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arkad | GROUP A REAL ESTATE INVESTMENTS & DEVELOPMENT CO.

 

 

CONTENTS

The Company………………………………………………………………………………….p1

The Opportunity……………………………………………………………………………….p3

Arkad’s Advantages………………………………………………………………………….p4

Strategy..……..………………………………………………………………………………….p5

Exit Strategies..………………………………………………………………………………….p6

Arkad Group of Companies………………………………………………………….……..p7

RESIDENTIAL…….………………………………………….……….……..p8

MULTI-FAMILY/DEVELOPMENT…………………………….……….……p9

CAPITAL MANAGEMENT……………………………………….………..p10

PROPERTY MANAGEMENT……………………………………….……...p11

RESIDENTIAL & COMMMERCIAL BROKERAGE….…….……….…..…p12

CREDIT MANAGEMENT..………………………………….…………..….p13

Our Commitment..……………………………….……………………….p14

Arkad Team..…………………………………..….……………………….p15

The information provided through this summary 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.

 

 

Arkad Group Real Estate Corp. “Arkad” is a privately owned, vertically integrated group of real

estate investment companies created to capitalize on the rising inventory of distressed

properties held by private and public financial institutions. Arkad and its affiliated companies

are New Jersey & New York based entities that specialize in the analysis, acquisition,

renovation, management & disposition of residential and commercial real estate in specific

micro-markets located throughout the NJ/NY metro area.

Our team has spent the last 8 years investing in a variety of distressed Residential “RES”,

Commercial “COM” & Multi-family “MUL” assets including: Bank Owned “REO”, pre-

foreclosure “Short Sales, Non-performing Notes “NPN” (both by units and bulk), Free & Clear

Acquisitions and Auction House & County Sales; all with great deal of success. Above average

returns, record-breaking sales and trend setting value-added improvements have all been

accomplished by following disciplined acquisition metrics and superior investment knowledge

& management. Arkad’s investment model targets assets ideal for redevelopment followed by

resale exit or hold & lease strategies.

http://www.QueenCityRevival.com

http://www.52housesin52weeksProject.com

“When we first started

purchasing and renovating

property, we had no idea of

the impact it would have on the lives of the

people we met and the

communities we helped to

transform. The little houses

eventually grew into beautiful

buildings ”

Mario Camino, CEO  

real estate investing | REDIFINED

 

 

ARKAD, THE COMPANY

Arkad was formed in 2007 through the merger of NJ

Innovative Investors, Inc & NJ Home Remedy, LLC. Both,

successful acquisition companies with highly reputable

performance and years of experience in the investment

arena. The two companies decided to combine their

resources and create the perfect one stop shop real estate

investment company. This merger also placed Arkad in

the real estate management business. Since then, as a

company, we forged to acquire full or partial interest in a

debt mitigation company, a credit repair company, a debt

collection company, and a real estate brokerage. We

have also positioned our partnerships and joint ventures

to target larger sectors such as the Multi-family (“MUL”)

(7-55 Units) & distressed development acquisitions as well

as construction and management.

Arkad’s structure follows the ideal of convenience for

sellers to sell, buyers to buy, and investors to invest. With

our investment platform, we excel at bringing property

back to performance with the least amount of hassle,

while consistently reaping high yield returns.

As part of Arkad’s redevelopment plans, the company

strategically chose progressive downtown Plainfield, New

Jersey as home for its new headquarters in 2013. Since

our inception, we have added locations in Jersey City NJ,

Newark, NJ and New York, NY.

All of the Arkad companies, employees & principals share

the same values, drive and energy. The combination

makes for a very powerful team.

THE LAST 24 MONTHS

I. Through Arkad Group Investments, LLC, our residential

acquisition division, we have acquired and disposed of

38 Residential assets resulting in an average of 1.5

purchases per month with an average profit of $

35,212 per property.

