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Everyday Capital LLC
August 1, 2018
Private Placement Memorandum
For the Exclusive Use of: _____________________________________		 Memorandum No._____________________________
Copyright © 2018
All Rights Reserved. This Private Placement Memorandum, or parts thereof, may not be reproduced in any form without permission.
This Private Placement Memorandum is provided solely for convenience and does not constitute legal or investment advice. The
materials in this Private Placement Memorandum are provided for information purposes only. The information is provided by Everyday
Capital LLC, and while we endeavor to keep the information up to date and correct, we make no representations or warranties of any
kind, express or implied, about the completeness, accuracy, or reliability of the data contained in this Private Placement Memorandum
or the suitability of the offering for an investor.
Any graphics utilized in this Memorandum are for display purposes only and, unless otherwise noted, are not necessarily related to the
operations of the Company.
CONFIDENTIAL
This Private Placement Memorandum contains confidential and proprietary
information belonging exclusively to Everyday Capital LLC.
Everyday Capital LLC
CONTENTS
SYNOPSIS OF OPERATIONS
Introduction				 9
Summary of the Fund				 10
Why Everyday Capital?	 12
U.S. Macro Forecast			 15
The Market			 16
Trends in 2017		 18
The Management Team				 20
PRIVATE PLACEMENT MEMORANDUM
PPM Summary			 27
Offering Summary			 32
Certain Notices			 36
Disclosures				 38
NASAA Legend			 39
Preliminary Risk Disclosure		 43
Plan of Operations			 44
Ownership			 54
Management Compensation	 56
Board of Advisors	 57
Investor Suitability Standards	 58
Forward Looking Information	 62
Certain Risk Factors			 64
Use of Proceeds			 78
ERISA Considerations		 81
EXHIBITS
Exhibit A: Supporting Documentation and Data				 84
Exhibit B: Operating Agreement	 92
Exhibit C: Financials		 140
Exhibit D: Subscription Agreement & Investor Suitability Questionnaire	 144
SECTION 1: Synopsis of Operations
8
EverydayCapitalLLC
9
SECTION1:SynopsisofOperations
INTRODUCTION
Everyday Capital LLC (the “Company”, the “Fund”) is a Delaware Limited Liability Company, and was recently formed for the purpose
of raising and managing capital for deployment into originated real estate secured notes and real estate assets. The Company
is managed by Clear the Way, Inc. (the “Manager”) which has been successfully operating since August of 2010 as a New York
State corporation. Everyday Capital LLC is a real estate investment fund designed to uniquely stand out from traditional real estate
investment funds. The localized expertise, diversification of real estate holdings and “hands on” experience of the Management team
enables the Company with the potential for providing more stabilized return for its investors.
Everyday Capital LLC, has existing working relationships with local and national operators who have successful track records in
both lending and real estate holdings. The Manager and individual principals of the Manager also have a working knowledge and
understanding of real estate investing gained through over 15 years experience with over $2 million of its own capital invested in
real estate transactions including single family houses, apartment buildings, mixed use, new construction, originating mortgages,
restructuring nonperforming real estate assets and property management in multiple States. Additionally, the Manager has a past
seven-year track record using both models discussed in the Memorandum creating double digit returns for its investors. The geographic
focus for the Fund is the New York market, with an emphasis on working with operators located on Long Island, NY, and other
strategic markets.
Everyday Capital, LLC manager has a past 5-year track record providing double digit returns to its investors using a successful
business model of focusing on two separate strategies. 1.) Originating commercial mortgage notes for real estate operators who
purchase distressed assets improve them through construction or management and sell for a profit, and; (b) also engage in joint
venture ownership in real estate with experienced sponsors by directly purchasing and improving and managing such properties for
cash flow. This dual strategy provides the potential for more immediate cash flow while may also act as a hedge against inflation.
The real estate projects that are the focus of the company are designed with the intent to improve the quality the lives for tenants,
operators, homeowners, communities and especially create profits for our investors. Thus, our motive is not just to make money
but to make a lasting difference in the lives of others. Further, in an effort to improve baseline returns for investors, and to make the
Manager compensation more performance based, the Fund is managed with a nominal one percent (1%) annual fund management
fee.
The Company invites potential accredited investors to carefully review the Company’s Private Placement Memorandum and encourages
potential investors to ask questions of management regarding the Company’s forward operational plans and this Offering by calling
646-396-0242.
10
SUMMARY OF THE FUND
The Company Everyday Capital LLC
The Manager Clear the Way, Inc.
Company
Description
Everyday Capital LLC (the “Company”) was formed in the state of Delaware for the purpose of
originating and servicing private loans as well as acquiring and managing real estate assets. The
Company will seek to a provide participating investors with a real estate focused investment
opportunity that combines income, projected principal investment growth, and elements of capital
preservation and securitization.
EverydayCapitalLLC
11
SECTION1:SynopsisofOperations
Terms of the Offering
The Company is offering a minimum of 1,000 and a maximum of 50,000 Class A Membership Units
at a price of $1,000 per Unit. Upon completion of the Offering between 1,000 and 50,000 Class A
Membership Units will be issued.
The Class A Membership Units sold through this Offering shall participate in distributions of net
cash flow from operations on the following schedule and terms; (i) a distribution to the Class A
Members to equal an annual five percent (5%) non-compounding cumulative Preferred Return
Distribution (the “Preferred Return”), distributed to Class A Members annually in year one and
quarterly thereafter, and calculated based on the Member’s adjusted Capital Account balance and;
(ii) any remaining net cash flow shall be distributed pro-rata seventy percent (70%) to the Class A
Members and thirty percent (30%) to the Class B Members.
See Exhibit B - Operating Agreement.
Subscription Period
The Offering will terminate on the earliest of: (a) the date the Company, in its discretion, elects to
terminate, or (b) the date upon which all Units have been sold, or (c) June 30, 2019, or such date
as may be extended from time to time by the Company, but not later than 180 days thereafter (the
“Offering Period”.)
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Investing in Real Estate and Private Lending
EverydayCapitalLLC
What is unique about Everyday Capital LLC?
•	 We expect to position the Fund to manage risk better than our competitors because of our intimate knowledge and experience in
local markets.
•	 We provide education to our investors and sponsors on how to maximize their savings and investment funds
•	 We provide projected higher than average returns due to our investment diversification, proper use of leverage, and the way we
structure real estate deals
•	 We improve communities through quality housing, building development and homeownership programs
•	 Access to affiliated accountants and financial planning professionals to assist managing your investments and maximizing tax
advantages
•	 We have a full team of Realtors, attorneys, title company and property management professionals in each geographic area in
which the Fund invests capital
•	 Management is a Licensed Real Estate Brokerage
•	 Management is a Licensed Commercial Mortgage Broker and licensed NY loan officer
•	 Quarterly reporting with Internet access transparency of each property
•	 Personalized investor relations
•	 Low management fees
•	 Dozens of referrals and testimonials
• 	 We encourage potential investors to see our Google reviews on LIREIA
WHY EVERYDAY CAPITAL?
SECTION1:SynopsisofOperations
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SECTION1:SynopsisofOperations
U.S. MACRO FORECAST
Slightly Brighter Outlook for Growth and Labor Markets in 2018 and 2019
The U.S. economy looks slightly stronger now than it did three months ago, according to 36 forecasters surveyed by the Federal
Reserve Bank of Philadelphia. The forecasters predict real GDP will grow at an annual rate of 3.0 percent this quarter and next quarter,
up slightly from the estimates of three months ago. On an annual-average over annual-average basis, the forecasters predict real GDP
growing 2.8 percent in 2018, 2.7 percent in 2019, 1.9 percent in 2020, and 2.0 percent in 2021.
The forecasters see a marginally brighter outlook for the unemployment rate. The forecasters predict the unemployment rate will
average 3.9 percent in 2018, 3.7 percent in 2019, 3.9 percent in 2020, and 4.0 percent in 2021. The projections for 2018 and 2019
are slightly below those of the last survey, indicating a better outlook for unemployment.
The panelists also predict an improvement in employment for 2018 and 2019. The projections for the annual-average level of nonfarm
payroll employment suggest job gains at a monthly rate of 185,900 in 2018, up from the previous estimate of 175,100, and 160,800
in 2019, up from 150,300 estimated three months ago. (These annual-average estimates are computed as the year-to-year change
in the annual-average level of nonfarm payroll employment, converted to a monthly rate.)
Source: Second Quarter 2018 Survey of Professional Forecasters, Federal Reserve Bank of Philadelphia
Release Date: May 11, 2018
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The National Rental Market
EverydayCapitalLLC
NATIONAL INDEX UP 0.4% MONTH-OVER-MONTH
Rents are now rising in most the country’s biggest markets, though growth is still flat or down in some of the priciest areas. Following
a sustained stretch of flat to declining rent growth for much of 2016, our national rent index has now increased in each of the past
four months. Rents grew at a rate of 0.4% between March and April, which is the same rate of growth we saw between February and
March. For comparison, rents were essentially flat at this time in each of the two prior years.
Year-over-year growth at the national level currently stands at 2.7%; note that this rate has more than doubled since last December,
when it came in at 1.3%. Growth is now nearly matching the 2.8% rate from this time last year, but still lags behind the 3.4% pace
from April 2015. Given the flat rent growth over most of 2016 and steady construction of new units in many areas, we had expected
2017 to be a good year for renters, but our index is now showing fairly strong rent increases at the national level. This could be related
to the fact that there is currently a severe lack of homes for sale, particularly in the more affordable price tiers. This shortage may be
causing many potential first-time homebuyers to continue renting, leading to increased demand and rising prices in the rental market.
In addition to the growth the national level, rents are increasing in most of the nations biggest markets. 91 of the nation’s 100 largest
cities have experienced positive year-over-year growth, and 74 saw increases over the past month. While, growth at the national
level has been picking up, it is only slightly outpacing overall inflation, which is currently estimated at 2.0%. On the other hand, some
individual markets are seeing more substantial increases, with 17 of the cities mapped above logging year-over-year growth above 5%.
Reno, NV leads the way for rent growth, with increases of 1.1% over the past month and 9.2% over the past year; the median
2-bedroom apartment there costs $930. Arlington TX, comes in 3rd with 7.6% year-over-year growth, while nearby Fort Worth also
experienced a steep increase of 4.5%; these cities are both more affordable options outside Dallas, where rents rose 2.9% over the
past year to $1,750 for a 2-bedroom. At the state level, Washington saw the fastest year-over-year growth at 5.4%, with rents in each
of the state’s large cities growing at rates well above the national average (7.3% in Vancouver, 5.4% in Tacoma, 5.4% in Seattle, and
4.7% in Spokane).
THE MARKET
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SECTION1:SynopsisofOperations
The Private Lending Market
THE MORTGAGE MARKET IS NOW DOMINATED BY NON-BANK LENDERS
Most borrowers, whether they are purchasing property or refinancing their home, focus on their mortgage rate and loan terms rather
than the type of lender they choose. Yet the landscape of the lending market has shifted dramatically over the past few years from
domination by big banks to a market where more loans are made by non-banks — financial institutions that only make loans and do
not offer deposit accounts such as a savings account or checking account.
“For consumers, it doesn’t really matter whether you get your loan through a bank or a non-bank, although in some ways non-banks
are a little more nimble and can offer more loan products,” says Paul Noring, a managing director of the financial-risk-management
practice of Navigant Consulting in Washington. “The impact is bigger on the housing market overall, because without the non-banks
we would be even further behind where we should be in terms of the number of transactions.”
In 2011, 50 percent of all new mortgage money was loaned by the three biggest banks in the United States: JPMorgan Chase, Bank
of America and Wells Fargo. But by September 2016, the share of loans by these three big banks dropped to 21 percent. At the same
time, six of the top 10 largest lenders by volume were non-banks, such as Quicken Loans, loanDepot and PHH Mortgage, compared
with just two of the top 10 in 2011. Before the financial crisis, mortgages were the last thing a consumer would default on, Noring
says.
“That flipped in 2009, when people started defaulting on their mortgages first,” he says. “That was a tsunami for everyone in the
mortgage business, and we’re still seeing the fallout. Lenders were not prepared to deal with it and didn’t do a great job, plus new
rules were coming out that they needed to follow.”
The withdrawal of banks from the mortgage business is the result of the fundamental shift in regulations that took place in response
to the housing crisis, says Meg Burns, managing director of the Collingwood Group, an adviser for financial services companies in
Washington.
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TRENDS IN 2018
Rental affordability will improve as incomes rise and rent growth slows
Zillow’s senior economist, Dr. Skylar Olsen, expects that rising rents will stabilize throughout 2017, with overall U.S. rental
appreciation remaining flat, around 1.5 percent. Booming markets — notably West Coast metros like Seattle, Portland, the
Bay Area and San Diego, as well as Denver — will continue to see appreciation above 5 percent (and much higher in some
neighborhoods), so it could take several more years before those regions cool down. Why has appreciation slowed? The
deceleration is largely a result of more rental inventory. Additional housing units are being added, with construction of
multifamily buildings (those with five or more units) nearing pre-recession levels. Construction of single-family homes is still
low, with approximately 740,000 building permits issued in 2016 compared to pre-recession averages of 1 million or more
(soaring close to 2 million during the building frenzy of the housing bubble).
The homeownership rate will go up as millennials age
Homeownership is still at near-historic lows, falling annually since 2006. Most new household formation in recent years has
been in the form of rental households. This trend may soon change, however, as millennials age and approach major life
events, such as getting married or having children. While they’re not buying in large numbers just yet, they plan to: A Zillow
survey found that millennials, more than any other demographic, consider homeownership integral to the American Dream
and see it as a path toward greater personal freedom. Does that mean you’ll soon be struggling to fill vacant units? Not likely.
There are still plenty of young people left in the rental pool, and there are barriers to homeownership. Even if all the millennials
in the 33-year-old range — the median age for first-time buyers — decided they wanted to buy, there’s not enough inventory
to accommodate them. In addition, according to the Zillow Group Consumer Housing Trends Report, almost 70 percent of
millennials who’ve been renting for more than a year make less than $50,000 annually, putting a home purchase out of reach
for many. Thus, the shift toward homeownership will be a gradual one.
New development will prioritize smaller homes, but renters will still be pushed to the suburbs
As baby boomers downsize and seek out smaller homes in walkable neighborhoods, competition for housing in urban areas
will increase. In many areas, rents have risen fastest near the downtown core; this combination of low inventory and high
rents means more people, especially those with low incomes, need to move farther away from the city to find affordable
rentals. As a result, more people will be driving to work — a reversal of a decade-long trend — as they move outside areas
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3
EverydayCapitalLLC
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SECTION1:SynopsisofOperations
New homes will cost more as construction becomes more expensive
Construction of single-family homes is not keeping up with demand. This is due, at least in part, to labor shortages and rising
construction wages. Labor may become even scarcer as immigration policies tighten: It is estimated that 10-20 percent of the
single-family construction labor force consists of undocumented workers, and the potential loss of this workforce would drive
up wages even further. With the cost of construction and the price of land on the rise, more builders are looking to increase
profits by focusing on high-end homes — which are not affordable for many first-time buyers. Renters, like buyers, list single-
family homes as their first choice in housing (vs. multifamily units or condos), according to the Zillow Group Report. If there
aren’t enough entry-level single-family homes to purchase, they will continue to rent.
Interest rates will increase
Economists have been expecting interest rates to go up for some time now, but their predictions have been foiled by stagnant
wages (until recently) and volatility in foreign assets markets over 2016. Given falling unemployment rates and recent wage
growth, Skylar believes the time is right for the Fed to act. With a new administration in the White House supporting low
interest rates, however, the Fed may encounter renewed pressure to keep rates down.
served by public transit. Denser development of smaller homes near public transit and urban centers is a likely solution to this
problem and is expected to increase in 2017. As an interesting twist on transit, what about self-driving cars? Skylar noted that
autonomous vehicles have the potential to impact housing in a positive way: Used efficiently, they could ease congestion in
cities and reduce the need for parking lots, which in turn would free up space downtown for housing. Of course, improvements
in technology and new infrastructure will have to come first, so expect a long wait. The suburban migration is not just a
reaction to affordability, however. More millennials will choose to move to the suburbs as they age and start families in pursuit
of good schools and security. The Zillow Group Report found that after affordability, renters’ top priority when seeking a home
is neighborhood safety (a concern of 90 percent of respondents).
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Clear the Way, Inc. was founded on August, 2010 in the state of New York.
The Company is managed by seasoned business professionals with extensive business experience. The management team is
dedicated to the success of the Company and to maximizing the investment performance of the real estate asset to be acquired.
At the present time, one entity and four individuals are actively involved in the management of the Company.
Invest Alongside Sector Professionals
Clear the Way, Inc. - (the “Manager”)
THE MANAGEMENT TEAM
EverydayCapitalLLC
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SECTION1:SynopsisofOperations
Melissa Shea has been an entrepreneur, business owner, licensed realtor and investor for over 15 years. She is
the President of the LIREIA, and has created a private personal portfolio of over 400 units. Melissa is a licensed
loan officer and real estate broker in the state of NY. Melissa’s strength is in structuring deals for investors
especially when purchasing distressed assets. Melissa has been involved in over 500 real estate transactions
and has raised over $30 Million in funding for various real estate, projects. She has a large network of national
operators throughout the US to benefit our investors.
Melissa J. Shea - Chief Executive Officer
Michael Mulholland has over 25 years of experience in finance and risk management as the Director of
Treasury Operations for Credit Suisse Bank. In addition, Mike has 20 years’ experience in real estate investing.
He has participated in 25 deals renovating properties, commercial projects, apartment buildings and private
money lending. Mike is a licensed real estate agent and managing director of Diamond Shamrock Real Estate
Development Corp.
Michael Mulholland - Director of Research and Risk Management
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THE MANAGEMENT TEAM CONT.
John is a licensed contractor and has been a manager since 2006. He has been responsible for oversight of over
100 rehabs in different states. He plays a key role in inspecting and overseeing construction, renovations and
management for the properties we purchase that are distressed. He ensures that the portfolio is performing
at its optimal level while maintaining our high standard of quality housing. He also coordinates with our local
property managers and sponsors in various cities.
John M. Shea III - Director of Property Management
Benjamin Weiss has over 20 years of experience in the financial services arena before joining Everyday
Capital, LLC. Ben has worked for both US and foreign banks in the wealth management sector and has been
designated with several financial licenses through his career. He has executed transactions in the equity
options and debt markets. He maintains a vast network and strong knowledge in communications using
technology Ben will assist the fund both in raising capital and providing transparency by updating investors
on current acquisitions as well as market trends.
Benjamin Weiss - Director of Investor Relations
EverydayCapitalLLC
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SECTION1:SynopsisofOperations
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SECTION 2: Private Placement Memorandum
26
EverydayCapitalLLC
SECTION2:PrivatePlacementMemorandum
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Unit Price
Maximum
Minimum (1) $50,000
$2,500,000
$50 $950
$47,500,000
$950,000
	 Sales Price		 Est. Offering Expenses (2)	 	 Proceeds to Company
$1,000,000
$50,000,000
$1,000
$50,000,000
Class A Limited Liability Company Membership Units
August 1, 2018
Everyday Capital LLC (the “Company”), a Delaware Company, is offering a minimum of 1,000 and a maximum of 50,000 Class A
Membership Units for $1,000 per unit. The offering price per unit has been arbitrarily determined by the Company. See Risk Factors:
Offering Price.
THESE ARE SPECULATIVE SECURITIES, WHICH INVOLVE A HIGH DEGREE OF RISK. ONLY THOSE INVESTORS WHO CAN BEAR
THE LOSS OF THEIR ENTIRE INVESTMENT SHOULD INVEST IN THESE UNITS.
THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), THE SECURITIES LAWS OF THE STATE OF DELAWARE, OR UNDER THE SECURITIES LAWS OF ANY OTHER STATE OR
JURISDICTION IN RELIANCE UPON THE EXEMPTIONS FROM REGISTRATION PROVIDED BY THE ACT AND REGULATION D
RULE 506(c) PROMULGATED THEREUNDER, AND THE COMPARABLE EXEMPTIONS FROM REGISTRATION PROVIDED BY OTHER
APPLICABLE SECURITIES LAWS.
Everyday Capital LLC
28
EverydayCapitalLLC
(1)	 The Company reserves the right to waive the twenty-five (25) Unit minimum subscription for any investor. The Offering is
not underwritten. The Units are offered on a “best efforts” basis by the Company through its officers and directors. The Company
has set a minimum offering amount of 1,000 Units with minimum gross proceeds of $1,000,000 for this Offering. All proceeds
from the sale of Units up to $1,000,000 will be deposited in a segregated escrow account. Upon the sale of $1,000,000 of
Units, all proceeds will be delivered directly to the Company’s corporate account and be available for use by the Company at its
discretion. Should the Offering fail to reach the Minimum Offering amount by the end of the Offering Term, then all subscription
funds held in escrow will be immediately returned in full to subscribed investors without interest.
