Spot On Equity Fund I, LLC
Test the Waters

Target: $250,000

Investors: 0

Raised: 0%

Days To Go: 3

Start date: March 10, 2021
End date: April 26, 2021


Minimum Investment:  

$10,000

Company:  

Spot On Equity Fund I, LLC

Minimum Raise:  

$250,000

Equity:  

Up To 80%

Maximum Raise:  

$5,000,000

Estimated Return:  

4% Preferred Return

Minimum Share/Units/%  

10 Units

Securities Type:  

Equity

Investment Type:  

Real Estate

Regulation:  

Test The Waters Project


To develop, acquire, and manage real estate property such as, office buildings, retail centers, multi-family, industrial, apartments, land, hotels, and franchised restaurants, as well as any existing real estate secured loan assets.


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Offering at a Glance:

The Company is offering Class A Membership Units at a price of $1,000 per Unit.  Minimum unit purchase to be around 10 units.


The Fund Manager intends to make equity investments in Texas real estate secured assets. The Fund Manager intends to utilize the funds to acquire and develop RV and manufactured housing and other real estate property such as, office buildings, retail centers, multi-family, apartments, land, small hotels, and franchised restaurants, as well as any existing real estate secured loan assets. 

Overview

PROPERTY 1

Location: North of I-20 in Smith County (Currently Rose Bowl Raceway)

Property: The property is a 21-acre tract. (Plus 25 Additional Acreage)

Services: The property can be serviced by on site infrastructure

Current Zoning: Rural Property outside Zoning Districts Counts: Easy Access from I-20 Purchase Price: $475,000.00

Planned Usage: develop a Manufactured Housing and RV Community broken into Two Phases


TO VIEW PROPERTY PLEASE VIEW UNDER PHOTOS



Phase 1:

Develop the property for Manufactured Housing approximately 120 Lots available. The property will be sub-divide into Manufactured housing and RV lots to be individually leased. In addition to the housing lots, A designated common space for community facilities such as a small office building for a laundry facility. The common green space, small park area for children, swimming pool and snack bar that is to be shared with the Phase 2 RV park.


Phase 2:

This phase consists of the construction of the RV oriented park to accommodate Long and short term residents workers as well RV travelers. This area will be built in the area of the existing track parking area. (See Property Layout) There will be approximately 50 RV Slots Available. Each slot will be leased or rented on a yearly or monthly basis. All the standard elements for an RV park will be made available such as a check in building with a small shop, offices, laundry facilities and public bathing facilities. Also, a club/ game room will be included an outdoor area as well with playground, swimming pool and snack bar. The entrance to this area will be designate as its own defined entry as to not confuse it with the entry to the Manufactured Housing Area.


Development Plan

Once the property is purchased development of the property will begin. Our team of independent design professionals will engineer the site for grading, roads, utilities and common ground facilities. On this piece of property, grading will be key to establishing the RV area and the Manufactured Housing areas. The property will require that an onsite sewer treatment to be developed. All the other utilities, water, electric, phone, etc. is available on the property. The development cost including professional fees is estimated at $1,750,000.00. The all construction will be managed by the fund manager and Architects for maximum value and job quality.


Property Management

Property management will be in control of the property owners association and responsible for property maintenance. This entity will be operated by Spot on Management LLC, a licensed entity in the State of Texas with corporate headquarters in Tyler, Texas. Management Fee is estimated at 10% of gross revenue.


Return on Investment

Return on investment is directly linked to the performance of the development. The anticipated lot lease rate for the manufactured housing 12-month lease lots will be $600.00 per month (Approximately $72,000.00 gross income per month at max capacity). The anticipated monthly rate for the RV lots will be 450.00 per month and a daily rate of $45.00 per day. (Approximately $22,500.00 gross income per month at max capacity). We anticipate, based on our current market activity, to reach max capacity in 8 to 24 months after.



PROPERTY 2

Location: East of Tyler, Texas on Highway 31 approximately 8 miles from Tyler.

Property: This property is rectangular shaped and is approximately 100 acres. It is bordered on all three sides by Agriculture highly trees property. Access to the property is directly from Highway 31.

Services: The property will need its own sewer system set up on the property.

Current Zoning: Rural Property outside Zoning Districts

Purchase Price: $750,000.00

Planned Usage: This property will be developed in three phases 


TO VIEW PROPERTY PLEASE VIEW UNDER PHOTOS


Phase 1:

Develop an area on the property for Manufactured Housing. Approximately 325 lots will be available. The property will be sub-divide into lots to be individually leased. In addition to the housing lots there will be designated common space for community facilities such as a small shop for daily wares and a laundry facility. The common space should also green space and a small park area for children, swimming pool and snack bar.


Phase 2:

This phase would consist of the construction of a RV oriented park to accommodate short long-term residents as well RV travelers, to be built in the area of the existing parking area. (See Property Layout) There will be approximately 80 RV Slots Available. Each unit slot will be leased or rented on a yearly or monthly basis. All standard elements for the RV park will be made available such as a central office check in building with laundry facilities, secured public bathing facilities. Also, a club/game room will be included an outdoor area as well with playground, swimming pool and snack bar. The entrance to this area will be designated as its own defined entry as to not confuse it with the entry to the Manufactured Housing Area.


