Webinar Recording

Sumit:

We're really excited to have you here today to discuss 100M Value-add Fund.

We designed this fund after talking to many of our investors who want to invest in great multifamily assets across the Midwest and Southeast. Our fund primarily targets Ohio and Florida, where we have two of our locations, Cleveland, where we're founded, and Miami, Florida, where our headquarters are. One of the things we did is we designed this fund around what investors want, diversification and great assets that are resilient during tough times. After the past eight years, we really love the multifamily segment and have been able to leverage our past history in scattered site, single family residential to extrapolate that to multifamily Value-Add, we have conservatively projected our returns and have always exceeded those.

Steve, would you talk a little bit about our founding and our history and then we'll go in at a high level of what the fun composition is, the classes of investors and the focus of the strategy?

Steve:

Yeah, absolutely. Thanks for the handoff, Sumit.

Welcome, everybody. Really excited to be here with everybody today and can just talk about our journey at Smartland, both personal journey, our investor journeys and just how passionate we really are about what we do here. So in the early stages of this webinar, we're just going to kind of give you a quick synopsis of the economics, our process, our innovation, our history, our track record. So we'll briefly touch on that and we'll kind of dive a little bit deeper.

Sumit mentioned things like… fund strategies, our demographic composition of the fund, and some of the things that we're doing that are all investor centric, focused on what we're all about is having a true partnership among us and our investor partners. Right. And so talking a little bit about our history, we started Smartland back in 2008 as a single family, residential property management, scattered site, residential firm. We went through a lot of hurdles there. We grew quite a large portfolio of scattered site, nearly a thousand plus stores.

We, at some point learned that there are a lot of inefficiencies that we just were able to tackle if we had set a new path forward. And as we reignited this new path in 2015, we also began to layer in things like multifamily investing. And over the years, we've been able to really catapult ourselves not only from a strategic point where we've been just making a lot of strides in the multifamily Value-Add space and also have proved through exits those successes through these new processes that we'll talk about. And that includes renovation, our amenities, technology are fully vertically integrated company. So it kind of gets back to what you mentioned, Sumit, about where were your beginnings historically? What are you doing now? Right.

So, Smartland brings you the whole ecosystem when it comes to investing in real estate or I should say, a private equity real estate firm. Right. So what we have is we have our property management division. We have a brokerage, marketing, leasing, sales, along with construction all under one Smartland umbrella. And so by coupling all of these specialties together and bringing them all under one roof, really what we're able to achieve is amazing returns for our investor partners. Because we look at it from a private equity, let's say, roll up concept.

I think that's a really simple way to look at it, where we're able to strategically purchase multifamily value add, roll it up into our smart land ecosystem and immediately mitigate costs and risks that that these vintage value add properties are either inherently underperforming or have these operational inefficiencies. So today's webinar talking about this one hundred million dollar Value add fund Will kind of couple all of those things and really identify what we do great. And that's provide amazing returns and experiences for our investors and our investor partners throughout the entire lifespan of our relationship.

So now that we've covered that, Sumit do you want to talk about a little bit about maybe our technology and what we do in regards to technology to kind of enhance this not only investor experience, but also resident experience, which I think is something that we haven't touched on?

Sumit:

Yes, absolutely. I think one of the biggest things to touch on is how our founders have a technology background and brought that to real estate. Real estate has been a very stable industry to innovate or be forward thinking, and our approach to that allows us to bring something that our Class A and Class B tenants don't have. So when we're bringing amenities like smart technology, Bluetooth, Bluetooth locks, whether USB outlets, nest thermostats, it really allows us to bring something that is differentiated.

What does that do for us? as a community allows us to attract some of the best tenants and we're really proud about that. Again, giving our tenants what they want and attracting the top five percent of tenants doesn't just help us as a community. It also impacts the type of living standard that these tenants are allowed to have. We're really proud of the technology we bring because it allows us to differentiate ourselves in the marketplace and mitigate risk.

