Real Estate Fund
Pop single Family
- Mission & Vision
- Investment Thesis
- Fund Oppurtunity
- Case Studies
Contents
- Mission & Vision
- Investment Thesis
- Fund Oppurtunity
- Case Studies
Contents
Mission & Vision
01
Mission & Vision
01
WHY WE
EXIST.
PF Capital’s mission is to build generational wealth and transform lives by strategically unlocking growth from undervalued real estate assets. We focus on delivering unrivaled returns, enriching neighborhoods and fostering legacy of prosperity through meticulous due diligence & strategy, industry expertise and constant innovation.
People Over Profit
Our vision is to change the lives of 10,000 families by building 1,000 units of affordable housing in 10 major cities around America.
01 MISSION & VISION
Why are we different?
Our ability to purchase properties at .40 cents on the dollar allows us to guarantee high returns regardless of the market.
The market is down & returns are low.
PROBLEM
IDENTIFY GAP IN
THE MARKET.
Market volatility has resulted in substantial losses; for instance, in 2020, the S&P 500 dropped 20%, causing billions in 401k and personal investment losses.
Deals are nearly impossible to find if you aren’t set up for it.
Savings accounts are failing to outpace inflation, which currently averages around 3-4% per year and 6% 2 years ago
Rising housing prices and interest rates, it’s impossible to find discounted properties or anything over asking.
01 MISSION & VISION
Executive Summary
02
Executive Summary
02
Low Entry Cost
We leverage free and public data sources to identify and connect with our audience, helping us reduce costs and maintain our focus.
Very Convenient
With our single fund model, you make one deposit, paid dividends quarterly and consistent annual growth returns.
Instant Equity
Our off market strategies guarantee we buy properties with instant equity and high profit margins.
- Too broad on their data & spending too much money in marketing.
- Single Fix & Flippers using single transactions loans. This causes gaps in between deals and not fully reaching higher annual returns and cumbersome interactions.
- Inconsistent deal flow from relying too heavily on purchasing on-market properties.
01
02
03
COMPETITIVE
LANDSCAPE
02 EXECUTIVE SUMMARY
INVESTMENT
THESIS.
Venturing into Land Development and Construction of New Residences:
- Longer Cash Conversion Cycles
- 7 Figure Profit Payouts
- 90% Profit Margins
3
Procurement of High-Value Properties at Substantial Discounts:
- North Carolina, South Carolina, Georgia, Texas, Ohio, and Florida.
- Procure properties at approximately 50%-60% of their post-renovation value, ensuring ample profit margin.
1
Restoration and Disposition or Leasing of Residential Properties:
- Fix & Flip Properties at a minimum 25% ROI. Allowing us to ensure high returns.
2
02 EXECUTIVE SUMMARY
Mission
PF Capital’s mission is to build generational wealth and transform lives by strategically unlocking growth from undervalued real estate assets. We focus on delivering unrivaled returns, enriching neighborhoods and fostering legacy of prosperity through meticulous due diligence & strategy, industry expertise and constant innovation.
Vision
Our Mission is to change the lives of 10,000 families by building 1,000 units of affordable housing in 10 major cities around America.
Fund Model & Structure
03
Fund Model & Structure
03
FUND
OVERVIEW.
- Fund Size: Targeted at $15 million
- Fund Structure: Evergreen, commingled real estate development fund
- Minimum Equity Commitment: $30,000 at $10 per Membership Unit
- Investment Strategy: Leverage asset management and market expertise to provide equity and debt commitments into commercial and residential real estate development & investment projects. Prioritize Rental Income and Foreclosure/Wholesale Purchasing opportunities that promise high investor returns. Implement aggressive market exit strategies.
- Target Investment Size: $100,000 to $2,000,000 per property.
-No Cash purchases above $450,000.
- Investment Period: 12-24 months
- Management Fees: No management fees, instead a performance-based fee structure is in place
- High expected returns of 18%-26%+
03 FUND MODEL & STRUCTURE
FEE
STRUCTURE
01
Preferred Returns
Depending on the class shares, we give between 8%-12% preferred returns
02
Catch Up
We don’t take a fee, off of the front end. Want to make sure you get paid first, then we get paid.
