Test Project

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Opportunity Fund

Cash Flow Capital

About Documents
32%
952 days Time Left
$1,000,000 Min. Raise
$5,000,000 Max. Raise
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Offering Documents

About


Cash Flow Capital

Cash Flow Capital Key West, LLC, a Real Estate Opportunity Fund, seeks to capitalize on undervalued and value-add residential properties in Key West, Florida.

As experienced operators and current residents of Key West, we intend to solve market inefficiencies in the Key West rental market and provide investors a predictable return without being chained to only one particular property. Such flexibility provides investors with profits generated from both portfolio growth through appreciation and passive income through cash flow. By diversifying returns over more than one asset, the overall risk is reduced because more than one income-generating asset is owned by the fund.

The Fund is targeting an initial offering of $5 million in capital commitments from accredited investors for acquiring, repositioning, managing, operating, and disposing of real property.

The fund is seeking accredited investors, to acquire, stabilize and grow the equity of cash-flowing assets for the financial benefit of the investors. Investors are entitled to quarterly distributions of the fund's net cash flow. Additionally, upon closing of the fund, investors are entitled to 70% of the fund's total equity. The remaining 30% will be distributed to the General Partners.

The Fund is positioned to provide investors a consistent, passive return through diversification in multiple types of assets in the Key West Market.

Investors will be Limited Partners, owning a 70% share of:
1. high-income assets i.e. value-added short-term vacation rentals, in addition to
2. balanced risk/income assets such as long-term apartment rentals.

Our wealth strategy can be explained in phases:

Our criteria will involve a focus on assets in the Key West Historic District(s) that are in need of primarily cosmetic renovation and removal of functional obsolescence where applicable. The second level criteria is a focus on assets that are financially underperforming as determined during our proprietary due diligence phase.

In this phase, we will begin the process of beginning our property improvement plan (PIP). During this phase, the occupancy of the asset(s) will be intentionally reduced to allow for construction and repairs or improvements as determined necessary by the management team at acquisition. As individual units are renovated to completion and permits closed, those renovated units will be brought online as available rentable spaces as soon as practicable. The timeline of renovations will be specific to each asset and will fluctuate due to many factors such as labor supply, permit timelines, and city and county permitting procedures. In all cases, the stabilization phase time frame will be targeted to be less than 18 months from acquisition to reaching target profitability.

During this phase, the transition from short-term stabilization management to long-term asset management begins. It is during this time that newly established asset management procedures are implemented, tested, and tweaked to allow for peak efficiency. The permanent operations team will be hired, trained, and tested. In preparation for our next phase, particular attention will be paid to overall monthly and annual operational profitability. It is that "bottom" line number that will allow the fund to dispose of assets at cap rates that yield significant profits for the investors.

In this phase, we begin the process of preparing the asset for sale. Overall market time will be determined by our in-house brokerage team who will seek assistance from a licensed appraiser to determine the fair market value of the asset. The Fund's structure allows for the profits from dispositions to be reinvested into additional assets of increased cash flow. Providing members with compounding passive income and an amplified equity position.

Use of Proceeds

                          SOURCES & USE OF PROCEEDS                        
The following table summarizes the source and use of proceeds from this Offering.
CAPITAL SOURCES & USES
                                                                     Minimum                           Maximum                      
Sources of Capital Capital Amount Capital % Capital Amount Capital %
Gross Proceeds (1) $1,000,000 40.0% $5,000,000 40.0%
Debt Financing (2) $1,500,000 60.0% $7,500,000 60.0%
TOTAL GROSS CAPITALIZATION   $2,500,000 100.0 $12,500,000 100.0%

USE OF PROCEEDS

Offering Expenses (3) $87,815 3.5% $87,815 0.7%
Property Acquisition (4) $2,049,685 82.0% $10,599,685 84.8%
Acquisition Fee (5) $50,000 2.0% $250,000 2.0%
Closing Costs (6) $50,000 2.0% $250,000 2.0%
Lender Fees (7) $75,000 3.0% $250,000 3.0%
Disposition Fee $50,000 2.0% $275,000 2.0%
Third-Party Fees $12,500 0.5% $250,000 0.5%
Working Capital/Reserves (8) $125,000 5.0% $62,500 5.0%
TOTAL USE OF PROCEEDS $2,500,000 100.0% $12,500,000 100.0%

 

(1) The forgoing use of proceeds assumes a minimum sale of 1,000 Class A Units to a Maximum Offering of 5,000 Class A Units in the Amount of $5,000,000.
(2) At Manager's discretion, debt financing may be used in the acquisition of properties.
(3) Offering Expenses are a fixed initial cost.
(4) One or more properties, currently unspecified, may be acquired depending on the number of Units sold, properties available, and debt financing available and determined by the Manager.
(5) The Acquisition fee is 2% of the purchase price of the Property, regardless of leverage.
(6) Closing costs vary based on the purchase price of the Property and other factors outside the control of the Manager
(7) Lender Fees may vary.
(8) The size of Working Capital/REserves is at the discretion of the Manager.

 

The allocation of the use of proceeds among the categories of anticipated expenditures represents management's best estimates based on the current status of the proposed operations, plans, investment objectives, capital requirements, and financial conditions. Future events, including changes in economic or competitive conditions of the business plan or the completion of less than the total Offering, may cause the modification of the above-described allocation of proceeds. The use of proceeds may vary significantly in the event any of the assumptions prove inaccurate. The Company reserves the right to change the allocation of proceeds from the Offering as unanticipated events or opportunities arise.

 

Meet the Cash Flow Capital team

Director of Acquisitions and Managing Partner
Tyler Sheff

Tyler Sheff is a licensed Florida Realtor with Future Home Realty located in Key West, Fl. Over the last two decades Tyler has acquired, renovated, stabilized and sold over 100 properties in multiple states. Tyler used these experiences to develop a team of highly skilled experts in acquisitions, ground-team recruitment and management in the Key West market service area.

Director of Investor Relations and Managing Partner
Michael Marino

Mike started in real estate investing in 2015 buying and converting a residential property to a short-term rental. He now concentrates on small apartment building opportunities in the mountain west. After visiting Key West on many occasions over the years, Mike always knew Key West had the potential to be a real estate investment goldmine. As an engineer, discovery of and finding solutions for inefficiencies is a main area of focus for Mike which makes his involvement in this fund a natural fit.

Director of Project Management
Jill Sheff

Jill brings decades of project management experience to the table from her 25 plus years in the insurance industry. Most recently, prior to her early retirement from corporate America, she worked as a business systems analyst in the medical insurance industry. These roles provided her with hands-on experience in building systems, overseeing project development, problem solving and risk assessment.

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