Use the Chapters list below to select the part of the video you want to watch.
Disclaimer:
The content in this webinar is not and shall not be construed as investment advice. This information is meant to be informative and for general purposes only.
MSC is not a law firm, valuation service, underwriter, broker-dealer or Title III crowdfunding portal and we do not engage in any activities requiring any such registration. We do not provide advice on investments. MSC does not structure transactions. Do not interpret any advice from MSC staff as a replacement for advice from service providers in these professions.
Chapters:
- Introduction & Disclaimer
- How Greenlite creates value
- The background of Jonathan & Greenlite
- What makes Greenlite different?
- Why Jonathan’s Background Matters
- Details of the Investment Offering
- Why This Structure Could Outperform Traditional Real Estate Investments
- Why is the NYSE is a central part of the offering?
- Why Timing Is Compelling Right Now?
- Regulation D & Regulation A+ Strategy Explained
- Greenlight’s Growth Plan & Scaling Strategy
- Why Oklahoma City & Secondary Markets
- Organizational Structure & Scalability
- Fractional Executive & Recruiting Strategy - How Greenlight accesses institutional-level talent efficiently
- Risk Management Approach
- Q&A - Is Greenlight Holdings involved in converting commercial properties into residential properties?
- Q&A - How can future capital raises at higher share prices benefit uh early investors or current shareholders?
- Target Property-Level Returns
- Understanding Equity Ratio 2.0
- Q&A - How much leverage does the company utilize?
- Q&A - What happens if if one property underperforms?
- Q&A - What's the current acquisition opportunity set look like?
- Q&A - What's the best next step for people in your audience that are interested in moving forward?
- Rod Turner’s Closing Thoughts on Leadership & Opportunity
- Webinar Wrap-Up
Rod Turner
Rod Turner is the founder and CEO of Manhattan Street Capital, the #1 Growth Capital service for mature startups and mid-sized companies to raise capital using Regulation A+. Turner has played a key role in building successful companies including Symantec/Norton (SYMC), Ashton Tate, MicroPort, Knowledge Adventure, and more. He is an experienced investor who has built a Venture Capital business (Irvine Ventures) and has made angel and mezzanine investments in companies such as Bloom, Amyris (AMRS), Ask Jeeves, and eASIC.
www.ManhattanStreetCapital.com
Manhattan Street Capital, 5694 Mission Center Rd, Suite 602-468, San Diego, CA 92108.
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By the the name label on the uh on the window panel there. Um my I am on the board of Green Light. Um, I'm pleased to be on the board and uh also an equity holder and I am the president and founder of Manhattan Street Capital, hence the uh the name you see behind me. We specialize in helping companies to raise capital online uh via instruments like regulation D and Regulation A+ which uh two instruments we're using with green light to raise capital. So my role today is as the host uh to essentially um literally to host this session with Jonathan who will be presenting green light and the investment opportunity. So I'm here to help marshall the questions get them uh selected in front of him and uh make sure that the process runs smoothly. Jonathan is the CEO and founder of Greenlight Holdings and of the prior uh proceeding companies. Um I'll be introducing him in a few minutes. Um I want to give a important legal disclaimer. I welcome all of you here. I want to give you an important legal disclaimer which is that because my company is directly involved in helping raise capital, I have a direct conflict of interest. um which is to say my company makes money when you invest in the company. So I want to disclose that fully with you and for regulatory reasons the SEC the the federal regulator for capital raising in companies has a lot of very uh significant restrictions. I am not allowed to make recommendations to you about anything any investment that you would make. I'm not allowed to tell you you should invest in Greenlight. So I won't be doing that. But I I will be helping host this session through uh for all the obvious reasons uh that for I'll be helping you understand the offering and clarifying the message the the answers that Jonathan gives if if and when needed. So I'm very pleased to be doing that. This session will be recorded and uh all of you will receive an email after the session with a link to the recording.
