The Home Next Door

F6 Care Home Equity II (CHEQ II) is a $25M real estate fund that acquires residential assisted living homes below replacement cost and leases them triple-net to experienced, licensed operators. The fund targets a 10% stabilized cash yield and a 19% net IRR, paid through quarterly distributions. It builds on F6 Care Home Equity I, whose two Scottsdale homes are both 100% occupied.

CHEQ II is designed as a 5-year, income-producing investment, with quarterly distributions throughout. The fund term runs 5 years from the final closing, with the option to extend up to 3 additional years to time the exit for the best result.

CHEQ II is open to accredited investors under Rule 506(c) of Regulation D. Individuals generally qualify with a net worth over $1 million (excluding their primary residence), with income over $200,000 ($300,000 joint) in each of the last two years, or by holding a Series 7, 65 or 82 license. A CPA, attorney, registered investment adviser or broker-dealer confirms your status with a simple verification letter that F6 provides. Individuals, trusts, IRAs and entities can all participate.

Distributions are paid quarterly by ACH directly to your bank account. The fund targets a 10% stabilized cash yield, with projected yields growing from about 5% in year one, as homes are acquired and stabilized, to roughly 10–11% by years four and five. Investors earn an 8% preferred return before F6 shares in any profits.

The minimum investment is $100,000, unless otherwise approved by the Managing Member. You don’t fund it all up front. Capital is called in installments as acquisitions close, with two weeks’ notice before each call.

Like any real estate investment, CHEQ II carries risk, including the possible loss of capital. The main risks are operator performance, state licensing and regulation, the fund’s limited liquidity, and leverage. For each one, F6 has a clear plan to manage it: carefully vetted operators backed by a required operating playbook, a bench of replacement operators, fixed-rate debt, and ownership of every home’s real estate. For a complete discussion of the risks and how F6 mitigates them, download the full CHEQ II Investor FAQ.