We have the top five percent of tenants. We're getting the best in class that do less damage side longer leases. And really want to stay longer and overall, our communities grow based on word of mouth, so the better that we're able to create a better experience, the better our brand gets and the better our communities grow.

Steve:

Sumit, so that's awesome, I always love to talk about technology because so today we're recording at one of our apartment buildings in the city of Cleveland.So what's really exciting is that we pulled into the parking lot today. There was a Tesla charging at one of our car charging stations. And the one thing that I always want to cover with folks is exactly kind of what you were just saying about some of the technology, forward thinking items that we bring to the table. So I remember when we were purchasing this apartment building and underserved apartment value added product, some five hundred rands. One of the things that when we were just having the discussion with folks, they would say, you know, you said you're putting in an EV Charging Station.

Who the heck said we're going to live at your apartments in that area and that community with the car charging stations? Well, today, pulling out and there's a Tesla charging there. My rebuttal has always been, if you don't have it, you can't attract the best tenants. So it's kind of always that chicken egg technology. At earlier on, you slightly touched on, you know, early adoption or adoption, You kind of made a statement about that. And so what's unique is that our CEO is always in that early adopter stage. Right. So it's that entrepreneurial spirit that kind of always has us these heated discussions in our office about what are those additional value add revenue drivers, and so we always try to look at it from a technology standpoint, both on how we can mitigate some of our risks or administrative expenses, but also really change and transform communities and transform people's lives in those communities.

Right. So, you know, another thing that you just mentioned is like, you know, offering B and C apartment class residents the latest and greatest tech, like Bluetooth speakers Alexas and Nests and USB. So getting back to what you were saying is that, you know, we're not looking to capture thousands of people in every submarket when we do a value add deal. Right. We're only looking for that top tier, five percent, as you mentioned.

So that's part of our success story and some of our secret sauce in regards to being that market maker in a underserved tertiary or secondary submarket where folks don't have that CapEx, where they're not doing those heavy lifts, they're not taking full value, However, you have plenty of population seeking that. So I think our investor partners really appreciate you know, I've been on those tours with some of the guys showing them our, you know, pay by phone laundry applications. Right. Where we're adding value to the bottom line of every property by just doing these small little value add widgets.

Right. So people can one, we're taking command of those value, add opportunities and driving NOI. But ultimately we'redelivering investor results. Right. So it's not just that roll up model mitigating administrative risk. It's also growing more value opportunities through technology, adoption and being always at the forefront of that and willing to be different in that regard. So I think I think we really were able to touch well on that. And kind of I think that one of the opportunities that we can talk about is maybe tell us a little bit about some of our professional partners or some of our partners that we're working with, both from, let's say, auditing finance, but also from like hardware or any of those items.

Sumit:

Yeah, and I think you touched on it with our history. But as we've evolved, our professional partners have grown with us. So whether it's one of the largest paint providers globally - Sherwin williams as we're a preferred partner and a significant buyer because of the amount of business we do, or Home Depot, whether it's BDO - a middle market, regional auditing and accounting firm, to our law firms and our partners accress. Public relations, communications, marketing, banking. We have the premiere partners here in the Midwest and Southeast, and we love what our partners bring to the table. And we always are trying to track and have vendors that have the same caliber that we bring to the table - forward-thinking, the premiere standard of excellence in their industry. And as you see listed, these are some of the partners that we have and we really value our partnerships with all of them.