(2)	 Units may also be sold by FINRA member brokers or dealers who enter into a Participating Dealer Agreement with the
Company, who will receive commissions of up to 10% of the price of the Units sold. The Company reserves the right to pay
expenses related to this Offering from the proceeds of the Offering. See “PLAN OF PLACEMENT and USE OF PROCEEDS” section.
The Offering will terminate on the earliest of: (a) the date the Company, in its discretion, elects to terminate, or (b) the date
upon which all Units have been sold, or (c) June 30, 2019, or such date as may be extended from time to time by the Company,
but not later than 180 days thereafter (the “Offering Period”.)
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SECTION2:PrivatePlacementMemorandum
THIS OFFERING IS NOT UNDERWRITTEN. THE OFFERING PRICE HAS BEEN ARBITRARILY SET BY THE MANAGEMENT OF
THE COMPANY. THERE CAN BE NO ASSURANCE THAT ANY OF THE SECURITIES WILL BE SOLD.
THE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY
STATE SECURITIES AGENCY, NOR HAS ANY SUCH REGULATORY BODY REVIEWED THIS PRIVATE OFFERING MEMORANDUM
FOR ACCURACY OR COMPLETENESS. BECAUSE THESE SECURITIES HAVE NOT BEEN SO REGISTERED, THERE MAY BE
RESTRICTIONS ON THEIR TRANSFERABILITY OR RESALE BY AN INVESTOR.
EACH PROSPECTIVE INVESTOR SHOULD PROCEED ON THE ASSUMPTION THAT HE MUST BEAR THE ECONOMIC RISKS
OF THE INVESTMENT FOR AN INDEFINITE PERIOD, SINCE THE SECURITIES MAY NOT BE SOLD UNLESS, AMONG OTHER
THINGS, THEY ARE SUBSEQUENTLY REGISTERED UNDER THE APPLICABLE SECURITIES ACTS OR AN EXEMPTION FROM
SUCH REGISTRATION IS AVAILABLE.
THERE IS NO TRADING MARKET FOR THE COMPANY’S MEMBERSHIP UNITS AND THERE CAN BE NO ASSURANCE THAT ANY
MARKET WILL DEVELOP IN THE FUTURE OR THAT THE UNITS WILL BE ACCEPTED FOR INCLUSION ON NASDAQ OR ANY
OTHER TRADING EXCHANGE AT ANY TIME IN THE FUTURE.
THE COMPANY IS NOT OBLIGATED TO REGISTER FOR SALE UNDER EITHER FEDERAL OR STATE SECURITIES LAWS THE
UNITS PURCHASED PURSUANT HERETO, AND THE ISSUANCE OF THE UNITS IS BEING UNDERTAKEN PURSUANT TO RULE
506(c) OF REGULATION D UNDER THE SECURITIES ACT.
ACCORDINGLY, THE SALE, TRANSFER, OR OTHER DISPOSITION OF ANY OF THE UNITS, WHICH ARE PURCHASED PURSUANT
HERETO, MAY BE RESTRICTED BY APPLICABLE FEDERAL OR STATE SECURITIES LAWS (DEPENDING ON THE RESIDENCY
OF THE INVESTOR) AND BY THE PROVISIONS OF THE SUBSCRIPTION AGREEMENT REFERRED TO HEREIN. THE OFFERING
PRICE OF THE SECURITIES HAS BEEN ARBITRARILY ESTABLISHED BY THE COMPANY AND DOES NOT NECESSARILY BEAR
ANY SPECIFIC RELATION TO THE ASSETS, BOOK VALUE OR POTENTIAL EARNINGS OF THE COMPANY OR ANY OTHER
RECOGNIZED CRITERIA OF VALUE.
NO PERSON IS AUTHORIZED TO GIVE ANY INFORMATION OR MAKE ANY REPRESENTATION NOT CONTAINED IN THE
MEMORANDUM AND ANY INFORMATION OR REPRESENTATION NOT CONTAINED HEREIN MUST NOT BE RELIED UPON.
NOTHING IN THIS MEMORANDUM SHOULD BE CONSTRUED AS LEGAL OR TAX ADVICE.
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No person is authorized to give any information or make any representation not contained in the Memorandum and any information
or representation not contained herein must not be relied upon. Nothing in this Memorandum should be construed as legal or
tax advice.
The primary managers of the Company have provided all of the information stated herein. The Company makes no express or
implied representation or warranty as to the completeness of this information or, in the case of projections, estimates, future plans,
or forward looking assumptions or statements, as to their attainability or the accuracy and completeness of the assumptions from
which they are derived, and it is expected that each prospective investor will pursue his, her, or its own independent investigation.
It must be recognized that estimates of the Company’s performance are necessarily subject to a high degree of uncertainty and
may vary materially from actual results.
Other than the Company’s Management, no one has been authorized to give any information or to make any representation with
respect to the Company or the Units that is not contained in this Memorandum. Prospective investors should not rely on any
information not contained in this Memorandum.
This Memorandum does not constitute an offer to sell or a solicitation of an offer to buy to anyone in any jurisdiction in which
such offer or solicitation would be unlawful or is not authorized or in which the person making such offer or solicitation is not
qualified to do so. This offering is only available to suitable “accredited” investors as defined by Rule 501 of Regulation D and
all subscriptions for purchase of securities will be subject to verification by the Company of the investors status as an accredited
investor.
EverydayCapitalLLC
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SECTION2:PrivatePlacementMemorandum
This Memorandum does not constitute an offer if the prospective investor is not qualified under applicable securities laws.
This offering is made subject to withdrawal, cancellation, or modification by the Company without notice and solely at the Company’s
discretion. The Company reserves the right to reject any subscription or to allot to any prospective investor less than the number
of Shares subscribed for by such prospective investor.
This Memorandum has been prepared solely for the information of the person to whom it has been delivered by or on behalf of
the Company. Distribution of this Memorandum to any person other than the prospective investor to whom this Memorandum is
delivered by the Company and those persons retained to advise them with respect thereto is unauthorized. Any reproduction of
this Memorandum, in whole or in part, or the divulgence of any of the contents without the prior written consent of the Company is
strictly prohibited. Each prospective investor, by accepting delivery of this Memorandum, agrees to return it and all other documents
received by them to the Company if the prospective investor’s subscription is not accepted or if the Offering is terminated.
By acceptance of this Memorandum, prospective investors recognize and accept the need to conduct their own thorough investigation
and due diligence before considering a purchase of the Shares. The contents of this Memorandum should not be considered to be
investment, tax, or legal advice and each prospective investor should consult with their own counsel and advisors as to all matters
concerning an investment in this Offering.
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OFFERING SUMMARY
The following material is intended to summarize information contained elsewhere in this Private Offering Memorandum (the
“Memorandum”). This summary is qualified in its entirety by express reference to this Memorandum and the materials referred to
and contained herein.
Each prospective subscriber should carefully review the entire Memorandum and all materials referred to herein and conduct his or
her own due diligence before subscribing for Membership Units.
EverydayCapitalLLC
Everyday Capital LLC
The date of this Private Placement Memorandum is August 1, 2018.
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SECTION2:PrivatePlacementMemorandum
THE COMPANY
BENEFITS OF LLC MEMBERSHIP
The limited liability company (LLC) is a relatively new form of doing business in the United States (in 1988 all 50 states enacted LLC
laws).
The LLC is a hybrid that combines the characteristics of a corporate structure and a partnership structure. It is a separate legal
entity like a corporation but it has entitlement to be treated as a partnership for tax purposes and therefore carries with it certain
tax benefits for the investors.
The owners and investors are called members and can be virtually any entity including individuals (domestic or foreign), corporations,
other LLCs, trusts, pension plans etc. Unlike corporate stocks and shares, members purchase Membership Units. Typically, Members
who hold the majority of the voting class membership units, or the designated Manager, maintain control over management of the
LLC as specified in the LLC operating agreement.
The primary advantage of an LLC is limiting the liability of its members. Unless personally guaranteed, members are not personally
liable for the debts and obligations of the LLC. Additionally, “pass-through” or “flow-through” taxation is available, meaning that
(generally speaking) the earnings of an LLC are not subject to double taxation unlike that of a “standard” corporation. However,
they are treated like the earnings from partnerships, sole proprietorships and S corporations with an added benefit for all of its
members. There is greater flexibility in structuring the LLC than is ordinarily the case with a corporation, including the ability to
divide ownership and voting rights in unconventional ways while still enjoying the benefits of “pass-through” taxation.
Everyday Capital LLC (the “Company”), began operations on March 2, 2017 with the purpose of aggregating capital for deployment
into funding originated real estate notes as well as acquiring real estate assets. The Company’s legal structure was formed as a
limited liability company (LLC) under the laws of the State of Delaware on March 2, 2017.
Its principal offices are presently located at 745 5th Ave Suite 500, New York, NY 10151. The Company’s telephone number is 646-
396-0242. The Manager of the Company is Clear the Way, Inc. and the individual managers are Melissa J. Shea, John M. Shea III,
and Michael Mulholland.
34
THE OFFERING
FORWARD BUSINESS PLANS
The Company is offering a minimum of 1,000 and a maximum of 50,000 Class A Membership Units at a price of $1,000 per Unit.
Upon completion of the Offering between 1,000 and 50,000 Class A Membership Units will be issued.
The Class A Membership Units sold through this Offering shall participate in distributions of net cash flow from operations on
the following summarized schedule and terms and subject to the exact terms of the Operating Agreement; (i) a distribution
to the Class A Members to equal an annual five percent (5%) non-compounding cumulative Preferred Return Distribution (the
“Preferred Return”), distributed to Class A Members annually in year one and quarterly thereafter, and calculated based on the
Member’s adjusted Capital Account balance and; (ii) a distribution to the Class A Members on a pari passu basis equaling seventy
percent (70%) of any additional net cash flow from operations with the Class B Member(s) participating in thirty percent (30%) of
distributable net cash flow.
Class A Membership Units are subject to a three (3) year Lock-Up Period calculated from the date the Fund begins principal
investment operations. After the Lock-Up Period has expired, the Company intends to offer an annual redemption opportunity to
provide liquidity to investors through the re-purchase of Class A Member Units. Any redemption of Class A Units shall be at the
sole discretion of the Manager and subject to a six (6) month notice by the Class A Member of any intention to redeem Units to the
Company.
See “Exhibit B - Operating Agreement” for specific rights and terms related to these Membership Units.
Each purchaser must execute a Subscription Agreement making certain representations and warranties to the Company, including
such purchaser’s qualifications as an Accredited Investor. See “REQUIREMENTS FOR PURCHASERS” section.
Portions of the Everyday Capital LLC forward business plans, as disclosed in this Memorandum, were prepared by the Company using
assumptions, including several forward looking statements. Each prospective investor should carefully review this Memorandum
and all related exhibits before purchasing Units. Management makes no representations as to the accuracy or achievability of the
underlying assumptions and projected results contained herein.
EverydayCapitalLLC
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USE OF PROCEEDS
MINIMUM OFFERING PROCEEDS; ESCROW OF SUBSCRIPTION FUNDS
REGISTRAR
The Company will serve as its own registrar and transfer agent with respect to its Membership Units.
MEMBERSHIP UNITS
SUBSCRIPTION PERIOD
The Offering will terminate on the earliest of: (a) the date the Company, in its discretion, elects to terminate, or (b) the date upon
which all Units have been sold, or (c) June 30, 2019, or such date as may be extended from time to time by the Company, but not
later than 180 days thereafter (the “Offering Period”.)
Upon the sale of the maximum number of Units from this Offering, the number of issued Class A Membership Units of the Company
will be held as follows:
New Class A Members 		 100%
The Company has set a minimum offering proceeds figure of $1,000,000 (the “minimum offering proceeds”) for this Offering. The
Company has established a segregated Company managed account with Attorney Cassidy Romano, into which the minimum offering
proceeds will be placed. At least 1,000 Units must be sold for $1,000,000 before such proceeds will be released from the escrow
account and utilized by the Company.
Proceeds from the sale of Units will be used for acquiring real estate assets, originating real estate notes , joint ventures, building
a crowdfunding platform for Regulation A+ and operating expenses. See “USE OF PROCEEDS” section.
36
CERTAIN NOTICES
FOR RESIDENTS OF ALL STATES:
THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(“SECURITIES ACT”), OR THE SECURITIES LAWS OF CERTAIN STATES ARE BEING OFFERED AND SOLD IN RELIANCE ON
EXEMPTIONS OF SAID ACT AND SUCH LAWS. THE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING
AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY OF THIS
PRIVATE PLACEMENT MEMORANDUM. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.
THIS OFFERING IS SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR
RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT, AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT
TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY MIGHT BE REQUIRED TO
BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. AN INVESTOR MUST REPRESENT
THAT THE SECURITIES ARE BEING ACQUIRED FOR INVESTMENT PURPOSES ONLY, AND NOT WITH A VIEW TO OR PRESENT
INTENTION OF DISTRIBUTION.
THIS PRIVATE PLACEMENT MEMORANDUM DOES NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY STATE OR OTHER
JURISDICTION IN WHICH SUCH AN OFFER OR SOLICITATION IS NOT AUTHORIZED OR IN WHICH THE PERSON MAKING
SUCH OFFER OR SOLICITATION IS NOT QUALIFIED TO DO SO. IN ADDITION, THIS CONFIDENTIAL PRIVATE PLACEMENT
MEMORANDUM CONSTITUTES AN OFFER ONLY TO THE OFFEREE NAMED.
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SECTION2:PrivatePlacementMemorandum
EXCEPT AS OTHERWISE INDICATED, THIS MEMORANDUM SPEAKS AS OF THE DATE OF THE MEMORANDUM AND NEITHER
THE DELIVERY HEREOF NOR ANY SALE MADE HEREUNDER SHALL, UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION
THAT THERE HAS BEEN NO CHANGE IN THE CONDITION OF THE COMPANY SINCE THE DATE HEREOF.
NO PERSON HAS BEEN AUTHORIZED TO MAKE REPRESENTATIONS OR PROVIDE ANY INFORMATION OTHER THAN THAT
CONTAINED IN THIS PRIVATE PLACEMENT MEMORANDUM AND ACTUAL DOCUMENTS (SUMMARIZED HEREIN), WHICH ARE
FURNISHED UPON REQUEST TO AN OFFEREE, OR HIS REPRESENTATIVE MAY BE RELIED UPON IN CONNECTION WITH THIS
OFFERING. PROSPECTIVE PURCHASERS OF THE SECURITIES ARE NOT TO CONSTRUE THE CONTENTS OF THIS PRIVATE
PLACEMENT MEMORANDUM AS LEGAL OR TAX ADVICE.
EACH PROSPECTIVE PURCHASER SHOULD CONSULT HIS OWN PROFESSIONAL ADVISORS AS TO LEGAL, TAX, AND RELATED
MATTERS CONCERNING HIS INVESTMENT. THIS PRIVATE PLACEMENT MEMORANDUM HAS BEEN PREPARED FROM DATA
SUPPLIED BY SOURCES DEEMED RELIABLE AND DOES NOT KNOWINGLY OMIT ANY MATERIAL FACT OR KNOWINGLY
CONTAIN ANY UNTRUE STATEMENT OF ANY MATERIAL FACT. IT CONTAINS A SUMMARY OF THE MATERIAL PROVISIONS OF
DOCUMENTS REFERRED TO HEREIN. STATEMENTS MADE WITH RESPECT TO THE PROVISIONS OF SUCH DOCUMENTS ARE
NOT NECESSARILY COMPLETE AND REFERENCE IS MADE TO THE ACTUAL DOCUMENTS FOR COMPLETE INFORMATION AS TO
THE RIGHTS AND OBLIGATIONS THERETO.
38
DISCLOSURES
THERE IS NO TRADING MARKET FOR THE COMPANY’S SECURITIES AND THERE CAN BE NO ASSURANCE THAT ANY MARKET
WILL DEVELOP IN THE FUTURE OR THAT THE UNITS WILL BE ACCEPTED FOR INCLUSION ON NASDAQ OR ANY OTHER
TRADING EXCHANGE AT ANY TIME IN THE FUTURE. THE COMPANY IS NOT OBLIGATED TO REGISTER FOR SALE UNDER EITHER
FEDERAL OR STATE SECURITIES LAWS THE SECURITIES PURCHASED PURSUANT HERETO, AND THE ISSUANCE OF THE UNITS
IS BEING UNDERTAKEN PURSUANT TO RULE 506(c) OF REGULATION D UNDER THE SECURITIES ACT.
ACCORDINGLY, THE SALE, TRANSFER, OR OTHER DISPOSITION OF ANY OF THE UNITS, WHICH ARE PURCHASED PURSUANT
HERETO, MAY BE RESTRICTED BY APPLICABLE FEDERAL OR STATE SECURITIES LAWS (DEPENDING ON THE RESIDENCY OF
THE INVESTOR) AND BY THE PROVISIONS OF THE SUBSCRIPTION AGREEMENT REFERRED TO HEREIN.
THIS MEMORANDUM HAS BEEN PREPARED SOLELY FOR THE INFORMATION OF THE PERSON TO WHOM IT HAS BEEN DELIVERED
BY OR ON BEHALF OF THE COMPANY. DISTRIBUTION OF THIS MEMORANDUM TO ANY PERSON OTHER THAN THE PROSPECTIVE
INVESTOR TO WHOM THIS MEMORANDUM IS DELIVERED BY THE COMPANY AND THOSE PERSONS RETAINED TO ADVISE
THEM WITH RESPECT THERETO IS UNAUTHORIZED.
ANY REPRODUCTION OF THIS MEMORANDUM, IN WHOLE OR IN PART, OR THE DIVULGENCE OF ANY OF THE CONTENTS
WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMPANY IS STRICTLY PROHIBITED. EACH PROSPECTIVE INVESTOR, BY
ACCEPTING DELIVERY OF THIS MEMORANDUM, AGREES TO RETURN IT AND ALL OTHER DOCUMENTS RECEIVED BY THEM TO
THE COMPANY IF THE PROSPECTIVE INVESTOR’S SUBSCRIPTION IS NOT ACCEPTED OR IF THE OFFERING IS TERMINATED.
EverydayCapitalLLC
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NASAA LEGEND
NASAA LEGEND
IN MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS
OF THE OFFERING INCLUDING THE MERITS AND RISKS INVOLVED. THESE SECURITIES HAVE NOT BEEN RECOMMENDED BY ANY
FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE, THE FOREGOING AUTHORITIES
HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS DOCUMENT. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.
THESE SECURITIES MAY BE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED
OR RESOLD EXCEPT AS PERMITTED UNDER FEDERAL AND STATE SECURITIES LAWS. INVESTORS SHOULD BE AWARE THAT
THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.
NOTICE TO NON-UNITED STATES RESIDENTS
IT IS THE RESPONSIBILITY OF ANY ENTITIES WISHING TO PURCHASE THE UNITS TO SATISFY THEMSELVES AS TO FULL
OBSERVANCE OF THE LAWS OF ANY RELEVANT TERRITORY OUTSIDE THE UNITED STATES IN CONNECTION WITH ANY SUCH
PURCHASE, INCLUDING OBTAINING ANY REQUIRED GOVERNMENTAL OR OTHER CONSENTS OR OBSERVING ANY OTHER
APPLICABLE FORMALITIES.
BY ACCEPTANCE OF THIS MEMORANDUM, PROSPECTIVE INVESTORS RECOGNIZE AND ACCEPT THE NEED TO CONDUCT THEIR
OWN THOROUGH INVESTIGATION AND DUE DILIGENCE BEFORE CONSIDERING A PURCHASE OF THE UNITS. THE CONTENTS
OF THIS MEMORANDUM SHOULD NOT BE CONSIDERED TO BE INVESTMENT, TAX, OR LEGAL ADVICE AND EACH PROSPECTIVE
INVESTOR SHOULD CONSULT WITH THEIR OWN COUNSEL AND ADVISORS AS TO ALL MATTERS CONCERNING AN INVESTMENT
IN THIS OFFERING.
