Pool C Rehab Fund

226 Montoya Street Et Al  Taos County, NM 87571

Min. Invest
$5,000
Target Hold
24 mo
Annualized Returns
20.00%
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Project Summary

Pool C Rehab Fund takes advantage of the strength of multiple rehab flip properties in a single portfolio. Pool C will invest in up to quick-flip rehab properties: a 2,000sf house rehab in Albuquerque; a 3,000sf house on 1-ac with additional land parcels totaling 4 acres in Arroyo Seco, a small ski town just north of Taos; a 2,000sf duplex rehab also in Arroyo Seco; and a 3,500sf triplex also in Arroyo Seco. These properties are all value-added distressed properties. Our target buyers for each property are the plentiful local investors looking for rentals or winter/summer Airbnb properties.

We - Poston Investment Collective LLC, the umbrella company that manages all projects - specialize in finding distressed properties we can upgrade or rehab. This specialization insulates our projects against economic fluctuations, such as recessions or stock market crashes, and our project Framework locks in future appreciation upon resale by ensuring that we acquire, manage, and disposition all projects the same way every time, regardless of size, complexity, or asset class. Having a distressed property pool fund gives us the capability to move quickly when we find such a distressed property. See the video link below: What is the Poston Collective Framework?

The vision for forming the Collective five years ago was to be ready to acquire distressed and bargain properties in the next recession, the one that’s apparently here now! Our Collective mission is simple: (1) provide a satisfactory ROI for our investors and (2) fund the nonprofit Fifthwall Sanctuary Holistic Wellness and Healing Center. With these projects, we think we can safely provide 20% ROI per year (two-year max) for participating investors.

Under the tab “Property Summary” you’ll see a top-level description of our current and prospective projects requiring funding from the Pool C Rehab Fund. We follow the same Framework procedure on all projects. We will acquire up to four rehab assets in a separate LLC holding company with a single bank account for asset protection. The assets will be sold as soon as practical after each rehab is complete, and investors will be paid 20% ROI first at the end of the year or after the last asset is sold, whichever occurs first. After the investors are paid their ROI, 10% of net profit goes to our Charity Foundation, then the umbrella company gets paid last. The umbrella company’s share is split evenly between the Operations budget and management team as their only compensation.

[This Fund is for accredited and non-accredited (experienced) investors]

Investment Type Equity
Term 24 Months
Raise Amount $300,000
Targeted ROI 20%

Why Invest?

The sponsor is paying a 20% ROI per year for the duration of the holding period (two years max). Investors will be paid first, that is, at the end of each year or after the last asset is sold, whichever occurs first and before the company gets its share and before charity gets its 10%. Investors receive 20% ROI per year plus 20% of net profit.

The sponsor has three powerful benefits to secure profit for investors: (1) The Project Framework (see the video) that is used to acquire, manage, and disposition all rehab projects, safeguarding investor capital in the process; (2) almost 30 years of experience with over $30M in projects; (3) and a fully transparent track record on the website.

Since the Framework requires that all projects have their own holding companies (LLCs), Pool C Rehab Fund will be the lead investor or the only investor on every project. Recall, the two main goals of the Poston Investment Collective are (1) provide a satisfactory ROI for investors, and (2) fund the nonprofit Fifthwall Sanctuary Holistic Wellness and Healing Center.

Who is Jeffrey Poston?

Why Invest with Jeffrey Poston?

What is the Poston Collective Framework?

 

Pool C Rehab Fund

Total Capital & Debt Req’d

$1,756,000

Debt Raised to Date

$1,456,000 or 83%

Investor Capital Req’d

$300,000 or 17%

Package After Repair Value

$2.4M

Investor Returns

Investors receive 20% ROI per year plus 20% of net profit

 

Financial Sources

Private Investors $300,000
Lender $1,456,000

Financial Uses

Acquisition $966,000
Rehab $700,000
Holding Costs $90,000

Documentation


A Portfolio of Rehab Flips Before The Next Recession

We don’t know if or when the recession will arrive. [Update 5/1/2020: It is apparently here now!] However, the one thing we DO know is that we don’t want to have our money in the stock market when it crashes 20-40% or more whenever the recession does arrive [That already happened and we did not lose money]. Nor do we want to be caught trying to flip houses when the recession hits unless there's a value-added play.