We ask that you don't record the session because in the event we discover that we made any mistakes during the session, we will edit out those mistakes and the recording that we send to you uh will be correct. I'm not suggesting there will be mistakes, but there might be. Um we welcome your questions. We already have questions that have already been sent to us. Um we invite all of you who are here live with us today to use the chat box to type in your questions and uh later in the session uh we will do our best to answer your questions in the order in which they're received and based upon the ability that we have to answer those questions uh effectively in this meeting. Okay. So um thank you all for that. I'm going to introduce Jonathan now. Jonathan is a great guy. I've been working with him for quite some time in the process of preparing to do these capital raises that we'll be discussing here. So, please go ahead Jonathan. Sure. So, uh thanks Rod and uh thank you everyone for joining us. Um our goal here today is to just try and keep it simple. We want to be able to show you guys why we believe Greenlight offers a distinctive way to create shareholder value through repositioning multif family real estate. Um, something to note is that this is not about buying into one building or waiting for one exit. This is about investing in the company that is built to continue sourcing opportunities, executing on them, and continuing to grow over time. So, uh, I intend to try to make this as straightforward, uh, conversational and as useful as possible. And, uh, hopefully by the end of this, you guys can see why we believe that this current stage of of green light is, uh, especially compelling for early investors. Okay. So if perhaps Jonathan you could give the short version of your track record, the track record that that is behind Green Light, why you built the company the way you have and why you believe that the structure and the method is relevant to investors. Sure. So to give everyone a little bit of a background, um I built this business from the ground up as an operator. Um I did not spend my career in one specialized division or department inside a large institution. Um I had to learn everything from acquisitions, financing, renovations, leasing and and reporting and how all those components connect. And I believe that that really matters because when you're pursuing these value ad repositioning projects, that type of project is not really one in one division or department.
It's one when all those pieces are are coming together and working in a uh a cohesive manner. So, to give you a little bit of of statistics on on my background, um I've been doing this for over 15 years, and that hands-on experience has grown from smaller repositioning projects into now larger multif family communities across multiple cycle cycles and in multiple markets. Um that model has been proven across more than about 2500 units, approximately 150 million in total project costs and approximately 30 million in realized net profits across uh completed full cycle projects. Uh to give you guys a little bit of an example, um we had a 328 unit uh property located in Oklahoma City that we acquired for 16.5 million. We executed a heavy value ad repositioning and then we sold it for 32.3 million after about a 37month hold. And that type of example shows our our approach and in our our playbook, if you will, where we're focused on acquiring at a low basis, increasing NOI, which is net operating income, and we increase that through our our renovations and our operational improvements. And then we create value through the work that we can actually control instead of having to depend on on just market appreciation alone. So for this securities offering this is the uh the next stage of that progression. Uh, Greenlight has moved from an entrepreneurial operating model into more of a institutionally structured platform where now outside investors are are able to participate through a a corporate structure that is built to retain the earnings, add more assets to the portfolio, compound on that execution, and then ultimately build uh enterprise value instead of having to reset after after each property. sale. Thanks, Jonathan. And I want to clarify for the attendees here. I misled you. I was asking you to post your comments in the chat box. Um, as Jose pointed out, please post your your questions in the Q&A. Um, you'll see there's a red highlight, a red red number one by uh a button on the bottom of your screen probably at the bottom. So, use that in order that place to post your questions. Thank you. So, Jonathan, could you explain what Greenlight is and why it's different from u many of the real estate offerings investors frequently or usually see? Sure. So, Greenlight, as I mentioned, is is institutionally structured as what's called a real estate operating company. So, in practical terms, Greenlight is the operating company. It's not a single property or a fund. So investors are are investing in in the company that uh is meant to source these opportunities, acquire the assets, execute the repositioning plans and and reinvest for future growth. And that's very different from your your typical one-off syndication or or finite life fund. Uh in those structures, capital is is usually tied to one particular asset or or a particular fund cycle. Whereas, as I mentioned, Greenlight is built to recycle that capital, grow the portfolio, and ultimately build a more valuable company with each successful project. Um, another point to me uh to convey is that it's also very different from many public REITs. Um although REITs can be effective vehicles, many of those REITs are built around cash flow distributions and they have compensation structures that can sometimes create potential misalignment when uh those economies can take priority over that of the investor returns. Whereas with Greenlight, we're built as that operator multif family uh real estate company and our focus and our priority is on the execution, the reinvestment, no corporate level uh GP promote or or profit sharing and ultimately increasing that share share value over a longer period of time. So um to Jonathan I want to clarify one thing there which is that which is one of the things that I like about uh what we're doing here with what you're doing and I'm participating and helping with with Greenlight which is that the upside is shared democratically proportionally with all shareholders. Right. So we're that many of the REITs that I've looked at uh take huge fees. There's a fee for opening the door.
