Frequently Asked Questions
Thrive FP helps you understand each investment, the risks, and our approach so you can make confident decisions.
Frequently Asked Questions
We enjoy educating and
empowering our investors.
At Thrive, we educate each investor about our business so that you can understand the risks and rewards of each investment in order to make the most informed decisions. We do our best to cater our information to your degree of knowledge and expand your understanding with every opportunity. It is important to know that there is an inherent risk to any investment opportunity. We want you to understand our due diligence process, and the variables that we assess, in order to determine what makes a Thrive-worthy investment opportunity.
Why Choose Thrive FP?
Equity Program FAQs
Today’s market rewards disciplined investors. After interest rate increases and a slowdown in transactions, pricing has adjusted, competition has eased, and opportunities exist to acquire quality assets at more rational valuations. While rates are higher than the prior cycle, they remain within historical norms, making cash flow, underwriting discipline, and asset quality the primary drivers of returns.
We focus on income-producing properties in sub-markets with strong long-term demand. Our strategy includes value-add opportunities for shorter holds and stable assets for longer-term cash flow and appreciation. Workforce housing remains a core focus due to its resilience across market cycles, alongside selective Class A and B acquisitions.
- We focus on the Texas market because population growth drives multifamily demand, and Texas continues to lead the nation in numeric gains. Between July 2023 and July 2024, Texas added nearly 563,000 new residents — more than any other state during that period. The Texas Tribune
- Texas’ total population now exceeds 31 million people, with growth fueled by domestic and international migration as well as natural increase. The Texas Tribune
- Major metros like Dallas–Fort Worth, Houston, Austin, and San Antonio continue to attract residents due to job opportunities, relatively lower cost of living, and quality of life. BKV Energy
- Companies are also expanding or relocating here, drawn by no state income tax, a large and growing workforce, and business-friendly conditions, which further supports job creation and housing demand. letsgetmovingusa.com
- Thrive FP is involved in all aspects of your investment process, from diligence, acquisition and financing, to management and operations. Once all information is gathered, we post it online so that potential investors can be educated fully on the deal. On most offerings, you will get quarterly updates and distributions (when available) with a detailed, but easy to understand update on your investment.
- Thrive FP takes a conservative approach in its general investment practices, including the structuring and sponsorship of its investment offerings. We focus on properties in the largest Texas cities, namely: Austin, San Antonio, Houston and Dallas. We place a strong emphasis on commercial properties, particularly apartments and Senior Housing.
In compliance with applicable securities laws, Thrive FP is required to have potential investors complete a Confidential Questionnaire (“CQ”) establishing “Accredited Investor” status prior to receiving an actual Offering (Private Placement Memorandum) to review. The questionnaire covers questions about an individual’s income and net worth. For more information, please contact our office at (512) 692-4195 or email us at info@thrivefp.com.
Equity Program FAQs
Today’s market rewards disciplined investors. After interest rate increases and a slowdown in transactions, pricing has adjusted, competition has eased, and opportunities exist to acquire quality assets at more rational valuations. While rates are higher than the prior cycle, they remain within historical norms, making cash flow, underwriting discipline, and asset quality the primary drivers of returns.
We focus on income-producing properties in sub-markets with strong long-term demand. Our strategy includes value-add opportunities for shorter holds and stable assets for longer-term cash flow and appreciation. Workforce housing remains a core focus due to its resilience across market cycles, alongside selective Class A and B acquisitions.
- We focus on the Texas market because population growth drives multifamily demand, and Texas continues to lead the nation in numeric gains. Between July 2023 and July 2024, Texas added nearly 563,000 new residents — more than any other state during that period. The Texas Tribune
- Texas’ total population now exceeds 31 million people, with growth fueled by domestic and international migration as well as natural increase. The Texas Tribune
- Major metros like Dallas–Fort Worth, Houston, Austin, and San Antonio continue to attract residents due to job opportunities, relatively lower cost of living, and quality of life. BKV Energy
- Companies are also expanding or relocating here, drawn by no state income tax, a large and growing workforce, and business-friendly conditions, which further supports job creation and housing demand. letsgetmovingusa.com
- Thrive FP is involved in all aspects of your investment process, from diligence, acquisition and financing, to management and operations. Once all information is gathered, we post it online so that potential investors can be educated fully on the deal. On most offerings, you will get quarterly updates and distributions (when available) with a detailed, but easy to understand update on your investment.
- Thrive FP takes a conservative approach in its general investment practices, including the structuring and sponsorship of its investment offerings. We focus on properties in the largest Texas cities, namely: Austin, San Antonio, Houston and Dallas. We place a strong emphasis on commercial properties, particularly apartments and Senior Housing.
