Performing Residential Portfolio
The Toledo Twelve, OH 43605
Debt • SINGLE FAMILY

Min. Invest

$5K

Target Hold

1.5 Yr.

Annualized Returns

10%


Profit Participation

10%

PROGESS - 31% PLEDGED

Investment Summary

RealtyeVest has a stake in all real estate investments offered in our marketplace.

RealtyeVest is offering investors the opportunity to invest in a performing residential rental portfolio that consists of single family, duplex and quadplex residences. The properties were acquired well below market value, rehabbed for rental then leased to tenants.

The portfolio consists of 12 properties making up 22 income producing units all of which are in Toledo, Ohio. Of the 22 income producing units 20 are leased while the other 2 are rent ready and expected to be leased by the end of June. All the properties are managed by Flex Property Management, a local 3rd party property management company that has a tremendous reputation and track history in Toledo.

Currently, the portfolio is valued at $562,000 using the sales approach, with a gross potential yearly income of $129,240. The sponsor is seeking a $383,000 loan, this equates to 70% of current value.

This exclusive $393,000 debt investment offering is secured by a first position lien. The sponsor is seeking capital to expand his rental portfolio in Toledo, Ohio which in 2016 was one of the hottest investment markets in the U.S according to Fortunebuilders.com

Exit Strategy

The exit strategy of the sponsor is to season newly acquired, rehabbed and leased properties for 12 months. After the seasoning period, the sponsor will refinance with low interest, long-term debt thus taking out the debt and returning all capital supplied by RealtyeVest’s investors.

Deal Timeline

  • Months 1-12 Continue to maintain near 100% occupancy for the entire portfolio.
  • Months 12-18 Apply for, secure and close on new long term financing.


Risk Disclosures:

The offering materials to be reviewed and considered by investors with respect to this offering include the information described in the website content relating to this offering (as amended and supplemented through and until the closing of the transaction) and the subscription agreement relating to such securities (see the "Documents" tab). We refer to all of this information collectively as the "Property Information Package". Investors should review the Property Information Package in its entirety before investing and should consult with appropriate legal, tax, and investment advisors. Please note that RealtyeVest is not serving as your fiduciary or advisor with respect to this opportunity.

Below are certain risks associated with this investment that should be carefully reviewed prior to any investment in this opportunity:

Forward-Looking Statements: Investors should not rely on any forward-looking statements made regarding this opportunity, because such statements are inherently uncertain and involve risks. We use words such as “anticipated,” “projected,” “forecasted,” “estimated,” “prospective,” “believes,” “expects,” "plans,” “future,” “intends,” “should,” “can,” “could,” “might,” “potential,” “continue,” “may,” “will,” and similar expressions to identify these forward-looking statements. Similarly, the financial forecasts contained herein and in any other offering materials are based on numerous assumptions. Although these assumptions are believed to be reasonable, they are all subject to uncertainty. Non-Transferability of Notes: The transferability of the Company's Notes is restricted both by the subscription agreement for that entity and by U.S. federal and state securities laws. In general, investors will not be able to sell or transfer the Notes. There is also no public market for the Notes and none is expected to be available in the future. Moreover, although there is a defined redemption date for the preferred equity investment in the Fund, an extension option may be exercised and in any event, there can be no assurance that the investment will be liquidated at or promptly after such maturity date (as it may be extended). Persons should not invest if they require any of their investment to be liquid. This is particularly important for persons of retirement age, who should plan carefully to assure that their assets last throughout retirement.

Real Estate Market Risk: Investments related to real estate are subject to market valuation risks that may be caused by changing economic and local market conditions such as local real estate market conditions, prevailing interest rates, the rate of unemployment, the level of consumer confidence, the value of the U.S. dollar, energy prices, changes in consumer spending, the number of personal bankruptcies, disruptions in the credit markets and other factors. Such conditions are beyond the control of the Company and of the Fund. Real estate markets are affected by many factors, such as general economic conditions, supply and demand for real estate investments, interest rates, the availability of financing, and other factors, all of which are beyond the control of both the Company and the Fund.

