Download - 1 ag executive summary 2014-15
Investment Funds I Joint Ventures I Private Money I Alternative Investments
888-38-ARKAD www.arkadgroup.co/investors
Real Estate Funds I Jo int Ventures I Pr ivate Money
ARKAD CAPITAL MANAGEMENT
ARKAD CAPITAL MANAGEMENT, LLC
an arkad | GROUP Company
2
Investors
Page 5
Active Investors
Page 6
Passive Investors
Page 8
Marketplace
Page 3
Strategy
Page 3
Team
Page 4
The information provided through this package does not constitute or form part of any offer or invitation to sell or any solicitation of any offer to purchase any securities in the United States or any other jurisdiction. Any securities may only be offered or sold, directly or indirectly, in the state or states in which they have been registered or may be offered under an appropriate
exemption. Before you make an investment decision, it is important to review your financial situation, investment objectives, risk tolerance, time horizon, diversification and liquidity needs with your Financial Advisor. Arkad Group and its entities are not financial advisors.
Security
Page 10
Who do Work with?
Page 11
Appendix
Bringing house flipping out of the shadows
A profitable way of diversifying your portfolio and balancing risk.
ARKAD CAPITAL MANAGEMENT
ARKAD CAPITAL MANAGEMENT, LLC
Opportunity is here and now. For investors of all sizes
an arkad | GROUP Company
Diversifying has never been more profitable Real Estate Investing brings security, returns & transparency.
1
The Marketplace
The sluggish US economic recovery, tight credit regulation
& depressed real estate markets; have created an
extraordinary investment environment of which Arkad is
taking full advantage. Both large banks & small lenders are
in possession of billions of dollars in distressed and non-
performing real estate properties. These assets, are of all
sizes and conditions. They are being sold off; in bulk and/or
in “one-off” form, to established and registered investors
such as Arkad Group Real Estate Corp; “Arkad”.
These large inventories of properties, both residential and
commercial, are usually in distress and can be purchased
for a fraction of their actual cost. Subsequently, they can
then be brought back to performance through a series of
improvement & repositioning techniques; then they are
later resold or leased for a profit.
On the other side, there is demand and low rates. The fact
that homes around the US have lowered in value opens a
large window for new qualified buyers. This unique
combination of factors creates the perfect storm for real
estate investors and the lending partners behind them to
capitalize from. A true transfer of wealth through real estate
holdings and the financing securing it. Happening right
now.
2
Funds from the private sector, aka “private money” gives real
estate investors such as Arkad, the financial flexibility needed
in today’s competitive distressed real estate acquisitions
business. They open an opportunity for private investors of all
sizes to diversify their portfolio into significantly marked down
asset-backed notes with high paying yields
Our Strategy
Arkad is a dynamic, privately owned, vertically integrated real
estate investment corporation. Arkad and its entities are New
Jersey & New York based companies that specialize in the
analyzing, acquisition, development, management, brokering
& disposition of distressed residential & commercial real
estate in specific micro-markets throughout the New Jersey &
New York areas. Arkad has demonstrated tremendous
success by following a disciplined acquisition model &
implementing value added and opportunistic strategies in
order to reposition non-performing distressed real estate
assets into marketable and/or income producing properties.
Arkad Group Real Estate Corp is the parent company of Arkad
Capital Management. ACM serves as the capital raising arm of
the Arkad companies.
3
1
Arkad Capital Management, LLC is an
entity created to provide long term &
stable income for investors seeking a solid
combination of security, transparency &
above average returns. Our investment
strategies serve as a competitive, if not
better alternative to purchasing an
investment property, especially if you
want to limit your level of risk and
management involvement.
ACM locates, secures & manages
investment capital via its private real
estate funds and joint ventures
opportunities. Investment capital is then
exclusively used on the acquisition &
renovation of targeted distressed real
estate assets around New Jersey and New
York. Generally, these assets are in need
of fast and effective liquidation and ACM’s
strategies and network allow for fast and
consistent acquisitions at substantial
discounts.