II. Arkad secured $3.5M in private capital, which

subsequently was used to acquire approximately $4M

in distressed property, with an ARV (after repair value)

of 7.5M. The funds raised are a combination of our own

funds, private equity partners, private, institutional

lenders, hedge funds, accredited & non-accredited

investors, hard-money lenders, business affiliates,

friends & family. The funds are currently being utilized

to purchase distressed real estate assets for the

purpose of renovating and remarketing or

repositioning, cash flow or a combination of both.

III. Through CTR Homes Realty, LLC we have added fully

integrated, in-house brokerage services to our

company. This move gave Arkad direct access to a full

team of licensed realtors, all of NJ’s MLS systems and a

handpicked broker of record all trained by our team of

experts. CTR’s primary job within the Arkad umbrella is

to serve as its liquidations department/arm. This allows

for more efficient and cost effective retail sales.

IV. Arkad became a registered bulk buyer with FREDDIE

MAC. Arkad is currently part of the BULK SALE program

created to liquidate large amounts of REO properties

directly to investors like us.

V. We spearheaded the revitalization of downtown

Plainfield NJ. We have 3 active projects (buildings) in

the city. All w ithin the newly rezoned TOD section

of the city.

arkadGROUP | OUR GROWTH

 

 

/??  

WHEN OPPORTUNITY KNOCKS

The lack of liquidity in the financial markets, has

allowed for a profitable, yet temporary window of

opportunity for real estate investors like Arkad.

Lending institutions are “liquidating” assets in order

to balance their sheets and Arkad has been

successful at acquiring distressed assets at

phenomenal discounts due to the current

economic conditions. Our purchase criteria are

based on what we call our “Distressed Meter”.

Factors such as the condition, marketability, days

on the market (DOM) and migration statistics are

constantly assessed. Specific metrics have been

implemented for different asset classes and micro

markets in New Jersey and New York. Assets come

to Arkad from regular sellers, realtors, wholesalers,

REO brokers, bulk sellers, asset managers, attorneys,

estate planners, and accountants just to name a

few. As of 2012, we have been accepted into the

Freddie Mac bulk sale pilot program! This is truly an

exciting time for Arkad as we step into the larger

portfolio arena enabling us to obtain even greater

discounts thus creating more profit. We will

continue to combine these advantages to achieve

our ultimate goal of becoming the premier

distressed real estate asset-repositioning

corporation in the tri-state area.

 

Meanwhile, in New Jersey. Property values are at an all time low and rental

demand & rates are at historically high levels. With

that being said, New Jersey’s proximity to Metro New

York keeps buyer demand high for both the purchase

and rental markets. Jeffrey Otteau leads the New

Jersey real estate appraisal and consulting firm the

Otteau Valuation Group, which many real estate

professionals follow. He noted in February the sales

pace in New Jersey this year was already better than

the last 4 years due to high buyer demand.

Foreclosure activity in New Jersey has increased

rapidly, as lenders resumed their efforts to evict

homeowners in default. As per RealtyTrac, one in

every 1,766 homes in the state received a foreclosure

filing in July 2014. Lenders stopped in their tracks for

over a year in the state, as they dealt with questions

about "robo-signing," in which they were accused of

abusing homeowners' rights in their rush to take back

distressed properties. Several court rulings and

settlements have cleared the way for lenders to begin

foreclosing again in the state. Which in turn brings

discounted properties to the open market.

Rental Markets are HOT Right now rents are higher than ever before at a 5.2%

increase per year in most eastern metro areas. Some

areas in central New Jersey have shown a strong

demand for housing in both the ownership and rental

markets. As of June 2014 areas like Union County, New

Jersey showed an average of 38 days on the market!