We only look for distressed properties in micro-economic areas that also tend to have some kind of insulation against the broader market forces. For example, in Taos, New Mexico, the art and ski economies tend not to be influenced as much by recessionary forces because of the demographics of the local population. Skiers and art aficionados always need short-term lodging and the hotel room count is limited in Taos. Local investors are always looking for winter/summer Airbnb properties that are ready to rent, and these properties fetch a premium if they are close to the ski area on the north side of town or close to the art community near the Taos Plaza. Three of our rehabs are in these two areas, while the fourth is in Albuquerque. That last property is in a neighborhood of Albuquerque that is easy to sell and has an excellent resale value. Since we bought the house at 50% ARV we don’t have to push the resale value to the max. We can sell at any price that gives us a quick profit because we have plenty of margin.

When the Collective began in 2015, our objective was and still is to be prepared (cash-ready) to buy distressed bargains in the coming recession. In reality, for the savvy prepared investor, distressed properties can be found in every part of the market cycle. The Poston Investment Collective LLC has specialized in finding and acquiring profitable distressed real estate - quick-flip rehabs (houses) and cash flow rehabs (apartments) - because discounted property can insulate against market uncertainty, especially if you add value through renovation like we do. It requires two things: a disciplined formula and a Framework (see the video) to make sure every project is managed with the same processes regardless of size, complexity, or asset class.

Now is the time to think about moving from 1-4 unit flips into safe conservative cash flow properties by the end of 2020. While you’re thinking about that, this is an excellent time to get a few more flip rehab done since we’re not at the market peak yet. But we certainly want to exit flips when the market peaks, then get ready to buy distressed cash flow to ride out the recession.

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Investor Tutorial

CERTAIN INFORMATION REGARDING THIS OFFERING

THESE UNITS ARE BEING OFFERED WITHOUT REGISTRATION UNDER ANY FEDERAL OR STATE SECURITIES LAWS, BUT ARE BEING OFFERED UNDER AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND UNDER COMPARABLE EXEMPTIONS UNDER VARIOUS STATE SECURITIES LAWS. HOWEVER, THE SECURITIES AND EXCHANGE COMMISSION (“COMMISSION”) HAS NOT DETERMINED THAT THESE UNITS ARE EXEMPT FROM REGISTRATION. THESE UNITS HAVE NOT BEEN REVIEWED, APPROVED OR DISAPPROVED BY THE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY, ADEQUACY, COMPLETENESS OR MERITS OF THIS MEMORANDUM, AND ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THIS MEMORANDUM DOES NOT CONSTITUTE AN OFFER TO SELL TO, OR A SOLICITATION OF AN OFFER TO BUY FROM, NOR SHALL ANY OF THE UNITS BE OFFERED OR SOLD TO, ANY PERSON IN ANY JURISDICTION IN WHICH SUCH AN OFFER, SOLICITATION, PURCHASE, OR SALE IS UNLAWFUL OR UNAUTHORIZED UNDER THE SECURITIES LAWS OF SUCH JURISDICTION.

THE STATEMENTS MADE HEREIN ARE MADE AS OF THE DATE ON THE COVER OF THIS OFFERING MEMORANDUM. THIS OFFERING MEMORANDUM CONSTITUTES AN INVITATION TO THE PROSPECTIVE INVESTOR TO SUBMIT AN OFFER TO SUBSCRIBE. NO PERSON MAY PURCHASE THE UNITS OFFERED HEREBY EXCEPT PURSUANT TO AN EXECUTED SUBSCRIPTION AGREEMENT IN THE FORM PRESCRIBED BY THE FUND, AND THEN ONLY FROM A PERSON TO WHOM THE FUND OR ITS DESIGNATED AGENT HAS DELIVERED A COPY OF THIS OFFERING MEMORANDUM.

THESE UNITS ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED BY THE FUND. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THERE IS CURRENTLY NO PUBLIC MARKET FOR THESE UNITS.

