Who We Are

Realty Fund LA is your access to a diverse portfolio of investments in Los Angeles.

The experts at Realty Fund LA have precise, personal knowledge of properties. They identify a broad range of investments, allowing you and your partners to realize returns once reserved for ultra-wealthy insiders. No other “Syndication” portal allows you to invest in property right here in Southern California — places you can actually touch and visit, as you watch your potential returns grow over time.

Realty Fund L.A. is the syndication portal for savvy Southern California investors to invest in projects managed by West Realty Group, Inc. and Loan Fund LA, LLC.

Why Real Estate

The principals of Realty Fund L.A. want to share two crucial facts about real estate. One: property offers the best rate of return. Two: the Southern California market offers extraordinary opportunities even for ordinary investors. Syndication, allows individuals to invest directly in trust deeds, offices, multifamily buildings, retail property, development opportunities, and other real estate. Most syndicating companies operate on a vast scale through impersonal, online-only platforms, with properties spread across nationwide.

Realty Fund L.A. offers the same investment advantages as these platforms – including IRA and other tax benefits, plus excellent returns – but all of its offerings are local or within a two-hour drive of Los Angeles. Naturally, its principals are based here as well. They have invaluable “on-the- ground” understanding of submarkets and trends. Neighborhood by neighborhood, block by block, door by door, Realty Fund L.A. knows exactly where to invest.

And Realty Fund L.A. is open to certain investments starting around $50,000, giving most individuals access to the best-performing assets with debt and equity investments.

Syndicating outperforms stocks and bonds. Commercial real estate is not just a place to “park” your money. It is a vibrant investment that can produce an income-stream much greater than the average yield of stock dividends. Unlike the uncertainty of stocks, real estate is an asset you can touch and feel.

Real estate gives you the potential to achieve two valuable types of returns: Rental income and equity. Monthly rent pays off building expenses, with the remaining income is distributed to investors like you. And, when the building is sold, equity is distributed back to you along with profits from the sale, creating more lucrative dividends.

The excellent tax advantages are highly flexible. Depending on the deal structure you can deduct both operating losses and depreciation of property. And, through a self-directed IRA, your potential interest only income can be tax-free or tax-deferred.

For more in-depth explanation of how Realty Fund L.A. works for you, FREE online brochure HERE.

Invest

Realty Fund L.A. offers a diverse range of investments. Many of our properties are in growing markets, currently underserved by real estate and offering strong returns.

Opportunities include everything from Trust deed investments, value-add real estate including adaptive re-use, ground-up development, mixed-use properties, to creative office and multifamily buildings.

We now accept Cryto Currency for Investments

20 Units Gardena Ca

Residential Apartments
Closed

$1,550,000 raised

  • Asset ProfileGround-up
  • Minimum Investment25,000
  • Estimated Hold10 Years
  • Target Annual Cash8-10%
  • Target IRR13%
  • Target Equity Multiple2.3

63 Units Gardena Ca

Residential Apartments
Closed

$4,800,000 raised

  • Asset ProfileGround-up
  • Minimum Investment50,000
  • Estimated Hold10 Years
  • Target Annual Cash7-10%
  • Target IRR14-16%
  • Target Equity Multiple2.6X

121 Units Gardena Ca

Residential Apartments
Accepting Investments

Accredited Investors Only

$9,750,000 needed

$3,500,000 raised so far

We now accept Crypto Currency

  • Asset ProfileGround-up
  • Minimum Investment$50,000
  • Estimated Hold10 Years
  • Target Annual Cash8-10%
  • Target IRR15%
  • Target Equity Multiple2x
Invest Now

RFLA eFund I

1st Trust Deed Positions
Accepting Investments

1st and 2nd Trust Deeds-Accredited Investors Only

Interest Only Payments

Up to 80% LTV

  • Asset ProfileCommercial Purpose Asset Based Loans
  • Minimum Investment$50,000
  • Estimated Hold24 month hold
  • Target Annual Cash8-11%
  • Target IRR10%
  • Target Equity Multiple
Invest Now

About Us

Realty Fund L.A. is led by foremost experts committed to the development and investment of exceptional commercial, industrial, residential and mixed-use projects.

