199 Unit Deal (Value Add, Class B, 70's Build)

Was not marketed to the public. Purchasing at $22,000 per unit less than a competitive class B property sold for per unit in the last 12 months (located 2 miles away). Rents are currently under market.

$6,000,000 of the $6,300,000 total raise has been completed. $300,000 remains. (((6% preferred return to investors followed by a 70% to investors, 30% to sponsors split. Once a 12% ANNUALIZED return is realized split goes to 50-50 for remaining cash.)))

1. Accredited investors only,
2. Minimum $50,000 investment,
3. PPM available upon request.

Recession resistant Midwest location.

Will complete $1,200,000 worth of property upgrades (in unit, common areas, and exterior) within the first 24 months of acquisition.

Property consists of 79 one bed/one bath; 100 two bed/two bath; and 20 three bed/2 bath apartments that average 869 square feet. The current average rents are under market rate rents for the Waukesha/Brookfield, Wisconsin area at $966 per month. Rent currently includes water, sewer, trash, parking and heat. Average market rents for unrenovated apartments this property should be at $985. Average market rents for renovated apartments at this property should be at an average of $1,028. Meaning, on average, we can add $19 per month per apartment for doing nothing at all to the unit and $62 per month for partial upgrades to the apartments. We plan to renovate at least 50 units. This means we conservatively estimate we will increase the property’s present-day value $1,186,200 (not including year over year growth). The property is currently 96% occupied. The plan is to hold this property for 7 to 10 years. Distributions to investors will be monthly & will begin 45 days after closing. (55 units have already been completely renovated and seeing above mentioned rent increases. 58 units have been partially upgraded by current ownership.)

The property is located in a prime location immediately off the Bluemound Road exit of I-94 (quarter mile from the interstate) and is located on the Waukesha/Brookfield border and is just a 15-minute ride to downtown Milwaukee. This is a “B” class property in an “A” class area demographically.

The apartment complex is 0.6 miles from Starbucks, and is immediately across the street from Sam’s Club. The following places of interest all less than 1 mile away from the property: Target, Menards, Farm & Fleet, Marcus Theaters – Majestic Cinema, Home Depot, Duluth Trading Company, as well as numerous chain and local restaurants.

Brookfield Corners is 1.4 miles away and consists of some of the highest quality & dollar apartments and shopping stores in the Milwaukee metro area. Brookfield Corners was constructed in 2017 and has studios, 1 bedrooms and 2 bedrooms available for rent. Rents start at $1,284 and are as high as $2,629. Brookfield corners shopping, entertainment and dining includes Arhaus Your Home; Bonness, Belair, Cyclebar, Café Hollander, Lululemon, Orange Leaf, L.L. Bean, Kendra Scott, J. Jill, Wahlburgers, Twigs, Von Maur, Silversport Cinema, and more. This development speaks of the strength of the 1, 3, 5 and 7-mile area demographic.

The property is also surrounded by other similar class B rentals that all have higher rents on a per square foot and unit type basis.

The property is currently under contract and the purchasing party is obtaining debt financing that will allow us to rehab the property and lock in long term interest rate between 3.75% and 4.10%.

The value-add play will include updated landscaping, common area flooring and paint, clubhouse and fitness center upgrades, and in unit upgrades that will include new flooring, appliances, paint and fixtures. Some apartments will get new cabinets and vanities.

About Justin Spaulding:

Justin Spaulding is President and co-founder of Spaulding Group, as well as SG Realty, (property management and real estate holding companies) which owns and manages $29,000,000+ of real estate including 350 apartments, and 3 commercial office spaces.

His most notable "full circle" deal to date was a value-add self-storage facility that he purchased for $2,400,000 and sold for $3,565,000 just 30 months after purchase on just $60,000 of total capital invested into the deal. Recognizing an annual I.R.R. of 723.2%.

Justin made his first real estate investment at age 19. He then decided to become an independent distributor for a leading direct sales company where he grew one of the largest producing sales team within the company. His direct sales income was the seed money for his real estate (and other) investments.

He has successfully raised more than $12,000,000 of 3rd party investment funds for real estate deals.

Justin is, most recently, a minority shareholder of MAVANA (Mixed Animal Veterinary Associates North America). MAVANA currently owns 30+ veterinary practices throughout the continental United States.

Justin was a NCAA All American football player at the University of Dubuque (Iowa) and in September 2019 will be inducted into the Univesity of Dubuque Athletic Hall of Fame.