VarelaFox Investments

VarelaFox Investments strategically focuses on the dynamic Texas real estate market. We pinpoint properties across various sectors – including residential, multi-family, and commercial opportunities – that offer strong potential for both consistent cash flow and long-term appreciation. Our deep understanding of local market trends and robust deal flow allows us to acquire undervalued or high-growth assets. A portion of the significant cash flow generated from these Texas properties is then strategically reinvested into Bitcoin, enabling us to harness the potential for amplified digital asset growth alongside our tangible real estate holdings.

A: Investing with VarelaFox is a streamlined process designed to provide accredited investors access to our unique real estate and Bitcoin-powered strategy. Here’s a general overview of the steps:

Initial Inquiry & Information Request: The best first step is to contact our investor relations team. You can typically do this through our website's contact form, by emailing us, or by scheduling an introductory call. We'll then provide you with detailed information about VarelaFox, including our investment philosophy, target returns, and the specific structure of our offerings.

Accredited Investor Verification: As a private investment group, our offerings are generally open to "Accredited Investors" as defined by the U.S. Securities and Exchange Commission (SEC). We will guide you through the process of verifying your accredited investor status, which typically involves providing documentation of your income or net worth.

Review of Offering Documents: Once qualified, you will receive our comprehensive offering documents, such as a Private Placement Memorandum (PPM) and Subscription Agreement. These documents provide a deep dive into the investment details, including legal terms, risk factors, fee structure, and the specific properties or investment vehicles involved. We highly recommend reviewing these documents thoroughly and consulting with your financial advisor, legal counsel, and tax professional.

Investment Commitment & Funding: If you decide to move forward, you will complete and sign the Subscription Agreement, committing to your investment. Funds are typically transferred via wire transfer or ACH.

Onboarding & Regular Reporting: After your investment is finalized, you'll be officially onboarded as a VarelaFox investor. You will receive regular updates and detailed reports on the performance of our real estate portfolio and Bitcoin holdings, providing full transparency on your investment's progress.

We are committed to a transparent and informative process, and our team is always available to answer any questions you may have along the way. Please reach out to us to begin the conversation!

Yes, as with any investment, there are inherent risks involved with VarelaFox Investments. We believe in full transparency, and it's crucial for all potential investors to understand these risks before making any commitment. Our strategy combines two distinct asset classes, each with its own set of considerations:

Risks Associated with Real Estate Investments (specifically in Texas):

Market Fluctuations: While the Texas market has seen significant growth, property values and rental income can be impacted by economic downturns, oversupply, or changes in local demand. Recent data (mid-2025) indicates that the Texas housing market is undergoing a correction in some areas, with rising inventory and leveling or slight declines in prices, especially compared to the rapid growth seen previously.

Liquidity Risk: Real estate is generally less liquid than other assets, meaning it can take time to sell a property, especially in a down market, if cash is needed quickly.

Property-Specific Risks: Unexpected repairs, maintenance costs, tenant vacancies, or disputes can impact cash flow and profitability.

Location Risk: While we conduct thorough due diligence, local factors like changes in neighborhood desirability, crime rates, or school quality can affect property values.

Legislative and Regulatory Changes: Shifts in zoning laws, property taxes, rent control policies, or environmental regulations can impact property operations and returns.

Natural Disasters: Texas is susceptible to various natural disasters (e.g., hurricanes, floods, freezes), which can lead to property damage and increased insurance costs. Interest Rate Fluctuations: Rising interest rates can increase borrowing costs for acquisitions and developments, impacting overall profitability and refinancing options.

Risks Associated with Bitcoin Investments:

Volatility: Bitcoin is known for its extreme price swings. Its value can rise and fall dramatically and unpredictably within short periods, meaning you could lose a significant portion or all of the capital allocated to Bitcoin.

Regulatory Uncertainty: The regulatory landscape for cryptocurrencies is still evolving globally. New laws or government crackdowns could significantly impact Bitcoin's price and usability.

Security Threats: While the blockchain technology itself is secure, risks exist with exchanges, wallets, and individual security practices, making investments vulnerable to hacking, fraud, or theft.

Lack of Central Authority/Insurance: Bitcoin is decentralized and not backed by a government or central bank, nor is it typically covered by traditional investor protection schemes like FDIC or SIPC insurance. If a platform holding your Bitcoin fails or is compromised, your assets may not be protected.

Market Manipulation: The cryptocurrency market can be susceptible to manipulation by large holders ("whales") or other entities.

Technological Risks: While blockchain is robust, unforeseen technological vulnerabilities or shifts in the broader digital asset landscape could pose risks.

Mitigating Risks:

While all investments carry risk, VarelaFox aims to mitigate these through:

Thorough Due Diligence: Extensive research and analysis on both real estate properties and the cryptocurrency market.

Experienced Management: Our General Partners, Alex Varela and Doug Fox, bring deep industry expertise to navigate market complexities.

Diversification: Investing across multiple Texas real estate properties helps reduce concentration risk, and the inclusion of Bitcoin offers diversification away from traditional assets.

Strategic Reinvestment: Our controlled reinvestment of cash flow into Bitcoin is designed to capture growth opportunities while managing exposure.

Transparency: We provide regular, detailed reports to keep investors informed of performance and market conditions.

We encourage all prospective investors to carefully review our comprehensive offering documents, which detail all specific risk factors, and to consult with their own financial, legal, and tax advisors before making an investment decision.

A: Our fee structure is designed for transparency and to align with investor success. Typically, this includes an annual asset management fee, often around 1% of your invested capital, which covers the strategic oversight of both our real estate portfolio and Bitcoin holdings. Additionally, there may be an acquisition fee on new property purchases and a performance fee (or "promote") on profits generated after investors receive their fixed 9% annual return. All specific fee details are clearly outlined in our official offering documents.

An accredited investor is an individual or entity that meets specific financial criteria set by regulators (in the U.S., the Securities and Exchange Commission — SEC) that qualifies them to invest in private offerings of securities not registered with the SEC, such as hedge funds, private equity, venture capital, and certain real estate syndications.

The idea is that accredited investors are financially sophisticated enough—and have enough cushion—to bear the risks of these investments.

In the U.S., you qualify as an accredited investor if you meet one or more of these criteria:

Income Test:

Earned $200,000 or more in each of the last two years (or $300,000 with a spouse/partner), and expect to earn the same this year.

Net Worth Test:

Have a net worth over $1 million, either individually or jointly with a spouse/partner, excluding your primary residence.