BANKERS HILL CONDO

DEVELOPMENT
Real Estate Investment Opportunity
Confidential
8/4/2014 CONFIDENTIAL
2
All materials and concepts herein, or provided in
discussion of this presentation, belong to LIV Capital
Group, its Principals and/or affiliates; and cannot be
used by any other entity for distribution, re-use,
marketing, soliciting, or gain without explicit permission
from LIV Capital Group .
Contact Information
8/4/2014 CONFIDENTIAL
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Richard Montao
PO Box 880441
San Diego, CA 92168
619.246.3509
richard@livcapital.com
LIV CAPITAL GROUP INC
Longevity | Integrity | Vision
Creative investment option on your journey to financial freedom
Group Investing
LIV Capital Group Offers investment
opportunities for individuals to own shares
of real estate in San Diego. Using the
crowdfunding method, LIV Capital Group
empowers individuals to pool their money
with other like-minded individuals and
invest in a local real estate project.
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Real Estate Investors
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The Real Estate Investors Struggle
Finding Investments to place their cash for a good return
Trust Deeds
Rentals
Rehabs
Time to think outside-the-box
If there is no inventorycreate inventory
Join forces for Real Estate Ownership
Reduce Capital Exposure (Diversification)
Lack of Available Financing
Economies of Scale
Shields from Liability
Typically Higher Yields
Project Summary
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Bankers Hill Condos Urban Living at its Finest
Building 7 townhomes
With improved plans to start within 6 months
2 Stories over 2-car garage
2-3 Bedroom
1500-2400+ SF
Superb location on Bankers Hill
Positioned in a central location of San Diego
Panoramic views of San Diego Harbor
Minutes from Downtown
Walk to Balboa Park
Minutes to San Diego Bay
Market timing couldnt be better
Low inventory
No Brand New Inventory
Low interest rates
Ready to Build
Site & Location
Bankers Hill
Location: Bankers Hill is a long established uptown
San Diego neighborhood near Balboa Park. It is bordered
to the north by Hillcrest to the south, past Date Street, by
Downtown to the east by Balboa Park, and the west by
Interstate 5, Little Italy and the neighborhood known as
Midtown.
Attractions:
Balboa Park, 1,200-acre urban cultural park in San Diego, California. In addition to
open space areas, natural vegetation zones, green belts, gardens and walking paths, it
contains museums, several theaters, and the world-famous San Diego Zoo
Mr. As, fine dining with panoramic views of downtown and San Diego Harbor
Extraordinary Desserts, decadent dessert stop for all to enjoy
Superb restaurants with many offering live music and fine dining for eclectic taste buds
Panoramic Views of San Diego Bay as well as Balboa Park
Style:
Unique, urban, vibrant culture , art-centric, hip and young at heart,
Artists lofts, condos, historical Victorian homes and quaint B&Bs, studios, shops
scattered throughout Bankers Hill
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Location Map
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Site Location
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Current Site Views
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Site Plan
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Design Concept
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Green Materials
Materials: EcoFriendly, Reusable, Renewable
Efficiency: Design, Use, Building, Solar
Contemporary Design
Style: Capture the concepts of Green Living
Architecture: simple & elegant
Bankers Hill Investment
Highlights
Return On Investment
50% ROI within 18 months
Ready to Start Building in 3-6 months
Sellers Market
BH Inventory - Between 0-3 Months
Absorption 2 homes per month
Average over $500/sf
Break-Even = 16 months (Dec 2015)
Upon first 5 closings
Pre-Sales/Marketing
Can close within 30 days of Completion
Aggressive Online marketing
SofiaLiving.com
Fit Properties.com
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Investment Ownership
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Ownership
Bankers Hill 1, LLC
Real Estate
Funds Needed
$1,300,000
Owners
Equity Partners (Investors)
Richard Montano
Matthew Gordon
Priority Distributions
Equity Paid back 1
st
Timeline
16-18 months for Profits
Equity
Partner
50%
Gordon
25%
Montano
25%
Ownership Structure
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Bankers Hill LLC
Current Owners Retained Ownership
Richard Montano 25%
Matthew Gordon 25%
Equity Partner Investors
Cash Investors
Provide equity totaling up to $1,300,000
Own 50% of project
LIV Capital Group
Managers
Richard Montano
Matthew Gordon
Estimated Proceeds
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1st Distribution 2nd Distribution
Example
Invested
Amount % of Equity Return of Equity Profit
Sep-15 Oct-15
$10,000 0.38% $10,000 $5,002 50%
$20,000 0.77% $20,000 $10,004 50%
$50,000 1.92% $50,000 $25,011 50%
$100,000 3.85% $100,000 $50,021 50%
$200,000 7.69% $200,000 $100,042 50%
ROI
Timeline
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MONTH
1
Raise total
Funds of
$1.3 Million
Obtain
$5 Million
Construction
Loan
Start
Pre-Sales
Build-Out
Start
Construction
First
Closings
Close -Out
First
Distributions
Final
Distributions
2
18
17
5
9
16
How to Invest
LIV Investment Process
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Investment Doc Review
Review Investment Presentation, FAQ & Financials
Read and Sign
Operating Agreement
Subscription Agreement
Complete for LIV investor approval
Wire Investment Capital
Cash, IRA, Real Estate, etc
Become an Owner
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QUESTIONS
Bankers Hill Condos
Back-Up Slides
Team
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RICHARD MONTAO, CEO, LIV CAPITAL GROUP INC
Richard Montao is a real estate and investment professional and entrepreneur. Over the past decade, he has founded two
successful real estate companies; LIV Capital Group Inc, an entrepreneurial real estate investment and advisory firm; as well
as Fit Properties, Inc, a local San Diego Real Estate Brokerage. Richard has an extensive background in identifying prime real
estate, structuring capital and executing business plans through all stages of the real estate investment cycle. Richards keen
sense of asset positioning and investment capital structure has earned him the opportunity to facilitate over $100 million in
successful real estate transactions. Richard currently manages multiple real estate investments as a General Partner, Manager,
Principle, and/or Sponsor. He has created, funded and managed various types of real estate ventures that include: new home
development, trust deed investments, apartment equity investments, and value-add projects. Richard earned two Bachelor
degrees in Engineering and Physics, attending Pepperdine University and San Diego State University. He also obtained
his Masters in Business Administration and is a California Real Estate Broker.
