What the heck is crowdfunding and how are We #empoweringwomen to start Apartment investing IN their 20's?
Kaylee McMahon
Winner 2022 Success Magazine Women of Influence with Venus and Serena Williams, winner AAOA 2022 Real Estate Philanthropist CashflowQueen ?? education network, Co-Founder of Big Sister Security
What the heck is crowdfunding and how are We #empoweringwomen to start investing in the most stable asset available outside of #highyield #bonds in their 20's?
Watch and read below!
P.S.
Do you know how to use your retuirement account to invest in #alternativeinvestments ? We cover this here.
Watch and learn from our November Crowdfunding Webinar.
After The webinar click HERE-
HTTPS://THEAPARTMENTQUEEN.SPPX.IO/
Welcome everyone happy November thank you so much for taking the time to join today's webinar it is top of the hour
I'm delighted to have the one and only Kaylee McMahon um no also known as the apartment Queen she's a Founder and general, partner and key principal with nearly 70 plus a million assets under management and today we're going to talk
about or she's going to cover how real estate investing through crowdfunding Works.
Give us the different rules and regulations when it comes to crowdfunding um but before I hand it over to Kaylee I just want to kind of give you a quick synopsis of what self-direction is and
some of the options available to you in terms of the account types and then of course once you're ready to get started if you have questions put those in the comment box and we'll allocate time
We always encourage you to do your due diligence you want to consult with your attorneys your CPAs financial advisors before making any Investments so just quick takeaways I just know that
4. in terms of the different types of accounts that can be self-directed it's the ones that you're already familiar with for individuals you know whether it's a
with traditional you get a tax break up front you pay taxes later when you um when you reach retirement age 59 and a half and you start to take funds out with a Roth IRA however you know it's post tax dollars after tax dollars you've elected to pay those taxes upfront wrote out of account over time once you reach retirement age and you take those funds out as long as you've had that Roth account for five years is tax free.
some smaller accounts that can also be self-directed are
with hsas you have to have a high deductible plan so you want to check with your plan provider just to make sure that you're eligible and then of course any former employer plan qualifies whether it's an old 401k full through b or tsp type plan that can be self-directed
in terms of the contributions for 2022 I'll also
cover 2023 as well just because we got those updated numbers um so you can fund your account by making a contribution as long as you
have earned income for traditional Roth IRA for 2022 you can put in six thousand dollars if you're under the age of 50 uh seven thousand if you over at the age of 50 with
2023 we're going to see it um increase just a little so you can put in a total of $6,500 if you're under the age of 50 an additional thousand dollars. if you're over 50 for 2023 with set IRAs you can contribute 25 of your earned income for 2022 it's at 61,000 but uh next year for 2023 we're going to see it from possibly up to 66, 000. with simple IRAs right now is 14,000 and an additional 3,000 catchup if you're over the age of 50.
higher contribution limits you get to contribute twice once once an owner matches the owner for 2020 for 2022. You can possibly put up to $61,000 or $67,500 if you're under the age of 50.
With an Esa the contribution limits will stay the same
so it's going to be 2 000 per year per child so that's for both 2022 and 2023
and then with an HSA we do see an increase but right now for 2022 you can put in 36.50 if you're under the age of 55 for a family plan you can put in 7, 300
if you are 55 or older you have the additional thousand dollars for 2023 for individual plan it bumps up to 30 38.50 and then for family plan is 77.50 and
then again if you over the age of 55 you have an additional thousand dollar catch up uh the process for um to get started
SETUP-
Straightforward step
why we're going over crowdfunding so typically what we do and I'll go over a
little bit about the basics I'll go over a little bit about what we do and then a little bit about a market update just so that you can figure out what it is that you want to get involved with it's always good to kind of compare and contrast data of what's going on in the world.
there's a few economists that I follow and weekly market updates or I guess Capital markets that I constantly keep updating our team on so I'll kind of put all that together
Crowdfunding is a new opportunity for Real Estate state so this is something that likely has not been seen quite a bit being used or often being used in real estate and that was because BEFORE 2021 you could only raise 1 million 70 maximum with crowdfunding and so this made more sense for some other smaller opportunities and we'll cover what you're probably familiar with or the brands you're familiar with that do crowdfunding.
Now as of 2021 it starts to make sense so we'll go into the basics here and then like I said we'll talk about Market.
A little bit about us -Apartment Queen Investments is the name of our firm we're an experienced owner operator team we have over 72 million assets under management we are only investing in landlord business and tax-friendly States and we are looking towards Big goals for this year of having 200 million assets under management and
Our big goals big hairy audacious goal is is to create one billion dollars invested by For, and with women by 2030. So for those of you who like diversity Equity inclusion our offerings tend to be something that is attractive to those individuals that like a mission-driven life.
So what is crowdfunding?
A new and evolving method of using the internet to raise Capital to support a wide wide range of ideas and Ventures so this became a a game changer like I said in 2021 because after the lockdown and realizing we couldn't go and meet people and raise we had to have an alternative way to be able to publicly advertise but then also how do we reach the averageJane or Joe In America which you know for example those friends and family offerings and especially accredited
offerings which is what did exist to be able to raise funds online for Real Estate.
those were only going to apply to accredited investors and so how do we reach 88% of the remaining U.S population and even the world ?
looking for is smaller contributions from a large number of people and that's why we have the internet or the interwebs to be able to advertise this for individuals that are interested in the crowdfunding campaign or the offering are members of a crowd or group that may share we may share information about the project the cause the idea the business to use the information for those that are looking at it to decide on the collective wisdom the crowd if they want to invest and so this is something that usually when you see
crowdfunding offerings they usually have a mission behind them they're not just hey we want to make money like you know that's great and that's good and we should make money but also we have the ability to do more.