There's a fee for closing the door. or a fee for getting an estimate, a fee for refusing the estimate. You wouldn't believe how many fees there are that soak profits or take the profits out of those operations. We don't do any of that. We're running a business for the gain of all shareholders. U so I think that that's that's a significant difference. It's obviously a different approach, but it's a significant difference. So So Jonathan, you built Green Light the back your history to date uh as an entrepreneur investing your own money. um why is that a good preparation for leading green light in its new phase here? Sure. So for investors, the benefit of my background is that I understand the entire business. Um as I I referenced earlier in a large institution, a lot of these employees are often segmented by division. So you might have one person that that is focused on underwriting, another focused on on asset management, another is focused on on financing or originations. And that structure could create ex excellent specialists, but it doesn't always create operators who know how to uh build and lead the whole company from the ground up. So for multifamily uh value ad strategies the biggest risk usually appear when all those functions have to meet and come together. So to give you a quick example the acquisition plan has to match the renovation plan. Renovation plan has to match leasing and operations. Financing has to match the timing of execution. So on and so forth. And because I've I've lived across all those different pieces I can see the full picture. and I can push the company to to execute with tighter and stronger accountability. Um, at the same time, uh, Greenlight is built to continue reducing what's referred to as founder or key person risk. So, for example, um, we intend to fill the COO or the chief operating officer position at the appropriate stage and then also adding other leadership roles as the company scales. So that way the company is not having to rely too heavily on on one single individual. And it's my belief that that combination really matters because now you've got the the um founder and CEO level leadership at the top. You've got institutional support beneath it and a structure that continues to grow as as Greenlight scales.
So in terms of of investor benefit that really means uh better decisions faster execution and and that reduced uh key person risk over time. Thank you Jonathan. What are what's the offering today? You know what are investors who choose to invest buying and why and why do you consider it to be attractive? Sure. So investors are buying preferred equity in greenlight. So the current price today is is $1 per share and then larger commitments can qualify for share discounts of up to 30%. And we believe that that structure is attractive because it's designed to give investors both a stronger position and real upside uh participation. And then for those that are that are unfamiliar with preferred equity, it it's meant to sit in front or senior to common equity in in certain important economic situations while still allowing investors to participate in in profit as it the company continues to grow and and uh share value increases. Another point is is alignment. Um in many real estate funds and syndications as you uh mentioned Rod um fees and and promote economics can come out before investors see any type of benefit of the returns but here with with green light there's no corporate level uh GP promote or profit sharing and management benefits through common equity only. So our focus is on increasing company value and share value for everyone and not just a select demographic of of investors or or owners. And then uh lastly the the pricing also matters. Um early investors are are entering now while green light is still private and while the share price is still at today's level. Uh if the company continues to hit its various milestones, future offerings are expected to be at higher share prices. So that means investors who enter earlier can now own more shares at a lower basis before those later investors come in at potentially higher prices. So I I want to add to that a little bit that in an online raise which this is um there are many adv advantages and attractions to it but there is a tendency sometimes for investors to say hey I like that company I'm going to sit on the sidelines and wait till they've almost finished their raise and then I'll chip in my money when there's less risk that's a understandable dynamic but uh what Jonathan intends to do is to raise the valuation on a regular basis uh as we prog progress with this raise in order to reward the early risktakers and frankly to reflect the reduced risk.
The more money that's been raised, the more money to deploy and to buy buy real estate scale up the business. So the valuation the intention that Jonathan has is to step up the valuation on a regular basis going forward online whilst we're raising money. We don't have to stop and do something completely different. It doesn't have to be complicated and isn't complicated. So I want you to be aware of that. Um so Jonathan, why and how can this this structure this approach create uh a better outcome than a typical property level investment fund or REIT? Sure. So in a traditional property level offering, the investor's upside is mostly tied to one asset. And in a traditional fund, the investor might get a broader exposure or diversification, but there's still those layered fees. You've got a finite or a a limited timeline, and then there's a built-in reset whenever that fund winds uh winds down. And then something else to mention, um, as it relates to what people in the industry refer to as core or core plus strategies, um, investors might own a newer or more stabilized asset, but those assets often have less room to increase value because those rents may already be near the top of the market. Now, with Greenlight, we're different because investors can can benefit from multiple layers. you know whether it's property level NOI growth, portfolio growth and most importantly enterprise or corporate level value growth. Um it can also include u future increases in share prices as I mentioned and eventually a potential public market valuation assuming that that the company reaches its its future listing objective. So to to just give you guys a uh a hypothetical example, let's say an an investor purchases shares at today today's price of of $1 per share and then at a later date that share price increases to $2. In that example, uh the investor is going to realize a 100% return on investment, which in in real estate, many investors would consider that pretty exceptional returns. And that's an example of why investing in the operating company is significantly different from investing in a single property or a single fund. So again, while while Greenlight is still private, um uh future share prices are set by the company um and it can be set based off of factors such as progress, um its own internal valuation, and the offering structure rather than the typical market trading that that you would see with uh publicly traded companies. Um and and the one kind of disclosure that I do want to put out there is that when a company is private and it's able to set its own share price that can cut both ways. So if a company were to overpric itself and you typically see that more in the tech industry they can face a correction when it does eventually list its shares for for public trading and investors or shareholders might not be too happy about that. Whereas if a company stays disciplined with its own internal valuation, you leave room for growth. When that company does make its shares available for trading, the broader mic broader market might reward you. You can see a strong uptick or a strong increase in that share uh price once it is available for for listing. Thank you, Jonathan. So why is the New York Stock Exchange path so central to the business model here and what should investors be considering? Miranda. Sure.
