Bob Malecki, Managing PartnerWendy Ceccherelli, Managing Partner
DisclaimerTHIS IS NOT AN OFFER TO SELL SECURITIES. ANY PERSON, ENTITY, ORORGANIZATION MUST FIRST BE QUALIFIED BY THE COMPANY AND READALL OF THE OFFERING DOCUMENTS AND ATTEST TO READING AND FULLYUNDERSTANDING SUCH DOCUMENTS. REI CAPITAL LLC AND ITSAFFILIATES ARE NOT LICENSED SECURITIES DEALERS OR BROKERS ANDAS SUCH, DO NOT HOLD THEMSELVES TO BE. THIS PRESENTATIONSHOULD BE CONSTRUED AS INFORMATIONAL AND NOT AS ANADVERTISEMENT SOLICITING FOR ANY PARTICULAR PURPOSE.ALL SECURITIES HEREIN DISCUSSED HAVE NOT BEEN REGISTERED ORAPPROVED BY ANY SECURITIES REGULATORY AGENCY IN ACCORDANCEWITH THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES LAWS.
Agenda About REI Capital How We Work Real Estate Overview Asset Classes Market Analysis and Due Diligence Investment Strategies What’s In It For You
REI Capital LLC is a private real estate investment fund established to take advantage of opportunities for profit in single-family and multifamily properties throughout the USA. Provides investment opportunities to investors looking for a stable return
REI Capital Management Bob Malecki Founding member of REI Capital Experienced in acquisition, repositioning, lease, finance, and resale of residential and multifamily real estate Wendy Ceccherelli Co-founder of REI Capital Full-time real estate investor, and designated broker with Home Land Investment Properties, Inc., licensed in the State of Washington
What We Do REI Capital LLC acquires and repositions real estate assets in growth markets for substantial ROI We improve communities by upgrading local properties and providing safe housing We provide a preferred return and equity to our investors
Why Real Estate? Real Estate generates a steady, strong stream of cash flow Value (equity) can be increased proactively through repositioning Easily leveraged to reduce cash outlays Provides risk diversity in both asset class types and geography
Why Now? The “post bubble” housing market has provided exceptional values for property acquisition Low mortgage rates provide a cost effective venue for new home buyers Displaced home owners forced into rental market 80 million Echo Boomers will require housing as they reach adulthood
“If I had a way of buying acouple hundred thousandsingle-family homes I wouldload up on them.” -Warren Buffet, 2012 interview on CNBC
Target Asset Classes Residential Repositioning Build equity for future resale Create recurring income through cashflow Improve communities, home values Multifamily Properties Purchased in key “emerging” markets Increased demand from declining home ownership Less volatility than other asset classes
Markets & Due Diligence Careful research to identify key “emerging” markets to purchase properties Evaluate and select properties in key submarkets with best performance potential Perform extensive due diligence for both physical and economic integrity Identify multiple exit strategies to hedge for demographic or market changes
Value Added Strategies Single Family Homes Purchase a distressed home, renovate and sell to an owner occupant (fix & flip) Multifamily Property Purchase stable apartment building in an economically healthy market, then increase rents over time to increase the value of the property Notes Earn interest from repositioning distressed notes
Sample Projects 8185 View Ridge Ln. Poulsbo WA Purchase Price: $135,000 Renovation & Expenses: $ 68,175 Sale Price: $262,626 Net Profit: $32,303 (after sales expenses) Project Time: 98 days from purchase to sale
Sample Projects 9022 3rd Ave. Seattle Purchase Price: $245,000 Renovation & Expenses: $26,267 Sale Price: $364,000 Net Profit: $92,733 (after sales expenses) Project Time: 44 days from purchase to sale
Sample Projects Oklahoma City Multifamily* Purchase Price: $2,080,000 Cashflow After Debt: $106,673/year Cash-on-Cash Annual: 23.2% Equity Growth In 5 Years: $683,000 *Just acquired, figures are projections
Investing With An IRA Savvy investors are growing their retirement funds with the Self Directed IRA Transfer to a SDIRA Custodian Create a Direction of Investment Profits are realized tax-deferred or tax free Roth IRA: tax free Conventional IRA: tax deferred
Real Estate vs. Stocks Stock Market Paper securities Volitile Not secured by assets Real Estate Secured by assets Indexed to inflation Predictable long term growth
Investing With REI Capital Operated by experienced real estate investors Our skill sets allow for thorough evaluation and execution Established network of team resources Proven record of creating substantial ROI on investment projects
Fund Overview $5,000,000 capital fund 12-month minimum commitment Preferred Returns to investors paid quarterly after first 12 months Annual distribution of 50% equity after expenses paid to investors on pro rata basis 5-7 year exit strategy
Investor Qualifications Accredited Investors Net worth of $1,000,000 (excluding personal residence), or income for the past 2 years of $200,000 (single) or $300,000 (married). Sophisticated Investors An investor who has sufficient knowledge and experience with investing that he/she is able to evaluate the merits of an investment.
Q&A What kinds of funds can be used? Investors use idle cash, IRA funds, home equity or even borrow against their life insurance Do I get involved with the actual property or project? No, you are involved only with investing and making a great return! How can I invest with REI Capital? Once we determine your level of sophistication, qualified investors are provided a Private Placement Memorandum (PPM) for review, then a Subscription Agreement is executed to fund the investment.
Further Information Bob Malecki or Wendy Ceccherelli: 360.850.1252 www.REICapitalUSA.com