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FALL CREEK INCOME FUND LLC

VENTURE PLAN EXCLUSIVE INVESTMENTS FOR QUALIFIED INVESTORS

www.fallcreekassetmanagement.com support@fallcreekassetmanagement.com


CONFIDENTIAL This document contains confidential and proprietary information belonging exclusively to Fall Creek Income Fund LLC. Copyright Š 2019 All Rights Reserved Fall Creek Income Fund LLC. This book, or parts thereof, may not be reproduced in any form without permission. This book is provided solely for convenience and does not constitute legal or investment advice. The materials in this book are provided for information purposes only. While we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained in this book for any purpose. Any reliance you place on such information is therefore strictly at your own risk.

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NEW OPPORTUNITIES – EXECUTIVE SUMMARY WE HAVE CREATED AN INVESTMENT VEHICLE FOR QUALIFIED INVESTORS TO EARN A FIXED INCOME THROUGH AN INVESTMENT IN OUR SECURED TERM CERTIFICATES BACKED BY REAL ESTATE WITHOUT THE BURDENS OF MANAGEMENT.

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OUR VISION The core mission of Fall Creek Income Fund LLC (“Fall Creek”) is to acquire distressed, defaulted, and undervalued single-family, multi-family (i.e., duplexes), lots/land, and small commercial properties in the Indiana market at all price points, with a goal to add value to them and either position them for quick resale (“flip”) or insert them into the rental or lease market to provide exceptional, consistent cash flow to our investors. We help investors discover new opportunities, keep their assets safe from the volatility of Wall Street, and create their own economy. Through this process we ultimately achieve financial freedom together. After a record setting 2017, Wall Street limped to the finish line in 2018 with the S&P 500 down more than 4% for the year. Traditional equity markets will continue to demonstrate historical volatility and will once again struggle to stabilize. With uncertainty on Wall Street, investors will be looking for better ways to preserve and increase their wealth through alternative investment assets consisting of tangible assets instead of soft paper. Our investment strategy fills this demand for alternative assets with a social component through the acquisition and financing of single-family homes.

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THE RIGHT IDEA Considered an inefficient market, real estate will always provide opportunities to those with boots on the ground and with intimate knowledge of particular markets who can use their information advantages for their gain. Fall Creek is well positioned to capitalize on this information gap in the real estate market due to our principal, Ryan Moeller (the “Principal”) and his extensive real estate investment experience, specialized investment experience in the alternative asset class and proprietary tools used to build investment portfolios. Fall Creek Asset Management LLC, our fund manager (the “Fund Manager”) headed by our Principal, seeks to provide an investment option that includes income while encouraging capital preservation for qualified investors. Fall Creek Asset Management LLC proudly created this private investment fund, Fall Creek Income Fund LLC with two key elements as our goals:

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UNCORRELATED RETURNS

Traditional investments such as stocks and bonds can fluctuate wildly in response to foreign tensions over oil and territorial disputes, civil unrest on the other side of the world, natural disasters and election cycles. It is Fall Creek’s goal to generate uncorrelated monthly fixed returns for institutions and qualified individuals through investment in asset-backed income producing assets.

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BUILDING WEALTH LEVELING THE PLAYING FIELD

For ages, the 1% has used real estate as a wealth creation tool. It’s because real estate investing contains the two essential elements for building wealth; income and appreciation. But to achieve wealth through real estate, these high-net-worth individuals didn’t do it all themselves. They relied on the expertise of others. They leveraged the experience and time of experts to build their wealth. By relying on these experts, they are able to leverage their capital with someone else’s expertise and footwork and sit back and enjoy the fruits of someone else’s labor. They accomplish this through private investment funds. These funds used to be exclusive to the well-connected and ultra wealthy, but thanks to recent changes in the securities laws, access to these types of opportunities have opened up to everyone. Our mission is to level the playing field and make the investments that used to be exclusive to the ultra-wealthy, available to everyone. What if you could invest in real estate that provides you with a fixed return without having to do all the dirty work yourself? Through our private investment fund, you will be able to invest in real estate and receive a fixed return without headaches of managing the investments yourself. And because you’re part of a fund and leveraging capital with other like-minded investors, you don’t need a million dollars to get started. You can start with as little as $30,000. Making an investment with our diversified fund immediately diversifies you across multiple cash-flowing properties and across markets allowing you to build wealth through income generation.