so types of crowdfunding that are available out in the universe are
let's go through some examples of Brands you're familiar with so
debt for example crowdfunding contributors would receive payments in exchange for contributions so this is like I mentioned debt based so it's like you're the bank if you've ever seen Moolah sense, GoFundMe crowdofund.
examples of this equity-based crowdfunding is when contributors receive shares in exchange for their contributions that is what we do so essentially ownership shares is what that means so if you've seen Angel lists theaters fund list cap Bridge those are some others but again you're not the lender but you are an equity owner in the project physical project
types of crowdfunding reward based and donations based
reward based you've probably seen Kickstarter out there and that's what I was hinting at earlier or Indiegogo this is something where contributors will put money in and they will basically be promised rewards in exchange for their support through priority access to the product once it goes live so these are examples of ones you're probably familiar with when it comes to smaller
Tech Investing For example or small startups pre-seed funds etc for again smaller startups, usually those are happening on Indiegogo or Kickstarter so you know you'll usually invest a couple hundred bucks because they're raising 100, 000 Max for what they need for their part their product that they're making or MVP minimum viable product. In real estate it is a little bit different.
There's also the last one donations based if you've ever seen
Patreon that's probably the one I'm the most familiar with there's also Friend fund and you caring so whether it's a non-profit that is raising funds for purpose or like I mentioned patreon if it's for a cause those are donations based so essentially all that is is charitable and tax deductible which is fine depending on your tax burden .
Regulation crowdfunding is a particular exemption so if you're familiar with investing in syndications or other types of group funding you can do a Syndicate. With this you can do basically group investing. There's many ways to do this and usually those are offered through an exemption so if you're seeing some of those that are out there in the world there's Regulation A, reg A +, Reg D, Reg CF and actually reg F as in Frank so we're going to go through reg CF crowdfunding it's an exemption and and that what that means is it enables eligible companies to offer and sell security through crowdfunding again Securities are basically shares of this company and when they say security I don't know if I Define this later but essentially that is when the individuals who are receiving the benefits of the offering that they're able to actually own a portion of the deal itself or the offering itself they have to own a security or a share and that secure charity is offered through an offeree or, for example, a sponsor like myself and that has to be registered with the SEC and then in this situation also with FINRA.
Regulation crowdfunding it's a lot, it really is one of the most difficult types of offerings I've ever done personally because there's so much regulation involved so on top of this it doesn't even mention this but like in Texas we have TBOC so you have your Texas business code law so actually that's the first level of law you have to abide by, and then on top of that then you have crowdfunding law, and on top of that you have SEC law so there's multiple layers of venting of your company's looking at your past track record looking at your bank accounts.
You know having to do an audit of all of your different bank accounts financials AND all of the Investments the company has done the track record verifying all this.
It's really hard to get qualified to be able to offer a crowdfunding offering like a reg a or reg A-Plus.
We have to use currently a crowdfunding portal that is regulated and approved by FINRA so it's on a public.gov website which are approved and then once they approve our off we get approved then the crowdfunding portal approves us and they won't accept us then we can offer on their platform and what we normally do is a launch!
It's called demo day so if you look at our current offering page that we have right now we actually filmed that demo day because we can't keep having it all the time to basically display to those that are interested what we're talking about:
HTTPS://THEAPARTMENTQUEEN.SPPX.IO/
when we say hey here's what we're doing here's our mission here's what we're looking to raise here's how you can get involved but a demo day is typically when you pitch why this is so important and how to get involved and
the cool thing with regulation crowdfunding is that both non-accredited and accredited investors can invest not every crowdfunding offering offers this
but it is a possibility which is what attracted us to do this and again as usual there's
always investment limitations for non-accredited investors because the idea here is to keep that investor from engaging in more risk than is necessary or in an unhealthy level of risk
so example you have a hundred thousand dollars in your savings account and you want to invest 100,000 of that in a crowdfunding offering and that's all that you would have, in case things happen in your life, we wouldn't allow that so we have certain limits and they're actually pre-regulated by the portal s.
Essentially-the crowdfunding offering has to take place through an SEC registered intermediary or a platform either broker-dealer or funding portal it has to permit a company to raise a maximum aggregate amount of 5 million through crowdfunding in a 12-month period so it used to be like I mentioned 1 million seventy and so now it's 5x in
2021 and so then it became a viable vehicle to do real estate deals with because real estate deals especially
these larger commercial deals require quite a bit of money to raise so with the current leverage rates right now. If we wanted to raise 10 million -we're about 55% leverage, so we would have to max out our crowdfund at 5 million which is what I've set ours at to be able to go after those assets. Also if we wanted to go after something that was worth 10 million bucks that would have been impossible doing it with the crowdfunding law before 2021. so it's more feasible now.
again the limit of the individual non-accredited investors that can invest the crowd about across all crowdfunding offerings in a 12-month period again there is a limit to that
Also there are an extreme amount of disclosures and information of filings with the commission so in the past you know if anything has ever happened in your life like you went through a divorce and then you had to file bankruptcy for example, that is a disclosure that has to be put into this offering ...
it's very personal and sometimes we go through things right?
But the point is is that the investors need to have full disclosure of of everything and it's simply just the truth so that's okay- that's a part of if you are doing a crowdfunding offering that these must be displayed in the offering... all disclosures of everything
A crowdfunding platform is like an online Marketplace that's what we chose instead of going through a broker dealer so we wanted it to reach a an audience that already was involved with Mission-driven investing and we chose the platform that very much is on the top of tech and also reaches mission-driven investors.
