Morris Single Family Fund
Pref. Equity • SINGLE FAMILY

Min. Invest

$5K

Target Hold

2 Yr.

Preferred Returns

8%

PROGESS - 1% PLEDGED

Investment Summary

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

Morris Invest “the sponsor” is offering investors the opportunity to purchase shares in Morris Single Family Fund 1, LLC. The investment opportunity consists of ten single-family homes to be purchased for the purpose of renting to third-party tenants in Indianapolis, IN.

This preferred equity offering is available with an annual 8% preferred return. Additionally, the sponsors are offering investors 70/30 waterfall participation on cash flows in which 70% of the remaining cash flow will belong to the investors and 30% to the sponsors. Investors can expect to receive interest checks quarterly on the 8% preferred return.

All ten single-family homes have similar floorplans. Each floorplan consists of three bedrooms, two bathrooms, kitchen and separate dining and living rooms. Each home has approximately 900sf of livable space. The homes are being purchased for $68,500.00 and will be rented at $900.00 per month. All utilities will be the responsibility of the tenant.

Morris Invest has helped hundreds of investors all over the world identify and purchase turnkey rental real estate. They specialize in maximizing returns on investment purchases. This fund will allow newer investors or even the most hands-off and risk-averse investor to take advantage of safe and stress-free investments with regular dividends as your reward.


Investment Type:
Preferred Equity
70/30 Waterfall Participation after 8% preferred return
Term:
24 Months
No extensions are expected
Raise Amount:
$550,000
Projected ROI:
31%


Why You Should Invest:

  • Above Average Returns: The sponsors are offering a 8% preferred return and 70/30 waterfall cash distributions with 70% belonging to the investors. The deal is slated to have a ROI of 31%.

  • Market Stability: Tenants in this suburban working-class neighborhood are employed with jobs proven to be more recession proof with low tenant turnover in these family-based neighborhoods.

  • Experienced Sponsor: Natali and Clayton Morris are the principles of Action Now Holding Company which currently owns 28 constructed rental properties with another two properties under construction. They have formed Morris Invest to act as the holding company for their single-family fund. Together Natali and Taylor have over 20 successful years of Real Estate investing.

  • Strong Local Employment: Indianapolis as a whole has an unemployment rate of 3.4% with job growth at 2.5% for 2016. Amazon has currently opened a new fulfillment center a few miles away from the neighborhood where these homes are located.


Location Highlights

  • All homes are located within five miles of Downtown Indianapolis
  • Homes are located in close proximity to major thoroughfares I65, Raymond St and Madison Ave.
  • Hardworking family oriented neighborhood
  • Close to neighborhood schools

Exit Strategy

Morris Invest will either move the properties in this fund to their personal portfolio, returning investment to investors in full at the end of the five years, or offer investors an opportunity to continue with a new or existing fund. Investors can expect a full balloon pay-out at the end of the term if they so choose after five years of secure quarterly dividends.


Risk Mitigates

Sponsor: Sponsor currently owns and operates of 35 home portfolio free and clear of any debt.

Transaction Structure: Morris Invest investors are to receive an 8.0% preferred return and participate in cash flows based on a 70/30 waterfall. Investors will receive their 8.0% preferred return and their 70% participation in cash-flow before the Sponsor may receive any profits from cash-flow.

Security and experience: A safe investment with a quarterly 8% dividend without the hassle of managing a property, communicating with a property manager, paying taxes and insurance, and worrying about tenants. The fund will do this for you while you gain experience as a real estate investor.

Purchased at a Discount: The newly constructed homes are valued at $80,000 they are being purchased for $68,500


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.

Signup or Login to View this Deal's Financials

Signup or Login to View this Deal's Documentation

Property Summary

All homes are new construction single-family residences with three bedrooms and two bathrooms. They will have approximately 900sf of livable space and rent for $900 per month.

The homes will be constructed of wood frame with siding exterior. The homes will all the pitched roofs with shingle covering. Each home is separately metered and all residences will be responsible for their own utilities.

The homes are located inside the Indianapolis beltway in a family orientated blue-collar neighborhood. There are many public schools nearby. Downtown Indianapolis is located at a distance no greater than five miles from the homes.

Property Name: Morris Single Family Fund
Property Type Single Family
# of Bedrooms 3
# of Bathrooms 2

Market Overview

Indianapolis is the capital and largest city in the state of Indiana. In 2016, the estimated population was 855,164. Indianapolis is the second most populous city in the Midwest and 15th most populous in the U.S. The city is the economic and cultural center of the Indianapolis metropolitan area, home to 2 million people, the 34th most populous metropolitan statistical area in the U.S.

Indianapolis, the 25th largest economic region in the U.S., the city's economy is based primarily on finance and insurance, manufacturing, professional and business services, education and health care, government, and wholesale trade. Indianapolis has developed niche markets in amateur sports and auto racing.The city is perhaps best known for annually hosting the world's largest single-day sporting event, the Indianapolis 500.

The housing market in Indy is strong. In May of 2017, The Indystar published an article with the headline "Indy-area housing market surges to record prices". Over the last five years median home prices have risen from $200,000 to $250,000. Closed sales are up 8.7% compared to 2016.

"Indianapolis becoming a single-family rental investment hotspot". As prices rise, renting may become a more appealing option than owning for many Indianapolis residents. Investors who enter the market now can maximize the yield on their investment by purchasing a property while prices are low and reaping consistent returns from rental income.
Credit www.homeunion.com

Indianapolis is home to 21 of the top 50 largest employers in the state. Some of the top employers in the area are:

Top Employers:

Lu Health University Hospital 13,500 employees
St. Vincent Emergency Dept 10,000 employees
St Vincent Senior Scv 10,000 employees
Peyton Manning Children’s Hosp. 7,000 employees
Iupui 6,800+ employees
IU Health 6,500 employees
Eli Lilly & Co 6,000+ employees

The current unemployment rate stands at 3.9%. According to Indeed.com there are currently 19,896 full time times currently available.

Indy’s overall economy is full steam ahead with no sign of slowing down.

Start Investing Today!