IN MAKING A DECISION TO PURCHASE UNITS HEREUNDER, PROSPECTIVE INVESTORS MUST CONDUCT THEIR OWN INDEPENDENT INVESTIGATION OF THE FUND AND THE TERMS OF THIS OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED, AND ARE ENCOURAGED TO CONSULT WITH THEIR ADVISORS AS THEY WILL BE REQUIRED TO REPRESENT THAT THEY ARE ABLE TO BEAR THE ECONOMIC RISK OF THEIR INVESTMENT AND THAT THEY ARE FAMILLIAR WITH AND UNDERSTAND THE FUNDAMENTAL RISKS AND TERMS OF THIS OFFERING.

NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR MAKE ANY REPRESENTATION WITH RESPECT TO THE OFFERING OF THE UNITS WHICH IS NOT CONTAINED OR REFERENCED HEREIN, AND, IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATION MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE FUND. POTENTIAL INVESTORS MAY, IF THEY SO DESIRE, MAKE INQUIRIES OF THE FUND WITH RESPECT TO THE FUND’S BUSINESS OR ANY OTHER MATTERS SET FORTH HEREIN, AND MAY OBTAIN ANY ADDITIONAL INFORMATION WHICH SUCH PERSON DEEMS TO BE NECESSARY IN ORDER TO VERIFY THE ACCURACY OF THE INFORMATION CONTAINED IN THIS MEMORANDUM (TO THE EXTENT THAT THE FUND POSSESSES SUCH INFORMATION OR CAN ACQUIRE IT WITHOUT UNREASONABLE EFFORT OR EXPENSE).

August 07 2020

Confidential Offering Memorandum: Poston Investment Collective LLC

PROSPECTIVE INVESTORS ARE CAUTIONED NOT TO CONSTRUE ANY CONTENTS OF THIS OFFERING MEMORANDUM OR ANY PRIOR OR SUBSEQUENT COMMUNICATIONS, AS CONSTITUTING INVESTMENT, LEGAL OR TAX ADVICE; RATHER THEY SHOULD CONSULT THEIR OWN ADVISORS OR COUNSEL WITH THE CAPACITY TO ADVISE AND PROTECT THEIR INTEREST IN CONNECTION WITH ALL MATTERS CONCERNING THIS OFFERING MEMORANDUM.

THIS OFFERING MEMORANDUM DOES NOT KNOWINGLY CONTAIN ANY UNTRUE STATEMENT OF A MATERIAL FACT OR OMIT A MATERIAL FACT, AND ANY SUCH MISSTATEMENT OR OMISSION IS DONE WITHOUT THE KNOWLEDGE OF THE PREPARERS OF THIS DOCUMENT OR THE FUND. AS SUCH THE FUND BELIEVES THAT THIS OFFERING MEMORANDUM CONTAINS A FAIR SUMMARY OF THE MATERIAL TERMS OF ALL MATTERS, DOCUMENTS AND CIRCUMSTANCES MATERIAL TO THIS OFFERING. WHILE THE DATA AND STATEMENTS CONTAINED HEREIN ARE BASED UPON INFORMATION BELIEVED TO BE RELIABLE, NO WARRANTY CAN BE MADE AS TO THE ACCURACY OF SUCH INFORMATION OR THAT CIRCUMSTANCES HAVE NOT CHANGED SINCE THE DATE SUCH INFORMATION WAS SUPPLIED. THIS MEMORANDUM CONTAINS SUMMARIES OF CERTAIN PROVISIONS OF DOCUMENTS RELATING TO THE BUSINESS OF THE FUND AND THE UNITS OFFERED HEREBY, AS WELL AS SUMMARIES OF VARIOUS PROVISIONS OF RELEVANT STATUTES AND REGULATIONS. SUCH SUMMARIES DO NOT PURPORT TO BE COMPLETE AND ARE QUALIFIED IN THEIR ENTIRETY BY REFERENCE TO THE TEXTS OF THE ORIGINAL DOCUMENTS, STATUTES AND REGULATIONS.