We acquire small apartment buildings across Los Angeles, renovate them, and sell each unit individually as an attainable home. The building is bought at its value as a rental. The finished homes are worth more. That gap, disciplined at purchase, is the return.
This document has been prepared by Conscious Communities Real Estate solely to provide preliminary information to a limited number of qualified parties who may be interested in the investment program described here. It is confidential, is intended only for the recipient, and may not be reproduced or distributed without written consent.
This document is not an offer to sell or a solicitation of an offer to buy any security, and it is not investment, legal, or tax advice. Any offer, if made, would be made only through definitive offering documents and only to eligible investors in compliance with applicable law. Nothing here should be relied upon as a promise or representation of future results.
The figures in this document are projections and illustrative models based on market data believed to be reliable as of July 2026. They are estimates. Actual acquisitions, costs, timelines, sale prices, and returns will vary, and may vary materially. Real estate investment involves risk, including the possible loss of principal. Forward looking statements are subject to assumptions that may prove incorrect. Each recipient should conduct an independent investigation and consult its own advisors before making any decision.
Certain deal level terms noted in this document are marked as not yet set and are shown as placeholders for discussion.
Los Angeles has a shortage of homes people can actually afford to buy, and a large supply of small, older apartment buildings. Our strategy connects the two. We purchase a 2 to 4 unit building at its value as a rental property, renovate it to a condo level finish, and re-sell each unit individually to a homebuyer as a tenancy in common. Sold one at a time to owner occupants, the units are worth substantially more than the building was worth as a rental. That difference, after renovation and every selling cost, is our profit.
A fourplex in Silver Lake and Atwater, priced as a rental
Re-sold as four individual homes
After every renovation, financing, and selling cost
The model building is 3,400 square feet, larger than the neighborhood median of about 2,730 square feet. A median size fourplex bought at the same price would return about 28 percent net rather than 54 percent.
The ask. We are raising capital to acquire and convert a pipeline of 2 to 4 unit Los Angeles properties. Each deal is self contained and short cycle (about six months), and every property is purchased for less than the combined value of its individual homes, so an investor position is secured by real estate bought at a discount, not by projections alone. Target investor economics are set out in The Offering.
In our base case, six of our eight model deals clear our 15 percent net margin bar and two are close enough to negotiate. That base case rests on an assumption: because we renovate to condo quality, we price each finished home at the value of comparable condos, with no discount for TIC ownership. Our own matched comparison of recent Los Angeles TIC sales found TIC homes selling about 8.5% below comparable condos, so we test every deal at 5% and 10% discounts as well. At a 10% discount, four of the eight still clear 15 percent. We buy only at or below a target price set for each building.
Small apartment buildings are priced on the rent they collect. Homes are priced on what nearby homes sell for. In Los Angeles those two numbers have drifted far apart, and that distance is the whole opportunity.
The entire business rests on one durable gap in how real estate is valued, and on the discipline to buy only where that gap is wide.
A buyer of a fourplex is an investor who pays based on the rent it collects. The more units a small building has, the less each one rents for relative to its size, so the price per square foot actually falls as unit count rises. In Los Angeles a duplex trades near $450 per square foot, a triplex near $380, and a fourplex near $320.
A buyer of a single home is a family who pays based on comparable homes nearby, not on rent. Comparable Los Angeles condos sell near $705 per square foot regardless of the building they sit in. Because we renovate every unit to a condo level finish, our base case prices each finished home at that condo value. That is an assumption, not a measured result: our matched comparison of recent Los Angeles TIC sales found TIC homes selling about 8.5% below comparable condos, so we also test every deal at 5% and 10% below condo value. When we sell each unit as its own home, it re-prices from the low rental number toward that home number.
What we pay per square foot (navy bars) falls as units rise. What each home re-sells for in our base case (brass line) stays high. The gap is the opportunity.
The key point. Because the per square foot buy price falls as you add units, while the per home resale price stays high, the profit grows with every unit, up to four. A fourplex is the sweet spot: the most units we can convert while keeping the process simple and fast, and selling four homes keeps each project under the state threshold that would otherwise trigger a longer public report process.
