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For deal financials, please contact your licensed investment specialist. Please note: Per FINRA Rule 2210, we are no longer permitted to enclose IRR estimates, as of July 2020.

Investment Highlights

1. Unique deal structure

- Preferred Equity Position in the capital stack: for the repayment of any potential profits earned from the investment relative to other equity investors.

- Income generating from year one: Equity financing for this development project will generate cash flow for iintoo equity investors at an estimated NOI of 5.15%, annually.


2. Well-established and experienced sponsor

The sponsor has an extensive track record in Texas with both development and multifamily deals. This will be our ninth deal with the sponsor. See page 2 for more details. Furthermore, iintoo has a strategic relationship with the sponsor since 2019. As part of its acquisition of RealtyShares, iintoo and the sponsor formed a joint venture to manage former RealtyShares’ investments that were still active in its portfolio.


3. High-end development project catering to working professionals

The asset’s modern and efficient design, high-quality finishes, and premium amenities will cater to tenants looking for suburban rental options that can match the comfort and convenience of private homeownership. Salado has attracted a well-educated, white-collar demographic, and many Salado residents are commuters who are eager to escape the climbing home prices of larger neighboring cities.*


* Source: 24/7 Wall St


Market Overview

Salado, Texas

Located in southern Bell County, Salado has become a booming tourist destination and a garnered a reputation for being a preferred home of well-educated white-collar professionals who are eager to escape the climbing home prices of larger neighboring cities. Known for its artistic flair, Salado is home to several distilleries, bed and breakfasts, festivals, galleries, and wineries. Most of the shopping and restaurants are independently owned, validating Salado’s reputation as an artistic haven. Salado’s esteemed reputation has garnered the collection of very intellectual and highly skilled residents.

Additionally, Salado’s public school system is a top-ranked district under Texas’ FAST educational accountability system, and Salado High School’s Academic UIL Team has taken home eight state championships.* Median household income in the area is $77,727, and Salado is ideal for those who work in larger cities but want to live in a more affordable, family friendly neighborhood.* Nearly three fourths of workers in Salado commute to jobs outside of Salado, and the average commuting time for Salado residents is nearly 20% shorter than the national average.**


Salado Multifamily Market

Both vacancy and multifamily market growth in the areas surrounding Salado have been trending favorably in recent years despite the pandemic.*** According to BBG, a commercial real estate appraiser, Salado’s demand for apartment rentals will continue to outstrip demand over the next three years, and on average new properties in the town filled 18 units per month during their lease-up period.** By contrast, the Sponsor for this deal is conservatively projecting an absorption rate of 12 units per month for the project’s lease-up period.*




* Source: Sponsor

** Source: 24/7 Wall St

*** Source: BBG


Sponsor Track Record

is is iintoo’s 9th deal with the Sponsor and 2nd development deal – the first being a ground-up development of a 120-unit multifamily complex in Kerrville Texas.

Construction for our Kerrville project was recently completed, and a Certificate of Occupancy was received for the project’s 9 buildings at the end of 2020. The asset is currently being stabilized, with rent collections in-line with business plan projections, and the asset is expected to be sold in 2021. In addition to the Kerrville project, iintoo has also fully exited two deals with the Sponsor in San Angelo & Big Spring, Texas, with two additional deals expected to exit soon, and our active deals are generally performing in-line with business plan projections.



Capital Stack

Deal Structure

Legal Structure

Ownership

The iintoo investor entity is expected to hold a 36.2% stake in the special purpose entity that owns the asset through a wholly-owned subsidiary.

The principal of the Sponsor provides a personal undertaking of the obligations of the Sponsor under the JV agreement. iintoo will oversee and monitor the project until its completion and provide investors with quarterly progress reports. See Private Placement Memorandum for further details.

Estimated Project Cashflow from Operations

Estimated Waterfall Distribution at Exit

Estimated Cash Distributions

Pursuant to the deal structure and payment waterfall, after the payment of IRR returns as specified in the JV Agreement, the division of all anticipated profits from the project upon sale or refinance will be 100% to the iintoo investor entity until returning a 17.0% IRR on its closing capital contribution.

Buyout

Starting at 24 months until 36 months from the project start date, the Sponsor is entitled to a buy-out right that should amount to a cash sum that represents a return equal to the projected IRR of 17.0% plus 3% of their capital contribution.

