THE MF ALOHA FUND 2
OUTLINE
WHY MF ALOHA FUND?
STRONGER DEALS
LONG TERM GROWTH
ASSET DIVERSIFICATION
The
ENERGY ALLOCATION
HEDGE AGAINST INFLATION
We
EXPERIENCED OPERATORS
The
The ability to leverage our relationships, track record, AND have the capital available allows us to negotiate better deals & more attractive rates.
MF Aloha Fund allows you to diversify your investment across multiple assets providing safety & upside.
We project that 100% of investor capital will be returned by year 3. This allows investors to recoup investment and still benefit from future cash flow and equity growth.
As operators, we can now focus on what matters most… protecting & growing investor capital and enhancing the overall experience.
buy appreciating assets, so as inflation goes up, so do the rents & value. As paper money decreases in value, the real estate you own will increase in value.
MF Aloha Fund allows you to diversify your investment across multiple assets providing safety & upside.
HIGHLIGHTS
$1,000,000 8% 18-20% QUARTERLY MINIMUM INVESTMENT AMOUNT PREFERRED RETURN ANNUALLY TARGETED RATE OF RETURN ANNUALLY DISTRIBUTION PAYOUT OPTION A1
$200,000 8% 18-20% QUARTERLY MINIMUM INVESTMENT AMOUNT PREFERRED RETURN ANNUALLY TARGETED RATE OF RETURN ANNUALLY DISTRIBUTION PAYOUT OPTION A2
$100,000 6% 16-18% QUARTERLY MINIMUM INVESTMENT AMOUNT PREFERRED RETURN ANNUALLY TARGETED RATE OF RETURN ANNUALLY DISTRIBUTION PAYOUT OPTION A3
KEY PARTNERS
Tyler D e has At the uickly underst . Today, Tyler controls 2,730 apartment units, throughout 5 different states, with assets of $385M+.
Tyler now lives in Maui, HI with his wife Brittany & their two beautiful kids Paxton & Marley.
Ryan Woolley s, has over 20 y . What began evolved into a portfolio of m s spanning in over 5 different states. Ryan is a proficient underwriter, which has been critical in mitigating risks, identifying opportunities, developing strategic operating plans, and optimizing overall investor returns.
Ryan currently lives in Florida with his 2 boys
R
2,730 units 2 offices MANAGEMENT OVERVIEW 21 team members $385 MM+ portfolio value 6 states $118 MM equity created
TOUGHEST DEALS
VILLAGE EAST
VISION - Strategic partners had a different vision which should’ve been identified early on
RAISE - An increased raise amount would have allowed units to be renovated faster quicker, ultimately increasing overall cashflow sooner
AGE - The buying criteria at the time didn’t consider the natural repairs required for older properties fully, leaving room for error and limited capital for all repairs and maintenance
TROPICAL
RIDGE SIGNAL HILL TOUGHEST DEALS TEAM - By not hiring additional team members sooner, deferred maintenance was delayed BIG PICTURE - Expediting exterior renovations would’ve showcased the amazing views during a time when the nation was quarantined BURNED UNITS Instead of building a maintenance shed, we should’ve rebuilt the burned units. UTILITIES - By delaying sub-metering until after the 2nd year, the ability to capture increased income was limited. LAND Unused land behind the property was left un-utilized, missing out on other income opportunities. COMMUNICATION Even with incredible returns of 111% in 2.5 yrs, delayed communication will always overshadow investor’s experience.