The opportunity exists only where rental values sit well below home values, and the gap has to be wide enough to pay for a condo quality renovation. We rank every neighborhood by that gap, then test it with a full model deal at a real purchase price. Where a neighborhood has a model deal, the verdict is that deal's grade, because discipline about where, and at what price, is the single biggest driver of returns.
| Neighborhood | Buy $/sf | Home $/sf | Gap | Verdict |
|---|---|---|---|---|
| Central and Eastside: the core of our pipeline | ||||
| Jefferson Park and West Adams | $347 | $603 | 1.74x | Pursue |
| East Hollywood | $478 | $772 | 1.61x | Pursue |
| Mid-City and Arlington Heights | $455 | $681 | 1.50x | Pursue |
| Atwater and Silver Lake | $539 | $792 | 1.47x | Pursue |
| Echo Park | $541 | $819 | 1.51x | Pursue |
| Highland Park | $588 | $639 | 1.09x | Pass |
| Westside: selective, and only at the right price | ||||
| Palms | $613 | $717 | 1.17x | Pursue |
| Beverlywood and Pico-Robertson | $513 | $711 | 1.39x | Negotiate |
| Venice | $764 | $1,005 | 1.32x | Negotiate |
| West LA and Sawtelle | $1,041 | $740 | 0.71x | Pass |
| Westwood | $875 | $765 | 0.87x | Pass |
Home price per square foot here is the comparable condo value. Our base case assumes finished homes sell at that value, with no TIC discount; we stress every deal at 5% and 10% below it. Verdicts are the base case grade of our model deal in that neighborhood: Pursue at a 15 percent net margin or better, Negotiate from 5 to 15 percent, Pass under 5 percent. Under the 10% stress, the Jefferson Park and West Adams and the Echo Park model deals fall to Negotiate, and the Beverlywood and Venice deals fall to Pass. Highland Park, West LA and Sawtelle, and Westwood pass on the gap alone: the apartment building is already priced close to or above home value, so the market has left no room to profit.
Our buy box. Los Angeles County, 2 to 4 units, up to $4 million, with the core of the strategy under $2 million where the spread is widest and the buyer pool deepest. Above $2 million we underwrite selectively, and only on a value entry acquisition: a building priced well below its submarket multifamily norm, at or under the target price our model sets for that specific building, favoring larger buildings in strong exit eastside and central neighborhoods. The return is manufactured by buying right, not by paying market and hoping.
Higher band deals are taken only on a below market entry, at or under each building's own target price. Culver City and premium coast submarkets, where multifamily is bid up relative to the condo exit, are avoided.
The mechanism that turns a rental building into individual homes is the tenancy in common, a well established and financeable form of ownership. It is what lets us capture the pricing gap without a long city subdivision process.
A tenancy in common, or TIC, is a common way for several buyers to co-own one property while each holds the exclusive right to their own home.
In a tenancy in common, several buyers co-own one property, and a written agreement gives each owner the exclusive right to live in and control their own unit: their own home, their own front door, their own equity. It works like a condominium from the buyer point of view, but it does not require the long, expensive city subdivision process a condo conversion does.
Each buyer gets their own mortgage on their own share, so they build equity and pay it down like any homeowner. TIC homes are a common, financeable way for people to buy into neighborhoods they otherwise could not afford.
A renovated TIC home lets a buyer own, instead of rent, in a strong Los Angeles neighborhood, often for a monthly cost close to what they were already paying in rent. For first time buyers priced out of single family homes and condos, it is frequently the only path into ownership.
That real, unmet demand is what gives our finished homes a deep buyer pool and keeps them selling.
Buy it as a rental. Sell it as homes. We acquire a small building at the price an investor pays for its rent, then convert and sell each unit at the price a family pays for a home. Because the buy price per square foot falls as units rise while the home resale price stays high, the fourplex is the sweet spot: it throws the most profit while staying under the state five interest threshold that would trigger a longer public report process. Two unit deals earn less, in dollars and in margin, but each home carries its own yard, which buyers value.