Hudson County had a 4.3% increase in rental rates. In

basic terms demand is exceeding availability. One

key component pushing this demand is the increase in

aging baby-boomer households with underfunded

retirement plans. Baby-boomers are selling their

homes and transitioning to rentals. To sum it all up, it’s

a great time for “buy, fix and hold” strategies.

opportunity | IN OUR OWN BACKYARD

 

 

TARGETED OPPORTUNITIES

 

MANAGEMENT

 

 

INFRASTRUCTURE

Superior infrastructure

 

 

We are very good at what we do

In addition to strategic/discounted acquisitions, Arkad has also demonstrated a competitive advantage in disposing of the same; by offering consumers beautifully renovated housing at competitive prices. At Arkad, we believe the product is just as important as the profit. Our properties often receive multiple purchase offers or rental income that is above average. Our investment models, corporate structure, proprietary software platform and reliable/established relationships with contractors & vendors; further enhance our ability to create beautifully remodeled, mechanically upgraded, and environmentally friendly properties at below average costs. Additionally, we are always seeking ways to streamline our processes & maximize earnings. Arkad’s research & acquisitions teams have the ability to perform due diligence on all types of assets, single or portfolio based, within hours of receiving an opportunity. Local market knowledge & superior analytic tools allow for us to make offers quickly & more often than the competition. Our ability to focus on specific regions & asset types as well as act fast has been the key to our success and will only improve as we continuously assess and update our systems.

* metric based on AS-IS Value

competitive | ADVANTAGES

 

 

WE SEE GOLD WHERE OTHERS SEE TROUBLE

Properties are acquired in areas that show low to mid value fluctuations, stable

DOM (days on market) and low to mid absorption rates (3-5 Months). We then

add value by upgrading our properties to exceed consumer expectations. Our

proprietary demographic models have allowed us to choose specific towns and

micro-markets with the highest flip/hold potential. Arkad currently concentrates

its efforts on 29 SPECIFIC towns in New Jersey and a number of neighborhoods

in New York, where our business model works particularly well. We also

determine our “sweet spots” by paying attention to areas where large portions

of qualified buyers are currently purchasing. We then seek out properties in

those locations. Additionally we implement proven strategies designed to

engage and involve our prospective buyers such as offering customizable

options and upgrades.

Factors such as migration, commuting, development and job creation are closely

observed all the while keeping in line with our purchasing guidelines. Specifically

ROI, Cap Rate, DCR and CCR. This methodical and disciplined approach helps

to minimize risk and secure earnings for the company and its investors. Our

model allows for a 35% decline in market values as a “cushion” for any given

project before investment capital is at risk.

 

our strategy | VALUE ADD

 

 

AVERAGE TRANSACTION ACQUISITION (1-5 days)

Due Diligence. Valuation,

title review, property

condition assessment, and

occupant status, OPRA.

ESCROW (5-30 days)

Title, funding structure,

budgets, drawings, permits,

insurance, LLC prep,

inspections, closing.

RENOVATIONS (30-90 days)

Permits, demolition

renovations, municipal

inspections, Certificate of

Occupancy and final walk-

through.

SALES/CLOSING (90-180 days)

Marketing campaigns, listing

plan, open houses,

offers/counters, & closing.

 

Sell Sell Sell! – The old adage, “Time is money” is true in real estate like no

other industry. Arkad has streamlined the entire process in order to maximize

profits. Almost all of our properties are renovated and updated in some way.

Not only does this boost value and desirability but it also helps meet lender

requirements. Although large portions of buyers obtain conventional financing,

FHA buyers are not ignored. ALL potential buyers are REQUIRED to be

qualified by an Arkad approved lender, thus increasing control and minimizing

delays in the mortgage process. Additionally, our properties are competitively

priced. In many cases properties are on the market for as little as two weeks

before procuring a buyer. For 2013, our average DOM is 17 days on the

market. Our in-house brokerage capabilities and our vast network of brokers in

the area combined with our superior product, give us the ability to sell

properties faster than market averages.

What If we can’t sell it?

RENT TO OWN - If our aggressive liquidations methods aren’t able to dispose

of an asset, we can offer it to a new range of buyers who will be willing to put a

large down payment and make rent payments while a) their credit is being

repaired by our in-house credit management division, b) we structure a down

payment and/or closing cost incentive type of transaction or c) we implement a

combination of both.

WHOLESALE – In the event that an asset does not live up to its profit

potential we can “wholesale” the asset. In this type of strategy we would be

liquidating the asset to another investor or a retail cash buyer immediately for

a reduced profit margin increasing liquidity for more lucrative investments.

