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Residential Buildings

Why Invest in
Multi-Family ADU,
with Solidon?

  • What is ADU? (Pg 1)

  • Safe Investment (Pg 2)

  • Great Return on Investment (Pg 3)

  • Steady Rental Income (Pg 4)

  • Tax Advantage (Pg 5)

  • Ability to Leverage Funds (Pg 6)

  • Diversification of Assets (Pg 7)

  • Market Samples (Pg 8)

  • Investment Structure (Pg 9)

Investment Structure

Name of LLC:
Total # of Members:
Manager:

Antvestment 1, LLC
7 Members including Ki Kim
Ki Kim

 

Each investor is an accredited investor who has proven their income and net worth.  More importantly, they have been doing business with us for many years and we believe we have built enough trust in our business relationship.

CAPITAL STRUCTURE

Equity from investors:

Equity from Manager:

Total Capital Injection:

$1,440,000 (Each investor $240,000 x 6)

$60,000

$1,500,000

Each investor will receive the ownership of LLC based on their investment.

Investors

Amount

Ownership of LLC

A
B
C
D
E
F
G

Total 

$240,000
$240,000
$240,000
$240,000
$240,000
$240,000
$60,000

$1,500,000

16%
16%

16%

16%

16%

16%

4%

100%

EQUITY POSITION

In order for us to obtain non-recourse loan, it might be necessary to make more than 50% down payment of the purchase price.

Ex: Purchase Price $2,000,000 (Market Value)

Stage 1: Market Value $2,000,000 at acquisition

Senior Lender:

Down Payment:

Equity on the Property

Reserve (Operation / Const.):

Total Equity on the LLC:

$1,000,000

$1,000,000

$1,000,000

$500,000

$1,500,000

40%

40%

40%

20%

100%

Stage 2: After 2 ADUs and rent adjustments to market rate

Market Value:

Senior Lender:

Equity on the Property:

Reserve (Operation):

Equity on the LLC:

$3,000,000

$1,000,000

$2,000,000

$100,000

$2,100,000

Stage 3: Selling the Property

Sale Price:

Senior Lender:

Cost for Sale (5%)

Operating Account:

Net Proceeds before Taxes:

$3,000,000

- $1,000,000

- $150,000

+ $100,000

$1,950,000

Distribution

  • Any excess amount over $100,000 will be distributed quarterly.

  • Manager will have the first right to be hired as a general contractor (income to be discussed upon receipt of market estimation), management company (at 6%) and listing agent (commission rate at 4% ~ 5%) 

  • Additionally, the manager will get paid incentives when the property is sold.  

Our ultimate goal is to:

1. Keep the same investors.
2. Instead of selling the property, we like to use the leverage and keep expanding with the same investors.
3. Make every one happy and have cheers after 10 years!

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