Every finished home is valued against recently sold condos of similar size in the same neighborhood, then adjusted for layout. The pricing model is fixed and applied to every deal in this document, and every deal is shown at two stressed prices as well.
We price each unit at the size matched condo value in its neighborhood, then adjust for layout. A house with its own yard, or two detached houses with private outdoor space, carry the strongest premium. More attached, higher density layouts carry less, and a fourplex carries none.
Our base case applies no TIC discount. That is an assumption resting on our renovation thesis: because we finish every home to condo quality, we expect it to sell at condo prices. It is not a measured result. Our matched comparison of recent Los Angeles TIC sales against condos of similar size and location found TIC homes selling about 8.5% below comparable condos. We therefore show every deal at a 5% and a 10% discount next to the base case, and we report the stressed grade beside the base case grade.
Stated as a formula: the exit price per square foot equals the size matched condo price per square foot, multiplied by one plus the configuration premium, less any TIC discount (none in the base case, 5% or 10% in the stress cases). We move forward only when the projected net margin, after every cost of renovation, financing, and sale, is at least 15 percent. That rule sets a target price for every building: the most we can pay and still earn 15 percent net. At or below the target price we pursue the deal. Between 5 and 15 percent we negotiate toward it. Under 5 percent we pass.
| Configuration | Premium | Base case vs condo |
|---|---|---|
| House plus ADU, or two detached | +7.5% | +7.5% |
| Attached duplex | +3.0% | +3.0% |
| Triplex | +2.0% | +2.0% |
| Fourplex | +0.0% | Parity |
The base case applies no TIC discount; a 5% or 10% stress discount comes off these figures. The Echo Park house plus ADU exits at $801 per square foot in the base case, above its $745 condo comp, because it carries the strongest layout premium.
A repeatable pipeline that runs about six months from purchase to final sale, with the tenant question handled cleanly up front and the units sold one at a time.
Interior renovation and building systems only. No ground up construction, no additions, no entitlement risk.
Buy a 2 to 4 unit building (up to $4M), at or below its target price, in a neighborhood where rental prices sit well below home prices.
Structure the purchase so the units are empty at closing, handled cleanly and legally by the seller.
Kitchens, baths, paint, floors, curb appeal, and utility separation to a condo level finish, plus the sewer, electrical, plumbing, and roof work an older building needs.
Put a TIC agreement in place, then market each unit to a homebuyer and sell them individually, one at a time.
Because the finished units sell to owner occupants, the building must be delivered empty. Many buildings we target have tenants, and we treat that as both a budgeted cost and a legal responsibility. In Los Angeles a voluntary buyout, a negotiated and agreed payment for a tenant to release their unit, typically runs around $25,000 per occupied unit. Our model deals assume the seller delivers the building vacant, so the base case carries no buyout cost. Where a building cannot be delivered vacant, the buyout goes into the project budget and lowers the price we can pay by about the same amount.
Wherever possible we structure the purchase so the seller delivers the units already vacant, with funds held in escrow until vacancy is confirmed. The seller conducts the buyout before closing, in full compliance with each city tenant protection rules, so the responsibility stays on their side until the units are delivered vacant.
Two things make the exit smooth. First, each buyer takes out their own individual loan on their own share, so units close on a rolling basis and we do not have to line up every buyer at once. As each home sells, we take that profit and keep marketing the rest, so we are never held hostage to a single slow buyer.
Second, because these are 2 to 4 unit buildings, the setup stays simple, with no lengthy public offering process required. If any single unit is slow to sell, it can be held and rented, producing income until it sells well.
Most of our target neighborhoods sit within the City of Los Angeles, where the conversion rules are clearest and the path is well established. We steer clear of the few cities that make conversion difficult, and we spread across multiple neighborhoods so no single local rule change can stall the program.
This offering funds a repeatable strategy across a set of target submarkets, not one building. The value is created the same way on every deal: buy right, renovate to a consistent standard, and sell each home individually.
The pipeline is built by ranking neighborhoods on the rental to home price gap, then working active and off market inventory in the strongest ones. Below is where the program is concentrating today.