2
Our emphasis is placed on issuing high
yield, low risk, asset backed notes and
mortgages that take senior or junior debt
position on our real estate investment
transactions. ACM offers opportunities for
both ACTIVE & PASSIVE INVESTORS.
Through Arkad Fixed Income Fund &
Arkad Distressed RE Fund, we provide
growth and income to investors seeking
long-term returns outside of the
“common” investment vehicles market.
Additionally, through our Joint Ventures,
we allow the small-mid size investor to
participate in large-scale projects that
would normally be far out of reach.
Our Team
“We have always looked at real estate investing from a different angle. It was never just about cheap houses…
the capital behind it was just as important”
ACM
Mario Camino, Principal
Knowledgeable in all areas of real estate, Mr. Camino is the force behind ACM’s strategies and overall company production. A real estate entrepreneur since his early college year, Mr. Camino is one of the co-founders of ACM’s parent company Arkad Group Real Estate Corp. His leadership and vision has turned a “house buying” company into a multifaceted real estate enterprise that is now among the biggest distressed property buyers in New Jersey. A graduate from Rutgers University, Mr. Camino is always looking for the next right investment and structuring the proper funding for it.
4
Bank Owned
Estate Sale
Short Sale
Sheriff Sales
Our Buyers or Tenants
Our Investors or Joint Venture
Partners
Active investors purchase investments and continuously monitor their activity in order to exploit profitable conditions.
Active investing is highly involved. Unlike passive investors, who invest when they believe in its potential for long-term
appreciation, active investors will typically look at the price movements of their assets many times a week. Typically, active
investors are seeking short-term profits.
PASSIVE
Servicing Passive & Active Investors ACM’s unique structure enables for both types of investors to profit from distressed real estate
Passive investors will invest with the intention of earning long-term appreciation and limited maintenance. Also known as a
buy-and-hold strategy, passive investing requires good initial research, patience and a well-diversified portfolio. Unlike
active investors, passive investors buy a security and typically don't actively attempt to profit from short-term price
fluctuations. Passive investors instead rely on their belief that in the long term the investment will be profitable and generate
supplementary monthly income. Most passive investors use tools such as real estate notes and mortgages to beat the
market or as a supplement to their current retirement investment portfolio.
ACTIVE
Advantages It allows investors to quickly take advantage of undervalued market sectors. Active investing provides the potential for greater profits and returns than the overall market Active investing provides greater control over an investment.
The difference between active and passive investing is similar to the difference between the actions of one individual vs. the actions of a group as a whole. You can also think of active investing like trying to bet on who will win the Super Bowl, while passive investing would be the ability to profit as the NFL teams collectively generated income on ticket and
Advantages No action required by the investor There is no decision-making required by the manager or the investor. Less Risk than Active Investing
5
Arkad provides a high yield paying
and relatively low risk investment
fund or “pool”. Structured to
appeal to the investor who desires
to see his/her investment grow
without the hassles of deal hunting,
property management or day-to-
day decision-making; while still
enjoying from the benefits of a
diversified & profitable portfolio. If
this sounds like you, then Arkad
Fixed Income are well suited to
exceed your expectations
For the investor who wants to take a “hands off” approach to real estate investing
6
ARKAD FIXED INCOME FUND
TARGET SIZE
$1 MM
BUY-IN (min)
$30,000 per note
AVAILABLE UNITS
33
RATE OF RETURN %
8-15% per annum
MATURITY
1-5 years
TARGET ASSET
Residential (1-4 units)
STRATEGY
Fix & Flip
OPEN/CLOSE
Ongoing – Opens Quarterly
INVESTOR PARTICIPATION
Accredited, Sophisticated & Non-accredited
SECURITY & GUARANTEE
Title & Property insurance for ARV the entire duration of project Mortgage, Note.
