First Deal Acquisition

Updated: Feb 23



Put yourself in the shoes of an investor: Here are the updates shared with potential investors and then investors for my first deal.

[Additional updates were sent via monthly reports]


Read from bottom to top.

November 21st 2017 - Update


​As you know we closed on Hermitage, the second property of the 137 units portfolio, on Thursday November 2nd.


We are consolidating the Operating Agreement signatures in a single document (FYI - while reviewing the signatures we noticed some forgotten inputs from some investors resulting in delaying the document consolidation and distribution). We will send a copy Deed of Trust for each property shortly.


We will send a monthly report to the investor to give an overview of the income & expenses, vacancies and major events. Beverly's first report is in work.

We aim at doing the first distributions to the investors early January, after the end of the 4th quarter. 


The final rate of the loan on Hermitage was 4.48%, better than 4.75% used for underwriting.


Other exciting news: we have a new property in Memphis under LOI (Letter Of Intent [to purchase]). It is 168 units. We will keep you posted on the progress for this new acquisition soon.


Please let me know if you have any question.

Notes:

1. This is an extra update for my investors.

2. I will sent future update from the email address: Philippe@555ventures.com

Happy Thanksgiving!

---------------------------------------------------------

​November 3rd 2017 - 2nd Closing and new property under LOI


We are happy to report we closed on Hermitage, the second property of the 137 units portfolio, on Thursday November 2nd. Our lawyer and mortgage broker helped up navigate the last minute road blocks that came up, but it is now official, we own the property! The transition of ownership is going smooth on both properties. We have weekly calls with the property management company to monitor the progress. We will be working on re-branding Hermitage to Cooper-Young Apartments to market it to young professionals in the Cooper-Young area of Memphis.


  1. We aim at doing the first distributions to the investors early January, after the end of the 4th quarter. We will send a monthly report to the investor to give an overview of the income & expenses, vacancies and major events.

  2. The 137 units portfolio offers a strong 10%+ cash on cash return right out of the gate and an opportunity to double your investment in 5 years when we sell.

  3. The investment is now closed. For your information, to give you an idea of future opportunities, you can watch the replay of the investor webinar here: Replay


Other exciting news: we have a new property in Memphis under LOI (Letter Of Intent [to purchase]). It is 168 units. We will keep you posted on the progress for this new acquisition soon.


Thanks, and we look forward to hearing from you!


---------------------------------------------------------

October 23rd 2017 - Update


​Since we closed on Beverly on October 3rd, the Property Management team (Kismet Properties) has taken over and they are now managing the property. The feedback was it was a very smooth transition.

We have been working closely with the lender, the lender's counsel, the seller's counsel and our counsel to have everything ready for closing. They kept us busy!

Everything is ready to close this week on Hermitage, however the owner requested to close on October 30th (in order to finalize his 1031 exchange paperwork). This is not a particular concern for us, and the managing partners agree that the seller was rather accommodating so we agreed to grant them this short extra time.

The final rate of the loan on Hermitage will most likely be better than 4.75%, this will be confirmed shortly when we receive a loan commitment letter from the lender.


Please let me know if you have any question.

---------------------------------------------------------

October 4th 2017 - 1st Closing

We are happy to report we closed on Beverly, the first property, on Tuesday October 3rd.

We have reached the critical mass of investor's commitments allowing us to close on the second property later this month. But there is still room for first time investors looking for passive real estate investing for $25,000.

The 137 units portfolio in Memphis, offers a strong 10%+ cash on cash return right out of the gate and an opportunity to double your investment in 5 years when we sell.

You can watch the replay here:

Replay


Thanks, and we look forward to hearing from you!

---------------------------------------------------------

September 24th 2017 - Paperwork

The operating agreement, private placement memorandum and subscription agreement materializing the legal structure of the investment are ready for your review. 

Early investors feed back has been positive, and there is still some room for investors deciding late.

The deadline is 09/28 for signature of the documents and wire of funds.

Let me know if you need more time to decide or if you would prefer to invest less than $50,000. 

In case you missed the live presentation we had last month, you can watch the replay here:

Replay

Thanks, and we look forward to hearing from you!

---------------------------------------------------------

September 6th 2017 - Timeline


Our lawyer is drafting the operating agreement, private placement memorandum and subscription agreement materializing the legal structure of the investment.  In parallel, we are working with banks so they can complete their due diligence regarding the financing of the properties. The closing of Beverly will occur by the end of the month or early October and for Hermitage, at the end of October.

Here is the draft timeline:

By 09/15. Documentation available for review.

09/21. Signature of the documents.

09/23. Wire of funds.

Note that once the documents are available, the investment slots will be secured on a first come first serve basis. More details to follow.


If not done yet, please let me know if you are interested. In case you missed the live presentation we had last month, you can watch the replay here: Replay

Thanks, and we look forward to hearing from you!

---------------------------------------------------------

August 23rd 2017 - Webinar Replay


We had our live call to review my property Hermitage and Beverly yesterday. We decided to group these 2 properties in a portfolio in order to reduce costs. 

