RWN Texas LLC

The 2-month extension on our loan to Verano Land Partners ended July 31st. One of the partners put up the cash, and funds will be wired to RealWealth Texas, LLC tomorrow.

We will need your account information so that we can send you your return of capital plus 10% interest.

Ann Triplett, our Subscription Manager, will be giving each of you a call over the next few days to confirm your funding instructions via phone. Please have the following information ready to give to her:

1. Whether you’d like us to mail you a check or ACH transfer your funds
2. Your mailing address
3. If you’d like us to ACH transfer your funds: your bank name, accounting & routing numbers

This is a bittersweet moment, as we had hoped to take control of the property to either flip it or develop it. Unfortunately, the owners were not willing to lower their price, so it simply did not make financial sense. The safety of your capital was our #1 concern.

Please let us know if you have any questions.

As you know, our 6-month note to Verano Land Group, LP was due yesterday, May 31st.

We gave the owners notice that we would not be exercising our option to buy the property for $25.5MM. We said we would be interested in negotiating a lower sales price, but the owners declined.

Our note allows a 2-month extension, and Texas law allows for a foreclosure sale on the first Tuesday of the month once the borrower has received 21 days notice. This gives Verano Land Group until July 31st to pay off our $13MM note.

Here are some scenarios of how this could play out:

• They don’t find a buyer in 2 months time and come to us to negotiate a lower sales price.
• They don’t find a buyer in 2 months time, don’t negotiate with us, and we begin foreclosure proceedings.
• They do find a buyer in 2 months time, and are able to pay off our note plus interest.

If you have not watched the prior update webinars, please do to better understand these options. If you have further questions, please send them to me.

Webinar Recording

Webinar Recordings

Here is your update on RealWealth Texas, LLC.

As you know from our last update, the investment group to whom we were originally going to flip the property in January was unable to close. We needed more time to get approvals from the city to transfer the TIRZ to them. Due to 1031 time constraints, they had to identify a different property for their exchange.

When Daniel Medina and Christopher Kallivokas met with the San Antonio city officials in January, the city requested a detailed proposal of our construction plans and timeline. That was submitted immediately. We are now awaiting a date from the city for a follow up meeting and to set forth the steps required for the transfer approval process.

Daniel and Christopher also met with the university to get a better understanding of their needs. That meeting went very well. We are now working with the university on a plan to build a recreational facility and administration building. We are also in discussions with them on building additional student housing.

While in San Antonio, our team also met with the economic development board, which indicated that there are various Fortune 500 companies now exploring San Antonio. Many are interested in placing office or industrial facilities on our site. Additionally, we will be presenting an office parcel for consideration in a 300,000 square foot build-to-suit competition.

There have been many discussions with various homebuilders, multifamily developers and industrial users who want lots as well. Meanwhile, we have been analyzing the cost/benefits of selling raw parcels versus fully improved lots for the single family builders. We are working in the context of the presently approved Master Plan which provides for 2,461 single family lots, 2,500 multi-family units(including student, senior, market and work force) and 750 condo/townhouse units. This totals 5,711 residential units.

Our present action plan follows:

1. Effectuate the transfer of TIRZ.
2. Continue current negotiations for the sale of the entire property to a very well capitalized Dallas buyer.
3. Alternatively, continue to negotiate with multi-family, student housing, single family, retail, office and industrial prospects as buyers or joint venture partners on specific parcels.
4. Continue discussions on raising more capital to development the project ourselves.

I have spoken with several of our investors who would prefer that we keep the property and build it out ourselves, financing construction through the sale of some parcels. I agree that this is a great plan, but we want to check in with you.

There could be a tax benefit for holding the property for more than a year. There could also be a cash flow opportunity if we build out the student housing, warehouses and apartments. If you would like me to explore these options, rather than flipping to the Dallas developer who is currently looking to buy the entire project by June, please click on the appropriate link below. Thank you for your feedback.

This is a very exciting project, regardless of which way we decide to go.

As I’m sure you’ve probably noticed, we have decided to reject the low $43M offer and will not be flipping the property mid-January. Once we closed on the loan and locked in the option-to-buy, scores of potential buyers came out of the woodwork.

SALandpartners, LLC manager, Daniel Medina, met with the head of the University last week, and they are very excited to finally see movement. They expect explosive growth over the coming years.

Daniel also met with the city, and they are eager to develop the South side of town since San Antonio is expanding rapidly. It is one of the fasting growing metros in the U.S.

