JKV ACCESS FUND LLC

  • Summary

    Summary

  • Strategy

    Strategy

  • Market

    Market

  • Team

    Team

  • Record

    Track Record

JKV Access Fund LLC

Investment Overview

  • Summary

    Summary

    Fund Overview

  • Strategy

    Strategy

    Investing in Single Family Residences

  • Market

    Market

    JKV Investment Footprint & Case Studies

  • Our Team

    Team

    Real estate professionals with 50+ years of experience

  • Track Record

    Track Record

    JKV Historical IRR over 20%

Investment Summary

Fund Type

fund

Single Family Residences

JKV Targeted Return

20%+

Distributions

Quarterly

Min. Fund Investment

$50,000

Expected Close Date

August 7, 2020

Limited spots available to invest

JKV Investment Overview

JKV Opportunities Fund II, LP (“JKV”) is seeking to raise up to $20 million in capital to acquire and resell single-family residential (“SFR”) homes in the supply constrained Southern California market. JKV is targeting a net IRR to investors over 20% annually which will be distributed quarterly to investors. JKV is managed by John Kralik who has purchased, renovated and sold over 5,000 SFR since 2009. The investment strategy is to acquire value-add and distressed starter workforce homes at deep discount prices, typically below replacement cost, fix and renovate these homes in a 60-90 day period and sell the properties in 120-180 days, a so-called “Fix and Flip” strategy. JKV has a strategic edge in its investment strategy as it is a seasoned vertically integrated real estate operator, providing in-house deal sourcing, construction management and brokerage for asset resale. JKV is fully staffed, market tested and has a rock-solid foundation that enables a steady pipeline of investment opportunities even in the current pandemic environment.

  • Performance

    Targeting a 20% + IRR
    Historical Average Annual Return of 17%
    Assets Bought and Sold in 2019 Generated a 29% IRR

  • Experience

    Over 50 Years of Real Estate Experience
    8 Acquisition Associates
    12 Construction Teams
    In-house design

  • Investments

    Over $110 million in Acquired Assets
    John Kralik has acquired over 5,000 SFR since 2009
    3 Funds Under Management

JKV Access Fund LLC

JKV Access Fund LLC (the “Access Fund”) is raising capital to invest in JKV Opportunities Fund II, LP. The Access Fund is raising capital through a “feeder fund” structure by aggregating up to 100 investors at a minimum investment of $50,000 each and will invest the capital into JKV. The Access Fund provides access to invest in JKV, for which a direct investment requires a minimum investment of $100,000. Since the Access Fund will aggregate many investors representing a multi-million investment, the Access Fund has negotiated to receive a 12% Preferred Return, followed by 80% of the remaining profit from JKV, as compared to other investors who invest up to $1 million who will only receive a 10% preferred return followed by just 70% of the remaining profit.

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Key Considerations

  • Experience - JKV is a highly experienced investment manager with over 50 years of combined senior leadership experience and over $110 million in acquired assets. John Kralik has acquired over 5,000 SFR since 2009.
  • 12% Preferred Return – The Access Fund has negotiated to receive a 12% preferred return from JKV followed by 80% of the remaining profit, rather than the 10% preferred return and 70% of the remaining profit for direct investors investing up to $1 million.
  • Proven Track Record – Since 2017, JKV has generated a historical annual return of 17% and an average equity multiple of 3x. Assets bought and sold in 2019 generated a 29% IRR. JKV is targeting an annual projected net IRR of 20% +.
  • Attractive Investment Niche – JKV has expertise in buying, renovating, and selling distressed single-family residences in coastal counties in Southern California, specifically Los Angeles, Orange County, San Diego, and Ventura County.
  • Unique Strategy – The investment strategy is to acquire value-add and distressed starter workforce homes at deep discount prices, typically below replacement cost, fix and renovate these homes in a 60-90 day period and sell the properties in 120-180 days, a so-called “Fix and Flip” strategy.

JKV Service Partners

  •  

  • Fund Administrator

  • Fund Tax and Accounting Services

Access Fund Service Provider


  • Administrative, Tax and Accounting Services

Why Invest Through a Fund

  • FAVORABLE FINANCING

    JKV will take advantage of a historically low interest rates and favorable financing terms at a time when basic SFR investment fundamentals are showing continued strength.

  • INSTITUTIONAL OVERSIGHT

    As an institutional investment manager, JKV will review every aspect and decision related to the acquisition, finance and ongoing operations of the properties.

  • PORTFOLIO DIVERSIFICATION

    The JKV Fund will be a diversified group of single family residence properties.

  • PROVEN TRACK RECORD

    CityVest searches for institutional investment managers who have a strong historical track record with IRR returns well over 10%.

