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ERC 1 Reg A South Florida

Summary

Invest in the Development of Build-to-Rent Homes Aiming for Income and Growth: ERC Homebuilders 1, South Florida

The FASTEST GROWING SEGMENT IN THE HOUSING MARKET:

Build-to-Rent (B2R) Homes*

BUILD-TO-RENT HOMES

The demand for “build-to-rent” (B2R) homes is growing at a rapid pace. Millennials and other first-time, would-be homeowners want single-family homes and the lifestyle that goes with it – more space, privacy and a backyard.** However, in today’s environment this seems like a distant dream for many considering the typical 20% down-payment and carrying costs that come with owning a home.

THE PROBLEM:

92%

of millennials in the U.S.
consider homeownership
a good investment,

but...

43%

of millennials have
only saved $3,000
for a down payment***

Watch our overview video.

CATCHING THE WAVE: FOCUSED ON FLORIDA


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ERC Homebuilders is catching on to the fastest-growing segment in the U.S. housing market.1

Today, about 16 million rental properties are single-family homes1 with an estimated 13 million to be added by 2030.2

We are raising capital to initially focus our efforts in South Florida.

Why Florida?

Because of the state’s current job and population growth.

  • Florida itself has become the 17th largest economy in the world. 3
  • Florida's population has increased to 21.3 million in 2018 from 18.8 million in 2010.4
  • No state income taxes
  • Great weather

It is no wonder that Florida enjoys an influx of companies, start-ups and people.

Florida brought in $17.2 billion more from people moving into the state in 2018 than it lost from those who moved out. That was about seven times the net gains in each of the runner-up states: Texas, Washington and South Carolina.5

 
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BUSINESS PHILOSOPHY: DEVELOP AND SELL


Homebuilding is in Our DNA

We are developers and builders. Our core skill set includes recognizing trends, knowing where to acquire land, designing desirable homes within a set budget and executing on our plans. Our process is to aim to pre-sell our projects to institutional investors (private equity and hedge funds) before we ever break ground! This helps mitigate risks as we aim to deliver solid investment returns.

In our building process, we aim to place heavy importance on site selection, design and construction. We target communities experiencing strong corporate growth and seek to build around schools, offices, shopping and recreation centers. This increases desirability, resulting in expanded benefits for our institutional clients and their end clients—home renters.

 

INVESTMENT OPPORTUNITY


ERC Homebuilders 1, Inc. is offering a preferred equity investment opportunity to all investors under SEC Regulation A (Reg A+).

We invite you to invest in the ERC Homebuilders 1 Reg A+ Offering, in South Florida, aiming to raise up to $50 million in equity capital to fund projects, within this region. We hope to locate, build, sell and repeat this process with as many projects and as many times as makes smart economic sense for our firm and our investors.

In addition to participating in the potential price increase of our stock,
we will pay a dividend at the annual rate of 8% paid monthly.*
For many investors, the dividends may be tax-free for one year.**

  • Planned investment share price

    $6 /SHARE

  • Dividend at the annual rate of

    8%PAID MONTHLY*

    For many investors, this may be tax-free for one year**

  • Minimum investment of

    $500

    (100 shares)

  • Total offering of up to

    $50mm

 

*Since the tax treatment of any distributions may vary according to the financial performance of the company, as well as the particular circumstances of the investor, investors should consult their own tax advisers, and should not assume that the distributions will be subject to the same tax treatment from year to year. ERC HomeBuilders, Inc. will not generate revenues or profits until the company has built and sold developments, and there is no guarantee that those developments will be profitable. The company will set aside a capital reserve as investments are received; dividend payments will initially be made from this reserve. There can be no guarantee of future profits.

**During the first year it is likely that dividend payments will be tax-free due to the likely treatment of dividends as a tax-free return of capital to investors and thereafter as capital gains income for a limited period. The dividend will only be payable to the extent there are legally available funds.

AS SEEN ON...


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FOR THOSE WHO LOVE THE DETAILS

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We have crafted an Investment Guide to walk you
through many of the fine points we believe you need
to know in order to make an investment decision.