The platform is an online marketplace where funders or fundraisers can connect with investors to fund their projects independently so it's democratized unlike broker dealers crowdfunding portals have a number of limitations to the kinds of activities and service they can form I have an entire spreadsheet I put down I put through put together through the lockdown and there's probably 30-35 platforms on there and there were only four that would actually apply to having experience and the bandwidth to be able to do a real estate offering.
Again, like I mentioned this is so new and the ones that did for the most part they don't understand commercial real estate, they only understand investing in a single house /how to structure the legal documents to where it would be feasible to do only smaller deals so that's why it has taken us 14 months and three attorneys to be able to agree on on how we can feasibly and legally do our offering to get into multi-family commercial real estate which is where all the great returns are and more stable returns.
why?
because again you already know this, if you have 10 people leave 100 unit property it is 10% vacancy versus a four unit and you have you know 4 people leave you're 100% vacant.
This is just an example of a portal and this is not our crowdfunding portal but what we would see on the back end as an investor once you log into your portal once it's live is that you'd be able to see what offerings are available and then you'll be able to click on that offering and look at the information so the information that we have to offer for a crowdfunding offering versus a regulation D or Delta we're not doing that one in this example regulation
CF instead of having cert I'm going to use the ones that are appropriate for crowdfunding because the document names all change so in crowdfunding you're looking at an operating agreement of the company you are looking for or you're looking at a term sheet or several term sheets depending on how many different either companies or share classes there are and then usually like
I mentioned this is like the inside of your portal there's an external page that's going to list all of the documents the details what you're getting where to go invest and basically a summary a summary of what you're giving and again full disclosures or even publicly online so once again it's live then you can register or not register you can log in with your registration um login and username and be able to look at you know where do I click the button to invest now that's that's essentially then when you come back into your portal you'll be able to then see your future documents like your tax documents you'll get a K1 what other Investments are also coming available or are available and then also your dashboard to see where all of the previously signed documents are current documents if you want to review or anything or again like your tax documents so having a portal is absolutely required when we're doing a crowdfunding offering as I mentioned before um so this is something that I added to this because I wanted to I'm not going to go through the whole thing with you um but there's an extra level like I mentioned of due diligence that must be done on a crowdfunding offee, and so this is just one of the Three Financial reviews or audits that we had to go through.
Each one costs so much money it's crazy this is just all new for me normally like when you do a regulation D they don't do any of this stuff you literally like they check if you're a felon and then essentially you go to an attorney and they put together an offering that is likely hopefully fair in the offer, and in the investors favor, but it's up to the investor to do their due diligence at that point and look at all the wording and the documents and negotiate to basically look out for themselves.
you know none of this that I'm covering is done on a regulation D offering and then again reg CF is meant to reduce the investors risk and to make sure that that FINRA and SEC is doing more due diligence on the operator.
I'll let you know that
when someone goes through the lengths to do this kind of an offering you should feel very comfortable with what you're getting involved with instead of being so skeptical -which I believe you should be when you're looking at reg d ( you can just go find an attorney pay them they put together documents and you can raise unlimited funds -they have to be accredited but unlimited raise like regardless of how that affects them "
and then also when you have a friends and family offering through REG D that's something that the investor signs off that they have sufficient knowledge to vet the investment and in this situation it does not work that way in this situation basically they've done the vetting for you and then so this is an example of a financial review so timeline that we had to run into what I'm trying to get at here is that it's an extra layer of protection for the investors it's an extra step it's an extra cost and we go through it and then every time we raise above a certain amount like for us it's over a million we have to redo this and redo this and what they're doing is with the when you go over a million we have to do a financial audit this is a review for the
first million um but essentially what you're doing is you're looking at all the bank statements you're looking at all the bank accounts you're looking at all the
trends actions all the investor money that's come in and making sure that everything balances and actually is
accurate and then if as when you're saying hey I'm investing These funds into this LLC again it is it is checking
that is indeed the case so again when the next round of funding for an offering for example happens you know
that whatever is put publicly out into the public has to be matter of fact because again we hired a firm that is
non-biased not internal they're external um that actually the Fortune 500 anyway
point is is that they do a lot of due diligence for every dollar that's raised
um also what is now changed as of like three four four weeks ago we've had to
readjust our offerings is that our new uh limits have changed so normally like I mentioned it was 1 million 70 for the old limit now it's 5 million for the new limit and so now there have been limits as well for the investors that are investing and so I'm just going to focus on what is current and not past because this is what matters and again if you need this link for the the sec's website it's-
forward slash rules final 2022 Etc PDF and so it'll pull this up and -basically show you that thresholds have changed for the home in America because inflation has happened right so we can't buy as much as we used to and that's what happens with and with uh with inflation now however once your money is locked up in a deal where you're collecting rents the uh inflationary factors actually help us be able to make more on our rent so it's actually good once it's in a real asset but but here what I'm
trying to show you is that that the change has changed the change has happened where we're able to basically
all Fast Forward here we can raise between 600 000 and 5 million with financials that have been audited by an independent CPA um I think this might uh yes the threshold limits for
investors this is when you're like oh if I want to invest what is what is my threshold again the portal that we have enrolled in and we partnered with this will happen once again it's live.