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NEW ECONOMY | NEW IDEAS | ALTERNATIVE INVESTMENTS

OUR MANDATE “If you don’t find a way to make money while you sleep, you will work until you die.” Warren Buffett Here at Fall Creek, our mandate is to create and preserve the wealth of an exclusive group of qualified investors with a tangible investment alternative to the volatility inherent in the stock market by providing a passive income investment opportunity through our Secured Term Certificates for the opportunistic acquisition of single-family residential properties and repositioning of these assets to generate income by placing them on the rental market or extracting profits from resale. We may also generate income by providing secured lending for the acquisition of similar properties.

“Keeping a little ahead of conditions is one of the secrets of business.” Charles M Schwab

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FALL CREEK INCOME FUND UNIQUE ADVANTAGES Fall Creek offers a perfect combination of knowledge of the single-family markets specialized real estate experience and proprietary systems. Our private fund provides qualified investors with an opportunity to build wealth through asset-backed investments in the Indiana market. Our investment strategy allows qualified investors to share the benefits of our highly successful investment model, which we have used privately and are now making available to a select group of investors.

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COMPANY OVERVIEW FALL CREEK INCOME FUND LLC WAS FORMED TO MEET THE DEMAND OF INVESTORS WHO WERE INTERESTED IN PARTICIPATING IN OUR INVESTMENT STRATEGIES AND PROVEN TRACK RECORD OF SUCCESS IN PRIVATE INVESTMENTS.

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Fall Creek is a private capital management com-

We identify and exploit gaps in the market for

pany. We are focused on maintaining a consis-

tangible real estate investment assets in the sin-

tent track record of providing fixed income returns

gle-family class at all price points that are not

for our investors.

correlated with the volatility of the broader in-

Our investment selection process is focused on

vestment markets that can move at the whims of

identifying undervalued investment assets to deliv-

investor sentiment and global geopolitical and

er superior fixed, periodic returns to our investors.

economic events.

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FALL CREEK INCOME FUND | WHY INDIANA Indiana is a prime market for real estate investing, fueled by a strong economy and housing market. At the end of 2017, economists at Indiana University projected Indiana’s economy to grow at a robust rate of 2.8%, outstripping the national rate of 2.6%.

Actual results showed Indiana and the country as a whole both

exceeding predictions with Indiana’s growth expected to end around 3.2% for the year and the national rate to end around 3.0%. For 2019, Indiana’s economy is forecasted to remain strong, expected to continue to outpace the national rate. Fueled by tax cuts, Indiana is expected to experience growth across the board— in jobs, numbers of establishments, income levels, wages as well as gross state product. We believe that the Indiana market is rife with market inefficiencies that can be exploited for significant gain through our intimate knowledge of the area and boots on the ground approach. By definition, a market inefficiency is a situation where the price of something doesn’t reflect all the publicly available supply and demand information, due to lack of information, negligence, etc. A person who can recognize a market inefficiency associated with a product or transaction can take advantage of the inefficiency for their profit. Our knowledge of the Indiana market with a firm understanding of supply and demand has allowed us to find bargains in the past and will allow us find bargains going forward that would be ideal for quick turnaround, thereby maximizing short-term profit, minimizing risk and maximizing long-term appreciation and profit. FALL CREEK INCOME FUND LLC

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FALL CREEK INCOME FUND | WHY INDIANAPOLIS The success of real estate is dependent on two factors: large population and a high rate of employment. Whenever you have an area with both of these, and a steady supply of reasonably priced inventory, there is a great potential for profit. It’s estimated that Indianapolis has been growing at a rate of around 8,000 people per year since 2010. Also the unemployment rate of Indy was 3.1% in Dec. of 2018 compared to the national average of 3.9%. These factors along with the enclosed information make Indiana prime for investment opportunity. Just to give you an idea of the potential in Indianapolis, the CEO of Salesforce Marketing Cloud called Indy “the best kept secret in the country“.