Neighborhoods where our model deal clears the 15 percent net margin bar in the base case and still clears it at a 10% discount to condo value. Fourplexes are the focus.
Neighborhoods where our model deal clears 15 percent in the base case but not under stress (Jefferson Park and West Adams, Echo Park), or grades Negotiate in the base case (Beverlywood and Pico-Robertson, Venice). We underwrite these closer to target price. Larger buildings up to $4 million are taken only on a below market, value entry basis.
How the pipeline is built. Each candidate building is underwritten to the same standard: a size matched condo comp for the exit, a renovation budget built from that building's own square footage, kitchens, bathrooms, and age, and a target price that protects a 15 percent net margin. Deals at or below target price advance. Deals within reach go to negotiation. Deals that do not work are passed. We show the thinner deals later in this document, at the base case and under stress, so the discipline is visible, not just asserted.
How we budget a conversion, eight model deals, one walked dollar by dollar, and a stress test. In our base case, which applies no TIC discount, six of the eight clear our 15 percent bar and two grade Negotiate. At a 10% discount, four still clear it. All figures are net of renovation, building systems, financing, carrying, and selling costs, with the building delivered vacant.
Each example pairs a real purchase price with a resale value drawn from recent condo sales of similar size in the same neighborhood, adjusted for the layout premium described earlier, with no TIC discount in the base case.
| Deal | Purchase | Exit $/sf | Sellout | Net Profit | Margin | At 5% | At 10% |
|---|---|---|---|---|---|---|---|
| Silver Lake and Atwater Fourplex Pursue 90039 | $1,295,000 | $770 | $2,616,780 | $894,145 | 54.0% | 46.3% | 38.6% |
| Palms Fourplex Pursue 90034 | $1,360,000 | $717 | $2,436,965 | $650,576 | 37.7% | 30.8% | 23.9% |
| Mid-City Fourplex Pursue 90019 | $1,150,000 | $661 | $2,114,690 | $561,478 | 37.4% | 30.6% | 23.7% |
| East Hollywood Triplex Pursue 90029 | $1,117,500 | $751 | $1,876,371 | $425,635 | 30.3% | 23.9% | 17.5% |
| West Adams and Jefferson Park Triplex Pursue 90018 | $900,000 | $603 | $1,447,812 | $238,452 | 20.3% | 14.4% | 8.5% |
| Echo Park House plus ADU Pursue 90026 | $985,000 | $801 | $1,481,709 | $241,156 | 20.0% | 14.5% | 8.9% |
| Beverlywood and Pico-Robertson Triplex Negotiate 90035 | $1,335,000 | $724 | $1,881,866 | $200,261 | 12.3% | 6.7% | 1.2% |
| Venice Fourplex Negotiate 90291 | $2,675,000 | $1,002 | $3,505,882 | $309,710 | 10.0% | 4.5% | (1.0%) |
Exit price per square foot is the size matched condo value adjusted for the layout premium, with no TIC discount (the base case). The Echo Park exit of $801 sits above its $745 condo comp because a house plus ADU carries the strongest layout premium. Net margin is net profit divided by total cost, including financing carry. "At 5%" and "At 10%" show the net margin if the homes sell at a 5% or 10% discount to that value. Grades shown are base case grades: Pursue at 15 percent or better, Negotiate from 5 to 15 percent, Pass under 5 percent.
Fourplexes carry the program.
Our fourplex models in Silver Lake and Atwater, Palms, and Mid-City earn about $561,000 to $894,000 net in the base case and still clear 15 percent at a 10% discount. The smaller deals earn less. The West Adams triplex and the Echo Park house plus ADU each net about $240,000, about 20 percent, in the base case, but fall just below 15 percent at a 5% discount and to under 9 percent at 10%. The East Hollywood triplex holds up best among the smaller buildings, at 17.5 percent under the 10% stress. Two unit deals still have a place, because each home comes with its own yard and privacy, which buyers pay a premium for.
Every deal in this document is costed the same way, from the building's own size, layout, and age.
We budget by square foot, kitchen, and bathroom rather than with a flat per home figure, because cost rises with each. Interior work is budgeted at $20 per square foot of living area plus $25,000 per kitchen and $15,000 per bathroom.