Why Real Estate?

  • Diversification

    Real estate investments are considered a non-correlated alternative asset class.

  • Cash Flow & Appreciation

    Stabilized real estate generally benefits from regular and predictable cash flow.

  • Low Interest Rate

    Historically low interest rates may allow real estate to generate higher cash flows.

  • Income Tax Treatment

    Ordinary income can be minimized through the use of an accelerated depreciation strategy that may generate passive losses.

  • Hedge Against Inflation

    Rents, land values and replacement costs typically move upward with inflation.

  • Multiple Exit Strategies

    Real estate assets can be disposed of through individual or portfolio liquidations, asset refinancing, mergers, or a “roll up” through a portfolio capitalization.

JKV Overview

JKV was formed for the purpose of acquiring distressed or undervalued single-family residential homes, renovating the asset, and selling it. The intention of the fund is to provide investors with a real estate focused investment opportunity that combined income, principal investment growth, and capital preservation. JKV’s primary focus is on creating and maintaining investor wealth through distressed and value-add real estate investment strategies. JKV’s large pool of capital provides enhanced negotiation leverage, as JKV can close acquisitions quickly and without typical first mortgage financing delays. JKV’s management team has identified compelling market opportunities for the acquisition of SFR assets in certain submarkets within Southern California.

JKV Strategy

  • To acquire distressed or undervalued SFR homes, renovate, and sell in short period of time in North America’s largest housing market, Southern California, with a focus on Los Angeles, Orange, San Diego, and Ventura Counties.
  • Utilize in-house underwriting, asset vetting, and acquisition teams, which have developed and refined their process over a 7-year period, and take advantage of competitive edge in acquiring marketed assets due to strong track record of closing transactions and off-market assets due to superior data and best-in-class call center to reach potential distressed sellers.
  • The unique part of the strategy is that the renovated workforce home is FHA or VA financeable at very low interest rates and down payments such that starter and first-time home ownership is obtainable with mortgage payments comparable to rents.
  • JKV employs a dedicated underwriting department using a very formulaic approach based on renovation scope and cost, acquisition value created at the purchase, detailed market comparables, and very local ‘desirability’ creating shorter ownership periods and faster exits for each asset.
  • In-house dedicated call-center sourcing and asset underwriting team.
  • Wholly owned construction subsidiary.
  • Internally owned brokerage dedicated to servicing JKV portfolios in dispositions while assisting in acquisitions.

JKV Fund Objectives

  • Real Estate
    Focused

    Provide investors with a real estate focused investment opportunity that combines income, principal investment growth, and capital preservation.

  • Capital Preservation

    Capital preservation is a key fund design feature. Assets are purchased well below replacement value.

  • Asset Underwriting

    Asset level underwriting of 7-10% gross on invested cash, dependent on projected days owned based on project scope.

  • Investment
    Cycling

    Cycling investment cash between 2-3x per year in new assets drives asset level returns to 14% to 30% per year.

The Management Team

JKV’s management team has more than 50 years of real estate and finance experience and is based in Newport Beach, California. The Manager has purchased more than 213 SFR assets since 2017. Another key competitive advantage is its team of eight acquisition associates, twelve construction teams, and in-house design, permitting and related expertise to execute the value-add strategy efficiently.

Highly Disciplined Investor Focus

  • Downside Protection

    Downside protection and capital preservation are key fund design features. Assets are purchased well below replacement value. This focus has been tested and proven during the Covid-19 shutdown as JKV has suffered no loss in investor capital.

  • Investor Access

    Unparalleled investor access to real-time owned portfolio leads to best-in-class investor transparency.

  • Income Generating

    Income generating fund rather than multi-year back-end success focused. Successful project results are realized in the short-term. Distributions of all profits are made quarterly.

Competitive Edge

  • JKV purchases SFR’s in Southern California at prices ranging from $350,000 to $650,000 with selling prices from $500,000 to under $1.0 million, which is the most liquid segment of SFR homes allowing for faster renovation turn-around times, greatest end-user affordability, and first-time buyer FHA an VA financing (typically 3% down buyers). This sector is the most stable asset class in the most supply constricted housing markets.
  • Strict adherence to Management’s asset vetting and underwriting process, developed and refined over a decade and successfully deployed through John Kralik’s career.
  • Significant asset auction experience and banking relationships leads to purchases at a deep discount in stressed market.

Operating Efficiencies with Vertical Integration

  • Property Sourcing

    In-house dedicated call-center and related asset sourcing and underwriting team.

  • Construction

    Wholly-owned construction subsidiary greatly reduces construction costs and delivery times to generate higher returns.

  • Brokerage

    Internally owned brokerage dedicated to servicing JKV assets, leading to dramatic improvement in total asset hold times.

