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Completed Debt
Residential
50th St. Single Family Rehab
Los Angeles, CA
INVESTMENT STRATEGY
INVESTMENT TYPE
Debt
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100% funded
Offered By AH Capital
%* TARGET IRR 10.0%-%
* TARGET EQUITY MULTIPLE
Estimated Hold Period 6 months
Estimated First Distribution
*Please carefully review the Disclaimers section below, including regarding Sponsor’s assumptions and target returns
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Project Summary
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Explore this Project
Overview
Investment Highlights

Senior Loan Originated by Starwood Mortgage Capital LLC ("Starwood")
The preferred equity investment will be subordinate to a senior loan originated by Starwood, which is anticipated for a Commercial Mortgage Backed Security (CMBS) execution

Historical Occupancy
Five of the six assets in the portfolio have been 100% leased since 2011 and portfolio occupancy is at 95% as of July 2017

Additional Equity Infusion
The Sponsor infused an additional $1.3 million into the transaction during the June 2017 refinance

Management
Cumulative Distributions

AH Capital

AH Capital is a real estate investment company focused on taking advantage of opportunities in residential properties. They operate in Los Angeles, Raleigh-Durham and Atlanta and acquire single family homes and duplexes (REO's and foreclosures) that are in disrepair and then fix and sell them as fast as possible. These transactions average 6 to 12 months and have produced gross returns ranging from 9%-33%. Over the past three years, they have successfully deployed over $16M and have executed over 66 transactions. http://ah-cap.com/
  • Nick Halaris
  • John Young
  • Daniel Alexander
  • Yusef Alexander
Nick Halaris
Nick Halaris is Co-Founder and Managing Director of AH Capital, where he’s responsible for managing all aspects of the firm’s investment process. Prior to forming AH Capital, he founded and managed Halaris Global, an international macro hedge fund where he successfully managed $15M in investor funds from 2006 to 2009. Before his work with Halaris Global, Nick served as Executive Vice President for Industrial Services of America, a $300M recycling company in Louisville. He was responsible for all administrative functions and served as General Counsel and Head of Mergers and Acquisitions. He also worked as a Strategy and Management Consultant advising senior executives at companies including GlaxoSmithKline, NiSource, Delphi, and Caterpillar on strategy development and implementation. Nick has a Bachelor of Arts with High Honors from the University of Michigan and a Juris Doctor from Stanford Law School. He is licensed to practice law in the state of California. Nick’s motivation is informed by his active philanthropy: in 2006, he developed a unique financial education, leadership, and citizenship curriculum for high school students and has been teaching in Los Angeles charter schools ever since. Nick started a nonprofit organization called the Los Angeles Institute of Financial Education, and as Founder and Executive Director, he’s responsible for directing the organization’s education and scholarship programs.
John Young

Before joining AH Capital as a partner, John Young had over 30 years of real estate experience. His early years were spent in sales and real estate brokerage focused on single family homes, and he later purchased and operated a residential mortgage company where he specialized in FHA and VA loans. The expertise John built in sales and finance proved to be a major asset to Young Homes, which John founded and operated for nearly 20 years, and which is one of the region’s largest homebuilders.

 
Young Homes shares a vision similar to AH Capital’s: to provide entry level homes that would make the dream of homeownership attainable for young families and other first time buyers. Young Homes eventually evolved to serve higher end markets, and John now brings his expertise to the AH Capital team.
 
John is a former Chair of the Member Services and Public Affairs Committees at the California Building
Industry Association, and he was the 2007 President of the Building Industry Association of Southern
California. He also served as BIA/SC’s Interim President for most of 2006. He’s served as President of
BIA/SC’s Baldy View Chapter and President of Home Aid Inland Empire.
 
