Elite Capital Fund
506c Accredited Investors Only
General Disclaimer
This Business Plan contains privileged and confidential information and unauthorized use of this information in any manner is strictly prohibited. If you are not the intended recipient, please notify the sender immediately. This Business Plan is for informational purposes and not intended to be a general solicitation or a securities offering of any kind. The information contained herein is from sources believed to be reliable, however no representation by Sponsor(s), either expressed or implied, is made as to the accuracy of any information on this property and all investors should conduct their own research to determine the accuracy of any statements made. An investment in this offering will be a speculative investment and subject to significant risks and therefore investors are encouraged to consult with their personal legal and tax advisors. Neither the Sponsor(s), nor their representatives, officers, employees, affiliates, sub-contractor or vendors provide tax, legal, or investment advice. Nothing In this document is intended or should be construed as such advice.
The SEC has not passed upon the merits of or given its approval to the securities, the terms of the offering, or the accuracy or completeness of any offering materials. However, prior to making any decision to contribute capital, all investors must review and execute the Private Placement Memorandum and related offering documents. The securities are subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell their securities.
Potential investors and other readers are also cautioned that these forward-looking statements are predictions only based on current information, assumptions and expectations that are inherently subject to risks and uncertainties that could cause future events or results to differ materially from those set forth or implied by such forward looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, such as “may,” ”will,” “seek,” ”should,” “expect,” ”anticipate,” “project, ”estimate,” “intend,” ”continue,” or “believe” or the negatives thereof or other variations thereon or comparable terminology. These forward-looking statements are only made as of the date of this executive summary and Sponsors undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
Financial Disclaimer
This Business Plan further contains several future financial projections and forecasts. These estimated projections are based on numerous assumptions and hypothetical scenarios and Sponsor(s) explicitly makes no representation or warranty of any kind with respect to any financial projection or forecast delivered in connection with the Offering or any of the assumptions underlying them.
This Business plan further contains performance data that represents past performances. Past performance does not guarantee future results. Current performance may be lower or higher than the performance data presented.
All return examples provided are based on assumptions and expectations in light of currently available information, industry trends and comparisons to competitor’s financials. Therefore, actual performance may, and most likely will, substantially differ from these projections and no guarantee is presented or implied as to the accuracy of specific forecasts, projections or predictive statements contained in this Business Plan. The Sponsor further makes no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown in the pro-formas or other financial projections.
Agenda
1 | Executive Summary
2 | Team
3 | Why Elite Capital Fund
4 | Strategy
5 | Fund Setup
6 | How To Invest and Investment Steps
7 | Post Acquisition Expectations
Executive Summary
- Elite Capital Fund’s objective is to create steady cashflow year over year for the 5 year life of the fund; protecting the investor’s principal, while creating healthy net capital proceeds upon expiration of the fund of funds.
- The Fund of funds will hold investments in preferred equity and equity structures, with their corresponding risk and return profiles.
- Elite Capital Fund aims to provide a very simple and convenient way to invest in multiple asset classes and return a higher yield with less volatility than the stock market and single family rental market. Investment into the fund enables investors access to complex assets otherwise not readily available to the general public.
- 506c offering- Accredited Investors Only.
Elite Capital Fund of Funds- Team
Jed Johnson
- Co-Founder and Principal Asset Manager of Elite Capital Fund.
- 15 years experience as a real estate investor -6 years as a multifamily syndicator, asset manager and operator.
- Unique understanding of emerging and top preforming markets through years of experience in both single-family and multifamily investing.
- Strengths in raising private investment capital, networking and team building from years of investing in single-family and multifamily markets nationwide.
- Nationwide network of experienced multifamily syndication operators and asset managers. Ability to negotiate better terms for the limited partnership investors. Thus creating a much higher, more stable rate of return for LP’s. Access to multifamily offerings and opportunities not available to the general public.
Doug Krebs
- Co-Founder of Elite Capital Funds, and Vice President of Investor Relations.
- 12 years experience in the financial services industry which includes large banking institutions and wealth management companies.
- Expertise in business development, relationship management and providing strategic planning and direction for clients.
- 5+ years in the title and escrow field at two different Fortune 500 companies, managing real estate transactions in both residential and multi-family properties.
- Recruited and managed large sales teams in both the financial services industry and the title and escrow business.
- Commercial and Construction lending experience.
- Real Estate transactions in Arizona, Nevada, New York and North Carolina.
Jake Dean
- Jake brings 20+ years of real estate investment experience to the table.
- Founder and VP of client relations for a single-family real estate fund.
- Partner in wholesale mortgage company.
- Area of expertise in building top level sales teams, client relations and wealth management.
- Real estate transactions in California, Georgia, Tennessee and the greater Chicago area.
- Has built a multi family syndication network in the Carolinas, Georgia and Texas over the past few years.
Why invest in Elite Capital
Fund of Funds?
- Diversification
- Multiple funds (multi-family syndications)
- Geographically- Multiple emerging growth markets
- Experienced Team
- Real estate acquisitions and asset management
- Nationwide network of experienced syndication operators
- Strategic negotiations enabling investors ability to capitalize on higher more secure returns
- Convenience
- Opportunities to invest private equity have already been identified and vetted by the team
- Trusted network of experienced syndication operators/managers already established
- Highly sought after, difficult to access assets currently under contract
- Depreciation
- Bonus depreciation/Cost segregation
Strategy
- Elite Capital fund will invest equity primarily in “C” to “B+” class multifamily syndicated assets. Diversifying in emerging growth markets geographically.
- Fund of funds may invest in undervalued “A” class multifamily syndicated assets with value add potential.
- Underlying commercial real estate assets will have their own business plan, income potential and location.
- Fund of funds may co-invest alongside other Funds.
- Fund of funds may also invest in its own multifamily real estate syndications.
Underlying Assets
- Primarily Class “C” – “B+” value add multi-family real estate syndication model.
- Undervalued “A” class assets
Benefits of investing in these assets
- These types of assets fundamentally provide cashflow, allowing fund to potentially achieve a stable and secure rate of return.
- Capital Preservation and Protection through investment in hard assets.
- Historically thrives during a recession, given that it serves basic non-discretionary needs.
- Appreciation- Forced appreciation (value add/repositioning of assets), also capitalize on natural appreciation through growth factors in emerging markets.
General- Underlying Assets
- Built after 1980
- Emerging (Growth) Markets- Natural appreciation
- 100 units or more
- Stabilized (85%+ occupied)
- Collection rate (85% or higher)
- Low deferred maintenance
- Value add opportunities- Forced appreciation
General Criteria- Market Type
- Population Growth
- Job Growth
- Job Diversity
- Demographics
- Infrastructure
Fund Structure- Fund Size and Time
- $50MM
- Minimum Subscription $50,000
- 6% preferred rate of return distributed annually
- Begins after funds are completely deployed
- 12% target annualized returns
- 5 year term
- 2% asset management fee
- Paid to sponsor
Investment Steps
- SEC Compliance
- 506c Offering- Accredited Investors Only
- Review Fund PPM
- Execute Fund Subscription Documents
- Download investor documents
Post-Acquisition Expectations
- Starts after fund of funds is fully subscribed
- Preferred rate of return distributions projected to start after year 1
- Quarterly Financial Reporting
- Quarterly Investor Updates
- Annual K1
Questions
- Jed Johnson- Jed@elitecapitalfund.com (480) 299-3331
- Doug Krebs- Doug@elitecapitalfund.com (702) 595-2145
- Jake Dean- Jake@elitecapitalfund.com (801) 310-4330