MKG Financial Group Private Equity Advisors LLC 

 Mortgage Investment Real Estate Fund.

 

Mission Statement

 

Provide unparalleled accessibility to investors within a secured environment while streamlining tedious investor relations administration.

 

Interactive investor dashboards, document management system, smart messaging derived from powerful analytics, and easy access from anywhere, anytime, any device.

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INVESTMENT SUB-MANAGEMENT AGREEMENT

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THIS INVESTMENT SUB-MANAGEMENT AGREEMENT (this “Agreement”) is effective as of  April 17, 2018 or such other date as the parties hereto may agree in writing (the “Effective Date”), by and among MKG Financial Group Holdings,Inc., a Delaware corporation (“Holding Company”), and MKG Financial Group Private Equity Fund Advisors, LLC., a Colorado limited liability company (“MKG Financial Group Private Equity Adviser”), on the one hand, and MKG Enterprises Corp, Corporation, a California C-Corp (“Finance Lender/Broker”), on the other hand.  MKG Financial Group Private Equity Fund Advisors and MKG Financial Group Holdings Inc, MKG Enterprises Corp are collectively referred to herein as the “MKG Parties”.

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W I T N E S S E T H:

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WHEREAS, MKG Financial Group Private Equity Fund Advisors was formed to invest in and manage a diversified portfolio of commercial real estate investments;

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WHEREAS, MKG Financial Group Holdings Inc is the external manager of 3C1 Investment Act Company and a wholly owned subsidiary of MKG Financial Group Holdings Inc, a Delaware corporation, and the management agreement between MKG Financial Group Private Equity Fund Advisors and MKG Financial Group Holdings Inc (the “Management Agreement”) provides MKG Financial Group Holdings Inc with the authority to manage the day-to-day business of  MKG Financial Group Private Equity Advisers Investment Company SPV Fund, subject to the oversight of MKG Financial Group Private Equity Fund Advisors board of directors;

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WHEREAS, MKG Financial Group Private Equity Fund Advisors may have excess cash that needs to be managed pending distribution to MKG Financial Group Private Equity Fund Advisors stockholders or pending investment by MKG Financial Group Private Equity Fund Advisors in accordance with its investment strategy;

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WHEREAS, the MKG Parties and Manager wish to enter into this Agreement in order for Manager to provide certain investment sub-advisory services on a discretionary basis with respect to MKG Financial Group Private Equity Fund Advisors excess cash and other assets in the account referred to below;

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NOW, THEREFORE, in consideration of the covenants herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

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1.          Appointment of Manager, Notice of Deposits and Withdrawals. MKG Financial Group Private Equity Fund Advisors, on behalf of  MKG Financial Group Private Equity Advisers Investment SPV Fund, hereby appoints Manager as a sub-advisor investment manager to manage MKG Financial Group Private Equity Advisers Investment SPV Fund assets allocated by MKG Financial Group Private Equity Advisers from time to time to that certain account established by MKG Financial Group Private Equity Advisers Investment SPV Fund  on behalf of MKG Financial Group Private Equity Advisers Investment SPV Fund with a Custodian (as defined below) chosen by MKG Adviser at its discretion and identified on Schedule A hereto (the “Account”), plus the proceeds from the sale of such assets and the income attributable to such assets held in the Account at any given time, and Manager hereby accepts such appointment. The assets of the Account, together with any increment thereto and income, profit or gain thereon, are hereinafter referred to as the “Assets.”  

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The MKG Parties acknowledge that the Custodian may charge MKG Financial Group Private Equity Advisers Investment SPV Fund for fees and expenses, which will be deducted from the Assets under the terms of  MKG Adviser’s agreement with the Custodian, separate and apart from the Management Fee (defined below) charged to MKG Adviser by Manager, as described below in Section 6. MKG Adviser shall provide Manager with written notice, no less than one (1) stock market business day in advance, of any deposit of funds into the Account.  MKG Adviser shall provide Manager with written notice, no less than seven (7) stock market business days in advance (or sooner, at MKG Adviser’s request), of any planned withdrawal of Assets from the Account. The MKG Parties acknowledge that it may not be commercially reasonable to convert securities in the Account to cash within seven (7) stock market business days, and that the Account may suffer losses if securities in the Account are required to be converted to cash in less than seven (7) stock market business days, and the MKG Parties shall not hold Manager responsible for any such losses.  Manager will advise MKG Adviser, to the extent reasonably practicable, as to Manager’s opinion regarding the estimated potential extent of losses the Account may suffer in the event securities are required to be converted to cash in less than seven (7) stock market business days.