we do a thing right now and I'll give you guys a link where if you want to get involved with us if you're wanting to do the crowdfunding offering or if you're accredited you can go to another offering but essentially what it will do is it will get you to register and then once it is live after you've registered you'll get a notification you'll go in the back end and essentially this will cap you at how much you can invest and again these are the new rules that apply so just so you know again it's meant to keep the investor safe and to make sure that you're not investing more than makes sense um my old rule was 10 but again this is
just how crowdfunding works so if a non-accredited investor has an annual income or net worth that is less than 124 000 they may invest the greater of 2 500 all day long or five percent of the greater of the investors annual income or net worth so if you're income is more or your net worth is more you can do five percent of either one of those those are all all gravy you know whatever you're good with and if a non-accredited investor has an annual income or net worth that is equal to or more than 124 000 they may invest the greater of ten percent of the investors annual income or net worth and then again it is not to exceed 124 000 so um you know if I put a range out there anyone can invest $2500 bucks with our offering we start with $5,000. Basically anyone could in the crowdfunding world and anyone could invest a maximum of 124 000. so what I'm trying to get at this summer actually used to be smaller before uh inflation adjusted rates uh or limits have been raised but um so even if you make like a billion dollars a year as a non-accredited investor (which likely you'd be accredited at that point) but you would be still capped at $124,000 so again this is meant to keep the risk down for investor so there's also another level like I mentioned of what you have to enroll in as a company that's offering this and so I want investors on the outside to know this there's a multi-layered amount of services and again basically risk mitigation practices that we have to get involved with to be able to offer these offerings so we've got to salary or a fractional salary a CFO we need to have a Chief Financial Officer on our team that essentially is doing fund accounting on the fund itself won't get into the particulars of the type of method it's discounted cash flow method.
That person has to be very well versed at fund accounting which is very different than all of the other offerings that we have done and this isn't an attempt for us to make sure our asset level financials are correct so and up to speed not waiting until the end of the year to file our taxes making sure month over month we can see the activities that has been reconciled month over month again and then quarterly we are putting that together in our book of evaluation using sorry I kind of already did discount cash flow method so essentially it's like to the minute valuation um so this is something that gives investors that are already invested in this offering or in this um I don't want to call Fund in this offering uh an idea at least quarterly of what the shares are worth you know um not that that matters too much but I think that investors like to know that and again it's all reconciled so it's accurate which is I think cool that helps us to have all of this ready for our audits that we have to do the audits are publicly published so if you're in the crowdfunding port in the crowdfunding platform when you're
logging in to check either k1's your tax information you're looking at the documents you've signed etc etc the audit information would also be in your portal or in the main area of the portal maybe it's not in your account but point is is when you log in you can then see that information so again it's just disclosure disclosure it's just so transparent this is not something you'll ever find with a regulation D offering!
Again like I said reviewed financials are something that we do on the regular we also have a rolling close on the way
that we do this and so depending on when you put the money in that depend that will then predict when you get paid and it's rolling based on your investment date and then also a capital call in this situation I want to explain to you a lot of investors you know have a negative connotation with capital calls however in this sense when it comes to funds in general and then when it comes to crowdfunding the way that we have set up
our offering is when you see and again you got to read all this but when you see the word Capital call or call the
capital what you're seeing typically in a rolling close fund or a fund that um
is acquiring assets as it goes and raising for a certain amount of time that essentially the investors come in
they put in their commitment and then when um when we're ready to call the capital the investor had already put in
10 of their total investment um and then basically we reach back out to investors and say okay now it's time
to invest 90 with us uh into and in the meantime when investors are waiting uh
to invest the full amount of their commitment uh they need to be putting those funds into say like a money market account something that's liquid that
they can make some return on but then also move it over immediately because that is absolutely required but you know
it's not um you know some investors think it's a negative connotation it's more you know
trying to make it towards comfortable so that is a possibility when you are dealing with funds that's a possibility
when you're dealing with crowdfunding or any other kind again these are just things I want you to read and be familiar with and understand
um so the funds have different structures and they have different fees so again like I mentioned earlier when
you're looking at a crowdfunding offering you're going to see a thing called a term sheet and our term sheet is like a swap out for REG D we'd have a
PPM and so I didn't want to use the name because like that goes away TPM goes away and it's a term sheet so the term
sheet would identify all the disclosures all of the previous operating history of the offeree it would have like
disclosures at the market the risk of the economy it would tell you everything that we've run into in the past how we
handle those problems I mean it's just it's a lot of information it's taken a long time to get all this articulated
and so I just want to show you an example of our structure and other structures can be different where
essentially for us we have crowdfunding investors all out in the universe on the internet and then they all come together
and for us again this is just disclosure of how we set it up we will have all the investors come into an entity called
VernaFunD CF LLC it is a SPV it's a special purpose vehicle so what that
means is because we have the ability to have up to well actually between 500 and
1000 investors depending on how much they input I mean it could be way less than that but we're just preparing for
the worst meaning that there's a lot of admin expense there's a lot of time there's a lot of uh K1 there's a lot
going on you know when you take on that many investors and also I'm going to be transparent with you the way that crowdfunds are set sorry crowdfunding is
set up is that you as an investor are going through the portal uh you are not contacting your sponsor
um so we have the ability for those that invest above for us every offeree has their own way they do things but if
we're going to take smaller amounts than $25 000 then we need our investors just to focus on getting their information
from the portal and not emailing and texting and calling the sponsors who must stay focused on operations
Those that are investing more that want to maybe learn more or get more involved in the future and say I'm going to double my investment every time
that invest with you then there's a different relationships a relationship set up there but the point point is is