Its development team has a proven track record in the acquisition, disposition and development of properties spanning broad price ranges. The principals of Realty Fund L.A. are passionate about their business, with an eye for both valuable investments and places that offer improved lifestyle and an elevated sense of design.

Lee Johnson, Principal

Founder of West Realty Group, Mr. Johnson was the Director of Acquisitions and Director of Sales & Marketing at a Westside development group focused on new urban residential investments and mixed-use developments. He has experience with challenging planning, zoning and building codes, and has cultivated a valuable network of connections with other professionals in all aspects of the real estate and building industry. He has brought together many different investors and partnerships with 100% success in a variety of projects from land acquisition to final building completion, including single- and multi-housing, and mixed-use properties. Mr. Johnson has been involved in the development of over 14 new homes and 15 mixed-use residential and commercial group up projects. Mr. Johnson holds a California Department of Real Estate Brokers License. He has also been featured in numerous articles in magazines and newspapers, including the Los Angeles Times.

Marc Sidoti, Asset Manager

Marc Sidoti is the Chief Operating Officer of RFF Family Partnership, LP a highly successful California based lending company which focuses on short term, commercial hard money loans. RFF currently manages over 300 million dollars of asset based loans and averages a 10% yield.

In the past year, Marc recognized a void in the loan business. He realized he could offer his clients an investment that other firms were unable to provide at the time. Consequently, he formed a new Los Angeles based company, Loan Fund LA, with his partner Lee Johnson, that specializes in securing all types of assets: first trust deeds, second trust deeds, securities financing, receiva ble financing and also precious metal lending. Marc has 15 years of profitable experience in the lending industry. He also has an incredible team to help facilitate one of the quickest commercial loan closing times in the country, averaging 5 days. “Let’s make money together.”

Articles

Contact Us

Realty Fund LA
2216 Main Street, Suite 201
Santa Monica, CA. 90405
www.RealtyFundLA.com
Lee Johnson
(310) 892‐2244
Lee@RealtyFundLA.com
CA Bureau of Real Estate No. 0125992

West Realty Group, Inc CA Bureau of Real Estate – Real Estate Broker License No. 01420429 DBA Realty Fund LA and DBA Loan Fund LA; Loan Fund LA, LLC California Finance Lenders License 60DBO-83962

Resource Center

Glossary

Alternative Investment

An alternative investment refers to any investment which does not qualify as “traditional”. Traditional investments are widely considered to be stocks, bonds and cash.

Active Income

Active income is income earned as a direct result of a specific effort. In other words, input is correlated to output.

Appreciation

An increase in value is referred to as “appreciation”.

Amortization

As opposed to an interest-only loan in which each repayment installment consists only of interest payments with a single lump-sum principal repayment at the end of the loan period, each repayment installment of an amortizing loan consists of both principal and interest.

Accredited Investor

An accredited investor is a term used by the U.S. Securities and Exchange Commission (SEC) under Rule 501 of Regulation D.

Basis Point

A basis point (bps) is a unit that is equal to 1/100th of 1%, in other words one basis point is equal to 0.01%, similarly a 1% change is equal to a 100 basis point change.

Cash-on-Cash Return

Cash-on-cash return is one of the most widely used metrics in commercial real estate. As the name implies, this metric is calculated by dividing annual before tax cash-flow by the total cash invested in a project.

Capital

Capital is any financial asset or the value of an asset.

Crowdfunding

Funding a product, idea, or venture using small amounts of money raised from the “crowd.”

Capitalization (Cap) Rate

The capitalization or cap rate measures a property’s yield in a one-year time frame, making it easy to compare one property’s cash flow to another on an equal basis – without taking into account any debt on the asset.

Common Equity

Common Equity means that investors have one-to-one (or equal) participation in each dollar invested and any potential profits or losses.

DRIP

The Fundrise Dividend Reinvestment Program “DRIP” allows investors to automatically reinvest the dividends they earn from their investments directly back into offerings on the platform. Investors have the ability to choose the offerings into which they would like the dividends reinvested.

