La Quinta - The Citrus Club & Resort

Min. Invest
$25,000
Target Hold
12 mo
Annualized Returns
56.00%
Progress - 12% Pledged
Plan_01 Floor Plan.jpg

Plan_01 Floor Plan.jpg

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PLAN 1_OPT 1.jpg

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Plan_02 Floor Plan.png

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PLAN 2_OPT 3.jpg

Plan_03 Floor Plan.png

Plan_03 Floor Plan.png

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Site Plan.jpg

Site Plan.jpg

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Overview

Inland Development Company will be building three (3) semi-custom homes in a golf course community called The Citrus Club, which is in the city of La Quinta, California, adjacent to Palm Springs. These single story homes will be approximately 3,500 square feet, with ‘Next-Gen’ guest suites, pools, and large flat lots favorable to both full time residents and/or desert vacationers.

The lots, which happen to be the last available in this community, are being purchased permit/shovel-ready. No entitlement or environmental work will be required.   The homes themselves will take approximately 5 to 6 months to build from ground breaking. All-in, this is a project that can be finished ‘A-Z’ in less than 12 months.   The expected sales prices for each home is $900,000-$1,000,000 – which has been verified by through local brokers and supporting sales data.

In order to show good faith to the investors, the developer will not take any management fees AND they will be investing their own money into the deal as well.  Only after investors receive their guaranteed interest and larger portion of the profit, will the developer receive their share of profits.   Due to this structure, it is expected that the investors will receive a return of 56% or greater on their money, which happens to be a high multiple (1.56) for only a 12 month hold/deal, all while enjoying an ownership position in this project.

Investment Type Equity
Term 12 Months
Raise Amount $800,000

Build Schedule

August 2019 – Close Escrow/Begin Preparing For Groundbreaking

September 2019 – Begin Construction

February 2020 – Finish Construction

March 2020 – List Homes For Sale

Target Final Sales Date (all 3 homes) of June/July 2020

Financial Summary

The three lots are being purchased for $500,000 total, which equates to approximately $165,000 per site. The developer will spend an additional $1.25M in construction costs and another $300,000 in soft costs.

The total project costs of $2,050,000 will be financed with a 60% LTC “Loan To Cost” construction loan of $1,250,000 and 40% equity from investors totaling $800,000.  With sales ranging from $900,000 to $1M, the expected revenue for all three homes is $2.9M.   The profit after sales commissions is estimated at $700,000, which after a 60/40 split favoring the investors, will result in an ROI of 56% or a multiple of 1.56 to the investors.

Financial Sources

Bank Loan $1,250,000
Investor Equity $800,000

Financial Uses

Land $500,000
Construction $1,250,000
City Fees/Engineering $150,000
Interest Reserve $100,000
Soft Costs $50,000

Profit Analysis

Projected Sales Revenue - $2,900,000

Less Total Costs - $2,050,000

Gross Profit - $850,000

Less Sales Costs/Commissions - $150,000

Net Profit - $700,000

Profit Split

8% Preferred Return/Interest to Investors - $64,000

60% of Remaining Profit to Investors - $381,600

40% of Remaining Profit to Sponsor - $254,400

Total Investor Pref/Profit - $445,600

Total Investor ROI - 56%

Total Investor Multiple - 1.56

Documentation


La Quinta Overview

The city of La Quinta, California is located in Riverside County in the Coachella Valley and is known as the Gem of the Desert. La Quinta is a picturesque town surrounded almost completely by the Santa Rosa Mountains.  The current population is 41,304 with a Median Household Income of $76,131.  Home to 25 golf courses, 16 parks, and miles of hiking and biking trails, La Quinta is a truly a wonderful place to call home.  

The Citrus Club at La Quinta Resort is a beautiful place to live with a myriad of activities.  The Citrus Club Community boasts a higher than average home price of $918,742 compared to the overall city of La Quinta.  As is evidenced by the recent comparables set forth below.

