17917 Mackay St
17917 Mackay St, Detroit, MI 48212, USAThe Snapshot
Security Type
Membership Interest
Investment Duration
24 months
Cash on Cash Return
7-9%
Payout Period
Quarterly
Exit Strategy
Sell
Reason To Invest
The inception of our company traces back to March 10, 2023, when Pamela Pollard initiated the acquisition of the property situated at 17917 Mackay St., Detroit, MI 48212.
The company has engaged The BNIC Network LLC as its asset manager to oversee the strategy, optimization, and exit of this property, along with all future acquisitions.
The Pitch
The market for Section 8 rental properties in Detroit is robust due to insufficient approved properties to meet the demand from voucher holders. Section 8 rentals offer a low-risk, high-return investment proposition, particularly appealing to out-of-state investors. The rental property is projected to generate $10,392 in annual revenue, with $3,210 in annual operating costs, including property taxes, insurance, business expenses, and management fees, resulting in a projected Net Operating Income (NOI) of $7,182 before accounting for maintenance, capital expenditures, and vacancy reserves.
The Offering
The Company is engaged in an offering under Regulation CF (where anyone can invest), which we refer to as the “Reg CF Offering”. The maximum amount we wish to raise in this Reg CF Offering is $75,860.00.
We will not complete the Reg CF Offering unless we have raised a total of at least $15,000 (minimum goal) by September 30, 2024. If we haven’t, both offerings and all investment commitments will be canceled, and all committed funds will be returned.
The minimum investment amount in the Reg CF Offering is $500. Investors can cancel their commitment up until 11:59 pm on September 28, 2024 (2 days before the target date). After that, any funds raised will be released to the Company and Investors will become members of the Company. The Company may decide to change the offering deadline but will provide at least five days’ notice of such a change to all Investors. Investors will also be notified and asked to reconfirm their commitment if any other material changes are made to this offering.
Documents
The Company
The company was established on March 10, 2023, following Pamela Pollard’s acquisition of the property at 17917 Mackay St., Detroit, MI 48212. The escrow process for the property concluded on March 24, 2023. Shortly thereafter, on March 28, 2023, the company entered into a property management agreement with Sunbeam Property Management Company, which was later terminated on June 16, 2023. The existing tenant vacated the property on May 7, 2023, due to an inability to reach an agreement with the company.
On June 25, 2023, the company formed a new property management agreement with Great Lakes Property Management Group (Great Lakes PMG). This group also oversaw the property’s rehabilitation, completing the work by August 16, 2023. Great Lakes PMG marketed the property for several months and secured a Section 8 tenant in November 2023. The property passed the Section 8 housing inspection by the Detroit Housing Commission on November 20, 2023, and the tenant moved in on December 11, 2023. The Housing Assistance Payment contract between Great Lakes PMG (on behalf of the company) and the Detroit Housing Commission was signed on January 3, 2024.
The Strategy
The company’s strategy is to lease the newly rehabbed property as a Section 8 rental for at least one year, with the current lease extending through November 2024. This approach positions the property as a turnkey rental real estate investment, attractive to passive investors seeking low-risk, high-return opportunities. The company aims to generate revenue through Section 8 rental payments and eventually sell the property as a turnkey rental.
The renovated property produces fair market rental rates. The renovations, including cosmetic and system upgrades, make the property appealing to existing and future potential tenants. The property’s proximity to downtown Detroit, at just 11 miles away, provides a desirable suburban or commuter location for renters who seek a balance between urban access and a more tranquil living environment.
Upon completion of the 2-year holding period, the anticipated sale price is at least $84,289. If sold at a lower cap rate of 7%, the property could fetch over $108,000
The Market
The market for Section 8 rental properties in Detroit is strong, driven by a shortage of approved properties to accommodate the demand from voucher holders. Investing in Section 8 rentals is considered a low-risk, high-return opportunity, especially attractive to out-of-state investors. These investments typically offer a capitalization (cap) rate of 9% or higher.
Our company aims to market and sell the property to an out-of-state investor, likely from California, targeting a cap rate between 7% and 9%. With an anticipated annual net operating income (NOI) of $7,586, resulting from reduced business costs and property management fees associated with the LLC, we expect the property to sell for at least $84,289. If the property is sold at a lower cap rate of 7%, the sale price could exceed $108,000.
The Management Team
Pamela Pollard
Director
Pamela Pollard, the majority owner of the company, is a first-time out-of-state real estate investor. To manage her investment, she engaged The BNIC Network LLC, a real estate investment management company. The BNIC Network LLC is led by its founder and President, Michael Evans, who brings 30 years of management experience. Michael has specialized in developing and managing complex financial and operational systems, primarily for government projects worth millions of dollars. His expertise in real estate began in 1997.
Michael Evans
Attorney In Fact
Michael Evans has created two real estate investing models: The Preconstruction Flip and the Real Estate Deal Management System. These models are designed to purchase and sell residential real estate in various economic conditions while minimizing risk. Michael has owned three properties without using his own money and has managed the purchase and sale of two properties for his clients, achieving returns exceeding 400% annually on their cash investments.
How Investing Works
The Disclosures
Any investment has risks and potential loss of funds. Secure Living does not guarantee specific gains from any particular investment. You are solely responsible for deciding whether an investment is appropriate based on your personal investment objectives, financial circumstances, and risk tolerance. By engaging in crowdfunding activities, the issuer acknowledges and agrees that it is permitted to provide compensation to third parties for the promotion of its crowdfunding offerings through communication channels facilitated by Secure Living. However, this permission is contingent upon the issuer taking diligent and reasonable steps to guarantee that any promoter involved explicitly discloses the nature and extent of the compensation received in conjunction with each communication made.
Secure Living charges fees in connection with the sale of securities on our platform. Secure Living will charge Issuers who complete their capital raise a range of compensation types (e.g., flat fee, platform fee, and/or equity fee in the form of commission). The flat and platform fee will be paid when the successfully funded campaign ends. Any securities paid to Secure Living, if any, will be of the same class and have the same terms, conditions, and rights as the securities being offered and sold by the Issuer on our platform. All fees paid to Secure Living in connection with the offering and sale of securities are nonrefundable unless in its sole discretion determines that a refund is appropriate.
You may cancel your investment 48 hours before the offering end date.