that this SVP or special purpose vehicle what it's meant to do is take those 500 hopefully or less investors and a cap table or capitalization table is the list of all the investors that we have in our deal or in our LLC for example
and so the SPV shrinks like 500 investors down to one entity this is
that entity and then we have a manager group that is ours that is the operator of that now there's no way that we could
get a loan if we didn't do it like this I just want to let you guys know that it has nothing to do the lender needs to
know that there is a one decision maker that they deal with and that they go to that is very important and again we
would not qualify for agency debt which is Fanny Freddy or other debt vehicles that we need to use to be able to
purchase these properties so um for us that LLC like I mentioned with
all the investors and it shrinks down to one SPD and then it is a reg CF issuer
is what it's called and then that issuer issue shares right and then that bunch
of us invest into the real property that is the absolute required
um that is absolutely required of a crowdfunding offering and so it's just a little bit different than normal so whether you're listening to this as I
want to do this as an investor I want to set one up I by the way y'all I teach a full set of classes that I recorded that
I do weekly and have in a portal for you as well if you're wanting to do this yourself and offer this because there's
so many pitfalls and things that we've been through where people you know take advantage of someone who's new at this
attorneys all kinds of things and so I've created guides and legal docs and all things to get through this but point
is is that one of the things is that in crowdfunding the funds and the equity shareholders have to invest directly
into the asset whereas if you do a reg D or some other different kinds of funds they can invest as a fund of funds so
they can invest your funds into another person's fund all day long they can invest your funds and essentially it's
an investment company is is what it's termed as investment companies cannot invest in
um or cannot be a crowd fund offering they have to invest directly into the real estate so sometimes people kind of
get confused about that and they don't understand um you would have you know multiple investors but they all those investors
have to go into the asset if you're not accredited because that's how we're taking those uh through crowdfunding has
been on accredited investors non-accredited investors so rules for advertising again I'm not going to open this this is part of the class that I
taught for those that want to actually do this as an offeree there's a whole new set of rules for how we can actually
do our ads do our copy and keep track of everything that's been put out into I love these in the word Universe
obviously to talk about what you're offering so there's different levels of what you can talk about and can't talk
about disclosures again that you have to give at the bottom of all of your advertisements um you have to be very careful even in
like your email copy as to what you can talk about but usually like to summarize rule 206 essentially your copy either
has to be talking about the mission and the purpose of the offering you're
getting involved in and what we've done in the past so it's more like a qualitative or there's like a Quant or quantitative
type of the offering post that you can do where it's more about here's the projected returns here's our past
performance more numbers driven so but you can't do them together and every single time when you have information
that goes out into the universe via rule 206 when we're doing it called test the waters we have to keep copy of every
single like Facebook post video website and put it into one document where we're
tracking it and this is tracking what's going out there again before that offering is live so there's a lot of
rules when it comes to this kind of offering and again if you were wanting to do this yourself I teach this in
another class if you want to create good copy which is so important to be able to speak to that mission-driven investor
who really cares about what you're doing you have to have the same copy and consistently have a landing page that
makes sense to 88 percent of the United States population so it's got it's got to be technical but a little bit more
um generally understood and then also same thing with your ad you have to have all these things set up
um and again having someone help you with your copy I mean we paid over 4 000 for just the copy then the landing page
then I hope you can't see that on my screen so I get notifications
um all this it's just there's a lot to it you know so it adds your landing page your copy these are just layers of
things that you have to have and again they have to all be compliant so um whether it's your attorney or whether I
mean I simply just read the rule you know what I mean it seems complicated but if you just break it down then you
know what to follow but um and then if your team for example if you have people on your team did 10 at one point working
on putting this out in ad form Etc they all have to also be compliant so it's just something that you've got to be
really cognizant of what's going out there now I do want to cover what is an accredited investor because that
definition also changed in 21 so if you're out of the loop for a while and I'm happy to add this to your your
vernacular of what this means the definition expanded and which that is good because that means an additional 12
of the American households became accredited which is cool um so why this is important to talk
about is because with an accredited investor the way that we're doing our offerings right now is we have two offerings we have one that is a
regulation D offering we use a platform called investment that investors go through that vehicle so we'll talk about
who qualifies for that then we have a crowdfunding vehicle as we've covered in this presentation which currently uh we
are pre-launch and we are doing ttw or test the waters as I mentioned where we talk about what is available and then
essentially as soon as the launch period is over and we actually have the offering available at the end of this
year then you'll be able to actually you know click the button to actually invest but we have to drum up all of the
commitments before that's just kind of how it works um and then you know call the capital when it's when it's time so an
accredited investor is a Bank savings or loan Association insurance company or registered investment company business
development company or small business or a rural business Investment Company um a sec regulated broker dealer as I
mentioned before that we can work with that is basically by the way your highest level of any kind of Finance
advisor quote end quote is a registered broker reviewer they invest themselves they have multiple
um degrees I mean they're people that know and practice what they preach just FYI but um also they're considered
accredited so is a investment advisor that's again SEC registered and also an
exempt reporting advisor a charitable organization Corp limited liability company partnership with assets over 5
million um also a plan this is cool established
and maintained by a State political subdivision agency or any political
subdivision for the benefit of its employees so usually that's like a pension fund example insurance company
example that has a plan that is in total assets over 5 million uh here's another
this is cool a director executive officer General partner of a company selling security so if you're part of a
real estate investment company or someone selling securities or if you're a director of executive office General
partner general counsel if you're a fund employee essentially you're boom you're accredited an individual with a net
worth or joint family net worth of the spouse or this is a new change or spousal
equivalent so it doesn't have to be a married spouse we've changed a little bit in that situation if you have at least a