Salesforce

(#285 on the Fortune 500) liked the area so much that they recently built a new tower in downtown Indianapolis. It is one of four Salesforce towers, the others are located in in NY, San Francisco, and London.

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Also, Ambrose Property Group is in the process of developing Waterside, a 103 acre waterside development designed to create a thriving new downtown district. The site (formerly a GM Plant) will be home to commercial and retail space, office space, a hotel, and residential units. The development of Waterside is expected to create nearly 12,000 jobs. A $50 million dollar grant has been given to Indy to help build the Rapid Bus Transit Line.

Transportation changes like this have been known to increase property

values and make cities more desirable to live in.

#1 #1 #2

CNBC ranked Indiana #1 in lowest cost of doing business in the U.S. last year (indychamber.com)

Conde Nest Traveler has recognized Indy as a top city to watch in 2017

Realtor.com has recognized Indy for being one of the top 10 cities where downtown is making a comeback.

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#4 #5 #9

for Best Cities for Women in Tech 2017. according to smartasset.com

Forbes said Indy was the 5th leading city creating new tech jobs in 2017

in the nation for Best Small Business Cities in America in 2017 by cnbc.com

Travel and Leisure listed Indianapolis as one of the top 50 best places to travel in 2017 Forbes labeled Indy one of the best cities for renters and top 5 for cities where you can live well on a $60k salary. Notable companies headquartered in Indianapolis: FedEx, Lilly, Salesforce, State Farm, & Indianapolis Motor Speedway

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FALL CREEK INCOME FUND | WHY PRIVATE LENDING There is a high demand for private secured loans because it is the only type of financing available for many borrowers and real estate investors. This is true for two primary reasons:

(a) Low Down/High Leverage - Private money lenders are more concerned with the deal than the amount of down payment. Conventional lenders will typically require a 20% or more down payment from certain borrowers and real estate investors. Private loans can be approved with no down payment with proper securitization.

(b) Relaxed Income Requirements - Private lenders are less concerned with a debt-to-income ratio and more concerned with a sold strategy to pay back a loan. Conventional lenders and banks have strict debt-to-income ratio requirements, which range from 36% to 45%. A debt-to-income ratio is calculated by taking the total monthly debt coverage divided by the borrower’s income. Because of these strict requirements, some borrowers do not show a consistent income and therefore cannot borrow conventional money.

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OUR SELECTIVE INVESTMENT STRATEGY The strategy of Fall Creek is to acquire undervalued single-family, multi-family (i.e., duplexes), lots/land, and small commercial properties properties at all price ranges and to provide financing for the same. This investment will allow Investors the opportunity to benefit financially from the current market conditions and the extensive experience of the Manager. Fall Creek aims to acquire substantially undervalued assets that are poised to outperform the markets. Our Principal, Ryan Moeller, has significant experience identifying and acquiring undervalued assets for acquisition, rehabilitation, leasing, and disposition.

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Competitive Advantages We plan to take a non-traditional approach by capitalizing on our informational and research advantages. We plan to acquire single-family properties via nontraditional avenues including acquisition through auctions and arbitrage methods. Acquiring properties at auction would include attending mortgage foreclosure and municipal and county tax deed auctions. Fall Creek will incorporate a proprietary business acquisition model developed by our Principal to identify undervalued properties positioned for quick rehab and placement into the rental market. We use a proven formula to select properties poised to give the greatest return (factoring both projected rental revenues and appreciation). Fall Creek will subject prospective portfolio properties and secured lending opportunities to rigorous research and financial model comparisons in order to facilitate smart investment decisions. Our Principal brings years of experience in identifying, purchasing, and selling distressed alternative real estate assets. His extensive negotiation experience will allow us to buy properties at deep discounts, which will allow us to achieve healthy returns. The experience of our Principal will allow us to track the distressed market segments and pinpoint the properties fitting our investment criteria that when purchased will yield strong cash flow and when resold will result in optimal returns.

