REICO, LLC 506(c) Investor Portal

REICO, LLC

Real Estate Investment in the Cannabis Space

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REICO, LLC 506(c) Offering Platform

INTRODUCTION TO OUR COMPANY

The Real Estate Investment Company, REICO, LLC (the “Company” or the “Fund”) was formed for the purpose of acquiring and managing warehouse, land, and industrial class real estate assets in the cannabis space. The Company will seek to acquire or control and manage high quality real estate assets with the intention of providing participating investors with a real estate focused investment opportunity that combines income, principal investment growth, and elements of capital preservation. The Fund is managed by KB Capital Advisors, LLC (“KBA” or the “Fund Manager”), a California company formed in 2018 that specializes in real estate asset acquisition and management. KBA is managed by two highly experienced real estate and finance professionals with a combined 46 years of experience in the California real estate market.

The Fund’s primary focus is creating and maintaining investor wealth through local alternative real estate investment strategies primarily in the cannabis sector. The management team’s collective abilities provide an advantage over investing individually by allowing the Fund to quickly and efficiently address any real estate acquisition and management issues. The Fund’s ability to invest with aggregated capital also provides greatly enhanced negotiation leverage as the Fund can close acquisitions quickly and without the typical financing delays encountered with other purchasers that require institutional financing to close on a property. Since the Fund’s primary managers are directly involved in the placement of investment funds into select real estate assets, we can manage our investments more actively than large institutional investors. By investing in a Fund with experienced and specialized management, investors are freed from the complexities and time required for individual property ownership.

Over the years, our individual Fund managers have seen extreme market fluctuations; because of this, the Fund management team is always researching market trends to develop strategies allowing us to mitigate this volatility and reduce negative effects on our investors. This experience has also better positioned the Fund to take advantage of market opportunities presented in times of uncertainty. This proactive approach sets REICO, LLC apart from our competition.

The Fund’s management team has identified compelling market opportunities for the acquisition of industrial and land acquisitions in legal cannabis manufacturing zones within California. This prospectus will outline the Fund’s proprietary strategies for executing on these opportunities and the pertinent details regarding investment in the Fund’s securities.

Since cannabis legalization in Colorado, the state has seen a dramatic decrease in warehouse and storefront vacanies.

according to dopemagazine.com

REICO, LLC 506(c) Offering Platform

SUMMARY OF OPERATIONS

The Fund intends to operate as a hybrid real estate investment fund with a certain portion of allocated capital being utilized for shorter term opportunities and the balance for acquisitions that will mature over a five year period. The Fund’s execution strategy for those opportunities is detailed below:

Short Term Investments (under 18 months):

The Fund Manager anticipates that 10 percent (10%) of capital from the Offering will be allocated towards opportunities that involve options to purchase land or industrial space in a cannabis zone. Many of these opportunities will be sourced from distressed sellers or “special circumstance” type acquisitions (package Bank REO, seller joint venture, etc.) wherein a significant amount of equity and value is present from the time of acquisition and additional equity and profit is realized through the re-position, rebranding, and rehabilitation process.

Properties in this category are anticipated to require more re-positioning and rehabilitation work and would be reflected in the distressed level acquisition costs. The construction and rehabilitation experience of the Fund Manager is a critical part of this process as that expertise will allow the Fund to fully assess expected costs, timeframes, and other important metrics to maximize net profit and minimize risks related to unexpected rehabilitation costs and re-position expenses.

Long Term Investments (3 to 5 years):

The Fund Manager intends to allocate approximately eighty percent (80%) of invested capital towards acquisitions and/or (Master Lease with Option to Purchase) that will require a longer duration of time to mature prior to disposition. The Fund Manager expects that these assets will still be sourced at attractive acquisition rates, however the properties may not require as much rehabilitation or may be located in areas that demand a higher acquisition premium and thus the Fund Manager expects less initial equity immediately post-acquisition. The Fund Manager still intends to deploy elements of rehabilitation and re-positioning to maximize value and allow for maximum rental rates per square foot. Assets in this category will typically be held in the Fund’s portfolio for three to five years prior to disposition.

Ancillary Cannabis Investments (under 36 months):

The Fund Manager anticipates that 10 percent (10%) of capital from the Offering will be allocated towards opportunities that involve the purchase and rental/lease of cannabis business equipment such as Extractors, Grow Lights, Harvesting Machines and other such physical assets which can be repossessed should the need arise. The Fund believes that adding this ability to the PPM, would allow the Fund to provide a greater incentive to potential tenants to move into the Fund’s assets at a potentially higher rental, than comparable rental opportunities should they exist.

As legalization spreads, the demand for agricultural real estate has increased. Dilapidated old greenhouses and warehouses are now going for as much as ten times what they used to cost on a per-square-foot basis.

