|1||Grown from $850K in seed capital to $10.2M in assets (through subsidiaries) —all without debt.|
|2||Company subsidiaries have $57M in projects under development, featured in Forbes, Entrepreneur and BiggerPockets.|
|3||Co-founder is a bonafide soccer star for FC Barcelona with over 500,000 followers on Instagram.|
|4||Founded by bestselling author, award-winning entrepreneurs, and a World Cup/FC Barcelona star.|
|5||Just began construction on 1st AI-powered smart tech building in Philadelphia, as seen in Forbes.|
|6||C-level and all-star advisory board of award-winning real estate professionals and Forbes 30 under 30 alumni.|
|7||NYCE zoning lawyer is behind approvals for 85% of Jersey City skyline projects.|
|8||At just $500, you'll have the opportunity to own part of NYCE Companies, Inc., which owns the subsidiaries purchasing the buildings.|
Millennials of color—women in particular—have been dealt one of the worst hand in recent history, creating a $923.6B wealth gap that will take 228 years to close.
The main driver behind this wealth inequality is the fact that Millennial minorities don’t own real estate.
We want to help ERASE this troubling trend. According to Duke University, real estate/home ownership would narrow the racial wealth gap by 31%.
Our goal is to bring on over 100,000 Millennial moguls to co-own the real estate with us and collectively build generational wealth.
On the operational side, our actual real estate is the sh*t. Excellent locations, phenomenal value appreciation and the newest technology.
On the money side alone, your investment is collateralized against the actual real estate projects—stuff you can see and feel. Not just an idea, based on trends.
At the current growth rate, we hope to clear $100M in net asset value in the next 18-24 months. But more importantly than all that.
Since launching in Nov. 2017 with $850K, our portfolio has grown to $10.2M—all from seed capital, without financing.
Once built, our AI-powered developments have a projected $57M value. And that doesn’t include future deals.
Our team consists of award-winning entrepreneurs, a Forbes 30 under 30 alum, and an all-star advisory board with billions in real estate owned and developed.
Very simple. In order to own assets like these, high-profiled startups and more, you have to be what’s called an “accredited investor.”
TRANSLATION: You must be worth $1 million or make $200k a year. The average Millennial is worth $8,000 on average.
Because of the JOBS Act and Wefunder, we can OPEN UP access to real estate ownership, right here on these pages. And it will allow us to fulfill our mission to create 100K Millennial moguls.
Excellent question. For the first $1.07M ($50M total offering), you get in at a $25M valuation cap—well below the $57M value of our active projects. 💰
The first $250K of this offering will receive a 20% discount on the SAFE. We also intend to offer each investor an 8% annual return, compounded every year.
In other words, at just $500, you'll have the opportunity to own a piece of both past, present AND future buildings—and the technology.
(And you can say you've invested with a FC Barcelona World Cup soccer superstar! 😉)
Yes, the real estate is great. But you’re really investing in a mission.
By teaming up with 100K—or more—investors, we have created a new group of wealth-builders vs. spenders—and that's how we put a dent in the US wealth gap.
By joining us in our mission, YOU have actively made a decision to put a stop to this widening wealth gap. You’ve made a decision to create the foundation for generational wealth.
So come join us. And let's do some epic ish. 🥳
NYCE has financial statements ending March 27 2020. Our cash in hand is $0, as of February 2020. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $0/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
NYCE Companies, Inc. is not an investment company, but rather a fintech company that owns, manages and operates real estate properties. We own, develop and operate tech-powered apartment buildings in NYC Metro, Philadelphia and Washington DC. Our current projects include the first smart tech building in Jersey City, an AI-powered co-living building by Temple University, and the first minority-owned high rise in Jersey City. All investments in this campaign will go towards the operations of NYCE Companies, Inc. NYCE Companies, Inc. owns wholly owns the subsidiaries that hold each piece of real estate.
NYCE Companies, Inc. was incorporated in the State of Delaware in January 2020.
Since then, we have:
Historical Results of Operations
Our company was organized in January 2020 and has limited operations upon which prospective investors may base an evaluation of its performance.
Liquidity & Capital Resources
The founders have contributed $850k in seed funding to the subsidiaries of NYCE Companies, Inc., which has been used to fund development projects thus far.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 6 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 6 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
NYCE Companies, Inc.'s cash on hand is $0 as of February 2020. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $0/month, for an average burn rate of $0 per month. Our intent is to be profitable in 12 months.