million again not including the value of your primary residence so you subtract that out but again that expanded an
individual with an income over 200k for the most recent two years or a spousal
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couple or a spousal equivalent like I mentioned exceeding 300 000 for two
years those are also considered accredited a trust so any Family Trust with assets over 5 million and again
that trust couldn't be formed primarily only to acquire Securities and is
directed by a person in these legal standards of sufficient knowledge and experience and then this isn't on here but I'm going to get this wrong also an
investment advisor so a financial advisor that has their Series 6 3 82 I'm
sorry six six five 72-83 license and they're active in those license boom
they're also considered accredited so this just like super super expanded so there's a lot more people that are accredited even if you didn't think you
were so point is these accredited investors can pretty much invest into anything in the way that we're doing it
is we're doing it through a 506 d uh sorry 506c offering
okay so I'm just going to throw this out there just so you know um we also have started to take all the
stuff that's in my brain and offer classes every week so that you can actually enroll in becoming a Savvy
investor by learning from our lessons and so this is just whether it's legal strategy whether it's investment
strategy fundraising strategy security strategy there's so much that
we've had to create to be able to keep I call it Fortress strategy to be able to keep our our Castle secure so we're now
offering that weekly and so if you'd like more information I'm happy to give you my email after this
um so this is typical not always the same so for example whether it's crowdfunding or whether it's regulation
D typically they're looking for limited partners to invest a hundred thousand and then again the angel seed Capital
doesn't really apply to this presentation but typically they're looking for about a hundred thousand now
that's been what we've been looking for for an accredited offering but like I mentioned the way that we're doing it is
that we're doing crowdfunding for all those who are not accredited it and so we've actually changed our limit or
sorry our minimum to one tenth of the industry average so the industry average investment for any kind of alternative
investment is typically about fifty thousand dollars typically always the minimum and so we have lowered that to
one one-tenth of that um so again this is for those of you like me when you got into the world of
alternative Investments you wanted to get going you know when I was 22 and I didn't have very much money I didn't
have a you know Stout retirement account and so I ended up taking a small retirement account I had and being able
to invest in a non-legally non-collect non-correctly legally structured
investment but it still produces eight percent per month and that's why I mentioned all these things about Securities any investment where the
investors are looking for a professional sponsor or advisor that is in charge of
the investment to provide them a benefit without them actively being involved and there's more than two people
it's considered a security so so this is something that basically you
know just hopefully you guys can still hear me sorry I got a call uh this is just something that again has just changed
with crowdfunding so not all offerings are going to do this but like I said typically it's 100K uh the industry
average is 50k and then what we've done is we've sliced that minimum way down um and so typically they're like what are
you using this capital for Kaylee and others so it's for marketing it's for educational events to get investors to
invest in this property or in the offering itself whether it's several properties or one earnest money deposit
on the property feasibility costs legal fees and there are many other stock costs when it comes to acquisition of
the Investments themselves or the properties themselves so essentially
what we wanted to offer you I did send this in the chat um is the ability to be able to get
qualified for our offerings so we're already rolling with our offerings now and like I mentioned before how it's
working is that if you're an accredited investor your offering is already live and so there is a link that I uh put in
the chat earlier I can't send it to everyone but I'm hoping that can have some help there where essentially the um
go back to that sorry or essentially you'll go to this landing page and it's for the fund and again there's two
offerings there's a pop-up window that will come up and there's two buttons and I just went through for everybody what
an accredited investor is so you're probably marking down yes I am no I'm not um if you are credited you just click
the accredited button on that pop-up if you're everybody else who didn't qualify for all those things I mentioned you're
then not accredited uh or non-qualified but again it's okay because then that's where you go is the crowdfunding
offering so then you click the other button non-accredited and so depending on the button you choose that will send
you to the correct portal that is going to offer or hold your investment your documents uh all the communication
communication preferences Etc then all you do is just commit to how much you'd like to invest and like I mentioned on
the crowdfunding offering we're doing test the waters right now and so to be able to save your Equity position in
that deal because again we have a limit with how many non-accredited investors we can take there that one is one that
you'd want to basically put in your soft commitment and then notate how much you're looking to invest and notate what
kind of account that you're looking to invest with because again we can take IRAs retirement accounts so that they're
not sitting around because every day that you know you're not investing it in something is either appreciation or cash
flow or both um and then also tax advantages that will help to offset your other active
income taxes that you're just missing out on so it's there's no reason to let it sit around so yeah like I mentioned I
will send out that link and it's going to be coming to you in the chat um and it's forward slash fund forward
slash the last word and so you'll just click the button accredited or non-accredited and make your commitment
in the appropriate portals there's copious amounts of information investment documents what you get share
class numbers all the things that you need to know that are on those landing pages or on that landing page and your
separate portal pages so if you have any any questions of course through the website there's a contact form for us
that you know we can explain more to you and again if you'd like to email me that's probably the most efficient way
to get a hold of us whether you need that information or not I'm going to give you a a different phone number than
you see here it's our office line and so that's the one that you can actually text to get to the right place so if you
text you take this number down 214-699-8810 and you text accredited or
not accredited depending on what we learned earlier then I can just simply send you the link that you need to go to
to make it super clear so we have it on the landing page and then I can also just you know text it to you from our work phone so even either way that is
how to get a hold of us we're located here in Dallas Texas and now that we've still our last ask Phoenix Arizona by
the way at a three point six nine Equity multiple so our investors that put in 100K got 370 came back
um sorry it's awesome now since that sale has happened we are only in Texas so I'm
located here in Texas that stay that way so that we stay local um let's see and I can go over a quick
Market State uh renika if you'd like or do you want me to take off my screen do it
um yes I do have a couple questions that's coming in so you can feel free to provide any additional Insight but I do