This strategy also becomes effectively lucrative on quick “back to back” flips.

Which at times, due to its velocity, can become more profitable than an avg.

transaction.

RENT & REFINANCE (Commercial RE) – In some occasions, Arkad may add an

asset to its rental portfolio & assume all management. We secure conventional

lender financing to secure the asset and free up investor capital. The asset is

then rented out for long-term hold and cash flow purposes. These assets may

also be bundled and sold as a package to other investors.

**With COM Commercial Assets, our strategy always aims for:

BUY, REPOSITION, REFINANCE & HOLD.

 

exit | STRATEGIES

 

 

company | PROFILES

 

 

A VISION

THE CORE OF OUR BUSINESS HAS ALWAYS

BEEN SINGLE FAMILY AND 2-4 FAMILY

PROPERTY FLIPS. THIS IS HOW WE GOT

INTO THE BUSINESS. WE STARTED BY

BUYING FORECLOSED PROPERTIES AT

SHERRIFFS AUCTIONS

ARKAD RESIDENTIAL & MULTI-FAMILY HOLDINGS I-VIII, LLC

The strength of the company has always been its ability to

locate under-performing real estate assets with the

possibility of short or long-term upswing. Arkad Group

began with single-family homes and eventually diversified

to other larger and more complex assets. Arkad has always

had the philosophy of buying low, reposition value and

creating profit at the core of its business models.

The company’s primary focus is to locate, structure,

acquire, renovate and re-sell distressed residential property

(1-55 Units) in Central/Northern N.J. & N.Y. areas

(Manhattan, Brooklyn, Queens & Staten Island). It

accomplishes the same by following a disciplined business

model which includes marketing strategies targeted at

distressed assets, specialized REO Brokerages, asset

managers, servicing companies, banks, and trustees just to

name a few. Arkad Group Investments LLC follows the

same proven business model that worked for us during the

first wave of foreclosures (2007-2009). Arkad Group

Investments, LLC receives the full backing and support of

its affiliate companies in order to accomplish their

purchasing goals.

RESIDENTIAL | 1 to 4 UNITS

 

 

HOUSES

ARKAD GROUP INVESTMENTS , LLC

Arkad is confident that it has a competitive

advantage in its targeted locales by

offering beautifully remodeled homes that

often receive multiple offers near or over

asking price, thereby facilitating both the

input and sale of properties. In addition to

its focus on transparency for investors and

lenders, the company’s competitive

advantage further lies in its investment

strategies, infrastructure, organization,

software platforms, and ability to create

beautifully remodeled, mechanically

upgraded, and environmentally friendly

homes at below average costs.

 

A VISION

QUEEN CITY DEVELOPMENT, LLC

Arkad has become experts at turning run down,

undeveloped or mismanaged multifamily assets into

beautiful cash flowing properties. At Arkad, we care about

the features that most consumers want in a property and

we’re always looking for ways to improve our product while

minimizing expenses. Whether purchasing from banks,

government agencies, or property owners directly, Arkad

analyses and acquires underperforming apartment building

properties where value can be added through

redevelopment and repositioning. Everything from

renovation, leasing to installing more efficient systems and

improving operations are utilized to increase value and

income.

Once a property has been improved and stabilized, we may

dispose of the asset at a significant premium to cost, unless

its performance outweighs its liquidation benefits. This entity

is an investment company that purchases, rents, and

manages multi-family low, mid and high rise housing that

attract a specific market segment of middle-income earners.

By leveraging industry expertise and utilizing efficient

property acquisition methods, QCD, LLC will investigate

investment opportunities of distressed assets throughout the

U.S.

OUR MULTI-FAMILY DIVISION HAS A

STRONG EMPHASIS ON 2 AVENUES: A) TO

ACQUIRE MISMANAGED OR DISTRESSED

MUL FAM ASSETS RANGING FROM 7-55

UNITS. B) TO LOCATE AND PURCHASE REO

DEVELOPMENT PROJECTS THAT HAVE

BEEN TAKEN BACK BY THEIR LENDER DUE

TO LACK OF PREFORMACE FROM THE

INITIAL INVESTOR.

