red oak capital Fund VI
Red Oak Capital Fund VI, LLC is offering* $40 million in Series A preferred membership units that are structured to accept taxable investments. The investment horizon is four years with liquidity starting in year three. The bonds are priced at $1,000 per unit with a minimum purchase of 30 units. The evergreen vehicle is targeting preferred returns of 9.5%, to be paid on a quarterly basis.
*Seeking additional $35,000,000 in bond offerings
OFFERING SIZE TARGET:
CRE BRIDGE LENDING
|Preferred Offering Amount (Taxable Accounts Only)||$40 million*|
|Preferred Returns||- 8% Annualized Payment (Paid Quarterly)
- 1.5% Paid February 15th for the preceding year**
|Term||Evergreen | Liquidity Starting Year 4|
|Managing Member Commitment||Minimum of $1.5 million of the total equity in the fund|
|Unit Price||$1,000 (Broker Dealer)
$947.50 (Fee Based/RIA)
|Trade Date||Monthly on the 20th of every month; exceptions for holidays/weekends|
|Schedule of Distribution||Payable quarterly in arrears: January 25, April 25, July 25 and October 25|
|Management Fee||1% of undeployed capital and principal amount of all loans.|
|Reporting||Quarterly Snapshots, Biannual Financials, Annual Audits|
*See additional $35 million in Bond Offering
**Must be unit holder of record at 12/31 to be paid
Preferred returns are cumulative, but non-compounded
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An investment in the Preferred Series A Units (the “Units”) of Red Oak Capital Fund VI, LLC (the ”Company”) is considered speculative. There are no guarantees of distributions or returns. Investors may lose all or part of their investment. There are various risks related to an investment in the Units which are described in the respective offering circular. These risks include, but are not limited to:
The Units may not be suitable for certain investors.
The Units will be highly illiquid, no trading market exists or will ever develop. The Units are suitable for investors who have no need for liquidity in this investment.
The offering is a “Best Efforts” offering, and if the Company is unable to raise substantial capital, the Company may be limited in the number and types of investments it is able to make, which could have a negative effect on diversiﬁcation and investment results.
The Company is recently formed with no operating history and no assurance of success.
Success is dependent on the performance of Red Oak Capital GP, LLC (the “GP”), which is the sole member of the Company, as well as individuals that are employees of the GP. The Company depends on key personnel and its affiliates, the loss of any of whom could be detrimental to the Company’s business.
The Company will pay substantial fees and expenses to the GP or its affiliates and broker-dealers. These fees will increase Investors’ risk of loss.
The Company is a blind pool offering. Investors will not have an opportunity to evaluate investments before they are made.
The Company will be subject to conflicts of interest arising out of relationships among Red Oak Capital, the GP, and their affiliates and employees.
Real estate-related investments, including joint ventures, senior leverage and real estate-related securities, involve substantial risks.
There are substantial risks associated with making loans secured by real estate, and real estate investments may involve additional risks. Commercial real estate related investments that are secured by real property are subject to delinquency, foreclosure and loss which could negatively impact investors. The ability of a borrower to repay a loan secured by income producing property is dependent on the successful operation of the property.
Economic, market and regulatory changes that impact the real estate market generally may decrease the value of the Company’s investments and weaken operating results. Properties that have vacancies could be difficult to sell, which could negatively impact investors.
The Company will likely obtain debt ﬁnancing, which may increase costs, and may limit the Company’s ability to pay interest and or principal to investors.
The Company indirectly depends on tenants in properties securing its loans for revenue; therefore, non-renewals, lease terminations, or lease defaults could reduce revenue and limit the Company’s ability to pay to pay interest or principal to investors.
These securities may not be sold nor may offers to buy be accepted prior to the time the company’s offering statement is qualiﬁed. This document shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful.
No money or other consideration is being solicited in connection this document, and if sent in response, will not be accepted. No offer to buy the securities can be accepted and no part of the purchase price can be received until the offering statement on Form 1-A is qualiﬁed pursuant to Regulation A of the Securities Act of 1933, as amended, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of its acceptance given after the qualiﬁcation date. Any person’s indication of interest involves no obligation or commitment of any kind.
The information contained herein is proprietary to Red Oak Capital Group, LLC (“Red Oak Capital”) and any unauthorized reproduction is strictly prohibited.
NO OFFER OR SOLICITATION: The material herein does not constitute an offer to sell nor is it a solicitation of an offer to purchase any security. Offers will only be made through an offering circular and where permitted by law. Investments in any security are not suitable for all investors.
Investments in securities involve a high degree of risk and should only be considered by investors who can withstand the loss of their investment. Prospective investors should carefully review the “Risk Factors” section of which is ﬁled with the United States Securities & Exchange Commission (the “SEC”). Investors should perform their own investigations before considering any investment and consult with their own legal and tax advisors.
Certain statements contained in this Presentation may constitute “forward looking statements”. Any such statements, performance projections and results have been based upon assumptions, some of which will vary, perhaps materially, from actual events and do not constitute a prediction or representation as to actual performance. The projections and results are purely hypothetical and for illustration purposes only. Nothing contained herein has been reviewed by nor endorsed by the SEC or any other regulatory agency or trade organization.
Prior performance of Red Oak Capital or any of its affiliates is not indicative of future results for Red Oak Capital Fund VI, LLC. There is no assurance that future investments will achieve comparable results. Alternative investment performance can be volatile and real estate-related investments may involve additional risks. An investor could lose all or a substantial amount of their investment. There is no assurance that the Company objectives will be achieved.
The offering statement of the company and the most recent offering circular can be found at:
Securities are offered through Crescent Securities Group, Inc., member FINRA/SIPC, 4975 Preston Park Blvd., Suite 820, Plano TX 75093