MATTHEWGORDON, DEVELOPER LIV CAPITAL GROUP INC
Matthew Gordon is an entrepreneur in the food industry and a real estate developer with 30 years of experience working with
Fortune 500 Companies in distribution, manufacturing and sales. He has been a principal in over $100 million of transactions
in business acquisition and development owning over 700 apartment units. As managing partner of these investments he has
developed, rehabbed, repositioned and entitled mixed use, residential and commercial property in Chicago Illinois, Tampa
Florida and San Diego California. Matthew Gordon achieved Leadership in Energy and Environmental Design (LEED) Silver
certification for Golden Hill Row Homes project in San Diego. He obtained the highly regarded LEED certification by
implementing a host of environmentally responsible building strategies recommended by the United States Green Building
Council. The eco-friendly row home development, designed by Hawkins & Hawkins Architects, won a Golden Nugget Award
in the Best on the Boards Multi-Family Project category at the 2010 Gold Nugget Awards presented by the Pacific Coast
Builders Conference at the Moscone Center, San Francisco.
Current/On-going Projects
Golden Hill Row Homes
Lucia Apartments
Renew and Re-sell
Value-Add Apartments
Trust Deed
Buy, sell and originate
Non-owner occupied loans
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Current/On-going Projects
Carlsbad Town Homes
Imperial Beach Mixed Use
Mount Alice Resort & Marina
Past Projects
Solomon Fletcher Building
Coast Hotel
Lofts at Moonlight Beach
Jupiter Building
Lofts on 4
th
& 5th
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Marin Building
Alternative Exit Strategies
Fire Sale
Price $6.8M ($509/SF)
Lowest Bankers Hill comparable sale ($500/SF)
Break-Even Values ($488/SF)
Rent & Hold
$2.00 - $2.25/sf
4% yield w/out financing
Value $6.7M as rental
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Sensitivity
Appraised Value
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MAI Appraisal for 7-unit parcel (August 2014)
Use of Funds
Total Capital Raise $ 1,300,000
Remaining Equity Required $ 1,172,000
Capital Costs $ 63,000
Legal/Admin $ 10,000
Reserve $ 55,000
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Budget
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PROJECT COSTS
LAND PARTNER BUYOUT 1,600,000 $
PERMITS & FEES 295,768 $
DEVELOPER FEES 100,000 $
INSURANCE 60,000 $
PROPERTY TAXES 24,000 $
ARCHITECTURE & ENGINEERING 165,000 $
CIVIL ENGINEERING 24,000 $
TENTATIVE, CONDO & FINAL MAP 16,500 $
G&A 72,000 $
MARKETING EXPENSE 90,000 $
MODEL MAINTENANCE 100,000 $
TOTAL LAND AND DEVELOPMENT 2,547,268 $
PROJECT COST PER SQ FT 189 $
DIRECT CONSTRUCTION COSTS
DEMOLITION & GRADING 309,212 $
MAPPING, STAKING & SURVEY WORK 28,000 $
FIELD CONSULTANTS 30,000 $
PARKING STRUCTURE incl
VERTICAL CONSTRUCTION 2,285,480 $
CONTINGENCY 129,735 $
TOTAL DIRECT CONSTRUCTION 2,782,427 $
DIRECT COST PER SQ FT (BASE COSTS) 207 $
FINANCE COSTS 4,800,000 $
CONSTRUCTION LOAN INTEREST 9.00% 453,600 $
ORIGINATION FEE 1.00% 48,000 $
CONSTRUCTION LOAN POINTS 1.50% 72,000 $
LOAN CLOSING COSTS - $
COST UNDERWRITTING... Fixed Fee 30,000 $
TOTAL VARIABLE COSTS 603,600 $
VARIABLE COST PER SQ FT 44.90 $
SALES COST BELOW THE LINE
SALES COMMISSION 3.00% 226,525 $
CLOSING COSTS 1.00% 75,508 $
WARRANTY 0.17% 12,459 $
LENDER EXIT FEE 0.00% - $
RECONVEYANCE FEE 2,500 $
TOTAL SALES COSTS 316,992 $
SALES COSTS PER SQ FT 24 $
TOTAL COSTS 6,250,287 $
Marketing
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www.sofialiving.com
Available Reports
Appraisal
3
rd
Party Construction Estimate
Construction Documents
Budget
Approvals/Entitlements
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