Development

Development is the process of building or adding to existing structures to increase the value of a property.

Distributions

Payments made to investors periodically, typically over the course a calendar year, either from profits or interest payments.

Debt

An amount of money (obligation) owed by one party (the debtor) to another party (the creditor).

Equity

As it relates to real estate, equity can be measured as the amount of capital a sponsor (property owner/developer) puts into a property.

Free Cash Flow (FCF)

Free cash flow is a measure of a property’s ability to generate cash after setting aside reserves for capital expenditures such as future development, tenant improvements, and leasing commissions.

Hard Asset

A tangible object of worth that is owned by a business or individual.

Investment Property

An investment property is a real estate asset purchased with the sole purpose of earning income. Income from an investment property can be generated through leasing space within an asset or an eventual sale of the asset.

Intrastate Crowdfunding

While the Securities and Exchange Commission regulates public securities on a national level, each state also has its own regulatory entity serving a similar function. Since the passage of the JOBS Act, advocates of equity crowdfunding have moved to legalize intrastate – or in state – crowdfunding.

Internal Rate of Return (IRR)

In real estate, the Internal Rate of Return (IRR) is a metric used to evaluate the profitability of an investment over its lifetime and is represented as the average annual return percentage. The IRR of an investment can be calculated forward-looking to estimate potential future returns or backward looking to measure the performance of a completed investment.

Jumpstart Our Business Startups (JOBS) Act

The JOBS Act was a law passed in 2012 in the United States that eased regulations related to funding small businesses. Intended to increase American job creation and foster economic growth, the JOBS Act aims to provide easier access to public capital markets and small, growing companies.

Liquidity Premium

The liquidity premium represents the incrementally higher price an investor is willing to pay for a more liquid asset or security, all other factors held equal.

Liquidity

Liquidity refers to the ease with which an asset can be purchased or sold. Marketable securities that are traded in high volume tend to be the most liquid, or easy to trade without creating wild fluctuations in price.

Linear Income

Linear income is earned in direct relation to the number of hours you work.

Loan-to-Value Ratio (LTV)

A risk assessment ratio that lenders perform when considering a real estate loan.

Loan-to-Cost Ratio (LTC)

The Loan-to-Cost Ratio is the ratio of a loan used to help finance a project compared to the total cost.

Mezzanine Debt vs. Preferred Equity

Mezzanine Debt is generally a loan that is secured by a property and senior to any equity, but junior to the senior loan on the property. Preferred Equity, on the other hand, is an equity investment in the property-owning entity. It is not secured by the property but rather by an interest in the entity investing in (or owning) the property.

Net Asset Value (NAV)

The Net Asset Value (NAV) per share represents the estimated value of a single share based on a variety of factors.

Net Operating Income (NOI)

In real estate, the net operating income, or NOI, represents the annual revenue (or income) generated by an investment property after annual operating expenses.

Passive Income

Passive income (also known as residual or recurring income) is commonly used to refer to income that continues to be earned even after the work is done.

Private Equity Fund

A private equity (PE) fund is a collective investment model where money from separate investors is pooled together into a single fund and then used to make investments, most often in various illiquid equity and debt assets.

Preferred Return

A Preferred Return is paid to investors before a sponsor receives any share of the cash flow.

Pro-Forma

A financial model often used in real estate to predict future cash flows and total investment returns.

Preferred Equity

Typically in a Preferred Equity investment, all cash flow or profits are paid back to the preferred investors (after all debt has been repaid) until they receive the agreed upon “preferred return.”

Project Payment Dependent Notes

A Project Payment Dependent Note is a special, limited obligation of Fundrise Investments, LLC sold to investors, the proceeds of which are used to fund corresponding project investments.

Real Estate Investment Trust (REIT)

A REIT (which is pronounced “reet” and stands for Real Estate Investment Trust) is a company which makes investments in and owns income-generating real estate properties.

Recurring Income

Also known as residual or passive income, recurring income is earned by creating or acquiring an asset that continues to pay of profits regardless of if there is still active work being done to the asset.

Residual Income

The term residual income (also known as passive or recurring income) is commonly used to refer to income that continues to be earned even after the work is done.