Impact of Pandemic

The Covid-19 epidemic and shutdown will cause a recession, the severity of which is undetermined. Zillow projects while sales volume will be down 50% from 2019, prices of renovated and new homes will only fall 2% to 3%, and both will rebound by middle of 2021 (“we should expect much more short-term disruption than longer-term and nothing approaching the 30% fall in housing during the financial crisis.” – CEO Rich Barton, Zillow). (1)

Over the past month, JKV is seeing greater discounts on house prices, particularly auction and foreclosure acquisitions, where property inspection may be difficult and renovation is required. At the same time, on fully renovated starter homes, the shortage of properties that are FHA/VA financeable is leading to steady pricing compared to January 2020/pre-pandemic pricing. While the investment return generated on each sale is expected to increase over the next year, it is also anticipated that finding the right buyer may take slightly longer as people and the economy struggles to recover. Overall, the higher margin, even with longer hold times, is expected to generate higher overall returns for JKV.


Historical Impacts

  • Single-Family investment was born from the last economic crisis when a cascade of foreclosures enabled a new class of institutional flip and rental operators to emerge by buying distressed properties en-masse.
  • 2008 style distress in the U.S. housing market is highly unlikely given robust underlying market fundamentals and the lingering housing shortage, but opportunities may still emerge for accretive portfolio growth.
  • Fueled by the maturing millennial generation, the 2020s were already poised to be a decade of SFR 'suburban revival' and behavioral changes in the post-coronavirus world could be an added spark.

    Notwithstanding lack of supply of low priced SFR, JKV expects the economic recession will hurt many first-time homebuyers and that it will take an extra 30 days selling time per asset. However, with a shift to acquisitions being made through auctions (1/3 thru distressed channels) at more attractive prices, the asset level return is expected to increase. If capital is cycled every 195 days, then JKV is expecting the average Return on Investment, net of fees, to be 23%, on an annualized basis.

Southern California Housing Market Economics

Management believes this is the “best real estate in the US” based on overall desirability, strong housing demand, weather, culture, entertainment, business centers, infrastructure, transportation, shopping and educational opportunities. There are limited-to-no housing starts under the $800K price point for one simple reason: average land costs + construction costs preclude profit. JKV acquires SFR assets at values under replacement cost. Huge mismatch of supply and demand (LA Times July 26, 2017). In other words, the supply of sub-$800,000 low-to-mid-tier SFR is limited and constrained while demand is the largest in the US.

  • Best Real Estate

    Management believes this is the “best real estate in the US” based on overall desirability, strong housing demand, weather, culture, entertainment, business centers, infrastructure, transportation, shopping and educational opportunities.

  • Limited New Housing

    There are limited-to-no housing starts under the $800K price point for one simple reason: average land costs + construction costs preclude profit. JKV acquires SFR assets at values under replacement cost.

  • Supply & Demand

    Huge mismatch of supply and demand (LA Times July 26, 2017). In other words, the supply of sub-$800,000 low-to-mid-tier SFR is limited and constrained while demand is the largest in the US.

  •  
  • Affordable Housing

    JKV is focused on addressing the lack of affordable housing prevalent in our current markets.

  • Population

    Southern California has the third-highest concentration of people between the ages of 25 and 34 in the nation.

Southern California Market

The Southern California housing market is the largest in the US and the sub-$750,000 segment presents an attractive, sustainable opportunity for investment.  There is a severe housing shortage in 5 target SoCal counties and this will not abate following the Covid-19 outbreak, even as prices will adjust downward over the near-term.

Fewer New Starter Homes Are Being Built

1. Management believes this is the “best real estate in the US” based on overall desirability, strong housing demand, weather, culture, entertainment, business centers, infrastructure, transportation, shopping and educational opportunities.

2. There are limited-to-no housing starts under the $800K price point for one simple reason: average land costs + construction costs preclude profit. JKV acquires SFR assets at values under replacement cost.

3. Huge mismatch of supply and demand (LA Times July 26, 2017). In other words, the supply of sub-$800,000 low-to-mid-tier SFR is limited and constrained while demand is the largest in the US.

4. JKV is focused on addressing the lack of affordable housing prevalent in our current markets.

5. Southern California has the third-highest concentration of people between the ages of 25 and 34 in the nation.

Southern California Housing Market Economics

Management believes this is the “best real estate in the US” based on overall desirability, strong housing demand, weather, culture, entertainment, business centers, infrastructure, transportation, shopping and educational opportunities. There are limited-to-no housing starts under the $800K price point for one simple reason: average land costs + construction costs preclude profit. JKV acquires SFR assets at values under replacement cost. Huge mismatch of supply and demand (LA Times July 26, 2017). In other words, the supply of sub-$800,000 low-to-mid-tier SFR is limited and constrained while demand is the largest in the US.

