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California

Class A 506(c) Offering

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$100,000 Min. Raise
$5,000,000 Max. Raise
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Class A 506(c) Offering

Two (2) Luxury California Homes For Short Term Renting

The Investment:

Crabby Cribs, LLS (the “Company” is raising funds in this Offering to invest into 2 Properties located in Los Angeles, California.

Accredited Investors Only Offering
 

Regulation D 506(c)
$10,000,000 Max Offering

Anticipated IRR Range: 6% to 18%
IRR is based upon current assumptions and actual returns may vary, including the potential loss of invested capital.


Acquisition Strategy:

 

 

1. Provide cash for distribution to the Members. An investment objective of the Company is to generate Distributable Cash from operations of the Company.


2. Provide the Members the opportunity to take part in the investment process with minimal involvement in management. An investment objective of the Company is to provide an opportunity for the Members to participate in the investment process, which an individual Member may not desire or be able to accomplish on their own. The Manager will additionally manage the Company so that the Members will have minimal involvement in the management of the Company.


3. Provide the Members with limited liability. An investment objective of the Company is to provide the Members with limited liability. The Company is structured so that the Members will have the limited liability afforded to them as designated by the DLLCA.

 

Property Description:

The Company intends to acquire, renovate, and operate two specific single-family residences located at 1234 Sunset Blvd. Los Angeles, CA 92129 and 985 Del Mar Heights, Del Mar, CA 92123. The properties are anticipated to be used as short term rentals with listings on AirBNB, VRBO, and similar short term rental listing platforms.

 

The property at 1234 Sunset Blvd. Los Angeles, CA 92129 is a 6,500 sq ft mansion in the heart of Hollywood. It is anticipated to be residential options for the Hollywood elite actors, producers, and executives. Alternatively, the residence can serve as an event center for parties, weddings, and corporate gatherings with it’s spacious backyard and living areas. It’s purchase price is $12,000,000.

 


The property at 985 Del Mar Heights, Solana Beach, CA 92123 is a 6,000 sq. ft. ocean adjacent mansion with nearly 180 degree views of the prestine ocean beaches that is a hotspot for tourists. It is anticipated that the renters will be similar to our Los Angeles (Hollywood) Property but also a greater focus on Silicon Valley and other corporate elite seeking an escape from the daily grind. We are similarly purchasing this home for $11,500,000.

Demographics

 

Overvall Report Card:

SOURCE: www.Niche.com

Map

Use of Proceeds

The following table illustrates the amount of proceeds to be received by the Company on the sale of Units and the intended uses of such proceeds.

  • The Company must raise $100,000.00 (the “Minimum Offering Amount”) before breaking impounds and deploying investor funds.
  • The Maximum Offering Amount is based on the sale of 10,000 Class A Units pursuant to this Offering. The Company does not anticipate that the Maximum Offering Amount will be required to execute its business plan. The Company may sell less than the Maximum Offering Amount or amend or supplement this Memorandum to sell more Units.
  • The Manager and its Affiliates or designees may purchase an unlimited number of Class A Units outside of the Offering on the same terms as those offered to prospective investors. Sale of Units to the Manager, its Affiliates, or other investors is not an indication that such Units are suitable for any other investor.
  • The Company does not expect to require the Maximum Offering Amount to purchase the properties or execute its business plan. However, the Company may choose to raise capital, in its discretion, up to the Maximum Offering Amount and set aside such funds as additional reserves.

The allocation of the use of proceeds among the categories of anticipated expenditures represents management’s best estimates based on the current status of the Company’s proposed operations, plans, investment objectives, capital requirements, and financial conditions.

Future events, including changes in economic or competitive conditions of the Company’s business plan or the completion of less than the total Offering, may cause the Company to modify the above-described allocation of proceeds. The Company’s use of proceeds may vary significantly in the event any of the Company’s assumptions prove inaccurate.

The Company reserves the right to change the allocation of net proceeds from the Offering as unanticipated events or opportunities arise.

Ownership Structure & Rights of Securities

Units Outstanding:

Name of Person or Group

Outstanding Class A Units:

Outstanding Class B Units:

Outstanding Class C Units:

     Outback Incorporated

 

Unissued, Offered Class A Units:

Number

0

0

100

100

 

Up to 10,000

 

The Company anticipates selling the above unissued Class B Units through this Regulation CF offering and Class A Units through a Regulation D Rule 506(c) (accredited investor only) offering to fund its equity requirements and activities. No more than $10,000,000 in the aggregate is anticipated to be raised through both offerings. The Manager and its Affiliates or designees may purchase such Units on the same terms as those offered to prospective investors. Class C Units are reserved for the Manager and its Affiliates or designees.