40
PATRIOT ACT RIDER
THE INVESTOR HEREBY REPRESENTS AND WARRANTS THAT THE INVESTOR IS NOT, NOR IS IT ACTING AS AN AGENT,
REPRESENTATIVE, INTERMEDIARY OR NOMINEE FOR, A PERSON IDENTIFIED ON THE LIST OF BLOCKED PERSONS MAINTAINED
BY THE OFFICE OF FOREIGN ASSETS CONTROL, U.S. DEPARTMENT OF TREASURY. IN ADDITION, THE INVESTOR HAS
COMPLIED WITH ALL APPLICABLE U.S. LAWS, REGULATIONS, DIRECTIVES, AND EXECUTIVE ORDERS RELATING TO ANTI-
MONEY LAUNDERING, INCLUDING BUT NOT LIMITED TO THE FOLLOWING LAWS:
(1) THE UNITING AND STRENGTHENING AMERICA BY PROVIDING APPROPRIATE TOOLS REQUIRED TO INTERCEPT AND
OBSTRUCT TERRORISM ACT OF 2001, PUBLIC LAW 107-56, AND (2) EXECUTIVE ORDER 13224 (BLOCKING PROPERTY
AND PROHIBITING TRANSACTIONS WITH PERSONS WHO COMMIT, THREATEN TO COMMIT, OR SUPPORT TERRORISM) OF
SEPTEMBER 11, 2001.
EACH PROSPECTIVE INVESTOR WILL BE GIVEN AN OPPORTUNITY TO ASK QUESTIONS OF, AND RECEIVE ANSWERS FROM,
MANAGEMENT OF THE COMPANY CONCERNING THE TERMS AND CONDITIONS OF THIS OFFERING AND TO OBTAIN ANY
ADDITIONAL INFORMATION, TO THE EXTENT THE COMPANY POSSESSES SUCH INFORMATION OR CAN ACQUIRE IT WITHOUT
UNREASONABLE EFFORTS OR EXPENSE, NECESSARY TO VERIFY THE ACCURACY OF THE INFORMATION CONTAINED IN THIS
MEMORANDUM.
IF YOU HAVE ANY QUESTIONS WHATSOEVER REGARDING THIS OFFERING, OR DESIRE ANY ADDITIONAL INFORMATION OR
DOCUMENTS TO VERIFY OR SUPPLEMENT THE INFORMATION CONTAINED IN THIS MEMORANDUM, PLEASE WRITE OR CALL
THE COMPANY AT THE ADDRESS AND PHONE NUMBER LISTED IN THIS PRIVATE OFFERING MEMORANDUM.
EverydayCapitalLLC
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THE MANAGEMENT OF THE COMPANY HAS PROVIDED ALL OF THE INFORMATION
STATED HEREIN.
THE COMPANY MAKES NO EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY AS
TO THE COMPLETENESS OF THIS INFORMATION OR, IN THE CASE OF PROJECTIONS,
ESTIMATES, FUTURE PLANS, OR FORWARD LOOKING ASSUMPTIONS OR STATEMENTS,
AS TO THEIR ATTAINABILITY OR THE ACCURACY AND COMPLETENESS OF THE
ASSUMPTIONS FROM WHICH THEY ARE DERIVED, AND IT IS EXPECTED THAT EACH
PROSPECTIVE INVESTOR WILL PURSUE HIS, HER, OR ITS OWN INDEPENDENT
INVESTIGATION.
IT MUST BE RECOGNIZED THAT ESTIMATES OF THE COMPANY’S PERFORMANCE
ARE NECESSARILY SUBJECT TO A HIGH DEGREE OF UNCERTAINTY AND MAY VARY
MATERIALLY FROM ACTUAL RESULTS.
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PRELIMINARY RISK
DISCLOSURE STATEMENT
YOU SHOULD CAREFULLY CONSIDER WHETHER YOUR FINANCIAL CONDITION
PERMITS YOU TO PARTICIPATE IN THIS INVESTMENT.
IN DOING SO, YOU SHOULD BE AWARE THAT AN INVESTMENT WITH OUR COMPANY
MAY BE VOLATILE AND LOSSES FROM ITS BUSINESS ACTIVITIES MAY REDUCE THE
NET ASSET VALUE OF THE COMPANY.
INVESTORS MAY LOSE ALL OR PART OF THEIR INVESTMENT. IN ADDITION,
RESTRICTIONS ON REDEMPTIONS MAY AFFECT THE COMPANY’S ABILITY TO REDEEM
YOUR UNITS.
THIS BRIEF STATEMENT CANNOT DISCLOSE ALL THE RISKS AND OTHER FACTORS
NECESSARY TO EVALUATE YOUR PARTICIPATION IN THIS COMPANY. THEREFORE,
BEFORE YOU DECIDE TO PARTICIPATE IN AN INVESTMENT IN THIS COMPANY,
YOU SHOULD CAREFULLY STUDY THIS DISCLOSURE DOCUMENT, INCLUDING A
DISCUSSION OF POTENTIAL RISKS RELATED TO THIS INVESTMENT.
44
PLAN OF OPERATIONS
OVERVIEW
Everyday Capital LLC is an intergraded real estate investment company designed to uniquely stand out from traditional real estate
investment companies. The localized expertise, diversification of real estate holdings and “hands on” experience of the Management
team enables the Company with the potential for providing more stabilized return for its investors.
Everyday Capital LLC, has existing working relationships with local and national operators who have successful track records in
both lending and real estate holdings. The Manager and individual principals of the Manager also have a working knowledge and
understanding of real estate investing gained through over 45 years’ experience with over $2 million of its own capital invested in
real estate transactions including single family houses, apartment buildings, mixed use, new construction, originating mortgages,
restructuring nonperforming real estate assets and property management in multiple States. The geographic focus for the Company is
the New York market, with an emphasis on working with operators located in Long Island, NY and other strategic markets throughout
the US.
Clear the Way, Inc ‘s past 5-year track record provides double digit returns to its investors using a successful business model of
focusing on two separate strategies. 1.) Originating commercial mortgage notes for real estate operators who purchase distressed
assets improve them through construction or management and sell for a profit, and; (b) also engage in joint venture ownership in
real estate with experienced sponsors by directly purchasing and improving and managing such properties for cash flow. This dual
strategy provides the potential for higher returns on invested capital and may also act as a hedge against inflation. The real estate
projects that are the focus of the company are designed with the intent to improve the quality the lives for tenants, operators,
homeowners, communities and especially create profits for our investors. Thus, our motive is not just to make money but to make
a lasting difference in the lives of others. Further, in an effort to improve baseline returns for investors, and to make the Manager
compensation more performance based, the Fund is managed with a nominal one percent (1%) annual fund management fee.
Managers however are entitled to any ordinary and custom fees that they are licensed to receive such as realtor fees, property
management, or loan officer compensation.
Our projects are designed with the intent to improve the quality of lives therefore we work with for profit and not for profit
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organizations. Thus, our motive is not just to make money but to make a lasting difference in the lives of others. Further, in an effort
to improve baseline returns for investors, and to make the Manager compensation more performance based, the Fund is managed
with a nominal one percent (1%) annual fund management fee. Managers however are entitled to any ordinary and custom fees that
they are licensed to receive such as realtor fees, property management, or loan officer compensation.
THE COMPANY
Everyday Capital LLC, a Delaware Limited Liability Company, was recently formed for the purpose of raising and managing capital.
The Company is Managed by Clear the Way, Inc which has been successfully operating since August of 2010 as a NY State Subchapter
S corporation.
Address:	 745 5th Ave Suite 500, New York NY 10151
Phone: 	 646-396-0242
GOALS AND OBJECTIVES
•	 Raise $50 Million in capital for acquisition of distressed real estate and lending to real estate investors lending to experienced
real estate sponsors.
•	 Begin filing for a Regulation A+ offering to allow non accredited investors to participate in larger real estate transactions.
•	 Improve the quality of single family and multifamily properties by our rehabilitation (REHAB) projects in multiple cities.
•	 Acquire a portfolio of income producing properties to hedge against inflation and provide investors with consist higher than
average returns.
•	 Provide higher than average returns to our investors while improving neighborhoods.
EXPANSION PLANS
Over the next year Everyday Capital LLC seeks to raise $50 million in capital to continue the expansion of our real estate portfolio and
lending to other local investors. By the end of 2019 the Company seeks to have funded over 150 loans and purchased a portfolio of
$15 million in a combination of residential and commercial properties to hedge against inflation which the Manager believes greatly
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OPERATIONS CONTINUED
EverydayCapitalLLC
impacts our industry. The Fund’s focus is to continue improve neighborhoods and value of the lives of our sponsors/operators. As
the Fund continues to grow we will continue to provide personalized attention to our investors by providing transparency and detailed
communications through the use of newer technology.
THE INDUSTRY
The perception for many is that this is the best time to purchase foreclosures, short sales and REO properties when in reality the
market is on a projection for overpricing of properties. Therefore, management has decided to focus on a smaller more manageable
niche of cash flow properties and passive income. In the opinion of the Manager, this best protects our investors during times of
market correction and can potentially assist the Fund in maintaining higher than average projected returns secured by tangible and
insurable assets (properties).
As traditional bank lending becomes more competitive the Fund will focus on Long Island, NY, markets in New Jersey and Connecticut
which are the niche markets for our customers and sponsors. In part, the Manager believes the Fund can accomplish this focus
through utilizing the current memberships of REIA (Real Estate Investment Associations). Currently one the managing partners is the
President of the Long Island Chapter, thus giving direct access to qualified borrowers.
STRATEGY #1
LENDING FOR REAL ESTATE SPONSORS/OPERATORS
This strategy allows the Company to lend to experienced and knowledgeable sponsors/operators for both rehab loans. The biggest
risk for investors is lack of experience. Everyday Capital LLC stands out in this market since the managing company is the owner of
the largest Real Estate Investor Association in all of New York with working relationships with chapters in New Jersey and Connecticut.
Our education programs are headed up by the LIREIA and the “MENTORING MASTERMINDS APPRENTICE PROGRAM”. These
members are educated real estate investors whose business model is to locate distressed real estate opportunities in single family
houses (1-4 units) for the purpose of renovating and reselling to a homeowner for a profit within 12 months. They are given hands
on training and experience in doing multiple exit using their own money at first. Everyday Capital, LLC is not limited to lending to only
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residential real estate opportunities.
Benefits to this program include:
•	 Higher than average returns
•	 Security of first lien positions
•	 Rehab escrow deposits
•	 Equity and appreciation through renovations
•	 Decreasing the number of abandoned houses in area thus improving neighborhoods
•	 Increase house values in the area
To prevent costly errors our program requires MENTORING MASTERMINDS APPRENTICE PROGRAM investors to attend monthly
educational meetings as well as complete educational courses through a designed program. The oversight and instruction for
MENTORING MASTERMINDS APPRENTICE PROGRAM minimizes the risk to the investors. There is a cost for this service that is paid
for by the borrower. Although there is sometimes higher risks associated with this type of investment, there is the potential to yield
a much greater return on investment (generally 10-12% APR). Currently there are over 100 Graduates of the MM Program and over
500 members (past and present) of LIREIA.
To protect the Fund’s investments, Everyday Capital LLC will have a secured first lien promissory note on all properties no more than
70% ARV (after repair value) with a management agreement on all properties for the Company to take over in the case of default. In
the rare instance that the rehab work is not completed within a specified date, a 30-day demand notice is issued to complete the work
within 15 days or they will be replaced by a representative of Everyday Capital Management, LLC that will oversee the completion of
the project including resale of the property. Construction draws are held in escrow and only released upon the appraiser’s inspection.
The Fund’s current lending guidelines are as follows (lending guidelines subject to change):
FOR REHAB LOANS
First lien position maximum loan values:
After Repair Value: 	70%
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OPERATIONS CONTINUED
EverydayCapitalLLC
Purchase Price: 	 80%
Rehab Price:		 100%
•	 Must all cash flow in the event of a default. The debt service coverage at 1.25 including taxes, insurance, 10% PM fee and 10%
vacancy and repairs
•	 Credit score minimum of 640
•	 Borrower must have profitably completed three fix and flip projects within the last 18 months
•	 If not, borrower must pay for a project overseer in order to qualify for loan.
•	 Escrow rehab money and released upon inspection by a licensed appraiser.
FOR PERFORMING PROPERTIES
•	 Fair Market Value based off licensed appraisal: 75%
•	 Must be tenanted with one year lease and 2 months canceled checks
•	 Must Debt service coverage at 1.25 including taxes, insurance, 10% PM fee and 10% vacancy and repairs
•	 Credit Score minimum of 660
•	 Must have licensed property manager
EXAMPLE FOR LENDING
Property Address: 		 221 Ryers Ave., Cheltham, PA
Borrower: 			 John Mitchner
Credit Score: 		 683	
Purchase Price:		 $87,300
Rehab Amount:		 $75,000
ARV (After Repair Value):	 $225,000
Loan to Value:		 61%
Loan Amount:		 $138,000
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SECTION2:PrivatePlacementMemorandum
Loan Terms:			 2 Points ($2,760) and 12% APR 	 (additional 1 point to broker)
Escrow Amount: 		 $68,140 Held back for Construction
Exit Strategy:			 Refinance at 12 months
ROI:				14%
STRATEGY #2
BUY-AND-HOLD REAL ESTATE PORTFOLIO
This strategy has, in the opinion of the Manager, the least amount of risk for the Company. The Manager’s goal is to identify and
purchase real estate assets that will provide positive cash flow. This strategy helps reducing crime and increasing tax revenues for the
county. Investors capture the benefits of strong cash flow and forced equity through efficient property management and renovations.
Additionally, investors benefit from the use of multiple tax savings as well as hedging their money against inflation.
This real estate portfolio acquires and renovates distressed real estate for the purpose of long term rental units, usually 3-5 years.
The portfolio is comprised of commercial and residential properties with a goal for 10% cash on cash return.
Ideal areas to invest for the portfolio are mostly in the southern and mid western states such as CT, NC, SC MS, TX, AL, FL, NV, AZ,
TN, PA, and any US territories. The price point, demands for housing and low expenses create an ideal area to invest for long term
holds. The cash flow net income of these properties is disbursed quarterly. Our buy-and- hold method allows for purchase of tax liens
and tax deeds, notes, development projects, marina acquisitions, auctions and all faucets of cash flowing real estate with a maximum
of 5-year hold. After 5 years, each property will be sold and proceeds split equally between Investors and the Manager. The Company
has the first right of refusal to refinance any property in the Company’s portfolio.
BENEFITS TO INVESTOR
•	 Strong projected cash flow
•	 Hedge against inflation
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OPERATIONS CONTINUED
EverydayCapitalLLC
•	 Tax savings (depreciation) and 1031 exchanges
•	 Projected increase of equity value through proper asset management and renovations
COMPENSATION
•	 Ordinary and custom fees such as acquisition fee, Realtor commissions and property management fees
•	 Exit strategy to sell all portfolio investments within 5 years of purchase with Everyday Capital LLC reserving the first right of
refusal to purchase any property at 10% below market values with no Realtor involved.
PROJECTED PROGRAM GOALS
•	 Cash flow of 10% return on investment per investment purchases by the Company and;
•	 For every $5,000,000 invested into the portfolio to gain an additional $1,000,000 in accretive equity during the next 5 years
MANAGEMENT AND OPERATIONS
Everyday Capital LLC prides itself with an experienced team comprised of the relationships with several successful operators in specialized
areas. We have a network of attorneys, accountants, analysts, real estate brokers/agents, mortgage consultants, bankers, credit
repair specialists, property managers and construction crews. All Managing Partners have experience in raising capital, acquisition,
renovations, property management, and the knowledge to see our projects to completion. We do all the due diligence and business
development while staying on the cutting edge of real estate trends.
As a management team they have committed to contribute $200K or more in cash or equity. Additionally, the managers can add
additional capital or properties at any time as well as take a line of credit to meet financial goals for the Company.
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MELISSA J. SHEA: CHIEF EXECUTIVE OFFICER
Melissa Shea has been an entrepreneur, business owner, licensed realtor and investor for over 15 years. She is the President of the
LIREIA and has created a private personal portfolio of over 400 units. Melissa is a licensed loan officer and real estate broker in the
state of NY. Melissa’s strength is in structuring deals for investors especially when purchasing distressed assets. Melissa has been
involved in over 500 real estate transactions and has raised over $30 Million in funding for various real estate, projects. She has a
large network of national operators throughout the US to benefit our investors.
MICHAEL MULHOLLAND: DIRECTOR OF RESEARCH AND RISK MANAGEMENT
Michael Mulholland has over 25 years of experience in finance and risk management as the Director of Treasury Operations for Credit
Suisse Bank. In addition, Mike has 20 years’ experience in real estate investing. He has participated in 25 deals renovating properties,
commercial projects, apartment buildings and private money lending. Mike is a licensed real estate agent and managing director of
Diamond Shamrock Real Estate Development Corp.
JOHN M. SHEA III: PROPERTY MANAGEMENT SUPERVISOR
John is a licensed contractor and has been a manager for the past 15 years for project managing and property inspections. He plays a
key role in inspecting and overseeing construction for distressed multifamily and single family homes which are kept in the real estate
portfolio for Everyday Capital Management LLC. John is responsible for inspecting and maintaining the assets held by the Company.
He ensures that the portfolio is performing at its optimal level while maintaining our high standard of quality housing. He works
alongside operators and property managers in each city we invest.
HOW DOES THE COMPANY OPERATE?
Management can begin operating beginning with $1,000,000 with focus on lending and purchasing single family homes. The Fund
will strive to keep a 50% - 50% ratio between lending and acquisitions, however market conditions will dictate if that ratio needs to
be adjusted to maximize the Fund’s performance and risk mitigation. The first $1,000,000 will be held in escrow upon which time
the Offering will have eclipsed the Minimum Offering Amount and the Fund will be cleared to begin investment activities. Thereafter
additional subscriptions received through the Offering will be held in the operating bank account of the Fund.
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OPERATIONS CONTINUED
EverydayCapitalLLC
HOW TO GET STARTED
If you wish to be participate in the Fund you must be an accredited investor as defined by the SEC and provide suitable verification of
accredited status. The minimum subscription amount per investor is $25,000. Investors can proceed through the investment vetting
and subscription process by using our Investor Portal website located at http://invest.lireia.com/.
It is an exciting time to take advantage of the vast real estate opportunities presented in this market. Benefit from the experience
and affiliated networks of our management team.
CONTACT US
Everyday Capital LLC
745 5th Avenue, Suite 500
New York NY 10151
646-396-0242
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EverydayCapitalLLC
Name			 Position / Class		 Current % Post Offering Max % of Class
100%0%
100%100%Class B
Member / Class A
OWNERSHIP
The following table contains certain information as of August 1, 2018 as to the number of units beneficially owned by (i) each person
known by the Company to own beneficially more than 5% of the Company’s units, (ii) each person who is a Managing Member of
the Company, (iii) all persons as a group who are Managing Members and/or Officers of the Company, and as to the percentage
of the outstanding units held by them on such dates and as adjusted to give effect to this Offering. There are no Membership Unit
option agreements in place as of the date of this Offering.
The Class B Member or principals of the Class B Member or Manager entity may directly purchase Class A Units or contribute real
property to the Fund in exchange for Class A Membership Units.
Everyday Capital
Management LLC
Investors
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SECTION2:PrivatePlacementMemorandum
LITIGATION
The Company is not presently a party to any material litigation, nor to the knowledge of Management is any litigation threatened
against the Company, which may materially affect the business of the Company or its assets.
DESCRIPTION OF UNITS
The Company is offering a minimum of 1,000 and a maximum of 50,000 Class A Membership Units at a price of $1,000 per Unit. Upon
completion of the Offering between 1,000 and 50,000 Class A Membership Units will be issued.
The Class A Membership Units sold through this Offering shall participate in distributions of net cash flow from operations on the
following summarized schedule and terms and subject to the exact terms of the Operating Agreement; (i) a distribution to the Class
A Members to equal an annual five percent (5%) non-compounding cumulative Preferred Return Distribution (the “Preferred Return”),
distributed to Class A Members annually in year one and quarterly thereafter, and calculated based on the Member’s adjusted Capital
Account balance and; (ii) a distribution to the Class A Members on a pari passu basis equaling seventy percent (70%) of any additional
net cash flow from operations with the Class B Member participating in thirty percent (30%) of distributable net cash flow.
Class A Membership Units are subject to a three (3) year Lock-Up Period calculated from the date the Fund begins principal investment
operations. After the Lock-Up Period has expired, the Company intends to offer an annual redemption opportunity to provide liquidity
to investors through the re-purchase of Class A Member Units. Any redemption of Class A Units shall be at the sole discretion of the
Manager and subject to a six (6) month notice by the Class A Member of any intention to redeem Units to the Company.
See “Exhibit B - Operating Agreement” for specific rights and terms related to these Membership Units.
