Exit Plan
In the case of shutting down the operation, the asset will be sold and return to the investor based on share percentage.  The company has the first right of refusal to buy back the shares from shareholders.  Individual investors could sell shares to anyone willing to purchase with consent from General partners.  The company can only be dissolved if 66.67% of capital are in agreement to dissolve.

blessingscpa@gmail.com

Hesed Investment Series

REAL ESTATE INVESTMENT PROJECT

Executive Summary

DFW area has been rated as one of the top metropolitan in terms of real estate investment (see attached article for market analysis, trends, etc.).  The population is growing at 5% each year steadily for the past 20 years and the trend is to continue for years to come.  Residential rental and flipping business will continue to generate moderate and healthy returns anticipating the population and job growth rate.  Furthermore, there is an untapped market that gains little attention and yet has a considerable uptick margin – the local strip malls.  There are many opportunities around metropolis where strip malls are selling at very depressed prices, and once renovated should generate 50% of return in 2 years.   To capitalize on the commercial opportunities as well as control the risk of investment, we establish a fund that will have the following unique features:

 The Fund is projected to have $3 million in total cash contribution. 
Minimum of $50,000 from each accredited investor.
Approximate 1/3 of the fund will be invested into rental homes aiming at generating 8% cash flow.
Approximate 1/3 of the fund will be invested into flipping or new build aiming to generate 12-18% of capital gain.
Approximate 20% the fund will be loaned to Construction Partner Company for strip mall investment at 10% of interest or other opportunities for similar interest return.
Each investor will have a distribution of 6% of investment annually at the inception of the fund every month.  At the end of each fiscal year, once all income and expenses are accounted for, there will be a yearly true-up payment to distribute all rental income and capital gains.  True up payments will be taken into consideration of the timing of the investment contribution, for example, the contribution made in the 4th quarter would only receive ¼ of the total true-up payment.
A general partner (responsibilities defined in master AGREEMENT) will be compensated with 1% of total investment, and 1% of the transaction fee (upon the selling of the property) each year.
The general partner will control company operation and investment decisions.
The general partner will manage the day to day income and expenses and prepare all financial statements (Income, balance sheet, and cash flow) and will hire M J Chua & Associates, PLLC to complete all franchise and tax forms including partner K1’s, and audit company’s financial statements if deemed necessary.
The Fund limited partners will be given opportunities to participate in investing in strip malls directly.
All shareholders are allowed to evaluate and vote for termination or continuity of the fund on a 5-year anniversary.

Fund General Partner and Manager Profile

Ms. Grace Wang has resided in the North Dallas area for 25 years and has been as a working professional for 20 years.  She started real estate investment as a family business in the late 1990s, has since gained experience in both residential and commercial real estate.  Her investment philosophy is very conservative i.e. zero risks if possible.  She is currently managing a sizable family real estate fund.  Ms. Wang specializes in business strategy, financing, reporting, accounting, other business, and the administrative side of managing a real estate fund.

Fund Construction Partner Profile

Mr. Michael Ma has operated a real estate investment company for over 20 years.  The company manages $10M in private equity generating revenue by running rental properties, flipping houses, and investing in commercial deals.  Michael is an expert in evaluating best entry and exit prices in each deal, he will be overseeing all remodeling and construction needs and executing them and acting as the listing agent for buying and selling of the properties.

Project Planning

The company that will operate the aforementioned fund has been registered as Hesed Investment Series LLC, a Texas limited liability company.
A Bank account bearing the above company name will be opened to receive cash contribution.
Each investor will be asked to sign and notarize a master “AGREEMENT” that will explicitly state all roles and responsivities of the general partner and the limited partner; each partner’s name and its associated ownership percentage.
All transactions will be disclosed to all partners through documents stored online, 100% transparency will be expected from the general partner.

Financial Analysis
Assumption:

Assets will be deployed within the same quarter of the contribution.
10% return for 1st year, and 12% return starting on 2nd year.