MIXED USE | 7 to 55 UNITS

 

 

A VISION

OUR FUNDS AND JOINT VENTURES ALLOW US TO

OPERATE A LIQUID BUSINESS. OUR ABILITY TO

RAISE CASH IN A MANNER THAT SATISFIES A

RANGE OF RISK APPETITES; MAKES US A

STRONGER PLAYER IN THE DISTRESSED PROPERTY

ACQUISITIONS BUSINESS.

ARKAD CAPITAL MANAGEMENT, LLC

ACM, LLC was formed to serve investors by providing

opportunities to participate in “the deal”. By lending on

the acquisitions of distressed assets, they achieve above

average returns. ACM, LLC serves as the internal capital

raising and management arm of Arkad & Co. It secures

investment capital and joint ventures on both Buy-Fix-Flip

Strategies & Buy-Fix-Hold strategies.

Our emphasis is placed on issuing high yield, low risk,

asset backed notes and mortgages that take senior or

junior debt position on real estate investment

transactions.

 

CAPITAL | MANAGEMENT

 

 

HOUSES

ARKAD GROUP INVESTMENTS , LLC

Arkad is confident that it has a competitive

advantage in its targeted locales by

offering beautifully remodeled homes that

often receive multiple offers near or over

asking price, thereby facilitating both the

input and sale of properties. In addition to

its focus on transparency for investors and

lenders, the company’s competitive

advantage further lies in its investment

strategies, infrastructure, organization,

software platforms, and ability to create

beautifully remodeled, mechanically

upgraded, and environmentally friendly

homes at below average costs.

 

A VISION

ARKAD PROPERTY MANAGEMENT,

ALTHOUGH YOUNG, IS GAINING GREAT

MOMENTUM. ASIDE FROM ACTIVELY

MANAGING ALL OF ARKAD’S PROJECTS, IT

HAS BEEN ABLE TO EXTEND ITS REACH TO

THE LOCAL COLLEGE HOUSING RENTAL &

REO MANAGEMENT SECTORS.

ARKAD PROPERTY MANAGEMENT, LLC

Arkad Group Corp. prides itself as being a full-service real

estate investment company. Through our management

company, Queen City Property Management, LLC, we provide

a full range of property management services for residential

and commercial real estate assets of our own, as well as other

investor’s

Whether servicing clients with rental properties, or

institutional investors in need of REO management and

security services, our team is capable of taking on any project.

The name Queen City Property Management was strategically

chosen to gain market share in the local multifamily

investment community. Arkad has been quick to establish

itself as a local player in a city with a large number of

multifamily and commercial rentals but very few full service

property management companies. The fast growing

community from Kean University, Union County College,

medical schools, and hospitals have allowed for tremendous

opportunities in the management business.

PROPERTY | MANAGEMENT

 

 

A VISION

CTR HOMES REALTY SOLVED THE TWO BIGGEST

ISSUES FACING REAL ESTATE BROKERAGE

COMPANIES: RECRUITING/RETAINING NEW

TALENT AND GENERATING ADDITIONAL REVENUE

STREAMS FOR ITS AGENTS AND OWNERS. OUR

COMPENSATION MODEL OFFERS AGENTS THE

ABILITY TO BUILD AN ADDITIONAL RESIDUAL

INCOME STREAM.

CTR HOMES REALTY, LLC

CTR HOMES REALTY, LLC is a full service real estate

brokerage servicing residential, commercial and

multifamily properties owners. The company is

constantly seeking investment opportunities for Arkad

and other investors as well as being responsible for

liquidating assets in the central New Jersey area. CTR

has a vast network of licensed real estate professionals

across the state. Our seasoned agents assist the Arkad

teams with valuations, acquisitions and liquidations.

LICENSED | BROKERAGE

 

 

DEBT SETTLEMENT IS AN EFFECTIVE SERVICE FOR

PEOPLE STRUGGLING WITH MOUNTING DEBT.