Units are not redeemable until three (3) years after start of principal investment operations of the Fund occurs and Units do not
have conversion rights. In the event of the dissolution, liquidation or winding up of the Company, the assets then legally available
for distribution to the Members will be distributed ratably amongst; (a) the Class A Members until such time as their original capital
contributions plus any accrued cumulative Preferred Return has been paid and; (b) 70% of remaining net profit to the Class A
Members of the LLC in proportion to their holdings and 30% to the Class B Member. Members are only entitled to profit distributions
when and if declared by the Manager out of funds legally available therefore.
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MANAGEMENT COMPENSATION
There is no accrued compensation that is due any member of Management. Each Manager will be entitled to reimbursement of
expenses incurred while conducting Company business. Each Manager may also be a member in the Company and as such will
share in the profits of the Company when and if revenues are disbursed.
Manager and Related Principals - Compensation
(a) Certain principals of the Manager entity will participate in thirty percent (30%) of the distributable net cash flow, through the
Class B Member entity, subject to payment of the Class A Member Preferred Return and any accrued Preferred Return due Class
A Members.
(b) The Manager entity will be paid a one-percent (1%) Fund Management Fee, calculated based upon assets under Management,
payable quarterly and beginning upon the Offering eclipsing the Minimum Offering Amount.
See “Exhibit B - Operating Agreement” for specific terms.
EverydayCapitalLLC
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BOARD OF ADVISORS
The Company may establish a Board of Advisors, which would consist of highly qualified business and industry professionals.
The Board of Advisors would assist the Management team in making appropriate decisions and taking effective action; however,
the Board of Advisors would not be responsible for Management decisions and has no legal or fiduciary responsibility to the
Company. There are currently no members on the Board of Advisors.
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INVESTOR SUITABILITY STANDARDS
EverydayCapitalLLC
Prospective purchasers of the Units offered by this Memorandum should give careful consideration to certain risk factors described
under “RISK FACTORS” section and especially to the speculative nature of this investment and the limitations described under that
caption with respect to the lack of a readily available market for the Units and the resulting long term nature of any investment in
the Company. This Offering is available only to suitable Accredited Investors having adequate means to assume such risks and of
otherwise providing for their current needs and contingencies.
GENERAL
The Units will not be sold to any person unless such prospective purchaser or his or her duly authorized representative shall have
represented in writing to the Company in a Subscription Agreement that:
• The prospective purchaser has adequate means of providing for his or her current needs and personal contingencies and has no
need for liquidity in the investment of the Units;
• The prospective purchaser’s overall commitment to investments which are not readily marketable is not disproportionate to his,
her, or its net worth and the investment in the Units will not cause such overall commitment to become excessive; and
• The prospective purchaser is an “Accredited Investor” (as defined on the next page) suitable for purchase in the Units.
Each person acquiring Units will be required to represent that he, she, or it is purchasing the Units for his, her, or its own account
for investment purposes and not with a view to resale or distribution.
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ACCREDITED INVESTORS
The Company will conduct the Offering in such a manner that Units may be sold only to “Accredited Investors” as that term is de-
fined in Rule 501(a) of Regulation D promulgated under the Securities Act of 1933 (the “Securities Act”). In summary, a prospective
investor will qualify as an “Accredited Investor” if he, she, or it meets any one of the following criteria:
•	 Any natural person whose individual net worth, or joint net worth with that person’s spouse, at the time of his purchase,
exceeds $1,000,000.
Except as provided in paragraph (2) of this section, for purposes of calculating net worth under this paragraph:
(i) The person’s primary residence shall not be included as an asset;
(ii) Indebtedness that is secured by the person’s primary residence, up to the estimated fair market value of the primary residence at
the time of the sale of securities, shall not be included as a liability (except that if the amount of such indebtedness outstanding at
the time of the sale of securities exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition
of the primary residence, the amount of such excess shall be included as a liability); and (iii) Indebtedness that is secured by the
person’s primary residence in excess of the estimated fair market value of the primary residence at the time of the sale of securities
shall be included as a liability.
•	 Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income
with that person’s spouse in excess of $300,000 in each of those years and who has a reasonable expectation of reaching the same
income level in the current year;
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Any bank as defined in Section 3(a)(2) of the Act, or any savings and loan association or other institution as defined in Section
3(a)(5)(A) of the Securities Act, whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to
Section 15 of the Securities and Exchange Act of 1934 (the “Exchange Act”); any insurance company as defined in Section 2(13)
of the Exchange Act; any investment company registered under the Investment Company Act of 1940 or a business development
company as defined in Section 2(a)(48) of that Act; any Small Business Investment Company (SBIC) licensed by the U.S. Small
Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958; any plan established and main-
tained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of
its employees, if such plan has total assets in excess of $5,000,000; any employee benefit plan within the meaning of the Employee
Retirement Income Security Act of 1974, if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such
Act, which is either a bank, savings and loan association, insurance company, or registered investment advisor, or if the employee
benefit plan has total assets in excess of $5,000,000 or, if a self directed plan, with investment decisions made solely by persons
who are Accredited Investors;
•	 Any private business development company as defined in Section 202(a)(22) of the Investment Advisors Act of 1940;
•	 Any organization described in Section 501(c)(3)(d) of the Internal Revenue Code, corporation, business trust, or partnership,
not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000;
•	 Any director or executive officer, or general partner of the issuer of the securities being sold, or any director, executive officer,
or general partner of a general partner of that issuer;
•	 Any trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered,
whose purchase is directed by a sophisticated person as described in Section 501(b)(2)(ii) of Regulation D adopted under the
Act; and
•	 Any entity in which all the equity owners are Accredited Investors.
EverydayCapitalLLC
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OTHER REQUIREMENTS
No subscription for the Units will be accepted from any investor unless he is acquiring the Units for his own account (or accounts as
to which he has sole investment discretion), for investment and without any view to sale, distribution or disposition thereof.
Each prospective purchaser of Units may be required to furnish such information as the Company may require to determine whether
any person or entity purchasing Units is an Accredited Investor.
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FORWARD LOOKING INFORMATION
Some of the statements contained in this Memorandum, including information incorporated by reference, discuss future expectations,
or state other forward looking information. Those statements are subject to known and unknown risks, uncertainties and other
factors, several of which are beyond the Company’s control, which could cause the actual results to differ materially from those
contemplated by the statements.
The forward looking information is based on various factors and was derived using numerous assumptions. In light of the
risks, assumptions, and uncertainties involved, there can be no assurance that the forward looking information contained in this
Memorandum will in fact transpire or prove to be accurate.
Important factors that may cause the actual results to differ from those expressed within may include, but are not limited to:
•	 The success or failure of the Company’s efforts to successfully execute investments into originated Notes as scheduled;
•	 The Company’s ability to source, acquire, and sell any real estate units acquired or developed profitably;
•	 The Company’s ability to attract and retain quality employees;
•	 The effect of changing economic conditions including the real estate market in the area of operation for the Company;
•	 The reliance of the Company on certain key members of management
These along with other risks, which are described under “RISK FACTORS” may be described in future communications to Members.
The Company makes no representation and undertakes no obligation to update the forward looking information to reflect actual
results or changes in assumptions or other factors that could affect those statements.
EverydayCapitalLLC
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CERTAIN RISK FACTORS
Inadequacy Of Funds:
Gross offering proceeds of a minimum of $1,000,000 and a
maximum of $50,000,000 may be realized. Management believes
that such proceeds will capitalize and sustain The Company
sufficiently to allow for the implementation of the Company’s
Business Plans. If only a fraction of this Offering is sold, or
if certain assumptions contained in Management’s business
plans prove to be incorrect, the Company may have inadequate
funds to fully develop its business and may need debt financing
or other capital investment to fully implement the Company’s
business plans.
Dependence On Management:
In the early stages of development the Company’s business
will be significantly dependent on the Company’s management
team. The Company’s success will be particularly dependent
upon Melissa J. Shea, John M. Shea III, and Michael Mulholland.
The loss of any of these individuals could have a material adverse
effect on the Company. See “MANAGEMENT” section.
Risks Associated With Expansion:
The Company plans on expanding its business through the
acquisition and/or development of real estate and lending to
third parties for real estate transactions. Any expansion of
operations the Company may undertake will entail risks, such
actions may involve specific operational activities which may
negatively impact the profitability of the Company. Consequently,
the Members must assume the risk that (i) such expansion may
EverydayCapitalLLC
Everyday Capital LLC (the “Company”) commenced preliminary business development operations on March 2, 2017 and is organized
as a Limited Liability Company under the laws of the State of Delaware. Accordingly, the Company has only a limited history upon
which an evaluation of its prospects and future performance can be made. The Company’s proposed operations are subject to all
business risks associated with new enterprises. The likelihood of the Company’s success must be considered in light of the problems,
expenses, difficulties, complications, and delays frequently encountered in connection with the development of real estate, operation
in a competitive industry, and the continued development of advertising, promotions and a corresponding customer base. There is
a possibility that the Company could sustain losses in the future.
There can be no assurances that Everyday Capital LLC will operate profitably. An investment in our Units involves a number of risks.
You should carefully consider the following risks and other information in this Memorandum before purchasing our Units. Without
limiting the generality of the foregoing, Investors should consider, among other things, the following risk factors:
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SECTION2:PrivatePlacementMemorandum
ultimately involve expenditures of funds beyond the resources
available to the Company at that time, and (ii) management of
such expanded operations may divert Management’s attention
and resources away from its existing operations, all of which
factors may have a material adverse effect on the Company’s
present and prospective business activities.
General Economic Conditions:
The financial success of the Company may be sensitive to
adverse changes in general economic conditions in the United
States, such as recession, inflation, unemployment, and interest
rates. Such changing conditions could reduce demand in the
marketplace for the Company’s real estate units. Everyday
Capital LLC has no control over these changes.
Possible Fluctuations In Operating Results:
The Company’s operating results may fluctuate significantly from
period to period as a result of a variety of factors, including
purchasing patterns of customers, competitive pricing, debt
service and principal reduction payments, and general economic
conditions. Consequently, the Company’s revenues may vary by
quarter, and the Company’s operating results may experience
fluctuations.
Risks Of Borrowing:
If the Company incurs indebtedness, a portion of its cash flow
will have to be dedicated to the payment of principal and interest
on such indebtedness. Typical loan agreements also might
contain restrictive covenants which may impair the Company’s
operating flexibility. Such loan agreements would also provide
for default under certain circumstances, such as failure to meet
certain financial covenants. A default under a loan agreement
could result in the loan becoming immediately due and payable
and, if unpaid, a judgment in favor of such lender which would
be senior to the rights of owners of Membership Units of the
Company. A judgment creditor would have the right to foreclose
on any of the Company’s assets resulting in a material adverse
effect on the Company’s business, operating results or financial
condition.
Unanticipated Obstacles To Execution Of The Business
Plan:
The Company’s business plans may change. Some of the
Company’s potential business endeavors are capital intensive
and may be subject to statutory or regulatory requirements.
Management believes that the Company’s chosen activities and
strategies are achievable in light of current economic and legal
conditions with the skills, background, and knowledge of the
Company’s principals and advisors. Management reserves the
right to make significant modifications to the Company’s stated
strategies depending on future events.
Management Discretion As To Use Of Proceeds:
The net proceeds from this Offering will be used for the purposes
described under “Use of Proceeds.” The Company reserves the
right to use the funds obtained from this Offering for other similar
purposes not presently contemplated which it deems to be in
the best interests of the Company and its Members in order to
address changed circumstances or opportunities. As a result of
the foregoing, the success of the Company will be substantially
dependent upon the discretion and judgment of Management
with respect to application and allocation of the net proceeds of
this Offering. Investors for the Membership Units offered hereby
will be entrusting their funds to the Company’s Management,
66
upon whose judgment and discretion the investors must depend.
Control By Class B Member and Management:
As of June 1, 2017, the Company’s Class B Member, owned and
controlled by members of the Company’s management, Manager
owned 100% of the Company’s issued Class B Voting Units. Upon
completion of this Offering, the Company’s Class B Member will
continue to own 100% of then issued and outstanding voting
Class B Units, and will be able to continue to control the Company.
Class A Members will have limited voting rights. See “Exhibit B
- Operating Agreement” for specific rights and terms related to
control and voting rights.
Limited Transferability & Liquidity:
To satisfy the requirements of certain exemptions from
registration under the Securities Act, and to conform with
applicable state securities laws, each investor must acquire his
Units for investment purposes only and not with a view towards
distribution. Consequently, certain conditions of the Securities
Act may need to be satisfied prior to any sale, transfer, or other
disposition of the Units. Some of these conditions may include a
minimum holding period, availability of certain reports, including
financial statements from Everyday Capital LLC, limitations on
the percentage of Units sold and the manner in which they are
sold. Everyday Capital LLC can prohibit any sale, transfer or
disposition unless it receives an opinion of counsel provided at
the holder’s expense, in a form satisfactory to Everyday Capital
LLC, stating that the proposed sale, transfer or other disposition
will not result in a violation of applicable federal or state securities
laws and regulations. No public market exists for the Units and
no market is expected to develop. Consequently, owners of the
Units may have to hold their investment indefinitely and may
not be able to liquidate their investments in Everyday Capital
LLC or pledge them as collateral for a loan in the event of an
emergency.
Broker - Dealer Sales Of Units:
The Company’s Membership Units are not presently included
for trading on any exchange, and there can be no assurances
that the Company will ultimately be registered on any exchange.
No assurance can be given that the Membership Units of the
Company will ever qualify for inclusion on the NASDAQ System or
any other trading market. As a result, the Company’s Membership
Units are covered by a Securities and Exchange Commission rule
that opposes additional sales practice requirements on broker-
dealers who sell such securities to persons other than established
customers and accredited investors. For transactions covered
by the rule, the broker-dealer must make a special suitability
determination for the purchaser and receive the purchaser’s
written agreement to the transaction prior to the sale.
Consequently, the rule may affect the ability of broker-dealers to
sell the Company’s securities and may also affect the ability of
shareholders to sell their Units in the secondary market.
Long Term Nature Of Investment:
An investment in the Units may be long term and illiquid. As
discussed above, the offer and sale of the Units will not be
registered under the Securities Act or any foreign or state
securities laws by reason of exemptions from such registration
which depends in part on the investment intent of the investors.
Prospective investors will be required to represent in writing that
they are purchasing the Units for their own account for long-term
investment and not with a view towards resale or distribution.
Accordingly, purchasers of Units must be willing and able to bear
EverydayCapitalLLC
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SECTION2:PrivatePlacementMemorandum
the economic risk of their investment for an indefinite period of
time. It is likely that investors will not be able to liquidate their
investment in the event of an emergency.
No Current Market For Units:
There is no current market for the Units offered in this private
Offering and no market is expected to develop in the near future.
Offering Price:
The price of the Units offered has been arbitrarily established by
Everyday Capital LLC, considering such matters as the state of
the Company’s business development and the general condition
of the industry in which it operates. The Offering price bears
little relationship to the assets, net worth, or any other objective
criteria of value applicable to Everyday Capital LLC.
Compliance With Securities Laws:
The Units are being offered for sale in reliance upon certain
exemptions from the registration requirements of the Securities
Act, applicable Delaware Securities Laws, and other applicable
state securities laws. If the sale of Units were to fail to qualify
for these exemptions, purchasers may seek rescission of their
purchases of Units. If a number of purchasers were to obtain
rescission, Everyday Capital LLC would face significant financial
demands which could adversely affect Everyday Capital LLC as a
whole, as well as any non-rescinding purchasers.
Lack Of Firm Underwriter:
The Units are offered on a “best efforts” basis by the officers and
directors of Everyday Capital LLC without compensation and on
a “best efforts” basis through certain FINRA registered broker-
dealers which enter into Participating Broker-Dealer Agreements
with the Company. Accordingly, there is no assurance that the
Company, or any FINRA broker-dealer, will sell the maximum
Units offered or any lesser amount.
Projections: Forward Looking Information:
Management has prepared projections regarding Everyday
Capital LLC’s anticipated financial performance. The Company’s
projections are hypothetical and based upon factors influencing
thebusinessofEverydayCapitalLLC. Theprojectionsarebasedon
Management’s best estimate of the probable results of operations
of the Company, based on present circumstances, and have not
been reviewed by the Company’s independent accountants.
These projections are based on several assumptions, set forth
therein, which Management believes are reasonable. Some
assumptions upon which the projections are based, however,
invariably will not materialize due the inevitable occurrence of
unanticipated events and circumstances beyond Management’s
control. Therefore, actual results of operations will vary from the
projections, and such variances may be material. Assumptions
regarding future changes in sales and revenues are necessarily
speculative in nature.
In addition, projections do not and cannot take into account such
factors as general economic conditions, unforeseen regulatory
changes, the entry into the Company’s market of additional
competitors, the terms and conditions of future capitalization,
and other risks inherent to the Company’s business. While
Management believes that the projections accurately reflect
possible future results of Everyday Capital LLC’s operations,
those results cannot be guaranteed.
Our success will depend upon the development of
68
Delays the Manager may encounter in the selection, acquisition
and development of properties could adversely affect the
profitability of the Company. The Company may experience
delays in identifying properties that meet the Company’s ideal
purchase parameters.
Environmentally Hazardous Property:
Under various Federal, City and local environmental laws,
ordinances and regulations, a current or previous owner or
operator of real property may be liable for the cost of removal
or remediation of hazardous or toxic substances on, under or in
such property. Such laws often impose liability whether or not the
owner or operator knew of, or was responsible for, the presence
of such hazardous or toxic substances. Environmental laws also
may impose restrictions on the manner in which property may
be used or businesses may be operated, and these restrictions
may require expenditures. Environmental laws provide for
sanctions in the event of non-compliance and may be enforced
by governmental agencies or, in certain circumstances, by
private parties. In connection with the acquisition and ownership
of its properties, the Company may be potentially liable for such
costs. The cost of defending against claims of liability, complying
with environmental regulatory requirements or remediation any
contaminated property could materially adversely affect the
business, assets or results of operations of the Company.
Management’s Discretion In The Future Disposition Of
Properties:
The Company cannot predict with any certainty the various
market conditions affecting real estate investments which will
exist at any particular time in the future. Due to the uncertainty
of market conditions which may affect the future disposition
real estate, and we may be unable to consummate
acquisitions or dispositions on advantageous terms, the
developed properties may not perform as we expect, or
we may be unable to efficiently integrate our project
into our existing operations:
We intend to acquire and sell real estate assets. The acquisition
of real estate entails various risks, including the risks that our
real estate assets may not perform as we expect, that we may be
unable to quickly and efficiently integrate assets into our existing
operations and that our cost estimates for the development and/
or sale of a property may prove inaccurate.
Reliance On Management To Select and Develop
Appropriate Properties and to Source and Underwrite
Loans:
The Company’s ability to achieve its investment objectives is
dependent upon the performance of the Management team in;
(a) the quality and timeliness of the Company’s acquisition of real
estate properties and (b) the sourcing, vetting, and underwriting
of loans provided to third party real estate operators. Investors in
the Units offered will have no opportunity to evaluate the terms
of transactions or other economic or financial data concerning
the Company’s investments. Investors in the Units must rely
entirely on the management ability of and the oversight of the
Company’s principals.
Competition May Increase Costs:
The Company will experience competition from other sellers of
real estate and other real estate lenders. Competition may have
the effect of increasing acquisition costs for the Company and
deceasing the sales price or lease rates of developed assets.
Delays In Acquisition Of Properties:
EverydayCapitalLLC
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SECTION2:PrivatePlacementMemorandum
which will exist at any particular time in the future. Due to the
uncertainty of market conditions which may affect the future
disposition of the properties we acquire, we cannot assure our
Members that we will be able to sell such properties at a profit
in the future. Accordingly, the extent to which our Members will
receive cash distributions and realize potential appreciation on
our real estate investments will be dependent upon fluctuating
market conditions. Furthermore, we may be required to expend
funds to correct defects or to make improvements before a
property can be sold. We cannot assure our Members that we
will have funds available to correct such defects or to make
such improvements. In acquiring a property, we may agree to
restrictions that prohibit the sale of that property for a period
of time or impose other restrictions, such as a limitation on the
amount of debt that can be placed or repaid on that property.
These provisions would restrict our ability to sell a property.
Illiquidity of real estate investments could significantly
impede the company’s ability to respond to adverse
changes in the performance of the portfolio investments
and harm the company’s financial condition:
Since real estate investments are relatively illiquid, the Company’s
ability to promptly sell developed assets in response to changing
economic, financial and investment conditions may be limited.
