1 ag executive summary 2014-15

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888-38-ARKAD www.arkadgroup.co/investors Real Estate Funds I Joint Ventures I Private Money ARKAD CAPITAL MANAGEMENT, LLC an arkad | GROUP Company

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Page 1: 1 ag executive summary 2014-15

Investment Funds I Joint Ventures I Private Money I Alternative Investments

888-38-ARKAD www.arkadgroup.co/investors

Real Estate Funds I Jo int Ventures I Pr ivate Money

ARKAD CAPITAL MANAGEMENT

ARKAD CAPITAL MANAGEMENT, LLC

an arkad | GROUP Company

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Investors

Page 5

Active Investors

Page 6

Passive Investors

Page 8

Marketplace

Page 3

Strategy

Page 3

Team

Page 4

The information provided through this package does not constitute or form part of any offer or invitation to sell or any solicitation of any offer to purchase any securities in the United States or any other jurisdiction. Any securities may only be offered or sold, directly or indirectly, in the state or states in which they have been registered or may be offered under an appropriate

exemption. Before you make an investment decision, it is important to review your financial situation, investment objectives, risk tolerance, time horizon, diversification and liquidity needs with your Financial Advisor. Arkad Group and its entities are not financial advisors.

Security

Page 10

Who do Work with?

Page 11

Appendix

Bringing house flipping out of the shadows

A profitable way of diversifying your portfolio and balancing risk.

ARKAD CAPITAL MANAGEMENT

ARKAD CAPITAL MANAGEMENT, LLC

Opportunity is here and now. For investors of all sizes

an arkad | GROUP Company

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Diversifying has never been more profitable Real Estate Investing brings security, returns & transparency.

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The Marketplace

The sluggish US economic recovery, tight credit regulation

& depressed real estate markets; have created an

extraordinary investment environment of which Arkad is

taking full advantage. Both large banks & small lenders are

in possession of billions of dollars in distressed and non-

performing real estate properties. These assets, are of all

sizes and conditions. They are being sold off; in bulk and/or

in “one-off” form, to established and registered investors

such as Arkad Group Real Estate Corp; “Arkad”.

These large inventories of properties, both residential and

commercial, are usually in distress and can be purchased

for a fraction of their actual cost. Subsequently, they can

then be brought back to performance through a series of

improvement & repositioning techniques; then they are

later resold or leased for a profit.

On the other side, there is demand and low rates. The fact

that homes around the US have lowered in value opens a

large window for new qualified buyers. This unique

combination of factors creates the perfect storm for real

estate investors and the lending partners behind them to

capitalize from. A true transfer of wealth through real estate

holdings and the financing securing it. Happening right

now.

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Funds from the private sector, aka “private money” gives real

estate investors such as Arkad, the financial flexibility needed

in today’s competitive distressed real estate acquisitions

business. They open an opportunity for private investors of all

sizes to diversify their portfolio into significantly marked down

asset-backed notes with high paying yields

Our Strategy

Arkad is a dynamic, privately owned, vertically integrated real

estate investment corporation. Arkad and its entities are New

Jersey & New York based companies that specialize in the

analyzing, acquisition, development, management, brokering

& disposition of distressed residential & commercial real

estate in specific micro-markets throughout the New Jersey &

New York areas. Arkad has demonstrated tremendous

success by following a disciplined acquisition model &

implementing value added and opportunistic strategies in

order to reposition non-performing distressed real estate

assets into marketable and/or income producing properties.

Arkad Group Real Estate Corp is the parent company of Arkad

Capital Management. ACM serves as the capital raising arm of

the Arkad companies.

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Arkad Capital Management, LLC is an

entity created to provide long term &

stable income for investors seeking a solid

combination of security, transparency &

above average returns. Our investment

strategies serve as a competitive, if not

better alternative to purchasing an

investment property, especially if you

want to limit your level of risk and

management involvement.