Older buildings also need work that a per home number misses, so we carry a building systems allowance set by the age of the oldest structure, for the sewer line, electrical panels, supply plumbing, roof, and termite work. Separation work, such as electrical meters, entries, and private yards, is carried inside the renovation and building systems budgets rather than as its own line.
These allowances assume the sponsor manages construction directly; our principal is a construction manager. A 10 percent contingency sits on top of renovation and building systems. On the flagship fourplex, the full project budget comes to about $283,000, or roughly $83 per square foot of living area, with interior renovation at about $57,000 per home. Selling costs are modeled at 2.5 percent of the sale price, with no separate marketing budget. Both are assumptions.
| Cost line | Budget |
|---|---|
| Renovation, condo quality finish | |
| Interior finishes | $20 per living sf |
| Kitchen, one per home | $25,000 each |
| Bathroom | $15,000 each |
| Separation: meters, entries, yards | Within renovation and systems |
| Building systems, by age of oldest building | |
| Built before 1950 | $25,000 |
| Built 1950 to 1969 | $15,000 |
| Built 1970 or later | $5,000 |
| Project, financing, and sale | |
| Contingency | 10% of renovation and systems |
| TIC legal and setup | $5,000 |
| Tenant buyout, base case | $0, delivered vacant |
| Closing and acquisition | 2% of price |
| Acquisition loan | 60% of price |
| Financing carry, on loan plus project | 10% a year, 6 months |
| Selling | 2.5% of sale price |
| Marketing | No separate budget |
| Model deal assumptions | |
| Bathrooms | One per home |
| Building age | Before 1950 |
| TIC discount to condo value | None in base case; 5% and 10% stress |
| Measured TIC gap to comparable condos | About 8.5% (matched LA sales) |
One deal walked from purchase to profit, with every cost included, at the base case price.
| Purchase (fourplex, 3,400 sf) | $1,295,000 |
| Closing and acquisition costs | $25,900 |
| Renovation (4 kitchens, 4 baths) | $228,000 |
| Building systems (before 1950) | $25,000 |
| Contingency (10%) | $25,300 |
| Legal and TIC setup | $5,000 |
| Financing carry (6 months) | $53,015 |
| Total invested | $1,657,215 |
| Selling costs (2.5%) | $65,420 |
| Four homes sold (average $654K each) | $2,616,780 |
| Less total invested | ($1,657,215) |
| Less selling costs | ($65,420) |
| Net profit | $894,145 |
The model building is larger than the neighborhood median; a median size fourplex at the same price would return about 28 percent net. At a 5% discount to condo value this deal would net $766,577 (46.3 percent), and at 10%, $639,009 (38.6 percent). Our target price for this building, the most we could pay and still earn a 15 percent net margin in the base case, is about $1.83M. The modeled purchase is $1.295M, about $535,000 below it. That cushion between our cost and our ceiling is the investor margin of safety. Annualized return is the return on the cash invested after a 60 percent acquisition loan (about $880,000 of cash, earning about 102 percent over six months), stated on a yearly basis. Each month the project runs past six adds about $9,000 of financing carry.
Our base case applies no discount to condo value. Because our matched comparison of recent Los Angeles TIC sales found TIC homes selling about 8.5% below comparable condos, we test every deal at a 5% and a 10% discount. Net profit and net margin at each:
| Deal | Base (no discount) | 5% discount | 10% discount |
|---|---|---|---|
| Silver Lake and Atwater Fourplex | $894,145 54.0% | $766,577 46.3% | $639,009 38.6% |
| Palms Fourplex | $650,576 37.7% | $531,774 30.8% | $412,972 23.9% |
| Mid-City Fourplex | $561,478 37.4% | $458,387 30.6% | $355,296 23.7% |
| East Hollywood Triplex | $425,635 30.3% | $335,955 23.9% | $246,276 17.5% |
| West Adams Triplex | $238,452 20.3% | $169,255 14.4% | $100,058 8.5% |
| Echo Park House plus ADU | $241,156 20.0% | $173,963 14.5% | $106,769 8.9% |
| Beverlywood Triplex | $200,261 12.3% | $110,319 6.7% | $20,377 1.2% |
| Venice Fourplex | $309,710 10.0% | $138,798 4.5% | ($32,114) (1.0%) |
At a 5% discount, four of the eight still clear 15 percent; the West Adams triplex and the Echo Park house plus ADU fall just short, at 14.4 and 14.5 percent. At a 10% discount the same four clear 15 percent, seven of the eight remain profitable, and the Venice fourplex loses about $32,000. The base case column matches the table above.