Our current revenues are from one tenant. We only have one tenant right now as we're in the process of constructing a brand-new building. Once the construction is complete, we expect to lease out the building around November 2020, at which point we expect (although cannot guarantee) that it'll generate about $140k of income annually. That'll be the first brand-new multi-unit property we rent out. We also plan to develop and rent out another property by Summer 2021. That property is approximately 4x the size of our under-construction building, so we estimate it'll generate a lot more revenue. Our costs to rent out are about 20% of the revenue.
Investing in real estate involves risks including the potential loss of principal. A real estate portfolio is subject to risks similar to those associated with the direct ownership of real estate, as the investments are sensitive to factors such as changes to real estate values and property taxes, interest rates, cash flow of underlying real estate assets, supply and demand, and the management skill and credit worthiness of the issuer. Portfolios concentrated in real estate assets may experience price volatility and other risks associated with non-diversification.
Investors should make their own investigations and evaluations of the investment offered hereby. Each prospective Investor should consult its own attorneys, business advisers and tax advisers as to legal, business, tax and related matters concerning this offering, including those arising under the United States Internal Revenue Code of 1986, as amended (the "Code"). Investors should have the financial ability and willingness to accept the risks associated with an investment in the Offering.
Investors should bear in mind that past performance is not necessarily indicative of future results and there can be no assurance that the Company will achieve results comparable with its past performance or results comparable with the performance of other companies managed by the manager. There is no public market for the Securities and no such market is expected to develop in the future.
General Risks. The Offering will be subject to risks incident to the ownership of real estate, including: changes in general economic or local conditions that reduce the attractiveness of the Company's properties; fluctuation in occupancy rates, operating expenses and rental schedules; costs associated with the need to periodically repair, renovate, and re-lease space; withdrawal of residents and difficulty replacing residents; resident defaults; changes in supply or demand of competing properties in an area, such as an excess supply resulting from over-building; changes in interest rates, zoning and other governmental regulations and availability of permanent mortgage funds that may render the sale of a property difficult or unattractive; increases in maintenance, insurance and other operating costs, including real estate taxes, associated with one or more properties, which may occur as other circumstances such as market factors and competition cause a reduction in revenues from such properties; inflation; changes in tax laws and rates.
Zoning and Environmental Laws. Governmental zoning and land use regulations may exist or be promulgated that could have the effect of restricting or curtailing certain uses of existing structures or requiring that such structures be renovated or altered in some fashion. Such regulations could adversely affect the value of any of the Company’s properties. In recent years, the value of real estate has also sometimes been adversely affected by the presence of hazardous substances or toxic waste on, under, or in the environs of the real estate. A substance (or the amount of a substance) may be considered safe at the time the real estate is purchased but later classified by law as hazardous. Under environmental laws, owners of properties have been liable for substantial expenses to remedy chemical contamination of soil and groundwater at their real estate even if the contamination predated their ownership. Although the Company will exercise reasonable efforts to assure that no real estate is acquired that gives rise to such liabilities, environmental contamination cannot always be detected through readily available means, and the possibility of such liability cannot be excluded.
Risk of Uninsured Losses. While the Company intends to carry customary comprehensive liability and casualty insurance, certain disaster insurance (such as earthquake, wind and flood insurance) may not be available or may be available only at prohibitive cost. In addition, losses may exceed insurance policy limits, and policies may contain exclusions with respect to various types of losses or other matters. Consequently, all or a portion of the Company’s properties may not be covered by disaster insurance, and insurance may not cover all losses. Manager, in Manager’s discretion, shall have the right to elect not to purchase certain coverages for certain risks and/or assets and elect the Company to self-insure if in Manager’s discretion, it is determined that coverage cannot be obtained on commercially reasonable terms.
The Offering, the information thereon and the documents to which the Offering refers may contain statements that are forward looking, as defined by the Private Securities Litigation Reform Act of 1995 or within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
These statements include, but are not limited to, discussions related to NYCE Companies, Inc.’s expectations regarding the performance of its business, liquidity and capital resources and the other non-historical statements in the discussion and analysis.
These forward-looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. The words “believe,” “anticipate,” “estimate,” “expect,” “intend” and similar expressions may identify forward-looking statements. Past performance is not indicative nor a guarantee of future returns.
Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct and actual results may differ materially from expected results.
All forward-looking statements involve risks and uncertainties. The occurrence of the events described, and the achievement of the expected results, depend on many events, some or all of which are not predictable or within our control.
In addition, important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include risks relating to our dependence on certain key personnel, our ability to raise new private equity, capital markets or real assets funds, market conditions generally, our ability to manage our growth, business performance, changes in our regulatory environment and tax status, the variability of our revenues, net income and cash flow, our use of leverage to finance our businesses and investments by our funds and litigation risks, among others.
We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.
The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
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