Arcadia Lite Crowdfunding Investment Structure

by Jamie 02/09/2019

We are very excited to present our 1st crowdfunding offering in Arizona Arcadia lite new build  at 3433 E Sells Dr. Phoenix, AZ. We are offering up to six hundred sixty three thousand dollars ($663,000) in Arcadia Lite Secured Participating Preferred Non-Voting Membership Interests  to finance the purchase, demolition, reconstruction and sale of the Sells Drive project.

Below are all the details on the 

Crowdfunding Investment Structure

We Own the asset, in fact our confidence is so great on the Arcadia lite new build  , that we will fund the project with or without the crowdfunding capital.  In addition, the structure detailed below is such the preferred return to (you) the investor, is paid before we get our success fee!

 

Each Interest shall receive a preferred return based on a 6% annual rate (“Preferred Return”), accrued from the closing of the offering to the sale & distribution of the proceeds, if any, upon the re-sale of the House and the winding down of The Project.  In addition to the 6% preferred return, the Interests will collectively receive forty percent (40%) (“Equity Participation”) of the net profit above the first $45,000 (“Base Profit”) of profit, if any, prorated to their percentage participation.

The Equity Participation is subordinate to the Base Profit, which is subordinate to the Preferred Return, which is subordinate to paying all of the expenses of The Project.  So two examples, without consideration to exact budget or market conditions might be as follows:

Below is a graphic summary of the costs associated with the purchase and construction of the project showing the total of $663,000.  To see more details of the Sells home before the demolition in February 2019, please click Arcadia lite Fix-n-flip 

As you can see, if we sell the Project for less than approximately $745,000, then in all likelihood the Preferred Memberships will not get a return and they will lose money.

Below is a graphic summary of the costs associated with the purchase and construction of the project showing the total of $662,305.  To see more details of the Arcadia Lite home before the demolition in February 2019, please click Arcadia lite Fix-n-flip 

The  Crowdfunding Investment Structure is based on expectations of what we believe is a reasonable range of comps (seen below) for the sale of Arcadia lite new build.

One of our earlier Comparative Market Analyses (CMA) showed a sold price per square foot (psf) range of $270-$349 psf, this was from September 2018. On 2/22/2019 we ran another CMA search and report with more accurate subject data on our end product home. This CMA had a range of sold comparable homes of $330-$360 psf. The examples we will use in the summary are not guaranteed and any investment in real estate does come with risk of invested principle.

The Crowdfunding Investment Structure we have provided three final liquid sale price scenarios seen below.

As an example, the return on $1000 was calculated using 3 different resale value scenarios.

Scenario 1- Sale price of $785,000 would generate $20 in preferred return at a 6% preferred annual interest rate and a profit participation return of $1. Resulting in a 2.14% return annualized to 11.64%.

Scenario 2- Sale price of $830,000 would generate $20 in preferred return at a 6% preferred annual interest rate and a profit participation return of $27.  Resulting in a 4.70% return annualized to 25.55%.

Scenario 3– The third scenario is at a sales price of $875,000, so a $1000 investment will generate $20 in preferred return at 6% preferred annual interest rate and a profit participation return of $52. Resulting in a 7.26% return annualized to 39.45%

Keep an eye out as the project updates we will have  (downloadable Spreadsheet ) where you can test your own scenario Crowdfunding Investment Structure.

If you’re ready to invest  select the  INVEST NOW button. Once you click on the “Invest Now” button you are directly connected with the 3rd party escrow platform.  We provide you with  an escrow “crowd-direct” offerings platform, that enables

 

This blog should be used for informational purposes only. This blog should not be construed as legal , real estate or financial advice. If you need legal advice regarding Crowdfunding Laws, or any other litigation matters, contact an attorney in your area.   

 

Related Articles

Past Projects

Sells Drive Project Update 7/28/19

by Jamie on 07/30/2019

Sells Drive Project Update 7/28/19 All right nice….. how’s everybody doing? Shane cook my home group I’m out here getting started on project #3 for PhixNPhlip. We’re starting off with we had a city tag so they got out here and cleared the weeds. This is an acre property so there’s a lot to cover

read more

Past Projects

Earll Drive PHX valuation report July 2019

by Jamie on 07/02/2019

Earll Drive PHX valuation report July 2019 For the complete Blog download EarllCompBLOG  Opinion of value and summary of sale strategy for 2244 E. Earll Dr. Phoenix AZ 85016 The total cost of the project including acquisitions, professionals, construction budget, carrying costs, sale and marketing and closing costs is $427,266. One of our earlier Comparative Market

read more

Past Projects

Earll Drive PHX Crowdfunding offer CLOSED 7/26/19

by Jamie on 05/08/2019

Earll Drive PHX- PhixNPhlip is offering up to $400,000 in Secured Participating Preferred Non-Voting Memberships. Offer: 6% preferred interest Prior to Sponsor participation  40% NET Profit share after Sponsor participation of  35K Total Interests available: 400 @ $1,000 each = 400,000 Raise date= 7/26/2019 or when the entire project is funded; whichever comes first! Click here to

read more