ACM locates, secures & manages

investment capital via its private real

estate funds and joint ventures

opportunities. Investment capital is then

exclusively used on the acquisition &

renovation of targeted distressed real

estate assets around New Jersey and New

York. Generally, these assets are in need

of fast and effective liquidation and ACM’s

strategies and network allow for fast and

consistent acquisitions at substantial

discounts.

2

Our emphasis is placed on issuing high

yield, low risk, asset backed notes and

mortgages that take senior or junior debt

position on our real estate investment

transactions. ACM offers opportunities for

both ACTIVE & PASSIVE INVESTORS.

Through Arkad Fixed Income Fund &

Arkad Distressed RE Fund, we provide

growth and income to investors seeking

long-term returns outside of the

“common” investment vehicles market.

Additionally, through our Joint Ventures,

we allow the small-mid size investor to

participate in large-scale projects that

would normally be far out of reach.

Our Team

“We have always looked at real estate investing from a different angle. It was never just about cheap houses…

the capital behind it was just as important”

ACM

Mario Camino, Principal

Knowledgeable in all areas of real estate, Mr. Camino is the force behind ACM’s strategies and overall company production. A real estate entrepreneur since his early college year, Mr. Camino is one of the co-founders of ACM’s parent company Arkad Group Real Estate Corp. His leadership and vision has turned a “house buying” company into a multifaceted real estate enterprise that is now among the biggest distressed property buyers in New Jersey. A graduate from Rutgers University, Mr. Camino is always looking for the next right investment and structuring the proper funding for it.

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Bank Owned

Estate Sale

Short Sale

Sheriff Sales

Our Buyers or Tenants

Our Investors or Joint Venture

Partners

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Active investors purchase investments and continuously monitor their activity in order to exploit profitable conditions.

Active investing is highly involved. Unlike passive investors, who invest when they believe in its potential for long-term

appreciation, active investors will typically look at the price movements of their assets many times a week. Typically, active

investors are seeking short-term profits.

PASSIVE

Servicing Passive & Active Investors ACM’s unique structure enables for both types of investors to profit from distressed real estate

Passive investors will invest with the intention of earning long-term appreciation and limited maintenance. Also known as a

buy-and-hold strategy, passive investing requires good initial research, patience and a well-diversified portfolio. Unlike

active investors, passive investors buy a security and typically don't actively attempt to profit from short-term price

fluctuations. Passive investors instead rely on their belief that in the long term the investment will be profitable and generate

supplementary monthly income. Most passive investors use tools such as real estate notes and mortgages to beat the

market or as a supplement to their current retirement investment portfolio.

ACTIVE

Advantages It allows investors to quickly take advantage of undervalued market sectors. Active investing provides the potential for greater profits and returns than the overall market Active investing provides greater control over an investment.

The difference between active and passive investing is similar to the difference between the actions of one individual vs. the actions of a group as a whole. You can also think of active investing like trying to bet on who will win the Super Bowl, while passive investing would be the ability to profit as the NFL teams collectively generated income on ticket and

Advantages No action required by the investor There is no decision-making required by the manager or the investor. Less Risk than Active Investing

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Arkad provides a high yield paying

and relatively low risk investment

fund or “pool”. Structured to

appeal to the investor who desires

to see his/her investment grow

without the hassles of deal hunting,

property management or day-to-

day decision-making; while still

enjoying from the benefits of a

diversified & profitable portfolio. If

this sounds like you, then Arkad

Fixed Income are well suited to

exceed your expectations

For the investor who wants to take a “hands off” approach to real estate investing

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ARKAD FIXED INCOME FUND

TARGET SIZE

$1 MM

BUY-IN (min)

$30,000 per note

AVAILABLE UNITS

33

RATE OF RETURN %

8-15% per annum

MATURITY

1-5 years

TARGET ASSET

Residential (1-4 units)

STRATEGY

Fix & Flip

OPEN/CLOSE

Ongoing – Opens Quarterly

INVESTOR PARTICIPATION

Accredited, Sophisticated & Non-accredited

SECURITY & GUARANTEE

Title & Property insurance for ARV the entire duration of project Mortgage, Note.

