realtywealth - corporate backed real estate crowdfunding investment - net lease investing nnn

MAKING NET LEASE INVESTING SIMPLE AND MORE AFFORDABLE

Private & Confidential

This presenta,on, furnished on a confiden,al basis to the recipient, is neither an offer to sell nor a solicita,on of any offer to buy any securi,es, investment product or investment advisory services, including an interest in the RealtyWealth holding company or RealtyWealth.com (“RealtyWealth”) or the management company. This presenta,on is subject to a more complete descrip,on and does not contain all of the informa,on necessary to make an investment decision, including, but not limited to, the risks, fees and investment strategies of the company. Any offering is made only pursuant to the relevant informa,on memorandum, together with the current financial statements of the company, if available, and a relevant subscrip,on applica,on, all of which must be read in their en,rety. No offer to purchase interests will be made or accepted prior to receipt by an offeree of these documents and the comple,on of all appropriate documenta,on. All investors must be “accredited investors” and/or “qualified purchasers” as defined in the securi,es laws before they can invest in RealtyWealth real estate offerings. This presenta,on is not an adver,sement and is not intended for public use of distribu,on and is intended exclusively for the use of the person to whom it has been delivered by RealtyWealth. This presenta,on is not to be reproduced or redistributed to any other person without the prior consent of RealtyWealth.

Disclosure

Affordable NET LEASE Inves,ng


REALTYWEALTH.COM – SIMPLE, AFFORDABLE COMMERCIAL REAL ESTATE INVESTING •  Democra,zing Commercial Real Estate’s best kept yield play secret* •  Disrup,ng an intermediary rich, fee-‐layered pillar of ins,tu,onal investment

ü  Investment pla^orm that introduces STNL Inves.ng* as “new investment class” to 8.7M accredited investor households and millions of cap,ve foreign investors

ü  Portal that makes commercial real estate inves,ng simple and more affordable ü  Central marketplace for property owners and investors to transact ü  Proprietary digital technology creates an interac,ve, paper-‐free investment

environment -‐ with por^olio monitoring, management, payments and tax documents * Single Tenant Net Lease Inves.ng -‐ Own a part of a credit rated Starbucks, MacDonalds or

Walgreen’s lease -‐ backed by the UNDERLYING property AND corporate guaranteed contract….. AND earn 6 -‐ 10% per annum


Executive Summary



The Market TRIPLE NET LEASE INVESTMENTS -‐ $13 BILLION PER ANNUM TRANSACTIONAL VALUE (AND GROWING)! ü  Currently dominated by REITS, Ins,tu,onal Funds and High Net-‐worth Investors due

to high entry level pricing of assets ($1M -‐ $30M per property) ü  Safe and Secure investment. Long term lease backed by both underlying property

AND corporate guaranteed tenant paying 6 -‐ 10% (Cap Rates) per annum ü  Larger market size than the Industrial AND Office Building Real Estate sectors

THE PLAYERS ü  SELLERS: Business owners / Property owners and Developers ü  BUYERS: Investors (Accredited and Foreign investors)


The Need


IN AN ENVIRONMENT OF 1% MONEY MARKET RATES*, STRATOSPHERIC STOCKS AND VOLATILE REITS -‐ 99% OF US INVESTORS ARE UNAWARE THAT SAFE, COLLATERAL BACKED AND CORPORATE GUARANTEED INVESTMENTS EXIST -‐ THAT OFFER 6% TO 10% YIELDS! ü  Commercial real estate and net lease inves,ng is generally expensive and unaffordable to the majority

of US investors ($750,000+ required per transac,on) ü  Commercial real estate is fragmented, mul,ple fee-‐layered and inefficient ü  Investors have variety of op,ons to choose from when inves,ng in stocks and bonds but few ways to

access individual commercial real estate investments ü  Investors don’t have the networks to access quality proper,es ü  Investors don’t have level of access to large sums of money required to par,cipate in commercial real

estate (minimum $100,000) ü  Commercial real estate is management intensive whereas net lease real estate is passive and requires

liple or no management (tenant pays expenses incl. maintenance, insurance etc.) ü  REIT’s invest in a pool of commercial proper,es rather than a specific, recognized or regional property REALTYWEALTH.COM offers investors a sense of tangible ownership and choice

* US 7.3 trillion siqng in savings and money market deposit accounts in US financial ins,tu,ons earning less than 1% per annum. Federal Reserve Data by Moebs Services


