***LAUNCHING Q4 2018 – Draft Terms Subject To Change Prior to Launch****
|HOLD PERIOD||Indefinite – Open Ended ‘Evergreen’ Fund|
|FUND MANAGER||The Managing Member of The Fund is Evergreen Capital, LLC (the “Manager”)|
|ACCOUNTING / TAX||NO K1s. Investors will be issued a 1099 statement if dividends are distributed in the prior tax year|
|ESTIMATED NET RETURNS (1)||8-10% Avg. Cash on Cash
15%-17% Total Return (IRR)
|INVESTOR STRUCTURE||CLASS A SHARES – $500K Minimum: 10% preferred return with 80% of excess cash flow and appreciation
CLASS B SHARES – $100K Minimum: 8% preferred return with 80% of excess cash flow and appreciation
|First distribution expected within 6 months of funding – paid quarterly
Distributions may be reinvested to compound returns on a tax deferred basis
|FEES||2.0% acquisition fee on the purchase price of direct investments
1.0% asset management fee
|INVESTOR SUITABILITY||Accredited Investors Only|
Note that this summary is not intended to be a complete description of the terms of the Operating Agreement or Subscription Agreement, and is qualified in its entirety by reference to the terms Private Placement Memorandum.
(1) No returns are guaranteed. Investing in real estate involves risk and investors should be able to bear the loss of their investment.
*** WILL BE MADE AVAILABLE WHEN FUND OPENS ***
While this is an, open-ended, ‘evergreen’ fund with an indefinite hold period, we’ve included a hypothetical sale in year 10 for illustrative purposes.
Semi-blind pool, open-ended, manufactured housing community fund.
Evergreen MHC Fund, LLC is a Wyoming LLC that has elected to be taxed as a corporation in order to simplify tax reporting for investors (NO K1s!) and enable investors to re-invest distributions (at their option) on a deferred basis to generate compounded returns.
Can I Invest In The Fund With A Retirement Account?
Yes, we can process investments made through a self-directed IRA account.
Is This Fund Risky?
Yes. Similar to investing in the stock market, there is no guarantee when you are investing in real estate. The real estate market has economic cycles and it is difficult to know how and when the economy will change. The Fund will offer investors preferred equity, but no returns are guaranteed.
How Does It Work?
Unlike most real estate firms, Evergreen operates as a private real estate holding company to recapitalize properties and reinvest cash flow in order to compound returns over the long term.
Who Can Invest In the Fund?
Evergreen will work with accredited investors, family offices, private wealth firms.
Accreditation status will be verified upon commitment to an offering. An accredited investor is a term used by the U.S. Securities and Exchange Commission (SEC). In order to qualify as accredited, an investor must accomplish at least one of the following:
Earn an individual income of more than $200,000 per year, or a joint spousal income of more than $300,000 per year, in each of the last two years and expect to reasonably maintain the same level of income;
Have a net worth exceeding $1 million, either individually or jointly with his or her spouse (excluding the primary residence);
Be a bank, insurance company, registered investment company, business development company, or small business investment company;
Be a general partner, executive officer, director or a related combination thereof for the issuer of a security being offered;
Be a business in which all the equity owners are accredited investors. Be an employee benefit plan, a trust, charitable organization, partnership, or company with total assets in excess of $5 million.
How Many Americans Live In Mobile Homes?
According to recent figures from Manufactured Housing Institute and the most recent Census survey’s; approximately 22 million Americans living mobile homes around the country, which is ~7% of existing households.
What are today's manufactured homes like?
Many of today’s manufactured homes feature innovative designs and custom home features like state of-the-art kitchens, luxury bathrooms and wood burning fireplaces. The options for today’s consumer are much more like traditional homes than they were 30 years ago.