In particular, these risks could arise from weakness in or even
the lack of an established market for a property, changes in
the financial condition or prospects of prospective purchasers,
changes in local, regional national or international economic
conditions, and changes in laws, regulations or fiscal policies
of jurisdictions in which the property is located. The Company
may be unable to realize its investment objectives by sale, other
disposition or refinance at attractive prices within any given period
of the Company’s properties, the Company cannot assure you
that it will be able to sell its properties at a profit in the future.
Accordingly, the timing of liquidation of the Company’s real
estate investments will be dependent upon fluctuating market
conditions.
Real estate investments are not as liquid as other types of
assets, which may reduce economic returns to investors:
Real estate investments are not as liquid as other types of
investments, and this lack of liquidity may limit our ability to
react promptly to changes in economic, financial, investment or
other conditions. In addition, significant expenditures associated
with real estate investments, such as mortgage payments,
real estate taxes and maintenance costs, are generally not
reduced when circumstances cause a reduction in income from
the investments. Thus, our ability at any time to sell assets or
contribute assets to property funds or other entities in which
we have an ownership interest may be restricted. This lack of
liquidity may limit our ability to vary our portfolio promptly in
response to changes in economic financial, investment or other
conditions and, as a result, could adversely affect our financial
condition, results of operations, and cash flows.
We may be unable to sell a property if or when we
decide to do so, including as a result of uncertain market
conditions, which could adversely affect the return on
an investment in our company:
Our ability to dispose of properties on advantageous terms
depends on factors beyond our control, including competition
from other sellers and the availability of attractive financing for
potential buyers of the properties we acquire. We cannot predict
the various market conditions affecting real estate investments
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Everyday capital llc PPM

  • 1. Everyday Capital LLC August 1, 2018 Private Placement Memorandum
  • 2.
  • 3. For the Exclusive Use of: _____________________________________ Memorandum No._____________________________ Copyright © 2018 All Rights Reserved. This Private Placement Memorandum, or parts thereof, may not be reproduced in any form without permission. This Private Placement Memorandum is provided solely for convenience and does not constitute legal or investment advice. The materials in this Private Placement Memorandum are provided for information purposes only. The information is provided by Everyday Capital LLC, and while we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, or reliability of the data contained in this Private Placement Memorandum or the suitability of the offering for an investor. Any graphics utilized in this Memorandum are for display purposes only and, unless otherwise noted, are not necessarily related to the operations of the Company. CONFIDENTIAL This Private Placement Memorandum contains confidential and proprietary information belonging exclusively to Everyday Capital LLC. Everyday Capital LLC
  • 4.
  • 5. CONTENTS SYNOPSIS OF OPERATIONS Introduction 9 Summary of the Fund 10 Why Everyday Capital? 12 U.S. Macro Forecast 15 The Market 16 Trends in 2017 18 The Management Team 20 PRIVATE PLACEMENT MEMORANDUM PPM Summary 27 Offering Summary 32 Certain Notices 36 Disclosures 38 NASAA Legend 39 Preliminary Risk Disclosure 43 Plan of Operations 44 Ownership 54 Management Compensation 56 Board of Advisors 57 Investor Suitability Standards 58 Forward Looking Information 62 Certain Risk Factors 64 Use of Proceeds 78 ERISA Considerations 81 EXHIBITS Exhibit A: Supporting Documentation and Data 84 Exhibit B: Operating Agreement 92 Exhibit C: Financials 140 Exhibit D: Subscription Agreement & Investor Suitability Questionnaire 144
  • 6.
  • 7. SECTION 1: Synopsis of Operations
  • 9. 9 SECTION1:SynopsisofOperations INTRODUCTION Everyday Capital LLC (the “Company”, the “Fund”) is a Delaware Limited Liability Company, and was recently formed for the purpose of raising and managing capital for deployment into originated real estate secured notes and real estate assets. The Company is managed by Clear the Way, Inc. (the “Manager”) which has been successfully operating since August of 2010 as a New York State corporation. Everyday Capital LLC is a real estate investment fund designed to uniquely stand out from traditional real estate investment funds. The localized expertise, diversification of real estate holdings and “hands on” experience of the Management team enables the Company with the potential for providing more stabilized return for its investors. Everyday Capital LLC, has existing working relationships with local and national operators who have successful track records in both lending and real estate holdings. The Manager and individual principals of the Manager also have a working knowledge and understanding of real estate investing gained through over 15 years experience with over $2 million of its own capital invested in real estate transactions including single family houses, apartment buildings, mixed use, new construction, originating mortgages, restructuring nonperforming real estate assets and property management in multiple States. Additionally, the Manager has a past seven-year track record using both models discussed in the Memorandum creating double digit returns for its investors. The geographic focus for the Fund is the New York market, with an emphasis on working with operators located on Long Island, NY, and other strategic markets. Everyday Capital, LLC manager has a past 5-year track record providing double digit returns to its investors using a successful business model of focusing on two separate strategies. 1.) Originating commercial mortgage notes for real estate operators who purchase distressed assets improve them through construction or management and sell for a profit, and; (b) also engage in joint venture ownership in real estate with experienced sponsors by directly purchasing and improving and managing such properties for cash flow. This dual strategy provides the potential for more immediate cash flow while may also act as a hedge against inflation. The real estate projects that are the focus of the company are designed with the intent to improve the quality the lives for tenants, operators, homeowners, communities and especially create profits for our investors. Thus, our motive is not just to make money but to make a lasting difference in the lives of others. Further, in an effort to improve baseline returns for investors, and to make the Manager compensation more performance based, the Fund is managed with a nominal one percent (1%) annual fund management fee. The Company invites potential accredited investors to carefully review the Company’s Private Placement Memorandum and encourages potential investors to ask questions of management regarding the Company’s forward operational plans and this Offering by calling 646-396-0242.
  • 10. 10 SUMMARY OF THE FUND The Company Everyday Capital LLC The Manager Clear the Way, Inc. Company Description Everyday Capital LLC (the “Company”) was formed in the state of Delaware for the purpose of originating and servicing private loans as well as acquiring and managing real estate assets. The Company will seek to a provide participating investors with a real estate focused investment opportunity that combines income, projected principal investment growth, and elements of capital preservation and securitization. EverydayCapitalLLC
  • 11. 11 SECTION1:SynopsisofOperations Terms of the Offering The Company is offering a minimum of 1,000 and a maximum of 50,000 Class A Membership Units at a price of $1,000 per Unit. Upon completion of the Offering between 1,000 and 50,000 Class A Membership Units will be issued. The Class A Membership Units sold through this Offering shall participate in distributions of net cash flow from operations on the following schedule and terms; (i) a distribution to the Class A Members to equal an annual five percent (5%) non-compounding cumulative Preferred Return Distribution (the “Preferred Return”), distributed to Class A Members annually in year one and quarterly thereafter, and calculated based on the Member’s adjusted Capital Account balance and; (ii) any remaining net cash flow shall be distributed pro-rata seventy percent (70%) to the Class A Members and thirty percent (30%) to the Class B Members. See Exhibit B - Operating Agreement. Subscription Period The Offering will terminate on the earliest of: (a) the date the Company, in its discretion, elects to terminate, or (b) the date upon which all Units have been sold, or (c) June 30, 2019, or such date as may be extended from time to time by the Company, but not later than 180 days thereafter (the “Offering Period”.)
  • 12. 12 Investing in Real Estate and Private Lending EverydayCapitalLLC What is unique about Everyday Capital LLC? • We expect to position the Fund to manage risk better than our competitors because of our intimate knowledge and experience in local markets. • We provide education to our investors and sponsors on how to maximize their savings and investment funds • We provide projected higher than average returns due to our investment diversification, proper use of leverage, and the way we structure real estate deals • We improve communities through quality housing, building development and homeownership programs • Access to affiliated accountants and financial planning professionals to assist managing your investments and maximizing tax advantages • We have a full team of Realtors, attorneys, title company and property management professionals in each geographic area in which the Fund invests capital • Management is a Licensed Real Estate Brokerage • Management is a Licensed Commercial Mortgage Broker and licensed NY loan officer • Quarterly reporting with Internet access transparency of each property • Personalized investor relations • Low management fees • Dozens of referrals and testimonials • We encourage potential investors to see our Google reviews on LIREIA WHY EVERYDAY CAPITAL?
  • 15. 15 SECTION1:SynopsisofOperations U.S. MACRO FORECAST Slightly Brighter Outlook for Growth and Labor Markets in 2018 and 2019 The U.S. economy looks slightly stronger now than it did three months ago, according to 36 forecasters surveyed by the Federal Reserve Bank of Philadelphia. The forecasters predict real GDP will grow at an annual rate of 3.0 percent this quarter and next quarter, up slightly from the estimates of three months ago. On an annual-average over annual-average basis, the forecasters predict real GDP growing 2.8 percent in 2018, 2.7 percent in 2019, 1.9 percent in 2020, and 2.0 percent in 2021. The forecasters see a marginally brighter outlook for the unemployment rate. The forecasters predict the unemployment rate will average 3.9 percent in 2018, 3.7 percent in 2019, 3.9 percent in 2020, and 4.0 percent in 2021. The projections for 2018 and 2019 are slightly below those of the last survey, indicating a better outlook for unemployment. The panelists also predict an improvement in employment for 2018 and 2019. The projections for the annual-average level of nonfarm payroll employment suggest job gains at a monthly rate of 185,900 in 2018, up from the previous estimate of 175,100, and 160,800 in 2019, up from 150,300 estimated three months ago. (These annual-average estimates are computed as the year-to-year change in the annual-average level of nonfarm payroll employment, converted to a monthly rate.) Source: Second Quarter 2018 Survey of Professional Forecasters, Federal Reserve Bank of Philadelphia Release Date: May 11, 2018
  • 16. 16 The National Rental Market EverydayCapitalLLC NATIONAL INDEX UP 0.4% MONTH-OVER-MONTH Rents are now rising in most the country’s biggest markets, though growth is still flat or down in some of the priciest areas. Following a sustained stretch of flat to declining rent growth for much of 2016, our national rent index has now increased in each of the past four months. Rents grew at a rate of 0.4% between March and April, which is the same rate of growth we saw between February and March. For comparison, rents were essentially flat at this time in each of the two prior years. Year-over-year growth at the national level currently stands at 2.7%; note that this rate has more than doubled since last December, when it came in at 1.3%. Growth is now nearly matching the 2.8% rate from this time last year, but still lags behind the 3.4% pace from April 2015. Given the flat rent growth over most of 2016 and steady construction of new units in many areas, we had expected 2017 to be a good year for renters, but our index is now showing fairly strong rent increases at the national level. This could be related to the fact that there is currently a severe lack of homes for sale, particularly in the more affordable price tiers. This shortage may be causing many potential first-time homebuyers to continue renting, leading to increased demand and rising prices in the rental market. In addition to the growth the national level, rents are increasing in most of the nations biggest markets. 91 of the nation’s 100 largest cities have experienced positive year-over-year growth, and 74 saw increases over the past month. While, growth at the national level has been picking up, it is only slightly outpacing overall inflation, which is currently estimated at 2.0%. On the other hand, some individual markets are seeing more substantial increases, with 17 of the cities mapped above logging year-over-year growth above 5%. Reno, NV leads the way for rent growth, with increases of 1.1% over the past month and 9.2% over the past year; the median 2-bedroom apartment there costs $930. Arlington TX, comes in 3rd with 7.6% year-over-year growth, while nearby Fort Worth also experienced a steep increase of 4.5%; these cities are both more affordable options outside Dallas, where rents rose 2.9% over the past year to $1,750 for a 2-bedroom. At the state level, Washington saw the fastest year-over-year growth at 5.4%, with rents in each of the state’s large cities growing at rates well above the national average (7.3% in Vancouver, 5.4% in Tacoma, 5.4% in Seattle, and 4.7% in Spokane). THE MARKET
  • 17. 17 SECTION1:SynopsisofOperations The Private Lending Market THE MORTGAGE MARKET IS NOW DOMINATED BY NON-BANK LENDERS Most borrowers, whether they are purchasing property or refinancing their home, focus on their mortgage rate and loan terms rather than the type of lender they choose. Yet the landscape of the lending market has shifted dramatically over the past few years from domination by big banks to a market where more loans are made by non-banks — financial institutions that only make loans and do not offer deposit accounts such as a savings account or checking account. “For consumers, it doesn’t really matter whether you get your loan through a bank or a non-bank, although in some ways non-banks are a little more nimble and can offer more loan products,” says Paul Noring, a managing director of the financial-risk-management practice of Navigant Consulting in Washington. “The impact is bigger on the housing market overall, because without the non-banks we would be even further behind where we should be in terms of the number of transactions.” In 2011, 50 percent of all new mortgage money was loaned by the three biggest banks in the United States: JPMorgan Chase, Bank of America and Wells Fargo. But by September 2016, the share of loans by these three big banks dropped to 21 percent. At the same time, six of the top 10 largest lenders by volume were non-banks, such as Quicken Loans, loanDepot and PHH Mortgage, compared with just two of the top 10 in 2011. Before the financial crisis, mortgages were the last thing a consumer would default on, Noring says. “That flipped in 2009, when people started defaulting on their mortgages first,” he says. “That was a tsunami for everyone in the mortgage business, and we’re still seeing the fallout. Lenders were not prepared to deal with it and didn’t do a great job, plus new rules were coming out that they needed to follow.” The withdrawal of banks from the mortgage business is the result of the fundamental shift in regulations that took place in response to the housing crisis, says Meg Burns, managing director of the Collingwood Group, an adviser for financial services companies in Washington.
  • 18. 18 TRENDS IN 2018 Rental affordability will improve as incomes rise and rent growth slows Zillow’s senior economist, Dr. Skylar Olsen, expects that rising rents will stabilize throughout 2017, with overall U.S. rental appreciation remaining flat, around 1.5 percent. Booming markets — notably West Coast metros like Seattle, Portland, the Bay Area and San Diego, as well as Denver — will continue to see appreciation above 5 percent (and much higher in some neighborhoods), so it could take several more years before those regions cool down. Why has appreciation slowed? The deceleration is largely a result of more rental inventory. Additional housing units are being added, with construction of multifamily buildings (those with five or more units) nearing pre-recession levels. Construction of single-family homes is still low, with approximately 740,000 building permits issued in 2016 compared to pre-recession averages of 1 million or more (soaring close to 2 million during the building frenzy of the housing bubble). The homeownership rate will go up as millennials age Homeownership is still at near-historic lows, falling annually since 2006. Most new household formation in recent years has been in the form of rental households. This trend may soon change, however, as millennials age and approach major life events, such as getting married or having children. While they’re not buying in large numbers just yet, they plan to: A Zillow survey found that millennials, more than any other demographic, consider homeownership integral to the American Dream and see it as a path toward greater personal freedom. Does that mean you’ll soon be struggling to fill vacant units? Not likely. There are still plenty of young people left in the rental pool, and there are barriers to homeownership. Even if all the millennials in the 33-year-old range — the median age for first-time buyers — decided they wanted to buy, there’s not enough inventory to accommodate them. In addition, according to the Zillow Group Consumer Housing Trends Report, almost 70 percent of millennials who’ve been renting for more than a year make less than $50,000 annually, putting a home purchase out of reach for many. Thus, the shift toward homeownership will be a gradual one. New development will prioritize smaller homes, but renters will still be pushed to the suburbs As baby boomers downsize and seek out smaller homes in walkable neighborhoods, competition for housing in urban areas will increase. In many areas, rents have risen fastest near the downtown core; this combination of low inventory and high rents means more people, especially those with low incomes, need to move farther away from the city to find affordable rentals. As a result, more people will be driving to work — a reversal of a decade-long trend — as they move outside areas 1 2 3 EverydayCapitalLLC
  • 19. 19 SECTION1:SynopsisofOperations New homes will cost more as construction becomes more expensive Construction of single-family homes is not keeping up with demand. This is due, at least in part, to labor shortages and rising construction wages. Labor may become even scarcer as immigration policies tighten: It is estimated that 10-20 percent of the single-family construction labor force consists of undocumented workers, and the potential loss of this workforce would drive up wages even further. With the cost of construction and the price of land on the rise, more builders are looking to increase profits by focusing on high-end homes — which are not affordable for many first-time buyers. Renters, like buyers, list single- family homes as their first choice in housing (vs. multifamily units or condos), according to the Zillow Group Report. If there aren’t enough entry-level single-family homes to purchase, they will continue to rent. Interest rates will increase Economists have been expecting interest rates to go up for some time now, but their predictions have been foiled by stagnant wages (until recently) and volatility in foreign assets markets over 2016. Given falling unemployment rates and recent wage growth, Skylar believes the time is right for the Fed to act. With a new administration in the White House supporting low interest rates, however, the Fed may encounter renewed pressure to keep rates down. served by public transit. Denser development of smaller homes near public transit and urban centers is a likely solution to this problem and is expected to increase in 2017. As an interesting twist on transit, what about self-driving cars? Skylar noted that autonomous vehicles have the potential to impact housing in a positive way: Used efficiently, they could ease congestion in cities and reduce the need for parking lots, which in turn would free up space downtown for housing. Of course, improvements in technology and new infrastructure will have to come first, so expect a long wait. The suburban migration is not just a reaction to affordability, however. More millennials will choose to move to the suburbs as they age and start families in pursuit of good schools and security. The Zillow Group Report found that after affordability, renters’ top priority when seeking a home is neighborhood safety (a concern of 90 percent of respondents). 4 5
  • 20. 20 Clear the Way, Inc. was founded on August, 2010 in the state of New York. The Company is managed by seasoned business professionals with extensive business experience. The management team is dedicated to the success of the Company and to maximizing the investment performance of the real estate asset to be acquired. At the present time, one entity and four individuals are actively involved in the management of the Company. Invest Alongside Sector Professionals Clear the Way, Inc. - (the “Manager”) THE MANAGEMENT TEAM EverydayCapitalLLC
  • 21. 21 SECTION1:SynopsisofOperations Melissa Shea has been an entrepreneur, business owner, licensed realtor and investor for over 15 years. She is the President of the LIREIA, and has created a private personal portfolio of over 400 units. Melissa is a licensed loan officer and real estate broker in the state of NY. Melissa’s strength is in structuring deals for investors especially when purchasing distressed assets. Melissa has been involved in over 500 real estate transactions and has raised over $30 Million in funding for various real estate, projects. She has a large network of national operators throughout the US to benefit our investors. Melissa J. Shea - Chief Executive Officer Michael Mulholland has over 25 years of experience in finance and risk management as the Director of Treasury Operations for Credit Suisse Bank. In addition, Mike has 20 years’ experience in real estate investing. He has participated in 25 deals renovating properties, commercial projects, apartment buildings and private money lending. Mike is a licensed real estate agent and managing director of Diamond Shamrock Real Estate Development Corp. Michael Mulholland - Director of Research and Risk Management
  • 22. 22 THE MANAGEMENT TEAM CONT. John is a licensed contractor and has been a manager since 2006. He has been responsible for oversight of over 100 rehabs in different states. He plays a key role in inspecting and overseeing construction, renovations and management for the properties we purchase that are distressed. He ensures that the portfolio is performing at its optimal level while maintaining our high standard of quality housing. He also coordinates with our local property managers and sponsors in various cities. John M. Shea III - Director of Property Management Benjamin Weiss has over 20 years of experience in the financial services arena before joining Everyday Capital, LLC. Ben has worked for both US and foreign banks in the wealth management sector and has been designated with several financial licenses through his career. He has executed transactions in the equity options and debt markets. He maintains a vast network and strong knowledge in communications using technology Ben will assist the fund both in raising capital and providing transparency by updating investors on current acquisitions as well as market trends. Benjamin Weiss - Director of Investor Relations EverydayCapitalLLC
  • 24.
