Summary

Holdfolio is providing the opportunity to invest in the acquisition of a 80 unit multifamily property located in Indianapolis, Indiana. The property is currently 93% occupied and consists of 42 one bedroom, 37 two bedroom, and 1 three bedroom apartment units.

The primary objective of this investment is to capitalize on the recently completed unit improvements by increasing rents to market rate, implementing monthly flat-rate utility chargebacks, adding one 2 bedroom unit through remodeling the onsite office for a total of 81 units, and generating additional revenue through monthly storage & parking rentals. Further, Holdfolio will place into service a model unit & a storage unit, along with completing exterior and common area improvements, including enhancements to the swimming pool, clubhouse, and fitness center. Overall, the project presents a unique opportunity to materially improve NOI with minimal required capital expenditures, limiting downside risk and boosting immediate cash-on-cash returns.

Each $20,000 investment will result in a 1.8% interest in 1616 Southport LLC, the entity that owns the apartment directly. Investors will earn a preferred return of 8% per year in addition to collecting 75% of the net rental income from the property after the preferred return is paid to investors. Holdfolio will be making a co-investment of $75,000 alongside our investors. Investor's income will have an estimated 67% tax shield due to the depreciation write off. In other words, if you earn $10,000 then your taxable income would only be ~$3,000.

In the event the property is sold, investors will see the return of their principal investment & the profit will be split 75% to investors and 25% to Holdfolio. Please review all of the investment documents for more information on this unique and unparalleled opportunity to partner with Holdfolio.

Our anticipated closing date is 2/1/2017. Investors will begin collecting income immediately upon acquisition.

Key Highlights

  • Offering Size
    $1,100,000
  • Type
    Equity
  • Minimum Investment
    $20,000
  • Projected Cash on Cash Return
    10% - 13%
  • Projected Internal Rate of Return
    18% - 22%
  • Term
    Buy & Hold