We show the thin deals, too. In the base case, the Beverlywood and Pico-Robertson triplex earns 12.3 percent and the Venice fourplex 10.0 percent, so both grade Negotiate: to reach 15 percent they would need to be bought near $1.30M and $2.55M, against modeled prices of $1.335M and $2.675M. At a 10% discount both fall below 5 percent. Premium coastal Westside pockets are the thinnest part of the buy box, which is exactly why every deal must show at least a 15 percent net margin at its purchase price before we move. Discipline about which building we buy, and at what price, is the difference between the top of the table and the bottom.
Buyer financing is the part of a TIC sale people worry about most, so we treat it as infrastructure. A TIC home is financeable today through a specialized but active set of lenders, and the loan products have only improved.
Each buyer finances their own share, on their own note and deed, with terms that keep the buyer pool wide.
Each buyer uses a fractional loan: their own mortgage and their own deed of trust on their share only. One owner mortgage has nothing to do with another. If a neighbor ever defaults, it does not touch the other owners. This is the modern standard for TIC homes, and it is what lets us sell and close the units one at a time.
A recent and important improvement: 30 year fixed rate TIC loans now exist, where these loans used to be adjustable rate only. Fixed payments widen the pool of buyers who qualify and feel comfortable, which supports our pricing.
The lender bench is specialized but active in 2026. In Los Angeles the main sources are National Cooperative Bank (a retail lender that offers a 30 year fixed), 5th Street Capital (a wholesale lender built for TICs of four units and under, reached through a broker), and Meriwest (a 30 year fixed, statewide), along with several Los Angeles loan officers who specialize in these loans.
We line up lender relationships before we sell and hand every buyer a current list of TIC lenders, so no one has to go hunting for a loan. The lender pool is thin, and we manage that honestly. By keeping several lender and loan officer relationships active at once, we make sure one lender pulling back never stalls our sales.
The bottom line for investors. Fixed rate products, a known lender list, and multiple relationships in hand mean our units keep closing even if any single lender steps away.
Each conversion is a self contained deal: equity acquires and renovates the building, senior debt covers the balance, and capital is returned with profit as the finished homes sell over the cycle.
The framework below describes how a single deal is capitalized and returned. It is a starting point for a conversation, not a final offer, and several terms are shown as placeholders for the sponsor to set.
| Deal term | Structure |
|---|---|
| Senior acquisition debt | About 60% loan to value |
| Cycle length | About 6 months per deal |
| Security | The underlying real estate |
| Preferred return | preferred return: to be set |
| Profit split to investors | profit split: to be set |
| Minimum investment | minimum investment: to be set |
The bracketed terms are decisions the sponsor has not yet finalized. They are shown here so the structure is complete and ready to fill in during a working session.
Short cycle, secured by property, and repeatable. We are assembling capital to acquire and convert a first group of 2 to 4 unit Los Angeles properties over the next 12 months.
The framework below is a starting point for a conversation, not a final offer.
The ask. Whether you are interested in participating in the equity or lending against the real estate, the next step is a short working session to size a first deal and a target return that fits you. Specific investor terms, including the preferred return and profit split, are set out during that session and shown as placeholders in the deal structure above.
This is a specialized strategy, and it rewards an operator who works at the intersection of brokerage, construction, and the specific mechanics of TIC conversion in Los Angeles.
A Los Angeles real estate brokerage and construction management operator, led by principal James McDonnell.
