Launching Senior Living Project Hawaii

Overview

Funds needed: $130,000

By: Jan 15, 2018

Suggested investment:$15,000-25,000

Payback: June 2018

Payback Source 1: Personal loan pre approved

Payback Source 2: EB-5 green card funding

Purpose: Funding senior living project Hawaii

THE VISION

Creating the foundation for a series of senior living projects with this flagship project that make a difference in senior living nation and world wide by setting a new standard in senior living and saving lives on a large scale.

Project.

Size: 250 Apartment units

Costs: $215 million

Funds invested to date by us: $4,5 million

Location: Heart of Honolulu

Building size: 278,000 sf

This project is highly recognized and endorsed by many professionals in the senior living industry (See some of the endorsement letters in drop box). The concept embarks on the long established CCRC (continuous care retirement community) senior living concept, which means a retirement community in which independent living, assisted living, and skilled nursing are provided on one place. The combination of all three allows for a safe place for seniors as of age 67 until the end of life.

We developed the CLC (continuous lifelong care) concept which is a long needed improvement to the CCRC concept. In short it means a senior moves only once not twice. The second move in the traditional system is the fatal one, as uprooting a senior from assisted living into skilled nursing is a serious threat for a senior in which 30% die.

This highly innovative project saves lives and sets a new standard in senior living nationwide and worldwide

In CCRC senior living, two relocations are needed as care needs increase. The second relocation from assisted living to skilled nursing is the fatal one as seniors on that stage are very vulnerable. The CLC concept eliminates the second relocation by bringing care services through external care to the apartment of the seniors.

Statistically:

• 30% die in relocation from assisted living to skilled nursing.

• a senior receiving skilled nursing care in his/her apartment has as an average life expectancy of 4 years vs 1 year for those being relocated to skilled nursing.

This project helps significantly to establish this concept and will truly save lives

We believe to set the example to improve the lives of many and our intention is that this concept spreads by example and will also be taken over by other providers to improve senior living worldwide.

Industry endorsement

Leading professionals in the industry support this concept. Before starting the project thorough research was done confirming the validity of the timing and approach. It was found that baby boomers have fundamentally higher expectations than the previous generation.

Therefore there are two needs that are not met. For one this coming senior generation is so large that it doubles by 2030. This wave requires a drastic increase of modern senior living places in US. Secondly an improved system that meets the expectations of a new generation with much higher expectations is not established yet.

This is the great timing and opportunity of this project.

Besides the many endorsements received, the project especially received recognition from CARF. CARF is the nation’s number one accreditation firm for CCRC. We challenged their principles and ultimately received recognition that this concept indeed is an improvement. While our concepts are different than their accreditation standards they would still give us full accreditation.

The solution - home healthcare

The solution is the home healthcare aspect bringing care services to the apartment of the assisted living through external care services, versus the senior having to move to a skilled nursing facility. This is the most important key aspect.

For this purpose we initiated the home healthcare operation “Interim” in Waikiki, that is now starting to carry itself. This operation serves the general public but is mainly designed to be able to deliver top care services to our own senior living operation and controlling this important aspect.

The academy is a second most important and unique concept. While senior living places have some sort of education and mental stimulus to keep a senior mentally alert, this project goes significantly further with its academy approach.

Seniors continue to study, become coaches and lecturers and continue in their field of expertise they developed throughout life. A team of coaches is supporting and designing a custom solution for each.

This concepts embarks on the fact that most seniors carry a wealth of knowledge, expertise and wisdom a fact forgotten in today’s world in many cultures. In olden times elders were sought for their knowledge, skills and wisdom. We believe that a double benefit lies in this approach. For one the senior remains active, happy and engaged in a new frame that fits his/her circumstances in retirement best. For two a vast flow of these qualities benefits the comunity. Coaching became a big thing. Who better than a senior to inspire and coach newcomers and entrepreneurs.

In addition we developed the PRH Five Element Model which is currently in the branding and trademarking phase.

CLC and academy are two concepts; the other three are the concept of beauty, concept of wellness and concept of anti aging. (See Dropbox)

Project status

The project has the top team players in place and contractually committed to the project.

Developer, management firm, architecture and construction firm, marketing firm legal counsels are all carefully chosen and are leaders in their field of expertise.

Government EB-5 approval for project is just received (Dropbox)

Government EB-5 approval for small raise is expected to be issued by end of February.

