a real estate crowdfunding source guide to ......1 today, new arizona statutes have opened real...

A REAL ESTATE CROWDFUNDING SOURCE

Guide to Crowdfunding:

Tremaine Drive CHR

Volume

3

Table of Contents

Table of Contents

Disclaimer: ................................................................................. Tremaine Drive CHR: PhixNPhlip is offering

Total Interests available: 525 @ $1,000 each = 525,000 .......... 3

Comparative Market Analyses .................................................. 4 Tremaine Drive CHR: The Project Details ................................ 6

About the Company ................................................................. 8

Description of Offering .............................................................. 8

Description of The Project: ....................................................... 9

Description of Interest(s) ........................................................ 10

Use of Offering Proceeds ....................................................... 11

Budget.................................................................................... 12

Plans for Term and Distribution .............................................. 12

Business Strategy .................................................................. 13

Investor Suitability Requirements ........................................... 13

Ready to Invest In AZ Real Estate? ....................................... 14

It’s an easy 5 minute process to Sign Up: .............................. 14

Frequently Asked Questions .................................................. 15

Disclaimer:

The information provided in this E-Book is for informational and educational purpose only and should NOT be considered Investment advice, legal advice, tax advice or any type other advise.

PhixNPhlip LLC is not a registered investment firm or Broker –Dealer.

The information offered in this presentation is not a representation or a solicitation for the purchase or sale of securities.

The opinions and information contained in this material is based on sources believed to be reliable and are written in good faith, but no Representation or warranty, expressed or implied, is made as to the accuracy or completeness.

PhixNPhlip LLC shall not be liable for any loss, monetary or otherwise, that may occur from your reliance on the information presented.

Although there are many benefits to crowdfunding, there are RISKS associated in a crowdfunding investment, as there are in any Real Estate Investment opportunity. Please be sure to do your due diligence before investing.

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Today, new Arizona statutes have opened real estate to crowdfunding. Until recently, real estate investment was the realm of moguls and Millionaires. Now, you can be a part of Arizona’s growth, even if you only have $1,000 to invest.

PhixNPhlip is an Equity Real-Estate crowdfunding source offering shares to Arizona residents seeking to invest $1,000 - $10,000 in local residential real estate. We use today’s technology and data-driven processes to create transparency and efficiently underwrite projects that we are already doing. Allowing our investors to diversify capital, PhixNPhlip offers investors a share of the project.

Our goal is to reach 12% - 18% annualized return, have periodic liquidity and have a number of projects for investors to choose from.

We are very excited to present our 3rd crowdfunding offering in Arizona: Tremaine Drive CHR. We are offering up to four hundred thousand dollars ($525,000) in Secured Participating Preferred Non-Voting Membership Interests.

We Own the asset, in fact our confidence is so great on the Tremiane Drive CHR project that we will fund the project with or without the crowdfunding capital. In addition, the structure detailed below is such the preferred return to (you) the investor, is paid before we get our success fee!

Opportunity is knocking, be a part of your community’s change with

PhixNPhlip real estate crowdfunding.

P H I X N P H L I P . C O M | ( 6 0 2 ) 6 9 4 - 3 6 7 7 | P H I X N P H L I P @ G M A I L . C O M

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Opportunity to passively invest Local Arizona residential real estate market. Preferred Return after expenses before any profit or Sponsor participation PLUS on Equity projects, Profit participation after Initial Sponsor Participation No Fees, Quick, Easy sign up process takes less than 10 minutes Digitally sign documents securely online via 3rd party escrow service. You can minimize risk by choosing diverse deals to invest in for as little as

$1000. 24/7 Access to your investment Regular project updates. Real estate market trend updates Diversifying into residential real estate has never been this easy or this fun!

Tremaine Drive CHR: PhixNPhlip is offering up to $525,000

in; Secured Participating Preferred Non-Voting Membership

Interests.


3

Offer: 8% Preferred Interest (Prior to Sponsor participation) Plus 30% NET Profit share (After Sponsor participation of 35K)

Total Interests available: 525 @ $1,000 each = 525,000

The offering may close any time between the minimum being raised and September 25th, 2019. This offering is limited to Arizona Residents.

Estimated distribution closing: 2/2020

Each Interest shall receive a preferred return based on a 8% annual rate (“Preferred Return”), accrued from the closing of the offering to the sale & distribution of the proceeds, if any, upon the re-sale of the House and the winding down of The Project. In addition to the 8% preferred return, the Interests will collectively receive forty percent (30%) (“Equity Participation”) of the net profit above the first $35,000 (“Base Profit”) of profit, if any, prorated to their percentage participation.

