#BuyBackBatonRouge
with Jullien Gordon & Anthony Kimble
We are raising $2.75 million dollars to redevelop the Eddie Robinson Sr. Historic District in Baton Rouge, Louisiana with a target 15% rate of return for you.

Together, the portfolio will be 184 multifamily units and one 12,000 square foot commercial property.

Our strategy leverages federal and state historical tax credits to ensure a return for our investors.

The low cost-basis of property in Baton Rouge poises our fund for great ongoing returns in perpetuity.

Join us on this journey as we #BuyBackBatonRouge.
Investing $5,000+? Go to Q5 below & invest with Gainvest Holdings.

Fund closes on September 30, 2020 or when 100% funded.
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#BuyBackBatonRouge Investor Ride-Along To Properties
The Portfolio
184 multifamily units + 12,000 sq ft of commercial space
#BuyBackBatonRouge Investor Call Replay
Important Documents & Downloads
All 6 Property Proformas (updated 5/22/2020)
Wiring Instructions To Gainvest Holdings (Our Financial Intermediary) will be sent in 72 hours as required by law after you have time to review your Docusign 
Frequently Asked Questions
Contact Us
ANY QUESTIONS ABOUT THE FUND:
Jullien Gordon at jullien.gordon@gmail.com

ANY QUESTIONS ABOUT GAINVEST HOLDS: 
Kevin Gu at kevin@gainvest.co (DO NOT ADD THE m ON com) and CC Jullien
Q1: What is the minimum investment?
As of July 15th, the minimum investment is $1,000.

If you are investing LESS THAN $5,000, please click here to invest through BuyTheBlock.com.

If you are investing MORE THAN $5,000, please jump down to Q5 below for instructions to invest through Gainvest.com
Q2: What is the expected return on investment?
15% is our target annual IRR (Internal Rate of Return). 

This is 3 times the S&P 500 over the past 20 years which performed at 4.23%.

It is 500 times a Bank of America savings accounts at 0.03%.

We pay out dividends quarterly.

A 15% IRR means that over the 5 year life of the fund, our goal is that your average annual return will be 15%.

It does NOT mean that you get $1500 on a $10,000 investment every October 1st.

Given that this is real estate development, for the first 1-2 years, the returns might only be in the single digits, because we are building the buildings and there is no major cash flow.

But in years 3-5, the returns may be 20-30% once everything is up and running and rented. 

As a result, the average over 5 years ends up approaching 15%.
Q3: When does this opportunity end?
The fund will close on September 30, 2020.
Q4: How do I contact you?
You can DM Anthony Kimble at AK at @b_anthonykimble or Jullien Gordon at @julliengordon.

Or you can email Anthony Kimble at AK at akimbleproperty.com or Jullien Gordon at jullien.gordon at gmail.com.
Q5: Where do I go to invest?
BuyTheBlock INSTRUCTIONS
For investments LESS THAN $5,000, click here to BuyTheBlock.com.

1. Go to BuyTheBlock.com and create an account.

3. Go to our offer page and click "Select Shares" on the amount you want to invest.
4. Answer the certification questions on the next page.  

5. Complete your investment on the pop screen.

6. Once you complete your investment and sign all agreements. Log out and you are done.
GAINVEST HOLDINGS INSTRUCTIONS
For investments GREATER THAN $5,000, click here to GainVest Holdings (https://gainvest.knack.com/portal) and follow the instructions below:

Here is the Onboarding Process facilitated by Gainvest Holdings.

1. Go to gainvest.knack.com/portal

2. Sign Up/Login (if signing up please upload a form of ID to your account)

3. Select a fund (Buy Back Baton Rouge Fund 1, 2, or 3...whichever one is available)

4. Investor will Sign Documents

5. Gainvest Holdings Support will conduct “Know your customer verification” background check as REQUIRED BY THE SEC (Securities & Exchange Commission) and then sign once completed.

