EXECUTIVE SUMMARY
SUMMARY OF THE OFFERING
This summary highlights selected information contained in the Memorandum. It is not complete because it does not contain all the
important information you should consider in your decision whether to invest in Diamond Housing Group, LLC. To fully understand this
Offering, you should read the entire Memorandum carefully, including “Risk Factors” section.
OUR COMPANY
The Company a recently formed California limited liability company formed for the purpose of investing in single family residences and
multi family properties with less than 20 units throughout the United States, with a special emphasis on California, Arizona, and Nevada.
The Company goal is to raise a minimum of two hundred thousand dollars ($200,000) to a maximum of ten million dollars ($10,000,000);
when all ten thousand (10,000) membership units are sold (each called a “Membership Unit” and collective the “Membership Units”), at
an offering price of one thousand dollars ($1,000) per Unit. The money raised will provide the capital for purchasing the single family
residential homes, remodeling them if necessary, renting them to tenants, managing them, paying overhead and accounting expenses
and taxes, and finally selling the Properties (that is, the homes). When the Properties are sold (either individually or as one single sale of
all the Properties), the profits from their sale or sales will then be distributed to the Company’s Members.
The Company plans to use a variety of methods to locate and identify properties to purchase, including our agreement with USA Wealth
Institute, LLC, a bulk REO (bank owned) buyer and seller of foreclosure property, mortgage lenders, REO Managers, government
sanctioned entities, mortgage servitors, loan pools, loan servicers, other real estate brokers, banks’ loss mitigation departments, and
public information such as published Notice of Default ”NOD”) data.
Acquisition due diligence, a key factor before purchase and sale, shall be thorough and properly conducted by Management, using well
accepted, scientific methods. Because the Offering is liquid and well funded, we can close in thirty days or less. This will assure its ability
when acquiring properties, and reduce costs with shorter escrow periods.
The Company office is located at 3920 Birch Street, Suite 104, Newport Beach, CA 92660. The Company telephone number is (949) 261-
6117, the Company facsimile number is (949) 975-0547, or you can send the Company an email at info@preferredequitygroupllc.com, or
visit the Company website at www.preferredequitygroupllc.com.
PURPOSE OF THE OFFERING
The Purpose of this offering is to acquire Real Estate using today’s guidelines values and underwriting standards. The Company has
criteria established to acquire single family homes or single family residences or multi family units under specific acquisition criteria for
each market. The Real Estate acquisitions must meet the following criteria:
Outside California, Arizona, and Nevada the Company has adopted the following criteria:
The Company shall purchase in single family homes real estate, single family residential real estate and multi family unit real estate
throughout the United States, at no greater than fifty percent (50%) of an independent broker’s price opinion of today’s current value with
the following additional criteria:
These are the criteria at today’s price:
MANAGEMENT
Our Manager is Preferred Equity Group, LLC, a California Limited Liability Company (“Preferred” or the “Manager”) which was recently
formed for the purpose of managing the Offering for investing in single family residential real estate and multi family unit real estate. As
we have no outside advisor, our management is responsible for identifying and making acquisitions on our behalf which does include a
verified third party Independent BPO (Brokers Price Opinion) and physical inspection of each real estate acquisition. Management is
managed by Marc R. Tow, its Manager and Chief Executive Officer; and Janice Young, its Vice-President. You can reach any member of
the management team at the same address, telephone number, and email as the Company. The Manager owns one hundred percent
(100%) Class B Units in the Company.
ASSET MANAGEMENT
The manager of the fund shall receive compensation for the acquisition of real estate, the management of the real estate assets, real
estate property management a disposition fee for the sale of real estate. These fees shall NOT exceed industry standards in the markets
where the real estate is purchased. The manager will have a success fee for producing exceptional results and returns for the Investor.
This fee shall be fifty percent (50%) of the net profit after all investors shall receive their capital contribution and a twelve percent (12%)
per year preferred return on the initial investment.
OUR PROPERTY MANAGER
During the Organizational Stage of our Company, A third party will serve as the Property Manager for the Company. The third party
Property Manager will be Licensed and Bonded in accordance with State Regulations. The Property Manager will receive a Property
Management Fee from the rental income from the Properties equal to ten percent (10%) of the net rental income. Upon a sale of a
Property, the Property Manager shall receive additional compensation equal to the previous month’s Property Management Fee as
compensation for work to be performed in connection with the sale or completion of managing matters relating each Property.
REAL ESTATE BROKER
During the Liquidation Stage of the Company, Preferred will serve as the Real Estate Broker in connection with any sale, exchange, or
other disposition of the Properties. The Brokerage Fees will be paid in accordance to the terms of the purchase agreement with the
seller. These fees shall NOT exceed industry standards in the markets where the real estate is liquidated.
ESTIMATED USE OF PROCEEDS
Manager plans to devote Seventy Five percent (75%) of the proceeds of this offering to acquire and hold residential real property and
multi-family unit investments. We plan to target single family residences and multi-family units located throughout the United States with
an emphasis in California, Nevada, and Arizona. We will use the remainder of the offering proceeds to pay management fees, marketing,
rehabilitation and repair, operating capital, carrying costs, and other offering costs.
FOR MORE INFORMATION PLEASE CONTACT US
SUMMARY OF THE OFFERING
This summary highlights selected information contained in the Memorandum. It is not complete because it does not contain all the
important information you should consider in your decision whether to invest in Diamond Housing Group, LLC. To fully understand this
Offering, you should read the entire Memorandum carefully, including “Risk Factors” section.