  • 25. SECTION 2: Private Placement Memorandum
  • 27. SECTION2:PrivatePlacementMemorandum 27 Unit Price Maximum Minimum (1) $50,000 $2,500,000 $50 $950 $47,500,000 $950,000 Sales Price Est. Offering Expenses (2) Proceeds to Company $1,000,000 $50,000,000 $1,000 $50,000,000 Class A Limited Liability Company Membership Units August 1, 2018 Everyday Capital LLC (the “Company”), a Delaware Company, is offering a minimum of 1,000 and a maximum of 50,000 Class A Membership Units for $1,000 per unit. The offering price per unit has been arbitrarily determined by the Company. See Risk Factors: Offering Price. THESE ARE SPECULATIVE SECURITIES, WHICH INVOLVE A HIGH DEGREE OF RISK. ONLY THOSE INVESTORS WHO CAN BEAR THE LOSS OF THEIR ENTIRE INVESTMENT SHOULD INVEST IN THESE UNITS. THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), THE SECURITIES LAWS OF THE STATE OF DELAWARE, OR UNDER THE SECURITIES LAWS OF ANY OTHER STATE OR JURISDICTION IN RELIANCE UPON THE EXEMPTIONS FROM REGISTRATION PROVIDED BY THE ACT AND REGULATION D RULE 506(c) PROMULGATED THEREUNDER, AND THE COMPARABLE EXEMPTIONS FROM REGISTRATION PROVIDED BY OTHER APPLICABLE SECURITIES LAWS. Everyday Capital LLC
  • 28. 28 EverydayCapitalLLC (1) The Company reserves the right to waive the twenty-five (25) Unit minimum subscription for any investor. The Offering is not underwritten. The Units are offered on a “best efforts” basis by the Company through its officers and directors. The Company has set a minimum offering amount of 1,000 Units with minimum gross proceeds of $1,000,000 for this Offering. All proceeds from the sale of Units up to $1,000,000 will be deposited in a segregated escrow account. Upon the sale of $1,000,000 of Units, all proceeds will be delivered directly to the Company’s corporate account and be available for use by the Company at its discretion. Should the Offering fail to reach the Minimum Offering amount by the end of the Offering Term, then all subscription funds held in escrow will be immediately returned in full to subscribed investors without interest. (2) Units may also be sold by FINRA member brokers or dealers who enter into a Participating Dealer Agreement with the Company, who will receive commissions of up to 10% of the price of the Units sold. The Company reserves the right to pay expenses related to this Offering from the proceeds of the Offering. See “PLAN OF PLACEMENT and USE OF PROCEEDS” section. The Offering will terminate on the earliest of: (a) the date the Company, in its discretion, elects to terminate, or (b) the date upon which all Units have been sold, or (c) June 30, 2019, or such date as may be extended from time to time by the Company, but not later than 180 days thereafter (the “Offering Period”.)
  • 29. 29 SECTION2:PrivatePlacementMemorandum THIS OFFERING IS NOT UNDERWRITTEN. THE OFFERING PRICE HAS BEEN ARBITRARILY SET BY THE MANAGEMENT OF THE COMPANY. THERE CAN BE NO ASSURANCE THAT ANY OF THE SECURITIES WILL BE SOLD. THE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES AGENCY, NOR HAS ANY SUCH REGULATORY BODY REVIEWED THIS PRIVATE OFFERING MEMORANDUM FOR ACCURACY OR COMPLETENESS. BECAUSE THESE SECURITIES HAVE NOT BEEN SO REGISTERED, THERE MAY BE RESTRICTIONS ON THEIR TRANSFERABILITY OR RESALE BY AN INVESTOR. EACH PROSPECTIVE INVESTOR SHOULD PROCEED ON THE ASSUMPTION THAT HE MUST BEAR THE ECONOMIC RISKS OF THE INVESTMENT FOR AN INDEFINITE PERIOD, SINCE THE SECURITIES MAY NOT BE SOLD UNLESS, AMONG OTHER THINGS, THEY ARE SUBSEQUENTLY REGISTERED UNDER THE APPLICABLE SECURITIES ACTS OR AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE. THERE IS NO TRADING MARKET FOR THE COMPANY’S MEMBERSHIP UNITS AND THERE CAN BE NO ASSURANCE THAT ANY MARKET WILL DEVELOP IN THE FUTURE OR THAT THE UNITS WILL BE ACCEPTED FOR INCLUSION ON NASDAQ OR ANY OTHER TRADING EXCHANGE AT ANY TIME IN THE FUTURE. THE COMPANY IS NOT OBLIGATED TO REGISTER FOR SALE UNDER EITHER FEDERAL OR STATE SECURITIES LAWS THE UNITS PURCHASED PURSUANT HERETO, AND THE ISSUANCE OF THE UNITS IS BEING UNDERTAKEN PURSUANT TO RULE 506(c) OF REGULATION D UNDER THE SECURITIES ACT. ACCORDINGLY, THE SALE, TRANSFER, OR OTHER DISPOSITION OF ANY OF THE UNITS, WHICH ARE PURCHASED PURSUANT HERETO, MAY BE RESTRICTED BY APPLICABLE FEDERAL OR STATE SECURITIES LAWS (DEPENDING ON THE RESIDENCY OF THE INVESTOR) AND BY THE PROVISIONS OF THE SUBSCRIPTION AGREEMENT REFERRED TO HEREIN. THE OFFERING PRICE OF THE SECURITIES HAS BEEN ARBITRARILY ESTABLISHED BY THE COMPANY AND DOES NOT NECESSARILY BEAR ANY SPECIFIC RELATION TO THE ASSETS, BOOK VALUE OR POTENTIAL EARNINGS OF THE COMPANY OR ANY OTHER RECOGNIZED CRITERIA OF VALUE. NO PERSON IS AUTHORIZED TO GIVE ANY INFORMATION OR MAKE ANY REPRESENTATION NOT CONTAINED IN THE MEMORANDUM AND ANY INFORMATION OR REPRESENTATION NOT CONTAINED HEREIN MUST NOT BE RELIED UPON. NOTHING IN THIS MEMORANDUM SHOULD BE CONSTRUED AS LEGAL OR TAX ADVICE.
  • 30. 30 No person is authorized to give any information or make any representation not contained in the Memorandum and any information or representation not contained herein must not be relied upon. Nothing in this Memorandum should be construed as legal or tax advice. The primary managers of the Company have provided all of the information stated herein. The Company makes no express or implied representation or warranty as to the completeness of this information or, in the case of projections, estimates, future plans, or forward looking assumptions or statements, as to their attainability or the accuracy and completeness of the assumptions from which they are derived, and it is expected that each prospective investor will pursue his, her, or its own independent investigation. It must be recognized that estimates of the Company’s performance are necessarily subject to a high degree of uncertainty and may vary materially from actual results. Other than the Company’s Management, no one has been authorized to give any information or to make any representation with respect to the Company or the Units that is not contained in this Memorandum. Prospective investors should not rely on any information not contained in this Memorandum. This Memorandum does not constitute an offer to sell or a solicitation of an offer to buy to anyone in any jurisdiction in which such offer or solicitation would be unlawful or is not authorized or in which the person making such offer or solicitation is not qualified to do so. This offering is only available to suitable “accredited” investors as defined by Rule 501 of Regulation D and all subscriptions for purchase of securities will be subject to verification by the Company of the investors status as an accredited investor. EverydayCapitalLLC
  • 31. 31 SECTION2:PrivatePlacementMemorandum This Memorandum does not constitute an offer if the prospective investor is not qualified under applicable securities laws. This offering is made subject to withdrawal, cancellation, or modification by the Company without notice and solely at the Company’s discretion. The Company reserves the right to reject any subscription or to allot to any prospective investor less than the number of Shares subscribed for by such prospective investor. This Memorandum has been prepared solely for the information of the person to whom it has been delivered by or on behalf of the Company. Distribution of this Memorandum to any person other than the prospective investor to whom this Memorandum is delivered by the Company and those persons retained to advise them with respect thereto is unauthorized. Any reproduction of this Memorandum, in whole or in part, or the divulgence of any of the contents without the prior written consent of the Company is strictly prohibited. Each prospective investor, by accepting delivery of this Memorandum, agrees to return it and all other documents received by them to the Company if the prospective investor’s subscription is not accepted or if the Offering is terminated. By acceptance of this Memorandum, prospective investors recognize and accept the need to conduct their own thorough investigation and due diligence before considering a purchase of the Shares. The contents of this Memorandum should not be considered to be investment, tax, or legal advice and each prospective investor should consult with their own counsel and advisors as to all matters concerning an investment in this Offering.
  • 32. 32 OFFERING SUMMARY The following material is intended to summarize information contained elsewhere in this Private Offering Memorandum (the “Memorandum”). This summary is qualified in its entirety by express reference to this Memorandum and the materials referred to and contained herein. Each prospective subscriber should carefully review the entire Memorandum and all materials referred to herein and conduct his or her own due diligence before subscribing for Membership Units. EverydayCapitalLLC Everyday Capital LLC The date of this Private Placement Memorandum is August 1, 2018.
  • 33. 33 SECTION2:PrivatePlacementMemorandum THE COMPANY BENEFITS OF LLC MEMBERSHIP The limited liability company (LLC) is a relatively new form of doing business in the United States (in 1988 all 50 states enacted LLC laws). The LLC is a hybrid that combines the characteristics of a corporate structure and a partnership structure. It is a separate legal entity like a corporation but it has entitlement to be treated as a partnership for tax purposes and therefore carries with it certain tax benefits for the investors. The owners and investors are called members and can be virtually any entity including individuals (domestic or foreign), corporations, other LLCs, trusts, pension plans etc. Unlike corporate stocks and shares, members purchase Membership Units. Typically, Members who hold the majority of the voting class membership units, or the designated Manager, maintain control over management of the LLC as specified in the LLC operating agreement. The primary advantage of an LLC is limiting the liability of its members. Unless personally guaranteed, members are not personally liable for the debts and obligations of the LLC. Additionally, “pass-through” or “flow-through” taxation is available, meaning that (generally speaking) the earnings of an LLC are not subject to double taxation unlike that of a “standard” corporation. However, they are treated like the earnings from partnerships, sole proprietorships and S corporations with an added benefit for all of its members. There is greater flexibility in structuring the LLC than is ordinarily the case with a corporation, including the ability to divide ownership and voting rights in unconventional ways while still enjoying the benefits of “pass-through” taxation. Everyday Capital LLC (the “Company”), began operations on March 2, 2017 with the purpose of aggregating capital for deployment into funding originated real estate notes as well as acquiring real estate assets. The Company’s legal structure was formed as a limited liability company (LLC) under the laws of the State of Delaware on March 2, 2017. Its principal offices are presently located at 745 5th Ave Suite 500, New York, NY 10151. The Company’s telephone number is 646- 396-0242. The Manager of the Company is Clear the Way, Inc. and the individual managers are Melissa J. Shea, John M. Shea III, and Michael Mulholland.
  • 34. 34 THE OFFERING FORWARD BUSINESS PLANS The Company is offering a minimum of 1,000 and a maximum of 50,000 Class A Membership Units at a price of $1,000 per Unit. Upon completion of the Offering between 1,000 and 50,000 Class A Membership Units will be issued. The Class A Membership Units sold through this Offering shall participate in distributions of net cash flow from operations on the following summarized schedule and terms and subject to the exact terms of the Operating Agreement; (i) a distribution to the Class A Members to equal an annual five percent (5%) non-compounding cumulative Preferred Return Distribution (the “Preferred Return”), distributed to Class A Members annually in year one and quarterly thereafter, and calculated based on the Member’s adjusted Capital Account balance and; (ii) a distribution to the Class A Members on a pari passu basis equaling seventy percent (70%) of any additional net cash flow from operations with the Class B Member(s) participating in thirty percent (30%) of distributable net cash flow. Class A Membership Units are subject to a three (3) year Lock-Up Period calculated from the date the Fund begins principal investment operations. After the Lock-Up Period has expired, the Company intends to offer an annual redemption opportunity to provide liquidity to investors through the re-purchase of Class A Member Units. Any redemption of Class A Units shall be at the sole discretion of the Manager and subject to a six (6) month notice by the Class A Member of any intention to redeem Units to the Company. See “Exhibit B - Operating Agreement” for specific rights and terms related to these Membership Units. Each purchaser must execute a Subscription Agreement making certain representations and warranties to the Company, including such purchaser’s qualifications as an Accredited Investor. See “REQUIREMENTS FOR PURCHASERS” section. Portions of the Everyday Capital LLC forward business plans, as disclosed in this Memorandum, were prepared by the Company using assumptions, including several forward looking statements. Each prospective investor should carefully review this Memorandum and all related exhibits before purchasing Units. Management makes no representations as to the accuracy or achievability of the underlying assumptions and projected results contained herein. EverydayCapitalLLC
  • 35. 35 SECTION2:PrivatePlacementMemorandum USE OF PROCEEDS MINIMUM OFFERING PROCEEDS; ESCROW OF SUBSCRIPTION FUNDS REGISTRAR The Company will serve as its own registrar and transfer agent with respect to its Membership Units. MEMBERSHIP UNITS SUBSCRIPTION PERIOD The Offering will terminate on the earliest of: (a) the date the Company, in its discretion, elects to terminate, or (b) the date upon which all Units have been sold, or (c) June 30, 2019, or such date as may be extended from time to time by the Company, but not later than 180 days thereafter (the “Offering Period”.) Upon the sale of the maximum number of Units from this Offering, the number of issued Class A Membership Units of the Company will be held as follows: New Class A Members 100% The Company has set a minimum offering proceeds figure of $1,000,000 (the “minimum offering proceeds”) for this Offering. The Company has established a segregated Company managed account with Attorney Cassidy Romano, into which the minimum offering proceeds will be placed. At least 1,000 Units must be sold for $1,000,000 before such proceeds will be released from the escrow account and utilized by the Company. Proceeds from the sale of Units will be used for acquiring real estate assets, originating real estate notes , joint ventures, building a crowdfunding platform for Regulation A+ and operating expenses. See “USE OF PROCEEDS” section.
  • 36. 36 CERTAIN NOTICES FOR RESIDENTS OF ALL STATES: THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“SECURITIES ACT”), OR THE SECURITIES LAWS OF CERTAIN STATES ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS OF SAID ACT AND SUCH LAWS. THE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY OF THIS PRIVATE PLACEMENT MEMORANDUM. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL. THIS OFFERING IS SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT, AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY MIGHT BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. AN INVESTOR MUST REPRESENT THAT THE SECURITIES ARE BEING ACQUIRED FOR INVESTMENT PURPOSES ONLY, AND NOT WITH A VIEW TO OR PRESENT INTENTION OF DISTRIBUTION. THIS PRIVATE PLACEMENT MEMORANDUM DOES NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY STATE OR OTHER JURISDICTION IN WHICH SUCH AN OFFER OR SOLICITATION IS NOT AUTHORIZED OR IN WHICH THE PERSON MAKING SUCH OFFER OR SOLICITATION IS NOT QUALIFIED TO DO SO. IN ADDITION, THIS CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM CONSTITUTES AN OFFER ONLY TO THE OFFEREE NAMED. EverydayCapitalLLC
  • 37. 37 SECTION2:PrivatePlacementMemorandum EXCEPT AS OTHERWISE INDICATED, THIS MEMORANDUM SPEAKS AS OF THE DATE OF THE MEMORANDUM AND NEITHER THE DELIVERY HEREOF NOR ANY SALE MADE HEREUNDER SHALL, UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE CONDITION OF THE COMPANY SINCE THE DATE HEREOF. NO PERSON HAS BEEN AUTHORIZED TO MAKE REPRESENTATIONS OR PROVIDE ANY INFORMATION OTHER THAN THAT CONTAINED IN THIS PRIVATE PLACEMENT MEMORANDUM AND ACTUAL DOCUMENTS (SUMMARIZED HEREIN), WHICH ARE FURNISHED UPON REQUEST TO AN OFFEREE, OR HIS REPRESENTATIVE MAY BE RELIED UPON IN CONNECTION WITH THIS OFFERING. PROSPECTIVE PURCHASERS OF THE SECURITIES ARE NOT TO CONSTRUE THE CONTENTS OF THIS PRIVATE PLACEMENT MEMORANDUM AS LEGAL OR TAX ADVICE. EACH PROSPECTIVE PURCHASER SHOULD CONSULT HIS OWN PROFESSIONAL ADVISORS AS TO LEGAL, TAX, AND RELATED MATTERS CONCERNING HIS INVESTMENT. THIS PRIVATE PLACEMENT MEMORANDUM HAS BEEN PREPARED FROM DATA SUPPLIED BY SOURCES DEEMED RELIABLE AND DOES NOT KNOWINGLY OMIT ANY MATERIAL FACT OR KNOWINGLY CONTAIN ANY UNTRUE STATEMENT OF ANY MATERIAL FACT. IT CONTAINS A SUMMARY OF THE MATERIAL PROVISIONS OF DOCUMENTS REFERRED TO HEREIN. STATEMENTS MADE WITH RESPECT TO THE PROVISIONS OF SUCH DOCUMENTS ARE NOT NECESSARILY COMPLETE AND REFERENCE IS MADE TO THE ACTUAL DOCUMENTS FOR COMPLETE INFORMATION AS TO THE RIGHTS AND OBLIGATIONS THERETO.
  • 38. 38 DISCLOSURES THERE IS NO TRADING MARKET FOR THE COMPANY’S SECURITIES AND THERE CAN BE NO ASSURANCE THAT ANY MARKET WILL DEVELOP IN THE FUTURE OR THAT THE UNITS WILL BE ACCEPTED FOR INCLUSION ON NASDAQ OR ANY OTHER TRADING EXCHANGE AT ANY TIME IN THE FUTURE. THE COMPANY IS NOT OBLIGATED TO REGISTER FOR SALE UNDER EITHER FEDERAL OR STATE SECURITIES LAWS THE SECURITIES PURCHASED PURSUANT HERETO, AND THE ISSUANCE OF THE UNITS IS BEING UNDERTAKEN PURSUANT TO RULE 506(c) OF REGULATION D UNDER THE SECURITIES ACT. ACCORDINGLY, THE SALE, TRANSFER, OR OTHER DISPOSITION OF ANY OF THE UNITS, WHICH ARE PURCHASED PURSUANT HERETO, MAY BE RESTRICTED BY APPLICABLE FEDERAL OR STATE SECURITIES LAWS (DEPENDING ON THE RESIDENCY OF THE INVESTOR) AND BY THE PROVISIONS OF THE SUBSCRIPTION AGREEMENT REFERRED TO HEREIN. THIS MEMORANDUM HAS BEEN PREPARED SOLELY FOR THE INFORMATION OF THE PERSON TO WHOM IT HAS BEEN DELIVERED BY OR ON BEHALF OF THE COMPANY. DISTRIBUTION OF THIS MEMORANDUM TO ANY PERSON OTHER THAN THE PROSPECTIVE INVESTOR TO WHOM THIS MEMORANDUM IS DELIVERED BY THE COMPANY AND THOSE PERSONS RETAINED TO ADVISE THEM WITH RESPECT THERETO IS UNAUTHORIZED. ANY REPRODUCTION OF THIS MEMORANDUM, IN WHOLE OR IN PART, OR THE DIVULGENCE OF ANY OF THE CONTENTS WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMPANY IS STRICTLY PROHIBITED. EACH PROSPECTIVE INVESTOR, BY ACCEPTING DELIVERY OF THIS MEMORANDUM, AGREES TO RETURN IT AND ALL OTHER DOCUMENTS RECEIVED BY THEM TO THE COMPANY IF THE PROSPECTIVE INVESTOR’S SUBSCRIPTION IS NOT ACCEPTED OR IF THE OFFERING IS TERMINATED. EverydayCapitalLLC
  • 39. 39 SECTION2:PrivatePlacementMemorandum NASAA LEGEND NASAA LEGEND IN MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS OF THE OFFERING INCLUDING THE MERITS AND RISKS INVOLVED. THESE SECURITIES HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS DOCUMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THESE SECURITIES MAY BE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER FEDERAL AND STATE SECURITIES LAWS. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. NOTICE TO NON-UNITED STATES RESIDENTS IT IS THE RESPONSIBILITY OF ANY ENTITIES WISHING TO PURCHASE THE UNITS TO SATISFY THEMSELVES AS TO FULL OBSERVANCE OF THE LAWS OF ANY RELEVANT TERRITORY OUTSIDE THE UNITED STATES IN CONNECTION WITH ANY SUCH PURCHASE, INCLUDING OBTAINING ANY REQUIRED GOVERNMENTAL OR OTHER CONSENTS OR OBSERVING ANY OTHER APPLICABLE FORMALITIES. BY ACCEPTANCE OF THIS MEMORANDUM, PROSPECTIVE INVESTORS RECOGNIZE AND ACCEPT THE NEED TO CONDUCT THEIR OWN THOROUGH INVESTIGATION AND DUE DILIGENCE BEFORE CONSIDERING A PURCHASE OF THE UNITS. THE CONTENTS OF THIS MEMORANDUM SHOULD NOT BE CONSIDERED TO BE INVESTMENT, TAX, OR LEGAL ADVICE AND EACH PROSPECTIVE INVESTOR SHOULD CONSULT WITH THEIR OWN COUNSEL AND ADVISORS AS TO ALL MATTERS CONCERNING AN INVESTMENT IN THIS OFFERING.
