Deal House Capital Fund 1, LLC
Alternative Real Estate Investment in New York and Connecticut
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Deal House Capital Fund 1, LLC
506(c) Offering Platform
INTRODUCTION TO OUR COMPANY
Deal House Capital Fund I, LLC (the “Company” or the “Fund”) was formed to acquire, renovate and resell distressed single-family residential properties primarily located in New York and Connecticut. The Fund intends to deploy a variety of strategies to maximize total return on capital, while minimizing risk. The Fund is intended to provide an investment structure with low front-end costs where the Manager (as defined below) is compensated only after a preferred return is distributed to investors. The Fund expects to provide an opportunity for passive investors to realize returns more favorable than conventional investment options. The Fund will benefit from the Manager’s professional management staff and ability to proactively source investment opportunities through strategic relationships with industry experts, real estate professionals, and aggressive multi channel marketing focusing on direct mail campaigns and search engine optimization.
The Fund is managed by DH Partners LLC (“DHP” or the “Manager”), a New York based experienced real-estate firm which has acquired, rehabbed and sold over $25 Million in properties through more than 150 separate real estate transactions. DHP is managed by two highly experienced real estate and finance professionals with a combined 30 years of experience in the New York and Connecticut real estate market.
The Fund’s focus is creating and maintaining investor wealth through local alternative real estate investment strategies. The management team’s collective abilities provide an advantage over investing individually. The Fund’s ability to invest with aggregated capital also provides an advantage over investing individually.
Over the years, the Fund Manager has seen extreme market fluctuations; because of this, the Fund Manager is always researching market trends to develop strategies allowing the Fund to mitigate this volatility and reduce its negative effects on investors. In the opinion of the Fund Manager, this experience has also better positioned the Fund to take advantage of opportunities presented in such times of uncertainty.
Investors’ capital will be secured by high quality real estate assets while earning current income.
Deal House Capital Fund 1, LLC
506(c) Offering Platform
summary of operations
The Fund will utilize a dual strategy of rehabbing and wholesaling properties to increase investor returns while lowering risk. The Manager expects the Fund to perform 24 wholesale transactions in year 1 and 28 wholesale transactions in year 2. The Manager also expects the Fund to perform 7 rehabs in year 1 and 9 rehabs in year 2.
The Fund’s rehab strategy will follow a three step process:
- Identify: The Manager will identify single-family residential properties with some form of distress or an opportunity for the Fund to add value.
- Improve: The Fund will improve such properties through cost-effective physical upgrades designed to appeal to the largest buyer demographic.
- Sell: The Fund will sell the improved properties for an anticipated profit while maximizing the community and financial impact of its investment.
The Fund will use the equity raised through this offering to acquire properties and fund rehabs. The Fund will rely on the Manager’s expertise to acquire distressed assets utilizing proven marketing techniques. The Manager will project manage the rehab of properties acquired by the Fund utilizing experienced general contractors. The Manager will sell properties acquired by the Fund utilizing experienced real estate professionals in the local markets.
The Fund’s wholesale strategy with follow a three step process:
- Identify: The Manager will identify single-family residential properties with some form of distress or an opportunity for an investor to add value.
- Improve: The Fund may improve such properties through minor physical upgrades designed to appeal to other investors.
- Sell: The Manager will sell the property for an anticipated profit to such other investors.
The Fund will use the equity raised through this offering to acquire such distressed properties and in certain instances fund “light” or incomplete rehabs prior to selling the properties to other investors. The Manager will acquire distressed assets utilizing proven marketing techniques. The Manager will use a “double close” technique when disposing of wholesale assets. The Manager will sell properties acquired by the Fund utilizing experienced real estate professionals in the local markets.
Fund TermThe Fund is expected to terminate at the end of two (2) years. As the Fund Term approaches, the Fund Managers will cease executing new investments so the Fund can exit from investments and return to an all cash position. At such time, remaining proceeds fro the winding up of Fund activities will be distributed to Class A Members in accordance with the Operating Agreement.
Related Party DisclosureIn addition to the Manager Compensation provided in this Memorandum and the Fund’s Operating Agreement, from time to time, the Company may enter into certain transactions with the Manager or a related party for the provision of additional services to the Company at reasonable rates, including, without limitation,
- (i) services related to the acquisition, disposition, financing, or refinancing of a Property;
- (ii) pre-development, development and/or construction management services;
- (iii) property management services;
- (iv) brokerage;
- (v) leasing services; and/or
- (vi) providing certain administrative services for the Company.
Investor wealth is further preserved as investments are spread among multiple properties versus an individual note that is only secured by one property.
Deal House Capital Fund 1, LLC
506(c) Offering Platform
Company Management Team
The Company is currently managed by seasoned business and sector professionals dedicated to the success of the Company and efficient execution of its planned operations.
DH Partners, LLC
Fund Manager
DH Partners, LLC (“DH Partners,” or the “Manager”) was formed under the laws of the state of New York on June 14, 2018. The Managing Members of DH Partners are Larry Friedman and Francis Sanchez.
The Manager is an experienced real-estate firm which has acquired, rehabbed and sold over $25 Million in properties through more than 150 separate real estate transactions. The Manager’s principals have over 30 years of combined real estate investment and management experience. The Manger engages in the purchase, renovation, resale and rental of properties which are either in general distress or fundamentally undervalued. The Manger uses its expertise to acquire, finance, manage and resell properties in diverse geographical areas including New York and Connecticut.