  • Personal Income

    Rising confidence in Los Angeles’s finances has coincided with a 19% rise in per capita personal income over the past five years, beating New York's 18%, Chicago's 17% and the U.S. average of 15%.

  • GDP Per Capita

    L.A.’s gross domestic product per capita surged 11.8% in the past five years, dwarfing Chicago’s 7.4%, almost three times New York’s 4.1% and twice the average for 383 U.S. metropolitan areas. Some of the gain is attributed to population growth of 2.5% as New York grew 2.1% and Chicago declined 0.2%.

  • Home Values

    During the five-year period, home values in Los Angeles increased 49%, easily surpassing the U.S. average of 28%.

Garrick

Slymar, CA

fund

Investment Summary

This SFR assets was purchased by JKV and represents a typical example of asset metrics and asset returns. Of particular note the return is at asset levels and typical fund capital is utilized 2-2.5x times per year driving annual cash-on-cash returns.

Actual financial results may vary significantly from what is provided in this presentation. Information and targeted returns are for illustrative purposes only. All returns are based on equity invested by JKV.

Investment Summary

Property Type

Multi-Family

Location

Slymar, CA

Purchase Price

$367,000

Sale Price

$585,000

Sq. Footage

1,150

Purchase Date

9/18/2019

Reno (inc. soft costs)

$75,000

Days Owned

146

Equity Invested

$194,811

Year Built

1955

Beds/Baths

3/2

Underwriter Gross Profit

$49,888

Actual Gross Profit

$63,851

Actual ROI

33.50%


(*) Fund returns and yields are not guaranteed.

Noble

Van Nuys, CA

fund

Investment Summary

This SFR assets was purchased by JKV and represents a typical example of asset metrics and asset returns. Of particular note the return is at asset levels and typical fund capital is utilized 2-2.5x times per year driving annual cash-on-cash returns.

Actual financial results may vary significantly from what is provided in this presentation. Information and targeted returns are for illustrative purposes only. All returns are based on equity invested by JKV.

Investment Summary

Property Type

Multi-Family

Location

Van Nuys, CA

Purchase Price

$590,000

Sale Price

$795,000

Sq. Footage

1,562

Purchase Date

10/4/2019

Reno (inc. soft costs)

$75,500

Days Owned

133

Equity Invested

$181,860

Year Built

1953

Beds/Baths

4/2

Underwriter Gross Profit

$29,390

Actual Gross Profit

$23,800

Actual ROI

13%


(*) Fund returns and yields are not guaranteed.

Bronte

Oceanside, CA

fund

Investment Summary

This SFR assets was purchased by JKV and represents a typical example of asset metrics and asset returns. Of particular note the return is at asset levels and typical fund capital is utilized 2-2.5x times per year driving annual cash-on-cash returns.

Actual financial results may vary significantly from what is provided in this presentation. Information and targeted returns are for illustrative purposes only. All returns are based on equity invested by JKV.

Investment Summary

Property Type

Multi-Family

Location

Oceanside, CA

Purchase Price

$315,000

Sale Price

$465,000

Sq. Footage

1,404

Purchase Date

9/26/2018

Reno (inc. soft costs)

$85,066

Days Owned

92

Equity Invested

$108,066

Year Built

1962

Beds/Baths

3/2

Underwriter Gross Profit

$17,705

Actual Gross Profit

$18,231

Actual ROI

7.10%


(*) Fund returns and yields are not guaranteed.

4th Street

Long Beach, CA

fund

Investment Summary

This SFR assets was purchased by JKV and represents a typical example of asset metrics and asset returns. Of particular note the return is at asset levels and typical fund capital is utilized 2-2.5x times per year driving annual cash-on-cash returns.

Actual financial results may vary significantly from what is provided in this presentation. Information and targeted returns are for illustrative purposes only. All returns are based on equity invested by JKV.

Investment Summary

Property Type

Multi-Family

Location

Long Beach, CA

Purchase Price

$425,000

Sale Price

$635,000

Sq. Footage

1,700

Purchase Date

7/24/2018

Reno (inc. soft costs)

$106,921

Days Owned

185

Equity Invested

$131,559

Year Built

1908

Beds/Baths

3/1.5

Underwriter Gross Profit

$131,559

Actual Gross Profit

$72,703

Actual ROI

40.4%


(*) Fund returns and yields are not guaranteed.

JKV Fund Management Team

JKV has assembled a team of motivated real estate professionals with a combined 50+ years. John Kralik has purchased, renovated and sold over 5,000 SFRs since 2009. JKV is a seasoned vertically integrated real estate operator with a full in-house team providing deal sourcing, construction management and brokerage.