03
Profit Splits
With the deep discounts we get we are able to ensure High returns
03 FUND MODEL & STRUCTURE
DISTRIBUTION
EXAMPLE
6832 Heritage Orchard Way
Purchase price: $297,000
Rehab: $85,000
Total Funds Used: $380, 000
Sale Price: $650,000
Profit: $218,000 after fees & Commisions
ROI: 66.7
Rehab: $85,000
Total Funds Used: $380, 000
Sale Price: $650,000
Profit: $218,000 after fees & Commisions
ROI: 66.7
$71,000 to L.P.
$71,000 to G.P.
$24,320 to L.P.
$6,080 to G.P.
$7,600 to G.P.
$38,000 to L.P.
50% to L.P.
50% to G.P.
80% to L.P.
20% to G.P.
2% G.P. Catch-up
10% Preferred Returns to L.P.
$142,000
$76,000
35% Returns to Investors!
From 1 house!
From 1 house!
Investment Strategy
04
Investment Strategy
04
DEAL
SOURCING.
- CoreTeq VAs
A team of 11 Virtual assistants helping to make sure we have the best opportunities to reach potential sellers - We are in 3 masterminds full of people sharing deals for us to evaluate and work through.
- Advanced advertising through geofencing targeted ads to ONLY foreclosure leads.
- A wide source of deals from other wholesalers submitting to us. We have a serious underwriting team to ensure the best returns.
04 INVESTMENT STRATEGY
We help potential sellers through hard situations to ensure we can close on the property with a clear title.
03
Closing The Deal
Our team pulls, cleans and gathers data from the county for every foreclosure in the areas we operate in
Pulling Data
Using geofencing ads and callers we market directly to the sellers and negotiate large discounts on their properties
Marketing and Calling
04 INVESTMENT STRATEGY
01
02
INVESTMENT
PROCESS.
What We Do ?
Rigorous underwriting process
We help the sellers to escape foreclosure and negotiate deep discounts for them.
We pull multiple comps sold within the last 90 days
We run a full rehab estimator after our Head of Construction
We analyze all exit strategy possibilities
We help the sellers to escape foreclosure and negotiate deep discounts for them.
We pull multiple comps sold within the last 90 days
We run a full rehab estimator after our Head of Construction
We analyze all exit strategy possibilities
04 INVESTMENT STRATEGY
THE PLAN
- GOALS
Phase IV
Direct Acquisition and Resale
Our goal is to deliver value through strategic property acquisition, renovation, and profitable resales while simultaneously building our rental portfolio. Our projected timeline and milestones, assuming a rehab budget of $50-80k, are as follows:
Over 6 months, we aim to acquire 64 properties, evenly split between resales and rentals.
Our goal is to deliver value through strategic property acquisition, renovation, and profitable resales while simultaneously building our rental portfolio. Our projected timeline and milestones, assuming a rehab budget of $50-80k, are as follows:
- Month #1 - 8 houses acquired (4 for resale, 4 for rental) GOAL: $50-70k average profit on each rehabbed and flipped property yielding a GROSS REVENUE ESTIMATE of $200-280k.
- Month #6 (5/1 – 6/1) = 14 houses acquired (7 for resale, 7 for rental) GOAL: $50-70k average profit on each rehabbed and flipped property, yielding a GROSS REVENUE ESTIMATE of $350-490k.
Over 6 months, we aim to acquire 64 properties, evenly split between resales and rentals.
(1-6 months)
(6 months - 1 year)
(1 year - 2 years)
(Year 3)
Our objective is to establish a real estate fund with a capitalization of up to $3 million. This capital will expand our rental portfolio further while maintaining a steady stream of property flips for immediate revenue.
This phase will allow us to expand our rental portfolio significantly. By the end of this phase, the goal is to have 125 single-family properties, with 30% designated as affordable housing. With an estimated $25,000,000-$30,000,000 Assets under management.
The third year will be focused on managing and potentially expanding our portfolio, depending on market conditions and the performance of our fund. Our ongoing strategy will be dictated by maximizing investor returns while contributing positively to the communities in which we operate.