2.           Investment Authority.

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(a)         Manager shall only invest the Assets in the types of assets listed on Exhibit A to this Agreement as “Permissible Investments,” subject also to the Guidelines and/or Instructions (as each such term is hereinafter defined), if any. Within these limitations, Manager shall have complete, sole and absolute discretion in the investment and reinvestment of the Assets, with full power and authority to direct, from time to time, such purchases and sales of Permissible Investments comprising the Assets as Manager may deem appropriate, and, as MKG Adviser’s agent and attorney-in-fact acting on behalf of MKG Financial Group Private Equity Advisers Investment SPV Fund with respect to the Assets, Manager shall have full power and authority, as it deems appropriate and without prior consultation with MKG Adviser orMKG Financial Group Private Equity Advisers Investment SPV Fund, to:

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(i)         buy, sell, exchange, convert and otherwise invest or trade in Permissible Investments, at such times and in such manner as Manager determines;

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(ii)        place orders for the execution of such securities transactions with or through such brokers, dealers or issuers as Manager may select, which brokers or dealers are entitled to receive reasonable compensation out of the Assets for their services;

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(iii)       when placing orders for the execution of such securities transactions with or through such brokers and dealers, allocate transactions to such brokers and dealers for execution on such markets, at such prices and at such commission rates as in the good faith judgment of Manager will be in the best interest of MKG Financial Group Private Equity Advisers Investment SPV Fund, taking into consideration in the selection of such brokers and dealers not only the available prices and rates of brokerage commissions, but also other relevant factors, including, without limitation, execution capability, financial responsibility, research and other services provided by such brokers or dealers; and

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(iii)       execute any documentation as MKG Adviser’s agent and attorney-in-fact acting on behalf of  MKG Financial Group Private Equity Advisers Investment SPV Fund as Manager may deem necessary to facilitate any such investment or reinvestment.

 

About MKG Financial Group Private Equity Fund Advisors LLC

 

3C1 LLC Investment Fund  program works directly with Investors and business lenders to obtain the best financing for each 3C1 LLC Investment Fund economically undeserved community focused on investing in the communities in our community that are the most overburdened by environmental, socioeconomic and health inequities.

 

Construction program that provides efficient energy and water infrastructure systems incentive programs and subsidies for homeowners to invest in energy-efficiency

 

Business Stabilization and Wealth Building Real Estate Investment Construction Fund Creates Jobs and Revitalize the Community improved access to training opportunities and career pathways for low-income residents.

 

https://www.ghsgovansconstruct-tech.com/real-estate-investment-crowd-fund

 

Neighborhood Stabilization and Affordable Housing

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Renewable Solar Energy

 

Allowing homeowners to reduce their electricity bill and save more money each month.

 

Save our water https://www.ghsgovansconstruct-tech.com/toliet-rebate-program

 

Drought Tolerant Tuff Replacement Rebate Program

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https://www.ghsgovansconstruct-tech.com/turf-rebate-program

 

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In the last few years we have seen significant development within the real estate investment Crowdfunding market and www.communityreinvestmentequityfunder.us are poised to take advantage of this heightened interest from investors, developers, owners and intermediaries. Over $700M has been raised by Real Estate Tech Startups since 2012 with the three dominant peer sites each boasting $100M+ post Series A valuations.

Overview

 

Community Reinvestment Equity Funder - a premium and powerful brand, launching September 2017, is a fully automated Commercial Real Estate Investment Platform and Marketplace for the Net Lease Industry - targeting High Net Worth (HNW) accredited investors in the United States using key marketing relationships with the largest CRE property portal and market leader.

 

NNN Real Estate

We specialize in Single Tenant NNN lease properties as our international investors’ are interested in passive income and recognizable, good credit tenant deals. Our investment platform can also be used to raise multiple types of funding (debt and equity) and our proprietary platform technology is fully transferable and applicable to a number of other real estate industries.

Target Market

Community Reinvestment Equity Funder operates as an aggregator for local and foreign investors, seeking stable US-based Real Estate investments - offering passive income, exposure to the US realty market and an inflation/currency hedge. We are currently working within our distribution networks to introduce NNN investments to a new pool of Accredited Investors, High Net Worth (HNW) Accredited Investors , both locally and internationally.

 

Strategic Partnerships and Alliances

Over the past twelve months, we have been busy developing a best of breed, highly competitive and niched commercial real estate investment platform while cultivating key relationships within the Commercial Real Estate industry and International Investment community.

 

Finance Agents:

 

http://apply4funding.com/14831

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GHS Govans Contruction CSLB License No. 933243

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https://www.ghsgovansconstruct-tech.com/home

Community Reinvestment Equity Funder and MKG Enterprises Corp is now seeking to partner with industry brokers, intermediaries and developers to bring single tenant NNN lease deals and developments directly to our investors. We are activating new stakeholders in the US and Southwest Fresno, Chinatown  NNN Lease markets and introducing deals to them.

 

Why Real Estate

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In the past 15 years, real estate has outperformed the stock market.