  • John Kralik

    John Kralik

    Founder & CEO

  • Nick Smith

    Nick Smith

    Partner

  • Bryan Hill

    Bryan Hill

    Director of Sales & Fund Manager

  • Alex Pirro

    Alex Pirro

    VP of Field Operations

Founder & CEO

John Kralik is founder and CEO of JKV Capital. Formerly Mr. Kralik was President of Pintar Investment Company, a real estate investment firm focused primarily on the residential housing sector. Under his leadership, Mr. Kralik successfully oversaw all operational and investment aspects of the firm, including all acquisitions, dispositions and management of funds for over 5,000 off-market properties. Mr. Kralik successfully invested funds in excess of $500 million on behalf of institutional clients including Colony Capital, KKR Beazer, and Goldman Sachs and $1 billion of capital with private investors into the distressed SFR rental sector. He graduated from Loyola Marymount University in Los Angeles and is an active member of YPO (Young Presidents Organization).

Partner

Nick Smith is a Partner with JKV Capital, LLC. Mr. Smith previously led private investment deal sourcing for group comprised of high-net-worth investors and family offices. Mr. Smith led business development for Angelo, Gordon & Co., an alternative investment firm managing over $30 billion in assets globally and headquartered in New York focused on acquiring office and industrial real estate. He also worked at McColl Partners, a middle-market investment bank, advising business owners and shareholders in M&A and private capitalizations. Mr. Smith graduated with honors from Louisiana State University with a BS and MS in Economics and Finance. He also earned his MBA from The Wharton School at The University of Pennsylvania.

Director of Sales & Fund Manager

Bryan Hill is Director of Sales with JKV Capital, LLC where he oversees all assets from acquisition to resale. Bryan is also the President and Broker of Record for Upstart Residential, Inc where he oversees all agents and staff while implementing sales processes company wide. The team at Upstart Residential facilitates the preparation and resale of all assets in JKV’s portfolio. Prior to joining JKV Capital, LLC, Mr. Hill sold residential real estate throughout Southern California, representing over two hundred fifty million in sales volume. In addition to his 10-plus years of real estate experience, Bryan also received his Bachelor of Science in Real Estate from Arizona State University.

VP of Field Operations

Mr. Pirro is the VP of Field Operations with JKV Capital, LLC where he oversees the internal acquisition team and the coordination of all renovations. Prior to joining JKV Capital, LLC, Mr. Pirro was the Regional Managing Director at Pintar Investment Company where he was responsible for sourcing, identifying and creating compelling returns for institutional and private investors such as Colony American Homes, KKR/Beazer, and Progress Residential, LP. In addition, Mr. Pirro has extensive experience in 1031 exchange transaction and has spent 8 years in the mortgage lending business. Mr. Pirro graduated from Chapman University with a Bachelor of Science in Business Administration and was awarded Chapman University’s Founder’s Scholarship for academics.

  • Brent Leffel

    Brent Leffel

    Board of Advisors

  • Romir Bosu

    Romir Bosu

    Board of Advisors

  • Martin Hubbard

    Martin Hubbard

    Board of Advisors

Board of Advisors

Romir Bosu is CEO of Nadavon Capital partners based in Newport Beach CA. Nadavon is a specialty investment firm Focused on high growth opportunities. He is also Chairman of Accume Partners. He founded Compushare in 1995, which grew to over 1,000 clients, stood alone as a financial services technology provider with dominant market share across the United States and became the most comprehensive financial technology management company of its kind. Compushare is now a wholly owned subsidiary of D+H, a publicly-traded company with a market capitalization in excess of $2 billion.

Board of Advisors

Martin Hubbard is the principal of The Core Group, a California based leadership consulting organization that works extensively with CEO’s and other business leaders to enhance their professional effectiveness and to create tangible and sustainable results within their organizations.

Board of Advisors

Brent Leffel has over 20 years of experience as an investment banker, principal investor, board member, entrepreneur and operating executive. Brent is the Founder and managing Partner of Equity38 based on Newport Beach. During his career, Brent has sourced, negotiated and managed transactions with a value in excess of $3 billion.

JKV - Property Acquisition History

Since inception, all assets acquired and subsequently resold by JKV produced an average annualized gross return of 17.2%. The absolute return on investment was 8.8% over a portfolio average of 184 days per asset. As JKV has gained more experience, built out its acquisition, construction and sales team and become vertically integrated, investment returns have steadily improved. For all assets purchased and sold in 2019, levered return on investment on an annualized basis was 29%, or an absolute return of 13% over an average holding period of 165 days. Management’s goal for Fund II is to provide investors annualized cash dividends of greater than 20% each year, payable quarterly.