Steve:

Sumit that was great. So we've talked a little bit about our technology. We talked about our investment partners. We gave you a really brief kind of history background. The question is like, that's our history. Where are we going? And so where are we going? We're growing more doors, right. So that's always on the number one strategy. And that's and that's the keen focus of our fund, right. So soon covered. We're buying one hundred million dollars worth of equity in multifamily with a three hundred million dollar value on the portfolio. So it's about growing doors growing volume and being able to also take advantage of those partnerships. And scalability is so critical because it allows us not only to be strong buyers on our renovation side, mitigating our cost and risk to our investors, but also provide top notch services to our investors, where you have an online portal where you could access live and see kind of where we're where you're at with your investment or take a look at how your investment is doing or access other investments that we may have or offerings. So all of those items and then most importantly, that technology we keep improving. And also we're able to buy more of it for our residents. Right. So servicing them with things like digital portals for maintenance requests. So getting really, I guess, really a lot of it does back on technology, right? I mean,

Sumit:

Absolutely. And I think bringing class A amenities to the B and C class is such adifferentiator. When other operators and real estate private equity firms are not doing that. They don't think that that matters. We see how much it matters and it's translated to our actual rents, captured to our actual bottom line and our retention. And so we continue to deliver a premier product in terms of renovation and apartment communities because we realize it translates to investor returns.

Steve:

Yeah, absolutely. So let's maybe talk about what are some of our successes. How about let's talk a little bit today about maybe let's a notable recent exit and how about maybe something that we have in motion that's live happening now, kind of where our successes are, where our failures have been. So let's talk about that. Do you want to kick that off?

Sumit:

And definitely. So what I'd love to discuss is kind of at a high level, why a track record matters as a real estate private equity firm. Past performance is not always indicative of results, but you can kind of get the picture of why we continuously underwrite to be conservative and always have historically overdelivered on their performance. So if you look through our resume of success, it outlines our past funds and the history of it. You can kind of look through each line item and see how our performance has translated to actual returns. We've always primarily focused on protecting principal and returning a high return on investor’s capital. Each of our funds have different strategies with weathering the scattered sites, single family, residential or the multifamily value add and we continuously have over perform.

So line by line you can walk through our returns and see that our average IRR or that can be translated to annual returns have been north of twenty two percent. One of the things I want to kind of discuss is two of our big highlights are our breakwater apartments, which was one hundred and twelve units L Tower here in the Cleveland area where we bought it again, distressed, mismanaged, deferred maintenance. And we're really able to go in with our vertically integrated company and deploy all of the divisions to really fix those inefficiencies quickly. We projected a five year term on that fund and we already delivered our projected results in under three years. Steve, can you kind of discuss a little bit about what the approach to construction was with that property and why we were so ahead of schedule?

Steve:

Yeah, so that property was awesome. Awesome project. It was vertical, as you mentioned, dealing with elevators and understanding kind of maybe construction, logistics, working with legacy residents and working them through the processes we took over that property. So, for example, moving them around to their newly renovated units. But really kind of if we go back to the nitty gritty, right, we always begin with the vacant units. Right. So we attack, as you mentioned right away, it was a mismanaged property. Right. So right away, we had probably 10 or us to kind of strike quickly. And our ability to strike quickly is what makes us really effective. Right. And there is there's a whole process and systematic approach behind that. So when we kick off construction, we're looking to palletize or pre populate our inventory. So that way it's real time delivery to the unit. So our field reps could be the most efficient and deliver quick and timely results on a continual basis.

Sumit:

So can you break that down a little bit more? So when you're saying a palletize approach, you're saying that we go out, we know what shades of color we're painting a place, we know what type of granite, top cabinetry

Steve:

Absolutely.

Sumit:

All the units on each floor plan. And then we go through we buy ahead of time and we deploy them into the units.

Steve:

Yeah. And actually what's really important out of what you just mentioned is, is that is exactly that. It was identifying in advance all the appropriate colors, all the appropriate fixtures, you know, having the appropriate communication with our partners. So negotiating volume, negotiating, which again is all about cost cutting and driving the bottom line to our investor partners, but also transforming the community for our residents. Right. So because we can never forget how important of a client our resident is for us, and that gets back to what we earlier talked about, was delivering some of those new technologies with the Bluetooth and so forth and so on. But but really what I want to cover is something that you just mentioned kind of in passing, which was this predefined color, these predefined materials. And what I mentioned earlier about our historical kind of lineage, it's Smartland, is that we were all about mitigating those long term administrative hurdles. So as we evolved as a business, what we were doing is we were identifying those costly administrative hurdles, whether it was from a material standpoint and what we were delivering to our residents. So what we're looking to do was mitigate those turnover costs, mitigate those long term expenses by installing more resilient products.