Many home builders have expressed interest in acquiring land, and of course, student housing developers are circling like vultures. There is also a great need for commercial development surrounding the university.

The management team is currently in talks with a group who would like to purchase a portion of the land for the same price we’ve locked in the entire property. SALandpartners, LLC would then own the remaining parcels free & clear.

Since the transfer of bonds could take 4 months, the sale wouldn’t likely take place until May or June, 2018. This means we will not close by March 31, 2018, which triggers the 5% equity participation for RealWealth Texas, LLC, in addition to the 20% flat rate preferred return.

In this scenario, we would not need to raise the remaining $13.5M to exercise the option – which would further increase the value of your 5% equity stake.

On the left is the only dorm at Texas A&M. Behind it is our land.

We believe this scenario is an even more profitable endeavor for RealWealth Texas, LLC. You would potentially receive on-going profit splits long after you’ve received your return of capital and 20% preferred return. We are projecting a return of capital between 4-6 months from now.

The management team is returning to San Antonio this week, negotiating with many, many parties. They will have more updates for us once the deal is solidified.

Attached is the fully executed subscription agreement for RealWealth Texas, LLC into SALandpartners. Due to the longer timeline of on-going development projects, I have requested that I become a co-manager of SALandpartners, LLC in order to better represent RealWealth Texas, LLC interests.

Texas A&M – Fully Executed Subscription Sgreement for RealWealth Texas, LLC into SALandpartners

Please let me know if you have any questions. We are very excited!

Below are videos from the

Webinar Recording

The 1831 acre master planned community surrounding the brand new Texas A&M University San Antonio (TAMUS) has been tied up in litigation for 7 years. The lawsuit is now settled, and the property can finally be developed with much needed student housing, the town center, single family residential and industrial.

The university currently has about 7500 students, and plans to grow to upwards of 25,000. The college and city are eager to get this project built.

A colleague of Kathy Fettke’s, Daniel Medina, was able to tie up this unique property for $26.6 million through his company SAL and Partners, LLC (SAL). He already has a company willing to buy it for $43M by Jan 15!

If you would like to hear how RealWealth investors will earn 20% ROI, possibly in less than one month (but it could take 1 year), join us tonight at 5 pm for this very exciting webinar.

Please note, this offering is for accredited investors only (a 3rd party verification is not necessary.) It is a $100,000 minimum investment, due by December 19.

An 1831 acre master planned community surrounding the brand new Texas A&M University San Antonio (TAMUS) has been tied up in litigation for 7 years. The lawsuit is now settled, and the property can finally be developed with much needed student housing, the town center, single family residential and industrial.

A colleague of Kathy Fettke’s, Daniel Medina, was able to tie up this unique property for $26.6 million through his company SALandpartners, LLC (SAL). We are very pleased to announce that he has come to rWN for funding!

A 2015 appraisal shows the property’s value at $60M. Daniel has already received an offer for $43 million to close on January 15 if he decides to go with a quick flip. Other offers have come in much, much higher, but could extend the return of capital to potentially a year or so.

This is a very fast moving project.

The first $13M needs to be in by December 21st, 2017.

The second $13.5M tranche will be needed by June of 2018 (unless the property in flipped before then. In that case, the 2nd tranche will not be needed.)

RWN already raised over $8M in commitments in just a few days and expects to raise the remaining $5M this week. The difference will be paid by Daniel’s group.

The initial $13M tranche will be in the form of a note, lent to the current owner in 1st position at 10% interest for a 6 month term with a title policy in place. This will enforce SAL’s option to purchase, and secures RWN investor funds at a very low LTV.

Once SAL exercises its option, the note holders will convert to equity investors, and their preferred return will increase to 20%, with a one year pre-payment penalty. (For example, if SAL exercises its option and resells the property to the $43M buyer in January, investors would still receive the full 20% ROI. A $100,000 investment would yield $20,000 in a matter of months.)

However, if SAL holds out for a higher bid, the sale could take 6-12 months, in which case RWN investors would still earn that 20%. if the sale happens after March 31, 2018, RWN investors would earn an additional 5% of profit.

Profits will be taxed as either ordinary income, interest income or long-term capital gain.

Minimum Investment: $100,000

Term: 10% loan that converts to 20% preferred return

Accredited Investors Only (no 3rd party verification needed)

Funds will need to be in no later than December 19.