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ERC Homebuilders

Summary

Invest in ERC Homebuilders, A Development Company

BUILDING ON THE
CULTURAL WAVE

The accelerating demand for "build-to-rent" (B2R) homes is being driven by the cultural wave of millennials who seek single-family living, without the hurdles of ownership.

THE SOLUTION:

BUILD-TO-RENT HOMES

There is a growing cultural, demographic, and emotional wave being driven primarily by millennials. Many first-time owners are seeking privacy and a backyard without all of the responsibilities that come with homeownership. Contributing to their decision making process are financial pressures, such as student loans and the high hurdle of a large down payment. As they reach new plateaus in their lifecycle, many in this generation want a single-family home, but find purchasing it unattainable.

ERC Homebuilders is an integral part of the solution:
Build-to-rent (B2R) homes.

"Providing a home is fulfilling a basic need. Our culture is shifting, and people once again want privacy and a backyard. However, ownership remains unattainable for many; this shift may make B2R the next serious, sustained niche in real estate."

 

OUR BUSINESS MODEL


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ERC Homebuilders is catching on to this wave of B2R homes. We recognize that there is a big gap in the supply-to-demand ratio for single-family home rentals. We plan to develop B2R homes that will be pre-sold to institutional investors (private equity and hedge funds) before we break ground. This process helps to mitigate risks while aiming to deliver solid investment returns. In our process, we place heavy importance on site selection, design, construction, and any other processes to benefit all our constituents for a win-win scenario.

ERC Homebuilders has selected to build in Florida because it is experiencing job and population growth, partly due to great weather and zero state taxes. We target areas with strong corporate growth and the potential to develop service jobs that further enhance the greater community.

 

who we are


The ERC Homebuilders team consists of seasoned professionals with decades of experience in private equity, specialty finance, real estate development, and alternative investments. Our goal is to drive greater value and results while spearheading the growing market of rentable homes.

ERC's two founding shareholders bring extensive experience in real estate development, management, institutional equity and debt finance, land entitlement, design, and construction management.

 

our investment philosophy


The increasing demand for Build-to-Rent (B2R) single-family homes may be marking the beginning of a housing cycle. Contrasting this growing regional demand with the national slowdown of build-to-purchase single-family homes, there may be a sustainable opportunity to drive ERC and its investors. The rate of change in this market shift favors our business model and that of our institutional buyers. ERC plans to deploy optimum combinations of equity and debt to maximize its development profit potential and leave the door open to investing in other similar development projects.

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"Just-in-time inventory has finally come to real estate. Aiming to secure an institutional buyer before building begins and a product that is desired and attainable may be a great business model for passive-income-seeking investors and their advisors."

 

OUR OFFERING


A limited allocation of 20,000 shares are available at the opening share price of $1.02 per share. Shares will be sold on a first come, first served basis. Click the "Invest Now" button to invest and lock in this price.

 

  • Annual dividends paid monthly of

    8% invested
    capital

    and for many investors,
    this may be tax-free for the first year*

  • Initial share price of
     

    $1.02

  • Minimum investment of
     

    $10k

    (at the discretion of the issuer)

  • Total offering of up to
     

    $30 million

Overall return-on-equity ("ROE") projected towards the mid-20% range.**

 

 

*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 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.

**Projected financial data is included in this document; projections are frequently inaccurate

This document includes projections. Those projected results will only be achieved if the assumptions they are based on are correct. There are many reasons why the assumptions could be inaccurate, including customer acceptance of the product or service we are intending to offer, competition, general economic conditions and our own inability to execute our plans. Potential investors should take the assumptions in consideration when reading those projections and consider whether they think they are reasonable. You should consider these projections only in conjunction with the risk factors set out in our Private Placement Memorandum dated April 29, 2019, which you should read carefully.

THIS DOCUMENT CONTAINS 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.

 

 

investment guide


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ERC has crafted an investment guide to walk you through the details you need to know to make a well-informed investment in our company.

 

Why Invest

Private Placement Memorandum

Please read the Private Placement Memorandum here: Get Private Placement Memorandum

THE SECURITIES  OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES OR BLUE SKY LAWS AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND STATE SECURITIES OR BLUE SKY LAWS. ACCORDINGLY, THE SECURITIES CANNOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE ACT.  IN ADDITION, THE SECURITIES CANNOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE APPLICABLE STATE SECURITIES OR BLUE SKY LAWS. THE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC, ANY STATE SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON THE MERITS OF THIS OFFERING OR THE ADEQUACY OR ACCURACY OF ANY OTHER MATERIALS OR INFORMATION MADE AVAILABLE TO SUBSCRIBER IN CONNECTION WITH THIS OFFERING. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

 

THE SECURITIES MAY ONLY BE PURCHASED BY PERSONS WHO ARE “ACCREDITED INVESTORS” (AS THAT TERM IS DEFINED IN SECTION 501 OF REGULATION D PROMULGATED UNDER THE ACT). 

 

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.