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
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.
At A Glance
| Property Type: | Residential, Four-Plex |
| Investment Type: | Rehab |
| Estimated Rate of Return: | 8% annualized |
| Estimated Hold Period: | 9 to 12 months |
| Region: | Los Angeles, CA |
| Purchase Price: | $290,000 |
| Loan Value: | $230,000 |
| LTV (Loan-to-Value) Before Repair: | 79% |
| Est. Value After Repair: | $400,000 |
| Est. LTV After Repair: | 57% |
| Protective Equity: | $170,000 |
Summary
Investors in this opportunity will pool their money to make a loan to a real estate investor, AH Capital, for the purpose of a rehab.
The property currently has 2 units vacant and 2 units occupied. AH Capital will work with the existing tenants while starting rehab on the vacant units.
AH Capital will look to sell as quickly as possible after rehabs 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 60+ other renovations AH Capital has executed.
Investor will receive interest payments of 8%, with a final, balloon payment at the end of the loan term. The loan is secured by the property, in first position.
Risk Mitigation
- There is a personal guarantee on the loan.
- 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.
- 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.
The property is located in the S Central Ave/E 48th Street neighborhood in Southeast Los Angeles, CA, a densely urban neighborhood.
Across the street from the property is a day care center. Less than 3/10 of a mile from the property is Vernon Library. There are a number of food establishments within half a mile of the property. The nearest schools are Celerity Dyad Charter School and Carver Middle School.
According to Zillow, this home is priced 32.2% less per square foot than median homes in the area. Zillow predicts Southeast Los Angeles home values will increase 7.6% next year.