Long Term
(10 Years)
- Total Units: 5000
- Attained by 2033
- Increased emphasis on reducing our debt to equity ratio
- Monthly Passive Income from rents: $2,500,000
- Total Real Estate Assets: $100,000,000
Phase I
Phase II
Phase III
04 INVESTMENT STRATEGY
BUYING PHILOSOPHY
- RENTAL PROPERTY
Off Market single family homes using the BRRRR method or creative financing strategies
Strategy:
NC, SC, Ga, Fl, Oh, Id, Tx
Locations:
Minimal to moderately distressed
Rehab Budgets: < or = to $75,000
Rehab Budgets: < or = to $75,000
Condition:
Single Family: >$250/mo
Multi Family: > $150/mo
Multi Family: > $150/mo
Purpose: Cash Flow
Total Investor Partner Return:
- 8% on money invested
- Min 3 months interest guaranteed
7%
Capital Expenditures:
Range 8-10% when applicable
Property Management:
LTV: 75% or greater into long term financing
ARV: $150,000 - $250,000
10% - 12%
Cash on Cash Return:
8%+
Desired Cap Rate:
04 INVESTMENT STRATEGY
COMPANY
ENTITIES
Pure Flair Homes, LLC
WHOLESELLING
Pure Flair Homes Solutions
PROPERTY SOLUTIONS
RENTAL PORTFOLIO
Pure Flair Homes, LLC
FLIPPING & DEVELOPMENT BUSINESS
PF Capital
INVESTMENT FUND
04 INVESTMENT STRATEGY
CORE
VALUES
Management Team
05
Management Team
05
ABOUT OUR
TEAM.
List all General Partners - Accolades and industry expertise? - Investment Partners/Advisors
These only need to be listed when GP credibility is lacking. Used to build confidence for new fund managers.
List Investment Committee members if applicable and builds rapport
These only need to be listed when GP credibility is lacking. Used to build confidence for new fund managers.
List Investment Committee members if applicable and builds rapport
Devin Robinson
MANAGING PARTNER
Darrius Sellers
CFO
Carl Lubbe
CPO
Jamie Richins
DIRECTOR OF INVESTOR EXPERIENCE
05 Management Team
Zach Hoster
DIRECTOR OF CONSTRUCTION & DEVELOPMENT
Board of
Advisors
WE have incredible advisors with years of experience to help guide us through making wise decisions with our investments, ensuring our investors money is safe and well managed.
James Gaskin
Current Senior VP of Corporate. Development at Renovo Financial and is a Seasons Fund Manager With over 20 years of experience in the investment industry.
- Raised over $1 billion in capital for private equity funds
- Invested in over 50 companies
- Helped to take several companies public
- Achieved an average annual return of 20% for his investors
Rob Dann
Currently COO of Highgate Select, the 19th largest Real Estate Fund in the world and a premier hospitality investment and management company with over 100 hotels in the United States and widely recognized as an innovator in the industry
05 Management Team
Case Studies
06
Case Study
06
Case Studies
06
616 Brailsford Dr,
Summerville Sc
Purchase price: $129,000
Rehab: $97,000
Sale Price: $340,000
Profit: $120,000
ROI: 43.55
Rehab: $97,000
Sale Price: $340,000
Profit: $120,000
ROI: 43.55
6832 Heritage Orchard Way
Purchase price: $297,000
Rehab: $85,000
Sale Price: $650,000
Profit: $250,000
ROI: 66.7
Rehab: $85,000
Sale Price: $650,000
Profit: $250,000
ROI: 66.7
6 Mayberry Lane,
Beaufort Sc
Purchase price: $170,000
Rehab: $65,000
Sale Price: $340,000
Profit: $100,000
ROI: 55.56
Rehab: $65,000
Sale Price: $340,000
Profit: $100,000
ROI: 55.56
312 Yamassee Lane, Waxhaw NC
Purchase price: $155,000
Rehab: $0
Sale Price: $275,000
Profit: $113,000
ROI: 113%
Rehab: $0
Sale Price: $275,000
Profit: $113,000
ROI: 113%
4228 Angier Ave
Purchase price: $205,000
Rehab: $40,000
Sale Price: $315,000
Profit: $225,700
Front end ROI: Negative
Plan: rezone, tear-down and build 5 new builds.
New Build Cost: $1.2 Million
Final Sale Price: $2.1 Million
ROI: 55.56
Rehab: $40,000
Sale Price: $315,000
Profit: $225,700
Front end ROI: Negative
Plan: rezone, tear-down and build 5 new builds.
