Proactive Real Estate Fund LLC
Invest With the Multi-Family Real Estate Professionals of Proactive Real Estate Fund LLC
v scroll down to learn more v
PROACTIVE REAL ESTATE FUND LLC (“we”, “our”, “us”, or the “Company”) is both a California and Nevada limited liability company formed to acquire, renovate, improve, rehabilitate, and eventually re-sell a multifamily housing property (or properties) as more particularly described in Exhibit A of this Memorandum (the “Property” or “Properties”). Our objective is to maximize your return on investment via investing in solid Class B properties.We often hold properties for long term cash flow and appreciation. Think of Proactive Assets as an income and growth real estate fund.
"As of October 2016, average apartment rent within the city of of Las Vegas, NV is $950. "
Historically, investing in multi-family housing or apartments has been considered a stable, advantageous, and relatively safe real estate asset class to invest in. Apartment complexes, compared to the other types of real estate (i.e. office, retail, industrial, manufacturing, etc.) have proven to be resilient during economic downturns while delivering competitive risk-adjusted returns during economic rebounds. Investing in apartments is also considered by some investors to be preferable since it is a tangible asset, an asset that provides shelter and is physically managed unlike the “electronic ownership” of stocks, bonds, or mutual funds.
As favorable capital market conditions continue and given the upward trajectory in demand for apartments, we believe multi-family is poised for strong, continued growth. We believe the apartment industry is exciting and an excellent investment opportunity due to the following factors:
Our objective is to capitalize on the growing demand for multi-family housing. Accordingly, we intend to acquire, renovate, improve, rehabilitate, and eventually re-sell a multi-family housing property (or properties). Our objective is to maximize return on investment for our investors. We may also hold the improved Property for long term cash flow income.
The Las Vegas vacancy rate for the fourth quarter of 2015 was 7.4%.
Proactive Assets and Realty, LLC is an actively managed real estate fund. Our management team consists of seasoned business and sector professionals dedicated to the success of the Company and efficient execution of its planned operations
Senior Manager of Acquisitions
The Company is offering a minimum of five thousand (5,000) and a maximum of thirty-five thousand (35,000) Class A Preferred Membership Units at a price of One Thousand Dollars ($1,000.00) per Class A Preferred Membership Unit. Upon completion of the Offering between 5,000 and 35,000 Class A Preferred Membership Units will be issued. Holders of Class A Membership Units may also be referred to in this Memorandum, and certain Exhibits, as “Class A Members”.
Preferred Return: The Class A Preferred Membership Units sold through this Offering shall be provided a six percent (6%) non-compounding cumulative Preferred Return Distribution (the “Preferred Return”) paid to Class A Members semi-annually with bi-annual three percent (3%) Preferred Return distribution payments. The distribution of the Preferred Return will be subject to the financial performance of the Company and Fund Manager approval. The Preferred Return, and any accrued Preferred Return, shall be paid prior to the Fund Manager participating in the Incentive Fee due management (See “Management Compensation”).
Participation in Net Income and Capital Gains: The Class A Members shall also participate in a pro-rata percentage of seventy percent (70%) any additional net income approved for distribution to the Class A Members. The Fund Manager shall, by the terms of the Operating Agreement (See “Exhibit B - Operating Agreement”), declare and distribute at least ninety percent (90%) of realized net income from Fund operations to the Members of the LLC and according to the Net Income Distribution schedule as defined in the Fund’s Operating Agreement. Realized net income is defined in the Operating Agreement and shall consist of, but not be limited to, income derived from real estate leasing activities and capital gains from the sale of real estate assets.
The Fund Manager intends to retain five percent (5%) of net income initially as a reserve (the “Working Capital Reserve”) for unexpected expenses related to Fund operations. Any accrued Working Capital Reserve not utilized by the Fund will be treated as income and distributed to the Members of the LLC upon termination and winding down of the Fund’s operations.
The Proactive Real Estate Fund LLC 506(c) Investor Portal provides the capability for prospective accredited investors to become approved as a “prospect", review accreditation requirements, request delivery of the Private Placement Memorandum (“PPM”) with multiple delivery options (print, electronic, flip book), access management contact information, and view the Company’s SEC Form D filing.
For the Company’s management team, this allows for controlled access to the PPM with the prospect providing contact information and, after approval, being added to the investor prospect database which provides management an effective tool for investor prospect relations and management.
Once a prospective investor has decided they are interested in investing, we can then upgrade the prospect account to “Investor” level access. This access now provides the capability for investors to download subscription documents, specific process information for investing and instructions on transfer of investment funds, investor relations contact information, and the ability to see in real time statistics on the offering.
Investor level access also includes access to an investor relations module that provides Investors the capability to access updates from management, quarterly and annual reports, operations or project updates from the Company, press releases, and Company financials. The portal’s mobile “app” type interface will allow the Company’s management team to review and approve upgrading prospects to “Investor” status from mobile devices in real time.