Dr. Jonathan Vaught, Founder and CEO of Front Range Biosciences

REICO, LLC 506(c) Offering Platform

Company Management Team

The Company is currently managed by seasoned business and sector professionals dedicated to the success of the Company and efficient execution of its planned operations

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Daniel Klein

Daniel has over 15 years of sales and marketing experience in the real estate and finance sector. He started his career as a telecommunications consultant, then became a real estate broker and managing director for B&A in 2005. He went out on his own in 2007 to start the Aequitas Group, a leading life settlement provider in 2007. During the market downturn in 2007-2010, he cut his teeth as a distressed asset negotiator for a hedge fund in LA. As the market recovered, he started a commercial real estate company in LA, specializing in 2-20 unit apartment buildings ultimately becoming a top 100 real estate broker in LA.

Currently he is co-founder of KB Advisors, a wealth management and real estate firm based in Newport Beach. Specializing in 1031 exchange alternatives and tax minimization, the firm is a thought leader in real estate investment strategies including senior living facilities and other value add opportunities.

Kevin S. Bonn

Kevin S. Bonn

Kevin has 30+ years of sales, management, marketing and business development experience in the medical, financial and real estate markets utilizing a dynamic high energy consultative sales approach to provide strategic and savvy financial advisory services to both consumers and business owners. He specializes in the formation and management of creative growth strategies including dynamic sales and marketing distribution systems, strategic partnerships, joint ventures and production partnerships.

Co-Founder of KB Advisors, a wealth management and real estate company headquartered in Newport Beach, he is responsible for the continued growth of the firm by providing unparalleled value to real estate developers, business owners, and clients looking to maximize their wealth through real estate. As a licensed Realtor, SFR Global Marketing Agent, Kevin continues to offer highly sought after services to clients such as Builder and New Home Sales, Worldwide Residence & Building Relocation, 1031 Exchange Services, Corporate Asset Management, REO/Foreclosure Management, Cost Segregation, Loss Mitigation and Property Management Services.

"From January to September 2017. . . cultivation and retail investments tripled to $718 million"
— cannabiz.media

REICO, LLC 506(c) Offering Platform

Terms of the offering

$100,000,000

Minimum Offering: $5,000,000

Minimum Subscription: $50,000 (50 Units)

The Company is offering a minimum of 5,000 and a maximum of 100,000 Class B Membership Units at a price of $1,000 per Unit. Upon completion of the Offering between 5,000 and 100,000 Class B Membership Units will be issued.

The Class B 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 specific language of the Operating Agreement; (i) a distribution to the Class B Members to equal an annual ten percent (10%) non-compounding cumulative Preferred Return Distribution (the “Preferred Return”) distributed to the Class B Members annually and calculated based on the Member’s invested capital contributions and; (ii) a distribution to the Class B Members on a pari passu basis equaling fifty percent (50%) of any additional net cash flow from operations with the Class A Member participating in fifty percent (50%) of remaining distributable net cash flow.

Net distributable proceeds from the winding up of the Fund and subsequent liquidation of real estate or other Fund assets shall be distributed on the following schedule and terms; (i) one hundred percent (100%) of distributable net proceeds to the Class B Members until such time as any accrued Preferred Return is paid and; (ii) one hundred percent (100%) of any remaining distributable net proceeds to the Class B Members until such time as invested capital contributions have been repaid and; (iii) any remaining net proceeds will be distributed fifty percent (50%) to the Class B Members and fifty percent (50%) to the Class A Member.

Contact Us

Please complete the contact form and we will get back to you about any questions you have about our offering.

Reico, LLC

1 Park Plaza 6th Floor

Irvine, CA 92614

(949) 238-8997

info@reicoinvestment.com

REICO, LLC 506(c) Offering Platform

So Much More than what you See

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The REICO, LLC 506(c) Investor Portal provides the opportunity for you to become approved as a “prospect", and learn more about our investment opportunity. You will have:

  • Access to the Private Placement Memorandum, which outlines our company and gives greater detail about our offering. Download a PDF to review on your time, read the ebook presentation online or request a hard copy of the documents;
  • Access to our SEC filing. Download a copy for your records or visit the sec.gov website;
  • View real time offering metrics of where we are in the offering process;
  • View the timeline of where you are in the investment process;
  • View company contact information and send emails directly to the administrator;
  • Easily upgrade to "investor" through the click of a button.

We will upgrade your account to “Investor” level access, which provides all of the prospect level access and:

  • The ability to download subscription documents for completion;
  • Document upload of subscription and accredidation documents;
  • Specific process information for investing and instructions on transfer of investment funds;
  • Access to quarterly and annual reports;
  • Access to Financial documents;
  • Access to Supporting Documents;
  • Access to Asset Portfolio;
  • Access to News articles written by the company for the investors;
  • Access to documents that you have uploaded and have been uploaded to your account.
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Ready to learn more about our investment opportunity?

Request Access now!