Mitchell Menik
Las Vegas, NV (USA)
Role(s):
Founder/Owner/Principal
Arkad Investments, LLC
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Startup
Location:
Las Vegas
Industry:
Real Estate
Year Founded:
2007
Number Employees:
1-10 people
Description:
Arkad Investments, LLC (Arkad) will target bulk purchases of REO properties in the Las Vegas area from banks and real estate companies at a reduced price of 45-60 cents on the dollar.
All real estate analysts agree that the resale of REO, or bank owned properties, is a limited window of opportunity and, while they don’t agree on just when the market will bottom out they all agree that it will. Their analysis suggests this could occur as early as the end of 2008 to as late as mid 2010.
In light of these projections, Arkad intends to move as quickly and aggressively as possible on this, as well as future projects.
We are looking to raise $11,382,592 million dollars in investor capital for this project. A 40% equity share in the project is offered along with a 6% return on capital, with all proceeds from sales, minus operating costs, going to repay the initial capital. The Return on Investment is projected to be 35%.
Management and Equity Partner share a 60/40 split of 2.5% of the profits beginning with the third month. Also, we begin to pay back the principal in six equal payments beginning with the third month. Then, beginning with the seventh month, we use $6 million of our cash plus borrow another $5 million of the revolving capital to make another purchase. At the end of the year Management and Equity Partner have over $6.3 million cash to split up or use for another round of purchase and sales. The equity partner also benefits from a 34% Return on Investment.