Chris Blackburn

We are currently building new construction multi-family apartments in the Willamette Valley, (Salem, Keizer, Aumsville, Stayton, Albany). Our typical model is similar to the BRRRR (Buy/Rehab/Rent/Refi/Repeat), however, our model is BFBRRR. Buy (land), Finance (construction finance), Build, Rent, Refinance (HUD 35 year current 2.7% rates!) and Repeat. We have our team, Clutch Industries, in-house for development and construction. We have liquidity and the balance sheet for the funds required for the project and or have the land in our portfolio. We have the bank connections and support to go from a construction loan to a HUD-approved loan. The repeat part of this model CAN allow for a full return of the investor's (mine or someone else's) capital contribution IF and only IF interest rates stay low. We start with a 70% loan to value construction loan that bridges to a 85% LTV permanent HUD loan (Allowed after %85 occupancy (new rule!). This 15% difference on top of the finished, occupied project is significant in 2 ways. The original loan was only on total construction/land/soft/hard costs at 75%. The new loan is at 85% of the appraised value of a proforma project. So, if the new apartment project has an all-in cost of $10M,(assume 70 units) at 75% LTV, our team needs to come up with $2.5M in value. (We typically own the land and have the entitlements in place and contribute the development fee and potentially some of the GC fee and cash as the 25% required. (Much lower risk). Once the project is built and stabilized, the appraised value (using a 5.25 cap rate), this project is now worth (appraised) at $14M. NOTE... This assumes a sales price per door in our area of about $198,000 for new units and that cap rates are at the 5+/- range. ALL of this hinges on the economy, interest rates and the market. When we go to refinance the project using the new HUD resources. We are given a permanent 35 year term loan, with current rates at 2.5%-3 FIXED, with a LTV cash out refi at 85%. Assuming it appraises at $14M this returns $2,240,000 back to us (or the investors) in about 3 years. AGAIN- this only works in this low interest rate so we do not know how long this will work. (Updated 1-9-2021) OK- about me: Over the 25 years, we have purchased a significant amount of commercial real estate in the Willamette Valley. Our group (various entities) has over 400,000 rentable sq ft of mixed use and commercial space. We have projects in N. Downtown Salem 12 acres, West Salem (4 acres), N. Lancaster Dr (4 acres), Mixed-use in Keizer, residential projects in Neskowin (Viking Estates) and Pacific City (Pacific Sunset). Our development/construction team was built out of necessity. Our first projects were small commercial warehouses and some small commercial remodels. Our Clutch team was built from a well established residential builder. The transition from residential to commercial was thrust upon us with a project that was 10x times larger than anything we have done. Again- out of necessity, our team was able to complete this project in some of the most challenging weather and labor markets in the last 40 years. Projects include The Lodge at Sister, Xicha Brewery, Electric Grange (Lancaster), Pleasantview Apartments, Downtown Storage and Warehouse (Salem). Viking Estates (Neskowin), Pacific Sunset (Pacific City). Also working with the telecommunication industry and now launching Clutch Bowling- www.clutchbowling.com For the last 400 days I have focused about half my time on blockchain, NFT assets and opportunities i this space. (Had almost set up several BTC mines and had tenants who did mine. Currently spending 50% of my work time on BlackHarpe (A digital asset management company) (We focus on IPAs of the space) (Not beer, but income-producing assets) Our company currently is producing a significant income, has real assets and some high level connections in the blockchain space.