A Limited Liability Company, "Kerman 78", was formed
for the purpose of acquiring certain real property located in Kerman,
Fresno County, California, located 15 minutes from Downtown Fresno and the
subsequent development, construction, and sale of single family homes
thereon.
The equity partner, "Kerman 78"LLC., will own 37.5% of
the project in conjunction with Kerman Bordeaux, LLC. (The Builder) and
others will own the other 62.5%. The company is being formed to develop,
build, and sell 78 homes. An investor has an equity stake in this project
in the form of a capital account based on the amount of each investment as
a percentage of 37.5% of the total.
Total investment was $1,245,000. The projected cost of
the project is $21,833,821, and the projected sales are $28,550,000
without additions or upgrades. Financing for the project will come from
Institutional sources. The anticipated sale prices of the homes will be
from $250,000 - $350,000.
No interest is paid on the capital contribution. It is
anticipated that investors should begin receiving a return of their
capital in stages within eight months of the start of the project, and
have it fully returned within 18 – 24 months. Distribution of the profits
from the sale of the homes, to which Equity Members will be entitled, will
be paid as each home closes after payment of all construction and
development costs, and less a reserve for property taxes and warranty
expenses. Net profit shall be allocated to the Members in proportion to
their Percentage Interests.
As a Member of the Limited Liability Company, no Member
shall be personally liable for any debt, obligation, or liability or
obligation 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.
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