The Equity Participation is subordinate to the Base Profit, which is subordinate to the Preferred Return, which is subordinate to paying all of the expenses of The Project. The offering memorandum provided after signing up to be a subscriber will detail all expenses.


4

Comparative Market Analyses

The Crowdfunding Investment Structure is based on expectations of what we believe is a reasonable range of comps (see below) for the sale of Tremaine Drive CHR.

The Crowdfunding Investment Structure we have provided shows three final liquid sale price scenarios (see below). As an example, the return on $1000 was calculated using 3 different resale value scenarios.

Scenario 1- Sale price of $612,000 would generate $34 in preferred return at a 8% preferred annual interest rate and profit participation return of $0.

Resulting in a 3.44% return annualized to 11.67%.

Scenario 2- Sale price of $650,000 would generate $34 in preferred return at a 8% preferred annual interest rate and a profit participation return of $6.62.


Scenario 3- The third scenario is at a sales price of $688,000, so a $1000 investment will generate $34 in preferred return at 8% preferred annual interest rate and a profit participation return of $37.



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6

Earll Drive PHX: The Project Details

Starting with the acquisition of the property on January 28 ,2019 with a purchase price of $313,322, the designs and layout were discussed, and architect designs began on March 19, 2019 for a cost of $7,500. Next, the mechanical, plumbing and electrical design were added to the plans. Followed by the structural engineering plan, in April of 2019. The estimated costs for construction and management are about $175,000 for a total estimated cost of $520,122.

The resulting home will feature:


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The resulting home will be approximately 2,200 square feet, with 4 bedrooms, 2 bathrooms, and a 2 car garage. The Great Room will open to a spacious kitchen with Dining Room and island. The Kitchen is strategically located with direct access to the laundry and mechanical room, and garage. The master bedroom will be tucked away in the back amd have a large walk-in closet. The 3 additional bedrooms and guests will share the other bathroom.


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About the Company

Shane is the owner & manager of the Company. He is also a residential and

commercial Realtor® working with sellers, buyers, & real estate investors in the

Phoenix Metro area. His license number is SA585717000 and you can find

significant more information regarding his designations, affiliations, and tenure at

www.AZDRE.com. At Realtor.com you can also go to the “Find Realtors” section

to peruse additional information. Shane professionally has been active in real

estate in Arizona & the Western United States for over 20 years.

As stated previously, Shane has collaborated with Woodglen in the past and

Woodglen is 100% owned by Joe. Joe is also acting as the Business Manager

for the Company. Joe is a serial entrepreneur who has consulted to, invested in,

set-up partnerships for and both reorganized and liquidated operating companies

and real estate projects in Arizona & the Western United States, since 1985.

Together Shane and Joe have been involved in starting companies related to

real estate, construction, and mortgage banking. They have collaborated in the

takeover and reorganization of several companies and they have collaborated in

a large condominium assemblage, attempted reorganization and liquidation.

They have participated in over $250 million in real estate transactions as the

buyer or the direct lender through their joint ownership and participation in past

partnerships. Those partnerships have purchased and sold well in excess of

2500 homes in the Phoenix Metro area & hundreds more in the Western United

States since 1998.

Description of Offering

Phix Properties, LLC (“Company”) is offering up to five hundred twenty five thousand dollars ($525,000) in Tremaine Drive CHR Secured Participating Preferred Non-Voting Membership Interests (“Interest(s)”) to finance the purchase, demolition, reconstruction and sale of the house at 373 E. Tremaine Drive, Chandler, AZ 85225(“House”). After the House is purchased, then the process of planning, demolishing, reconstructing, marketing, and selling the House will begin (the tasks collectively called the “The Project”). The minimum investment is $1,000 and is also the price per Interest. There is no maximum investment, except as described in the section herein regarding Suitability Requirements. The proceeds of this offering will be held in an Escrow Account at FundAmerica, aka Prime Trust, 330 S Rampart Blvd., Suite 260, Summerlin, NV 89145. The offering may close September 4, 2019 or at any time the offering of $525,000 is met. This offering is limited to Arizona Residents.