In compliance with applicable securities laws, Thrive FP is required to have potential investors complete a Confidential Questionnaire (“CQ”) establishing “Accredited Investor” status prior to receiving an actual Offering (Private Placement Memorandum) to review. The questionnaire covers questions about an individual’s income and net worth. For more information, please contact our office at (512) 692-4195 or email us at info@thrivefp.com.
Thrive Lending Program FAQs
Yes, in rare instances Thrive FP has had to foreclose on properties. In all of these instances, Thrive was able to recover principle and interest from these foreclosures. It is worth noting that while our firm “cherry picks” the best loans and borrowers available in this economy, foreclosures can still happen. Due to this reality, should a foreclosure occur, we have measures in place to effectively address the issue. When foreclosures happen, due to the large amount of equity, it is possible for the loan to be fully repaid via sale and return a profit exceeding the expected yield; however, there is a potential for a loss to occur. If a loss is in fact recognized, its more common that losses are minimal still preserving the principal. Please note that reasonable and standard administration and legal fees will apply in the situation of a foreclosure; please see the loan servicing agreement for details. As a fund, if there was a loss of principle, your overall return is based on the overall performance of all the loans in the pool, not just one instance.
Traditional financial institutions, such as banks and mortgage companies, often require up to 90 days and have a very certain “box” of loan criteria they have to stick by. Thus, in order to fund a transaction, and often due to heightened restrictions, they are not in the position to make certain types of loans.
Since our borrowers typically need quick or “out of the box” financing to secure their property, Thrive Lending offers an attractive solution. Our company, in conjunction with its private lenders, has closed loans in as little as five business days. We have an important niche in the market, thereby creating a tremendous opportunity for our private lenders to earn high yields.
Remember that these are short-term bridge loans, and our loans even at the higher rates are still much less expensive than a borrower having to bring in an investment partner and split the profits.
As in the case of cash transactions, our buyers can sometimes negotiate better terms with sellers, especially when dealing with quick financing that is not subject to standard qualifying methods. Another good example of this is commonly known as a pre-foreclosure “short-sale“ where a bank settles for less than owed on the property to guarantee a quick sale and to avoid either a lengthy foreclosure process and/or additional marketing expenses on their behalf.
A trust deed or deed of trust is a security instrument for real estate loans. The particulars of the loan are detailed in a separate promissory note and the trust deed is recorded at the county recorder’s office. The trust deed serves legal notice to the world that the subject property is pledged to secure a loan.
By definition, Private Money Lending is a short-term, asset-based loan. Private Money Lenders are individuals or companies offering a specialized type of real estate backed loan. Private Money Lenders provide short-term loans, also called bridge loans. Traditionally, Private Money was just for difficult loans. The market has changed and Private Money serves a niche within the market, typically ideal for new construction, properties that need rehabilitation, and builders or borrowers with low credit scores.
Yes! Banks have been placing stricter regulations on loans – even those from qualified borrowers with sensible properties. This opens up the field of Private Lending to act as the bank. Current market and banking conditions mean that we’re able to invest in bank quality assets, oftentimes with good borrowers who may have low credit. This type of scenario can generate great returns on our investments.
- Multifamily demand is going to be the highest where population growth is the highest.
- Thrive focuses on the Texas market because it has had the largest population growth of any state since 2010 (more than 2.5 million people).
- 1,183 people moved to Texas per day between 2015 and 2016 (largest in the country).
- Like most population booms, the increase is largely due to job growth. Texas has always been an oil and gas state going back 100+ years. However, Texas is also growing rapidly in the Tech Industry (Austin), Healthcare (Houston), and general corporate headquarters (Dallas).
- Texas has no state income tax, lower business regulations, and lower labor costs (“right to work state”). For these reasons, among others, companies are relocating to Texas. California lost 1,150 companies from 2008 to 2014 due to relocation. Texas was at the receiving end of 219 of those moves, more than any other state (15%).
The Private Money Lender may earn anywhere from 8 to 11% interest annually, paid monthly. Terms are typically 6 to 24 months. The minimum loan amount is $1,000,000. Secured first liens are Thrive FP’s focus, but we will do some second liens with our lenders for those investors who want a higher return. Investors must be accredited.
In compliance with applicable securities laws, Thrive FP is required to have potential investors complete a Confidential Questionnaire (“CQ”) establishing “Accredited Investor” status prior to receiving an actual Offering (Private Placement Memorandum) to review. The questionnaire covers questions about an individual’s income and net worth. For more information, please contact our office at (512) 692-4195 or info@thrivefp.com.
Thrive FP is involved in all aspects of your investment process, from being the direct liaison to the borrower to handling all of the underwriting. Once all information is gathered, we post it online so that potential investors can be educated fully on the deal. We also handle the loan processing; Thrive FP oversees the loan origination, funding of the loan and also the underwriting. One of the most important services we offer is working with our trusted title companies. Thrive FP handles all of the details to make for a smooth loan.