The Opportunity AN ONLINE MARKETPLACE THAT MAKES COMMERCIAL REAL ESTATE INVESTING SIMPLE, HIGHLY ACCESSIBLE AND EXTREMELY AFFORDABLE TO AVERAGE INVESTORS* ü  Introduce Net Lease Inves,ng to 8.7M accredited household investors in US ü  Democra,ze the commercial real estate investment process ü  Make commercial real estate inves,ng highly accessible and extremely

affordable by providing “tangible ownership” to this new investor pool ü  Streamline the process for investors making it more efficient to invest in Net

Lease real estate in the US (we do heavy liring for investor) ü  Make ins,tu,onal quality commercial real estate with credit rated tenants

available to a significant number of smaller accredited investors ü  Make commercial real estate inves,ng in the US available to large numbers of

Foreign Investors seeking US$ assets and income paying TWICE to THREE ,mes treasury yields



* Investments currently only available to Accredited and Foreign Investors

The Net Lease Opportunity WHY TRIPLE NET LEASE PROPERTIES ARE COMPELLING INVESTMENTS ü  High return rela,ve to the low risk investment ü  Opportunity for growth in both cash flow and valua,on of property due to long

term leases (8 – 20 years) with contractual rental bumps (escala,ons) ü  Predictable returns due to tenant lease responsibili,es ü  Ability to access debt financing (up to 65%) due to strong, predictable cash flows

and credit rated tenants ü  Growth in rent and ownership of real estate assets strong hedge against infla,on



The Numbers NET LEASE INVESTMENTS ü  $13 Billion Per Annum Market ü  70% of transac,ons in $1mm to $5mm range REALTYWEALTH FINANCIAL EXPECTATIONS ü  1% of $13B net lease market by end 2015 ($130mm) ü  3% of $13B net lease market by end 2017 ($450mm)


Note: This financial model is for discussion purposes only and actual results may vary. RealtyWealth targets 50% leverage levels (debt). However, overall por^olio leverage may vary at different points of ,me. Management es,mates 4% closing costs of total purchase price.


The Competitive Advantage



INVESTMENT FOCUSSED: ü  Simple, accessible and affordable to millions of US and foreign investors ü  Typically single-‐tenant, free standing buildings in the $1mm -‐ $5mm range (we

have UHNW investors and Family Office looking for deals up to $15mm ü  Structured for variety of industries (retail, specialty office, medical) ü  Long term leases – typically 8 to 20 years, providing long term, stable income

streams for investors ü  Building and/or loca,on usually integral to business opera,on, which can’t easily

be moved or replicated ü  Our sector -‐ $1mm to $5mm proper,es -‐ makes up 70% of all transac,ons INVESTOR FOCUSSED: ü  Introduc,on as new asset class to US accredited investors ü  South African investors looking to hedge deprecia,ng currency AND get yield ü  Key marke,ng rela,onship with largest Interna,onal Real Estate portal in China ü  Par,al commercial property ownership – core founda,on of American Dream ü  HNW investors typically inves,ng between $200,000 and $900,000 per deal

Competitors

REALTY CROWDFUNDING:


Compe&&on Investment Amount

Focus

Realty Mogul $5,000 Cash-‐flowing residen,al/commercial real estate including mul,-‐family, retail, office and self storage.

Fundrise $5,000

Investment in local communi,es, earning profits while becoming socially involved

Realty Shares $500 Investment in commercial real estate, apartment buildings and homes

iFunding $1,000 Investment in mul,-‐family, hospitality, office and residen,al proper,es paying dividends every 6 months

Ground Floor $100 Direct investments in real estate projects to benefit developers, savers and investors in Georgia state.


* Over $700M has been raised by Real Estate Tech Startups since 2012 with the three dominant peer sites each boas,ng $100M+ post Series A valua,ons.

The Value Proposition - Clients 4 – CLICK COMMERCIAL REAL ESTATE INVESTING ü  Fully integrated online pla^orm for making and managing investments,

returns and tax documents ü  Investors able to review projects, fund investments and track them securely

online through our extensive investor dashboard ü  Investors can access investment graphs, earnings and monthly statements

including legal and tax documenta,on all through SSL pla^orm connec,on ü  Investors enjoy the convenience of RealtyWealth’s state of the art

technology while maintaining the ability to access ins,tu,onal quality Net Lease investment opportuni,es for as liple as $5,000.

ü  Paper-‐free company – electronic signatures and online agreements



The Value Proposition - Investors STATE OF THE ART WEB BASED INVESTMENT PLATFORM

ü  Proprietary owned technology expandable in other countries and industries ü  Fully integrated online pla^orm and investor dashboard paper-‐free process:

§  electronic signatures §  online agreements §  por^olio monitoring tools §  cashflows and dividends §  tax informa,on etc.