* When we refer to “Equity Protection” we are referring to an arrangement where iintoo epiic GP LLC, the general partner of each covered issuer (“Covered Issuer”), promises that, even in the event the underlying project is not profitable or records a loss, the investor in the Covered Issuer shall receive a specified amount equal to the original principal investment he/she/it provided (less other amounts already received by such individual investor during the course of the investment) subject, however, to significant limitations including but not limited to repayments for losses in the Covered Issuer are only made up to a maximum amount of funds available from the retention account and the policy (where such policy limit may be less than the total amount invested), repayments are on a first come, first serve basis, and losses are aggregated across Covered Issuers subject to the same retention account and policy. Iintoo epiic GP LLC, and not investors, is a party to the policy with Everest Insurance®. As a result, investors have no direct legal rights under the policy. In addition, beyond use of the Equity Protection proceeds from the retention account and the policy, neither iintoo epiic GP LLC nor the Covered Issuer has any obligations to indemnify investors for losses. For more information, please see “Business of the Company—Equity Protection” and “Risk Factors—Risks related to the Equity Protection” in any of our issuers’ private placement memoranda.

About iintoo

The above may contain forward-looking statements. Actual results and trends in the future may differ materially from those suggested or implied by any forward-looking statements in the above depending on a variety of factors. All written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the previous statements. Except for any obligations to disclose information as required by applicable laws, we undertake no obligation to update any information contained above or to publicly release the results of any revisions to any statements that may be made to reflect events or circumstances that occur, or that we become aware of, after the date of the publishing of the above.

Private placements of securities accessible through the iintoo™ social network real-estate investment platform (the “Platform”) are intended for accredited investors. Such private placements of securities have not been registered under applicable securities laws, are restricted and not publicly traded, may be subject to holding period requirements, and are intended for investors who do not need a liquid investment. These investments are not bank deposits (and thus are not insured by the FDIC or by any other federal governmental agency), are not guaranteed by and iintoo Investments Ltd. (“iintoo”) or any third party working on our behalf, and may lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the Platform. Investors may lose heir entire investment.


Equity securities are offered through Dalmore Group LLC. ("Dalmore"), a registered broker-dealer and member of FINRA (www.finra.org), member of SIPC (www.sipc.org). Any real estate investment accessible though the Platform involves substantial risks. Any projections as herein stated, are hypothetical in nature, are based on methodology deployed regarding the likelihood of various investment outcomes, do not reflect actual investment results and are not guarantees of future results, and iintoo makes no representations or warranties as to the accuracy of such information as herein stated and accepts no liability whatsoever.

Investors should always conduct their own due diligence, not rely on the financial assumptions or estimates displayed herein, and should always consult with a reputable financial advisor, attorney, accountant, and any other professional that can help them to understand and assess the risks associated with any investment opportunity. Any investment involves substantial risks. Major risks, including related to the Equity Protection and/or the potential loss of some or all principal, are disclosed in the private placement memorandum for each applicable investment.

Neither iintoo nor its affiliates nor Dalmore Group LLC makes investment recommendations nor do they provide investment advisory services, and no communication, including herein or through the Platform or in any other medium should be construed as such. iintoo, its employees and affiliates are not insurers or insurance brokers, and do not offer insurance services, advice or information to new or existing investors.

Insurance is provided to Iintoo epiic GP LLC (and placed through Cobbs Allen, a licensed insurance intermediary) by Everest Insurance®, subject to all of the terms and conditions of the applicable insurance policy, to support iintoo’s equity protection undertaking as further specified and described in the confidential offering materials of iintoo. Everest Insurance® is not a sponsor or promoter of any offering described herein.

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Everest Re Group, Ltd. is a Bermuda holding company that operates through the following subsidiaries: Everest Reinsurance Company provides reinsurance to property and casualty insurers in both the U.S. and international markets. Everest Reinsurance (Bermuda), Ltd., including through its branch in the United Kingdom, provides reinsurance and insurance to worldwide property and casualty markets and reinsurance to life insurers. Everest Reinsurance Company (Ireland), provides reinsurance to non-life insurers in Europe. Everest Insurance® refers to the primary insurance operations of Everest Re Group, Ltd., and its affiliated companies which offer property, casualty and specialty lines insurance on both an admitted and non-admitted basis in the U.S. and internationally. The Company also operates within the Lloyd's insurance market through Syndicate 2786. In addition, through Mt. Logan Re, Ltd., the Company manages segregated accounts, capitalized by the Company and third party investors that provide reinsurance for property catastrophe risks. Additional information on Everest Re Group companies can be found at the Group’s web site at www.everestre.com