Proactive Real Estate Fund LLC 506(c) Investor Portal

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 506(c) Offering Platform

INTRODUCTION TO OUR COMPANY

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. "

according to rentjungle.com

Proactive Real Estate Fund LLC 506(c) Offering Platform

SUMMARY OF OPERATIONS

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:

  • Multi-family is a strong real estate investment in any economic cycle;
  • Multi-family has limited supply and increasing demand;
  • U.S. homeownership rates are declining;
  • Financing is available at attractive rates for multi-family acquisitions;
  • Benefits of real estate ownership without having to manage single properties.

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.

  • Close on the Property or Properties utilizing the proceeds of this Offering together with a bridge loan followed by short term permanent financing;
  • Hire all new staff utilizing the services of an affiliate or others;
  • We specialize in using local skilled trades people;
  • Invest capital into the renovation of exterior and interiors of the Property or Properties’s apartments and solid Class B upgrades;
  • Fix all water leaks including mixed valves;
  • Upgrade to energy efficient boilers and fixtures;
  • Replace all exterior lighting with energy efficient solutions;
  • Use solar paneling when conducive to cost reduction
  • Renovate with upgraded style décor and enhanced workflow space;
  • Upgrade interiors to include modern fixtures and hardware, wall plates, floor upgrades, stainless or black appliance packages, oil and finish cabinets, two-inch blinds, two-tone accent paint, etc.;
  • Reposition in the marketplace and raise monthly rents; and
  • Sell or refinance the properties with 5 to 7 years depending on market conditions.

The Las Vegas vacancy rate for the fourth quarter of 2015 was 7.4%.

— according to apartmentlist.com —

Proactive Real Estate Fund LLC 506(c) Offering Platform

Company Management Team

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

Placeholder image

Van Williams, Ph.D, CPEP

Senior Manager of Acquisitions

Mr. Williams is a certified private equity professional with over 20 years of active involvement and experience in real estate investing, asset management, and rehabbing properties of all sizes. He specializes in properties that are in need of rehab has the requisite skills to turn aged and deteriorating properties, ranging from 8 up to 300 units, into high quality valuable housing. Mr. Williams holds several designations and memberships in various real estate associations including EBRHA (East Bay Rental Housing Association), Five Points Business Association of Greater Metropolitan Las Vegas, the National Apartment Association, and the Las Vegas Real Estate Investing Association. He is a registered property manager, certified in hotel management, business mediation, and finance. To date he has been involved in buying, selling, and rehabbing over $30 million in commercial and residential real estate.
“The collective economic impact of apartments and apartment residents is only set to grow.”
- according to the National Multifamily Housing Council -

Proactive Real Estate Fund LLC 506(c) Offering Platform

Terms of the offering

$5,900,000

Minimum Offering: $500,000

Minimum Subscription: $10,000 (1 Units)

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.

"MULTIFAMILY OCCUPANCY RATES WERE AT 94.6% THROUGH THE FIRST HALF OF 2015, AND RENEWAL RATES WERE TRENDING 5.4% HIGHER THAN 2014'S LEVELS."
- MULTIFAMILYEXECUTIVE.COM -

Proactive Real Estate Fund LLC 506(c) Offering Platform

So Much More than what you See

Placeholder image

before you invest

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.

after you invest

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.

Placeholder image

Ready to learn more out our investment opportunity? Request Access now!