want to before we open up the questions um this webinar is recorded it will be
on our YouTube channel within 24 to 48 hours um and also too um you'll get an email with that link to
to the recording a question that came up is um just bear with me Wyndham it's more
so a statement for IRAs that's your IRA money count towards your uh the network so yes the value of your 401k or IRA is
part of your network and should be included or able to be included in terms of when you're calculating your network
so to answer that related questions um yeah okay let's see
let me just go ahead and so the question is what is the average Roi and
um do I receive monthly dividends is the question that came in
sure so if you go to the I mentioned um it's the apartment clean.com forward
slash it's in the chat and I think uh that can be sent to you renika is that possible so unfortunately I'm unable to
send but however if if you do want a copy of the slides Kayla I know you're going to provide me the link to the actual slide I can also include uh the
link to these two um if someone reaches out directly to request that I can include those two
links but I'm not able to send it directly to to the group okay so those two links um one is to go
to the page where it explains all of this so it's going to be the apartment clean.com or fund fund uh forward slash
or if you go to the apartmentclean.com and go up into the top um uh number one
female focused fund it'll pop right up for you so that will actually explain everything ending in in each share class
and each investor you're accredited or whether you're not or a ton of money or less we really wanted this to be
Equitable to everybody so it's the same for everybody but to answer your question directly this one will be
returning a cash on cash annual seven thirteen percent cash on cash for
investors that is analyzed and the way that we do this fund just like we have every other investment we've done is
like I mentioned in this case the sooner that you're able to invest that starts the time clock as to when your payout
starts so we please have been buying assets that revolve around some kind of value ad so we have to do construction
we get rid of the non-paying residents we have to leave again we have to change
and fix the business and so we give ourselves a one-year Runway to do so so once you invest you get a one one way to
start your your dividends and those will come out quarterly so you pay out um quarterly and then of course on any
kind of capital event like a refund cash out a sale that will give you also an
addition and or final um amount of payment back to you so 100 plus so you'll get that cash on cash
record after year one and then also the fund will be targeting to get investors a minimum of 1.75 Equity multiple now
we've got a couple of deals in the funds now that are much higher than that so like a 2.9 x one's a 2X but we always
want to under promise and over deliver so if you want more information about about that and all the offering
documents it's just the apartment clean.com forward slash fund forward slash f-u-n-d
um and then what is the other questions okay so the other question is is the
annual income for the new inflation adjusted raise limits the same as the adjusted gross income
is the annual new say it again is the annual income for new inflation-adjusted
raised limits to try that you were showing um isn't the same as adjusted gross income
yes thank you for clarifying okay yes
all right so uh next question is uh just bear with me one moment I know you have
an additional document you want to share too but I just want to get to the questions um what is the average hold time for for
these Investments yes so it's also on that funds page so again the apartmentqueen.com forward
slash fun forward slash uh all information is there uh the projected hold time uh is five to seven years
um when you actually again recommend to actually read the offering document there is the ability so it's five years
it's a projected so I'll say five to seven um but it says five and when I say seven
that's because right now Market changing and knowing if something happens to where our traffic doesn't doesn't go uh
down or compress at all I don't want to question the details but essentially it's five years and we have the ability
depending on what's happening with the market to do a total of seven so our investors are investing with us they
understand that they don't want to lose money they want to be able to retain any kind of funds that they have made
through investments into sinking it into a real asset is a way to do that um so this is okay with a long-term hold
and being more patient with their Capital as you know the market okay uh next question that came up just
bear with me it's actually two questions um so you mentioned I'll do the acronym
b-h-a-g are you familiar with DLP capital and Don um weiner he used event he uses that same phrase as well and
then the second question is are you able to cancel out the deals with um the long-term rate being seven plus percent
Okay so I couldn't hear the acronym it said b-h-a-g are you familiar um so are you
familiar with a person um DLP Capital uh don weiner is the person that they're asking if you're
familiar with them and then of course are you able to pencil out deals with long-term rates being seven plus with
interest rates growing up going up uh second question yes question I think
you said b as in boys um Don are you familiar with him he's an
investment provider as well um DLP Capital are you familiar with that
I'm not uh Wayne or I have definitely heard that property management company that we've never actually had hired
now okay so the second question are you able
to cancel out deals with long-term rates being seven seven percent or higher yes and like I mentioned that's why our
cash on cash estimate is set to 13 now I don't think that we're going getting
that 13 that's for sure and we've had to be extremely selected with our deals actually partner with other women as
normally I could hunt and hunt and find something and now it's so hard to find at you know nine percent of what's
available off Market at this point uh so we've got to partner up with others yes or otherwise we just don't invest in the
property so we've had very few okay and I know you wanted to share like
a report feel free to do so um if you have additional questions you know and photos in the question box
yeah and so I just wanted to finish a little bit of a market update um on what we're seeing out there in the
world because it's important to understand where we're getting our data and what we're dealing with and what
what has happened so I do want to share with you that if you're not in DFW or if
you're not in the United States that DFW actually uh DFW through uh 10 through 2020 had a
greater greater population growth than 47 States so put that in your back pocket that's
on is when we're looking to invest in BMW um we also know that Texas so if we're
looking to invest in Texas which is where we're investing now that they have 53 or more Fortune 500 companies than
any state we have a few more that have announced this thing here so that's obviously really great for population
growth metrics uh not all of them are moving are moving to Austin some are moving to
Houston to other smaller places kind of outside
of Austin for example so that's another great thing is you want to for sure see that population growth it grows home
value growth crime decrease happening wherever it is and again we just invested with with our
fund offering um in our other offerings as well um and then what we're looking to see is
about 16 percent growth through 20 times not saying that that is how we're
underwriting we're not doing our final analysis we are simply keeping up with inflation but check this out here's
another thing that we have run into and hence why we have changed our investment strategy a little bit so what we're
seeing and it's so crazy is that inflation rate is around two percent