So to clarify, our long-term liquidity objective is a direct listing on the NYSE American. And as many people in invested in real estate know, uh liquidity is one of the biggest pain points. So in a normal private deal, investors may have to wait years for a refinance, a sale, or or a fund windown. Whereas with an exchanger listed security, investors can potentially buy or sell their shares through a public market in a matter of minutes instead of having to wait on a property level event. And then as it relates to the American exchange, that exchange is part of the the broader NYSE platform and is designed for capable growing companies. Um, it offers a listing that's part of what many would refer to as as a worldrenowned platform that everyone recognizes, the New York Stock Exchange. And with this particular American exchange, they provide a number of of various uh supporting services designed to help these uh growing companies achieve stronger vis visibility and and help them as they they continue to grow and mature. Um, now something to note is that many stock exchanges have different tier levels designed for companies at at different uh different stages of growth similar to how um a professional sports league such as the MLB or the NHL have different competitive tier levels. So, take for example the the MLB. You've got the the the big leagues which everyone knows and then you have the minor leagues and within the minor leagues you have every anywhere from you know um the A class minor leagues all the way to up to uh AAA. Um so for Greenlight being a part of of this uh NYC platform offers us that higher level of public visibility. Um, you've got designated market makers which help to stabilize share price and minimize volatility. And as I mentioned, you've got a very structured path to a potential uplifting to that main exchange once the the company uh matures and and is eligible to take that next step. Um, something else to consider is that we chose the NYC brand because we feel like it's a more natural fit for a real estate operating company like Greenlight compared to some of the other less suitable exchanges. Um, so for example, you look at the NASDAQ, they're obviously a well-known exchange, but they're more generally associated with technology and very high growth sectors. Um, NYC is is is a better fit for us. Um, and then another very key point that I want to uh call out is that there are very few public growthoriented real estate companies that that are focused on this moderate to heavy value ad strategy that that green light is on and uh most of the the the real estate companies that are listed on the NYC are more income oriented REITs. So as a result that differentiation can create a lot less competition for us and the potential for just stronger uh investor and public relations attention and really help to to separate us from from the other crowd. And I would say to complement that that the fact is when you're looking at REITs you're looking at income relatively conservative income generating investments that uh have low multiples. U the upside for us us as an operating company that is Greenlight Holdings as an operating company is that by executing really well over time and demonstrating that consistently there's a potential for a far higher valuation, far higher price earnings multiple. Um so Jonathan, why do you believe that that the timing is especially compelling? That is to say, why is investing now a good idea for the folks that are paying attention to us here? Yep. So we believe the timing is compelling because greenlight it already has that operating foundation. It's got the plan, the infrastructure and it already has the opportunity set available to us. The only missing piece at this point it is scalable capital and it is that capital that's going to allow us to scale faster, build that enterprise value and most importantly uh build shareholder value.