Conscious Communities Real Estate is a Los Angeles based brokerage and construction management operator that specializes in tenancy in common, accessory dwelling unit, and Senate Bill 9 conversions. The firm works where three disciplines meet: sourcing and underwriting acquisitions as a licensed brokerage, managing renovation and utility separation as a construction operator, and executing the legal and sales mechanics of selling converted units individually.
Principal James McDonnell leads acquisition selection, renovation oversight, and the buyer side sales process, and maintains the lender relationships that keep the exit open. The strategy in this document reflects that combined skill set: it depends less on market timing and more on disciplined buying, consistent renovation, and reliable execution of the conversion and sale.
Every real estate investment carries risk. The ones that matter for this strategy are set out plainly below, each paired with the specific way we control it.
Disclosure builds credibility, not fear. These are the risks we underwrite against on every deal.
| Risk | Why it matters | How we manage it |
|---|---|---|
| Buying in the wrong area | The profit disappears where rental prices already match home prices. | A strict neighborhood filter. We only buy where the gap is large, and only at or below the target price that protects a 15 percent net margin. |
| Renovation costs run over | Older buildings can hide sewer, wiring, plumbing, and roof problems. Our allowances assume the sponsor manages construction directly, and separation work is carried inside them rather than as its own line. | We budget by square foot, kitchen, and bathroom, carry a building systems allowance set by building age, add a 10 percent contingency on renovation and systems, and inspect before we commit. |
| Home values soften | A market downturn could lower resale prices. | We buy every building below the combined value of its homes, keeping a built in cushion, and test every deal at 5% and 10% below condo value. |
| Homes sell below full value | Our base case assumes finished homes sell at condo prices with no TIC discount. That is an assumption resting on our condo quality renovation, not a measured result: our matched comparison of recent Los Angeles TIC sales found TIC homes selling about 8.5% below comparable condos, and the gap can widen when buyer financing is tight. | Every deal is shown at 5% and 10% discounts. At 10%, four of our eight model deals still clear 15 percent and seven of eight remain profitable. We buy at or below target price, target neighborhoods with proven TIC demand, and can hold and rent any unit until it sells well. |
| Tenant buyout cost or delay | Occupied units add cost and time. | Seller delivers vacant structure, escrow holdbacks, and a buyout budget set for every deal up front. |
| Buyer financing | Buyers need specialized loans to close. | We secure lender relationships before we sell. Units can also be held and rented if needed. |
| Slow sales | Unsold units carry cost over time. Our model carries financing for six months, and on the flagship fourplex each extra month costs about $9,000. | We sell one at a time as buyers come, and any unsold unit produces rental income in the meantime. |
| Rule changes | Cities can change tenant or housing rules. | We track local rules, spread across multiple neighborhoods, and avoid the most restrictive cities. |
The next step is a short working session to size a first deal and a target return that fits you. From there we move to definitive documents and a specific acquisition.
Clear, low commitment, and built around your questions.
A short working session to walk the model, answer questions, and understand what kind of participation fits you, equity or debt.
We identify a specific target acquisition from the pipeline and set the deal terms, including the preferred return and split, together.
Any commitment is made only through definitive offering documents, reviewed by your own advisors, before capital is placed.
Contact
Conscious Communities Real Estate
James McDonnell, Principal
Pasadena, California
This document is a preliminary summary prepared by Conscious Communities Real Estate for discussion with a limited number of qualified parties. It is confidential and may not be reproduced or distributed without written consent. It is not an offer to sell or a solicitation of an offer to buy any security, and it is not investment, legal, or tax advice.
Any offer, if made, would be made only through definitive offering documents and only to eligible investors in compliance with applicable law. All figures are projections and estimates based on market data believed to be reliable as of July 2026, and actual results will vary and may vary materially. Forward looking statements rest on assumptions that may prove incorrect. Real estate investment involves risk, including the possible loss of principal. Each recipient should conduct an independent investigation and consult its own legal, tax, and financial advisors before making any decision. Certain deal level terms are marked as not yet set and are shown as placeholders.
Every resale figure in this document is drawn from recent home sales in the same neighborhood as the property, adjusted for the applicable layout premium, with no TIC discount in the base case and 5% and 10% discounts in the stress cases. Full deal level detail is available on request.