And because we've had such a long term and historical kind of identifier on products and product types, what we're implementing in our multi family value add properties are the uniform product lines where they're easily serviceable. And because are new installations, we're just lowering those maintenance hurdles, not only not only to have to do, but also for residents to have to call on. And so the more you can mitigate problems for your residents, that's where you're getting that recapture or longevity out of your capture on your residence. And so what does that mean? Every time that we talk about these little itty bitty things What's always really critical is to understand how that drives back the bottom line and savings and increases revenue for our investor partner. So it's like, you know, it's like every move that we're making throughout this life cycle of whether it's for the by acquisition and the process in between, that always culminates to a really similar and resounding result, and that's driving more revenue for our investor partners. And that's that's always so exciting for me, because when I walk these properties after the transformation, seeing that transformative look in people's eyes as your residents, but then when you're having the conversations with the investors and you're also walking through with them and they see that transformation, I mean, it's so special.

Sumit:

They're proud of the community.

Steve:

and we're so proud of the communities.

Sumit:

One of the other things that Steve touched on was how we go after heavy lift projects most. Real estate, private equity firms or investors or people that aren't vertically integrated don't go after these heavier lifts because they can pose more problems. We see that as an opportunity because of our vertically integrated company to understand the risks going in and really provide a heavy lift that almost creates a brand new unit or looks as comparable to new construction.

Steve:

Well, that's and that's what really makes us that market maker that I mentioned earlier on in this webinar. So we got a little bit off subject. You know, I kind of want to real is back in talking about that L tower - Breakwater Tower story. You know, it was such a huge success. We were able to, as you mentioned, exit that early on. It was a five year hold for our investors. We exited that to a two and a half years, a little bit over two and a half years where we renovated almost nearly one hundred and twelve units, pretty much, I would say. Ninety five percent of them got renovated. We have some legacy residents that were there for 20 plus years.

And that's what I mean, is really being able to sometimes walk these properties and see true transformation is when you have a conversation with one of your residents that's been somewhere for 20 years and it was grossly mismanaged and they didn't care. And then they see that you care and you installed new lighting everywhere. And it's bright and it's beautiful and it's maintained well and the facility is maintained well and the staff are friendly. It makes just such a big difference. And so for our repositioning, we're able to take a tower that was called sub six hundred rents on a two bedroom, one bath with new averages up and above eight hundred. So adding two hundred dollars to three hundred dollars to rent is not necessarily that outrageous for some of our performance. In some cases, maybe it's a little bit less one hundred and fifty or two hundred dollars on rents above where we're anticipating. So I mean that alone is just always so, so impactful just watching that happen and as I said, it's impactful both from investor side because we're able to deliver the bottom line. But really, it's truly impactful from changing and transforming lives in this community and the people that live there. And that's been.

Sumit:

absolutely so rewarding. Last week, I was having a conversation with a tenant. She was moving up. She's moving out of the Cleveland area. But I asked her, how did you like living in Breakwater? And she said, I have never lived in an apartment complex where the the managers did what they said they were going to do. The the experience was just seamless. And I think that speaks dividend's about our property management, which really maximizes the value of an asset. So once we're done from a construction side of enhancing amenities based on what tenants in that area need and want is actually managing it properly, doing what we're going to say we're do. And tenants want to live in communities and stay in communities where the property management team continues to deliver a hands on experience.