WORKS GREAT WITH
IRA & 401 K Holders Cash, Savings, Bonds, Equity Lines, Pension,
Mutual & other funds
Our funds are structured through
private placements memorandums
and compliant with Title 17 of the
Securities & Exchange
Commission’s Code of Federal
Regulation, Rule 504. The purpose
of this unique structure is to allow
for flexible investor participation, as
it caters both accredited & non-
accredited investors. ACM strategy
is to utilize the capital as junior debt
(2nd position) against senior debt on
an investment property or in a pool
with other investors such as you. In
simple terms, your money becomes
a loan towards a purchase &
renovation of a distressed real
estate investment property. The
property is later sold for a profit and
you take a portion of those gains.
All this, without having to be
involved on the day-to-day
activities of “the deal”
PASSIVE INVESTORS
Arkad Fixed Income Fund
“House Flipping Fund”
Joint Venture: Equity Buy In’s
“Limited Partnerships”
For the investor who wants to take a “hands on” approach to real estate investing
By using legally structured joint ventures or limited partnership agreements, we can combine our knowledge & profit from these lucrative transactions together!
A) Equity Buy In’s allows our investors to take a “co-pilot” approach and along our teams, he/she is involved in the funding, managing, brokering, renovations or any other part of
the transaction they feel they can contribute with their expertise Equity Buy In’s cater to the investor who wants a more competitive level of risk/reward.
B) 50/50 Profit Splits are designed for the investor with larger funding capabilities and reach. These transactions usually require the full investment amount “all in” (Purchase, renovations, holding & closings costs) on a specific acquisition with a subsequent liquidation for a profit. These attractive deals offer an even profit split between the investor & Arkad and are limited to 1-2 investors per transaction.
ACTIVE INVESTORS
Joint Venture: 50/50 Profit Split
“Pari Passu Ventures”
Arkad provides 2 additional ways to
profit from distressed real estate
investing. Allowing the joy and the
thrill of being more “involved in the
deal’. Structured to work with the
investor who desires to see his/her
investment grow while keeping a
close eye on his portfolio. If this
sounds like you, then a Limited
Partnership or Joint Venture or with
Arkad is the right avenue into a
profitable & safe diversification.
Equity Buy in’s
50/50 Profit Spli t
INVESMENT NEEDED
$25,000 to $50,000
$100,000 to $1,000,000
PAYOUTS
7%-10% Preferred
+ Equity % from Net
Profits
50% of Net Profits
PROJECT DURATION
6-12 months +/-
6-12 months +/-
EFFECTIVE RATE OF
RETURN
10-15%
20%-30% Avg.
TARGET ASSET
Residential
Residential/Commercial
STRATEGY
Fix & Flip
Fix & flip or Hold
OPEN/CLOSE
Revolving
Revolving
INVESTOR
PARTICIPATION
Accredited, Sophisticated & Non-accredited
Accredited & Sophisticated
SECURITY &
GUARANTEE
Property & Title insurance for ARV the
entire duration of project
Mortgage & Note.
Property & Title insurance for ARV the entire duration
of project Mortgage & Note.
WORKS GREAT FOR
Basic Investment Knowledge, IRA/401k Holders, Note Buyers,
Realtors, Brokers, Loan Officers. Etc
Experienced Investors, Business Owners, Wealth
Managers, Financial Advisors, Trusts, Bankers,
Brokers.
8
1
Our investors receive a set of documents
as part of their closing and security
documentation. Within it, you will find a
mortgage (1st or 2nd position) & a
promissory note securing your set return
and terms for the full-invested amount.
A Guarantee of Completion of the
project insuring that the project will be
Investing in Real Estate has never been safer!