Borrower Credit Risk: The Company’s obligation to make payments on a Note will not be guaranteed for the length of the term corresponding to the borrower’s loan. The Company (and thus investors) will be relying on the borrower for the execution of its business plan in a way that enables the sponsor to repay the principal of the corresponding borrower loan. The borrower may not have a significant record of performance and may be unable to sell or refinance the underlying property in a way that enables the borrower to fulfill its obligations under the corresponding borrower loan. The borrower loan is being made with respect to a property that does not generally meet the financing criteria for conventional mortgages from institutional sources. Credit risk is inherent in the mortgage lending industry, and there can be no assurance that the creditworthiness of the borrower will be sufficient to assure the full repayment of the underlying borrower loan. The Company does not guarantee payment of the Notes or the corresponding borrower loan, and the Notes are not obligations of our borrower.

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Property Summary

The Toledo Twelve are located in Toledo, Ohio. Regarded as the Water Recreation Capital of the Midwest, Toledo rests on the banks of Lake Erie and the Maumee River in Northwest Ohio near the Ohio-Michigan border. While boating and fishing are popular pastimes in Toledo, there are also many other attractions Toledo residents enjoy. Should you choose to rent in Toledo, you will have the opportunity to see the Mud Hens play ball at Fifth Third Field, eat Hungarian hotdogs at Tony Packo’s, take the kids on a scientific adventure at Imagination Station, marvel at the ornate architecture of the Rosary Cathedral, peruse the shops at Franklin Park Mall and Hensville, hike through one of Toledo’s many Metroparks, tour the Toledo Zoo, and catch a race at Toledo Speedway. You can also see the Toledo Symphony Orchestra at Peristyle Concert Hall, the Toledo Opera at the historic Valentine Theatre Downtown, and the expansive collection in the Toledo Museum of Art. A short drive from Detroit and Cleveland, Toledo residents savor access to major highways, TARTA buses, and Toledo Express Airport In this portfolio, there are 12 total properties, six single family homes, four duplex homes and two quadplex homes. All the homes interiors have been completely remodeled and modernized for deserving families to rent. • 1215 Greenwood Ave. Toledo, Ohio 43605 – Duplex • 428 Potter St. Toledo, Ohio 43605 – Duplex • 2831 N. Erie Toledo, Ohio 43611 – SFR • 1125 Newbury St. Toledo, Ohio 43609 – Duplex • 714 Berry St. Toledo, Ohio 43605 – SFR • 3166 Brigham St. Toledo, Ohio 43608 – SFR • 738 Ashwood Ave. Toledo, Ohio 43608 – SFR • 557 South Ave. Toledo, Ohio 43609 – Quadplex • 715 Thomas St. Toledo, Ohio 43609 – Duplex • 2815 B-Street Toledo, Ohio 43608 – SFR • 3125 Mulberry St. Toledo, Ohio 43608 – SFR • 902 N. Huron St. Toledo, Ohio 43604 – Quadplex

Property Address Performing Residential Portfolio The Toledo Twelve, OH 43605
Property Type Single Family

Market Overview

Toledo was devastated in the 2007 – 2008 housing crisis and values remain extremely low due to the high percentage of bank-owned property sales, foreclosure sales, and short sales. Distressed sales in 2016 were 26.8 percent of all metro Toledo homes sales, compared with 23.9 percent in 2015. Short sales (sales in which proceeds generated are less than the amount owed) rose in metro Toledo to 17.2 percent last year from 10.5 percent in 2015.

These types of investment properties are gold for the right investor. While the retail side of the market still isn’t in great shape, investors have flocked to Toledo to take advantage of the low housing prices in the current buy and hold market. In a buy and hold market a good tenant base is key. Investors are finding it extremely easy to lease units as 45% of all households in Toledo rent.

Job growth in Toledo is heating up as well. In 2016 Toledo averaged 4.5% in growth compared to an anemic 1.9% nationally. Three main sectors contributed to growth, they were; Education, Medical Services and Government Jobs. In 2017 job growth is expected to be strong, currently on Indeed.com there are over 5,780 full times jobs available in the Toledo MSA.

Economic Drivers

Toledo Ohio is home to the headquarters of four of Ohio’s top 100 largest employers as of April 2017. ProMedica Health system ranks 15th employing roughly 14,000 people, HCR ManorCare, Inc ranks 44th employing roughly 7,200 people, University of Toledo ranks 59th employing roughly 5,800 people and Owens Corning ranking 98th employs roughly 3,100 people.

