Paradise Place -147 Home Development
undefined Fuqua Street Houston, TX 77048
Paradise Place Development, 147 home development South Houston Texas
DMAC Capital Funding,LLC (GP) along with the Paradise Place Developers, LLC (LP) is excited to acquire and Develop this 33.88-acre tract of land. The project known tentatively as Paradise Place, will consist of Contemporary styled homes with common green space and water featured/detention, Pool and Pavillion. Located in South side of Houston Texas this development provides residents with access to the Downtown, medical center, Hobby airport, The port of Houston and much more. It is comprised of 147 homes on 50 and 60 foot lots. The property will have a neighborhood pool with pravillion and a large Park and small dog park.
We are seeking equity partners(Accredited Investors) to contribute $6,000,000. (6 million) to the land acquistion and development. We have the a third party lender who will finance 100% of the constrction cost with the purchase of the land. We currently have the 33 acre lot under contract. The land purchase price is $2,839,000.00 million( approximately $85k an acre), the market bares $110k an acre. The seller will carry the note on the land with 30% down however we want to totally take out the seller. Price point of the homes will be selling for $225k to $350k,(1500 sqft to 2200 Sqft). There is a lot of new home development in the area and the fact that Houston is low on inventory makes this development prime for success time is of the essence.
The financial model includes acquistion and development cost for 30 to 36 months, whereby all equity and/or mezzanine capital is returned to investors. The investment is expected to distibute a cumulative, non compounding preferred annual return. The acquistion, building, operation and disposition of each home projected to produce an internal rat of return (IRR) of approximately 116% and a cash multiple of approximately 2.3x to equity investors over a 24 to 30 month investment period. This opportunity gives investors an opportunity to double their money.
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20/80 Waterfall Participation
DMAC Capital Funding, LLC
About DMAC Capital Funding, LLC is a Real Estate investment company that buys and invest in income producing assets, such as origination of hard money bridge loans, multifamily ground up or existing assets. Residential development. The company is ran by seasoned real estate professionals with a combined 50 years of experience in Development, construction, sales, investing and finance. Begining with the President Danny Mckinney who has over 30 years. DMAC Capital Funding, LLC manages a Mortgage pool Fund (DMAC CAP FUND I) used to orignate and close Mortgage Bridge loans for small balance income producing Multifamily and residential property. DMAC Capital Funding, LLC (GP) has partnered with the Paradise Place Developers, LLC (LP) to develop and sale 147 homes on the 33 acre tract in this proposal.
Daniel Mckinney, J.D.
• Mckinney has been an entrepreneur for over 25 year in the area of commercial and residential real estate sales, finance, construction and development. Mckinney has started and successfully ran several businesses. In 1996 to present, Mckinney was the founder, President of McKinney Real Estate & Investment Co, where he is the Broker/Owner and managed sales team of agents that listed and/or sold over 350 million in residential and commercial real estate over the last 26 years. Daniel has personally bought over 20 million in commercial and residential real estate. Mckinney has bought and managed over 300 apartments units.
• Also in 1996, Mckinney formed and is currently President of Diversified Home Mortgage, Inc. License NMLS #1483210, a lending division of Mckinney Real Estate & Investment Co. Mckinney and his lending team of loan originators managed, originated and closed over 350 million dollars in residential, commercial and constructions mortgage loans over a 25-year period. As a licensed mortgage Banker/Broker and correspondent lender, Daniel and his team are a decorated top producer and originator for companies such as Carrington, A & D Mortgage and Franklin Bank. Daniel formally managed a warehouse line of 2 million with Franklin Bank.
• In 2003 to 2007 Daniel formed Momentum Home Builders LLC where he managed and supervised Residential and commercial construction and sales. Daniel designed, constructed and sold several residential homes, as well as custom homes in Houston and surrounding areas. Mckinney Currently develops and builds with his current company DMAC Capital Funding, LLC. He has projects currently under construction. DMAC Capital Funding, manages a small mortgage pool fund, DMAC CAP FUND I which is a REG D Fund to provide bridge lending for Small Balance income producing commercial real estate. DMAC Capital Funding also is launching other funds for real estate income producing projects and opportunities.
• Mckinney currently invests in distressed commercial and residential properties to, wholesale as well as fix and flip. Mckinney manages $2.000,000 in private funds from his list of private lenders. Those funds as used to purchase single family homes to rehab and resale. Mckinney provides his clients on an average 15 percent return on their money. Mckinney also is a commercial private money broker. Providing Bridge lending for commercial income producing properties starting at $2 million to $50 million. McKinney holds a Juris Doctorate degree in Law from Texas Southern University-Thurgood Marshall School of Law 96’, and BS in Business Finance from Huston-Tillotson University 88’. Former Executive board member of Houston Real Estate Association. Daniel has been a member of the National Association, Texas Association and Houston Association of Realtors for 26 years.
Summary of Analysis
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undefined Fuqua Street
Houston, TX 77048
Houston Home Sales
Single-family home sales rose 1.2 percent in February with 6,049 units sold across the greater Houston area compared to 5,979 a year earlier. Strong sales volume among homes at the high end of the market pushed pricing to record highs. The single-family home average price climbed 16.2 percent to $349,963 while the median price rose 12.6 percent to $275,900.
76 New Home sales within the last 6 months in 77048 zip code where the property is located.
Develop, Build and sale.
DMAC CAPITAL FUNDING, LLC and its Limited Partnership(Paradise Place Developers LLC) and affliates will Develop the 33 acre subdivision. Beginning by Replotting for the 147 home sitting on 50X100 and 60x100 sqft lots. We will develop each lots and prepare it for a single family home. We will build the 147 homes, detention, pool and pavillion in the neighborhood Known as Paradise Place.
Sales will take place at market and above market prices. The homes will sale between 225k to 325k. Mostly 3 or 4 bedrooms, 2 to 2.5 baths and 2 car garages. This process will take approximately 2.5 years and closing out within 36 months where all investors will get there initial investment and returns are distributed.
Frequently Asked Questions
Frequently Asked Questions
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