New Build Cost: $1.2 Million
Final Sale Price: $2.1 Million
ROI: 55.56
06 Case Study
06 Case Study
06 Case Study
06 Case Study
06 Case Study
INVESTOR
PORTAL
APPENDIX
GLOSSARY
Summary of Terms
The following is a brief summary of certain terms of the offering described in this offering memorandum. It is not intended to be complete and is qualified by the more detailed information contained elsewhere in this memorandum and in the text of the documents referred to herein.
Fund Size
Fund Structure
Minimum Equity Commitment
Investment Strategy
Leverage
Target Investment Size
The following is a brief summary of certain terms of the offering described in this offering memorandum. It is not intended to be complete and is qualified by the more detailed information contained elsewhere in this memorandum and in the text of the documents referred to herein.
Fund Size
- Target size of $15 million but not limited by any specific number.
Fund Structure
- Private evergreen commingled real estate development fund
- Investors will purchase Membership Units of the Company
- Wyoming Limited liability company (Formed March, 2023)
Minimum Equity Commitment
- 1 membership interest of $30,000
Investment Strategy
- Provide equity and debt commitments into commercial and residential real estate development & Investment projects
- Form individual partnerships or joint ventures with local operating partners to leverage asset management and market expertise
- Rental Income and Foreclosure/Wholesale Purchasing opportunities that create the most optimal position for high investor returns
- Aggressive market exit strategy
Leverage
- Non anticipated, but allowable with majority consent from investors
Target Investment Size
- $100,000 to $2,000,000 per property
- Target developments in niche large market locations
Investment Period
Expected Life of the Fund
Target Internal Rate of Return
Asset Management Fee
- 12-24 months
Expected Life of the Fund
- 2 years following the expiration of the Investment Period
- Extensions with the approval of the majority in interest of the investors
Target Internal Rate of Return
- 18% to 26% (net of performance fees and incentive distributions)
- 100% to the investors until they have received an amount equal to the annual preferred return of 8%-12% preferred return, payable per annum, plus all capital contributions to investors;
- Class A Shares: Will Recieve 12% preferred returns
- Class B Shared will receive 10% preferred returns
- Class C Shares will receive 8% preferred returns.
- 2% Catch-up paid to PF Fund Management
- After the preferred returns for each share class and the management fee catch up have been hit:
- 80% of the remaining cash flow to the investor(s); and 20% of the remaining cash flow to the Managing Members, PF Fund Management(“Excess Distributable Cash (EDC)”).
- Excess Distributable Cash (EDC) Splits above 20%:
- Class A-C Shares after 20% returns have been met, 50% of the remaining cash flow to the investor(s); and 50% of the remaining cash flow to the Managing Members, PF Fund Management(“Excess Distributable Cash (EDC)”).
Asset Management Fee
- 0% in management fees. Performance Fee Instead
- Exclusive fund for new private equity investments into development projects
2023
Real Estate
Fund
JULY, 2023
Mission & Vision
01
Mission & Vision
01
WHY WE
EXIST.
PF Capital’s mission is to build generational wealth and transform lives by strategically unlocking growth from undervalued real estate assets. We focus on delivering unrivaled returns, enriching neighborhoods and fostering legacy of prosperity through meticulous due diligence & strategy, industry expertise and constant innovation.
People Over Profit
Our vision is to change the lives of 10,000 families by building 1,000 units of affordable housing in 10 major cities around America.
PROBLEM
IDENTIFY
GAP IN
THE MARKET.
The market is down & returns are low.
- Savings accounts are failing to outpace inflation, which currently averages around 3-4% per year and 6% 2 years ago
- Market volatility has resulted in substantial losses; for instance, in 2020, the S&P 500 dropped 20%, causing billions in 401k and personal investment losses.
- Rising housing prices and interest rates, it’s impossible to find discounted properties or anything over asking.
- Deals are nearly impossible to find if you aren’t set up for it.
Our ability to purchase properties at .40 cents on the dollar allows us to guarantee high returns regardless of the market.
Why are we different?
Executive Summary
02
Executive Summary
02
COMPETITIVE
LANDSCAPE.
Low Entry Cost
We leverage free and public data sources to identify and connect with our audience, helping us reduce costs and maintain our focus.