JKV Track Record

In summary, Fund II will benefit from fully integrated operational efficiencies and reduced entry prices at purchase. Exit pricing estimated to fall slightly or remain stable due to the persistent housing shortage in Greater Los Angeles. Based on market intelligence many local competitors will NOT return to the fix and flip market in the near-term.

Asset Level Metrics and Acquisition Channel Comparisons

The following chart details distinct institutional advantages of investing in a fix and flip property fund from a proven vertically integrated firm. Additionally, the ability to source assets in foreclosed channels, presented in Auction Acquisition below, highlights a projected uptick in volume and profitability of auction or bank-owned assets that will greatly boosts annual cash-on-cash return to investors that could represent a 32% gross return.

JKV Highlights

(a) JKV Vertical Integration
1. In-House Construction Team, Escrow, and Brokerage versus contracting for such serivces at market prices
2. Volume Cost on 3rd Party Service Providors
3. JKV has a lower Cost of Debt Capital due to volume/experience
4. All integration advantages lead to reduced asset hold times translating into better investor returns.

(b) JKV Auction Acquisition Model Acquiring Assets at Auction or REO from Banks
1. Purchase price reduction of 5% versus market price.
2. No escrow expense in direct transaction.

JKV Access Fund LLC

The following JKV Access Fund documents are available to view:

  • Investor Document Package JKV Access Fund

  • Entity Investor Document Package JKV Access Fund

  • JKV Wire Instructions

  • Accredited Investor
    Verification Letter

JKV Opportunity Fund II, LP Terms

The following JKV Fund Documents are available to view:

  • Executive Summary

    The executive summary provides an overview of JKV Opportunity Fund II.

  • Presentation

    The Presentation provides an overview of JKV Opportunity Fund II and investing in student housing and multifamily communities.

  • PPM

    The Private Placement Memorandum (PPM) for prospective investors for the JKV Opportunity Fund II.

JKV Access Fund LLC Terms

Investment Summary

Fund

JKV Access Fund LLC (the “Access Fund”)

Fund Managing Member

CV Manager LLC

Technology Fee

The Access Fund will pay CV Marketplace 0.75% (75 basis points) of the Fund capital per year for annual Investment Dashboard technology and information functions such as investment reporting and other communication.

Administrative Expenses

The Access Fund will pay CV Marketplace LLC $500 per investor per annum for managing annual investment accounting and distributions.

Organizational Expenses

The Access Fund will pay CV Manager a one-time fixed fee of $50,000 for organizational and formation expenses.

Minimum Investment Amount

$50,000, subject to change in select cases

Distributions

Quarterly, paid out of distributions from JKV

Investment Returns

JKV will pay the Access Fund a 12% Preferred Return. After the Preferred Return, the Access Fund shall receive 80% of JKV Profits.

Targeted Fund Amount

Estimated $4,000,000

Expected Offering Close

Documentation, Accredited Status and Wire Transfer is expected to be completed by the Closing Date of August 7, 2020

Term

3 years, plus 2 optional 1-year renewals

WCI Investors

WCI investors may invest as little as $25,000 and the Technology Fee is reduced in half for the first year

Fund Administration/Accounting

Assure Services will be paid at closing for all accounting, tax and other administration services for the life of the fund.

JKV Opportunity Fund II, LP Terms

Investment Summary

Targeted Return

20% + net of fees.

Preferred Annual Return

Access Fund: 12% Preferred Return
Class A (investment above $1,000,000): 12% Preferred Return
Class B (investment below $1,000,000): 10% Preferred Return

Management Fee

1.00%

Profit Split after Preferred Return

Access Fund: 80% Investor / 20% Manager
Class A (investment above $1,000,000): 75% Investor / 25% Manager
Class B (investment below $1,000,000): 70% Investor / 30% Manager

Fund Term

3 years plus 2 optional 1-year renewals

Minimum Investment

$100,000

Target Fund Size

$20,000,000

Important Disclosure Statement for JKV:

An investment in the units of JKV is speculative and risky. No assurance can be given that investors will realize their investment objectives or will realize a substantial return (if any) on their investment. Investors should be able to bear the complete loss of their investment in JKV. For this reason, each prospective subscriber for JKV should carefully read JKV’s Private Placement Memorandum (“Memorandum”) and all Exhibits to the Memorandum. Each prospective subscriber should consult with his attorneys, accountants, and business advisors prior to making an investment in JKV. Only qualified, eligible investors may invest in JKV.