If you are looking for a beautiful place to live with a wide array of activities, consider moving to The Citrus Club at the La Quinta Resort.  

 

50675 Cereza

50675 Cereza, La Quinta 92253 - SOLD

3 Beds - 3 Baths - 3,020 sqft - 8,712 sqft lot

$346/per foot sales price

$1,046,955

 

79338 Cetrino

79338 Cetrino, La Quinta 92253 - SOLD

4 Beds - 4 Baths - 3,771 sqft - 14,375 sqft lot

$271/per foot sales price

$1,025,000

50565 Breva St, La Quinta, CA – SOLD (SAME STREET)

5 Beds – 7 Baths – 7,980 sqft – 29,621 sqft lot

$256/per foot sales price

$2,050,000

79178 Cetrino

79178 Cetrino, La Quinta 92253 - SOLD (May 2019)

4 Beds - 1 Full Baths - 3 Half Baths - 3,771 sqft - 15,682 sqft lot

$358/per foot sales price

$1,303,500

 

79835 Sandia

79835 Sandia, La Quinta 92253 - ACTIVE LISTING

3 Beds - 3 Baths - 3,417 sqft - 9,148 sqft lot

$352/per foot sales price

$1,205,000

 

50727 Cereza

50727 Cereza, La Quinta 92253 - ACTIVE LISTING

3 Beds - 3 Baths - 3,466 sqft - 7,841 sqft lot

$316/per foot sales price

$1,098,000

 

50862 Cereza

50862 Cereza, La Quinta 92253 - ACTIVE LISTING

3 Beds - 3 Baths - 3,020 sqft - 8,276 sqft lot

$278/per foot sales price

$839,581

Contact Sponsor

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CERTAIN INFORMATION REGARDING THIS OFFERING

THESE UNITS ARE BEING OFFERED WITHOUT REGISTRATION UNDER ANY FEDERAL OR STATE SECURITIES LAWS, BUT ARE BEING OFFERED UNDER AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND UNDER COMPARABLE EXEMPTIONS UNDER VARIOUS STATE SECURITIES LAWS. HOWEVER, THE SECURITIES AND EXCHANGE COMMISSION (“COMMISSION”) HAS NOT DETERMINED THAT THESE UNITS ARE EXEMPT FROM REGISTRATION. THESE UNITS HAVE NOT BEEN REVIEWED, APPROVED OR DISAPPROVED BY THE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY, ADEQUACY, COMPLETENESS OR MERITS OF THIS MEMORANDUM, AND ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THIS MEMORANDUM DOES NOT CONSTITUTE AN OFFER TO SELL TO, OR A SOLICITATION OF AN OFFER TO BUY FROM, NOR SHALL ANY OF THE UNITS BE OFFERED OR SOLD TO, ANY PERSON IN ANY JURISDICTION IN WHICH SUCH AN OFFER, SOLICITATION, PURCHASE, OR SALE IS UNLAWFUL OR UNAUTHORIZED UNDER THE SECURITIES LAWS OF SUCH JURISDICTION.

THE STATEMENTS MADE HEREIN ARE MADE AS OF THE DATE ON THE COVER OF THIS OFFERING MEMORANDUM. THIS OFFERING MEMORANDUM CONSTITUTES AN INVITATION TO THE PROSPECTIVE INVESTOR TO SUBMIT AN OFFER TO SUBSCRIBE. NO PERSON MAY PURCHASE THE UNITS OFFERED HEREBY EXCEPT PURSUANT TO AN EXECUTED SUBSCRIPTION AGREEMENT IN THE FORM PRESCRIBED BY THE FUND, AND THEN ONLY FROM A PERSON TO WHOM THE FUND OR ITS DESIGNATED AGENT HAS DELIVERED A COPY OF THIS OFFERING MEMORANDUM.

THESE UNITS ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED BY THE FUND. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THERE IS CURRENTLY NO PUBLIC MARKET FOR THESE UNITS.