Regulation D

Regulation D permits raises of unlimited amounts from accredited investors without registering a public sale through the SEC, as it’s assumed that accredited investors are financially able to bear the burden of investment decisions without a review by the SEC.

Regulation A+

Regulation A+ is the SEC’s proposed revision of the current Regulation A, which was mandated by the JOBS Act in 2012.

Regulation A

Regulation A allows unaccredited investors to purchase small offerings of securities that do not exceed $5 million in a 12-month period.

Redemption

In the event of back taxes or unpaid liens, a borrower who pays off those debts may reclaim their property, preventing foreclosure or the auctioning of their property.

Real Estate

Real estate includes a parcel of land and any of its permanent structures (buildings, parking lots, etc.).

Secured vs Unsecured Position

A secured position in the Capital Stack retains the right to foreclose on a property in the event of a default, or non-performance. Unsecured creditors do not have the right to foreclose on the property, and therefore have less collateral backing their investment claim.

Sponsor

An individual or firm in charge of finding, acquiring, and managing a piece of real estate.

Senior Debt

Senior debt generally secured at the “base” of the capital stack. Because it sits at the base of the capital stack, it must be repaid first.

Title III Regulation Crowdfunding

Outlined in the 2012 JOBS Act, Title III instructed the SEC to create an exemption from registration that, when implemented, will enable issuers to engage in crowdfunding equity offerings to the general investing public.

Term

In real estate, the term refers to the lifespan of a given asset or liability. At the end of the term, the loan is or investment is repaid.

The Capital Stack

The Capital Stack orders the seniority of claims to the collateral and cash waterfall of an entity.

Tenancy / Occupancy

Occupancy is generally referred to as a percentage of the total square feet or units leased – it is a building’s revenue source.

Underwriting

Underwriting is the process by which real estate investments are evaluated to determine their viability.

Unaccredited Investor

An investor who does not meet the wealth requirements of an accredited investor set forth by the SEC.

Yield

In the context of commercial real estate, yield refers to the annual cash return on the investment, expressed as a percentage of the investment’s initial cost, or less frequently, its estimated current value.

FAQ

What is RealtyFundLA?

RealtyFundLA is the crowdfunding portal for savvy Southern California investors. Realty Fund LA offers an online investment platform for commercial real estate, giving investors the ability to:

  • Browse investment offerings based on investment preferences including location, asset type, risk and return profile;
  • Transact entirely online, including digital legal documentation, funds transfer, and ownership recordation;
  • Manage and track investments easily through an online portfolio; receive automated distributions and/or interest payments, and regular financial reporting.

How do I get started as an investor on RealtyFundLA?

You can get started as an investor on RealtyFundLA by joining the site.

The investment and checkout process is conducted online. You will be prompted to provide or verify any required information, as well as to make any required acknowledgments electronically.

What is an accredited investor?

An accredited investor is a term used by the U.S. Securities and Exchange Commission (SEC) under Rule 501 of Regulation D. In order to qualify as accredited, an investor must accomplish at least one of the following:

  • Earn an individual income of more than $200,000 per year, or a joint spousal income of more than $300,000 per year, in each of the last two years and expect to reasonably maintain the same level of income.
  • Have a net worth exceeding $1 million, either individually or jointly with his or her spouse.
  • Be a bank, insurance company, registered investment company, business development company, or small business investment company.
  • Be a general partner, executive officer, director or a related combination thereof for the issuer of a security being offered.
  • Be a business in which all the equity owners are accredited investors.
  • Be an employee benefit plan, a trust, charitable organization, partnership, or company with total assets in excess of $5 million.

How do I show I am an accredited investor?

Prior to getting approval to invest in a private offering on RealtyFundLA, you will be required to show that you qualify as an accredited investor.

There are many methods to qualify as an accredited investor, including providing supporting documentation of your assets or income, providing a letter from a licensed professional certifying your status as an accredited investor, or allowing third-party vendors to verify your status as an accredited investor.

In some instances, a detailed bio stating your source of wealth, employment history, and income may also suffice.

For trusts, LLCs and other entities, we are required to collect the relevant legal agreements to ensure you are legally permitted to direct investments.

