Spot On Equity Fund 1, LLC
Providing a Texas Focused Real Estate Investment Opportunity
▼ scroll down to learn more ▼
Spot On Equity Fund 1, LLC
506(c) Offering Platform
INTRODUCTION TO OUR COMPANY
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.
Over the years the Fund Manager has seen market fluctuations; because of this, the Fund Manager is always watching market trends to develop strategies allowing the Fund to mitigate this volatility and reduce negative effects on investors. This experience will better position the Fund to take advantage of market opportunities presented in times of uncertainty. This proactive approach sets the Fund apart from the competition. The Fund Manager has identified excellent market opportunities for the acquisition of vacant land which is prime for land development, manufactured housing and RV communities lots, multi-family, and apartment assets in certain Texas markets.
Spot On Equity Fund 1, LLC
506(c) Offering Platform
summary of operations
Geographic Texas Market Focus for the Fund
The Dallas, Austin, San-Antonio and Houston, and Tyler multi-family markets experienced an increase in apartment construction. The Fund Manager believes and projects that Texas markets will easily absorb the new units, and recent data appears to verify this projection.
The Fund Manager expects land development and rental growth to be stronger in lower and middle market properties than in top-tier market communities. Affordability is a more significant challenge in rural Texas than in most metro areas which is why the Fund will focus on low and mid-market tier properties (the Wall Mart Plan) to maximize available market and absorption. Based on market research to be performed by the Fund Manager, on each property the performance outlook for the Texas Land Development and multi-family market remains attractive with expected occupancy loss to be limited to around 15 basis points and rents estimated likely to climb 2.5 percent.
Texas has been a top multi-family market for the past several years, and the Texas continues to attract high-paying jobs and well-educated residents. Austin has led with tech-related employment rising over the period, according to Bloomberg Technology Texas also boasts the lowest unemployment rate in the country.
Demand for Texas residential homes, apartments, RV and Manufactured housing community-lots, is extremely strong since single-family housing in Texas is not affordable for young adult people with median incomes. High levels of occupancy provide pricing power to multi-family property owners and operators. Austin has experienced some of the strongest year over year rental rate growth over the past years.
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, reposition 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 reposition, re-branding, and rehabilitation process.
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. Assets in this category will typically be held in the Fund’s portfolio for three to five years prior to disposition.
Real estate assets will be listed and sold through traditional sales channels and follow typical real estate sales protocols. The Fund intends to use the in-house services of the Fund Manager to list and market the Fund’s properties for sale. The Fund may also engage in direct sales of assets without use of a real estate broker on certain transactions. All sale transactions will be reviewed, and contracts drafted by the Fund’s real estate attorney.
Spot On Equity Fund 1, LLC
506(c) Offering Platform
Company Management Team
The Company is currently managed by seasoned business and sector professionals dedicated to the success of the Company and efficient execution of its planned operations.
Robert S. Hardy
Mr. Hardy has been actively involved in Texas real estate since 1994, as a professional specializing in searching out and negotiating property on behalf of investors and as, the Fund Manager and Real Estate Broker of the Fund since July 17, 2019. As such, Mr. Hardy is responsible for the day-to-day operations of the Fun through Spot on Management, LLC. In addition to his executive responsibilities, Mr. Hardy provides exclusive brokerage and Management services to the Fund.
Spot On Equity Fund 1, LLC
506(c) Offering Platform
terms of the offering
$50,000,000
Minimum Offering: $250,000
Minimum Subscription: $10,000 (10 Units)
Spot On Equity Fund 1, LLC (the “Company” or the “Fund” or “SOEF1”), a Delaware Company, is offering a minimum of 2,500 and a maximum of 50,000 Class A Membership Units for $1,000 per unit.
Class A Member Preferred Return
Annual Four Percent (4%) Preferred Return based on Invested Unreturned Capital Contributions.
Distributions of Net Operating Cash Flow
Distributions of Net Operating Cash Flow, if any, shall be distributed monthly, within forty-five (45) days after the end of each calendar month. All distributions of Net Operating Cash Flow shall be distributed as follows:
- (i) first, to the Class A Members, as a group, pro rata until each Class A Member has received such Member’s respective Class A Preferred Return;
- (ii) then, eighty percent (80%) to the Class A Interests issued and outstanding, pro rata, and the balance to the Class B Members, pro rata.
Distributions of Net Capital Event Proceeds
Distributions of all or any portion of Net Capital Event Proceeds shall be made within forty-five (45) days after the end of a Fiscal Year. All distributions of Net Capital Event Proceeds shall be distributed as follows:
- (i) first, to the Class A Members, pro rata based upon each such Member’s respective unpaid Class A Preferred Return, until such Class A Members have been paid their respective Class A Preferred Return;
- (ii) then to the Members to the extent and in proportion with their Invested Capital Contributions until the aggregate amount distributed to such Members in accordance with Section 10.2 of the Operating Agreement is sufficient to provide for a return of such Members’ Capital Contributions by the Company; and
- (iii) eighty percent (80%) to the Class A Members, pro rata based and the balance to the Class B Member(s).
CONTACT US
Please complete the contact form and we will get back to you about any questions you have about our offering.
Spot On Equity Fund 1, LLC - 808 Meadow Creek - Tyler, TX 75703 — robert@spotonequityfund1.com — (903) 258-1232
Spot On Equity Fund 1, LLC
506(c) Offering Platform
so much more than what you see
The Spot On Equity Fund 1, LLC 506(c) Investor Portal provides the opportunity to learn about our investment opportunity. Once registered, you will have:
- Access to the Private Placement Memorandum, which outlines our company and gives greater detail about our offering;
- Access to our SEC filing;
- View real time offering metrics of how far along we are in the offering process;
- View a timeline of your progress in the investment process;
- View company contact information and send email directly to the administrator;
- Easily upgrade your account with the click of a button.
Once your account is upgraded you will have additional access including:
- The ability to complete the subscription documents via download or online;
- Upload of subscription and accredidation documents as applicable;
- Specific process information for investing and instructions on transfer of investment funds;
- Access to company shared quarterly / annual reports, Financial documents and Supporting Documents;
- Access to the Asset Portfolio as applicable;
- Access to News articles written by the company;
- Access to documents associated with your account.