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.