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.
| Property Type: | Residential, Duplex |
| Investment Type: | Rehab |
| Estimated Rate of Return: | 8% annualized |
| Estimated Hold Period: | 12 months |
| Region: | Los Angeles, CA |
| Purchase Price: | $223,000 |
| Loan Value: | $175,000 |
| LTV (Loan-to-Value) Before Repair: | 78% |
| Est. Value After Repair: | $340,000 |
| Est. LTV After Repair: | 51% |
| Protective Equity After Repair: | $165,000 |
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.
AH Capital will look to rehab the property as quickly as possible and resell to an end buyer. Renovations will be top to bottom including a complete re-plumbing and rewiring, new kitchen, new bathrooms, new flooring, new windows, new stucco and new fixtures. The rehab budget is $75,000. Upon completion, the property will look like 60+ other renovations AH Capital has executed.
Investors 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 The Avalon Blvd / E 47th St neighborhood of Los Angeles, CA, a densely urban neighborhood.
Avalon Blvd / E 47th St real estate is primarily made up of small (studio to two bedroom) to medium sized (three or four bedroom) single-family homes and small apartment buildings. Most of the residential real estate is renter occupied. Many of the residences in the Avalon Blvd / E 47th St neighborhood are relatively historic, built no later than 1939, and in some cases, quite a bit earlier. A number of residences were also built between 1940 and 1969.
According to Zillow, Southeast Los Angeles home values will rise 11% next year, compared to a 7.9% increase for Los Angeles as a whole.