WORKS GREAT WITH

IRA & 401 K Holders Cash, Savings, Bonds, Equity Lines, Pension,

Mutual & other funds

Our funds are structured through

private placements memorandums

and compliant with Title 17 of the

Securities & Exchange

Commission’s Code of Federal

Regulation, Rule 504. The purpose

of this unique structure is to allow

for flexible investor participation, as

it caters both accredited & non-

accredited investors. ACM strategy

is to utilize the capital as junior debt

(2nd position) against senior debt on

an investment property or in a pool

with other investors such as you. In

simple terms, your money becomes

a loan towards a purchase &

renovation of a distressed real

estate investment property. The

property is later sold for a profit and

you take a portion of those gains.

All this, without having to be

involved on the day-to-day

activities of “the deal”

PASSIVE INVESTORS

Arkad Fixed Income Fund

“House Flipping Fund”

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Joint Venture: Equity Buy In’s

“Limited Partnerships”

For the investor who wants to take a “hands on” approach to real estate investing

By using legally structured joint ventures or limited partnership agreements, we can combine our knowledge & profit from these lucrative transactions together!

A) Equity Buy In’s allows our investors to take a “co-pilot” approach and along our teams, he/she is involved in the funding, managing, brokering, renovations or any other part of

the transaction they feel they can contribute with their expertise Equity Buy In’s cater to the investor who wants a more competitive level of risk/reward.

B) 50/50 Profit Splits are designed for the investor with larger funding capabilities and reach. These transactions usually require the full investment amount “all in” (Purchase, renovations, holding & closings costs) on a specific acquisition with a subsequent liquidation for a profit. These attractive deals offer an even profit split between the investor & Arkad and are limited to 1-2 investors per transaction.

ACTIVE INVESTORS

Joint Venture: 50/50 Profit Split

“Pari Passu Ventures”

Arkad provides 2 additional ways to

profit from distressed real estate

investing. Allowing the joy and the

thrill of being more “involved in the

deal’. Structured to work with the

investor who desires to see his/her

investment grow while keeping a

close eye on his portfolio. If this

sounds like you, then a Limited

Partnership or Joint Venture or with

Arkad is the right avenue into a

profitable & safe diversification.

Equity Buy in’s

50/50 Profit Spli t

INVESMENT NEEDED

$25,000 to $50,000

$100,000 to $1,000,000

PAYOUTS

7%-10% Preferred

+ Equity % from Net

Profits

50% of Net Profits

PROJECT DURATION

6-12 months +/-

6-12 months +/-

EFFECTIVE RATE OF

RETURN

10-15%

20%-30% Avg.

TARGET ASSET

Residential

Residential/Commercial

STRATEGY

Fix & Flip

Fix & flip or Hold

OPEN/CLOSE

Revolving

Revolving

INVESTOR

PARTICIPATION

Accredited, Sophisticated & Non-accredited

Accredited & Sophisticated

SECURITY &

GUARANTEE

Property & Title insurance for ARV the

entire duration of project

Mortgage & Note.

Property & Title insurance for ARV the entire duration

of project Mortgage & Note.

WORKS GREAT FOR

Basic Investment Knowledge, IRA/401k Holders, Note Buyers,

Realtors, Brokers, Loan Officers. Etc

Experienced Investors, Business Owners, Wealth

Managers, Financial Advisors, Trusts, Bankers,

Brokers.

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1

Our investors receive a set of documents

as part of their closing and security

documentation. Within it, you will find a

mortgage (1st or 2nd position) & a

promissory note securing your set return

and terms for the full-invested amount.

A Guarantee of Completion of the

project insuring that the project will be

Investing in Real Estate has never been safer!