6. The documents will be sent to the operator to sign.

7. Gainvest Holdings will sign.

8. You will receive your completed documents once all parties have signed. (Typically takes about 72 hours).

9. Gainvest Holdings will update your account and send an email with wire instructions

10. Wire funds

11. Gainvest Holdings will update your account and send a confirmation email that we have received your funds.
Q6: How long is the hold?
The fund is a 7 year fund. The hold for equity and debt investors will be at least 3 years.

We expect to refinance into a 30-year Fannie or Freddie mortgage after having 90% occupancy for 90 days.

We will create liquidity options for investors who do not want to hold beyond 3 years.

Historic tax credits require that we hold the property for at least 5 years.
Q7: What is the difference between investing as debt vs. equity.
The option to invest as debt is only for individuals contributing $20,000 or more.

As a debt investor, you will be like a hard money lender to the fund. We will pay you 5% interest annually and you will have first lien position on the portfolio just like a bank has on a home. You will receive dividend payment quarterly and you will be paid back in full once we refinance into a 30-year Fannie or Freddie mortgage.

As an equity investor, you will be our partner. That means that you will assume the risk of the downside and the benefits of the upside. Based on the size of your investment, you own a percentage of the fund. We anticipate at least a 15% rate of return on your money. Once we return your capital through the historical tax credits and refinances, you will retain your equity stake and benefit from ongoing quarterly dividends from monthly cash flow. 
Q8: Why this neighborhood?
1. The low cost-basis of real estate in this neighborhood poised for growth makes it a great buy given that it is strategically positioned between work and wealth and destined to be gentrified by us or someone else.

2. Given that The Eddie Robinson Sr. neighborhood is classified as a Historic District, we can take advantage of federal and state tax credits which sweeten the deal and ensures return of capital to our investors.

3. Anthony is from Baton Rouge and is committed to its growth and development in the short-run and long-turn. He has relationships all over the city from politicians to permits to everyday people.
Q9: Can I use my 401K?
Yes! You have 4 options:

OPTION #1: Loan To Self From 401K (EASIEST OPTION)

1.) Login to your 401K online or call.

2.) Look for or request transfer option. Max is usually $50K, but may be increased to $100K due to COVID.

3.) Schedule a way to pay yourself back at 5% interest over 5 years.

It takes about 3 days to process. There are no tax implications. This does not show up on your credit. terms are non-negotiable except for the amount of the loan.

OPTION #2:  Traditional IRA with a Custodian 

1.) If the client has a 401k with their respective company/custodian, they will need to contact that custodian directly and tell that they plan to transfer X amount into a traditional IRA managed by another entity.

2.) Once that allocation is determined, the client has the ability to choose from a number of IRA platforms. We use the Iplan Group. Our contact, Lindsay Cipriano, can reached by phone at (440)-484-5566 or email at LCipriano@iplangroup.com. The client will need to sign off on having this capital moved from their 401k/retirement account. 

3.) The Iplan Group (or another IRA custodian) will then send the client a new account investment kit as well as a transfer form. These forms need to be executed in order to run this capital through the platform (and to maintain compliance).

4.) The 401k custodian will either send the client a check or wire the money directly to the Iplan Group (some banks require that the check be mailed to the client directly, while others are fine with wiring it direct).

5.) Once this capital is received on the Iplan Group platform and all documents are signed, the client will need to provide the Iplan Group with all of the documents associated with the investment (operating agreement, subscription agreement, etc).

6.) The Iplan Group will then sign off on/approve these documents and wire the capital into the fund/investment. (TOTAL COST OF ALL OF THIS IS $450 ON THE IPLAN PLATFORM, WHICH INCLUDES WIRE FEES).

The process takes about 2 weeks from start to finish. Let me know if I can answer any questions. 

OPTION #3: Solo 401K for Self-Employed Entrepreneurs (Bypass/No Custodian)

1.) Schedule a 15-minute 1-on-1 with Dmitriy Fomichenko‌ of Sense Financial at the link below:

https://go.oncehub.com/dfomichenkotakes

You can also email him at contact@sensefinancial.com or call (949) 228-9394

2.) Prior to your call watch a 30 minute education video: https://www.sensefinancial.com/introduction-self-directed-ira-webinar

It takes about 1 week. The cost is $1000 upfront + $200/year for customer support, documentation, and interfacing with the IRS.