To upload this information in advance, please go to the top right hand corner of your screen under your name, and select “settings.” This should bring you to the “Investment Accounts” section. Click on the appropriate account for which you want to upload your letter, W2, bank account statement, trust document, or operating agreement. Scroll down to “Accreditation Status” and click “edit”. At the bottom of this page you can click “choose file” and upload your form here.

For additional information about individual and entity accreditation requirements, please see the SEC website to review their guidelines (http://www.investor.gov/news-alerts/investor-bulletins/investor-bulletin-accredited-investors) or reach out to contact@RealtyFundLA.com.

What are the terms of a RealtyFundLA investment?

The terms of each investment on RealtyFundLA are specific to that listing. Prospective investors should review in detail the offering documents provided for each investment opportunity.

Does RealtyFundLA have a minimum investment?

Minimums may vary for individual private placements.

How will I be updated on the progress of my investment?

The RealtyFundLA platform provides direct communication with investors, including the posting of ongoing reporting and updates on the status of a project, as well as the delivery of tax filing and other relevant materials directly to investors.

When can I expect a return on my investment and how will it be distributed?

Projected returns and distributions, as well as a timetable for milestones and a distribution schedule, are specific to each listing and, when available, are noted in the offering documents for that investment.

What is the difference between “current” and “total” return?

In many cases, a portion of the return may get paid current (quarterly) and another portion might accrue until the end of the life of the investment, when it is scheduled to be paid out in a lump sum along with the principal. The current return represents the cash distributed to investors throughout the life of the Note, on a quarterly basis.

What are the tax implications of investing on RealtyFundLA?

Tax implications may vary according to investment. Generally, investors can expect to receive a 1099 for a majority of investments on the platform. However, investors should consult their independent tax advisor for specific questions regarding tax treatment.

What documents will I receive as an investor?

After an investment has closed, investors can track its performance in their RealtyFundLA Portfolio [link here] Within the portfolio, investors will find all the relevant deal documents, as well as receive updates, distributions, and tax documents.

As long as you are an investor, we will send you a Form 1099 or a Form K-1, as appropriate, by approximately mid-March of the following tax year.

What is a K-1?

Similar to a 1099, a Form K-1 is an accounting of the tax income for the year. Each investor receives one per investment. Form K-1s are most commonly used in partnerships and in real estate ownership.

What happens if there is more interest in investment in a project than funding needed?

Investments are usually closed on a first-come, first-served basis; although RealtyFundLA reserves the right to reject any particular investment. Once the total listing amount is reached, the listing is closed.

Can I invest through my IRA?

Yes, We accept IRA investments in certain projects.

May I sell my Position?

Yes, all invested positions can be sold subject to the terms and conditions within each offering

Where are your projects located?

All RealtyFundLA investments are located in Los Angeles, or within a two-hour drive of Los Angeles.

Do you fund international projects?

We do not list international investments at this time.

Do you allow international investors?

International investors may currently invest through US-based entities. Please contact us for more information.

What is your investment strategy?

While each RealtyFundLA investment has a unique investment strategy, our broader investment goal is to identify high-quality opportunities with superior risk-adjusted returns.

How often should investors expect to receive distributions?

Investors are expected to receive distributions quarterly; however, distributions may be more or less frequent depending on market conditions.

Why do you need my Social Security number and date of birth?

Investments sold through the RealtyFundLA platform are real investments. All income must be reported to the Internal Revenue Service. As a result, we are required to obtain your social security number and date of birth.

Disclosure

Past performance is no guarantee of future results and may not reflect potential deductions for fees which may reduce actual realized returns. Any historical returns may not reflect actual future performance and any investor on RealtyFundLA may experience different results from those shown.

This overview does not constitute an offer to sell or a solicitation of an offer to make an investment (the “Investment”) herein. No such offer or solicitation will be made prior to the delivery of definitive documentation relating to the matters herein. Before making an investment decision with respect to the Investment, potential investors are advised to carefully read the related subscription and investment documents (the “Documents”). Further, potential investors are advised to consult with their tax, legal and financial advisors.