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WHY INVEST IN ALTERNATIVE ASSETS? ALTERNATIVE ASSETS CAN BRING SIGNIFICANT BENEFITS TO INVESTMENT PORTFOLIOS BY DIVERSIFYING. Diversifying exposure away from traditional assets such as cash, fixed interest (bonds), and equities is one of those benefits. As a whole alternative investments have a low correlation with other asset classes, which along with a number of other advantages makes them an important component of your investment portfolio.

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Advantages The fundamental reason for investing in alternative assets is to improve the risk and reward characteristics of your investment portfolio. This occurs by increasing the opportunity to generate higher absolute returns while improving portfolio diversification. In the US for over 20 years the long-term returns of alternative assets have represented a premium to the performance of public equities and it is this that has spurred on the surge in alternative asset private investment funds. ADVANTAGES OF INVESTING IN PRIVATE INVESTMENT FUNDS The fundamental reason for investing in alternative assets is to improve the risk and reward characteristics of your investment portfolio. This occurs by increasing the opportunity to generate higher absolute returns while improving portfolio diversification. In the US, for over 20 years, long-term returns of alternative assets have represented a premium compared to the performance of public equities and this has spurred the surge in alternative asset investment funds. Our Fund Manager believes that there are substantial benefits that accrue to institutions and high net worth investors who invest in our actively managed funds including:

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Access to the Asset Class Although it’s possible for institutions and individuals to invest directly in real estate by acquiring individual single-family housing assets and smaller multifamily and commercial properties, in most cases they have neither the time, resources, nor inclination to make a profitable operation a reality.

Asset Diversification By investing in our Secured Term Certificates, Fall Creek allows Investors to be involved in real estate investing without the expense of time of seeking out and acquiring properties directly and at the same time creating a diversified portfolio

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WHY AVOID WALL STREET? There are many reasons not to invest in Wall Street either through public stocks, fixed interest securities or publicly available investment funds managed and brokered by Wall Street. In recent years, Wall Street has proven to be highly volatile. 2018 has been a perfect case study. After record highs in 2017, 2018 has been volatile for the public markets with many economists seeing prior year gains as flirting with bubble territory with the real prospect that the market will end down for the year. At times, especially in the past ten years, Wall Street has also failed to deliver promised returns to investors due to investment markets being adversely affected by a range of macro-economic and geopolitical events that have undermined investor confidence and shown the flaws of the Wall Street investment model.

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It is a statistical fact that the vast majority of individual retail investors lose money in the stock market. It is also a statistical fact that the dividend returns from mutual funds, stocks and similar securities investments are scant, and sometimes completely nonexistent, at the sole discretion of the unseen management of the company in which the investor has invested. This, at times, has created a loss in investor confidence and a massive sell down in equity markets, since the commencement of the GFC, and ongoing investment market volatility. This has seen many investors lose large portions of their wealth and lose confidence in publicly available Wall Street managed and manufactured investments.

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This loss in confidence can also be attributed to a number of behavioral and structural reasons for not investing in Wall Street:

• Commission based brokerage plans that work to Wall Street’s advantage by maximizing commission and trading brokerage on your investments.

• Well crafted marketing and sales systems used to sell poorly structured investments.

• Non-transparent fee structures and portfolio management practices that maximize fees.

• The withholding of timely and informative investment data from retail investors until it is no longer of any use.

