RealtyeVest has a stake in all real estate investments offered in our marketplace.
Purple Angel Homes has exclusively retained RealtyeVest to offer accredited investors the opportunity to invest in RealtyeVest Overland Park, LLC. The proposed assisted living facility, Delmar House, will be a luxury residential assisted living facility in Johnson County, KS in the city of Overland Park.
This offering will be secured with a mortgage having 1st lien position1 and evidenced by a promissory note that pays a 10% annual yield. Investors can expect to receive interest checks every three months paid in advance. In addition to an annual yield of 10%, the sponsors are offering investors 10% profit participation2 in the event of a capital event such as refinance or sale.
The plan for the home is to add an additional bathroom; office space; expanding the porch; finishing the basement; converting the garage into 2 bedrooms; installing sprinklers; and security systems. Modifications are also being done to the bathrooms and doorways to accommodate wheelchair access and eliminating trip hazards.
Upon completion of the project, the sponsors of Delmar House have the experience and ability to provide a residential community setting that gives seniors dignity with a higher quality of life. Due to having a lower overhead, these services will be provided at a competitive price compared to the institutional setting considered standard to the industry.
The borrowers will modify the home and fill with tenants over the first 12 months. During the second 12-month period, the borrowers will season the property at a stabilized occupancy. The sponsors will prepare for and complete long-term financing to repay the principal to RealtyeVest’s investors.
Security: The loan is secured by a first position lien. The first 12-months interest will be place in escrow.
High Demand: Over 70 million baby boomers will be retiring over the next 15 years, an average of 10,000 retiring every day. 4,000 people are turning 85 every day, 70 percent of these people will need assisted living accommodations for an average of 3.5 years.
Income: Average household income is around $72,000/ year for individuals and $93,000 /year for families. The average cost of living in Overland Park is 20% less than the national average.
Pricing and Business Plan: Due to a lower overhead than the competition, Delmar House will offer a better-quality living space with exceptional care at a better price.Definitions:
11st 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.
2Profit Participation – An investor earns a portion of the net profits when the real estate investment is sold or refinanced, this can sometimes lead to 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.
|Property Purchase Costs|
|Property Purchase Price||$360,000|
|Stabilized Market Value||$1,330,458|
|Total Hard & Soft Costs||$1,134,234|
|Bonus Amount to Investors 10%||$19,622|
|Total Amount to Investors||$199,622|
|Overall 24 Month Return on Investment (ROI)||22%|
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.
Anne and Mark are Certified Residential Assisted Living Specialists in Kansas. The primary visionary for Purple Angel Homes, Anne, is a top-performing realtor licensed in Kansas and Missouri. Anne developed an intimate knowledge of elder care needs as a case manager and teaching counselor at Community Living Opportunities, a firm serving mentally and physically disabled adults.
Michael M. (“Mark”) Fraser is a licensed realtor, nationally certified home inspector, and certified mold inspector; inspecting hundreds of homes and mastering skills at identifying potential property issues quickly and accurately. Previously, he led sales and design for Designed Business Interiors, a professional office space design firm. Anne and Mark have been rehabilitating homes for over 20 years, from small projects to complete additions to include changing load bearing walls and space reconfiguration. Mark’s attention to detail and experience with architectural drawing software combined with Anne’s design experience will contribute to fast resale of the finished property. They currently own 15 properties in partnership with Jim and Karen Genis. Anne and Mark have enhanced their knowledge through advanced training such as The Residential Assisted Living Academy and Fortune Builders Mastery Program.
Jim and Karen are Certified Residential Assisted Living Specialists in Kansas. Jim is a seasoned business professional in strategic planning, portfolio strategy, product management, marketing and creative innovation at the leading brands in six industries. Companies that he has worked for includes Hewlett-Packard, Hallmark Cards, Blue Cross and Blue Shield Association, DST Systems, VML, and Amoco Corporation. Jim holds an MBA from Northwestern University and is a licensed realtor in KS and MO.
Karen is an educator for the Olathe School District and former daycare business owner in Chicago, Kansas City, and San Diego. She developed, launched and served as director for the first preschool in the San Pasqual Union School District. She developed the complete business plan, funding, staffing model, physical infrastructure and gained approval for the project from the Board of Education. As a small business, the venture generated a profit in its first year.
Together, Jim and Karen are founders of Opal Sea Capital (www.opalseacapital.com) and currently own a portfolio of 17 rental properties in the Kansas City market. They have also completed multiple flips, property wholesale closures and jointly own 15 properties with Anne and Mark Fraser. Jim and Karen established their knowledge with advanced training that includes The Residential Assisted Living Academy; Fortune Builders Mastery Program; Robin Thompson Rehab Training; and John Schaub Buy-and-Hold Training; and several others.
The Delmar House assisted living facility offers a more intimate way of living for those needing to relocate to a senior care center. This location offers the city feeling while located in a suburban neighborhood inside Overland Park, KS. This affluent and well established area is home to some of the wealthiest people in the nation.
The 3,395 sq. ft. ranch-like home will go through renovations to the kitchen, bathroom areas, basement, and deck area. There will also be an additionally installed bedroom, bath, sprinkler system, office and other modifications necessary for Assisted Living. Once completed the home will have six bedrooms.
|Property Address||9631 Delmar St Overland Park, KS 66207|
|Property Type||Assisted Living|
|# of Bedrooms||5|
|# of Bathrooms||3.0|
This Residential Assisted Living Facility is located in Overland Park, KS in Johnson County. It is the second most populous city in the Kansas City Metropolitan Area behind Kansas City. With over 189,000 people the median income is over $72,000/ household and $93,000/ family.
The service industry makes up over 60% of the employment market. Health care, retail trade, professional and technical services, finance and insurance, and information technology are the city's five largest industries. Companies with headquarters in the city include Sprint Corporation, YRC Worldwide, Black & Veatch, Waddell & Reed, Ferrellgas, Ash Grove Cement Company and Compass Minerals.
The cost of living is below the nation's average by 20%. Overland Park is considered a city of the “first class” due to its high median income and average economic state of only 3.3% of the population living under the poverty line.
The top 3 employers are:
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