GM’s transmission and powerplant division located in Toledo, Ohio has also revealed plans to expand its transmission manufacturing capabilities to produce a 6-speed transmission for front-wheel drive vehicles. While GM has already planned to invest $500 million, this new program will have them investing upwards of $1 billion dollars in the Toledo plant.

"Six-speed transmissions play a key role in GM's commitment to change the way the world drives," said John Buttermore, GM Powertrain vice president of global manufacturing, in a prepared statement. "GM's investments in Ohio, totaling close to $1 billion dollars, is a significant vote of confidence in our employees and UAW Local 14."

According to the company, GM Powertrain's Toledo Transmission facility opened in 1916, and moved to its present location in 1955. The 2.1 million-square-foot plan employs 2,033 hourly and 265 salaried employees with an annual payroll of $276 million.

Fiat Chrysler also has a plant in Toledo, Ohio. In January, Fiat Chrysler announced its plans to invest nearly $700 million in its Toledo plant. The retool of the plant is in preparation for the plant to begin assembly for the next-generation Wrangler and Jeep truck which are to be released as early as 2018.

The investment will add more than 700 jobs to its current total of just over 3,400 bringing Fiat Chrysler to an impressive total of over 4,100 employees in Toledo.

Toledo is doing everything it can to cultivate its growing small businesses platform from providing free one-on-one counseling centered around the business planning process, including financing, market research, marketing strategies, and management and cash flow analysis through the Small Business Development Center.

Downtown Toledo has seen a huge revival in the last few years with new upscale retail, trendy restaurants, entertainment venues, etc. moving into what had been, for many, considered a somewhat of a forgotten ghost town for years.

Retail Centers

Franklin Park Mall is Toledo’s premier shopping, dining and entertainment destination with over 160 specialty retailers, Cinemark Franklin Park 16 & XD, and dining to suit from casual, sit-down restaurants, to quick eats in the Food Court.

Anchored by Dillard's, JCPenney, Macy's, and Dick's Sporting Goods, Franklin Park Mall is home to your favorite retailers including Toledo’s only Apple Store, Pottery Barn, Williams-Sonoma, Coach, J, Crew Mercantile, and Banana Republic. With destinations such as Francesca’s, Zumiez, Chico’s, H&M, PINK, Sephora, Pandora, Forever 21, White House | Black Market, Abercrombie & Fitch, and our popular outdoor shopping promenade which includes DSW, Old Navy and Ulta Cosmetics and Salon, Franklin Park Mall provides the greatest retail offerings in Northwest Ohio.

The Shops at Fallen Timbers is a huge open-air mall offers so much more than a traditional center. Stroll through a striking streetscape overlooking two lakes and a boardwalk area to explore an exciting array of specialty stores. Spend time with friends and let the little ones enjoy the children's play area.

In October 2007, the mall opened for business with Barnes & Noble, J.C. Penney and Dillard's, the latter of which moved from two stores at nearby Southwyck Mall, as its anchor stores. Two months later, Showcase Cinemas opened a multiplex theater complex at the mall.[6] Upon opening, the mall included several tenants new to the Toledo market, such as P.F. Chang's and White House/Black Market.

Downtown Toledo, Downtown is full of unique boutiques, handmade offerings, Toledo themed clothing and glass. There’s creativity with independent, one-of-a-kind retailers offering a slice of style from classic to contemporary to funky.

The number of storefronts, galleries and gift stores continues to expand, and shopping is becoming its own adventure. Downtown brings together a truly eclectic mix of businesses large and small. With these many options, shoppers can make the most of out every trip. Only here can you visit an artisan shop stocked full of quirky décor, and follow that up with a trip to the flagship store of Toledo’s sports franchises to pick up some gear that shows off your team spirit. With stores to search and hidden gems to find, there’s always something to explore in Toledo.

Learning Facilities

University of Toledo - The University of Toledo, is a student-centered, public metropolitan research university with 23,000 students and picturesque campuses recognized nationally for their beauty. The University of Toledo is one of 14 state universities in Ohio. The University of Toledo and the Medical University of Ohio merged July 2006 to form the third-largest public university operating budget in the state. The University is accredited by The Higher Learning Commission.