IN MAKING A DECISION TO PURCHASE UNITS HEREUNDER, PROSPECTIVE INVESTORS MUST CONDUCT THEIR OWN INDEPENDENT INVESTIGATION OF THE FUND AND THE TERMS OF THIS OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED, AND ARE ENCOURAGED TO CONSULT WITH THEIR ADVISORS AS THEY WILL BE REQUIRED TO REPRESENT THAT THEY ARE ABLE TO BEAR THE ECONOMIC RISK OF THEIR INVESTMENT AND THAT THEY ARE FAMILLIAR WITH AND UNDERSTAND THE FUNDAMENTAL RISKS AND TERMS OF THIS OFFERING.

NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR MAKE ANY REPRESENTATION WITH RESPECT TO THE OFFERING OF THE UNITS WHICH IS NOT CONTAINED OR REFERENCED HEREIN, AND, IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATION MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE FUND. POTENTIAL INVESTORS MAY, IF THEY SO DESIRE, MAKE INQUIRIES OF THE FUND WITH RESPECT TO THE FUND’S BUSINESS OR ANY OTHER MATTERS SET FORTH HEREIN, AND MAY OBTAIN ANY ADDITIONAL INFORMATION WHICH SUCH PERSON DEEMS TO BE NECESSARY IN ORDER TO VERIFY THE ACCURACY OF THE INFORMATION CONTAINED IN THIS MEMORANDUM (TO THE EXTENT THAT THE FUND POSSESSES SUCH INFORMATION OR CAN ACQUIRE IT WITHOUT UNREASONABLE EFFORT OR EXPENSE).

June 03 2020

Confidential Offering Memorandum: Inland Development

PROSPECTIVE INVESTORS ARE CAUTIONED NOT TO CONSTRUE ANY CONTENTS OF THIS OFFERING MEMORANDUM OR ANY PRIOR OR SUBSEQUENT COMMUNICATIONS, AS CONSTITUTING INVESTMENT, LEGAL OR TAX ADVICE; RATHER THEY SHOULD CONSULT THEIR OWN ADVISORS OR COUNSEL WITH THE CAPACITY TO ADVISE AND PROTECT THEIR INTEREST IN CONNECTION WITH ALL MATTERS CONCERNING THIS OFFERING MEMORANDUM.

THIS OFFERING MEMORANDUM DOES NOT KNOWINGLY CONTAIN ANY UNTRUE STATEMENT OF A MATERIAL FACT OR OMIT A MATERIAL FACT, AND ANY SUCH MISSTATEMENT OR OMISSION IS DONE WITHOUT THE KNOWLEDGE OF THE PREPARERS OF THIS DOCUMENT OR THE FUND. AS SUCH THE FUND BELIEVES THAT THIS OFFERING MEMORANDUM CONTAINS A FAIR SUMMARY OF THE MATERIAL TERMS OF ALL MATTERS, DOCUMENTS AND CIRCUMSTANCES MATERIAL TO THIS OFFERING. WHILE THE DATA AND STATEMENTS CONTAINED HEREIN ARE BASED UPON INFORMATION BELIEVED TO BE RELIABLE, NO WARRANTY CAN BE MADE AS TO THE ACCURACY OF SUCH INFORMATION OR THAT CIRCUMSTANCES HAVE NOT CHANGED SINCE THE DATE SUCH INFORMATION WAS SUPPLIED. THIS MEMORANDUM CONTAINS SUMMARIES OF CERTAIN PROVISIONS OF DOCUMENTS RELATING TO THE BUSINESS OF THE FUND AND THE UNITS OFFERED HEREBY, AS WELL AS SUMMARIES OF VARIOUS PROVISIONS OF RELEVANT STATUTES AND REGULATIONS. SUCH SUMMARIES DO NOT PURPORT TO BE COMPLETE AND ARE QUALIFIED IN THEIR ENTIRETY BY REFERENCE TO THE TEXTS OF THE ORIGINAL DOCUMENTS, STATUTES AND REGULATIONS.