Download PDF of Investor Business Plan

Capital Renaissance LLC (CapRen) is engaged in a very familiar business enterprise, namely real estate investment. However, we have developed a unique and creative strategy, which not only sets us apart from the vast majority of such businesses, but gives us a competitive advantage over them as well.

CapRen purchases distressed residential and commercial real estate located in up-and-coming, high demand neighborhoods of the Washington, DC and Baltimore metropolitan areas, renovates them into a high quality end product, and then sells or rents them for a profit. To ensure a profit, CapRen only seeks out properties that can be purchased for 70% of their After Repair Value (ARV) less renovations. CapRen locates these types of properties through a uniquely comprehensive database (developed by CapRen), and a vigorous marketing-for-properties campaign that utilizes a variety of methods which have proven to provide a steady supply of opportunities that meet our criteria. Our acquisition strategy “puts us in the right place at the right time” – even before the competition has an opportunity. Once a property is acquired, CapRen has the right people and proven system in place to put a quality product on the market in less than sixty days.

Although CapRen welcomes a “hot” real estate market, our business plan describes why we do not have to rely on that to make a profit. CapRen is not intended to be an enterprise dependent on speculation or even on any appreciation in the housing market. Rather, we have developed a business plan for long-term, consistent profitability. Our view is that the real estate market will offer an abundance of opportunities, albeit in different forms, in all kinds of market conditions.

CapRen was created and is managed by Jake Bowen, who has been involved in real estate investing for over five years. In that time, he has successfully completed over twenty profitable transactions (details of some of these properties are located at the end of this business plan). Jake is a graduate of the United States Naval Academy where he was chosen by his teammates to be Football Team Captain. He has served in active duty and reserves for over six years. He brings the same integrity, work ethic and dedication to CapRen that he has learned and practiced throughout his military career. Jake has contributed $200,000 in personal funds toward the company’s operations and will be fully engaged in all managerial aspects of the business.

While CapRen’s primary objective is to make a minimum profit of 15% of the ARV on each property, we are no less aware of our responsibility to the communities in which we do business, and our role in the betterment of those communities. Therefore, we will always make every effort to provide homes that are of good quality and blend in well with the neighborhood.

CapRen will not compromise our individual integrity for any reason. We will hold ourselves to the highest ethical standards in all business dealings. CapRen vows to pursue excellence in all of our professional endeavors and remain above the conflicts that unfortunately exist in the real estate industry.

CapRen seeks to raise $10 million from private investors with a $10,000 minimum investment. We are currently offering two different investment opportunities.

Funding

Having cash on hand to purchase promising, distressed properties is a major key to CapRen’s success. These types of properties usually require a quick closing and can usually be purchased for a lower price with a cash offer. We are looking for private investors who are interested in a high rate of return on a relatively safe investment in high equity real estate to provide the capital necessary to purchase and renovate these properties. We are able to pay a higher return than most investments, as well as current standard lending rates, because of the significant benefit that cash on hand offers us. We are currently offering two different investment programs:

1) Investment Income Program

Receive a guaranteed fixed rate of return on your investment giving you a high-yield, low risk investment. Your investment is invested in the properties we purchase which have at least 30% equity. Our Investment Income Program currently pays between 9.00% and 13.80% APY on a minimum cash investment of $10,000. The higher the investment, the higher the yield.

Each investment will be for a one year renewable term. Investors can choose between monthly, quarterly or yearly interest payments. Each investor will also receive an investment package on each property that their investment is involved in to include pictures, renovation plans, timeline, cost analysis and investment strategy (example included with this business plan). This is a solid, secure investment for new and established investors. Earn up to three times more than a standard CD account.

2) Active Investor Program

The Active Investor Program allows you to invest in one property at a time as they become available. The Investor receives a guaranteed fixed rate of return on their investment plus the opportunity for profit sharing. Your investment is secured by a promissory note or a second deed of trust. We are presently offering to pay a guaranteed 12% annual return on a first note and 14% annual return on a second note. Investors also receive 35% of all profits above CapRen’s targeted 15% profit margin. Initial investment, interest and profit sharing will all be distributed at the end of the project, which usually lasts 4 to 10 months. Typical annualized ROI’s for the Active Investor Program are 12% to 28%. Minimum investment for the Active Investor Program is dependent on the project - it is typically $200,000.

Investor will receive via email Request for Funding (RFF) documents on eligible properties as they become available. When a property becomes available in which they are interested, the necessary paperwork is filled out and the Investor must have funds available within 5 business days. This is a great investment vehicle for established investors with the necessary capital who are looking for an opportunity to make higher returns on a secure investment.

Our paramount goal is to promulgate a superb name and an exemplary reputation by solidifying a trusting rapport with everyone with whom we do business. With that commitment as our bedrock and this business plan in effect, our expansion plans are realistic and achievable. We are confident that we have the right people on our team and the right process in place to achieve our goals. We are continually researching the market and reviewing our techniques to keep us ahead of the competition. We believe our conservative approach to real estate investing and our adaptability to changing conditions will keep us profitable and moving forward in any type of market.

We thank you for your interest in Capital Renaissance LLC and for taking the time to review this business plan. We are very excited about what CapRen has been able to do so far and where we are headed. We hope that you decide to be a part of our business by helping us to grow and establish ourselves as a highly reputable and highly profitable real estate enterprise. If you have any questions at all, please feel free to contact Jake Bowen any time at 240.565.4565 or jake@cap-ren.com .