Investment Process

We Make Acquisitions with Solid Assets and Income

An investment in Cardiff Lexington Preferred Shares mitigates risk over a diversified portfolio, by providing investors the ability to convert their preferred shares into common. We acquire companies with significant assets and little to no debt while continuing to grow Cardiff Lexington and its underlying market value.

Our Investment Strategy

Our focus isn't industry or geographic-specific, it's opportunity oriented. Our growth focus through perpetual acquisitions centers on serving the successful business owner in three main categories, while also including diverse and synergistic industries such as healthcare, technology, and food and beverage. Our target composition of holdings over time are targeted to represent:

40%

Income Producing Commercial Real Estate Companies

40%

Small to Mid-Sized Privately Held Companies

20%

Second Stage Startups - Emerging Growth Companies

Investment Criteria

Verification Requirements

Preferred Share Subsidiary Investments on our platform are limited to accredited investors only. Verification is necessary. You must meet one of the following conditions:

  • Net worth or joint net worth with spouse exceeds $1 Million (exclusive of primary residence).
  • Individual income exceeded $200,000 in each of the past two years.
  • Joint income must exceed $300,000 in each of the past two years.
  • Invest on behalf of a business entity with a total of assets over $5 Million

Our Equity Capitalization Platform

We offer three ways to invest with us:

  1. Preferred Shares: A minimum investment is required
  2. Direct Subsidiary Investment: A minimum investment is required
  3. Cardiff Lexington Shareholder: Must purchase CDIX stock on the open market; no minimum requirement; no accredited investor requirement

Preferred Shares

We provide a premier alternative investment opportunity with mitigated risk in today's small-cap market. Our Preferred Shares tranche is designed as a discounted enhanced investment class whereby the Preferred Share investment is spread across our entire portfolio. We invest these proceeds in new acquisitions, debt conversion, subsidiary growth and operations.

We consider ourselves pioneers in offering accredited, longer-term investors the opportunity to invest in one specific company while being protected by all of our subsidiaries. Investors who previously were unable to invest in Preferred Stock, now have that option.

Direct Subsidiary Investment

Investors are often provided the ability to invest in one or more of our subsidiaries. This allows accredited and institutional investors to pick which subsidiary best aligns with their investment strategies. Investors select and invest in that subsidiary of their choice. We understand that "targeted" investment opportunities are typically hard to find for the average accredited investor. Most, if not all, small-cap companies offer one series of Preferred Stock to key employees, VC Groups and Angels.

The benefits of longer-term Direct Subsidiary Investment could include:

  • Reduced Taxes
  • Various Conversion Rates
  • SPO - Possible future "Secondary Public Offering"
  • Future Dividends - Determined by each Share Class
Phased Liquidity: "Lock-Up Period"

Preferred Shareholders must agree to the "Lock-Up/Leak-Out terms of that preferred class of stock.

The Leak Out

Upon meeting the required Holding Period, Preferred Shareholders are allowed to sell up to 20% of their portfolio per year.

Not Cumulative

Preferred Shareholders cannot sell more than 20% of their remaining portfolio any calendar year. This ensures minimum impact to the common share price.

Interested in Learning More?

We welcome all inquiries.

Contact Us

Understanding Our Investment Strategy

Our whitepapers are available to help you better understand our investment strategy.