 

Investment Terms

Distributable Cash from operational cash flow will be distributed as follows:

  • First, from the Class A (Reg D Investors) Distribution Percentage Share, the Class A Members shall receive sixty percent (60%) of all Distributable Cash, ratably apportioned according to their Class A Membership Interest.
  • Second, from the Class B (Reg CF Investors) Distribution Percentage Share, the Class B Members shall receive fifty percent (50%) of all Distributable Cash, ratably apportioned according to their Class B Membership Interest.
  • Thereafter, Class A and Class B Distribution Percentage Share, the Class C Members shall receive all remaining Distributable Cash, ratably apportioned according to their Class C Membership Interest.

Distributable Cash from Capital Transactions or from dissolution and liquidation of the Company will be distributed as follows:

  • First, from the Class A Distribution Percentage Share, the Class A Members shall receive a return of their Unreturned Capital Contributions, and then sixty percent (60%) of all remaining Distributable Cash, ratably apportioned according to their Class A Membership Interest.
  • Second, from the Class B Distribution Percentage Share, the Class B Members shall receive a return of their Unreturned Capital Contributions, and then fifty percent (50%) of all remaining Distributable Cash, ratably apportioned according to their Class B Membership Interest.
  • Finally, the Class A and Class B Distribution Percentage Share, the Class C Members shall receive all remaining Distributable Cash, ratably apportioned according to their Class C Membership Interest.

Risks & Disclosures

The Company will be subject to those general risks relating to the development, ownership, and operation of real estate.

The Company’s economic success will depend upon the results of operations of the Properties, which will be subject to those risks typically associated with such asset class. Fluctuations in operating expenses and tax rates can adversely affect operating results or render the sale or refinancing of the Properties difficult or unattractive.

Certain expenditures associated with the Properties will be fixed (principally mortgage payments, if any, and real estate taxes) and will not necessarily decrease due to events adversely affecting the Company’s income from the operation of the Properties. No assurance can be given that certain assumptions as to the future profits from such operations will be accurate, since such matters will depend on events and factors beyond the Company’s and the Manager’s control.

These factors include, among others:

  • Adverse changes in local and national economic conditions;
  • Changes in the financial condition of buyers and sellers of similar properties;
  • Changes in the relative popularity of the Properties and in real estate as an investment class;
  • Changes in interest rates, real estate taxes, operating expenses, and other expenses;
  • Changes in market capitalization rates;
  • Changes in utility rates;
  • Development and improvement of competitive properties;
  • Ongoing development, capital improvement, and repair requirements;
  • Risks and operating problems arising out of the presence or scarcity of certain construction materials;
  • Environmental claims arising in respect of real estate acquired with undisclosed or unknown environmental problems or as to which adequate reserves had not been established;
  • Physical destruction and depreciation of property and equipment;
  • Damage to and destruction of the Properties, or any improvements or personal property located thereon;
  • Acts of God;
  • Changes in availability and cost of insurance;
  • Unexpected construction costs;
  • Increases in the costs of labor and materials;
  • Materials shortages; and
  • Labor strikes.
  • Changes in the availability of debt financing and refinancing;

Real estate is a long-term illiquid investment that may be difficult to sell in response to changing economic conditions.

Real estate is generally a long-term investment that cannot be quickly converted to cash. Therefore, the ability to liquidate the Properties promptly in response to economic or other conditions will be limited, which will affect the Company’s ability to realize a return on its investment. Real estate investments are also subject to adverse changes in overall economic conditions or local conditions that may reduce the demand for real estate generally.

View our
Offering Documents

Meet the Class A 506(c) Offering team

CEO
Carolyn Berkman

Carolyn is a visionary leader and CFO of a prominent multifamily investment firm, renowned for his strategic acumen and transformative approach to real estate. With a track record of driving growth and maximizing returns, he navigates complex markets with finesse, leveraging decades of experience to deliver exceptional results.

CEO
Andy Cho

Andy Cho is a visionary leader and CEO of a prominent multifamily investment firm, renowned for his strategic acumen and transformative approach to real estate. With a track record of driving growth and maximizing returns, he navigates complex markets with finesse, leveraging decades of experience to deliver exceptional results.

Partner
Samatha Jones

Samatha is a visionary leader and CEO of a prominent multifamily investment firm, renowned for his strategic acumen and transformative approach to real estate. With a track record of driving growth and maximizing returns, he navigates complex markets with finesse, leveraging decades of experience to deliver exceptional results.

Partner
Robert Keen

Robert is a visionary leader and CEO of a prominent multifamily investment firm, renowned for his strategic acumen and transformative approach to real estate. With a track record of driving growth and maximizing returns, he navigates complex markets with finesse, leveraging decades of experience to deliver exceptional results.

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