With our single fund model, you make one deposit, paid dividends quarterly and consistent annual growth returns.
Our off market strategies guarantee we buy properties with instant equity and high profit margins.
01
02
03
Very Convenient
Instant Equity
- Too broad on their data & spending too much money in marketing.
- Single Fix & Flippers using single transactions loans. This causes gaps in between deals and not fully reaching higher annual returns and cumbersome interactions.
- Inconsistent deal flow from relying too heavily on purchasing on-market properties.
INVESTMENT
THESIS.
Vision
Mission
Our Mission is to change the lives of 10,000 families by building 1,000 units of affordable housing in 10 major cities around America.
PF Capital’s mission is to build generational wealth and transform lives by strategically unlocking growth from undervalued real estate assets. We focus on delivering unrivaled returns, enriching neighborhoods and fostering legacy of prosperity through meticulous due diligence & strategy, industry expertise and constant innovation.
3.
Venturing into Land Development and Construction of New Residences:
- Longer Cash Conversion Cycles
- 7 Figure Profit Payouts
- 90% Profit Margins
1.
Procurement of High-Value Properties at Substantial Discounts:
- North Carolina, South Carolina, Georgia, Texas, Ohio, and Florida.
- Procure properties at approximately 50%-60% of their post-renovation value, ensuring ample profit margin.
2.
Restoration and Disposition or Leasing of Residential Properties:
- Fix & Flip Properties at a minimum 25% ROI. Allowing us to ensure high returns.
Fund Model & Structure
03
Fund Model & Structure
03
FUND
OVERVIEW.
- Fund Size: Targeted at $15 million
- Fund Structure: Evergreen, commingled real estate development fund
- Minimum Equity Commitment: $30,000 at $10,000 per Membership Unit
- Investment Strategy: Leverage asset management and market expertise to provide equity and debt commitments into commercial and residential real estate development & investment projects. Prioritize Rental Income and Foreclosure/Wholesale Purchasing opportunities that promise high investor returns. Implement aggressive market exit strategies.
- Target Investment Size: $100,000 to $2,000,000 per property.
The focus is on niche large market locations.
-No Cash purchases above $450,000. - Investment Period: 12-24 months
- Management Fees: No management fees, instead a performance-based fee structure is in place
- High expected returns of 18%-26%+
FEE
STRUCTURE
01
Preferred Returns
Depending on the class shares, we give between 8%-12% preferred returns
02
Catch Up
We don’t take a fee, off of the front end. Want to make sure you get paid first, then we get paid.
03
Profit Splits
With the deep discounts we get we are able to ensure High returns
DISTRIBUTION
EXAMPLE
6832 Heritage Orchard Way
Purchase price: $297,000
Rehab: $85,000
Total Funds Used: $380,000
Sale Price: $650,000
Profit: $218,000 after fees & Commissions
ROI: 66.7
50% to L.P.
50% to G.P.
80% to L.P.
20% to G.P.
2% G.P. Catch-up
10% Preferred Returns to L.P.
$71,000 to L.P.
$71,000 to G.P.
$24,320 to L.P.
$6,080 to G.P.
$7,600 to G.P.
$38,000 to L.P.
$142,000
$76,000
35% Returns to Investors! From 1 house!
Investment Strategy
04
Investment Strategy
04
DEAL
SOURCING.
01
Pulling Data
Our team pulls, cleans and gathers data from the county for every foreclosure in the areas we operate in
02
Marketing and Calling
Using geofencing ads and callers we market directly to the sellers and negotiate large discounts on their properties
03
Closing the Deal
We help potential sellers through hard situations to ensure we can close on the property with a clear title.
- CoreTeq VAs
A team of 11 Virtual assistants helping to make sure we have the best opportunities to reach potential sellers - We are in 3 masterminds full of people sharing deals for us to evaluate and work through.
- Advanced advertising through geofencing targeted ads to ONLY foreclosure leads.
- A wide source of deals from other wholesalers submitting to us. We have a serious underwriting team to ensure the best returns.
INVESTMENT
PROCESS.
What We Do ?
Rigorous underwriting process
We help the sellers to escape foreclosure and negotiate deep discounts for them.
We pull multiple comps sold within the last 90 days
We run a full rehab estimator after our Head of Construction
We analyze all exit strategy possibilities
We help the sellers to escape foreclosure and negotiate deep discounts for them.
