AUS Senior Living Group, LLC

My wife and I have a business operating assisted living facilities for owners across Florida.  We had a lender come to us due to the seller having to return the keys due to separate deal having financial issues and the asset was used as collateral.  In speaking with the lender, we negotiated a purchase contract with them just above the note price which covers their fees, etc.  We will be operating this facility and are seeking investors to assist in securing it.  For this you will be able to share in the profit of this asset type and the upside of the real estate should the investment be of a considerable size.  We are investing all required OPEX and providing to the bank 2 residential properties as collateral within the deal. 

Here are the deal terms we are proposing

1st Option - Fund the whole deal - $5,550,000.00 (Business purchase including Real Estate plus CAPEX - $4.85MM property purchase & $700K CAPEX)  
Already cash flowing Assisted Living Facility.  Lender approached wife and I to run it on their behalf (a business we have) while they market it and sell it.  It's being sold for just above the note as the lender just wants out. This asset got caught up in a cross collateral agreement where a different deal went sideways.  We expressed interest in taking it off their hands so it's an off market deal. For funding, we would propose an 8% interest rate amortized over 25 years.  We would also offer 10% of the operating entities annual profit for a 5 year period.  Within 5 years, once we stabilize the operation we project a valuation between $10MM and $14MM. We show stabilization in year 3. The exit strategy is I refi with the new NOI where I would roll it into a HUD 232 loan.  

2nd Option - I have already secured a loan, for a $1MM investment, the investor would receive 10% of the profit generated, paid annually for a period of 5 years.  They would also receive 10% stake in the purchase of the property until such time as the property is refinanced (or a max period of 5 years) to where they would receive the below stated terms and be discharged from ownership on receipt of payment of their portion of profit plus their initial investment.  Within 5 years, AUS Senior Living Group will refinance the property.  On completion of the refinance, the investor would receive 10% of the difference between the original purchase price of the property ($4,850,000.00) and the newly calculated fair market value which we estimate to be between $10MM and $14MM.  The approx. realized profit would be $715,000.00 +/- using a valuation of $12MM. They would also receive their initial investment back of $1,000,000.00.  If the operator chooses not to refinance, they would be required to honor the same stated above terms and fund accordingly from cashflow or other means to honor the terms and timeframe of max 5 years.

Happy to also take smaller investments under this same premise but would be proportional obviously.