Um and then also as I I alluded to um the entry point matters. Uh today's investors are looking at Greenlight with his current private market pricing with current discount uh tiers available. And this is all available before the the broader scale before the launch of our upcoming regulation a phase which we'll talk about here shortly. um before broker dealers or investment bank channels open up and and uh probably most importantly before any future increases in share price for any uh new investors that come in at that time. Um and then in terms of of the opportunity set uh it is very present, very real. Um to give you guys an example, uh there is a distressed Oklahoma portfolio that's approximately $1 billion in value that is in the early stages of being completely dissolved and sold. Um, and due to the uh distressed nature of these properties and the fact that they are located in Greenlight's target markets, they can likely fit our acquisition criteria and will uh likely attract less competition than those typical clean stabilized assets that everyone really tries to promote. So for investors, kind of the key point here is that the company is prepared. uh the plans are in place and the opportunity already exists and it's really capital that that is going to be the accelerator to our growth. So you touched on some of this but could you explain to investors how to think about the Reg D offering and its relationship to the Reg A+ and the way in which you expect to expand capital raising over time. You just shed a bit more light on that. Sure. So the easiest way to think about it is in stages. Uh the regulation D is the current offering that we have available for accredited investors only. And the upcoming regulation A is that next major growth step. So, anyone that's unfamiliar uh with Reg A+, it's often called or referred to as a mini IPO because it's more of a public offering style process that can open up the door to a larger retail investor base. And it's often at much lower uh retail uh friendly minimum investment amounts. And that really matters because the Reg A+ is a lot more demanding than your typical private Reg D offering. uh it involves a much more challenging regulatory process uh increased reporting expectations and more of a a public style transparency approach. And that type of discipline, it it helps greenlight prepare for the same kind of a reporting and governance standards that are going to matter for that future uh exchange listing. So for the current Reg D investors, the benefit is the progression. After the Reg A+ is launched and the company can expand its capital access, we are expecting to have increased visibility. Um that we're going to have that broader shareholder base and and a lot more support for for Greenlight's eventual listing objectives. Um, furthermore, by increasing that shareholder base, it helps with meeting some of the uh the American exchange listing requirements, um, having that broader shareholder base increases share price stability, so you don't have as much volatility and it also increases the liquidity once those shares are publicly tradable. Um, and then to just kind of give you a little bit of of a further insight into our our fundraising channels, once there has been enough uh capital validation and execution proof, we do expect that the solicitation channels are going to increase and that's where broker dealers and investment banks start to get involved and we can tap into what's called syndicate distribution, which uh basically means multiple investment banks can be involved on the same offering and can help to facilitate and and raise uh additional capital through their larger investor networks. And then similar to the multiple tiers of a uh a stock exchange, there are multiple tiers of broker dealers and investment banks that work in various spaces ranging from the small cap space all the way up to the uh larger mega cap space. So for today's investors, the benefit is really scarcity. Um the direct solicitation channels that we're using today are are expected to be limited. Um as green light grows, we do expect to rely more heavily on those larger capital channels and less on the channels that are being implemented today. So again, that that really means that the early access point may not stay open and and available uh for a long period of time. I want to add a couple of clarific further clarifications though.
Some of you may not be aware, Reg A+ is actually a public offering as far as the SEC is concerned. So any company that goes live with the Reg A+ is now subject to public reporting requirements uh which are less demanding than being public on the NASDAQ or the NYSE but are still demanding annual audit six monthly management financials to US cap standards. But uh as important though is that all shareholders that have owned their stock long enough to exceed the rule 144 holding period of 6 months typically in a Reg D that you're contemplating investing in will be made liquid by the Reg A+. That doesn't mean that the that Jonathan's planning to list the company immediately because he isn't. But it does mean that technically you are allowed to sell your shares if you find a buyer if your if your buddy wants to buy some of your stock and you're able to accumulate more in the secondary market if you know people that are that are connect if you if you know people. So, you know, I don't want to make a bigger deal of that than it is because until the company has listed its stock somewhere, it's inconvenient. But as far as the SEC is concerned, and they're the guys that place the very uh uh heavy restrictions on the liquidity of stocks and so forth, everyone who when the rea plus goes live, then uh all classes of stock are made liquid by that. Of course, Jonathan will be restricting uh liquidity for people like myself and himself and key executives in the company, but Reg A+ is a public offering. And Brian has raised his hand. Let me see what that's about. I don't know what that's about. Maybe you can post your comment, Brian, in uh the Q&A or in the chat box. Um, so how should Jonathan, how should investors visualize Greenlight's growth plan uh from here? Sure. So I'll kind of keep it quick and short since we've already t uh touched on it, but uh let's assume Greenlight raises enough capital to build out its remaining corporate infrastructure, acquire more assets within the portfolio, and execute on on all of its uh value add business plans. The company is then going to be able to move from what many would deem as as an emerging manager into now a scaled platform and that's when the valuation access to additional cap capital and the listing readiness is going to be able to change meaningfully. So uh that really matters because the capital allows us to tap into that next stage of growth. So again, you know, investors can participate now while we're continuing to progress along that that growth plan and before all these um additional broader distribution channels really open up. Why focus on Oklahoma City or and similar secondary markets? Jonathan, sure.