We pull multiple comps sold within the last 90 days
We run a full rehab estimator after our Head of Construction
We analyze all exit strategy possibilities
THE PLAN
- GOALS
Direct Acquisition and Resale
Our goal is to deliver value through strategic property acquisition, renovation, and profitable resales while simultaneously building our rental portfolio. Our projected timeline and milestones, assuming a rehab budget of $50-80k, are as follows:
Over 6 months, we aim to acquire 64 properties, evenly split between resales and rentals.
Our goal is to deliver value through strategic property acquisition, renovation, and profitable resales while simultaneously building our rental portfolio. Our projected timeline and milestones, assuming a rehab budget of $50-80k, are as follows:
- Month #1 (8/1 – 9/1) = 8 houses acquired (4 for resale, 4 for rental) GOAL: $50-70k average profit on each rehabbed and flipped property yielding a GROSS REVENUE ESTIMATE of $200-280k.
- Month #6 (5/1 – 6/1) = 14 houses acquired (7 for resale, 7 for rental) GOAL: $50-70k average profit on each rehabbed and flipped property, yielding a GROSS REVENUE ESTIMATE of $350-490k.
Over 6 months, we aim to acquire 64 properties, evenly split between resales and rentals.
Phase I
(1-6 months)
Our objective is to establish a real estate fund with a capitalization of up to $3 million. This capital will expand our rental portfolio further while maintaining a steady stream of property flips for immediate revenue.
Phase II
(6 months - 1 year)
This phase will allow us to expand our rental portfolio significantly. By the end of this phase, the goal is to have 125 single-family properties, with 30% designated as affordable housing. With an estimated $25,000,000-$30,000,000 Assets under management.
Phase III
(1 year - 2 years)
The third year will be focused on managing and potentially expanding our portfolio, depending on market conditions and the performance of our fund. Our ongoing strategy will be dictated by maximizing investor returns while contributing positively to the communities in which we operate.
Phase IV
(Year 3)
- Total Units: 3000
- Attained by 2033
- Increased emphasis on reducing our debt to equity ratio
- Monthly Passive Income from rents: $2,500,000
- Total Real Estate Assets: $100,000,000
Long Term
(10 years)
Strategy
- Off Market single family homes using the BRRRR method or creative financing strategies
Locations:
- NC, SC, Ga, Fl, Oh, Id, Tx
Condition:
- Minimal to moderately distressed
- Rehab Budgets: < or = to $65,000
Purpose: Cash Flow
- Single Family: >$250/mo
- Multi Family: > $150/mo
BUYING PHILOSOPHY
- RENTAL PROPERTY
- 8% on money invested
- Min 3 months interest guaranteed
Total Investor Partner Return:
Capital Expenditures:
- 7%
Property Management:
- Range 8-10% when applicable
ARV: $150,000 - $250,000
- LTV: 75% or greater into long term financing
Cash on Cash Return:
- 10% - 12%
Desired Cap Rate:
- 8%+
COMPANY
ENTITIES
WHOLESELLING
Pure Flair Homes, LLC
PROPERTY SOLUTIONS
Pure Flair Home Solution
RENTAL
PORTFOLIO
PORTFOLIO
FLIPPING & DEVELOPMENT BUSINESS
Pure Flair Homes, LLC
INVESTMENT FUND
PF Capital
CORE
VALUES
Management Team
05
Management Team
05
ABOUT OUR
TEAM.
List all General Partners - Accolades and industry expertise? - Investment Partners/Advisors
These only need to be listed when GP credibility is lacking. Used to build confidence for new fund managers.
List Investment Committee members if applicable and builds rapport
These only need to be listed when GP credibility is lacking. Used to build confidence for new fund managers.
List Investment Committee members if applicable and builds rapport
Devin Robinson
MANAGING PARTNER
Darrius Sellers
CFO
Jamie Richins
DIRECTOR OF INVESTOR EXPERIENCE
Zach Hoster
DIRECTOR OF CONSTRUCTION & DEVELOPMENT
Carl Lubbe
CPO
Board of Advisors
WE have incredible advisors with years of experience to help guide us through making wise decisions with our investments, ensuring our investors money is safe and well managed.