The University of Toledo offers more than 300 undergraduate, graduate and professional programs. Some of the programs include; Business and Innovation, Medicine and Life Sciences, Nursing, Pharmacy and Pharmaceutical Sciences, Health and Human Services and Engineering to name a few.

The main campus features nine modern residence halls, a gothic bell tower, a Student Recreation Center, a state-of-the-art classroom center in one of our original buildings, Memorial Field House, opened fall 2008, and a football stadium and new Savage Hall basketball and athletic complex, which opened fall 2008.

The Health Science campus is home to graduate health programs and the UT Medical Center, a Level 1 trauma center, offering innovative treatments for strokes and cancer found nowhere else in the state. The UT Medical Center, also features the new $5.8-million Orthopedics Center.

Mercy College of Ohio - Mercy College, located in Toledo, Ohio, is a private Catholic institution of higher learning with a focus on healthcare education. Mercy College of Ohio was incorporated in 1992 and offers certificate programs, and associate and baccalaureate degree programs. In 2002, the College expanded to Youngstown, Ohio where an associate of science degree in nursing and a certificate in Ophthalmic Technology are offered. The College has experienced an enrollment increase over the past ten years growing from approximately 800 students in 2005 to 1243 students in 2015.

The Mercy College of Ohio offers several programs of study including; Bachelor of Science with a concentration in Biology, Healthcare Administration, Nursing and Medical Imaging. In the Associate of Science category, you will find a 2yr degree in Cardiovascular Technology, Health Information Technology, General Studies and Radiologic Technology.

Medical Facilities

The University of Toledo Medical Center has been serving the health needs of the Toledo community since 1964. Established as a teaching hospital to train the future physicians and medical professionals of the greater Toledo region, UTMC remains dedicated to providing advanced care and healing in a patient-centered environment. With access to the latest clinical trials and medical research they are committed to teaching the next generation of health-care professionals.

Each year, more than 300,000 people rely on The University of Toledo Medical Center to care for their health needs. By offering best-in-class specialties, better outcomes and expert physicians, nurses and medical technicians in a superior continuum of care, UTMC has played a vital role in the health and healing of the Toledo region for decades.

Recent recognitions: UTMC is focused on advanced care and healing for our patients, below are some recent and continuing accomplishments.

  • Consumer Reports: recognized in 2016 as one of the highest-scoring U.S. teaching hospitals at preventing central-line infections between 2011-2015.
  • Becker’s Hospital Review: one of the 100 Hospitals and Health Systems with Great Oncology Programs
  • Commission on Cancer of the American College of Surgeons: 2015 Outstanding Achievement Award
  • American Heart Association and American Stroke Association: 2015 Get with the Guidelines Stroke Gold Plus Award
  • Human Rights Campaign Foundation: 2016 Leader in LGBT Healthcare Equality

The Toledo Hospital is a public hospital in Toledo, Ohio that is part of the ProMedica Health System. This level I trauma center is the biggest acute care location in the area, with at least 4,000 health care professionals, 1,100 of which being specialty and primary care physicians, caring for patients in any of the 774 beds.

According to HealthGrades, the Toledo Hospital is one of the 100 best hospitals in the nation! For two consecutive years (2015 - 2016), HealthGrades has recognized us as one of America's 100 Best Hospital. ProMedica Toledo Hospital has also been a proud recipient of the distinguished top 5 percent HealthGrades award. We’re the only hospital in Ohio awarded the Distinguished Hospital for Clinical Excellence™ for three years in a row (2013 – 2016).

In 2016, The Toledo Hospital received the following recognitions from HealthGrades:

    50 Best Cardiac Surgery Award, 100 Best Cardiac Care Award, 100 Best Gastrointestinal Care Award, 100 Best General Surgery Award, 100 Best Pulmonary Care Award, 100 Best Stroke Care Award, Cardiac Care Excellence Award, Cardiac Surgery Excellence Award, Distinguished Hospital for Clinical Excellence Award, Gastrointestinal Excellence Award, General Surgery Excellence Award, Neurosciences Excellence Award, Neurosurgery Excellence Award, Pulmonary Care Excellence Award, Stroke Care Excellence Award.

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