First Solution Development LLC
North Carolina Real Estate Development
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First Solution Development LLC
Offering Platform
INTRODUCTION TO OUR COMPANY
First Solution Development Group LLC, expertise lies in real estate development, and our team is composed of highly skilled professionals. With a collective experience of 43 years in the real estate industry as licensed builders, developers, real estate brokers, and real estate investors, we bring a wealth of knowledge to the table. Additionally, we have 16 years of experience in wealth management, specializing in a range of services, including accounting, and financial/ market analysis. This diverse skill set enables us to provide comprehensive and valuable market insights for our investors, ensuring that their investment needs are met with utmost expertise and care.
Through our strong relationships with national home builders, we streamline the transition from land acquisition to development, ensuring a seamless process. This approach not only mitigates risk but also maximizes the potential for profitable returns on investment. Our investors can have confidence in our ability to execute successful projects with minimal risk exposure, setting us apart in the market.
operations summary
Methodology
First Solution Development LLC distinguishes itself from the competition through its risk mitigation strategies. In the Land Acquisition and Commercial Redevelopment sector, First Solution Development continues to reshape and redefine the real estate landscape, creating spaces that not only meet the needs of businesses and investors but also contribute positively to the communities they serve.
Land Acquisition
What sets us apart is our low appetite for risk, which we achieve by securing an end buyer before acquiring parcels. We have established a robust network of reputable national home builders who are actively engaged throughout the acquisition process. This ensures that we have a confirmed buyer for the targeted land parcels.
Our tailor-made approach significantly reduces risk for investors as we deliver finished lots to the home builders according to a predetermined take-down schedule. This proactive strategy minimizes the uncertainty typically associated with real estate investments, providing a higher level of assurance to our investors. By securing an end buyer in advance, we mitigate the risk of holding undeveloped land without a confirmed exit strategy.
Revitalization of Historic Structures and Adaptive Reuse of Buildings
The project aims to repurpose a historic building into multi-family apartment building to meet evolving community needs. Our comprehensive plan addresses key aspects of the repurposing project, ensuring a well-managed and successful transformation of the multi-family apartment building.
Key objectives include enhancing functionality, optimizing space, and improving overall building performance. Developing a comprehensive plan for ongoing maintenance and efficient operations. Identifying potential risks and implementing proactive mitigation strategies. Considering the potential hiring of property management services for optimal building operations.
Through conducting a market analysis, we identify demand for the repurposed building. Assessing market trends and potential competitors to ensure the project aligns with current demands. Developing a comprehensive financial plan with detailed budget estimates for renovations. Exploring funding sources and evaluating the return on investment to ensure project sustainability. By collaborating with architects and designers to create a plan aligned with the new purpose. Emphasizing space optimization, energy efficiency, and modern design elements. We identify and comply with local zoning laws, building codes, by obtaining necessary permits. Ensuring legal and regulatory adherence throughout the repurposing process.
Our marketing strategy is to attract the target audience for the repurposed building. Implementing effective branding and promotional activities to generate interest. Integrating smart building technologies and modern amenities where applicable. Ensuring the building meets current technological standards for enhanced functionality. Incorporating sustainable practices and materials in construction and operations. Implementing energy-efficient systems to align with environmental standards. By engaging with the local community, we gather feedback and address concerns. Ensuring we are providing transparent communication about the benefits of the repurposed building to build community support.
Development Involving Historic Tax Credits
We leverage our profound expertise and extensive track record in collaborating with the Federal Historic Tax Credit (HTC) program and various State Historic Tax Credit programs to finance our projects. Through the utilization of historic tax credit equity, we can subsidize up to 45% of the renovation costs for historic buildings. This involves engaging a Tax Credit Syndicator to negotiate the sale of these credits, thereby generating funding for the project. Additionally, FSD brings forth a network of New Market Tax Credit opportunities for eligible projects.
It's crucial to clarify that a historic tax credit is distinct from an income tax deduction that lowers taxable income. Instead, a tax credit directly reduces the amount of tax owed on a dollar-for-dollar basis. In the context of historic tax credits (20% or 10%), they are applied as follows:
- The 20% rehabilitation tax credit equals 20% of the amount spent on a certified rehabilitation of a certified historic structure.
- The 10% rehabilitation tax credit equals 10% of the amount spent to rehabilitate a non-historic building constructed before 1936.
terms of the offering
$10,000,000
Minimum Offering: $250,000
Minimum Investment: $20,000 (10 Units)
The Company is offering a minimum of $250,000 and a maximum of $10,000,000 Class A Membership Units at a price of $2,000 per Unit. Upon completion of the Offering between 125 and 5,000 Membership Units will be issued.