So investors often focus on the larger markets because those markets tend to get the most attention. uh more attention, that being said, does not always mean better riskadjusted returns. Uh in in many large primary markets, buyers are typically paying more for that same rent dollar. They're facing more competition and they may end up having to rely more on market appreciation to make their deals work. Whereas with Greenlight, our strategy fits better in secondary markets where the basis is typically lower than what you would see in these larger primary markets. And then also hands-on execution can directly increase NOI which is you know net operating income and and more importantly increase property value especially when these assets are are distressed, undermanaged or just uh operationally messy. So for us as it relates to Oklahoma City specifically, it gives us that right operating backdrop. Uh we've got a large enough metropolitan population. it is a very affordable market and you do have a diversified employment base. Um, also from a landlord standpoint, you you do have a very favorable uh regulatory environment that allows us to execute on our business plans pretty quickly. Um, and there's also a very large um supply of what is referred to as workforce housing where our value ad strategy tends to fit really well. And then also as it relates to smaller what uh people in the industry would refer to as tertiary markets, um we want to be able to work in a market that has plenty of of market depth to lease and and operate efficiently. Whereas a smaller market, you just have too small of a a population, not enough supply of potential properties to redevelop. whereas Oklahoma City kind of gives us that that better middle ground and and is a the best fit for uh our strategy. So what should give investors confidence that uh Green Light is being built in a way that prepares it to scale nicely? So that's a good question. Um Greenlight is already organized in a way where we have core divisions that really matter most to execution. So to give you guys an idea of some of our divisions, we've got acquisitions, asset and construction management, investor and public relations, legal, and and numerous others. But the point is that we already have that organizational framework in place. And we're continuing to expand it as the the scale of the company warrants. And then within each one of those divisions, we have a hierarchy of leadership layers. So that way we've got positions such as you know managing director, senior director, director level roles and some of those roles are internal, some of them are are fractional leaders and some of them are planned hires as the company continues to scale. And it's with this type of structure that allows us to have multiple levels of expertise, oversight and and accountability. Um something else to note I is that this type of organizational structure is uh typically a standard practice across all types of of companies including institutions. So with this approach it allows us to operate efficiency efficiently now while building towards a more vertical uh local locally oriented company.
Um another point that I I want to mention real quick is that governance really matters. Uh Greenlight has board oversight including independent directors and is building uh board level committees to allow for more effective uh key corporate level decision- making. And it's with these components that that help to further reduce that that founder or key person risk while preparing the company for higher standards that come with the the rag a and a future exchange listing. So for investors um that basically means stronger execution, stronger controls, you know, cleaner communication and a platform that is allowing us to move to the various stages of growth. Jonathan, can you clarify because I know you don't have a cast of thousands on board right now. Um so could you explain how you're able to deliver on the services in the functional areas you just described right now today? Can you describe that part? Sure. So, what makes us a little bit more unique is that we have a relationship with a recruiting firm that specializes with commercial real estate professionals anywhere from middle management all the way up to executive management. And what makes this particular recruiting firm unique is that they not only source full-time employees, but they they source fractional employees that can act almost as as independent contractors. So whether you're an emerging manager and you want to tap into high quality employees but you don't want to necessarily burden the payroll or if you're an institutional firm and and you're launching a new fund or you have some new initiative where you've got temporary needs, you can utilize this uh recruiting firm that we've got a a unique relationship with to bridge the gap from being that entrepreneurial business to having the institutional infrastructure. ure in place without throwing too much of a burden on on the payroll and some of the operating expenses. Thank you. What's your approach to risk? How do you manage risk exposure in the company? Yep. So that's something that is very important to us and we really think about managing downside risk as and controlling that as much as possible and that really starts with acquiring properties at a low basis and that sometimes can be done through creative or or distressed structures instead of chasing those highest priced assets in the most crowded markets. Um we also use conservative conservative leverage. We do something called stress testing each business plan including the projected NOI and and exit values and we build in a a reasonable and comfortable level of margin of error for the curve balls that can come sometimes happen in in this industry and line of work.
And then we also stay very hands-on throughout the entire life cycle of the business plan because all those components can impact NOI and and ultimately property value. Um something else to mention too is with our our value ad strategy that can actually help to manage risk because it gives the operator more ways to create value. um future rents are are based off of what higher properties and higher quality properties are already achieving in the marketplace. Whereas with Aclass properties, you might have to speculate from future rent growth and and look at and what what the market may or may not achieve and and being able to to push rents. So you may not have a much as much room to increase value versus the value ad strategies that we pursue. So kind of the the key message here is is I'm not saying that there's no risk involved. The message is that Greenlight is designed to minimize avoidable risk and protect that downside through our structure, through our underwriting and being more hands-on throughout the uh the life cycle of these projects. Cool. So I'm going to change the flow just for a moment. Dennis Lorty posted a question uh in the live Q&A using the Q&A button in this Zoom. His question and I'd like you to answer this and then we'll go back to the the other questions that were already sent into us. Is Greenlight Holdings involved in converting commercial properties into residential properties? No. No. We are always pursuing established multif family properties and nearly all of them are what we would consider market rate. So we don't really tap into some of the specialized sectors such as senior housing, student or affordable. We look at that market rate multifamily that is just underperforming and we want to be able to maximize its value through uh a redevelopment and improvement plan. And there's another question actually this is both on our our prior entered list as well as live in the session. How can future capital raises at higher share prices benefit uh early investors or current shareholders? Sure. So that is a point that I wanted to bring up. Um and and I'll give you kind of a a benefit here. So future raises can help current shareholders when they're they're done at higher prices and that capital is utilized to to grow the company. So to to give you an example, if an early investor comes in at today's share price of $1 per share and then later investors come in at $2 per share, that later money is validating a higher value for the company. So you're entering in at a lower price point and then as the company grows and increases its value, the value of your shares as a shareholder will increase accordingly and that's where you're going to see your greatest return.
