Valley Villas Real Estate Investment Offering On RealtyMogul

The real estate investment platform RealtyMogul launched a new construction project in Los Angeles County.

The Valley Villas is a 58-unit project consisting of two- and three-story single-family attached homes in the San Fernando Valley. With two phases of construction beginning in the third quarter of 2022, plans call for selling the property following project stabilization at the end of the projected 20-month holding period.

The project currently has little to no competition in the valley, with no actively selling new townhome competitors in the area. California, and specifically Los Angeles County, is in the midst of a housing shortage crisis. According to Up For Growth’s 2022 Housing Underproduction in the US report, LA County has a 389,000-unit shortage — the greatest deficit of any metropolitan area in the country. Once the project is completed, finding tenets should not be an issue for the owners.

The projected total cost of the project is $31.3 million with a target net profit after preferred return of $4.3.

  • Minimum investment: $35,000
  • Target internal rate of return (IRR): 26.7%
  • Target equity multiple: 1.36x
  • Target investment term: 20 months

View details on RealtyMogul’s current offerings

The owner and developer of the project is Williams Homes whose primary focus is the development and sale of single-family attached and detached homes in California, Texas, Idaho and Montana. The firm has a strong track record over the course of its 26 years in business. Williams has built and sold over 2,500 homes with a value of nearly $1.4 billion while returning an average annualized return of 22% to investors.

The developer’s recent track record includes delivering 398 homes for nearly $300 million in revenue in 2021. Williams Homes has 3,300 homes with a completed value of $2.2 billion under construction and management.