Steve:

And we don't even talk about our Uber partnership that we offer residents. I mean, and that's another amenity. So every time that we say amenity, there's there's just so many of them to catalog. I think that our standard operational infusion on any community that we're doing and I don't know if we'll have enough time today to cover it. So always keep in mind, download one of our webinar PDFs at any time. So let's just kind of move on and break up from what we've been talking about So we talked a little bit about our history. We talked about what we're doing. We said we have a fund. This fund, this all this webinar is all about this fund. We're talking about our one hundred million dollars equity raise its to accredited investors only if they want to participate. we'll talk a little bit about what the entry costs are. But maybe let's talk about what we're doing geographically within the fund and how that helps mitigate some of the risk.

And one of the areas that you talked about earlier is that we were founded in Cleveland, but now headquartered out of Miami. And so maybe let's talk about how the fund focuses on purchasing both in South Florida and in the Ohio market and what we're looking at as far as type of opportunities.

Sumit:

Yeah, I think opportunity is exactly the key word. We always look at where is the opportunityto maximize the value of an asset, where it has been mismanaged? Where can we take an asset from? Is an operational business a multifamily community being mismanaged? Where can we take that? In Ohio, a lot of these outdated vintage multifamily are cashflow rich and have the opportunity to increase the cashflow, but less of an appreciation market. So we have a lot of opportunities here in the Cleveland area, Columbus, Cincinnati and Greater Ohio. We find that there is a large amount of owners that are at the end of their careers that are disposing of these assets without doing some of the deferred maintenance it's needed to keep these properties maximized. So Ohio has been a really primary target because of one of our relationships from a dual sourcing side, from our operational structure of being able to deploy our team, but it really speaks dividend's into how we can move an asset, buy it at a low basis and grow it over time from deploying our vertically integrated team.

Florida speaks a lot to the growth we've seen. We moved our headquarters there because we were so excited about the demographic shifts that we've been kind of keeping our pulse on. As you've seen over the last couple of years, growth has continued to be there. As Ohioans or Midwesterners. we've seen an influx of the path down to the Southeast and we want to take part in that. One of the reasons we looked at relocating our headquarters there was the growth. So we go after multifamily assets in the greater Florida area, including a very big focus in South Florida, in the Miami Dade area. It presents a lot of opportunities in the smaller multifamily where we're able to not just buy based on cash flow, but also for the appreciation play. And in having these two components as part of the fund gives a lot of diversification in terms of either just cash flow rich or cash flow, plus appreciation. One of the big focuses that Steve focuses on is our construction. And I think you see such new development in these areas, whereas in Cleveland and in Ohio, new development can be very costly. And so we love buying existing assets and repositing. In South Florida, There's also older assets that can be repositioned and be way under the stabilized value of the assets we're buying. So, Steve, Why do you like Florida as a market?

Steve:

So I think you covered some of those points. You brought up a few good points. One, mass population growth. You're seeing 20 percent year over year on population growth in regards to cost of construction. You're still being able to build somewhere into a seven, selling at a five type of scenario, high absorption rates, very high comps on rents. So what we're able to do is also bring some of our knowledge and some of our systems to that Florida market purchasing, also some of these vintage and competing against, Yes, we have a lot of class, a new construction coming online. But it brings us back to kind of what we talked about earlier on the webinar. We're still able to be a market maker because there's such a heavy focus on either you're building something brand new or you have something really old. And again, you have old ownership, old management, old vintage property, legacy residents, So Florida is still very good to pick out the same or similar concept and right within our checkbox system for vintage multifamily value-add in some cases maybe a little bit slightly smaller composition of units. However, profile and underwriting still very heavily the same. And so that makes Florida really, really interesting. But then when we talk about that Cleveland market and you mentioned heavy cash flow from goal, less appreciation, so that's where that value add heavy lift is so critical because again, we're able to be a market maker in the Ohio marketplace.

