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Owner-Caused Value Changes

DFW Properties investments are intended to shield investors from gains from [effort or investment] or losses from [negligence or uninsured damages] that result for actions or inactions by the property owner and/or the property's tenants.
Owner-Initiated Property Improvements
The homeowner may request an “improvement credit” to exempt investors from gains associated with material improvements (such as remodeling, adding a bedroom, etc.). The way this works is that an independent appraiser reviews the original appraisal, reviews the work done to the property and makes a subjective assessment of the value increase (or decrease) of the completed work on the property. This amount gets subtracted from the gross sale price when calculating investors’ returns. The actual money invested in the remodeling is immaterial.
Owner-Caused Property Damage
In the event the owner neglects to maintain the condition of the property, or has performed some act that has diminished the property’s value, the Investor may demand an evaluation of the owner-caused damage by an appraiser, who can compare the then-current state of the property to the original appraisal report and supporting photographs to make an independent evaluation of the owner-caused devaluation. This amount would then be added to the terminal fair market value for the purpose of calculating the investor’s proceeds.
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