Economic study is confirming creation if 1008 direct and indirect employees.(Dropbox)

Homehealthcare operation is established

+The design of the building and the renderings is our creation that was realized with the help of a architect artist and a rendering artist.

Project financing

Capital stack

Total project costs : $215 million

Debt: $170 million

Equity $45 million

$170 million debt financing is in place

$45 M equity is in serious ongoing discussion with two equity groups.

The equity is being refinanced through EB-5

Sieber investment to date: $4,5 million

EB-5 explained

The project just now received the most important EB-5 government fundraise approval.

EB-5 is a government financing program. Foreign investors qualify for a green card upon investment of $500,000 each. Once the project created 10 jobs for each investor within two years, the investor qualifies for a permanent green card.

The job creation is supported through a economic study that certifies that this project creates 1008 direct and indirect jobs.

This project is qualified for $44 million through EB-5.

Over the last three years the EB-5 government program was in continued renewal process with short extensions which did not make a meaningful fundraise for a project this size possible because th timeframe was not long enough.

This continued uncertainty created a continued set back for the project.

As of February 2018 it is now expected that the renewed program is finally being established with additional favorable advantages for a 1-2 year time period and a continuation of the program again allows for fundraising of such large projects.

The approval we just received is a very important achievement and paired with the renewal of the program key for the financing and success of this project.

During our continued discussions with equity groups, we could develop a equity refinance concept that is highly desirable.

While equity for such a large and unique project is difficult, the combination of equity with refinance through EB-5 is key.

This equity EB-5 refinance structure is a huge advantage that is now finally available for the project.

EB-5 approval meaning

This approval is very meaningful and very valuable!

The government approves this project and the exemplar filing.

This means that foreign investors who want to apply for a Green Card currently have to wait for two years for their approval of their application only. In other words, the investor for two years does not know if his application will be accepted or not.

With a project exemplar approval that we obtained, the investor is certain as of day one that his application will be granted. This creates a very important marketing advantage and the project becomes highly desirable for EB-5 investors.

This project also meets the other two main investment criteria which are realestate and industry. Senior living is hot and the most desired industry to invest to.

This project therefore is highly qualified and desired for investors

Christian’s background

Long time before establishing ourselves I n Hawaii, Christian was a geriatric nurse. At that time he worked passionately for avoiding relocation of seniors. He witnessed the shocking and fatal effect of uprooting a senior from his familiar surroundings. 30% die in the process and those that survive deteriorate unnecessarily fast. Because of this fact he negotiated that in his station seniors could stay much longer, allowing many to die in dignity instead of suffering the results of a shock and giving up.

He later worked passionately and successfully to avoid the shut down of a senior home in Munich that would have had mass relocation and serious deterioration of 180 seniors as a consequence.

This principle he fought for all life and became the key element of this project.

Payback

The funds we are raising now serve the funding time period from January until June of this 250 unit senior living project.

THE REPAYMENT OF THE INVESTMENT IS NOT!!! DEPENDING OF THE SUCCESS OF THIS PROJECT BUT IS DONE THROUGH PERSONAL FINANCING WE QUALIFY FOR IN HAWAII

It is important to use the momentum and moving forward with all aspects of the project. We have this challenging finance situation that causes the need to seek this unusual financing through family and friends, because various family health circumstances required that we spent a larger amount of time outside US. The last two years we traveled excessively back and forth between Europe and Hawaii and while in Europe we spent night shifts to cover hawaii business working times. A change in Visa status was the consequence putting us into a state of limbo until we are back in Hawaii permanent.

We are now in process of returning permanent to US with the type of visa we had all along.

This state of limbo does not allow for such smaller types of bank funding that we usually would qualify for if we were on the former status which is the reason why we seek financing this way

USES OF FUNDS

$35,000 investments into Waikiki operation

• $9,000 Expansion office operation

• $4,000 New hire

• $22,000 Marketing and Sales

$85,000 into project

• $25,000 Legal

• $24,,000 CFO

• $8,000 Travel Asian agent meetings

• $15,000 EB-5 Marketing

• $13,000 overhead

OVERVIEW OF DROP BOX DOCS

Renderings

EB-5 Government approval

Economic study

Team of professionals

Endorsement Susan

Five element model

Project highlights

Pictures of office

7 endorsement letters

DROP BOX LINK

https://www.dropbox.com/sh/banmfixg3ijpq17/AABgKu0...