  • 40. 40 PATRIOT ACT RIDER THE INVESTOR HEREBY REPRESENTS AND WARRANTS THAT THE INVESTOR IS NOT, NOR IS IT ACTING AS AN AGENT, REPRESENTATIVE, INTERMEDIARY OR NOMINEE FOR, A PERSON IDENTIFIED ON THE LIST OF BLOCKED PERSONS MAINTAINED BY THE OFFICE OF FOREIGN ASSETS CONTROL, U.S. DEPARTMENT OF TREASURY. IN ADDITION, THE INVESTOR HAS COMPLIED WITH ALL APPLICABLE U.S. LAWS, REGULATIONS, DIRECTIVES, AND EXECUTIVE ORDERS RELATING TO ANTI- MONEY LAUNDERING, INCLUDING BUT NOT LIMITED TO THE FOLLOWING LAWS: (1) THE UNITING AND STRENGTHENING AMERICA BY PROVIDING APPROPRIATE TOOLS REQUIRED TO INTERCEPT AND OBSTRUCT TERRORISM ACT OF 2001, PUBLIC LAW 107-56, AND (2) EXECUTIVE ORDER 13224 (BLOCKING PROPERTY AND PROHIBITING TRANSACTIONS WITH PERSONS WHO COMMIT, THREATEN TO COMMIT, OR SUPPORT TERRORISM) OF SEPTEMBER 11, 2001. EACH PROSPECTIVE INVESTOR WILL BE GIVEN AN OPPORTUNITY TO ASK QUESTIONS OF, AND RECEIVE ANSWERS FROM, MANAGEMENT OF THE COMPANY CONCERNING THE TERMS AND CONDITIONS OF THIS OFFERING AND TO OBTAIN ANY ADDITIONAL INFORMATION, TO THE EXTENT THE COMPANY POSSESSES SUCH INFORMATION OR CAN ACQUIRE IT WITHOUT UNREASONABLE EFFORTS OR EXPENSE, NECESSARY TO VERIFY THE ACCURACY OF THE INFORMATION CONTAINED IN THIS MEMORANDUM. IF YOU HAVE ANY QUESTIONS WHATSOEVER REGARDING THIS OFFERING, OR DESIRE ANY ADDITIONAL INFORMATION OR DOCUMENTS TO VERIFY OR SUPPLEMENT THE INFORMATION CONTAINED IN THIS MEMORANDUM, PLEASE WRITE OR CALL THE COMPANY AT THE ADDRESS AND PHONE NUMBER LISTED IN THIS PRIVATE OFFERING MEMORANDUM. EverydayCapitalLLC
  • 41. 41 SECTION2:PrivatePlacementMemorandum THE MANAGEMENT OF THE COMPANY HAS PROVIDED ALL OF THE INFORMATION STATED HEREIN. THE COMPANY MAKES NO EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY AS TO THE COMPLETENESS OF THIS INFORMATION OR, IN THE CASE OF PROJECTIONS, ESTIMATES, FUTURE PLANS, OR FORWARD LOOKING ASSUMPTIONS OR STATEMENTS, AS TO THEIR ATTAINABILITY OR THE ACCURACY AND COMPLETENESS OF THE ASSUMPTIONS FROM WHICH THEY ARE DERIVED, AND IT IS EXPECTED THAT EACH PROSPECTIVE INVESTOR WILL PURSUE HIS, HER, OR ITS OWN INDEPENDENT INVESTIGATION. IT MUST BE RECOGNIZED THAT ESTIMATES OF THE COMPANY’S PERFORMANCE ARE NECESSARILY SUBJECT TO A HIGH DEGREE OF UNCERTAINTY AND MAY VARY MATERIALLY FROM ACTUAL RESULTS.
  • 43. 43 SECTION2:PrivatePlacementMemorandum PRELIMINARY RISK DISCLOSURE STATEMENT YOU SHOULD CAREFULLY CONSIDER WHETHER YOUR FINANCIAL CONDITION PERMITS YOU TO PARTICIPATE IN THIS INVESTMENT. IN DOING SO, YOU SHOULD BE AWARE THAT AN INVESTMENT WITH OUR COMPANY MAY BE VOLATILE AND LOSSES FROM ITS BUSINESS ACTIVITIES MAY REDUCE THE NET ASSET VALUE OF THE COMPANY. INVESTORS MAY LOSE ALL OR PART OF THEIR INVESTMENT. IN ADDITION, RESTRICTIONS ON REDEMPTIONS MAY AFFECT THE COMPANY’S ABILITY TO REDEEM YOUR UNITS. THIS BRIEF STATEMENT CANNOT DISCLOSE ALL THE RISKS AND OTHER FACTORS NECESSARY TO EVALUATE YOUR PARTICIPATION IN THIS COMPANY. THEREFORE, BEFORE YOU DECIDE TO PARTICIPATE IN AN INVESTMENT IN THIS COMPANY, YOU SHOULD CAREFULLY STUDY THIS DISCLOSURE DOCUMENT, INCLUDING A DISCUSSION OF POTENTIAL RISKS RELATED TO THIS INVESTMENT.
  • 44. 44 PLAN OF OPERATIONS OVERVIEW Everyday Capital LLC is an intergraded real estate investment company designed to uniquely stand out from traditional real estate investment companies. The localized expertise, diversification of real estate holdings and “hands on” experience of the Management team enables the Company with the potential for providing more stabilized return for its investors. Everyday Capital LLC, has existing working relationships with local and national operators who have successful track records in both lending and real estate holdings. The Manager and individual principals of the Manager also have a working knowledge and understanding of real estate investing gained through over 45 years’ experience with over $2 million of its own capital invested in real estate transactions including single family houses, apartment buildings, mixed use, new construction, originating mortgages, restructuring nonperforming real estate assets and property management in multiple States. The geographic focus for the Company is the New York market, with an emphasis on working with operators located in Long Island, NY and other strategic markets throughout the US. Clear the Way, Inc ‘s past 5-year track record provides double digit returns to its investors using a successful business model of focusing on two separate strategies. 1.) Originating commercial mortgage notes for real estate operators who purchase distressed assets improve them through construction or management and sell for a profit, and; (b) also engage in joint venture ownership in real estate with experienced sponsors by directly purchasing and improving and managing such properties for cash flow. This dual strategy provides the potential for higher returns on invested capital and may also act as a hedge against inflation. The real estate projects that are the focus of the company are designed with the intent to improve the quality the lives for tenants, operators, homeowners, communities and especially create profits for our investors. Thus, our motive is not just to make money but to make a lasting difference in the lives of others. Further, in an effort to improve baseline returns for investors, and to make the Manager compensation more performance based, the Fund is managed with a nominal one percent (1%) annual fund management fee. Managers however are entitled to any ordinary and custom fees that they are licensed to receive such as realtor fees, property management, or loan officer compensation. Our projects are designed with the intent to improve the quality of lives therefore we work with for profit and not for profit EverydayCapitalLLC
  • 45. 45 SECTION2:PrivatePlacementMemorandum organizations. Thus, our motive is not just to make money but to make a lasting difference in the lives of others. Further, in an effort to improve baseline returns for investors, and to make the Manager compensation more performance based, the Fund is managed with a nominal one percent (1%) annual fund management fee. Managers however are entitled to any ordinary and custom fees that they are licensed to receive such as realtor fees, property management, or loan officer compensation. THE COMPANY Everyday Capital LLC, a Delaware Limited Liability Company, was recently formed for the purpose of raising and managing capital. The Company is Managed by Clear the Way, Inc which has been successfully operating since August of 2010 as a NY State Subchapter S corporation. Address: 745 5th Ave Suite 500, New York NY 10151 Phone: 646-396-0242 GOALS AND OBJECTIVES • Raise $50 Million in capital for acquisition of distressed real estate and lending to real estate investors lending to experienced real estate sponsors. • Begin filing for a Regulation A+ offering to allow non accredited investors to participate in larger real estate transactions. • Improve the quality of single family and multifamily properties by our rehabilitation (REHAB) projects in multiple cities. • Acquire a portfolio of income producing properties to hedge against inflation and provide investors with consist higher than average returns. • Provide higher than average returns to our investors while improving neighborhoods. EXPANSION PLANS Over the next year Everyday Capital LLC seeks to raise $50 million in capital to continue the expansion of our real estate portfolio and lending to other local investors. By the end of 2019 the Company seeks to have funded over 150 loans and purchased a portfolio of $15 million in a combination of residential and commercial properties to hedge against inflation which the Manager believes greatly
  • 46. 46 OPERATIONS CONTINUED EverydayCapitalLLC impacts our industry. The Fund’s focus is to continue improve neighborhoods and value of the lives of our sponsors/operators. As the Fund continues to grow we will continue to provide personalized attention to our investors by providing transparency and detailed communications through the use of newer technology. THE INDUSTRY The perception for many is that this is the best time to purchase foreclosures, short sales and REO properties when in reality the market is on a projection for overpricing of properties. Therefore, management has decided to focus on a smaller more manageable niche of cash flow properties and passive income. In the opinion of the Manager, this best protects our investors during times of market correction and can potentially assist the Fund in maintaining higher than average projected returns secured by tangible and insurable assets (properties). As traditional bank lending becomes more competitive the Fund will focus on Long Island, NY, markets in New Jersey and Connecticut which are the niche markets for our customers and sponsors. In part, the Manager believes the Fund can accomplish this focus through utilizing the current memberships of REIA (Real Estate Investment Associations). Currently one the managing partners is the President of the Long Island Chapter, thus giving direct access to qualified borrowers. STRATEGY #1 LENDING FOR REAL ESTATE SPONSORS/OPERATORS This strategy allows the Company to lend to experienced and knowledgeable sponsors/operators for both rehab loans. The biggest risk for investors is lack of experience. Everyday Capital LLC stands out in this market since the managing company is the owner of the largest Real Estate Investor Association in all of New York with working relationships with chapters in New Jersey and Connecticut. Our education programs are headed up by the LIREIA and the “MENTORING MASTERMINDS APPRENTICE PROGRAM”. These members are educated real estate investors whose business model is to locate distressed real estate opportunities in single family houses (1-4 units) for the purpose of renovating and reselling to a homeowner for a profit within 12 months. They are given hands on training and experience in doing multiple exit using their own money at first. Everyday Capital, LLC is not limited to lending to only
  • 47. 47 SECTION2:PrivatePlacementMemorandum residential real estate opportunities. Benefits to this program include: • Higher than average returns • Security of first lien positions • Rehab escrow deposits • Equity and appreciation through renovations • Decreasing the number of abandoned houses in area thus improving neighborhoods • Increase house values in the area To prevent costly errors our program requires MENTORING MASTERMINDS APPRENTICE PROGRAM investors to attend monthly educational meetings as well as complete educational courses through a designed program. The oversight and instruction for MENTORING MASTERMINDS APPRENTICE PROGRAM minimizes the risk to the investors. There is a cost for this service that is paid for by the borrower. Although there is sometimes higher risks associated with this type of investment, there is the potential to yield a much greater return on investment (generally 10-12% APR). Currently there are over 100 Graduates of the MM Program and over 500 members (past and present) of LIREIA. To protect the Fund’s investments, Everyday Capital LLC will have a secured first lien promissory note on all properties no more than 70% ARV (after repair value) with a management agreement on all properties for the Company to take over in the case of default. In the rare instance that the rehab work is not completed within a specified date, a 30-day demand notice is issued to complete the work within 15 days or they will be replaced by a representative of Everyday Capital Management, LLC that will oversee the completion of the project including resale of the property. Construction draws are held in escrow and only released upon the appraiser’s inspection. The Fund’s current lending guidelines are as follows (lending guidelines subject to change): FOR REHAB LOANS First lien position maximum loan values: After Repair Value: 70%
  • 48. 48 OPERATIONS CONTINUED EverydayCapitalLLC Purchase Price: 80% Rehab Price: 100% • Must all cash flow in the event of a default. The debt service coverage at 1.25 including taxes, insurance, 10% PM fee and 10% vacancy and repairs • Credit score minimum of 640 • Borrower must have profitably completed three fix and flip projects within the last 18 months • If not, borrower must pay for a project overseer in order to qualify for loan. • Escrow rehab money and released upon inspection by a licensed appraiser. FOR PERFORMING PROPERTIES • Fair Market Value based off licensed appraisal: 75% • Must be tenanted with one year lease and 2 months canceled checks • Must Debt service coverage at 1.25 including taxes, insurance, 10% PM fee and 10% vacancy and repairs • Credit Score minimum of 660 • Must have licensed property manager EXAMPLE FOR LENDING Property Address: 221 Ryers Ave., Cheltham, PA Borrower: John Mitchner Credit Score: 683 Purchase Price: $87,300 Rehab Amount: $75,000 ARV (After Repair Value): $225,000 Loan to Value: 61% Loan Amount: $138,000
  • 49. 49 SECTION2:PrivatePlacementMemorandum Loan Terms: 2 Points ($2,760) and 12% APR (additional 1 point to broker) Escrow Amount: $68,140 Held back for Construction Exit Strategy: Refinance at 12 months ROI: 14% STRATEGY #2 BUY-AND-HOLD REAL ESTATE PORTFOLIO This strategy has, in the opinion of the Manager, the least amount of risk for the Company. The Manager’s goal is to identify and purchase real estate assets that will provide positive cash flow. This strategy helps reducing crime and increasing tax revenues for the county. Investors capture the benefits of strong cash flow and forced equity through efficient property management and renovations. Additionally, investors benefit from the use of multiple tax savings as well as hedging their money against inflation. This real estate portfolio acquires and renovates distressed real estate for the purpose of long term rental units, usually 3-5 years. The portfolio is comprised of commercial and residential properties with a goal for 10% cash on cash return. Ideal areas to invest for the portfolio are mostly in the southern and mid western states such as CT, NC, SC MS, TX, AL, FL, NV, AZ, TN, PA, and any US territories. The price point, demands for housing and low expenses create an ideal area to invest for long term holds. The cash flow net income of these properties is disbursed quarterly. Our buy-and- hold method allows for purchase of tax liens and tax deeds, notes, development projects, marina acquisitions, auctions and all faucets of cash flowing real estate with a maximum of 5-year hold. After 5 years, each property will be sold and proceeds split equally between Investors and the Manager. The Company has the first right of refusal to refinance any property in the Company’s portfolio. BENEFITS TO INVESTOR • Strong projected cash flow • Hedge against inflation
  • 50. 50 OPERATIONS CONTINUED EverydayCapitalLLC • Tax savings (depreciation) and 1031 exchanges • Projected increase of equity value through proper asset management and renovations COMPENSATION • Ordinary and custom fees such as acquisition fee, Realtor commissions and property management fees • Exit strategy to sell all portfolio investments within 5 years of purchase with Everyday Capital LLC reserving the first right of refusal to purchase any property at 10% below market values with no Realtor involved. PROJECTED PROGRAM GOALS • Cash flow of 10% return on investment per investment purchases by the Company and; • For every $5,000,000 invested into the portfolio to gain an additional $1,000,000 in accretive equity during the next 5 years MANAGEMENT AND OPERATIONS Everyday Capital LLC prides itself with an experienced team comprised of the relationships with several successful operators in specialized areas. We have a network of attorneys, accountants, analysts, real estate brokers/agents, mortgage consultants, bankers, credit repair specialists, property managers and construction crews. All Managing Partners have experience in raising capital, acquisition, renovations, property management, and the knowledge to see our projects to completion. We do all the due diligence and business development while staying on the cutting edge of real estate trends. As a management team they have committed to contribute $200K or more in cash or equity. Additionally, the managers can add additional capital or properties at any time as well as take a line of credit to meet financial goals for the Company.
  • 51. 51 SECTION2:PrivatePlacementMemorandum MELISSA J. SHEA: CHIEF EXECUTIVE OFFICER Melissa Shea has been an entrepreneur, business owner, licensed realtor and investor for over 15 years. She is the President of the LIREIA and has created a private personal portfolio of over 400 units. Melissa is a licensed loan officer and real estate broker in the state of NY. Melissa’s strength is in structuring deals for investors especially when purchasing distressed assets. Melissa has been involved in over 500 real estate transactions and has raised over $30 Million in funding for various real estate, projects. She has a large network of national operators throughout the US to benefit our investors. MICHAEL MULHOLLAND: DIRECTOR OF RESEARCH AND RISK MANAGEMENT Michael Mulholland has over 25 years of experience in finance and risk management as the Director of Treasury Operations for Credit Suisse Bank. In addition, Mike has 20 years’ experience in real estate investing. He has participated in 25 deals renovating properties, commercial projects, apartment buildings and private money lending. Mike is a licensed real estate agent and managing director of Diamond Shamrock Real Estate Development Corp. JOHN M. SHEA III: PROPERTY MANAGEMENT SUPERVISOR John is a licensed contractor and has been a manager for the past 15 years for project managing and property inspections. He plays a key role in inspecting and overseeing construction for distressed multifamily and single family homes which are kept in the real estate portfolio for Everyday Capital Management LLC. John is responsible for inspecting and maintaining the assets held by the Company. He ensures that the portfolio is performing at its optimal level while maintaining our high standard of quality housing. He works alongside operators and property managers in each city we invest. HOW DOES THE COMPANY OPERATE? Management can begin operating beginning with $1,000,000 with focus on lending and purchasing single family homes. The Fund will strive to keep a 50% - 50% ratio between lending and acquisitions, however market conditions will dictate if that ratio needs to be adjusted to maximize the Fund’s performance and risk mitigation. The first $1,000,000 will be held in escrow upon which time the Offering will have eclipsed the Minimum Offering Amount and the Fund will be cleared to begin investment activities. Thereafter additional subscriptions received through the Offering will be held in the operating bank account of the Fund.
  • 52. 52 OPERATIONS CONTINUED EverydayCapitalLLC HOW TO GET STARTED If you wish to be participate in the Fund you must be an accredited investor as defined by the SEC and provide suitable verification of accredited status. The minimum subscription amount per investor is $25,000. Investors can proceed through the investment vetting and subscription process by using our Investor Portal website located at http://invest.lireia.com/. It is an exciting time to take advantage of the vast real estate opportunities presented in this market. Benefit from the experience and affiliated networks of our management team. CONTACT US Everyday Capital LLC 745 5th Avenue, Suite 500 New York NY 10151 646-396-0242
  • 54. 54 EverydayCapitalLLC Name Position / Class Current % Post Offering Max % of Class 100%0% 100%100%Class B Member / Class A OWNERSHIP The following table contains certain information as of August 1, 2018 as to the number of units beneficially owned by (i) each person known by the Company to own beneficially more than 5% of the Company’s units, (ii) each person who is a Managing Member of the Company, (iii) all persons as a group who are Managing Members and/or Officers of the Company, and as to the percentage of the outstanding units held by them on such dates and as adjusted to give effect to this Offering. There are no Membership Unit option agreements in place as of the date of this Offering. The Class B Member or principals of the Class B Member or Manager entity may directly purchase Class A Units or contribute real property to the Fund in exchange for Class A Membership Units. Everyday Capital Management LLC Investors
  • 55. 55 SECTION2:PrivatePlacementMemorandum LITIGATION The Company is not presently a party to any material litigation, nor to the knowledge of Management is any litigation threatened against the Company, which may materially affect the business of the Company or its assets. DESCRIPTION OF UNITS The Company is offering a minimum of 1,000 and a maximum of 50,000 Class A Membership Units at a price of $1,000 per Unit. Upon completion of the Offering between 1,000 and 50,000 Class A Membership Units will be issued. The Class A Membership Units sold through this Offering shall participate in distributions of net cash flow from operations on the following summarized schedule and terms and subject to the exact terms of the Operating Agreement; (i) a distribution to the Class A Members to equal an annual five percent (5%) non-compounding cumulative Preferred Return Distribution (the “Preferred Return”), distributed to Class A Members annually in year one and quarterly thereafter, and calculated based on the Member’s adjusted Capital Account balance and; (ii) a distribution to the Class A Members on a pari passu basis equaling seventy percent (70%) of any additional net cash flow from operations with the Class B Member participating in thirty percent (30%) of distributable net cash flow. Class A Membership Units are subject to a three (3) year Lock-Up Period calculated from the date the Fund begins principal investment operations. After the Lock-Up Period has expired, the Company intends to offer an annual redemption opportunity to provide liquidity to investors through the re-purchase of Class A Member Units. Any redemption of Class A Units shall be at the sole discretion of the Manager and subject to a six (6) month notice by the Class A Member of any intention to redeem Units to the Company. See “Exhibit B - Operating Agreement” for specific rights and terms related to these Membership Units. Units are not redeemable until three (3) years after start of principal investment operations of the Fund occurs and Units do not have conversion rights. In the event of the dissolution, liquidation or winding up of the Company, the assets then legally available for distribution to the Members will be distributed ratably amongst; (a) the Class A Members until such time as their original capital contributions plus any accrued cumulative Preferred Return has been paid and; (b) 70% of remaining net profit to the Class A Members of the LLC in proportion to their holdings and 30% to the Class B Member. Members are only entitled to profit distributions when and if declared by the Manager out of funds legally available therefore.