OPTION #4: Checkbook (Self-Directed) IRA  (Bypass/No Custodian)

1.) Schedule a 15-minute 1-on-1 with Dmitriy Fomichenko‌ of Sense Financial at the link below:

https://go.oncehub.com/dfomichenkotakes

You can also email him at contact@sensefinancial.com or call (949) 228-9394

2.) Prior to your call watch a 30 minute education video: https://www.sensefinancial.com/introduction-self-directed-ira-webinar

It takes about 1 week. The cost is $2000 upfront + $150 for bypass custodian (Solera Bank in Colorado) + fee for LLC formation depending upon your state.
Q10: Can I invest if I have bad credit?
Yes. Whereas your credit is a major factor when trying to buy real estate on your own, your credit is not a factor when it comes to investing in a fund. The only thing you need to invest in a our fund is liquid capital and patience.
Q11: How do I get paid as a debt investor?
Again, this option is only available for investing $20,000 or more.

Debt investors get paid interest quarterly. The fund officially begins on July 1st, so payments will be January 1st, April 1st, and July 1st.

The debt will be paid in full upon us refinancing the properties in the portfolio. 
Q12: How do I get paid as an equity investor?
Equity investors get paid in 4 ways:

1. When we receive historic tax credits upon completion of construction.
2. When we refinance the properties into 30-year mortgages with Fannie or Freddie
3. When we receive cashflow from rents (paid by the fund to you quarterly)
4. When we sell the properties you benefit from appreciation and principal pay down over time

When we start receiving rents, you will be paid from cash flow or profits quarterly. The fund officially begins on July 1st, so payments will be January 1st, April 1st, and July 1st.
Q13: How can I see the pro formas?
There a seven pro formas, one for each property. The proformas show our sources, uses, projections, and cash flow for each deal.

Click here to download the zip file (upload date: 5/22/2020)
Q14: What happens if you don't reach your fundraising goal?
The fund will still go forward. We will release properties that we only have MOUs on like The Eddie Robinson Project and Scotlandville Development down to what we raised.
Q15: What are historic tax credits?
Recognizing the cost associated with rehabilitating historic buildings, the Historic Tax Credit provides a 20% income tax credit to developers of income producing properties such as office buildings, retail establishments, rental apartments, and others. There are both federal and state historic tax credits based on QREs (qualified restoration expenditures). The program is administered by the National Park Service and the IRS in partnership with State Historic Preservation Offices.

National Park Service Deputy Director P. Daniel Smith. "Over the past 40 years, this successful federal/state partnership has enabled the preservation and rehabilitation of more than 43,000 historic properties, while generating more than $144 billion in private investment along the way." 

The 40 year impact of this program is residential and economic. On the residential side, it has resulted in 278,270 Rehabilitated housing units,  289,933 new housing units, 160,058 Low - and moderate-income housing units. From an economic standpoint, it has led to $89.97 billion in rehabilitation investment, 43,328 historic rehabilitation projects certified, $144.6 billion in rehabilitation investment, 2.5 million jobs, $159 billion is gross domestic product: $158 billion, and $116 billion in income created.
Q16: What if the government ends historic tax credits?
As of 2020, the Federal Historic Preservation Tax Incentives Program celebrates its 40th year. It was renewed as a part of the 2018 Tax Cuts & Jobs Act which does not expire until 2025. The program honors any development completed by 2025. We will be finished with this fun in 2021.
Q17: Who holds you accountable?
Gainvest Holdings serves as the financial intermediary between the fund and its investors. Gainvest Holdings holds us accountable to makes sure there is transparency throughout the process.

We will also be documenting the journey every step of the way through our Facebook Group at http://www.howtobuytheblock.com.
Q18: How does the coronavirus impact this investment?
Our only concern regarding coronavirus is our commercial spaces. Obviously, brick-and-mortar businesses are taking a hit and they are locked into how their real estate is setup.