OUR COMPANY
The Company a recently formed California limited liability company formed for the purpose of investing in single family residences and
multi family properties with less than 20 units throughout the United States, with a special emphasis on California, Arizona, and Nevada.
The Company goal is to raise a minimum of two hundred thousand dollars ($200,000) to a maximum of ten million dollars ($10,000,000);
when all ten thousand (10,000) membership units are sold (each called a “Membership Unit” and collective the “Membership Units”), at
an offering price of one thousand dollars ($1,000) per Unit. The money raised will provide the capital for purchasing the single family
residential homes, remodeling them if necessary, renting them to tenants, managing them, paying overhead and accounting expenses
and taxes, and finally selling the Properties (that is, the homes). When the Properties are sold (either individually or as one single sale of
all the Properties), the profits from their sale or sales will then be distributed to the Company’s Members.
The Company plans to use a variety of methods to locate and identify properties to purchase, including our agreement with USA Wealth
Institute, LLC, a bulk REO (bank owned) buyer and seller of foreclosure property, mortgage lenders, REO Managers, government
sanctioned entities, mortgage servitors, loan pools, loan servicers, other real estate brokers, banks’ loss mitigation departments, and
public information such as published Notice of Default ”NOD”) data.
Acquisition due diligence, a key factor before purchase and sale, shall be thorough and properly conducted by Management, using well
accepted, scientific methods. Because the Offering is liquid and well funded, we can close in thirty days or less. This will assure its ability
when acquiring properties, and reduce costs with shorter escrow periods.
The Company office is located at 3920 Birch Street, Suite 104, Newport Beach, CA 92660. The Company telephone number is (949) 261-
6117, the Company facsimile number is (949) 975-0547, or you can send the Company an email at info@preferredequitygroupllc.com, or
visit the Company website at www.preferredequitygroupllc.com.
PURPOSE OF THE OFFERING
The Purpose of this offering is to acquire Real Estate using today’s guidelines values and underwriting standards. The Company has
criteria established to acquire single family homes or single family residences or multi family units under specific acquisition criteria for
each market. The Real Estate acquisitions must meet the following criteria:
Outside California, Arizona, and Nevada the Company has adopted the following criteria:
The Company shall purchase in single family homes real estate, single family residential real estate and multi family unit real estate
throughout the United States, at no greater than fifty percent (50%) of an independent broker’s price opinion of today’s current value with
the following additional criteria:
These are the criteria at today’s price:
- The property is rentable or livable without significant renovations by the company.
- The monthly rental income is a minimum of .65% of the purchase price.
- The property is within six blocks of real estate selling at two times the acquisition price of our real estate.
- The crime rate is low.
- The properties are capable of qualifying for FHA and HUD loans.
- The repairs to the property are not greater than twelve percent of the purchase price.
- The purchase price is not greater than sixty five percent (65%) of the present independent broker’s price opinion.
- The value is based upon tax appraised, historical sales in the market, lender appraisals, and replacement costs.
- The rental income monthly is no less than .50% of the purchase price.
- The improvements to the property share not to exceed 12% of the purchase price.
MANAGEMENT
Our Manager is Preferred Equity Group, LLC, a California Limited Liability Company (“Preferred” or the “Manager”) which was recently
formed for the purpose of managing the Offering for investing in single family residential real estate and multi family unit real estate. As
we have no outside advisor, our management is responsible for identifying and making acquisitions on our behalf which does include a
verified third party Independent BPO (Brokers Price Opinion) and physical inspection of each real estate acquisition. Management is
managed by Marc R. Tow, its Manager and Chief Executive Officer; and Janice Young, its Vice-President. You can reach any member of
the management team at the same address, telephone number, and email as the Company. The Manager owns one hundred percent
(100%) Class B Units in the Company.
ASSET MANAGEMENT
The manager of the fund shall receive compensation for the acquisition of real estate, the management of the real estate assets, real
estate property management a disposition fee for the sale of real estate. These fees shall NOT exceed industry standards in the markets
where the real estate is purchased. The manager will have a success fee for producing exceptional results and returns for the Investor.
This fee shall be fifty percent (50%) of the net profit after all investors shall receive their capital contribution and a twelve percent (12%)
per year preferred return on the initial investment.
OUR PROPERTY MANAGER
During the Organizational Stage of our Company, A third party will serve as the Property Manager for the Company. The third party
Property Manager will be Licensed and Bonded in accordance with State Regulations. The Property Manager will receive a Property
Management Fee from the rental income from the Properties equal to ten percent (10%) of the net rental income. Upon a sale of a
Property, the Property Manager shall receive additional compensation equal to the previous month’s Property Management Fee as
compensation for work to be performed in connection with the sale or completion of managing matters relating each Property.
REAL ESTATE BROKER
During the Liquidation Stage of the Company, Preferred will serve as the Real Estate Broker in connection with any sale, exchange, or
other disposition of the Properties. The Brokerage Fees will be paid in accordance to the terms of the purchase agreement with the
seller. These fees shall NOT exceed industry standards in the markets where the real estate is liquidated.
ESTIMATED USE OF PROCEEDS
Manager plans to devote Seventy Five percent (75%) of the proceeds of this offering to acquire and hold residential real property and
multi-family unit investments. We plan to target single family residences and multi-family units located throughout the United States with
an emphasis in California, Nevada, and Arizona. We will use the remainder of the offering proceeds to pay management fees, marketing,
rehabilitation and repair, operating capital, carrying costs, and other offering costs.
FOR MORE INFORMATION PLEASE CONTACT US
| PREFERRED EQUITY GROUP, LLC |
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