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Description of The Project:

The House has already been acquired by Woodglen & the Company anticipates acquiring the House from Woodglen upon the completion of this offering. The Company under an Option Agreement with Woodglen to purchase the House from Woodglen, again, assuming completion of the offering. The Option Agreement gives the Company the right to purchase the House at Woodglen’s cost plus its’ expenses put forth to keep The Project moving. The Company, with Woodglen’s financial assistance, has hired architects, professionals, contractors, and will use Shane as a Realtor® exclusively to sell the House upon complete renovation. The acquisition, completed January 28, 2019 by Woodglen, has allowed the Company to pursue architectural design & engineering professionals to increase the square footage, redesign & update the structure, plus has met & engaged a contractor to do the work. It is anticipated that building permits from City of Chandlershould be obtained byAugust 31, 2019, demolition permits may be obtained byJuly 30, 2019, that the construction period should be 75-90 days, and that the House may be sold The end of the Summer 2020, completing The Project.


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Description of Interest(s)

The Interests will become a secured lender to the Company for the purchase of the House and eventual expected completion of The Project. Their position of security is herein described below in Collateral. The exact collateral and the exact security cannot not be completely defined until the offering is completed, therefore the section below named Collateral will clarify the likely scenarios. Each Interest shall receive a preferred return based on a 8% annual rate (“Preferred Return”), accrued from the closing of the offering to the sale & distribution of the proceeds, if any, upon the re-sale of the House and the winding down of The Project. In addition to the 8% preferred return, the Interests will collectively receive forty percent (30%) (“Equity Participation”) of the net profit above the first $35,000 (“Base Profit”) of profit, if any, prorated to their percentage participation. The Equity Participation is subordinate to the Base Profit, which is subordinate to the Preferred Return, which is subordinate to paying all of the expenses of The Project. So two examples, without consideration to exact budget or market conditions might be as follows: Assuming an approximate eight month holding period after acquisition and funding, and then a sale for either a profit or close to a breakeven:

Assuming a Profit

Gross Costs before Sale

520,122

Sale Price

(650,000)

Sales Costs (3rd Parties)

37,375

Gross Profit

(46,586)

Base Profit (Company)

35,000

Equity Participation (Interests)

3,476

Equity Participation (Company)

8,110

NET BALANCE (split)

46,586


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Assuming a Loss

Gross Costs before Sale

520,122

Sale Price

(612,000)

Sales Costs (3rd Parties)

35,190

Gross Profit

10,711

Base Profit (Company)

10,771

Equity Participation (Interests)

-

Equity Participation (Company)

-

NET BALANCE

10,771

As you can see, if we sell the Project for less than approximately $612,000, then in all likelihood the Preferred Memberships will not get a return and they will lose money. You should also keep in mind that part of the Preferred Return may be eaten up in interest to Woodglen to bridge the project from now to the end of funding.

Use of Offering Proceeds

The Company intends to use the proceeds from the sale and issuance of its securities for the following purposes:

1) To purchase the House

2) Closing costs & Buyer Agent commissions

3) To hire architect, structural engineer, & electrical mechanical engineering

4) Get demolition permits & hire general contractor to do the demo & renovation

5) To get permits from utility companies and the City of Phoenix for work needing completed

6) To complete the renovation

7) To market the property

8) To tender sales concessions in selling the property

9) And to close the sale of the property

10) To account & administer The Project & this offering


12

Budget

General Costs Budget Sells Project

Acquisition & Bridge

313,322

Professionals

16,900

Permitting & Septic

14,900

Construction Budget

175,000

Carrying Costs (Preferred)

43,417

Sales & Marketing

26,980

Other Costs & Concessions

10,710

TOTAL COST OF PROJECT:

$601,229

Five hundred twenty thousand dollars ($520,000) of the above budget will be the expenditure of the funds from the Offering. The remainder will be paid at or after the close of escrow.

Plans for Term and Distribution

The Interests are being offered with a maximum aggregate amount of $520,000.The funds will be held in an impound account at a bank or similar financial institution. We have described herein in The Project throughout many of the sections. We have discussed a general timeline of certain specific event in the section titled Further Description of The Project, including a sale Summer of 2020. There are many events that can occur which may change the term and distribution. However, we believe that to be successful, generally it should take less than a year to complete the offering, assuming success, and then remodel, market & sell the home. We would anticipate then just one calendar year to invest, repair, sell, close-out, & distribute proceeds, if any. The financial institution serving as depository for the impound account has not passed on the merits or qualifications of, nor has recommended or given approval to, any person, security or transaction.