Go to Market Strategy SALES AND DISTRIBUTION CHANNELS ü  Business owners elect to lease or own proper,es as a financing decision ü  Tenants generally choose to maximize their returns by focusing their capital on the

opera,ng business (exper,se), leaving predictable, lower returns or real estate ownership to landlord (sale and lease backs)

ü  Partnering with commercial real estate developers ü  Partnering with commercial real estate brokers INVESTOR CHANNELS ü  US Accredited Investor databases – 8.7MM investor households ü  South Africa – Johannesburg Stock Exchange (JSE) database – 2.6MM investors ü  Partnership with Largest Interna,onal Real Estate Portal and Market Leader in China ü  Broker networks and database ü  Social Media and PR (JOBS Act – allows solicita,on and marke,ng to investors*)


* US Investor status as an accredited and/or qualified investor is required to be verified


Go to Market Strategy INTERNATIONAL DISTRIBUTION AND INVESTOR CHANNELS



The Team BRYAN SMITH ü  Goal-‐orientated real estate professional with more than ten years’ experience at an execu,ve level,

including CEO of public listed real estate company with over 1,000 employees. ü  Project involvement includes mul,-‐unit residen,al, health and leisure to commercial and retail property

developments. ü  Proven ability to nego,ate with financial ins,tu,ons with over $330 million of capital fundraising (debt

and equity) raised through banks and other financial ins,tu,ons for commercial property and development projects over past five years.

SAM VOGEL ü  Interna,onal equity, commodity and deriva,ves expert that has extensive, broad-‐based experience within

the interna,onal hedge fund, equity and commodity deriva,ve markets. ü  Background includes establishing equity and equity deriva,ve trading opera,ons for two of the largest

banks in South Africa including an interna,onal merchant bank and heading efforts on an ins,tu,onal Energy Deriva,ve brokerage desk in the USA.

GEORGE GEORGIADES ü  Experienced securi,es aporney in New York. Counsels crowdfunding portals, corporate issuers,

investment funds, investors, underwriters and placement agents in the United States and interna,onally on a wide range of commercial and capital forma,on transac,ons.

ü  He serves as legal counsel to numerous startup companies and new ventures in all stages of development from incep,on, seed financing, venture capital financing, commercial agreements, shareholder agreements to merger or sale.



Funding and Offering SEED CAPITAL REQUIREMENT: ü  The business has the ability to expand geographically into UK, Europe and

South African commercial property and lending. Interna,onal CONDUIT. ü  There are other expansion opportuni,es using the investment pla^orm and

technology within the commercial real estate (CRE) and other industries including: –  Debt Funding –  Real Estate Development Funding –  P2P lending –  Energy and Gas



Contact BRYAN SMITH SAM VOGEL Mobile: +1 941 870 5585 (US) +1 713 449 6202

+27 83 300 8888 (SA) e.mail: [email protected] [email protected]



Annexures



How Investing with RealtyWealth works?



“4 – CLICK” COMMERCIAL REAL ESTATE INVESTING

Step 1 -‐ Setup Your Accredited investor Account Sign-‐up and register – its free and easy. Once you have registered and have been verified, you will have access to all our exc lus ive, pre-‐veped Net Lease investment opportuni,es.

Step 2 -‐ Browse and Select Net Lease Investments Registered investors can securely browse our marketplace and investor dashboard, offering detailed Net Lease opportuni,es and investments.

Step 3 -‐ Confirm and Finalize your Net Lease Investment When you are ready simply click the investment opportunity and start inves,ng. We are essen,ally a paper-‐free pla^orm and all investment and legal documents are electronically signed through our secure investment pla^orm and funds transferred to our escrow account*

Step 4 -‐ Manage Your Net Lease Investments Online Our investors have access to our extensive and secure investor dashboard and all investments and returns can be tracked online with regular updates being given including new investment opportuni,es.

* Each investment is purchased in an SPV LLC or DST and has a targeted funding goal. Un,l this goal is achieved, our investor’s funds remain in safe and secure in escrow in an FDIC insured bank account. As soon as the goal is achieved, funds are released from escrow and the investor will own a share of that specific Net Lease property. If the goal is not achieved, 100% of our investor money is returned.

Paper Free Company – Electronic Signatures



Extensive Investor Dashboard



Pre Packaged Comprehensive Investor Information



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