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Canceled
Residential
49th St. Duplex Rehab
Los Angeles, CA
INVESTMENT STRATEGY
INVESTMENT TYPE
Debt
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Offered By AH Capital
%* TARGET IRR 8.0%-%
* TARGET EQUITY MULTIPLE
Estimated Hold Period 12 months
Estimated First Distribution
*Please carefully review the Disclaimers section below, including regarding Sponsor’s assumptions and target returns
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Overview
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
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.
Location

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.

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