  • 56. 56 MANAGEMENT COMPENSATION There is no accrued compensation that is due any member of Management. Each Manager will be entitled to reimbursement of expenses incurred while conducting Company business. Each Manager may also be a member in the Company and as such will share in the profits of the Company when and if revenues are disbursed. Manager and Related Principals - Compensation (a) Certain principals of the Manager entity will participate in thirty percent (30%) of the distributable net cash flow, through the Class B Member entity, subject to payment of the Class A Member Preferred Return and any accrued Preferred Return due Class A Members. (b) The Manager entity will be paid a one-percent (1%) Fund Management Fee, calculated based upon assets under Management, payable quarterly and beginning upon the Offering eclipsing the Minimum Offering Amount. See “Exhibit B - Operating Agreement” for specific terms. EverydayCapitalLLC
  • 57. 57 SECTION2:PrivatePlacementMemorandum BOARD OF ADVISORS The Company may establish a Board of Advisors, which would consist of highly qualified business and industry professionals. The Board of Advisors would assist the Management team in making appropriate decisions and taking effective action; however, the Board of Advisors would not be responsible for Management decisions and has no legal or fiduciary responsibility to the Company. There are currently no members on the Board of Advisors.
  • 58. 58 INVESTOR SUITABILITY STANDARDS EverydayCapitalLLC Prospective purchasers of the Units offered by this Memorandum should give careful consideration to certain risk factors described under “RISK FACTORS” section and especially to the speculative nature of this investment and the limitations described under that caption with respect to the lack of a readily available market for the Units and the resulting long term nature of any investment in the Company. This Offering is available only to suitable Accredited Investors having adequate means to assume such risks and of otherwise providing for their current needs and contingencies. GENERAL The Units will not be sold to any person unless such prospective purchaser or his or her duly authorized representative shall have represented in writing to the Company in a Subscription Agreement that: • The prospective purchaser has adequate means of providing for his or her current needs and personal contingencies and has no need for liquidity in the investment of the Units; • The prospective purchaser’s overall commitment to investments which are not readily marketable is not disproportionate to his, her, or its net worth and the investment in the Units will not cause such overall commitment to become excessive; and • The prospective purchaser is an “Accredited Investor” (as defined on the next page) suitable for purchase in the Units. Each person acquiring Units will be required to represent that he, she, or it is purchasing the Units for his, her, or its own account for investment purposes and not with a view to resale or distribution.
  • 59. 59 SECTION2:PrivatePlacementMemorandum ACCREDITED INVESTORS The Company will conduct the Offering in such a manner that Units may be sold only to “Accredited Investors” as that term is de- fined in Rule 501(a) of Regulation D promulgated under the Securities Act of 1933 (the “Securities Act”). In summary, a prospective investor will qualify as an “Accredited Investor” if he, she, or it meets any one of the following criteria: • Any natural person whose individual net worth, or joint net worth with that person’s spouse, at the time of his purchase, exceeds $1,000,000. Except as provided in paragraph (2) of this section, for purposes of calculating net worth under this paragraph: (i) The person’s primary residence shall not be included as an asset; (ii) Indebtedness that is secured by the person’s primary residence, up to the estimated fair market value of the primary residence at the time of the sale of securities, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of the sale of securities exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability); and (iii) Indebtedness that is secured by the person’s primary residence in excess of the estimated fair market value of the primary residence at the time of the sale of securities shall be included as a liability. • Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and who has a reasonable expectation of reaching the same income level in the current year;
  • 60. 60 Any bank as defined in Section 3(a)(2) of the Act, or any savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act, whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to Section 15 of the Securities and Exchange Act of 1934 (the “Exchange Act”); any insurance company as defined in Section 2(13) of the Exchange Act; any investment company registered under the Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of that Act; any Small Business Investment Company (SBIC) licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958; any plan established and main- tained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000; any employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan association, insurance company, or registered investment advisor, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self directed plan, with investment decisions made solely by persons who are Accredited Investors; • Any private business development company as defined in Section 202(a)(22) of the Investment Advisors Act of 1940; • Any organization described in Section 501(c)(3)(d) of the Internal Revenue Code, corporation, business trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000; • Any director or executive officer, or general partner of the issuer of the securities being sold, or any director, executive officer, or general partner of a general partner of that issuer; • Any trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in Section 501(b)(2)(ii) of Regulation D adopted under the Act; and • Any entity in which all the equity owners are Accredited Investors. EverydayCapitalLLC
  • 61. 61 SECTION2:PrivatePlacementMemorandum OTHER REQUIREMENTS No subscription for the Units will be accepted from any investor unless he is acquiring the Units for his own account (or accounts as to which he has sole investment discretion), for investment and without any view to sale, distribution or disposition thereof. Each prospective purchaser of Units may be required to furnish such information as the Company may require to determine whether any person or entity purchasing Units is an Accredited Investor.
  • 62. 62 FORWARD LOOKING INFORMATION Some of the statements contained in this Memorandum, including information incorporated by reference, discuss future expectations, or state other forward looking information. Those statements are subject to known and unknown risks, uncertainties and other factors, several of which are beyond the Company’s control, which could cause the actual results to differ materially from those contemplated by the statements. The forward looking information is based on various factors and was derived using numerous assumptions. In light of the risks, assumptions, and uncertainties involved, there can be no assurance that the forward looking information contained in this Memorandum will in fact transpire or prove to be accurate. Important factors that may cause the actual results to differ from those expressed within may include, but are not limited to: • The success or failure of the Company’s efforts to successfully execute investments into originated Notes as scheduled; • The Company’s ability to source, acquire, and sell any real estate units acquired or developed profitably; • The Company’s ability to attract and retain quality employees; • The effect of changing economic conditions including the real estate market in the area of operation for the Company; • The reliance of the Company on certain key members of management These along with other risks, which are described under “RISK FACTORS” may be described in future communications to Members. The Company makes no representation and undertakes no obligation to update the forward looking information to reflect actual results or changes in assumptions or other factors that could affect those statements. EverydayCapitalLLC
  • 64. 64 CERTAIN RISK FACTORS Inadequacy Of Funds: Gross offering proceeds of a minimum of $1,000,000 and a maximum of $50,000,000 may be realized. Management believes that such proceeds will capitalize and sustain The Company sufficiently to allow for the implementation of the Company’s Business Plans. If only a fraction of this Offering is sold, or if certain assumptions contained in Management’s business plans prove to be incorrect, the Company may have inadequate funds to fully develop its business and may need debt financing or other capital investment to fully implement the Company’s business plans. Dependence On Management: In the early stages of development the Company’s business will be significantly dependent on the Company’s management team. The Company’s success will be particularly dependent upon Melissa J. Shea, John M. Shea III, and Michael Mulholland. The loss of any of these individuals could have a material adverse effect on the Company. See “MANAGEMENT” section. Risks Associated With Expansion: The Company plans on expanding its business through the acquisition and/or development of real estate and lending to third parties for real estate transactions. Any expansion of operations the Company may undertake will entail risks, such actions may involve specific operational activities which may negatively impact the profitability of the Company. Consequently, the Members must assume the risk that (i) such expansion may EverydayCapitalLLC Everyday Capital LLC (the “Company”) commenced preliminary business development operations on March 2, 2017 and is organized as a Limited Liability Company under the laws of the State of Delaware. Accordingly, the Company has only a limited history upon which an evaluation of its prospects and future performance can be made. The Company’s proposed operations are subject to all business risks associated with new enterprises. The likelihood of the Company’s success must be considered in light of the problems, expenses, difficulties, complications, and delays frequently encountered in connection with the development of real estate, operation in a competitive industry, and the continued development of advertising, promotions and a corresponding customer base. There is a possibility that the Company could sustain losses in the future. There can be no assurances that Everyday Capital LLC will operate profitably. An investment in our Units involves a number of risks. You should carefully consider the following risks and other information in this Memorandum before purchasing our Units. Without limiting the generality of the foregoing, Investors should consider, among other things, the following risk factors:
  • 65. 65 SECTION2:PrivatePlacementMemorandum ultimately involve expenditures of funds beyond the resources available to the Company at that time, and (ii) management of such expanded operations may divert Management’s attention and resources away from its existing operations, all of which factors may have a material adverse effect on the Company’s present and prospective business activities. General Economic Conditions: The financial success of the Company may be sensitive to adverse changes in general economic conditions in the United States, such as recession, inflation, unemployment, and interest rates. Such changing conditions could reduce demand in the marketplace for the Company’s real estate units. Everyday Capital LLC has no control over these changes. Possible Fluctuations In Operating Results: The Company’s operating results may fluctuate significantly from period to period as a result of a variety of factors, including purchasing patterns of customers, competitive pricing, debt service and principal reduction payments, and general economic conditions. Consequently, the Company’s revenues may vary by quarter, and the Company’s operating results may experience fluctuations. Risks Of Borrowing: If the Company incurs indebtedness, a portion of its cash flow will have to be dedicated to the payment of principal and interest on such indebtedness. Typical loan agreements also might contain restrictive covenants which may impair the Company’s operating flexibility. Such loan agreements would also provide for default under certain circumstances, such as failure to meet certain financial covenants. A default under a loan agreement could result in the loan becoming immediately due and payable and, if unpaid, a judgment in favor of such lender which would be senior to the rights of owners of Membership Units of the Company. A judgment creditor would have the right to foreclose on any of the Company’s assets resulting in a material adverse effect on the Company’s business, operating results or financial condition. Unanticipated Obstacles To Execution Of The Business Plan: The Company’s business plans may change. Some of the Company’s potential business endeavors are capital intensive and may be subject to statutory or regulatory requirements. Management believes that the Company’s chosen activities and strategies are achievable in light of current economic and legal conditions with the skills, background, and knowledge of the Company’s principals and advisors. Management reserves the right to make significant modifications to the Company’s stated strategies depending on future events. Management Discretion As To Use Of Proceeds: The net proceeds from this Offering will be used for the purposes described under “Use of Proceeds.” The Company reserves the right to use the funds obtained from this Offering for other similar purposes not presently contemplated which it deems to be in the best interests of the Company and its Members in order to address changed circumstances or opportunities. As a result of the foregoing, the success of the Company will be substantially dependent upon the discretion and judgment of Management with respect to application and allocation of the net proceeds of this Offering. Investors for the Membership Units offered hereby will be entrusting their funds to the Company’s Management,
  • 66. 66 upon whose judgment and discretion the investors must depend. Control By Class B Member and Management: As of June 1, 2017, the Company’s Class B Member, owned and controlled by members of the Company’s management, Manager owned 100% of the Company’s issued Class B Voting Units. Upon completion of this Offering, the Company’s Class B Member will continue to own 100% of then issued and outstanding voting Class B Units, and will be able to continue to control the Company. Class A Members will have limited voting rights. See “Exhibit B - Operating Agreement” for specific rights and terms related to control and voting rights. Limited Transferability & Liquidity: To satisfy the requirements of certain exemptions from registration under the Securities Act, and to conform with applicable state securities laws, each investor must acquire his Units for investment purposes only and not with a view towards distribution. Consequently, certain conditions of the Securities Act may need to be satisfied prior to any sale, transfer, or other disposition of the Units. Some of these conditions may include a minimum holding period, availability of certain reports, including financial statements from Everyday Capital LLC, limitations on the percentage of Units sold and the manner in which they are sold. Everyday Capital LLC can prohibit any sale, transfer or disposition unless it receives an opinion of counsel provided at the holder’s expense, in a form satisfactory to Everyday Capital LLC, stating that the proposed sale, transfer or other disposition will not result in a violation of applicable federal or state securities laws and regulations. No public market exists for the Units and no market is expected to develop. Consequently, owners of the Units may have to hold their investment indefinitely and may not be able to liquidate their investments in Everyday Capital LLC or pledge them as collateral for a loan in the event of an emergency. Broker - Dealer Sales Of Units: The Company’s Membership Units are not presently included for trading on any exchange, and there can be no assurances that the Company will ultimately be registered on any exchange. No assurance can be given that the Membership Units of the Company will ever qualify for inclusion on the NASDAQ System or any other trading market. As a result, the Company’s Membership Units are covered by a Securities and Exchange Commission rule that opposes additional sales practice requirements on broker- dealers who sell such securities to persons other than established customers and accredited investors. For transactions covered by the rule, the broker-dealer must make a special suitability determination for the purchaser and receive the purchaser’s written agreement to the transaction prior to the sale. Consequently, the rule may affect the ability of broker-dealers to sell the Company’s securities and may also affect the ability of shareholders to sell their Units in the secondary market. Long Term Nature Of Investment: An investment in the Units may be long term and illiquid. As discussed above, the offer and sale of the Units will not be registered under the Securities Act or any foreign or state securities laws by reason of exemptions from such registration which depends in part on the investment intent of the investors. Prospective investors will be required to represent in writing that they are purchasing the Units for their own account for long-term investment and not with a view towards resale or distribution. Accordingly, purchasers of Units must be willing and able to bear EverydayCapitalLLC
  • 67. 67 SECTION2:PrivatePlacementMemorandum the economic risk of their investment for an indefinite period of time. It is likely that investors will not be able to liquidate their investment in the event of an emergency. No Current Market For Units: There is no current market for the Units offered in this private Offering and no market is expected to develop in the near future. Offering Price: The price of the Units offered has been arbitrarily established by Everyday Capital LLC, considering such matters as the state of the Company’s business development and the general condition of the industry in which it operates. The Offering price bears little relationship to the assets, net worth, or any other objective criteria of value applicable to Everyday Capital LLC. Compliance With Securities Laws: The Units are being offered for sale in reliance upon certain exemptions from the registration requirements of the Securities Act, applicable Delaware Securities Laws, and other applicable state securities laws. If the sale of Units were to fail to qualify for these exemptions, purchasers may seek rescission of their purchases of Units. If a number of purchasers were to obtain rescission, Everyday Capital LLC would face significant financial demands which could adversely affect Everyday Capital LLC as a whole, as well as any non-rescinding purchasers. Lack Of Firm Underwriter: The Units are offered on a “best efforts” basis by the officers and directors of Everyday Capital LLC without compensation and on a “best efforts” basis through certain FINRA registered broker- dealers which enter into Participating Broker-Dealer Agreements with the Company. Accordingly, there is no assurance that the Company, or any FINRA broker-dealer, will sell the maximum Units offered or any lesser amount. Projections: Forward Looking Information: Management has prepared projections regarding Everyday Capital LLC’s anticipated financial performance. The Company’s projections are hypothetical and based upon factors influencing thebusinessofEverydayCapitalLLC. Theprojectionsarebasedon Management’s best estimate of the probable results of operations of the Company, based on present circumstances, and have not been reviewed by the Company’s independent accountants. These projections are based on several assumptions, set forth therein, which Management believes are reasonable. Some assumptions upon which the projections are based, however, invariably will not materialize due the inevitable occurrence of unanticipated events and circumstances beyond Management’s control. Therefore, actual results of operations will vary from the projections, and such variances may be material. Assumptions regarding future changes in sales and revenues are necessarily speculative in nature. In addition, projections do not and cannot take into account such factors as general economic conditions, unforeseen regulatory changes, the entry into the Company’s market of additional competitors, the terms and conditions of future capitalization, and other risks inherent to the Company’s business. While Management believes that the projections accurately reflect possible future results of Everyday Capital LLC’s operations, those results cannot be guaranteed. Our success will depend upon the development of
  • 68. 68 Delays the Manager may encounter in the selection, acquisition and development of properties could adversely affect the profitability of the Company. The Company may experience delays in identifying properties that meet the Company’s ideal purchase parameters. Environmentally Hazardous Property: Under various Federal, City and local environmental laws, ordinances and regulations, a current or previous owner or operator of real property may be liable for the cost of removal or remediation of hazardous or toxic substances on, under or in such property. Such laws often impose liability whether or not the owner or operator knew of, or was responsible for, the presence of such hazardous or toxic substances. Environmental laws also may impose restrictions on the manner in which property may be used or businesses may be operated, and these restrictions may require expenditures. Environmental laws provide for sanctions in the event of non-compliance and may be enforced by governmental agencies or, in certain circumstances, by private parties. In connection with the acquisition and ownership of its properties, the Company may be potentially liable for such costs. The cost of defending against claims of liability, complying with environmental regulatory requirements or remediation any contaminated property could materially adversely affect the business, assets or results of operations of the Company. Management’s Discretion In The Future Disposition Of Properties: The Company cannot predict with any certainty the various market conditions affecting real estate investments which will exist at any particular time in the future. Due to the uncertainty of market conditions which may affect the future disposition real estate, and we may be unable to consummate acquisitions or dispositions on advantageous terms, the developed properties may not perform as we expect, or we may be unable to efficiently integrate our project into our existing operations: We intend to acquire and sell real estate assets. The acquisition of real estate entails various risks, including the risks that our real estate assets may not perform as we expect, that we may be unable to quickly and efficiently integrate assets into our existing operations and that our cost estimates for the development and/ or sale of a property may prove inaccurate. Reliance On Management To Select and Develop Appropriate Properties and to Source and Underwrite Loans: The Company’s ability to achieve its investment objectives is dependent upon the performance of the Management team in; (a) the quality and timeliness of the Company’s acquisition of real estate properties and (b) the sourcing, vetting, and underwriting of loans provided to third party real estate operators. Investors in the Units offered will have no opportunity to evaluate the terms of transactions or other economic or financial data concerning the Company’s investments. Investors in the Units must rely entirely on the management ability of and the oversight of the Company’s principals. Competition May Increase Costs: The Company will experience competition from other sellers of real estate and other real estate lenders. Competition may have the effect of increasing acquisition costs for the Company and deceasing the sales price or lease rates of developed assets. Delays In Acquisition Of Properties: EverydayCapitalLLC
  • 69. 69 SECTION2:PrivatePlacementMemorandum which will exist at any particular time in the future. Due to the uncertainty of market conditions which may affect the future disposition of the properties we acquire, we cannot assure our Members that we will be able to sell such properties at a profit in the future. Accordingly, the extent to which our Members will receive cash distributions and realize potential appreciation on our real estate investments will be dependent upon fluctuating market conditions. Furthermore, we may be required to expend funds to correct defects or to make improvements before a property can be sold. We cannot assure our Members that we will have funds available to correct such defects or to make such improvements. In acquiring a property, we may agree to restrictions that prohibit the sale of that property for a period of time or impose other restrictions, such as a limitation on the amount of debt that can be placed or repaid on that property. These provisions would restrict our ability to sell a property. Illiquidity of real estate investments could significantly impede the company’s ability to respond to adverse changes in the performance of the portfolio investments and harm the company’s financial condition: Since real estate investments are relatively illiquid, the Company’s ability to promptly sell developed assets in response to changing economic, financial and investment conditions may be limited. In particular, these risks could arise from weakness in or even the lack of an established market for a property, changes in the financial condition or prospects of prospective purchasers, changes in local, regional national or international economic conditions, and changes in laws, regulations or fiscal policies of jurisdictions in which the property is located. The Company may be unable to realize its investment objectives by sale, other disposition or refinance at attractive prices within any given period of the Company’s properties, the Company cannot assure you that it will be able to sell its properties at a profit in the future. Accordingly, the timing of liquidation of the Company’s real estate investments will be dependent upon fluctuating market conditions. Real estate investments are not as liquid as other types of assets, which may reduce economic returns to investors: Real estate investments are not as liquid as other types of investments, and this lack of liquidity may limit our ability to react promptly to changes in economic, financial, investment or other conditions. In addition, significant expenditures associated with real estate investments, such as mortgage payments, real estate taxes and maintenance costs, are generally not reduced when circumstances cause a reduction in income from the investments. Thus, our ability at any time to sell assets or contribute assets to property funds or other entities in which we have an ownership interest may be restricted. This lack of liquidity may limit our ability to vary our portfolio promptly in response to changes in economic financial, investment or other conditions and, as a result, could adversely affect our financial condition, results of operations, and cash flows. We may be unable to sell a property if or when we decide to do so, including as a result of uncertain market conditions, which could adversely affect the return on an investment in our company: Our ability to dispose of properties on advantageous terms depends on factors beyond our control, including competition from other sellers and the availability of attractive financing for potential buyers of the properties we acquire. We cannot predict the various market conditions affecting real estate investments