VVF Bhoomi - Okee73 Offering
VVF Okee73 is our first project in VVF Bhoomi Model. Please refer to below URL to learn about the model. https://www.vvftropicals.com/pages/vvf-bhoomi-farmland-realestate-investments-made-real-easy
Offering Name: VVF Okee73
Offering Asset Type: Agriculture Land
Farm Land Google Location: 27°22'51.6"N 80°49'03.0"W
Farm Land Address: 14780 N 441 Hwy, Okeechobee, FL 34972
Offer Price Per Unit: Each unit is equivalent of an acre
Phase 1: $16900. Phase 2: $18,900. Phase 3: $20,900 Phase 4: $21,900
Ownership Model: Investor will become Limited Partner in LLC owning land Land parcel will not be subdivided. Its joint ownership by members in the LLC. Investor would hold 1 acre equivalent membership interest in the company as a limited partner.
Total Units: 72
Number of Units for sale: 60
Units invested and owned by GP (VVF AgTech Inc Subsidiary): 12
Hold Period: 5
Expenses: $0 (Zero) to investors for the 5 years. Property Tax and any other expenses are covered by General Partner from the lease amount
Revenue during hold period: $50 to $150 per Unit (acre) / year. This is achieved by giving the land on lease to local farmers. (One shouldn’t worry about the revenue as the idea is to target appreciation and not regular revenue. Higher regular revenue would require investment and the strategy for this project is not invest any into operational cost but to target long term appreciation.)
Projected Appreciation (No Guarantees): Agriculture Commercial or 5 acre residential lots Estimated appreciation After hold period ( No guarantees by GP): $34,000 to $40,000 Each unit is equivalent of an acre and estimated sale price per acre is considered as estimate for appreciation.
GP Skin In The Game: Hurdles are syndication terms. Below hurdles mean that LP gets first 8% annualized return and then GP gets a share in the profit based on 2nd and 3rd hurdle. This is not a guarantee of the return. It means to say that first 8% of the return is offered to the investor (Limited Partner) before any profit share is taken by General Partner.
Hurdle 1: Upto 8% Annualized Return.
GP Share - 0%
Investor (Limited Partner) Share - 100%
Hurdle 2: Above 8% and Upto 15% Annualized Return.
GP Share - 30%
Investor (Limited Partner) Share - 70%
Hurdle 3: Above 15% Annualized Return.
GP Share - 50%
Investor (Limited Partner) Share - 50%
Here is the example of distribution with sample numbers. These numbers change based on the phase at which you buy the units.
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Is it the right amount that I am investing?: Please check out the farms around this area to understand the current price per acre. Realtor.com, Zillow.com are some of websites to compare listings to understand the land price around and get an idea.
For realistic data, compare 1 to 5 acres of land prices instead of comparing price per acre in a large tracts of land. Price per acre in a large tracts of land of land will always be lesser than price per in a small tracts of land.
Comparable 1: https://www.realtor.com/realestateandhomes-detail/16415-US-Highway-441-N_Okeechobee_FL_34972_M91441-91305?from=srp-map
Comparable 3: https://www.realtor.com/realestateandhomes-detail/1216-NE-144th-St_Okeechobee_FL_34972_M56821-73841?from=srp-map
Why Do I need VVF Bhoomi Platform?: VVF Bhoomi platform is for individuals who want to invest small capitals into multiple projects on a structured platform that aligns to SEC (Security Exchange Commission) rules and guidelines. If one as an individual or a group of friends can together buy a large tract of land, they can buy the land on their own with the power of collective capital. While buying with a group, please ensure the documentation is clear and clarity is available for everyone.
How Do I Exit? :One would exit when the land is sold. At this point, we are considering 5 years as hold period.
In a situation where the land is appreciated very high in less than 5 years, we will take majority vote and sell the land and distribute profits.
In a situation where it need more years of waiting (even after 5 years) to get better price, we will take majority vote and wait to sell the land. This will based on the majority voting.
Exit as individual is possible by transferring the membership units. Membership units needs to be first offered to the company, the the existing investors and outsiders in the order. Price per unit can be quoted by the investor. Transfer of membership unit has to be adhering to Section 144 of SEC. Please read below article. https://www.sec.gov/reportspubs/investor-publications/investorpubsrule144