Good absorption rates, very strong absorption rates, We know our hypercritical market so well. And so that's super important. We're boots on the ground both in that Florida market and in the Ohio market. Super important as well allows us to bring our Smartland ecosystem into the mix. But the one thing that really Ohio lacks is new construction. Right. So anything that we're doing in Ohio, I think, has very strong, very strong kind of path and limited resistance to being successful from a value add perspective. As far as Florida, I think as we open up that market more and more, we're seeing also those heavy value add as we also secure greater relationships and more relationships with various brokers for off market deals. So talking a little bit about where is our funnel, what's our funnel look like? And we've actually diverted a little bit from where we were going. So we talked about breakwater and the successes that we had a breakwater maybe. Let's talk about what we have going on now. And specifically, maybe you can cover it's an apartment complex called One-3-One Apartments, maybe cover a little bit. And I'll happy to fill in with maybe some of the financials or

Sumit:

So during the pandemic. May of 2020. We acquired a 104-Unit multifamily value-add. A Class C apartment community that now over twelve months has been converted to a B plus community. That's based on just our approach to creating value in terms of our renovation, Our amenities and Transforming a tenant experience. So they're the basis of our investment was that we were able to acquire this apartment complex at a low cost basis in the Ohio market, we're able to capture a low cost basis, plus our renovation component. And those two combined allow us to know that our all in costs were way below any of the the competitors. That allows us to know that are risks are mitigated. Someone can't build a new development next to us and compete with us on costs. We're able to capture the highest amount of rents because in our geographic area we are the best product. And it speaks to what we call the Smartland difference, how we approach renovations, how we approach property management, how we approach design, and how are our vertically integrated team focuses on tenants and investors and the community. One of the things that was amazing about about the One-3-One was how ugly, how disgusting, how difficult the community was. Right, We look after those buildings that just have a nasty component to it. Why? Because to us, it speaks opportunity and it speaks opportunity to transform it so that it becomes part of the community. We've really transformed building by building all the vacant units, then went and streamlined, whether it was whether it was interior units, exterior. We've already created our our exterior playground, put in our gating, our entire wall that actually makes us a community rather than being next to the neighboring single family residential homes.

Steve:

That that along with a big pet park and then the typical amenities that we talked about earlier. Right. So the Alexi's, the USB outlets, the Bluetooth, all of those things and then most importantly, Right, what everybody wants to hear What were the rents going in and what are the current captures?Right. So we're sub six hundred to sub five hundred between twos and ones mix. Now our twos and ones go anywhere between seven fifty to seven ninety nine and then our twos are streaming anywhere between 849 to 999 And so what's amazing is that we've had a multiple hundred dollar rise in rents between what we were going in where we're at today, and most importantly actually based on some of that conservative underwriting that we implement as our natural course of business, what we're able to do is actually we're over delivering on the potential rents that we were anticipating by like one hundred, one hundred and fifty dollars.

Sumit:

What was amazing is those going in rents were that sub six hundred. We had projected that in over a five year term that we were going to stabilize about one hundred and fifty rent increase. We did that in twelve months.

Steve:

Yeah.

Sumit:

A large portion of that was attributed to our job as an operator. We did also benefit from the market, but we continue to enhance or enhance the property and it is amazing to be delivering the results that we thought we were going to make in year three or four in year one.

Steve:

It is. It truly is. All right. So as we come off of some of the things that we were doing, some of the things that we've done, get back to you about that management strategy and let's really highlight that for our viewers. And so they get a better grasp on what is that strategy.

Sumit:

So, again, our focus is really on where can we take an asset that we can acquire, improve, renovate, stabilize and exit it. So maximizing that value through a one to three year transformational process and then stabilizing that in year three four and exiting in year five, our process stays the same. We look at an asset. We see if it's been mismanaged.