 

who we are


ERC Homebuilders, Inc. was established to develop and build build-to-rent homes. This year, we begin our development with ERC Homebuilders 1, focused on the South Florida region.

Our leadership team consists of seasoned professionals with decades of experience in private equity, specialty finance, real estate development, construction and alternative investments.

 

MARKET STATISTICS


As home-seekers continue to face significant barriers to homeownership, such as costly down payments, student loans,
challenging credit scores and a lack of overall savings,1 ERC aims to make living in a single-family home a reality.

Single-family homes
account for nearly

39%

OF ALL RENTAL
PROPERTIES2

Florida is experiencing one of the

FASTEST

JOB GROWTH

RATES

amongst the 10 largest
states in the nation.3

Miami-Dade County
alone added over

24,000

NEW JOBS WITHIN
THE LAST YEAR4

The numbers paint a clear picture and ERC believes the firm and its investors are in the right place at the right time.

Join us in providing single-family rental homes to those who desire
to live in a house but don’t have the means to do so.

Why Invest

THE COMPANY IS “TESTING THE WATERS” UNDER REGULATION A UNDER THE SECURITIES ACT OF 1933. THIS PROCESS ALLOWS COMPANIES TO DETERMINE WHETHER THERE MAY BE INTEREST IN AN EVENTUAL OFFERING OF ITS SECURITIES. THE COMPANY IS NOT UNDER ANY OBLIGATION TO MAKE AN OFFERING UNDER REGULATION A. IT MAY CHOOSE TO MAKE AN OFFERING TO SOME, BUT NOT ALL, OF THE PEOPLE WHO INDICATE AN INTEREST IN INVESTING, AND THAT OFFERING MIGHT NOT BE MADE UNDER REGULATION A. IF THE COMPANY DOES GO AHEAD WITH AN OFFERING, IT WILL ONLY BE ABLE TO MAKE SALES AFTER IT HAS FILED AN OFFERING STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION (SEC) AND THE SEC HAS “QUALIFIED” THE OFFERING STATEMENT. THE INFORMATION IN THAT OFFERING STATEMENT WILL BE MORE COMPLETE THAN THE INFORMATION THE COMPANY IS PROVIDING NOW, AND COULD DIFFER IN IMPORTANT WAYS. YOU MUST READ THE DOCUMENTS FILED WITH THE SEC BEFORE INVESTING.

NO MONEY OR OTHER CONSIDERATION IS BEING SOLICITED, AND IF SENT IN RESPONSE, WILL NOT BE ACCEPTED.

NO OFFER TO BUY THE SECURITIES CAN BE ACCEPTED AND NO PART OF THE PURCHASE PRICE CAN BE RECEIVED UNTIL THE OFFERING STATEMENT FILED BY THE COMPANY WITH THE SEC HAS BEEN QUALIFIED BY THE SEC. ANY SUCH OFFER MAY BE WITHDRAWN OR REVOKED, WITHOUT OBLIGATION OR COMMITMENT OF ANY KIND, AT ANY TIME BEFORE NOTICE OF ACCEPTANCE GIVEN AFTER THE DATE OF QUALIFICATION.

AN INDICATION OF INTEREST INVOLVES NO OBLIGATION OR COMMITMENT OF ANY KIND.

AN OFFERING STATEMENT REGARDING THIS OFFERING HAS BEEN FILED WITH THE SEC. YOU MAY OBTAIN A COPY OF THE PRELIMINARY OFFERING CIRCULAR THAT IS PART OF THAT OFFERING STATEMENT FROM:

https://www.sec.gov/Archives/edgar/data/1772602/000114420419019539/tv518235_partiiandiii.htm

FORWARD-LOOKING STATEMENTS 

THE OFFERING MATERIALS MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY’S MANAGEMENT. WHEN USED IN THE OFFERING MATERIALS, THE WORDS “ESTIMATE,” “PROJECT,” “BELIEVE,” “ANTICIPATE,” “INTEND,” “EXPECT” AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS, WHICH CONSTITUTE FORWARD LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.