13

Business Strategy

Our model is fairly simple and straightforward. Acquire, remodel and sell the house.

Investor Suitability Requirements

General

Investment in the Securities is highly speculative, involves significant risks, and is suitable only for persons of adequate financial means who have no feed for liquidity with respect to this investment and who can bear the economic risk of a complete loss of their investment. This offering is made in reliance on the intrastate offering exemption safe harbor of Rule 147, 147A and Section 3(a)(11) under the 1933 Securities Act (“the Securities Acts”) and the Arizona Exemption for Intrastate Crowdfunding Offerings under A.R.S.§44-1844(D). The suitability standards discussed below represent minimum suitability standards for prospective investors. The satisfaction of such standards by a prospective investor does not necessarily mean that the securities are a suitable investment for prospective investor. Prospective investors are encouraged to consult their personal financial advisor to determine whether an investment in the Interests is appropriate. The Company may reject subscriptions, in whole or in part, in its absolute discretion. For example, the Company may reject a subscription from an otherwise qualified potential investor who is a competitor or who otherwise has interests adverse to the Company. We expect that the review of potential investors will take 1-4 weeks. If a subscript is not accepted, the funds will be returned promptly. The Company will maintain records demonstrating compliance with these suitability standards for at least 4 years. Specific Suitability

The minimum suitability requirements for Preferred Members are as follows: 1) they have received an Offering Memorandum for these interests

2) they understand that this is a risky investments & they can lose 100% of their

investment

3) they must be a resident of the State of Arizona

4) they must not invest more than $10,000 unless they are an Accredited

Investor

5) they cannot transfer the Interests to another party

The Company, in its sole & absolute discretion, may require other circumstances in order to accept a Subscriber to invest in the interests and become a Preferred Member.


14

Ready to Invest In AZ Real Estate?

It’s an easy 5 minute process to Sign Up:

Go to PhixNphlip.com and select Start Investing

1. Choose an available project from the Phoenix area map, select

Click for details

2. Review project details, including the investment structure.

3. Select Invest Now then you will be connected to secure online

3rd party escrow.

4. Establish Residency In order to qualify, all investors and

ventures must be based in Arizona.

5. Review Documentation; you’ll receive an Offering

Memorandum detailing everything you need to know.

6. Acceptance and verification that shares are secured.

Escrow Investments are held in a single escrow account in the

bank until minimum thresholds are met. There are no fees for the

escrow service and your investment can be accessed online 24/7.


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Frequently Asked Questions

Q: Can I invest as a Company or Trust?

A: Yes, when you click INVEST NOW, you will be directed to our third part escrow service. During the 1

st Step in setting up your investment there is an option to enter your company or trust name.

Q: Can I invest through my Self Directed IRA or 401K account?

A: Yes, if you have checkbook control of your account or are self-directed. When you click INVEST NOW, you will be directed to our third part escrow service. During the 4th Step in setting up your investment, there is an option to enter your IRA or 401K account information.

Q: What if I have a Financial Advisor?

A: We would be glad to communicate with or cooperate with your advisor(s). When you click INVEST NOW, you will be directed to our third part escrow service. During the 1st Step in setting up your investment, there is an option to enter your finical advisor contact information.

Q: What do I own?

A: You actually own a Preferred Membership in a limited liability company controlled by the Sponsor. You will get an electronically signed subscription agreement that shows all the details of your investment.

Q: I’m I investing directly in a property?

A: No, you are buying a security. You actually own a Preferred Membership in a limited liability company controlled by the Sponsor. You will get an electronically signed subscription agreement that shows all the details of your investment. If you would like to preview the agreement, please contact us via email and we can send you a copy.

Q: How am I going to get updated on the project?

A: Our plan is to give monthly updates via email once the minimum investment is reached & the first part of the project is funded. We suggest keeping up with the projects on our Facebook page or on our website www.PhixNPhlip.com as we will have updates available on these sites.

Q: How much do you charge for the investment?

A: We do not charge you for any fees or a platform service charge. No, there are no charges for our crowdfunding services.

Q: What if I have a question?

A: Call us Direct at 602-694-3677 or send us an email at [email protected]. To see more FAQs, visit PhixNPhlip.com.

https://www.facebook.com/PhixNPhlip/

http://www.phixnphlip.com/

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a real estate crowdfunding source guide to ......1 today, new arizona statutes have opened real...

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