Larry Friedman
Principal
Mr. Friedman has been involved in acquiring and repositioning over $25 million worth of single family residential assets primarily in New York and Connecticut. He is currently a fund manager for SDF Capital Fund 1, which is a residential fix and flip fund. This fund is on track to exceed expectations. Mr. Friedman is also a Co-Founder of SDF Capital, a company focused on acquiring and repositioning distressed single family assets. He is responsible for financially structuring property acquisitions as well as construction management.
Prior to co-founding SDF Capital, Larry was a Principal and Co-founder of one of New York City’s largest real estate brokerage companies. He was responsible for building the company from a startup to one with over 500 agents and ranked within the Top 10 real estate brokerage firms in NYC. Prior to being involved in the real estate industry, Mr. Friedman worked in equity research for various top investment banking firms such as Paine Webber, UBS Warburg and Bear Sterns. He also served as an accountant in the financial services group at Ernst & Young.
Larry holds a Bachelor of Science degree in Accounting from the State University at Albany. He is also a Certified Public Accountant and passed Levels I and II of the CFA exam.
A native New Yorker originally from Flushing, Queens, Larry has lived in Manhattan since 1999 and currently resides on the Upper East Side with his wife and three children.
Francis Sanchez
Principal
Mr. Sanchez has acquired in excess of over 150 single family homes primarily in New York and Connecticut. He possesses a keen understanding of the acquisition and underwriting process for residential real estate. He is currently a fund manager for SDF Capital Fund 1, a residential fix and flip fund. The fund is on track to exceed expectations.
Mr. Sanchez is also a Co-Founder of SDF Capital, a company focused on acquiring and repositioning single family assets. Mr. Sanchez is responsible for all property acquisitions, dispositions and overall investment strategy. He has an extensive background in residential brokerage and investment sales. Prior to co-founding SDF Capital, Mr. Sanchez was an owner and Managing Director at one of the largest real estate brokerage firms in Manhattan. He was responsible for overseeing the companies’ three largest offices as well as managing and training over 1,000 sales agents. Frank has been involved in over 10,000 real estate transactions throughout his tenure. He has an intricate knowledge of the residential market as well deep experience working with individual sellers and institutional landlords.
Mr. Sanchez earned a Bachelor of Science degree in Marketing from Iona College in New Rochelle, NY. He currently resides in New Rochelle, NY with his wife and three children.
The management team believes that asset based lending is a much safer, straightforward vehicle for producing secured outsized returns on a consistent basis without being negatively impacted by gyrations in the current sales market.
Deal House Capital Fund 1, LLC
506(c) Offering Platform
terms of the offering
$3,000,000
Minimum Offering: $100,000
Minimum Subscription: $50,000 (50,000 Units)
Deal House Capital Fund I LLC (the “Company” or the “Fund”), a New York Company, is offering a minimum of 100,000 and a maximum of 3,000,000 Class A Membership Units for $1.00 per unit. Upon completion of the Offering between 100,000 and 3,000,000 Class A Membership Units will be issued. The following is a summary of the cash flow distributions under the Fund’s Operating Agreement, investors should review the Operating Agreement for specifics terms. The Fund projects that investors will realize a net internal rate of return (IRR) of 11.5% (based on a two year hold period). The minimum investment in the fund is $50,000 (subject to the discretion of the Manager to accept a lower minimum investment).
During the life of the Fund, the Manager will make distributions as follows:
- (a) First to pay a cumulative non-compounding Preferred Return of ten percent (10%) per annum (the “Preferred Return”) on the unreturned capital for each member who made a capital contribution to the Company (pro-rata based on the amount of the unpaid Preferred Return); and (b) an additional performance based distribution as follows:
- 1% per annum (not compounded) (the “Performance Based Return”) on the unreturned capital of each member who made a capital contribution to the Company provided that the Net Income before distributions in year 1 or year 2 is greater than $350,000 or
- 2% per annum (not compounded) (the “Performance Based Return”) on the unreturned capital of each member who made a capital contribution to the Company provided that the Net Income before distributions in year 1 or year 2 is greater than $500,000.
The Fund will have a term of two years. After that period, the Manager will wind up investment operations and make distributions as follows:
- (a) First to return the capital contributions made by members;
- (b) Then to payment of any unpaid Preferred Return on the unreturned capital for each member who made a capital contribution to the Company (pro-rata based on the amount of the unpaid Preferred Return); and
- (c) Then distribute any remaining capital to the Manager.
CONTACT US
Please complete the contact form and we will get back to you about any questions you have about our offering.
Deal House Capital Fund I, LLC
560 Fenimore Road, #2
Mamaroneck, NY 10543
larry@sdfcapitalllc.com
(914) 730-2330
Deal House Capital Fund 1, LLC
506(c) Offering Platform
so much more than what you see
The Deal House Capital Fund 1, LLC 506(c) Investor Portal provides the opportunity to learn about our investment opportunity. Once registered, you will have:
- Access to the Private Placement Memorandum, which outlines our company and gives greater detail about our offering;
- Access to our SEC filing;
- View real time offering metrics of how far along we are in the offering process;
- View a timeline of your progress in the investment process;
- View company contact information and send email directly to the administrator;
- Easily upgrade your account with the click of a button.
Once your account is upgraded you will have additional access including:
- The ability to complete the subscription documents via download or online;
- Upload of subscription and accredidation documents as applicable;
- Specific process information for investing and instructions on transfer of investment funds;
- Access to company shared quarterly / annual reports, Financial documents and Supporting Documents;
- Access to the Asset Portfolio as applicable;
- Access to News articles written by the company;
- Access to documents associated with your account.