This is a 137 unit portfolio in Memphis, with a strong 10%+ cash on cash return right out of the gate and an opportunity to double your investment in 5 years when we sell.

In case you missed the presentation, you can watch the replay here: Replay

Please do one of these three things once you had a chance to review the presentation:

If you'd like to invest, please respond to this email with the amount you'd like to invest and whether it's cash or IRA.

If you have questions, please respond to this email with your questions.

If you're not interested in this investment, please let us know that also.

This is an exceptional opportunity in a stable and growing market with strong cash flow and upside and managed by an experienced team. This investment will probably subscribe quickly, so please let us know if you'd like to participate as soon as possible so that we can reserve your spot.


Thanks, and we look forward to hearing from you!

---------------------------------------------------------

August 17th 2017 - Webinar

We are close to the end of due diligence on the Hermitage property. The quotes resulting from the physical inspection have been slower to arrive than expected, but we are still on track to make initiate the financing shortly.

We will have a live this coming Tuesday at 7:30pm EST to present my property Hermitage and another property, the Beverly Portfolio, both in Memphis, TN. Click here to register: ...

During this webinar, we will present the property packages: the Memphis market, the neighborhood, and the business plan for both properties. At the end of the presentation, there will be a Q&A period via chat. If you cannot attend the live webinar, a recording will be available.

Please let me know if you have any question or if you can think of someone else who might be interested.

Thank you for your support! 

---------------------------------------------------------

August 10th 2017 -​ Due Diligence


The due diligence on the property started. We received all the requested documentation from the seller. The audit of the tenant leases and details of the financial statements is ongoing. So far, we are satisfied with the our findings.

The physical Inspection of the property took place on August 3rd and 4th. Two of my business partners, Patrick and Mark, joined me. There were no bad surprises. The inspector mentioned that the property was well maintained. We are expecting quotes for various repairs, but there is nothing major to take care of right away (ex. some air conditioning units and furnaces are old, they will be replaced when they will stop working, part of the roof is to be replaced within 5 years). We have budgeted $320,000 for these items.

At this point our financial projections are basically unchanged. I attached an updated version of the property package to this email.

Next Steps:

Within the next 15 days, we will make our final go / no go decision on the property based on the final results of the Due Diligence and Inspection. Then we will send you the final property package and you will have the opportunity to commit to investing. 

We will create of an Limited Liability Company, with an operating agreement describing day to day operations and major decisions subject to vote. You will be a partner of the LLC. A Private Placement Memorandum will be prepared to comply with SEC laws. All these document will be available for your review prior to signature.

The closing is scheduled by contract on September 15th, however we have the option to postpone it of 30 days. We will most likely exercise this option to allow sufficient time for the financing by the bank. Right before the closing, investment funds will be wired to escrow. 

Please let me know if you have any question or if you can think of someone else who might be interested.

Thank you for your support! 

---------------------------------------------------------

July 26th 2017 - Under Contract!

We have the property located 1103 S Cooper St Memphis, TN under contract!

After many iterations with the seller, broker and lawyers, we succeeded in getting the property under contract and secured the deal with earnest money deposit to escrow. My partners' real estate experience was invaluable while the negotiation took place. 

We have started the due diligence on the property. Among other things, we will analyze the current tenant leases and details of the financial statements. The physical inspection of the property is scheduled for next week.

I will send you updated financial projections shortly.

In the meantime, please let me know if you have any question or if you can think of someone else who might be interested.

Thank you for your support! 

---------------------------------------------------------

July 9th 2017 - Update

We are getting close to having the property in Memphis, TN under contract (I sent you information about it a few weeks ago).

My partners bring a long experience in real estate and they helped me negotiate the terms of the Purchase & Sale Agreement. They will guide me in through all the steps of the due diligence, financing, closing and then management of the asset.

I will send you an email when we are under contract, and shortly after the final financial projections.

In the meantime, please let me know if you have any question or if you can think of someone else who might be interested.


Thank you for your support! 

---------------------------------------------------------

July 8th 2017 - Multifamily Real Estate Investment Opportunity

My partners and I have a 80-unit property in Memphis, TN under LOI (Letter Of Intent). We should have it under contract within 2 weeks, and then, if the due diligence is satisfying, close 2 months after that.

There will be some room for limited partners bringing capital.


Please let me know if you are interested.

---------------------------------------------------------

June 2017 - Multifamily Real Estate Investment Opportunity

I am starting a new investment activity in multifamily real estate with some partners. 

We are looking for investors interested in a 10-15% internal rate of return (IRR) over 5 years by investing in multi-family apartment buildings in the Southeast U.S. area. The minimum investment is $50,000. They can also invest with their IRA and maybe 401(k) (please ask me how). 


Our strategy is to purchase $2M - $5M assets that are stable but present an opportunity for us to add value. Investors will receive monthly updates, and cash flow distributions are made at the end of each calendar year.  Investors have the option of getting cashed out of their investment between year 3 and 4. 


If you know anyone who might be interested in a phone call to discuss this further, please drop me a line at Philippe@555ventures.com

0 views

© 2020  by Five Five Five Ventures, LLC - 555Ventures.com  - Contact Us - Privacy Policy