James Gaskin
- Raised over $1 billion in capital for private equity funds
- Invested in over 50 companies
- Helped to take several companies public
- Achieved an average annual return of 20% for his investors
Rob Dann
Currently COO of Highgate Select, the 19th largest Real Estate Fund in the world and a premier hospitality investment and management company with over 100 hotels in the United States and widely recognized as an innovator in the industry
Current Senior VP of Corporate. Development at Renovo Financial and is a Seasons Fund Manager With over 20 years of experience in the investment industry.
Case Studies
06
Case Studies
06
616 Brailsford Dr, Summerville Sc
Purchase price: $129,000
Rehab: $97,000
Sale Price: $340,000
Profit: $120,000
ROI: 43.55
6832 Heritage
Orchard Way
Purchase price: $297,000
Rehab: $85,000
Sale Price: $650,000
Profit: $250,000
ROI: 66.7
6 Mayberry Lane, Beaufort Sc
Purchase price: $170,000
Rehab: $65,000
Sale Price: $340,000
Profit: $100,000
ROI: 55.56
312 Yamassee Lane, Waxhaw NC
Purchase price: $155,000
Rehab: $0
Sale Price: $275,000
Profit: $113,000
ROI: 113%
4228 Angier Ave
Purchase price: $205,000
Rehab: $40,000
Sales Price: $315,000
Refinance Price: $225,700
Front end ROI: Negative
Plan: rezone, tear-down and build 5 new builds.
New Build Cost: $1.2 Million
Final Sale Price: $2.1 Million
ROI: 61.70%
INVESTOR
PORTAL
APPENDIX
GLOSSARY
Summary of Terms
The following is a brief summary of certain terms of the offering described in this offering memorandum. It is not intended to be complete and is qualified by the more detailed information contained elsewhere in this memorandum and in the text of the documents referred to herein.
Fund Size
Fund Structure
Minimum Equity Commitment
Investment Strategy
Leverage
Target Investment Size
The following is a brief summary of certain terms of the offering described in this offering memorandum. It is not intended to be complete and is qualified by the more detailed information contained elsewhere in this memorandum and in the text of the documents referred to herein.
Fund Size
- Target size of $15 million but not limited by any specific number.
Fund Structure
- Private evergreen commingled real estate development fund
- Investors will purchase Membership Units of the Company
- Wyoming Limited liability company (Formed March, 2023)
Minimum Equity Commitment
- 1 membership interest of $30,000
Investment Strategy
- Provide equity and debt commitments into commercial and residential real estate development & Investment projects
- Form individual partnerships or joint ventures with local operating partners to leverage asset management and market expertise
- Rental Income and Foreclosure/Wholesale Purchasing opportunities that create the most optimal position for high investor returns
- Aggressive market exit strategy
Leverage
- Non anticipated, but allowable with majority consent from investors
Target Investment Size
- $100,000 to $2,000,000 per property
- Target developments in niche large market locations
Investment Period
Expected Life of the Fund
Target Internal Rate of Return
Asset Management Fee
- 12-24 months
Expected Life of the Fund
- 2 years following the expiration of the Investment Period
- Extensions with the approval of the majority in interest of the investors
Target Internal Rate of Return
- 18% to 26% (net of performance fees and incentive distributions)
- 100% to the investors until they have received an amount equal to the annual preferred return of 8%-12% preferred return, payable per annum, plus all capital contributions to investors;
- Class A Shares: Will Recieve 12% preferred returns
- Class B Shared will receive 10% preferred returns
- Class C Shares will receive 8% preferred returns.
- 2% Catch-up paid to PF Fund Management
- After the preferred returns for each share class and the management fee catch up have been hit:
- 80% of the remaining cash flow to the investor(s); and 20% of the remaining cash flow to the Managing Members, PF Fund Management(“Excess Distributable Cash (EDC)”).
- Excess Distributable Cash (EDC) Splits above 20%:
- Class A-C Shares after 20% returns have been met, 50% of the remaining cash flow to the investor(s); and 50% of the remaining cash flow to the Managing Members, PF Fund Management(“Excess Distributable Cash (EDC)”).
Asset Management Fee
- 0% in management fees. Performance Fee Instead
- Exclusive fund for new private equity investments into development projects
Info.
Contact
Devin Robinson
704 612 1041
devin@pfcapital.us