like around it could be a little less a little more labor has increased to five
percent uh event and it's going to continue to increase till 2025 or at
least again this is coming from some economists that I follow the labor what I'm trying to say is
outpacing inflation uh so labor has a more expensive than we ever could have
predicted um and I'm sure you guys if you're in a certain business where you're hiring laborers or you know
you're partnering those that are in construction for example you're seeing this as well but that's also caused the
challenge when it comes to even like c-suite Executives for example not just labor hiring has been incredible
so that's going to only continue to get based on a few reasons um so if we're looking at properties
we're looking more for properties that are like 1982 uh closer to 19 vintage or
billed because we know that we are not going to have or need all of that labor to be able to do the
renovations that we normally have been okay with doing we've been okay with saying oh yeah it needs a new roof oh yeah exciting that's fine but now with
labor shortages and really more so labor costs it doesn't really defense uh to be able to also get our investors to return
so we've got to be a little smarter in what we're investing in so that's what we're doing um and then also I want you to know that
for example if you're looking at how large Texas is and the population has become I think Texas makes up nine to
ten percent entire United States uh sorry uh yeah United States population
so um get that right yes I got that right
um so that's a pretty decent chunk and obviously you know that there's others like New York and La that have a large
concentration one area and then here's another fact that that I want you to think about because you're probably
dealing with it too whether it's your family members or you is that right now as of ago there are four trillion
dollars sitting in Americans checking accounts making no money literally no
money and that doesn't make sense and so I mean we're highly liquid but people are taking a pause but again you have
money sitting there not making any return that doesn't even make sense and that's not even in like any Market counts that's in just checking so I mean
minimum get it into a money market and better so better so to be able to save yourself on taxes and be able to have
controlling funds um because again inflation is happening would be to self be able to put it into
a solid asset it doesn't even have to real estate y'all I mean you can invest in a cannabis farm you can go invest in
land and dirt you can go invest in gold you can invest any physical asset I mean
seriously trying to put your money in there checking knock it off like take your
enough to live off of for 18 months because what I'm seeing based on a few things 18 months we're going to see a
big shift in um in everything in the real estate economy is also normal like
the entire economy and with inflation being the way that it is all that's going to do is devalue the money that
you have that's not in a safe your vehicle so uh take that into account and stop letting money sit around in your
checking account on it um and then uh we're gonna see a lot of automation changes happening to be able
to access labor problems we're having that again is get worse because the policy
that we've had is not and I again I don't know who the next president's going to be and I'm not political but we don't know you know who
is going to control our borders being completely shut down are we going to be able to have affordable labor or any no
are we going to be able to ship overseas labor no do we have connections with China anymore no do we you know so all
that does is increase this problem of having labor um it's more inaccessible and more expensive the automation has got to come
in so essentially that's another part of our business exploring um but it will take time
and then um I want to let you know that if you'll look up um and this was again two and a half
weeks ago or so um there was what we call like a Lehman moment so before uh the crash that we
had a long long ago um there were there was a moment you know where Lincoln uh was showing that
essentially that what was going to transpire was was happening and so only if the people were able to recognize it
and act on that uh but right now two and a half weeks ago um England
um they have Pension funds in England they they have a large pension fund there uh I forget the name of it uh
because I can't read my writing it's like diyer d-i-v-e-r uh but point is is they have a
pension fund that uh showed a lean moment if you will or essentially uh
that was that became it became negative so it was no longer profitable and they're trying to move their funds out
of England um to America so um we have not had it yet but when we
did like I said this quote Lehman moment for us it was watching a large stock
a large public company we'll just call it that AIG those are your best indicators of the behavior of their
um their assets and what's happening with their assets that would be kind of like this first thing that you're going
to see when we see like a " Lehman moment " again I don't believe that what we're going to do is the same because we
have other things now like I mentioned such as automations artificial intelligent and I'm also noticing the
extreme amount of resistance and pushback in the commercial real industry to those things and so for those of us
who are open to that and are making strides to go back to school for example and be able to add this to our business
for the ones that are going to be able to survive no matter what's happening with with the economy and what I just expect so that's just a little little Glimpse I would really go check out a economist uh Dr Mark dotzour a Texas A M and Professor there he actually is going to go dark in 2023, but he has a very good idea of explaining what we're seeing now for example you know with the funding defunding oil and gas with our trade China Etc and how that's going to affect everything that we're doing. and he has these reports that he does on his website so if you go to Texas A M real estate Center and go look up Dr you can find more information about up-to-date um statistics such as I just
shared. Again if you want to email me I'm happy to send you these two links my email is on the screen right now it's admin@ t-h-e apartment a-p-a-r-d m-e-n-tQueen q-u-e-e-n.com I can send you the link for the fund which again is cleaned up
on forward slash fund and that will help you to decide based on the buttons at the top where an accredited investor
would go where an investor would go and the last thing I want to leave you with is I've noticed that make it through
quite a bit of my career again whether it's legal whether it's a fortress strategy Safety and Security data
we even talk to our investors on an encrypted server there's so many things that we do that are a little bit different based on lessons hard lessons
we've learned um and so I've started to investors and those that want to become a deal sponsor
already are and want to tighten up their operations uh or see you really good at
protecting their investors and that's something that we also want to email me about those weekly classes that we offer
that's something else we can do we want to pride ourselves on is good audience educated investors and obviously making sure that you have offerings and opportunities to invest in.
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11 个月That's a Brilliant Question that Someone, much more qualified that I am in this field, will surely be able to answer
Yrēfy Investor Relations ??? Capital Raiser Show Host ??? Build to Rent Syndicator ?? Capital Allocator
1 年Go get it!
?? FUNDING Options ★ Consultant - Debt & Equity ★ Teacher ★ Author: us$10mm-$100mm+ CRE / its Tech Projects & Businesses
1 年Appreciate your #FinancialEducation posting. Saved.
Finance Expertise For High Growth Companies
1 年You're on a great mission Kaylee!