Investments

Investments

Financial Advantages

Investments

Leverage: Excell Fund LLC has established a good working relationship with a number of lending institutions that are willing to extend construction and permanent financing. Our in-house staff works to place loans with the best available sources at the best available rates and terms.

Liquidity: The nature of the project as determined by the feasibility study, which in turn dictates the liquidity of the venture. Projects are being developed as investment properties, and as such have less liquidity and are subject to market conditions present at the time of completion.

Yield: Actual yields are dependent upon the final structure of the project and investment agreement. Excell Fund LLC strives to maintain a profitable minimum pre-tax return on all projects that are undertaken. Typically, these are market rate preferred annual returns, with higher projected returns over the life of the investment.
Risk: Investment in real estate involves a high degree of risk and isn’t suitable for all investors. By investing in an investment with Excell Fund LLC, you are representing that you:

  • Understand the risks inherent in real estate investment
  • Are financially able to withstand investment losses
  • Have determined that real estate investment is suitable for you, considering your financial situation and investment objectives.
Investments

Development Strategy

Equity partners typically contribute 20% or more of total development costs to the project. A portion of these funds may be used to purchase the land and existing buildings, with the remainder being used towards overall development costs associated with the project.

The developer will provide the necessary expertise and support to make the project a success. The value that the developer will add to the project will include, but not be limited the following:

The developer will promote the interests of the client by:

  1. Analyzing the site and creating a concept for development of the land
  2. Promoting the project
  3. Arranging for lease commitments
  4. Designing and engineering of a site plan for the project
  5. Preparing for planning, zoning, financing, and marketing
    Initiating zoning / annexation / subdivision talks with city / county.

The developer will oversee / direct the following activities during development:

  1. Formation of LLC
  2. Purchasing, marketing, leasing, sale, and closings on the project
  3. Obtaining construction and permanent financing
  4. Bidding and letting of construction contracts
  5. Money and materials management
  6. Distribution of funds for expenses
  7. Distribution of proceeds

    In compensation for the contributions that each member of the LLC brings to the organization the allocation of funds will be made in stages. The first allocation will be yearly net proceeds. The second allocation will occur after the refinance of the project and the repayment of all debts associated with the project. The third allocation will occur after the sale of the project and the repayment of all debts associated with the project.
    Yearly net proceeds distribution will give the equity partner a market rate priority distribution of annual net profits based on their total capital contribution. If annual net proceeds exceed the market rate priority distribution, the equity partner and developer will share in the remainder of the net proceeds.
    Upon the sale or refinance of the development and before the dissolution of the LLC, further allocations of funds will occur. This distribution will be made after the payment of all debts associated with the project to include but not be limited to permanent financing, ,operating costs, real estate commissions and closing costs. After all debts have been repaid, the net sale proceeds distribution will give the equity partner a priority distribution of the equity partners preferred returns.  Repayment of Investors’ Capital Accounts balance will be the next priority. If proceeds exceed these capital distributions, the equity partner and developer will share in the remainder of the net sales or refinance proceeds based on their percentage ownership. 

Accreditation Verification Process

Step One

To invest in any of our Regulation D direct participation programs, you must meet at least one of the SEC accreditation requirements detailed in the following Qualified Investor Requirements & Attestation section. You will then be designated as an “accredited investor” as defined under Rule 506 of Regulation D of the Securities Act of 1933.

1) The investor has an individual “net worth” or “joint net worth” with spouse, in excess of $1,000,000 at the time of the purchase of the investment, exclusive of the value of the primary residence (except to the extent that the amount of the mortgage on the primary residence exceeds the value of the residence).
2) The investor has an annual income in excess of $200,000 or a joint annual income with spouse in excess of $300,000 in the past two calendar years and reasonably expects to have the same income level this year.
3) The investor is a corporation, partnership, trust, LLC, or other entity with total assets in excess of $5,000,000 (and not formed for the specific purpose of acquiring the securities being offered, and whose purchase is directed by a sophisticated person).
4) The investor is an entity in which all of the equity owners individually are accredited investors as described in either 1 or 2 above.
5) The investor is a non-profit organization with assets in excess of $5,000,000.
6) The investor is a private business development company as defined in Section 202(a) (22) of the Investment Advisers Act of 1940.

Step Two

As a new investor with Excell Fund, before your investment will be accepted, you will be required to provide one of the following:

Third party verification – an attestation letter signed by one of the following verifying that you meet one or more of the required accreditation criteria:

CPA/Attorney
Bank or other financial institution
Accountant
Financial Adviser
Documentary evidence of Self-Verification – please provide one of the following items:
Bank statement, brokerage statement, evidence of certificates of deposit, tax assessments
Copies of any IRS forms that report income: W-2, Form 1099, Schedule K-1, Pages 1-2 of filed Form 1040 for the two most recent years with the expectation of same income level for current year.
Signed balance sheet or income statement
Consumer Credit Report from at least one of the nationwide consumer reporting agencies