Because of high volatility and without backing by assets as with real estate investments, there can be zero downside protection in the stock market. You can be completely wiped out. By investing outside of Wall Street you are able to access investments that are not commonly available to other investors, which will give you benefits of:

Portfolio diversification leading to reduced risk and greater reward.

• Greater investment transparency as your investment is managed by a small dedicated team that is personally responsible for your Investment and that is accessible to the individual investor.

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WHY PRIVATE INVESTMENTS? ENHANCE YOUR PORTFOLIO THROUGH PRIVATE INVESTMENTS Private investments are investments in assets which are not traded in regulated or public markets and include investments in unlisted companies as well as privately owned real estate. In recent years, institutional investors have increased their exposure to asset classes other than listed equities and fixed income securities, such as property, private equity and infrastructure. Private investments are an important investment portfolio enhancement tool as they give you access to alternative asset classes and allow the effective management of risk through portfolio diversification as well as enhanced returns.

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WHY PRIVATE REAL ESTATE? PRIVATE REAL ESTATE CAN PROVIDE SIGNIFICANT AND IMPORTANT BENEFITS FOR A MIXED INVESTMENT PORTFOLIO. Unlike stocks, which are susceptible to market volatility caused by macroeconomic factors, where returns are unpredictable, returns on real estate investments with an income component are more predictable. With proper experience and analysis, cash flow from real estate investments can be projected with confidence. Well-chosen private real estate investments have delivered attractive investment performance over the long-term generating high returns that fall between the returns of bonds and equities.

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For the period spanning from 1978 to 2010 private real estate returned 9.1% per annum, an attractive return that was higher than the 8.8% per annum return of bonds and lower than the 12.6% per annum return made by equities over that period. Private real estate has also historically delivered high and steady annual income returns, averaging 7.7% per annum for the period. Private real estate has generated these returns with relatively low volatility and they achieved one of the highest risk adjusted returns among the major asset classes. This means that for each unit of risk it is estimated that private real estate has provided higher returns than stocks and public real estate, and has matched bonds, which are traditionally seen as low risk investments.

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WHY REAL ESTATE? Investing in real property allows investors to access a number of opportunities that are not available through investing in other asset classes. SUPERIOR RISK ADJUSTED PERFORMANCE Historically, other asset classes such as equities have much higher risk and volatility. When asset class returns relative to risk level are calculated over an extended period and measured in terms of volatility (or standard deviation), it is clear that real estate has produced competitive absolute returns as compared to stocks and bonds. Also clear is the superiority of real estate’s risk adjusted return in comparison to equities, one that delivers a higher return with the same risk as bonds. This significantly lower volatility combined with high absolute and risk adjusted returns makes real estate a beneficial addition to a diversified portfolio.

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STABLE INCOME STREAM Most rental real estate investments can provide investors with stable, regular income from contractual leases. Lease terms make cash flow predictable, even during economic downturns. Unlike bonds, there is no prepayment risk, so income returns flow as long as the property is operating. DIVERSIFICATION The positive aspects of diversifying your portfolio in terms of asset allocation are well documented. Real estate returns have relatively low correlations with other asset classes (traditional investment vehicles such as stocks and bonds), which adds to the diversification of your portfolio. INFLATION HEDGE  Rental real estate has a positive correlation with both anticipated and unanticipated inflation and provides an inflation hedge with property owners benefiting from increasing rents and property values as inflation rises. The ability to adjust rents over time is typically credited for real estate’s inflation-hedging benefits. Typically, robust economic growth should result in higher inflation, and therefore stronger rent growth. In addition, many long-term leases contain built in rent increases that are applied over time, while shorter term leases will roll over at the current market rate.

