WHY?
The Fund
Our fund is uniquely designed to combine the short-term profit velocity of residential flips with the long-term cash flow, equity growth, and tax advantages of multifamily real estate. The fund also provides investors liquidity access to their money within a 90 day notice. This dual approach creates a rare balance of immediate income and lasting wealth: Multifamily investing provides tax benefits to wipe out gains from flips and investor incomes. Fast Capital Turnover, Durable Cash Flow & Equity Growth, Access To Your Money Faster, Tax-Efficient Returns, Consistent Preferred Return & Smart Recycling of Capital.
PROPERTY
HIGHLIGHTS
Description
Spread over nearly 2 acres, HighPoint comprises 50 Units, a gated entrance, central location to major employers, Navy freeways and more.
Unit Mix
The property offers a total of 50 units, containing 70% 2bedroom units, 28% 1bedroom and 2% three-bedroom units. There is a mix of town home units and flats.
Condo Map
Originally built as a 50 unit condo complex in 1982, complete with individual water and utility hookups, washer/dryer installations, and a condo map with 50 individual APNs.
Features
The complex features and highpoint bluff living, secure gated access, garages, storage and quick access to freeways and employers.
INVESTMENT
OPPORTUNITY
Holding Period:
The anticipated holding period is 18 to 24 months, allowing for 50 unit renovations and sales.
Capital Raise:
The General Partners seek to secure $4.5-5 million in equity to complete the project, enabling the development to move forward successfully.
Construction Loan:
The General Partners plan to secure $17-$18M in acquisition and renovation loan construction. Loan terms TBD, but are expected at SOFR + 570 or approx. 10-11%
Take-Out Loan Summary: Upon renovation of the units, we will sell them to end users. By utilizing our in-house sales team and preferred lending partner, we anticipate VA and FHA financing as well as attractive 5% down condo financing.
Minimum Investment:
The minimum investment required is $50,000 per LP interest, with the General Partner reserving the right to accept smaller subscriptions at their discretion.
BUSINESS PLAN
OVERVIEW
Renovate and sell: This presents an incredibly rare opportunity to acquire at apartment pricing and exit at significantly higher condo prices. We will renovate 50 for rent condo units and sell them individually over an 18-24 month timeline.
Using our in-house construction and sales teams we will strategically plan renovations while maintaining revenue from the rentals.
Financial Strategy: Financed with a $17-18M loan and $4.5-5M capital raise.
Investor Returns: 8% -10%preferred return for investors, with additional 60% of profits upon property sale.
Exit Strategy: Targeted sales to begin within 4-6 months of renovation starts.
RETURN
STRUCTURE
LP preferred return options:
$50,000 - $99,000 investment - 8% preferred return
$100,000 or more - 10% preferred return
LP Profit splits: Limited partners will receive 60% of the profits and cash distributions.
Projected returns: ROI 60% with annual rate of return projected at 30%.
24 month investment timeline.