Actually I want to add to that too because we are using a uh SEC approved transfer agent for this capital raise. When you invest, then you will receive an invitation to log into your account at the transfer agent where you'll see the shares that you own listed. And if we if Jonathan does as he intends and raises the share price progressively during this raise, then you will see the new then current share price that we're selling shares at reflected in your account at the transfer agent, which is nice to see. Yeah. And I can touch on that real quick too is is what makes that approach different than what you would typically see in a private real estate offering is that you as a shareholder can log in to this portal just like you would a brokerage account or a retirement account. You can see all the details of your investments, the records and updates and you can see how much the value of your investment is changing as the stock price changes. And that's not something that you you would typically be able to see at uh as an investor in a private fund or an individual property. You typically have to wait for some sort of major event, whether it's a sale, an appraisal, or some sort of re-evaluation to understand how your investment value has changed. Whereas you can see that change in real time by simply just logging into your portal. What what type of property level returns does Greenlight typically target? Sure. So, Greenlight generally looks for property level business plans that can target what we would refer to as an IRR or an internal rate of return above 20% and an equity multiple above 2.0. And the one disclosure is that these targets can vary based off the level of value ad leverage property size and the execution timeline. And then another metric called cash on cash returns. Those are not prim usually primarily the focus during the repositioning phase. During that phase, our priority is to increase NOI through our physical and operational improvements. So that way we can focus on increasing the overall property value. And then once that property is stabilized or or redeveloped, we generally target uh cash on cash on cash returns of at least 12%. Um, and the key point that I want to call out for for potential investors is that the property level returns and profits are intended to be reinvested into future projects rather than simply distributed to investors and then ending the story. And it's with this approach that allows us to help grow the grow the portfolio, build that that enterprise value, and most importantly uh increase shareholder value. So you mentioned equity ratio of two. What does that mean? Could you clarify? So when you put equity into a property, you're going to want to look at at the overall return on that particular equity. So if you had an equity of of 2.0, that's allowing you to essentially double the the equity that you put into that project. So these are are commercial real estate level uh return metrics.
Um, and these are metrics that that you want to be able to set to a certain level to ensure that you can not only generate acceptable returns given the investment strategy, but it's also a a measure of a margin of error. Because if you have the potential to make a great return and then somehow things go sideways or the market is not working in your favor, at least you still have more of a margin to walk away with hopefully a respectable return. And Kent Campbell asked a question, how much leverage does the company utilize? Sure. So with our new acquisitions, we always want to target a little bit more of a conservative leverage. So we're typically going to be in that 65 to 70% loan to cost level. Um, and with that, it reduces risk. um it does reduce your potential uh returns, but we want to focus on long-term value versus overleveraging these properties in in order to juice up the returns and then you know you don't have that margin of error that I I was uh referring to. So we're very close to we're getting a little short on time. What happens if if one property underperforms? Can you explain? Sure. So that's exactly why the company structure matters. Um shareholder value is tied to the enterprise as a whole and not just one asset by itself. So although one property is is important, it doesn't necessarily determine the entire value of the company. Um and then from an operational standpoint, management has tools and strategies available to them if an asset under underperforms. Uh so for example, we can tighten operations. We can replace on-site management. We can adjust the renovation or the leasing strategy. Uh refinance or potentially even sell if that becomes the right decision. But the goal is to be an active portfolio manager versus just sitting still and hoping. And that's typically what you see with more of that core investment strategy. So with with our value ad approach, it gives us more levers levers to pull and um with the right operator, you can increase value through that uh better execution. What's the current acquisition opportunity set look like? It's a kind of a difficult question. I'm hurling at you. Sure. So opportunity is not really the bottleneck here. Um we're operating in a very what's called target-rich environment. Um and that earlier referenced uh distress portfolio portfolio is one example of that. Um there's a number I wanted to clarify when you mentioned that earlier you said it was 1 billion right that portfolio in Oklahoma is valued at approximately$1 billion dollars. That's correct. Y it's a lot of targets. Yes it is. Um and and beyond that portfolio, there's numerous other underperforming assets in our targeted market.