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completed by the time we have

proposed. Insurance for the future value

of the property with the lender as the

beneficiary paid at closing. This

documentation is designed to protect

our investor’s returns and original

investment, while nurturing a secure and

transparent relationship

Investing in assets secured by real estate does not only give our investors the safety and transparency they want &

deserve, but also bring excellent returns. It is important to understand that we are not talking about high Loan-to-Value

(LTV) loans that banks and credit unions produce. We are talking about very low LTV loans. By that, we mean only 65-

75% of the properties improved value. This means by investing $65,000 or $75,000 with us, you would hold a mortgage

on a property that is worth $100,000.

Why is this important? To put it simply, this substantial cushion of equity protects your investment capital and gives you

confidence that your investment is secured by a piece of real property that is worth far more then the loan that

secures it. The security documentation received in these types of transactions is typically the same that a

“commercial” lender would receive and require.

SECURITY & RISK MANAGEMENT

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Our investment strategies and unique deal and profit share structure; allow for investors of all ranges to participate in profits from transactions that normally are out of reach for most.

At ACM, we strongly advocate the ideal that distressed real estate investing can be “institutionalized” yet close to Main Street. We have formulated an organized and profitable way to incorporate investors from all scales into 4 different strategies. Strategies and profit structures similar to large-scale

multi-family portfolios, development, corporate office parks and skyscrapers.

WHO DO WE WORK WITH?

ACCREDITED INVESTORS

(INDIVIDUALS or CORPORATIONS)

SOPHISTICATED INVESTORS

(INDIVIDUALS)

NON-ACCREDITED INVESTORS

(INDIVIDUALS)

$200,000/yr income (Individual)

N/A

Less than $200,000/yr income

(Individual) – 2 yrs

$300,000/yr income (Couple)

N/A

Less than $300,000/yr income

(Couple) – 2yrs

Net worth of $1MM

N/A

Net worth of Less than $1MM

A bank, insurance company, registered

investment company, business development company, or small

business investment company, mutual fund, retirement fund, officer, or general

partner.

The investor must have, either

alone or with his purchaser representative, such

knowledge and experience in financial

A non-accredited individual investor

is one who has a net worth of less than $1 mil lion (including spouse)

and who earned less than

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Ask yourself, what are your current returns on investments?. Perhaps you have tens or hundreds of thousands of dollars sitting in an IRA, savings account, CD, or pension plan not doing much for you or your loved ones. Perhaps you put it all in a money market account with an insignificant return.

In our current financial markets, nearly all of these investment vehicles would be doing earning you a 3-4% return on Investment (ROI).

Let’s say you currently have $50,000 at a 4% yield, five years from now that investment will be worth $60,000. Now let’s take your same investment of $50,000 and invest it for the same five years but at a rate of 12%. Now your same initial investment has grown to an amazing $80,000! That is essentially $20,000 of free money for just changing your yield from 4% to 12 % - and that is only over a 5-year period. When you extend that period to 10 years you have now grown your investment to $110,000. You just gained an additional $40,000 simply by increasing your yield! That is $40,000 you would have never seen with your

original investment strategy.

A BETTER OPTION AWAITS

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We welcome you! Thank you for considering an investment along us. Arkad Group Real Estate Corporation and its capital raising arm, Arkad Capital Management, LLC. Are certain that after reviewing this informational

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package, you will not only be excited about the potential return on your invested dollars, but also working with a company that offers a very rare opportunity that most investors would not otherwise be able to participate in.

“Opportunity does not knock, it presents itself when you beat down the door”

So does it make sense to let a bank run your investments

…or are you ready to take control back & profit from it?

BE THE BANK!

Page 11: 1 ag executive summary 2014-15

Arkad Group Real Estate Corporation

Arkad Capital Management, LLC

Arkad Group Investments, LLC

111 Park Ave. Plainfield, NJ 07060 (3rd fl)

888-38-ARKAD 732-309-4648

www.arkadgroup.co

Investment Funds I Joint Ventures I Private Money I Alternative Investments

ARKAD CAPITAL MANAGEMENT

ARKAD CAPITAL MANAGEMENT, LLC an arkad | GROUP Company

www.arkadgroup.co/investors