RealtyeVest has a stake in all real estate investments offered in our marketplace.
RealtyeVest is offering accredited investors the opportunity to invest in Illinois SFR Investment Fund 1, LLC. The project is eight fix and flip residential houses throughout the State of Illinois. The investor's capital will be secured by a mortgage with 1st lien position1 on each property. Investors can expect to be paid interest quarterly in-advance.
All properties are currently owned by The Ingersoll Group, seasoned sponsors with over 20 years in the real estate industry.
The investment strategy will be to rehab the homes to achieve ARV2 value then lease or sell the homes. If leasing, the tenant will sign a lease to own contract.
The total loan on the properties is $220,000, with a total ARV of $499,858, the borrower has agreed to pay the investors 10% of the net profits3 coupled with 10% interest.
|Term:||12 Months Interest Only|
|Interest Rate:||10% with additional 10% Profit Participation(2)|
|Prepaid Interest:||Borrower will escrow 12 months interest|
|Loan to Current Value:||70%|
|Loan to ARV:||44%|
|Projected Sales Price:||$499,858|
|Interest To Investors:||$22,000|
|10% Net Profit to Investors:||$23,987|
|Total Amount to Investors:||$45,987|
|Estimated Annualized Yield||21%|
The Ingersoll Group will employ a variety of exit strategies including but not limited to:
• Lease to Own – If tenant(s) have 580+ credit score the tenant will lease the home for six months, after six months the tenant is able to receive their own financing thus completing the purchase transaction.
• Lease & Sell – Sell to investor with tenant actively leasing property.
• Seller Financing – Contract for deed or land contract depending on state. Each property will be seasoned for 6 months and sold as an income producing property.Exit Strategy Case Study
• Met with sponsors numerous times to discuss project intricacies
• Obtained third party valuation report on each property
• Verified ownership of each property
• Verified through closed transactions that sponsor has ability to successfully carry-out the aforementioned exit strategy.
Security: The loan is secured by a mortgage and first position lien.
Guaranteed Interest: 12 Months worth of interest will be held in escrow and paid to investors quarterly.
Sponsor: The sponsor currently owns a diverse portfolio consisting of over 500 SFR, multiple land development projects, two hotels and some select retail spaces. The sponsor has also successfully exited over $500,000,000.00 in real estate transactions with superior returns to investors since the inception of The Ingersoll Group.
Exit Strategies: The Ingersoll Group will employ a diverse range of exit strategies to maximize the investment.
Low Leverage: Since The Ingersoll Group currently owns the properties they want elected to not over leverage the homes thus allowing for low leverage against ARV and maximum profit returns shared by the investors.
(1) 1st Lien Position – A lender or creditor in a first lien position has priority in case a debtor defaults and collateral has to be liquefied to settle the debt. For example mortgage lenders are usually in a first lien position; if a borrower defaults on his payments the mortgage lender is the first creditor to receive remuneration from the sale of the property.
(2) ARV - ARV stands for After Repair Value. This is an estimated value of a property after it has been completely renovated. This is a crucial number for those flipping homes and allows you to calculate the spread between what you should buying it for and the price you can expect to resell it for.
(3) Profit Participation – An investor earns a portion of the net profits when the real estate investment is sold or refinanced, this can sometimes lead to an additional hundreds or thousands of dollars to the investor. Net Profits are defined as Gross sales price less any and all acquisition costs, holding costs, rehab costs, closing costs including but not limited to liens, commissions, title charges, etc.
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.
The Ingersoll Group is a national private investment organization founded by Keith Ingersoll over 12 years ago with over 20 years of real estate investing experience. The Ingersoll Group is entrepreneurial and progressive in nature and grounded by long-term business relationships. We seek investment opportunities around the United States which will benefit from our experience, capital, and vast resources.
Currently the Ingersoll Groups operates a diverse portfolio consisting of over 500 SFR, multiple land development projects, two hotels and some select retail spaces. The sponsor has also successfully exited over $500,000,000.00 in real estate transactions with superior returns to investors since the inception of The Ingersoll Group.
The Ingersoll Group strives for excellence in everything we do. Our investments are concentrated in a few primary sectors, including: real estate, finance, and land development.
Keith Ingersoll graduated from the University of Central Florida with a bachelor of science degree focusing on business administration. Mr. Ingersoll went on to work for the IMG, a sports management group representing clients such as Venus Williams, Tiger Woods and Pete Sampras. Mr Ingersoll then went on to start Group of Champions, LLC, a sports marketing and management group in Orlando, Florida. GOC, either consulted of represented clients such as Dennis “3D” Scott, NSYNC, O-Town, Child Watch and several other well-known personalities. Mr. Ingersoll then went on to start the Ingersoll Group in 2003. Mr. Ingersoll is also a partner in Redcarpetmonday.com, Alhambra Investment Properties, and Southwest Housing. The Ingersoll Group also dabbled in the restaurant business, opening Scoreboard Grill in downtown Orlando, and Lucky Slice Pizza in Panama City, Florida. Mr Ingersoll was named “Top Ten Most Influential Men” in Orlando, by the Orlando Business Journal. Mr. Ingersoll is also very active in his community, he was the chairman of the finance committee to elect the current Sheriff of Orange County, Florida, founder of the young executive board for the Citrus Club, retired board member for the Margarita Society, and past board member for the Center for Memory Disorders. Mr. Ingersoll is married to his with Courtney of 9 years and has a 5 year old son Brooks.
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Property Type- All homes are single family residential homes
|Property Type||Single Family|
Galesburg, IL - located in Knox City. 45 miles Northwest of Peoria , named one the 30 best places for food lovers.
Springfield,IL - Capital of Illinois. The state's 6th most populous city and largest in central Illinois.
Rock Island, IL - Largest Island located on the Mississippi River. Has a large variety of homes ranging from historic to new construction to wood retreat.
Rockford, IL - 3rd largest city in Illinois. Population of over 152,000 people. Linked by highway to Chicago, IL, Milwaukee and Madison, WI and Iowa.
Danville, IL - Located in Vernilion County. Small town charm and known for Antiques and Boutiques.
Worden, IL - Located in Madison County. Rural city with rapid population growth of over 13% since 2010.
Belleville, IL - City located in St. Clair County. Ranked #1 amongst beautiful cities in IL.
The State:For investors, the state as a whole presents a good opportunity to capitalize on an accelerating market that is seeing inventory tighten to pre crash levels.
The time it took to sell a home in June averaged 49 days, down from 55 days a year ago. Available housing inventory totaled 59,088 homes for sale, a 14.0 percent decline from June 2016 when there were 68,720 homes on the market
The statewide median price in June was $216,000, up 5.9 percent from June 2016, when the median price was $204,000. The median is a typical market price where half the homes sold for more and half sold for less.