Since we have 18,000 square feet of empty commercial space on  Government Street, we have the freedom to design corona-friendly or corona-proof business models such as a cloud kitchen, wash & fold laundry, or drive-in movie theater.

On the residential side, coronavirus is driving prices down making it cheaper for us to acquire properties. We will also have a bigger and better tenant pool to draw from as our workforce housing units will be new and well -priced. 

And we expect to see people flock from more expensive markets like New Orleans to markets like Baton Rouge where the cost of living is lower as income becomes more portable with more companies moving toward working from home.
Q19: What are the biggest risk factors with this deal?
The two greatest risk factors are complete national economic downturn due to the nation being unable to recover after the coronoavirus and a natural disaster like Hurricane Katrina. To address economic downturn, we are identifying corona-proof or corona-friendly business models for our commercial spaces. In terms of residential, we are creating workforce housing, not high end housing which will get hit hard. Our low cost-basis and the historic tax credits allow us to make this deal work despite the economy. In regards to a natural disaster like Katrina, we are fully insured in the event that our properties were to get damaged, but none of them are in flood zones.
Q20: Which properties are in the fund?
Electric Depot Phase II: Centered on the revitalization of a 42,500 sq.ft electrical power plant within Baton Rouge’s Mid-City neighborhood. The current ownership is providing an opportunity to invest in the second phase of this project, which will construct an additional 120 residential units behind Electric Depot Phase 1.

1124 S. 14th Street: This historic duplex is located next door to our office and was featured in The Green Book. We will rehabilitate the front duplex and add 2 additional units in the rear.

558 Eddie Robinson: This is a spacious vacant lot right off of Government Street where we will be able to develop 8 new multifamily units which we like to sell to new homeowners in the community.

The Lincoln Hotel: The Lincoln Hotel project is a 12,000 sq.ft, landmark that housed African-American celebrities such as Aretha Franklin and Nat King Cole during the segregation era. Located in the Mid-City neighborhood of Baton Rouge, this historic structure will be developed into 13 residential units with ground floor restaurant space.

Government Village II: The Government Village II development will consist of a new construction multi-family development of 60+ apartments. This property is adjacent to the Government Village I project as well as Baton Rouge Community College.

Southern Heights Housing: This 60-unit apartment complex is due for redevelopment. Scotlandville has yet to see a new development in over 30 years. We will turn this into workforce housing and potentially establish a partnership with Southern University which is minutes away for student housing.
Q21: Do The 4.5% Buy Back The Block come from me or the fund?
The crowdfunding option is more expensive for you because of all the SEC paperwork and back office things Buy Back The Block has to do. The 4.5% comes off the top of your investment. If you put in $10,000 through the crowdfunding route, it will only count as $9,550. You will still get a good return, but that's why we prefer that you go the Gainvest Holdings route.
Q22: Will investing in this affect my ability to get FHA financing for my multifamily?
Investing would not affect your FHA. It will not show up on your credit report. The only way it would affect your FHA is if you invested the down payment and reserves you need for your FHA loan.
Q23: How are profits split investors (limited partners) and developers (managing partners)?
The preferred return of 6% indicates that limited partner investors are entitled to 100% of incoming capital until this threshold is met. All returns beyond the 6% preferred return will be split 70/30 with the limited partner investors receiving 70% of those returns (hence the 15% target).
Q24: How do Anthony, Jullien, & their team get paid?
We get paid through fees. These fees are to account for our time and expertise being focused on getting you your return. Our target 15% return has already accounted for these fees in our pro forma.

In terms of the fees, the asset management fee of 2% is the only fee charged across al capital in the fund. All of the other fees occur at the deal level. The property management fee of 7% is deducted from the annual gross receipts from annual operations (rental payments) and the development fees of 6% are integrated into our construction projections, SO THEY DO NOT AFFECT YOUR PREFERRED RETURN. The same applies for the acquisition fee of 1.5% which also occurs at the deal level.
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