Overview

The investment involves the rebuild and sale of a single family home in Cupertino, CA. The Sponsor will rebuild and sell the property within 10 months.

Investors are investing in a preferred equity position, ahead of the Sponsor’s equity and behind the 1st lien debt, and will have 100% of principal and projected return paid before the Sponsor receives any return of capital or return.

The Sponsor has agreed to pay investors the 5% annualized return at the earlier of sale or 10 months after closing.

Investors will receive a 9% preferred return (on an annualized basis), paid monthly, plus a 5% annualized preferred return upon sale or at 10 months.

The principals of the Project Sponsor have successfully built several homes in CA over the past decade.

The Sponsor is in contract to purchase the property in late November. Accordingly, the primary objective of this investment is to (1) purchase the property, (2) complete the rebuild work upon closing of the transaction, and (2) sell the property or cash investors out after 10 months.