices and assigns or sells the contract to an investor for a fee. Wholesalers are one of several deal sourcing channels used by Redoubt Capital.