JKV will invest in multifamily, residential real estate, which includes apartment and student housing. As such, investment in the Units does not constitute a diversified investment. JKV intends to diversify its investments by investing in multiple multifamily residential properties throughout the United States. JKV intends to hold approximately 20 properties with no single investment representing more than 20% of JKV's total invested capital. Anticipated portfolio characteristics may differ from actual portfolio holdings. An inability to raise substantial funds in this Offering could also result in substantial limitations on JKV’s ability to achieve a diversified portfolio of assets.

Because this is a blind pool offering, investors will not have the opportunity to evaluate investments before JKV makes them, which makes an investment in JKV more speculative. The investors must rely on the management of JKV and to make all investment decisions. There can be no assurances or guarantees that JKV’s investment objectives will be realized or JKV’s investment strategy will prove successful.

An investment in JKV may be affected by a number of factors beyond the control of the management of JKV that will affect the value of JKV’s investments. These include risks typically associated with investments in residential real estate that produce income such as increased vacancy rates, re-letting risk, or decreased rental rates, adverse changes in general economic conditions or local conditions that may reduce the demand for multifamily residential properties, changes in the demand for or supply of competing properties in an area, unanticipated holding costs, the availability and cost of necessary utilities and services, changes in real estate tax rates and other operating expenses, changes in governmental rules and fiscal policies, changes in zoning and other land use regulations, environmental risks such as mold contamination or environmental claims that could be made against JKV, and natural disasters, most of which are not covered by insurance.

JKV will operate in a highly competitive market for investment opportunities. JKV's profitability depends, in large part, on the ability to acquire profitable investments. In doing so, JKV will compete with numerous other entities and individuals engaged in real estate investment activities, many of which have greater financial, technical, marketing, and other resources than JKV. Poor performance of the investment management in selecting investments for JKV, or poor performance of any investment, could adversely affect the profitability of JKV and the overall return to the investors.

JKV may make investments through a joint venture or co-investment arrangement. Such arrangements may be on terms that limit JKV’s ability to control the investments and to receive returns on those investments.

Adverse economic conditions may adversely affect the ability of JKV to obtain financing. Unfavorable financing terms or the inability to obtain financing would adversely affect the operating results of JKV. The high level of leverage on the properties increases the debt service risks and the likelihood of foreclosure. JKV's borrowing of capital increases the risks of adverse effects on JKV's financial condition.

The investment manager of JKV has a limited operating history and track record upon which prospective investors may base an evaluation of its likely performance. Prospective investors should not rely on the past success of the investment manager's affiliates. The success of JKV is significantly dependent upon the expertise of certain investment or support personnel and any future unavailability of their services could have an adverse impact on the JKV’s performance. The General Partner and a majority of Limited Partners may agree to amend the JKV Agreement, which could be adverse to some limited partners. It is impossible to predict accurately the results from an investment in the JKV because of general risks associated with the complete reliance on the General Partner and its affiliates to identify and negotiate the investments to be acquired by JKV.

The proposed method of operation of JKV creates certain inherent conflicts of interest among the JKV, JKV, the General Partner and their affiliates. The liability of the investment manager is limited. JKV and its affiliates may compete with JKV's investments and may provide services to the JKV or Property Owners. JKV may make direct investments in affiliates of the investment manager. The investment manager may have conflicting fiduciary obligations with respect to the allocation of investment opportunities. The investment manager and its affiliates will receive compensation and reimbursements. Certain compensation to the investment manager and its affiliates has not been established by arms-length agreement. JKV's and the investment manager's officers and agents will engage in other management activities. A single legal counsel will represent JKV, the investment manager, JKV and their affiliates.

The investment manager may have conflicting fiduciary obligations when making investments through a joint venture or co-investment with an affiliate of the investment manager. These transactions may not be the result of arm's-length negotiations and may involve conflicts between the JKV's interests and the interests of the investment manager and its affiliates. The investment manager will use reasonable efforts to ensure that the terms and conditions of such transactions will be no more favorable to the affiliate than could be obtained by arms-length negotiations with an independent third party.

An investment in JKV is illiquid. No public or other market will develop for the Units. These securities are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under the Securities Act of 1933, as amended and the applicable State securities laws, pursuant to registration or exemption there from. Prospective investors should be aware that they will be required to bear the financial risks of any investment in these securities for an indefinite period of time.

Units of JKV are offered without registration under any securities laws due to a reliance on an available exemption. Although, JKV’s offering documents are not reviewed or approved by federal or state regulators, JKV must comply with a variety of legal and compliance requirements. Failure to comply with the requirements for a private offering exemption would adversely affect JKV. Maintenance of an Investment Company Act exemption may impose limits on JKV's operations, and if JKV becomes subject to the Act, JKV would likely be unable to continue its business.