WHAT WE LEARNED I
M P O R T A N T M A R K E T I N D I C A T O R S
G
O O D V S B A D P R O B L E M S
H
O W T O B E A T T H E C O M P E T I T I O N
21.8% Projected Actual Projected Actual CASH ON CASH ANNUAL RATE OF RETURN These resu ts are based on past performance There can be no guarantee that s m lar resu ts w l be ach eved TRACK RECORD RETURNS
STRATEGY
5 Year Local Moderating Job Growth 5 Year Local Population Growth Single Family Real Estate Appreciating Consistently Price to Rent Ratio Above 10 Supply Constrained Markets with High Barriers to Entry Median Income Above Nation Average Consistently Low Crime Relative to the State and/or Nation MFCP specifically acquires properties in markets that have the following key characteristics: MARKETS 15M to $35M 6% Minimum Cash on Cash at the End of Year 1. 8% End of Year 2 10% Annual Cash on Cash Total Return 2X Multiplier in 5 to 7 Years Which Requires 15% - 20% Total Annual Return MFCP assets offer investors reliable returns as well as added tax benefits asset Purchase Price Range: Cash on Cash Return Total Return RETURNS ACQUISITIONS CRITERIA
100 + Units 15% Below Market Rents 1990 or Newer Class B Properties B or Better Location Properties Located in the Sunbelt Region Pitched Roof Construction Zero Rent Control MFCP targets assets with below market rents & are mismanaged minimal deferred maintenance PROPERTY Minimum DSCR of 1.4 Finance Options Agency REO (Bank Owned) Owner Finance Owner Equity Prefer Non-Recourse Loans Lending terms vary according to the needs of a given deal and current economic environment FINANCIAL ACQUISITIONS CRITERIA
Agency Debt Private Lender MFCP Sponsorship Ability Up to $21M Conventional Class B Shares Only Conventional Class B and Better Preferred Advanced Waterfalls as Needed DEBT STRUCTURE 5% Acquisition Fee 25-45% of the Deal GP Split Based Upon Roles and Responsibilities GP SPLITS Due Diligence Reveals Risk Greater Than the Deal Can Support No Hard Money Day Zero (Due Diligence Can Be Completed Within a 2 Week Time Frame) The Deal Does Not Meet Previously Defined Criteria DEAL KILLERS ACQUISITIONS CRITERIA
INVESTMENT PROCESS
ASSESSMENT ANALYSIS DUE DILIGENCE ACQUISITION VALUE ADDED (REHAB & REPOSITION) ASSET MANAGEMENT EXIT STRATEGY
STRUCTURE
$1,000,000 8% 18-20% QUARTERLY MINIMUM INVESTMENT AMOUNT PREFERRED RETURN ANNUALLY TARGETED RATE OF RETURN ANNUALLY DISTRIBUTION PAYOUT OPTION A1
$200,000 8% 18-20% QUARTERLY MINIMUM INVESTMENT AMOUNT PREFERRED RETURN ANNUALLY TARGETED RATE OF RETURN ANNUALLY DISTRIBUTION PAYOUT OPTION A2
$100,000 6% 16-18% QUARTERLY MINIMUM INVESTMENT AMOUNT PREFERRED RETURN ANNUALLY TARGETED RATE OF RETURN ANNUALLY DISTRIBUTION PAYOUT OPTION A3
BREAKDOWN $1,000,000 $2,300,000 INITIAL INVESTMENT INVESTMENT VALUE $80,000 $80,000 $80,000 $80,000 $80,000 YEAR YEAR YEAR YEAR YEAR Investors Cash Flow Returns (5 Year Hold) 8% PREFERRED RETURN $400,000 Investors Equity Share Returns (5 Year Hold) 18% ANNUAL RATE OF RETURN $900,000 $1,000,000 Return of Initial Investment 90% OPTION A1
BREAKDOWN $200,000 $380,000 INITIAL INVESTMENT INVESTMENT VALUE $16,000 $16,000 $16,000 $16,000 $16,000 YEAR YEAR YEAR YEAR YEAR Investors Cash Flow Returns (5 Year Hold) 8% PREFERRED RETURN $80,000 Investors Equity Share Returns (5 Year Hold) 18% ANNUAL RATE OF RETURN $100,000 $200,000 Return of Initial Investment 90% OPTION A2
BREAKDOWN $100,000 $180,000 INITIAL INVESTMENT INVESTMENT VALUE $6,000 $6,000 $6,000 $6,000 $6,000 YEAR YEAR YEAR YEAR YEAR Investors Cash Flow Returns (5 Year Hold) 8% PREFERRED RETURN $30,000 Investors Equity Share Returns (5 Year Hold) 18% ANNUAL RATE OF RETURN $50,000 $100,000 Return of Initial Investment 80% OPTION A3
PORTFOLIO
2,730 units 2 offices MANAGEMENT OVERVIEW 21 team members $385 MM+ portfolio value 6 states $118 MM equity created
PAST ASSETS 7.85% 21.8% Projected Actual Projected Actual CASH ON CASH ANNUAL RATE OF RETURN These resu ts are based on past performance There can be no guarantee that s m lar resu ts w l be ach eved
