M Ebers
Minneapolis, MN (USA)
Role(s):
Founder/Owner/Principal
Fenris Direct Ltd.
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Startup
Location:
Minneapolis
Industry:
Real Estate
Year Founded:
2010
Number Employees:
1-10 people
Business Stage:
Growth (not profitable)
Entity Type:
"S" Corporation
Description:
I've started a company to initially acquire high CAP rate, high cash flow apartment buildings. In the current market, there are many deals out there with fantastic numbers offering immediate cash flow and growth opportunities. I'm looking for either angel investment or standard, "straight" debt solutions. With a relatively conservative growth strategy, a return of 10x in 3-5 years is quite possible. After that time frame, I project the residential real estate market will become more competitive and such high cash-flowing options will not be as plentiful, but monthly net incomes should have built to the $250k-500k range. As these deals become more scarce, the value of our properties will go up, thus we will be able to capitalize on appreciation. If the Angel wishes to continue holding for such a steady income, that would be welcomed. Otherwise, an exit at the 10x return range should still be relatively quick and easy. Obvious exit possibilities could include a steady purchase of shares back from the angel until all shares are gone, using built up reserve funds for purchasing the angel's shares, selling assets which have appreciated in that time, or any combination.
While I'm welcoming angel investment, it should be noted that we should have a good relationship with each other. I will likely seek strategic advice from the angel from time to time, and business partners should share a general vision and strategy for the company. I will be fully committed to the success of this company, and I would expect you would be fully committed to return on your investment. With such strong desires to succeed, strong opinions often form. If the partners are spending substantial amount of energy fighting each other, the business is not likely to succeed.
To be clear, I'm not looking for a complete "dictatorship" when it comes to this partnership. Quite the contrary as I very much would welcome the input, advice, and guidance of a seasoned investor. I would just like to be up-front that I will refuse funding if I don't think the combination of our personalities is constructive to the business.
I look forward to answering any questions. There are very real opportunities out there, and the business should be positive cash-flow within the first 60 days of investment. While I believe there will be substantial opportunities in other areas of real estate coming soon, I believe we should focus on the presently available opportunities and make sure they're running in full force before expanding outward.