The Membership Units sold through this Offering shall participate in distributions of net profit from operations on the following summarized schedule and terms and subject to the specific terms of the Operating Agreement;
- (i) a distribution to the Members to equal an annual eight percent (8%) non-compounding cumulative Preferred Return Distribution (the “Preferred Return”) distributed to Members annually and calculated based on the Member’s invested capital contributions and;
- (ii) a distribution to the Members on a pari passu basis equaling seventy percent (70%) of any additional net profit from operations with the Manager participating in thirty percent (30%) of distributable net profit.
Net distributable profit from the liquidation or refinance of real estate assets shall be distributed on the following schedule and terms:
- (i) one hundred percent (100%) of distributable net profit to the Members until such time as any accrued Preferred Return is paid and;
- (ii) one hundred percent (100%) of distributable net profit to the Members until such time as invested capital contributions have been repaid and;
- (iii) remaining net profit will be distributed seventy percent (70%) to the Members and thirty percent (30%) to the Manager. See “Exhibit B - Operating Agreement” for specific rights and terms related to these Membership Units.
Management Team
The Company is currently managed by seasoned business and sector professionals dedicated to the success of the Company and efficient execution of its planned operations.
Shelton
Ray
Shelton Ray
Chairman and Chief Executive Officer
Experienced real estate developer with a proven track record in successfully managing and executing diverse development projects. Proficient in site acquisition, entitlements, construction management, and delivering profitable outcomes. Strong financial acumen and a strategic approach to maximize value and meet market demands. Strong expertise in market analysis, project financing, construction management, and maximizing returns for investors.
Ana
Mota
Ana Mota
Chief Financial Officer
As a dedicated Compliance/Risk Analyst and New Business Development Analyst with 13 years’ experience working in Private Banking & Wealth management Ana, brings expertise in ensuring regulatory compliance and mitigating risks within diverse business environments. With a strong background in conducting comprehensive risk assessments and implementing effective compliance programs.
As a highly motivated and results-driven New Business Development Analyst, Ana brings a wealth of experience in identifying and capitalizing on new business opportunities. Adept at conducting market research, analyzing industry trends, and formulating actionable strategies to drive business growth and expansion. Demonstrated a strong track record of successfully identifying untapped markets, evaluating market potential, and developing innovative business models to enter new territories. The ability to think creatively and assess market dynamics allows Ana to effectively assess risks and rewards associated with new ventures.
Rod
Thompson
Rod Thompson
Chief Operating Officer
Construction background of over 36 years. Accomplished, proactive Land developer, Construction Manager and Owner, Licensed in California, Arizona, and Nevada. Direct, hands-on experience from apprentice to owner in ground up design build construction and management.
- Expert in horizontal construction, vertical Construction, new construction, renovations, and individual specialty trade construction.
- 12 years MEP design build contractor - Licensed C-36 plumbing; C-10 electrical; C-20 HVAC
- 18 years Land development, Housing builder and General Contractor - CM/PM - Licensed B General contractor
- 6 years Civil contractor specializing in wet and dry utilities, structural and site concrete, and asphalt paving - Licensed A; C-50; C-08
Board of Advisors
John
Stillwagon
John Stillwagon
Executive Accountant and Auditor
John Stillwagon's real estate career started in Maryland in 1971 where he sold real estate, developed land, and provided appraisal services. He began looking at Myrtle Beach for real estate investments in 1984, and started his first community here, Country Manor, in 1985. John Stillwagon has planned and developed dozens of residential communities and multi-purpose commercial properties, centered on providing a good product in a safe environment. John's first real estate broker told him that if he would put the needs of the individuals first and forget about the commission, the dollars would chase him. Practicing that philosophy, John Stillwagon continues to create successful projects.
Jerry
Simmons
Jerry Simmons
Executive Real Estate Broker
As a seasoned 15-year Real Estate Broker and Buyer, Jerry brings extensive expertise and a proven track record in facilitating successful real estate transactions. With a passion for the industry and a commitment to client satisfaction, striving to provide exceptional service and deliver optimal results.
Demonstrating a deep understanding of the real estate market, trends, and investment opportunities. Comprehensive knowledge of local markets and neighborhoods allowing him to guide clients in making informed decisions and achieving their real estate goals. Possesses strong negotiation skills and a keen eye for identifying valuable properties.
Exceling at analyzing market conditions, conducting property valuations, and strategically pricing properties to maximize returns. Leveraging an extensive network and industry connections to source off-market opportunities and provide clients with a competitive advantage.
CONTACT US
Please complete the contact form and we will get back to you about any questions you have about our offering.
First Solution Development LLC - 13000 South Tryon Suite FMB136 - Charlotte, NC 28278 — info@firstsolutiondevelopments.com — (704) 733-0335
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