THROUGH DEBT SETTLEMENT AND RESTRUCTURING,

PROFESSIONAL DEBT NEGOTIATORS DEAL WITH

CREDITORS OR COLLECTION AGENCIES, AND HELP

INDIVIDUALS PAY DOWN DEBT AND INCREASE THEIR

BUYING POWER. HAVING THE ABILITY TO BUY A NEW

HOME IS THE GOAL OF MOST OF OUR CTDS CLIENTS.

 

 

CT DEBT SOLUTIONS, LLC

CT Debt Solutions, LLC works closely with Arkad’s acquisitions

team. Its relationship with Arkad is twofold. 1) Through its

credit repair component CTDS has been able to retain a

pipeline of potential future buyers. A constant flow of ready &

able buyers can be nurtured and when ready, be presented to

Arkad to match with properties for sale.

2) CTDS negotiates short sale acquisitions on behalf of Arkad,

investors and Realtors. Through key relationships with

mitigation departments across the nation they have been able

to successfully negotiate literally 100’s of short sales.

CTDS currently negotiates an average of 5 short sales per

month for Arkad and Next Age Preferred, LLC.

CTDS currently has a team of 3 negotiators. Very

knowledgeable on current industry trends and online short

sale mitigation software.

Negotiators are consistently trained on new techniques and

updated on any new regulations. The success of CTDS lies in

its ability to negotiate discounts on our behalf and for

investors when retained for bank mitigation purposes.

CREDIT | MANAGEMENT

 

 

52 HOUSES IN 52 WEEKS PROJECT

The 52 houses in 52 weeks project is scheduled for launch on January of 2013. Its goal is to purchase 52-distressed SFR, MUL and/or MIX-USE assets with the intent to re-develop and bring it back to performances via liquidation or rental. The assets are all based in New Jersey and will be aggressively marketed to local media outlets. Our intention is to rejuvenate 52 neighborhoods in the garden state.

“One house… one neighborhood, every

week, for an entire year.

FOLLOW US ON:

http://www.52Housesin52WeeksProject.com

#52HousesProject

QUEEN CITY REVIVAL

QCR is a multifaceted plan designed to bring Plainfield, NJ back to its former glory. Why Plainfield? We have our reasons, but most of all, our ability to undertake larger projects. In the case of Plainfield, our focus will be in 2 strategic sections of town. We are currently purchasing and renovating multiple buildings and residential homes in town.

FOLLOW US ON:

http://www.queencityrevival.com

#QueenCityRevival

PRIVATE LENDING

We will continue to pioneer the private

lending industry. Arkad will continue to

bring the private sector and investment

opportunities together to surpass most

investment vehicles available today. We

will continue to promote private and

institutional capital lending through

structured distressed RE investment

funds and joint ventures.

FOLLOW US ON:

http://www.arkadgroup.co/investors/

#arkadgroup

 

 

 

ARKADIANS Mario Camino, President & CEO mario@arkadgroup.co

Daniel Rivera, Co-Founder & Chief Investment Officer daniel@arkadgroup.co

Jessica Perez, Operations Manager jessica@arkadgroup.co

Andrew Rabinowits, Property Valuations andrew@arkadgroup.co

Merrelyn Ayala, Property Management merrelyn@arkadgroup.co

Gaston Gonzalez, Head of Renovations & Improvements gaston@arkadgroup.co

Robie J. Wood, Chief Design Officer, Architect robie@rjwoodarchitects.com

Reginald Thomas, Architect, Consultant reginaldthomas@rltarch.com

Jack Pires, Advisor & Planner/Developer jack@arkadgroup.co

Chris Goodson, Esq. Commercial Real Estate chris@goodsonlawoffices.com

David Bressler, Esq. Residential Real Estate/Development david@bresslerbressler.com

Sean McDonough, Esq., Residential Real Estate smcdonough@law-mcd.com

111 Park Ave. 3r d F l . P la inf ie ld, NJ 07060

www.arkadgroup.co

888-38-ARKAD

 

arkadGROUP