9631 Delmar St
Overland Park, KS 66207
Debt • ASSISTED LIVING

Min. Invest

$10K

Target Hold

2 Yr.

Annualized Returns

10%


Profit Participation

10%

PROGESS - 21% PLEDGED

Investment Summary

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.


Investment Type:
Debt & Profit Participation
Term:
24 Months
Loan Amount: $900,000
Interest Rate: 10% Annually
LTV: 65% of Stabilized Value


Why You Should Invest:

  • Appeal: CNNmoney.com has continuously put Overland Park in the top 10 of the 100 best places to live in the United States. Forbes has placed it in the top 25 best places to retire.
  • Prime Location: Overland Park, KS is one of the wealthiest cities in the nation. The city has a booming economy while enjoying a 20% lower cost of living and the average household making $93,000 annually.
  • Extremely 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 and 70 percent of those individuals will need assisted living accommodations for an average of 3.5 years.
  • Lack of Current Inventory: National industry statistics show over 3,000 residential assisted living properties in California; over 1,500 in Florida; and over 1,000 in Arizona. Only 118 facilities exist in the state of Kansas.

Location Highlights

  • Overland Park is in one of the nation's largest and most diversified economies.
  • Overland Park has an affluent job market in service, technology and industrial fields.
  • Overland Park holds an average household income of $93,000.
  • The structure is located in a low-crime residential area.
  • Community residential setting versus a larger institutional setting.

Due Diligence Highlights

  1. Spoke with sponsor numerous times to discuss project intricacies.
  2. Extensive research on submarket and residential assisted living competitors.
  3. Spoke to industry leader to validate the business plan set forth by the sponsor.
  4. Verified sponso'rs qualifications and state certifications.

Exit Strategy

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.


Risk Mitigates

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.


Projected Returns

Property Purchase Costs
Property Purchase Price $360,000
Hard Costs $356,475
Soft Costs $367,075
Total $1,083,550
Selling Costs
Refinancing Costs $50,684
Profit Summary
Stabilized Market Value $1,330,458
Total Hard & Soft Costs $1,134,234
Net Profit $196,224
Bonus Amount to Investors 10% $19,622
Total Amount to Investors $199,622
Overall 24 Month Return on Investment (ROI) 22%


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 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
Year Built 1961

Property Location

Market Overview

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:

Sprint/Nextel 6,300+ employees
Shawnee Market School District 3,974+ employees
Blue Valley School District 3,313+ employees
38 / 100 [ Car-Dependent ]

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