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Spot On Equity Fund I, LLC (“SOEF1”, or the “Company”, or the “Fund”) was formed as a limited liability company in the state of Delaware for the purpose of acquiring and developing land and property management for multi-family real estate assets in Texas. The Company will seek to acquire, develop, and manage quality real estate assets with the intention of providing participating investors with a real estate focused investment opportunity that combines income, principal investment growth, and capital preservation. The Fund is managed by Spot on Management, LLC (the “Fund Manager”), a Texas limited liability company formed in 2019. The Fund Manager specializes in real estate land development, asset acquisition, and management. Spot on Management, LLC is managed by Robert S. Hardy, an experienced real estate broker and finance professionals with years of experience in the Texas real estate market.
The Fund’s primary focus is creating and maintaining investors funds through prudent and disciplined alternative real estate investment strategies. The Fund Manager’s abilities to provide an advantage over investing individually by allowing the Fund Manager to quickly and efficiently address any real estate acquisition and or management issues. The Fund’s ability to invest with aggregated capital will provide greatly enhanced negotiation leverage as the Fund can close acquisitions quickly without financing delays encountered with other purchasers that require institutional financing to close on a property. Since the Fund’s primary manager is directly involved in the placement of investment funds into select real estate assets, it allows management to manage the investments more actively than large institutional investors.
Over the years the Fund Manager has seen market fluctuations; because of this, the Fund Manager is always watching market trends to develop strategies allowing the Fund to mitigate this volatility and reduce negative effects on investors. This experience will better position the Fund to take advantage of market opportunities presented in times of uncertainty. This proactive approach sets the Fund apart from the competition. The Fund Manager has identified excellent market opportunities for the acquisition of vacant land which is prime for land development, manufactured housing and RV communities lots, multi-family, and apartment assets in certain Texas markets.
The Dallas, Austin, San-Antonio and Houston, and Tyler multi-family markets experienced an increase in apartment construction. The Fund Manager believes and projects that Texas markets will easily absorb the new units, and recent data appears to verify this projection.
The Fund Manager expects land development and rental growth to be stronger in lower and middle market properties than in top-tier market communities. Affordability is a more significant challenge in rural Texas than in most metro areas which is why the Fund will focus on low and mid-market tier properties (the Wall Mart Plan) to maximize available market and absorption. Based on market research to be performed by the Fund Manager, on each property the performance outlook for the Texas Land Development and multi-family market remains attractive with expected occupancy loss to be limited to around 15 basis points and rents estimated likely to climb 2.5 percent.
Texas has been a top multi-family market for the past several years, and the Texas continues to attract high-paying jobs and well-educated residents. Austin has led with tech-related employment rising over the period, according to Bloomberg Technology Texas also boasts the lowest unemployment rate in the country.
Demand for Texas residential homes, apartments, RV and Manufactured housing community-lots, is extremely strong since single-family housing in Texas is not affordable for young adult people with median incomes. High levels of occupancy provide pricing power to multi-family property owners and operators. Austin has experienced some of the strongest year over year rental rate growth over the past years.
The Fund Manager anticipates that thirty percent (30%) of capital from the Offering will be allocated towards opportunities that involve acquisition, reposition and/or rehabilitation, and asset disposition in under 18 months. Many of these opportunities will be sourced from distressed sellers or “special circumstance” type acquisitions (package Bank REO, seller joint venture, etc.) wherein a significant amount of equity and value is present from the time of acquisition and additional equity and profit is realized through the reposition, re-branding, and rehabilitation process.
The Fund Manager intends to allocate approximately seventy percent (70%) of invested capital towards acquisitions that will require a longer duration of time to mature prior to disposition. The Fund Manager expects that these assets will still be sourced at attractive acquisition rates, however the properties may not require as much rehabilitation or may be located in areas that demand a higher acquisition premium and thus the Fund Manager expects less initial equity immediately post-acquisition. Assets in this category will typically be held in the Fund’s portfolio for three to five years prior to disposition.
Real estate assets will be listed and sold through traditional sales channels and follow typical real estate sales protocols. The Fund intends to use the in-house services of the Fund Manager to list and market the Fund’s properties for sale. The Fund may also engage in direct sales of assets without use of a real estate broker on certain transactions. All sale transactions will be reviewed, and contracts drafted by the Fund’s real estate attorney.
The Company is currently managed by seasoned business and sector professionals dedicated to the success of the Company and efficient execution of its planned operations.
Mr. Hardy has been actively involved in Texas real estate since 1994, as a professional specializing in searching out and negotiating property on behalf of investors and as, the Fund Manager and Real Estate Broker of the Fund since July 17, 2019. As such, Mr. Hardy is responsible for the day-to-day operations of the Fun through Spot on Management, LLC. In addition to his executive responsibilities, Mr. Hardy provides exclusive brokerage and Management services to the Fund.
Minimum Offering: $250,000
Minimum Subscription: $10,000 (10 Units)
Spot On Equity Fund 1, LLC (the “Company” or the “Fund” or “SOEF1”), a Delaware Company, is offering a minimum of 2,500 and a maximum of 50,000 Class A Membership Units for $1,000 per unit.
Annual Four Percent (4%) Preferred Return based on Invested Unreturned Capital Contributions.
Distributions of Net Operating Cash Flow, if any, shall be distributed monthly, within forty-five (45) days after the end of each calendar month. All distributions of Net Operating Cash Flow shall be distributed as follows:
Distributions of all or any portion of Net Capital Event Proceeds shall be made within forty-five (45) days after the end of a Fiscal Year. All distributions of Net Capital Event Proceeds shall be distributed as follows:
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Spot On Equity Fund 1, LLC - 808 Meadow Creek - Tyler, TX 75703 — firstname.lastname@example.org — (903) 258-1232
The Spot On Equity Fund 1, LLC 506(c) Investor Portal provides the opportunity to learn about our investment opportunity. Once registered, you will have:
Once your account is upgraded you will have additional access including: