Paradise Place -147 Home Development

undefined Fuqua Street  Houston, TX 77048

Min. Invest
$100,000
Target Hold
36 mos.
Potential Yield
30%
Progress - 0% Pledged
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Projections

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 landWe 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. 

Form of Security Preferred Equity
20/80 Waterfall Participation
Term 36 Months
Offering Size $6,000,000
Target IRR 38%
Equity Multiple 2.3x

Summary of Analysis

 

Property Summary



 

Address Property Type Property Sq. Feet Bedrooms Bathrooms Year Built Units
undefined Fuqua Street
Houston, TX 77048
Multiunit Residential 2500.00 4 3 2021 147

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

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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).

June 19 2021

Confidential Offering Memorandum: DMAC Capital Funding, 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.