John continues to be active in the National Association of Home Builders.
Daniel Alexander

Daniel Alexander, Co-Founder and Managing Director of AH Capital, manages the firm’s deal sourcing, acquisitions negotiations, and construction management. Daniel has 20 years of experience in various sectors of the real estate industry, and has had extensive involvement with hundreds of transactions. Daniel specializes in due diligence, financial evaluation, and development, and he’s sold over $150M in multifamily assets across markets in multiple states.

 
Daniel serves on the Advisory Board of Directors and acted as Director of Operations in Africa for MobileXL, a Los Angeles based mobile phone software company that has launched throughout Africa in partnership with Nokia and Orange Telecom. Daniel has also founded Sycamore Property Management, where he manages over 1000 units. Daniel earned a Bachelor’s Degree in Business Economics from UCLA and has done graduate work in Psychology at the University of Santa Monica.
Yusef Alexander

 

As Co-Founder and Managing Director, Yusef Alexander handles the firm’s deal sourcing, acquisition
negotiations, and property marketing and disposition. He focuses especially on home repositioning in the Southeast, where he acquires distressed assets to build outstanding homes for renters across the region.
 
Yusef excels in the negotiation side of the acquisition process, and he’s been involved in hundreds of
transactions over the course of his 16 years of experience in real estate. Yusef’s achievements are consistently driven toward helping people. In early 2012, Dog Ear Books published Yusef’s autobiographical real estate guide for aspiring investors called Deal to Deal, which chronicles his hands on experience with real estate negotiations and problem solving in Los Angeles. Yusef earned a Bachelor’s Degree in Business Economics from the University of California at Los Angeles. He writes for several periodicals and has regular speaking appointments with students on local campuses. Yusef also currently serves on the board of Symmetry Health Solutions, a Southern California based health facility that seeks to restrain America’s obesity epidemic.
Track Record

Business Plan
Property

At A Glance

Property Type: Residential, Duplex
Investment Type: Fix-and-Flip
Estimated Rate of Return: 10% annualized
Estimated Hold Period: 6-9 months
Region: Los Angeles, CA
   
Purchase Price: $217,000
Loan Value: $110,000
LTV (Loan-to-Value) Before Repair: 51%
Est. Value After Repair: $350,000
Est. LTV After Repair: 31%

Summary

Investors in this opportunity will pool their money to purchase a loan that was made to a real estate investor, AH Capital, for the purpose of a fix-and-flip. AH Capital will perform renovations on the property and look to sell as quickly as possible at a higher price than the purchase price. Renovations will be top to bottom including new dry wall, new kitchen, bathrooms and flooring. Upon completion, the property will look like 30+ other renovations AH Capital has executed (see pictures above).

AH Capital has agreed to pay interest payments of 10% with a final, balloon payment at the end of the loan term. The loan is secured by the property, in first position.

Risk Mitigation

  • AH Capital is a real estate investor with a history and a track record of success.
  • The loan is secured by a deed of trust, filed with the County Recorder’s Office
  • The loan is protected by title insurance
  • Investor returns are not contingent on the appreciation of the home value and investor returns do not increase based on the final sale price. Even if the property does not sell for the projected sale price, the borrower is still obligated to repay the loan.
  • In a worst case scenario, Realty Mogul will foreclose on the property. Upon acquisition of the property, Realty Mogul will facilitate the sale of the property and will distribute the proceeds to investors according to the percentage of the total investment opportunity they initially funded.

Distribution

Projected distributions allow for investors to earn a 10% annualized return.

The initial investment amount will be returned when AH Capital pays off the loan in full. Distributions will be provided as a written check mailed to the investor, or deposited directly into a bank account of their choosing.

Location

90037 is a densely populated, urban zip code in Los Angeles, California. The population is racially diverse and evenly divided between singles and married couples. The average house value here is lower than in the Los Angeles-Long Beach-Santa Ana metro area as a whole. The 90037 zip code has an average elevation of 166 feet above sea level.

Photos
Financials
Documents
Offering Documentation

Disclaimers/FAQs
Disclaimers

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(877) 781-7062

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