Does it have a heavy lift component? Why do we care about the heavy lift? It allows us to transform a product that we can believe in, but it also allows us to mitigate risk because we're able to buy something at a discount. As a fund, we're able to acquire things at a bigger discount because we're coming to the table as a cash buyer versus doing it on the individual deal basis. We look at assets where we can take it from where it is and be the top of the market, what we underwrite to being in. Place two, three or four in the market, and we always try to stay at the top of it. This comes down to how do we where are there some opportunities to enhance revenues from a top line growth? What amenities and interior renovations are needed to capture rent growth? But then operationally, on the cost side, how do we reduce expenses, how to put in ancillary revenues, whether it's Internet revenues, whether it's AC units that are more green and efficient? Going through those case studies really is representative of our approach. We look at where it is an opportunity to acquire a mismanaged asset at a discount to what we can stabilize that. We look at revenue enhancement opportunities because it's important to know that we can take an asset and grow the overall rental income in ancillary revenues. We also look at where their operational inefficiencies, where has the current owner mismanaged the property operationally? And we use our wide database to cost cut, whether it's garbage removal, sewer, water. We negotiate these things via economies of scale from a renovation process in an operational, annual, ongoing process. Those aspects allow us to really focus on maximizing the value of an asset. So again, the approach is where is the mismanaged property? Where is there an asset where we can take the property in and transform and attract top five percent of tenants? And then where are those assets? Are they primarily in the Midwest and Southeast? Where can we source these deals? Where are relationships that can translate to better investor returns, better tenant experience and overall community?

Steve:

So I think you could have covered it any better today and really highlighting, again, some of the things that we talked about, whether it was our management skills or if it was our technology, the assets that we're buying, the team that's in place to manage it, the resident life transformation that we're doing, it all breaks down and it all always comes back to the same goal, doing the right thing, delivering quality results both to our residents and our investor partners.

And as long as you have that ecosystem and fundamentally that is what you are living and breathing on a daily basis and your whole team is set on that same goal. That's where we're able to really return and deliver those double digit returns to our investors and we're able to do it over and over and over again. So early on, I talked about you talked about I talked about where we were founded, the history of our pathway there. And through all those years, all we've done is that we've been tightening those screws on the operational side, on the goals, building off of successes and failures alike.Right. And and every failure has gone through kind of what I say, our own

Sumit:

Postmortem assessment, like realizing what do we do well? how do we implement that in the next project and continue that?.

Steve:

Yeah, absolutely. And you know that that's exactly what I was going for. But also focusing on the idea that the that the general partners always did it their funds first. Right. So they perfected the system and always, always, always participate alongside our investor partners.

Sumit:

I think that speaks a lot to how we're aligned with investors. It's really important to know that not only the Smartland as a firm and our employees compensation tied to tied to the performance of the assets. But our partners put a significant amount of their wealth into each of the funds, and it shows that they care and and have a significant amount at risk as well, because we believe in a true partnership.

Steve:

We just covered so many pieces today. How about fund overview? Give us the terms of the fund raise and the offering. And that way, all of our viewers today know exactly where they can sign up, where they can get the information, as I mentioned earlier on And one of the parts of the segments is that if you're interested, you can come to us. You could download a PDF of our presentation today,

Sumit:

Email us at invest@smartland.com or contact us at (330)984-2134

We'll make sure to get back to you. We designed two classes of investors, class A investor at a minimum Fifty thousand dollars investment for an eight percent preferred return with an eighty percent waterfall of available cashflow up to a 15 percent internal rate of return.

Then it goes to 70 percent for the remainder of the fund, our class B investors and million dollar minimum investment with a 10 percent preferred return and 80 percent of available cash for the remainder of the fund. We designed that primarily because people were asking to participate, but couldn't hit that high hurdle and this is only open for a limited time. So this offering is only available to investors as a 506C regulation D offering.

We would be really fortunate to have you as an investor partner and we welcome you on this journey to building wealth through real estate. And we hope to be that partner that continue to help you build wealth.

