Al Agodio
Bethesda, MD (USA)
Role(s):
C-Level Executive (CEO, CFO, etc.)
AORE Real Estate Investments Fund I-A
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Startup
Location:
Bethesda
Industry:
Real Estate
Year Founded:
2013
Number Employees:
1-10 people
Business Stage:
Creation/Idea
Entity Type:
"C" Corporation
Description:
AORE Real Estate Investments Fund I-A, L.P. ("Fund I-A") is a new private equity fund specializing in the purchase, rehabilitation, management and sale of residential real estate-related investments in middle class neighborhoods of Baltimore City and County. Fund I-A was formed by the principals of AORE, a firm that since its predecessor company’s founding in 2005 has achieved outsized gross investment returns of 64.55% and an average Internal Rate of Return (“IRR”) of 93.97% through its 20 principal investments in the Baltimore City and County residential real estate market. AORE is confident said investment strategy can be replicated in Fund I-A, thereby producing superior risk-adjusted returns for Fund I-A Limited Partners. AORE has set a target Internal Rate of Return of 15% for Fund I-A.
Fund I-A is managed by its general partner, AORE Group I-A, LLC (the “General Partner”). The General Partner is owned and managed by Al Agodio, Ludo Agodio, Opeyemi Oyekanmi, Raffy Ekhsigian, individuals that collectively have over five decades of principal real estate investment experience with AORE, its predecessor company and other companies.
AORE research has discovered over 9,000 potential residential properties in nine undervalued and emerging Baltimore City and County residential neighborhoods (i.e., zip codes) with moderate to high median income levels that match the Company’s strategy to purchase, rehabilitate, manage and harvest real estate assets. These properties are currently owned by commercial banks, the Federal Deposit Insurance Corporation (FDIC), the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), mortgage companies, real estate companies and individual investors and can be acquired individually or in bulk for 30% to 70% below their estimated 2007 appraised values, via foreclosure proceedings, short sales, auctions or one-on-one negotiations. AORE believes these nine neighborhoods offer significant opportunity to generate above market investor returns. Each neighborhood offers close proximity to downtown Baltimore, access to public transportation and other amenities that are desired by homeowners and renters.
AORE’s exit strategy for Fund I-A’s residential real estate properties entails the sale of assets either individually or in bulk to REIT’s, real estate private equity firms, asset management firms, institutions, individual investors and individual homeowners. Some of the REIT’s that we are currently having discussions and which could be eventual buyers of our portfolios are American Residential Properties ((URL removed)) and Silver Bay Trust co ((URL removed)). AORE expects to liquidate Fund I-A and return to investors their invested capital, plus a minimum annualized return of eight percent (8%) on their invested capital. The anticipated term of Fund I-A will be five (5) years.
We have already lined up some investors for Fund I-A but in order to get the first investor to cut a $500,000 check, they want us to provide a bank guaranty from a top US Bank (Bank of America, Wells Fargo, PNC, Citibank, SunTrust etc…). A bank guaranty is a letter issued by a bank, that states that should the first investor in Fund I-A loses any principal while investing with us over the next 5-7 years, the bank would reimburse them their funds. In order for a bank to issue such a guaranty to someone, they usually require that you have that much in liquid assets (IRA, Money market account, investment accounts etc...). We currently have no liquid assets at this point so our bank won’t issue a bank guaranty on our behalf.
With that said, we are currently looking for a partner to come on board and help us obtain that bank guaranty, we are currently having talks with folks we believe can help. We are looking to raise up to $5 Million to do $90 Million worth of deals in the next 5 years. Once we bring the first $500k investor in, we would raise the remaining $4,5 million pretty fast, we have institutions lined up as well but they won’t invest until we get our first investor.