So that can really create a consistent pipeline of of future opportunities. Um so if Greenlight was really well capitalized, it's going to allow us to move quickly, take advantage of those economies of scale, and really become a more meaningful player with minimal competition in a shorter amount of time. and and that can ultimately translate to a stronger enterprise value and kind of a cleaner and faster path to our our long-term uh listing objectives. What's the best next step for people in your audience that are interested in moving forward? Sure. So, to put it simply, uh go to the uh Greenlight Holdings offering page, start the investment process, and take advantage of of today's private market pricing while this access point is still opened. Um and and as I mentioned earlier, larger commitments can qualify for pretty meaningful discounts and our investor relations team can work with you one-on-one right after the webinar if needed. Um and then you know finally I want to convey that we're building something that we believe is very different in private real estate and the investors that that participate at this stage those are the ones that are going to be best position to capitalize before green light reaches a different level of scale visibility and and eventually uh valuation. So I want to just add a sort of an editorial note here. Um, I I've had I've had the good fortune to play a senior management or founding executive role in seven successful startup companies, high-tech startup companies. And um, in this seat for more than 10 years where I've been raising money with companies, I get to work with a lot of very seasoned executives and comp in various types of companies. And um Jonathan shows to me the right kinds of characteristics across the board. You know, in our preparatory session, I was complimenting him legitimately on his tenacity and the way he pays attention to all the moving parts as we we go through this process together. So, you know, he's a serious guy and he's focused on what we're doing here. This is not a casual project. So, I I do I can say that because it's the truth. I recommend that you pay attention. And on the other note, we talked about share price increases. I recommend that if you like what you see here, that you engage thoroughly enough that you either invest or that you are ready to go in the event that there's a notification that comes to you that there's going to be a share price increase a week from then when you get the email because that's the nature of how these things operate with an what is a Reg D 506c where we are marketing this online as you may be aware that mechanism um it's completely normal and legitimate for the company to send a notice to all the interested parties and say hey if you want to get in at the current share price do so by Thursday next week because the share price will increase then there are more restrictions on how you do that in a rea plus but in both scenarios the late Reg A+ as well as the Reg D currently those those situations will apply something else I mentioned I'm intended to mention earlier but I forgot is that the Reg A+ will be for common stock the Reg D is for preferred bird stock. Um because essentially, you know, we're dealing with a more sophisticated audience of accredited investors and institutional investors. Um we we do intend to continue the Reg D in parallel with the Reg A+ when it goes live in order to offer deeper discounts to large volume institutional investors in the Reg D who are less concerned with immediate liquidity which the Reg A+ offers uh from a regulatory standpoint. as I mentioned earlier.
Okay, so a couple more housekeeping items here for you guys. Um, we will be sending an email out to every all of you attendees with a clickable link to the with a to a recording of the webinar. And if we've made mistakes, there will be corrections made to that recording when you receive it in a week or so's time. Um, Jose has posted in the chat the the clickable link so you can go to investigate the offering more in more detail or make an investment this afternoon if you would like to. The Reg A+, excuse me, the Reg D investment minimum is $10,000. Typically, it's not worth an accredited investor's time to put in a smaller amount than that. And there are volume discounts for much larger investment amounts. I think Jonathan mentioned that earlier. Um, so thank you all for being here. Thank you Jonathan for presenting clearly what we're up to or what you're up to, what we're up to together. Um, let me see. Perhaps you'd like to say goodbye yourself and thank you Jonathan. Yeah, you know, I appreciate the time for everyone showing up today. Um hopefully what I was able to explain what was clear and um if you have any additional questions, we do have an investor relations team that you can reach out directly to and and they'd be happy to set up a call or a um a conference video call with you and walk you through any u additional questions or or um items that you might want to have covered. So, so perhaps Brian, you could put your email in the uh the chat box so that anyone who wants to grab it and send you an email can do so easily. Um, and other than that, I think we've covered the ground. We've done it magically with a couple of minutes to spare. Thank you all for joining us. I hope you found this informative and look forward to uh hearing back from you with any feedback you have and uh hopefully to u great success with you joining as an investor in this company and finding that to be a worthwhile journey. Yes, thank you.
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