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EQUITY UPSIDE ENSURES INCOME Since 1968, appreciation levels for real estate have been 6 percent per year, including during the downturn in the economy beginning in 2007, according to the National Association of Realtors. Note investments backed by rental real estate have added security of returns backed by appreciating assets. TANGIBLE ASSET Rental real estate investing is a good way to diversify portfolios that are backed by hard assets. Real estate is not the same as buying shares in a company that may be here today and gone tomorrow. Real estate is an asset class that investors can literally touch and feel. Yes, some building occupants may come and go, and there may be ups and downs in building valuations over the course of its life, but the property itself is not going to disappear.

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WHY THIS OPPORTUNITY? “OPPORTUNITIES come infrequently. When it rains gold, PUT OUT THE BUCKET, NOT THE THIMBLE.” 

Warren Buffett

HOUSING SHORTAGE IN INDIANA For 2018, Indiana’s housing market experienced strong price growth fueled by demand outstripping supply due to high consumer confidence as well as low unemployment and interest rates.  Even though the real estate market has recovered to pre-Great Recession levels, there remain arbitrage opportunities for those intimately knowledgeable and familiar of particular geographic regions. Having worked and lived in Indiana for years positions our Manager to find and exploit significant arbitrage opportunities, even in this information age.

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RENTAL SHORTAGE DRIVING OPPORTUNITIES Across the country, in multiple markets and cities, shortages have been plaguing residential rental markets. As a result, rental properties are becoming scarce and rental rates are on the rise. “More U.S. households are renting than at any point in 50 years,” according to a July 19, 2017 report from the Pew Research Center. The report also noted that the number of individual U.S. households that have chosen to rent rather than own increased significantly between 2006 and 2016, rising to 36.6 percent from 31.2 percent. Cilluffo, Anthony; Geiger, Abigail; and Fry, Richard. “More U.S. Households are Renting than at any Point in 50 years” www. pewresearch.org (June 19, 2017). It is precisely these circumstances that present opportunities upon which Fall Creek plans to capitalize.

Ideal market conditions are currently driving the Indiana real estate market where demand exceeds limited supply. Although the overall real estate market has exploded recently, there are still plenty of cities where undervalued investment properties with high cash flow potential can still be found.

DIVERSIFIED RISK By acquiring a mix of single-family properties and funding a mix of secured real estate loans, Fall Creek is able spread risk and as a result, the risk for loss decreases as individual losses are spread out over different classes and over several units.

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BECAUSE DIVERSIFICATION = LOW VOLATILITY AND ENHANCED RETURNS The low or negative correlations of private real estate returns with traditional investments such as bonds, equities and public Real Estate Investment Trusts (REITs) make it an effective investment portfolio diversifier, which contributes to lower volatility and enhanced returns for a set level of risk.

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We believe that this makes it an important investment in an increasingly unpredictable global economy with highly volatile investment markets. Specifically we believe this investment opportunity will give you substantial advantages including: •  Access to the private real estate asset class. Although institutions and individuals can own individual single family housing assets, in most cases they don’t have the time, resources or the inclination to manage a diversified real estate investment portfolio that makes profitable operation a reality. •  Professional operations management. By investing in a fund with experienced and specialized management, you the investor are freed from the complexities, worries and time that are required for individual investment property ownership. •  Asset and property diversification. By investing through a fund that aggregates investor monies giving you exposure to a diversified portfolio of investment properties, which allows you to minimize risk and smooth out investment returns.

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THE RIGHT PEOPLE RYAN MOELLER PRINCIPAL

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UNIQUE COMPETITIVE ADVANTAGE We are offering you the investor the opportunity to access not only our unique knowledge and proven proprietary investment model but the opportunity to access our strong expertise in real estate investing and private capital management. We have a proven track record in the real estate asset class, particularly in the singlefamily residential sector investing and sophisticated financial expertise in originating and managing these real-estate assets to institutional standards. We offer you an investment platform with strong and established procedures, operations, and personnel poised to expand and capitalize on this unique opportunity.

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FALL CREEK INCOME FUND LLC www.fallcreekassetmanagement.com support@fallcreekassetmanagement.com

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FALL CREEK VENTURE PLAN  

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