The recent launch of the Cash Flow Bonds Reg A+ fund marks a significant departure from the high minimums and exclusivity that characterize most private equity offerings. As managing partners of PassiveInvesting.com, we’ve built our reputation on acquiring and operating institutional grade real estate assets for accredited investors. Now we’re using that same discipline to open a gateway for investors who have been shut out of the private markets or who want a low friction way to test our platform. Visit www.cashflowbonds.com to invest now.
Why a Reg A+ Fund?
Regulation A (often called “Reg A+”) is one of the most investor friendly exemptions created by the JOBS Act. It allows companies to raise up to $75mil annually from both accredited and non accredited investors, provided the offering is qualified by the SEC. For non accredited investors, this is one of the few ways to access private offerings without having to meet net worth or income thresholds. For accredited investors who have been curious about our firm but haven’t yet invested, a Reg A+ bond is a low commitment way to get familiar with our processes before allocating larger amounts.
We filed our offering circular with the SEC, and the commission has qualified it. Qualification does not imply endorsement; it simply means we’ve met the disclosure requirements. You can view the offering statement on the SEC website. As always, these are illiquid private placements; investors should be prepared to hold for the full term and understand the risks.
Three Terms, Fixed Returns
The fund offers three bond durations with increasing yields to reward longer commitments:
- 12-month bond: 6% fixed annual interest
- 24-month bond: 7% fixed annual interest
- 36-month bond: 8% fixed annual interest
Interest compounds daily, which boosts the effective yield compared to simple interest. At the end of the term, the principal and all accrued interest are available for distribution. Investors cannot withdraw principal early, so choose a term that aligns with your liquidity needs. The interest rate is not variable; you are not exposed to market volatility or Fed rate changes for the duration of your note.
Minimum Investment: $1,000
Historically, our minimum investment for accredited offerings has been $50k-$100k. That barrier has kept out many family members and friends of accredited investors who are curious about passive income but can’t commit five or six figures. By setting the minimum at $1k for this Reg A+ fund, we’re deliberately lowering the entry point. This makes it an attractive option for:
- Non accredited relatives and friends of current investors who want to dip a toe into passive real estate lending.Accredited investors who have yet to invest with us and would like a smaller, trial position before committing larger sums.
- Investors seeking fixed-income diversification: the predictability of a fixed interest note can complement equity holdings and public market investments.
How the Capital Is Deployed
Cash Flow Bonds invests primarily in short duration, asset backed real estate notes and loans. Our core business, through PassiveInvesting.com, has always emphasized recession resistant assets like multifamily and self storage. For the bonds program, we originate or purchase loans secured by real estate, focusing on:
- Hard money and bridge loans backed by real property.
- Business purpose loans to experienced operators with collateral coverage.
- Equipment loans where the asset itself provides a security interest.
By staying senior in the capital stack and lending against tangible assets, we aim to reduce principal risk relative to equity investments. When a borrower defaults, we have recourse to the collateral. That said, defaults do occur, and recovery can be lengthy. Fixed income bonds are not risk free; there is a risk of principal loss and illiquidity.
Compounding Daily: The Power of Time
One subtle but important feature of our bonds is daily compounding. Most private debt funds accrue interest monthly or quarterly. Daily compounding means that each day’s interest is added to principal, and the next day’s interest is calculated on the increased balance. Over a 12 month horizon, the difference versus annual compounding is modest, but as you extend to 24 or 36 months the effect becomes more noticeable. The compounding effect illustrates our philosophy: small efficiencies, applied consistently, help build wealth over time.
Alignment and Track Record
PassiveInvesting.com has built a reputation for disciplined underwriting and transparent reporting. We’ve syndicated over $2 billion in assets and maintained high repeat investor participation. The same leadership team—myself, Danny Randazzo and Kelli Garrett—oversees Cash Flow Bonds. We bring a complementary mix of financial expertise, operational discipline and marketing acumen. Our goal with this fund is not to chase yield but to provide a conservative, predictable return.
We also invest personally alongside our investors. That alignment matters: we have skin in the game. Additionally, because this is a debt product, we target assets where we feel confident about the borrower’s exit strategy. We favor conservative loan to value ratios and avoid highly speculative loans. Our underwriting team underwrites each loan with the expectation that we may need to take over the asset in a worst case scenario.
Who Should Consider This?
A fixed income bond is not for everyone. It may be a fit if you:
- Seek to diversify away from equities or other volatile assets.
- Prefer predictable cash growth rather than capital appreciation.
- Have idle cash earning little in a savings account and can afford to lock it up for 12–36 months.
- Wish to test our platform before investing in our larger equity funds.
- Want to introduce family members or friends to passive investing at a low minimum.
It is not a fit if you anticipate needing liquidity before the term ends, or if you are uncomfortable with private-market risks. These notes are illiquid; there is no secondary market. Also, because the interest rate is fixed, you won’t benefit if general rates rise significantly.
How to Participate
You can invest directly through our online portal after reviewing the offering circular. The portal provides account dashboards to track your balance and compounding progress. Funding can be done via ACH or wire, and interest starts accruing once your funds clear. At the end of your chosen term, you can withdraw your principal and accrued interest or roll it over into a new term.
Educating Yourself
We encourage prospective investors to educate themselves about private debt investing. Our “Learn & Grow” section features articles such as “Why Real Estate Debt Can Be Lower Risk Than Equity” and “What Is Regulation A and Why It Matters.” Debt investing prioritizes principal protection over upside; by sitting higher in the capital stack, you trade the potential of equity upside for more stable returns. Regulation A exists to democratize access but does not diminish the need for due diligence.
Final Thoughts
The Cash Flow Bonds Reg A+ fund represents our commitment to broadening access to passive real estate backed investing. With minimums starting at just $1,000, daily compounding interest, and fixed rates up to 8%. This offering could be an attractive gateway for non accredited investors or accredited investors who want to start small. It leverages our extensive experience in underwriting and managing assets while offering a simple, transparent product. As always, investors should read the offering circular, understand the risks of illiquidity and potential principal loss, and consult their advisors.
We’re excited to help a new cohort of investors begin their passive income journey and look forward to earning your trust. Visit www.cashflowbonds.com for more details.
