All Forum Posts by: Ryan Thomas

True, creatives usually go through a rough process to become great and actually earn income. RYSE Creative Village is geared towards the content production companies that produce the work of creatives. We sign leases for office space for the writers, producers, directors and make available to them the green screen room, the sound stage with lights and cameras for them to produce their content. Think of the company behind the Hustle and Flow movie, we’ll house them in our office and coworking space, cater their shoots from our kitchen, and offer them spaces within to film and edit. Our historic Atlanta location will offer an Authentic backdrop to their off site filming locations, and our community of creatives will offer them an abundance of networking opportunities to further monetize their content into gaming, VR and AR, marketing and branding, culinary and live arts experiences, and many more. And at each step we’ll increase our operating income. 

Thanks Azeez. Tax credits are definitely tricky, we have some great consultants at the tax consulting firm Ryan, our law firm of Thompson Hine is experienced as well. We lean on them to walk us through the process, keeping up with zoning deadlines is hard enough.

Thanks Bill!

Thanks, still a long way to go!

Investment Info:

Other commercial investment investment in Atlanta.

Purchase price: $485,000
Cash invested: $2,500,000

A 40,000 sq. ft. all-inclusive production playground for the creative mind. RCV will include multiple production studios for film, music and photography. It will also include a screening theater, editing suites, meeting/lecture spaces, a cafe and a creative co-working space, all spread across a 4+ acre campus.

RYSECreativeVillage.com

What made you interested in investing in this type of deal?

Content is King! I saw this project as the ultimate opportunity to build and operate the facilities that are needed to create content in a city that is making its mark in the content industry and that is geared towards the demographic that wields the most influence in content, and is yet underserved.

How did you find this deal and how did you negotiate it?

Our team found this former Atlanta Public School for sale and negotiated with the school board for two years to acquire the campus for $485,000. Our plans to turn the property into a campus dedicated to housing and incubating content creators won emphatic support from the board and our ability to close ultimately secured the title to the property for our team.

How did you finance this deal?

We financed the acquisition with cash equity and private lenders. For the redevelopment, we have received an allocation of New Market Tax Credits totaling $7.5m.

How did you add value to the deal?

We are redeveloping the property into a content production studio and multi family housing.

What was the outcome?

In progress, stay posted for updates.

Lessons learned? Challenges?

Some notes from our journey so far:

NMTC market is constantly changing, one day the credits are worth $2m and the next it’s “only” $1.5m. It’s still free money in the long run so we’re forever grateful.

Zoning takes a lot longer and costs more than you budgeted for. Double check and add for good measure the time and money devoted to zoning in your plan.

Getting people to invest in Black Developers is an art form. I don’t know how to paint, and I can’t tell when it’s dry.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes! Ryan is our tax consultant. Working with Urban Development Fund on the NMTCs, Thompson Hine is our law firm, Urban Oasis Development provides development strategy, Studio H is our architect, Stream is our landlord broker.

Here's my advice, some I've done myself, some I've watched others do successfully. None of it is hard, it just all takes time. Remember, real estate is a marathon, not a sprint!

1. Look into naca.com they lend based on payment history, 2 years of on time payments, and not credit score. They don't require a down payment or closing costs and you can buy down your interest rate to 0%. Find a fourplex in your area that needs work and use this program to buy it and fix it up. Live in one unit and rent out the rest. Stay in for a year, refinance and cash out, repeat the cycle.

2. Find a 5 bedroom house to rent, take the smallest bedroom or even turn the garage into your bedroom, rent out the rest of the rooms offering an all inclusive service that includes utilities, cable/internet, and weekly common area cleanings. Mark up the rent a little so you make some extra money and should live there rent free. Stack your money and do it again until you have a nice little portfolio, then buy something. 

3. Become a bird dog, go and hunt for deals for people who have the credit and capital to pay for them, charge them a finders fee or wholesale to them. Investors hate knocking on doors, get good at this and its easy to find deals that you make $15k on just for introducing two people

4. Find a deal and crowdfund for the money. There's 7 billion potential investors for your deal in the world, someone wants what you have to sell. Research successful campaigns and learn what you need to offer to attract investors. 

Pick one strategy and stick with it. Its going to take some time to see some traction but stick with it. Anybody can do real estate and it doesn't matter how much money you have or what your credit score is. All that matters is how bad do you want it? And whatever you do, don't take shortcuts! Real estate is easy if you put in the work to learn the game, the minute you take your eye off the ball is when the banks come in and take away all your hard earned equity. Take your time, learn the steps, and trust the process!

Investment Info:

Other commercial investment investment in New Orleans.

Purchase price: $522,250
Cash invested: $233,200

14 boutique style hotel rooms, bar and restaurant, Live Performance Venue, Pool and Gift shop. Invest in our crowdfunding campaign from $100! Visit our website to learn all the details www.dewdropnola.com

What made you interested in investing in this type of deal?

Originally, I was simply looking for a building I could operate Airbnb units in. I accidentally found this old historic hotel driving down the same street I've drove over the past 2 years. I immediately fell in love! It had everything I was looking for, could be zoned as a hotel, qualifies for Historic Tax Credits, has lots of history, and room for 14 airbnb units! Not to mention it was big, beat up, and in terrible shape!

How did you find this deal and how did you negotiate it?

After passing by it one day, I went home and googled everything I could about it. From the stories of Ray Charles "seeing" people outside, to Little Richard playing Tutti Frutti for the very first time, this place has history! After initially seeing it, I found it in the MLS a month later and put in an offer.

How did you finance this deal?

Bridge financing from The Tulsa Real Estate Fund and Crowdfunding for the Equity portion

How did you add value to the deal?

We are implementing a $2,600,000 redevelopment plan to modernize the property and set it up for future generations.

What was the outcome?

In progress

Lessons learned? Challenges?

Never give up no matter how tough the obstacles may seem.