We have established "FAI -
Corcoran, LLC.” for the purpose of acquiring 45 lots in Corcoran, Ca.
And building 45 homes. The subject property is located in southwest
Corcoran. The area is a mix of commercial residential, and agricultural
properties. The city has a significant housing deficit, with commuters
coming into town to work, and no housing available. There is easy access
to State Highway 99 and 43, major commute links to Fresno and
Bakersfield. The city is pro-growth and extremely supportive of this
project. This is one of the early new subdivisions in the city, and the
second one for us in this city.
This property consists of
approximately 45 lots. It is zoned R1 (residential single family homes.)
The property has an approved tentative map and will be developed with 45
entry-level single-family homes. The developer is an extremely
experienced builder and one we worked with in the past. Home prices are projected
to range from $279,000 to $299,000, (18oo sq. ft. - 1900 sq. ft.) and
recent studies show that a couple, each making $11.00/per hour can
qualify for one of our homes. These prices are base prices and do not
reflect upgrades or lot premiums,
“FAI – 45 Corcoran, LLC” owns 35% of the total project. Investors have
contributed $1,900,000 in funding to acquire the land and cover off-site
improvements. Our pro-forma projects a conservative profit of $807,699
in addition to the return of principle, resulting in an overall return
on investment of 44.02% and an annual rate of return of 22.01% over 24
months. Of course, if we are able to begin disbursing funds earlier, the
rate of return will rise as well.
As a member of this
Limited Liability Company, no member shall be personally liable for any
debt, obligation, or liability of the Company, whether that liability or
obligation arises in contract, tort, or otherwise.
If at any time you have any questions regarding the
project, please call Lee Kauftheil at 800-689-8323, Ron Kahn at 650-279-0366, or Greg Meister at
650-400-5599.