Phase 3:

This phase would consist of the design and construction of a Commercial Development area directly on the 31 East Frontage. Proposed possible usage for this would be a Gas Station / Convenience Store with Alcohol Sales.


Development Plan

Once the property is purchased development will begin. A team of design professionals will engineer the site for grading, roads, utilities and common facilities. On this piece of property, grading will be key to establishing the RV area and the Manufactured Housing areas. The property will require that an onsite sewer treatment be developed. All the other utilities, water, electric, phone, etc. is available. The development cost including professional fees is estimated at $1,750,000.00. The construction will be managed by both Spot On Property Development and H3A Architects for maximum value and quality of delivery.


Property Management

Property management will be in control of the property owner’s association and responsible for property maintenance. This entity will be operated by Spot on Management LLC with corporate headquarters in Tyler, Texas. Management Fee is estimated at 10% of gross revenue.


Return on Investment

Return on investment is directly linked to the performance of the development. The anticipated lot lease rate for the manufactured housing lots will be $600.00 per month (Approximately $195,000.00 gross income per month at max capacity). The anticipated monthly rate for the RV lots will be 450.00 per month and or a daily rate of $45.00 per day. (Approximately estimated $45,000.00 gross income per month at max capacity). We anticipate, based on our current market activity, to reach max capacity in 8 to 24 months after opening.


Spot On Equity Fund I, LLC (“SOEF1”, or the “Company”, or the “Fund”) was formed as a limited liability company in the state of Delaware for the purpose of acquiring and developing land and property management for multi-family real estate assets in Texas. The Company will seek to acquire, develop, and manage quality real estate assets with the intention of providing participating investors with a real estate focused investment opportunity that combines income, principal investment growth, and capital preservation.


The Fund is managed by Spot on Management, LLC (the “Fund Manager”), a Texas limited liability company formed in 2019. The Fund Manager specializes in real estate land development, asset acquisition, and management. Spot on Management, LLC is managed by Robert S. Hardy, an experienced real estate broker and finance professionals with years of experience in the Texas real estate market.


The Fund’s primary focus is creating and maintaining investors funds through prudent and disciplined alternative real estate investment strategies. The Fund Manager’s abilities to provide an advantage over investing individually by allowing the Fund Manager to quickly and efficiently address any real estate acquisition and or management issues.


The Fund’s ability to invest with aggregated capital will provide greatly enhanced negotiation leverage as the Fund can close acquisitions quickly without financing delays encountered with other purchasers that require institutional financing to close on a property. Since the Fund’s primary manager is directly involved in the placement of investment funds into select real estate assets, it allows management to manage the investments more actively than large institutional investors.


The Fund intends to operate as a hybrid real estate investment fund with a certain portion of allocated capital being utilized for shorter term opportunities and the balance for acquisitions that will mature over a five-year period. The Fund’s execution strategy for those opportunities is detailed below:


Short Term Investments (under 18 months): The Fund Manager anticipates that thirty percent (30%) of capital from the Offering will be allocated towards opportunities that involve acquisition, re-position and/or rehabilitation, and asset disposition in under 18 months. Many of these opportunities will be sourced from distressed sellers or “special circumstance” type acquisitions (package Bank REO, seller joint venture, etc.) wherein a significant amount of equity and value is present from the time of acquisition and additional equity and profit is realized through the re-position, rebranding, and rehabilitation process.


Properties in this category are anticipated to require more re-positioning and rehabilitation work and would be reflected in the distressed level acquisition costs. The construction and rehabilitation experience of the Fund Manager is a critical part of this process as that expertise will allow the Fund to fully assess expected costs, timeframes, and other important metrics to maximize net profit and minimize risks related to unexpected rehabilitation costs and re-position expenses.


Long Term Investments (3 to 5 years): The Fund Manager intends to allocate approximately seventy percent (70%) of invested capital towards acquisitions that will require a longer duration of time to mature prior to disposition. The Fund Manager expects that these assets will still be sourced at attractive acquisition rates, however the properties may not require as much rehabilitation or may be located in areas that demand a higher acquisition premium and thus the Fund Manager expects less initial equity immediately post acquisition. The Fund Manager still intends to deploy elements of rehabilitation and re-positioning to maximize value and allow for maximum rental rates per square foot. Assets in this category will typically be held in the Fund’s portfolio for three to five years prior to disposition. 


Acquisition Criteria

• Property Type: Multi-family and Apartment Complexes

• Mostly Land and class “B” and “C” properties with select “D” class property acquisitions possible

• Average Property Size: 10-175 units

• Estimated Average Age of Target Properties: 5-30 years old

• Deferred maintenance and rehabilitation expected on certain properties

• Dallas, Houston, Austin, San Antonio, Texas, Tyler and east Texas are primary target markets

• Ideal locations situated near public transportation, shopping, and employment centers

• At least 20,000 population or greater within a 10-mile radius

• Individual unit matrices with a large percentage of 2+ bedroom floor plans and individual electric meters

• Acquisition price less than 80% of Fair Market Value

• Upside rent and valuation potential from asset enhancements and re-positioning