To the extent Fund cash flow permits, the investment manager intends to make monthly distributions to the Limited Partners, however, the investment manager may reinvest all or a portion of proceeds received from CityVest on or before December 31 2020, rather than using such proceeds to make distributions to the Limited Partners. Prospective investors should be aware that the sole source of cash from which JKV will make cash distributions on the Units will be from revenues received from investments made by JKV. No assurance can be made that JKV will receive sufficient return on its investments to enable it to make any distributions to the Limited Partners.

Certain statements included in this presentation constitute "forward-looking statements" and are subject to a number of significant risks and uncertainties. Any such forward-looking statements contained herein should not be relied upon as predictions of future events. Certain such forward-looking statements can be identified by the use of forward-looking terminology such as "believes," "expects," "may," "will," "could" "would likely," "should," "seeks," "approximately," "intends," "plans," "estimates," "anticipates," "continue" or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy, plans or intentions. Such forward-looking statements are subject to numerous risks and are necessarily dependent on assumptions, data or methods that may be incorrect or imprecise and may not be realized. In that regard, actual results may differ materially from those in forward-looking statements. As a result of the foregoing, no assurances can be or are given as to future results of operations or financial condition of JKV.

JKV’s investment approach has complex tax implications for investors. These ramifications should be reviewed carefully and applied to each investor’s individual circumstances. JKV may involve structures or strategies that may cause delays in important tax information being sent to investors. You should obtain investment and tax advice from your advisers before deciding to invest.

This material includes certain statements, estimates and projections of JKV with respect to the anticipated future performance of JKV. Such statements, estimates and projections reflect various assumptions of the investment manager that may or may not prove to be correct, and no assurance can be made that JKV can or will attain such results. Nothing contained herein is or should be relied on as a promise or representations as to the future performance of JKV.

These materials (the “Presentation”) have been provided for informational purposes only and neither constitutes the Memorandum of JKV nor provide a comprehensive disclosure of both the terms of investment and risk disclosures associated with an investment in JKV. This Presentation is not a complete summary of the terms of JKV or the background information of persons associated with the Investment Manager and is qualified in its entirety by, and must be read in conjunction with, the more detailed information included in the Memorandum, the governing documents of JKV, the Subscription Agreement of JKV, the Form ADV of the investment manager, and other related documentation, copies of which may be obtained by contacting JKV at (713) 231-1421.

This Presentation, furnished on a confidential basis to the recipient, is neither an offer to sell nor a solicitation of any offer to buy any securities, investment products or investment advisory services, including units of JKV. This presentation is not an advertisement and is not intended for public use or distribution and is intended exclusively for the use of the person to whom it has been delivered. An Offer may be made only by means of the Memorandum. This sales literature must be accompanied or preceded by that memorandum and read in conjunction therewith to fully understand the implications and risks of the securities to which it relates.

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The information on this website does not constitute an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any investment or security described herein. Any such offer or solicitation shall be made only pursuant to the final confidential offering documents of any entity described on this website, which will contain information about each entity’s investment objectives and terms and conditions of an investment and may also describe certain risks and tax information related to an investment therein and which qualifies in its entirety the information set forth herein. The information contained herein does not constitute part of the offering documents of any entity. An investment in any investment included on this website, entails a high degree of risk (including the possible loss of a substantial part, or even the entire amount, of an investment) and no assurance can be given that any entity’s investment objectives will be achieved or that investors will receive a return of their capital. Past returns are not indicative of future performance.

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CityVest does not make investment recommendations, and no communication through this website or in any other medium should be construed as such. Private placements on CityVest.com are intended for accredited investors (for persons residing in the U.S.), and for persons residing abroad in jurisdictions where securities registration exemptions apply. Private placements of securities are not publicly traded, are subject to holding period requirements, and are intended for investors who do not need a liquid investment. Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by CityVest, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.

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Value Add

Risk of Loss
Medium 1
Leverage
60-75% 2
Occupancy Rate
Less than 80% 2
Strategy
Heavy Renovations​/Major Retenanting 2
Stable Tenants
Few​/None 2
Hold Period
1-3 Years 2

1 The Risk of Loss is relative to other investment profiles. There is always a risk of total loss.

2 These are typical attributes for this profile of investment and may or may not represent this particular investment.

Single-Family

A single family residence (SFR) is the most common type of home which is a single family detached, stand-alone structure with its own lot intended for one family.

Target Return (IRR)

The estimated annual return which includes both the annual cashflow and the sale proceeds.

Target Annual Cash

The estimated average percentage annual cash return from the investment.

Estimated Hold

Estimated hold period from investment to realization.

Preferred Return

The preferred return or “pref” is a percentage cumulative return on initial investment that investors must attain prior to the investment manager’s participation in the profits.

Fund Size

JKV Fund is raising a maximum of $20,000,000