2
completed by the time we have
proposed. Insurance for the future value
of the property with the lender as the
beneficiary paid at closing. This
documentation is designed to protect
our investor’s returns and original
investment, while nurturing a secure and
transparent relationship
Investing in assets secured by real estate does not only give our investors the safety and transparency they want &
deserve, but also bring excellent returns. It is important to understand that we are not talking about high Loan-to-Value
(LTV) loans that banks and credit unions produce. We are talking about very low LTV loans. By that, we mean only 65-
75% of the properties improved value. This means by investing $65,000 or $75,000 with us, you would hold a mortgage
on a property that is worth $100,000.
Why is this important? To put it simply, this substantial cushion of equity protects your investment capital and gives you
confidence that your investment is secured by a piece of real property that is worth far more then the loan that
secures it. The security documentation received in these types of transactions is typically the same that a
“commercial” lender would receive and require.
SECURITY & RISK MANAGEMENT
9
Our investment strategies and unique deal and profit share structure; allow for investors of all ranges to participate in profits from transactions that normally are out of reach for most.
At ACM, we strongly advocate the ideal that distressed real estate investing can be “institutionalized” yet close to Main Street. We have formulated an organized and profitable way to incorporate investors from all scales into 4 different strategies. Strategies and profit structures similar to large-scale
multi-family portfolios, development, corporate office parks and skyscrapers.
WHO DO WE WORK WITH?
ACCREDITED INVESTORS
(INDIVIDUALS or CORPORATIONS)
SOPHISTICATED INVESTORS
(INDIVIDUALS)
NON-ACCREDITED INVESTORS
(INDIVIDUALS)
$200,000/yr income (Individual)
N/A
Less than $200,000/yr income
(Individual) – 2 yrs
$300,000/yr income (Couple)
N/A
Less than $300,000/yr income
(Couple) – 2yrs
Net worth of $1MM
N/A
Net worth of Less than $1MM
A bank, insurance company, registered
investment company, business development company, or small
business investment company, mutual fund, retirement fund, officer, or general
partner.
The investor must have, either
alone or with his purchaser representative, such
knowledge and experience in financial
A non-accredited individual investor
is one who has a net worth of less than $1 mil lion (including spouse)
and who earned less than
10
Ask yourself, what are your current returns on investments?. Perhaps you have tens or hundreds of thousands of dollars sitting in an IRA, savings account, CD, or pension plan not doing much for you or your loved ones. Perhaps you put it all in a money market account with an insignificant return.
In our current financial markets, nearly all of these investment vehicles would be doing earning you a 3-4% return on Investment (ROI).
Let’s say you currently have $50,000 at a 4% yield, five years from now that investment will be worth $60,000. Now let’s take your same investment of $50,000 and invest it for the same five years but at a rate of 12%. Now your same initial investment has grown to an amazing $80,000! That is essentially $20,000 of free money for just changing your yield from 4% to 12 % - and that is only over a 5-year period. When you extend that period to 10 years you have now grown your investment to $110,000. You just gained an additional $40,000 simply by increasing your yield! That is $40,000 you would have never seen with your
original investment strategy.
A BETTER OPTION AWAITS
1
We welcome you! Thank you for considering an investment along us. Arkad Group Real Estate Corporation and its capital raising arm, Arkad Capital Management, LLC. Are certain that after reviewing this informational
2
package, you will not only be excited about the potential return on your invested dollars, but also working with a company that offers a very rare opportunity that most investors would not otherwise be able to participate in.
“Opportunity does not knock, it presents itself when you beat down the door”
So does it make sense to let a bank run your investments
…or are you ready to take control back & profit from it?
BE THE BANK!
Arkad Group Real Estate Corporation
Arkad Capital Management, LLC
Arkad Group Investments, LLC
111 Park Ave. Plainfield, NJ 07060 (3rd fl)
888-38-ARKAD 732-309-4648
www.arkadgroup.co
Investment Funds I Joint Ventures I Private Money I Alternative Investments
ARKAD CAPITAL MANAGEMENT
ARKAD CAPITAL MANAGEMENT, LLC an arkad | GROUP Company
www.arkadgroup.co/investors