HIGH YIELD DISPOSITIONS STOUTS RD 14TH AVE MAGNOLIA CEDARS SIGNAL HILL VILLAGE EAST TROPICAL RIDGE RIVER CREST BIRMINGHAM, AL BIRMINGHAM, AL MONTGOMERY, AL MOORESVILLE, NC STATESVILLE, NC DENTON, TX COLUMBIA, SC COLUMBIA, SC 10 UNITS 10 UNITS 96 UNITS 40 UNITS 122 UNITS 133 UNITS 138 UNITS 150 UNITS Increase in Valuation Projected ARR Actual ARR 41% 25% 40% Increase in Valuation Projected ARR Actual ARR Increase in Valuation Projected ARR Actual ARR Increase in Valuation Projected ARR Actual ARR Increase in Valuation Projected ARR Actual ARR Increase in Valuation Projected ARR Actual ARR Increase in Valuation Projected ARR Actual ARR Increase in Valuation Projected ARR Actual ARR 34% 25% 43% 33% 19% 21% 136% 35% 67% 85% 20% 44% 47% 19% 17.81% 101% 19% 47.42% 60% 18% 42.46% 1.4x EQUITY MULTIPLE 1.43x EQUITY MULTIPLE 1.79x EQUITY MULTIPLE EQUITY MULTIPLE EQUITY EMULTIPLE QUITY EMULTIPLE QUITY EMULTIPLE QUITY MULTIPLE 2.11x 1.44x 1.71x 1.42x 2.35x
HIGH YIELD DISPOSITIONS WINDRIDGE PROSPER COLUMBIA, SC COLUMBIA, SC 46 UNITS 419 UNITS Increase in Valuation Projected ARR Actual ARR 36% 19% 25.47% Increase in Valuation Projected ARR Actual ARR 35% 19% 32.09% 1.31x EQUITY MULTIPLE 1.2x EQUITY MULTIPLE
CURRENT ASSETS 94.3% OCCUPANCY CASH ON CASH These resu ts are based on past performance There can be no guarantee that s m lar resu ts w l be ach eved 7%
ASSETS UNDER MANAGEMENT 2020 22ND AVE DIFFERENCE 1830 MILVERTON ON 20TH KNIGHTSGATE ASPEN LAKE TERRACE OASIS BIRMINGHAM, AL CLEVELAND, OH CLEVELAND, OH HICKORY, NC COLLEGE STATION, TX FORT WORTH, TX TULSA, OK HOUSTON, TX 16 UNITS 31 UNITS 34 UNITS 415 UNITS 60 UNITS 224 UNITS 79 UNITS 144 UNITS Projected COC Projected ARR Actual COC 6% 17% 6% Projected COC Projected ARR Actual COC IProjected COC Projected ARR Actual COC IProjected COC Projected ARR Actual COC Projected COC Projected ARR Actual COC Projected COC Projected ARR Actual COC InProjected COC Projected ARR Actual COC Projected COC Projected ARR Actual COC 7% 13% 5% 7% 21% 6% 8% 24% 8% 6% 18% 6% 7% 18% 7% 7% 20% 7% 8% 19% 8%
ASSETS UNDER MANAGEMENT COVENTRY THE 901 DOVER POINTE HOUSTON, TX WACO, TX HOUSTON, TX 16 UNITS 31 UNITS 34 UNITS Projected COC Projected ARR Actual COC 6% 17% 6% Projected COC Projected ARR Actual COC IProjected COC Projected ARR Actual COC 7% 13% 5% 7% 21% 6%
MANAGEMENT
TEAM
KEY PARTNERS
TYLER DEVERAUX
MANAGING PARTNER
Tyler Deveraux is a Managing Partner of MF Capital Partners. He has been investing in real estate for over 14 years. At the age of 21, he acquired his first student rental property, quickly understood the potential of the industry, and never looked back. Today, Tyler controls 2,730 apartment units, throughout 5 different states, with assets of $385M+.
Tyler now lives in Maui, HI with his wife Brittany & their two beautiful kids Paxton & Marley.
Ryan Wo tners, has over pace. What began w olved into a portfolio of multi family assets of $385M+ and 2,730 units spanning in over 5 different states. Ryan is a proficient underwriter, which has been critical in mitigating risks, identifying opportunities, developing strategic operating plans, and optimizing overall investor returns. Ryan currently lives in Florida with his 2 boys.
DEDICATED
ANIELS F OPERATIONS MELISSA FORBUSH VP OF INVESTOR RELATIONS
TEAM OF EXPERTS
TASHA
ALLRED SENIOR MANAGER OF INVESTOR RELATIONS
JACKSON CAMPBELL
FUND MANAGER
TODD MILLAR
CHIEF FINANCIAL OFFICER CHE OLIVER DIRECTOR OF MARKETING JOE HUPP DIRECTOR OF MARKETING ARIE BEARD ACQUISITIONS COORDINATOR RAIF MCCOY INVESTOR RELATIONS SUPPORT
DEDICATED
ZACH RUCKER OCIATE
TEAM OF EXPERTS JORDAN HEGEMANN ACQUISITIONS ASSOCIATE HUNTER GASCAY ASSET MANAGEMENT ASSOCIATE A AMANDA DEARBORN ACQUISITIONS ASSOCIATE KAITLYN BURRUP UISITIONS ASSOCIATE ADAM ALSOLTANI ASSET MANAGEMENT ASSOCIATE BRANDON SWINDALL ASSET MANAGEMENT ASSOCIATE KIMBERLY MCCALL ACQUISITIONS ASSOCIATE MEG CARD ACQUISITIONS ASSOCIATE
NEXT STEPS
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FUNDS RECIEVED
PROPERTY PERFORMANCE UPDATE
YEARLY
AND OVERALL PERFORMANCE SUMMARY
PROPERTY ACQUIRED
QUARTERLY PROPERTY MARKET AND IN DEPTH PERFORMANCE UPDATE
POST COMMUNICATION
MONTHLY
DETAILED
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