 

Higher Returns

More Current Income

Lower Volatility

Diversification

 

GROWTH

Since 2000, prime commercial property values have increased by an average of 2.4% per year, and have outgained stocks. When this growth is combined with the current return from real estate, the average total return since 2000 is 8.8%.

 

INCOME

Real estate produces much higher current income than stocks, including REIT stocks. The average income yield for real estate has been 6.4% since 2000, compared to a 2.4% dividend yield for stocks. Even when real estate values don’t appreciate, you can still earn an attractive return and put cash in your pocket with real estate.

 

The source for the historical total returns for stocks and real estate are from S&P 500 and the National Council of Real Estate Investment Fiduciaries (NCREIF) NPI property index. An investment in any of the Funds involves inherent uncertainties and substantial risks, including the risk of losing your entire investment and any fees or costs paid in connection therewith. Each investor should carefully consider the section entitled “Risk Factors” set forth in the Fund’s Private Placement Memorandum (the “PPM”) and any supplements thereto before making an investment in the Fund. The risks and uncertainties discussed in the PPM are not the only ones the Fund faces, but do represent those risks and uncertainties that the Fund believes are most significant to its business, operating results, prospects and financial condition. Links to each Fund’s “Risk Factors” set forth in its PPM are available on each Fund’s individual offering page. Any financial projections or estimated returns shown on this website are predictions only, are hypothetical, based on assumptions that may be incorrect, and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. See the end of this home page for important additional disclosures.

 

Real Estate Crowdfunding: Overview

The Real Estate crowdfunding industry (alternatively referred to as Property Crowdfunding) is moving quickly as awareness increases around the globe and favorable legislation is proposed and pushed forward. We put together a high level overview of recent activity including our thoughts, insights, and opinions and we encourage groups to reach out that would like to learn how we can assist them with their own initiatives.

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Industry Direction – like any sector that heats up, there is an abundance of misinformation, hype, and a sense of urgency in many cases. While early movers like fundrise.com (raised a $31 million Series A, lead by Renren, right around the time we spoke initially) and realtymogul.com (raised a $9 million Series A, lead by Canaan Partners at the end of March) are disrupting the market and creating awareness for an efficient online offering/transaction model. They are ultimately what we call intermediary platforms, bringing investors and third party issuers together and there are many shortcomings in terms of the quality of the deals they have access to (it depends how many firms are willing to post deals and give a commission to the platform and then how many of those deals are good quality). That being said, these companies are doing a great job to help pioneer an emerging industry and while their exposure may be more impressive to some than the actual dollars transacted, they are young companies and that will likely change.

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More established firms with existing investor networks and access to high quality investment offerings are entering the space or exploring how to enter. The common goal is to grow their institutional and accredited investor networks by leveraging the online model, and create efficiencies in their business via process automation (when possible). There won’t be one big winner in “Real Estate Crowdfunding”, the industry will remain fragmented but the ability for solicitation is game-changer for firms with strong track records.

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US Regulation – a lot of people refer to crowdfunding only in the context of non-accredited investors but in our opinion any syndication is technically crowdfunding. For the non-accredited investors to benefit from the new legislation, accredited investors need to adopt the model. Angel List (https://angel.co/) is a great example because many high profile and savvy tech investors actively use the platform. If they allow non-accredited investors in the future that would be great.

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Title II – Rule 506 (b) and Rule 506 (c) are the compliance of interest to US groups. Rule 506 (c) allows for solicitation so if your legal team is OK with it, its great.

Title III – the compliance of interest to everyone with even a slight consideration to allow non-accredited investors. Many groups aren’t interested in $300 investments but many that don’t qualify for accredited status still have money i.e., $50,000 commitments. Depending on your deal sizes this may or may not be an interesting option.

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Financial Transactions – all companies are different, the offerings are structured different, and how they monetize their investment opportunities are different. There is a lot of confusion whether groups need to be a broker-dealer to operate a platform and take transaction fees. Approaching your platform concept with the assistance of a securities lawyer can help determine the best methods to handle the financial transactions from the platform. Many groups are doing debt deals and not equity participation.

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Depending on the structure of a deal and the company’s status with the SEC (for US based) there are different payment services available for very low transaction fees. Whether you require escrow or not presents other considerations.

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International – international awareness and demand is growing. Many groups are looking at international growth by accessing investors looking for US assets. Platforms like Eureeca.com in the Middle East are fairly well known and provide a good reference point to investors from those areas. Depending on your investor profiles (and compliance) the international aspect may or may not be of interest but it opens the possibilities.

The industry is dynamic, exciting, and disrupting an industry with more efficient processes, powerful investor tools, and the ability to leverage online exposure.

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As a software provider for real estate crowdfunding platforms, we are fully entrenched in this space and hopefully we can educate others and contribute to the growth and success of many companies.