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This is an entry level opportunity to invest in a company that is unprecedented. ERC is taking advantage of an acute under supply of affordable housing and is able to do so with minimal investment. There is current annual 10% dividend yield and excellent potential growth in value due to new construction.
Build-to-Rent is an investment platform where land and homes are developed solely for the purpose of renting to tenants, in order to take advantage of the surging demand for rental housing.
There are so many families who want to get out of apartment living but cannot quite afford a down payment on a larger single-family residence. Build-to-rent homes are built in larger quantities to be more efficient in construction costs as well as providing an opportunity for competitive rental rates.
There are material cost savings in manufactured homes that allows for as much as a 1/3 reduction in rent that tenants have to pay – in Florida, this can mean as much as a $700 monthly savings in rent for a brand new 3-bed / 2-bath home. There is a heavy demand in areas like Florida and other areas that are experiencing high levels of population growth.
The ERC Communities management team wants “Main Street America” to enjoy the ownership benefits of this business. The company’s Chairman, Jerry Ellenburg, has almost $1 billion in equity and debt financing on his resume as a principal. He has guided the company’s current thinking to invite all of America to join this opportunity of an investment that matters – not just wealthy Wall Street investors. His goal has been to build a true “Investor Collective” or “Investor Family”. Jerry is very dedicated to aligning his investor values to his customer values. Concurrently, ERC Communities has continual reach from institutional and private investor groups, and deals with a number of different banks nationwide, and is guided by Jerry to assure that any of these larger investment groups align with his “Main Street America” investor goals.
Worry over investor scamming is a critical concern that any investor should research. The means by which one can satisfy such a concern would be to:
10% is only one part of the Return on Investment (ROI), and is the dividend based on the amount invested. If one were to invest $10,000, the dividend would be calculated at $1000/ year ($250 a quarter). Additional reward comes from the value of the equity in the shares that you would also own. The 10% is the “direct” and current ROI, but that is combined with the potential of capital gains at the point of sale or monetization / sale / merger / IPO.
Investing in real estate is a great opportunity but not everyone has the capital or the credit to handle the down payment or financing of a property. Owning real estate directly includes a management risk, potential large repairs, vacancy, and unpredictable costs including natural disasters.
REIT investments have their unique risks and advantages. ERC Communities has an advantage of being a company in its formulation, the balance of risk and potential high reward lies in the equity and there is also excellent potential growth in value due to new construction. Few REIT’s are currently offering a 10% dividend yield.
This opportunity is a long-term hold and would be held until there is a liquidating event such as a takeover or public offering.
Under Reg A, we cannot make projections or guarantees, and honestly, there are no guarantees in any investment. But options such as IPO and sale are always considered. While there are secondary marketplaces for share-sale, we advise all our investors to consider this a 4 – 5-year investment hold.
Reg A Share price is $12.50 per share.
Minimum investment is $750 and there is no maximum, but for the Reg A guidelines on the maximum amount an investor should invest based on income and net worth, all of which are included in the Offering Circular.