So next steps would be to either visit our website or www.smartland.com. Email me at sumit.k@smartland.com or text us at 330-984-2134

Steve:

All right, I love that texting option. And you know what? As an incentive to our partners and the kind of our commitment to all of our investor partners, one of the things that I think it would be just for us to discuss is kind of giving you a quick synopsis of a comparable the fund fees versus maybe some industry fees. And so you could really see that our focus is on the fund itself and on delivering successful results to investors.

Sumit:

And Steve, you touched on it, which is we are really focused on being investor centric, tenant centric and stakeholder centric. And so when you compare a lot of fund offerings, we designed it to be a low fee fund offering, meaning comparable to the market. You will see that some offerings can be all the ways on the low end at 6 percent, all the way on the high end, 20 percent as a layer of fees. We really focused on not being a fee focused firm.

We focus on generating results through actual operational improvement. So as you'll see, our offering is only an all in one and a half percent of transactional fees and annual expenses of That is one of the most competitive and attractive fee structures. And we want to do that because we always align ourselves with our investor partners.

We really want to keep today's presentation at telling you a little bit about our story, our strategy, and why this might make sense for you to participate in. Outlined in our private placement offering will be an outline of our risk factors and our frequently asked questions. And you can always contact a member of our team to discuss any questions you may have.

Steve:

So some of the additional advantages of our participating in our fund are going to be things like tax advantages. So taking things like depreciation schedules that our investors also get to participate in, which are direct benefits to reducing your taxes and saving money, and that in its own right, also results in a higher return. That's not discussed here.

So we didn't talk about any of those benefits here to the investor partners, but they can always reach out and we'd love to dive a little bit deeper about that. So that way you can get a better feel for what additional advantages there are in participating in a fund with us or in a fund like this. And the other item is that we've told you everything that's been successful and successful for us. So one of the things that's really important always here is to understand that the journey is together.

Sumit:

At Smartleand we really pride ourselves on protecting investor capital, delivering results and aligning ourselves with our investor partners. One of the reasons we design this fund was we heard from many investors about their fear of the public markets and wanting to deploy capital into real estate. Real estate really allows for a hedge against inflation, the opportunity to continually get a high return on your capital, when knowing that it is coming from an income producing asset that's not correlated to the public markets.

This allows our investor partners to really predictably see where their retirement is going towards and know that they're on their trajectory to build wealth. We believe in transparency, integrity and delivering results. And every time we look at an asset, we're looking at how can we deliver more investor returns.

Steve:

And so one of the ways that also you can invest with us, if you haven't considered, you could use your self directed IRA. And if you don't have a self directed IRA or if you have a conventional IRA, it's a method of which a lot of folks are using to invest in tangible goods such as real estate. So if you have an IRA and you think you've been thinking about investing in real estate, you can you can connect with us. We will connect you with our exclusive partner.

Equity Trust and Equity Trust is the largest custodian of self directed IRAs in the country. So we've coupled ourselves with the largest custodian for self directed IRAs that can make it very easy and translate your IRA to self directed IRA, which then you can use to invest in real estate. And that's one of the other benefits.

By working with Smartland and having an exclusive partner that Smartland uses, such as Equity Trusts, it makes this process seamless and it also allows you a new path or an alternate path or a little bit better commanding path over some of the things that you can't command in your IRA and that's being involved in the stock market or public markets. So if you feel that it's volatile right now or that it's at an all time high or that it feels very frothy for lack of a better term in the markets, one way that you can hedge your or mitigate your risk is moving your IRA to self directed IRA, coupled that again with our partners, that equity trust. And we'd be happy to share more information with you and also how you can do that.

Sumit:

Absolutely, Steve. And I think many people don't realize that they have a ton of assets in their retirement and there are vehicles such as a self-taught IRA to deploy that in. We have a preferred partner called Equity Trust.

We have a streamlined process to set up accounts if you have another custodian We also accept investments from other self directed IRAs and would be happy to discuss many different vehicles for you to invest in today.

Steve:

Thank you.