The Fund’s objective is to
Effectively deploy when new proceeds of this Offering into assets which are designed to:
1: Provide Members with a Distribution of the Net Cash Flow. The Members will be subdivided into two classes, with Class A Members receiving eighty percent (80%) of the Net Cash Flow allocated to their class as a proportion of the amount of funds raised within the class to the total amount of funds raised from Members overall and Class B Members receiving twenty percent (20%) of the Net Cash Flow allocated to their class as a proportion of the amount of funds raised within the class to the total amount of funds raised from Members overall. Class A shareholders will see an initial preferred return of 7%.
Those Members who fill out their subscription documents on the funds initial offering (WHEN NO ASSETS ARE IDENTIFIED BY THE FUND) To an immediate (within 1 calendar day) 10% deposit of their total funds subscribed to. Banking institution is already established for the company by the manager APQFUNDMGR LLC. If there are fund targets identified wire is due for 100% of subscription within 7 CALENDAR days of subsription.
Any member who is male MUST select and work with a female mentee who is named on the member’s subscription documents.
for Instructions please WATCH THE VIDEO UNDER RESOURCES TO THE RIGHT–>>>
After 1 calendar year of mentee reporting quarterly in the investor portal, said mentor/ Class-A2 shareholder shall receive 7.25% preferred return paid out quarterly.
A capital call will occur when there is an asset (s) identified for purchase. Class A shareholders are REQUIRED to contribute the remaining 90% of their subscription amount within 7 calendar days of notice (cutoff date) or the fund will retain the initial 10% deposit as a fee for non-contribution. Any subscribed Members who invest after the cutoff date set by the Manager for Class A Membership will Incur a late fee equal to, not less then 10% of said limited partners’ subscribed amount.
The Fund will endeavor to produce a targeted overall IRR in the range of fifteen percent (15%),
cash on cash in the range (9%), and
exit equity multiple in the range of 1.75x -3.00x
minimum of net of fees and expenses and Ultimately provide Members with a targeted full return of Capital Contributions.
No assurance can be given when these objectives will be attained or that the Fund’s capital will not decrease, or that an Investor’s investment will not be lost entirely. The Fund’s strategy will be to offer and produce risk-adjusted returns by acquiring, repositioning, refinancing managing, and disposing of undervalued and/or value-add multi-family properties.
The Fund will focus on distressed properties, including but not limited to Bank owned, operationally deficient, foreclosures, off-market, listed from market, price reduced and COVID 19 affected vacant properties.
The target markets and properties should generally possess the criteria that allows for underwriting and returns that meet the Fund’s objectives, Yes, however, the Fund may invest in other target markets and cash flowing and potentially cash flowing assets (including commercial, senior living, mobile home parks, self-storage, mixed-use, office, retail, notes and/or single family) in which Manager believes that the assets can be effectively underwritten.
The Fund may also make loans on similar asset classes to affiliates and non-affiliates, with the following being the general outline of properties to be acquired and held by theFund:
Type of Investment Primarily Multi-Family Property Class All Classes No. of Units 25-1,200 Price $500k to $15m Target Markets United States Target Cash on Cash 9%-13% Leverage 50%-80% Targeted IRR 15% Existing Occupancy 0%-100% Investment Term 3-7 years.
The Manager believes that Fund performance will be enhanced by focusing on cash flow. When analyzing potential acquisitions, the Manager will look for investments where its particular skill set may create value -acquisition and throughout the holding period. The management team will continue to do their best to focus on efforts to consistently apply the Fund’s strategy.
To this end, the Manager may: 1) Co-invest in Class A, Class B, and Class C multi-family apartments communities in quality locations adding value employing third-party hands-on management and/or appreciation potential.
Use of proceeds-
The Fund will invest, directly or indirectly, in the investments. The Fund will also use the offering proceeds to pay or reimburse the Manager and its affiliates for legal, accounting, due diligence, marketing and other expenses relating to the formation or operation of the Fund, to pay fees to the Manager as described herein, to provide working capital for the Fund and to establish reasonable reserves to meet the Fund’s obligations.
Fund expenses-
The Fund shall be responsible for all out-of-pocket expenses incurred by the Manager and its affiliates in connection with the Fund’s business, including:
(a) all expenses of organizing the Fund and offering the Interests in the Fund, including legal, accounting, tax advice, consulting fees, and all such other reasonable and necessary fees; and
(b) costs and expenses incurred in connection with the Manager’s performance of its duties including
(i) ALL indemnification costs,
(ii) fees and expenses of professional service providers and third party transaction, pursuit and investigation costs (regardless of whether the transaction has been completed);
(iii) legal, audit, tax preparation, investment management, administration and payment information systems and investor platforms and accounting fees and costs;
(iv) marketing costs in connection with offering and selling the Membership Interests to Members, including without limitation any and all registration and filing fees, sales commissions, blue sky fees, and
(v) administration, record keeping, investor relations and investor mailing and communication costs.
Notwithstanding anything to the contrary contained herein, the Fund will not be responsible for the compensation of officers and employees, office overhead or other expenses of the Manager.
Sale of assets to the fund-
The Manager, in its discretion, may consider purchasing assets of the Manager’s Affiliates and other funds established by the Manager at fair market value ( established by an independent third party) if such investments satisfy the investment criteria of the Fund.
Insurance-
At the Fund’s expense, the Manager may cause the Fund to purchase insurance coverage for acts for which indemnification would be available, including coverage for the Indemnified Parties.
Use of professional service providers-
The Manager may, in its sole discretion, engage any affiliated professionals and service providers or outside professionals and service providers on behalf of and at the expense of the Fund on arm’s-length terms. When affiliates are engaged, the transaction shall be on arm’s length terms. No professional or other service provider will be disqualified from providing services to the Fund or its affiliates because of the provision of services by such professional or service provider to the Manager or its affiliates, related to the Fund’s business or other activities.
