Terra Equity Group

New Passive Investment Opportunity

Terra Capital's Diversified Income Fund

Achieve Truly Passive Income
Through Multifamily Real Estate

New Passive Investment Opportunity

Terra Capital's Diversified Income Fund

Achieve Truly Passive Income
Through Multifamily Real Estate

TABLE OF CONTENTS

1. Investment Summary and Highlights
2. Offering Specifics
3. Who is Terra Equity Group?
4. Vertically Integrated
5. Commercial Real Estate Asset Class
6. Investment Philosophy
7. Track Record & Portfolio Overview
8. Why Distressed Properties?
9. Strategy Overview
10. Why a Fund?
11. Is This Fund Right For You?
12. Critical Dates
13. Next Steps

DISCLOSURE

General Disclaimer

This Executive Summary contains privileged and confidential information and unauthorized use of this information in any manner is strictly prohibited. If you are not the intended recipient, please notify the sender immediately. The Executive Summary is for informational purposes and not intended to be a general solicitation or a securities oering of any kind. The information contained herein is from sources believed to be reliable, however no representation by Sponsor(s), either expressed or implied, is made as to the accuracy of any information and all investors should conduct their own research to determine the accuracy of any statements made. An investment in this oering will be a speculative investment and subject to significant risks and therefore investors are encouraged to consult with their personal legal and tax advisors. Neither the Sponsor(s), nor their representatives, ocers, employees, aliates, sub-contractors or vendors provide tax, legal or investment advice. Nothing in this document is intended to be or should becons trued as such advice.

The SEC has not passed upon the merits of or given its approval to the securities, the terms of the oering, or the accuracy or completeness of any oering materials. However, prior to making any decision to contribute capital, all investors must review and execute the Private Placement Memorandum and related oering documents. The securities are subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell their securities.

Potential investors and other readers are also cautioned that these forward-looking statements are predictions only based on current information, assumptions and expectations that are inherently subject to risks and uncertainties that could cause future events or results to di er materially from those set forth or implied by such forward looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, such as “may,” “will,” “seek,” “should,” “expect,” “anticipate,” “project, “estimate,” “intend,” “continue,” or “believe” or the negatives thereof or other variations thereon or comparable terminology. These forward-looking statements are only made as of the date of this Executive Summary and Sponsors undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

Financial Disclaimer

The Executive Summary further contains several future financial projections and forecasts. These estimated projections are base don numerous assumptions and hypothetical scenarios and Sponsor(s) explicitly makes no representation or warranty of any kind with respect to any financial projection or forecast delivered in connection with the Oering or any of the assumptions underlying them. This Executive Summary further contains performance data that represents past performances. Past performance does not guarantee future results. Current performance may be lower or higher than the performance data presented.

All return examples provided are based on assumptions and expectations in light of currently available information, industry trends and comparisons to competitor’s financials. Therefore, actual performance may, and most likely will, substantially di er from these projections and no guarantee ispresen tedor implied as to the accuracy of specific forecasts, projections or predictive statements contained in this Executive Summary. The Sponsor further makes no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown in the pro-formas or other financial projections.

About us

We invest in multifamily and commercial real estate, building better communities for our tenants, and yielding higher returns for accredited investors.

Broker Relationships

We nurture long term relationships with key broker partners throughout the United States.

Emerging Markets

We focus on emerging markets, specifically in the Southeast, to ensure our investments have room to grow based on long-term socioeconomic conditions.

Market Multifamily Assets

Through our broker relationships in emerging markets, we have unique access to off-market commercial real estate opportunities not available to the average investor.

Capital Preservation

We are passionate about capital preservation and growth for our investors. We offer a 8-12% Preferred Return with Quarterly Distributions.

Value Creation

When our tenants thrive, their communities thrive. When communities thrive, value is created for everyone. From renovations to buildouts, pools to playgrounds, solar panels to roofs, we invest in reliable, long-term value creation.

OUR VALUES

FAMILY

We treat our investors, tenants, and communities as our family – with a high degree of trust, partnership, reliability, and security. We also happen to be a close-knit family ourselves.

Passion

We strive passionately towards capital preservation, and creatively increasing the value of real estate assets so that communities, tenants, and investors can prosper.

Legacy

We would like to leave a legacy for the long term – through our core values and sustainable communities we help build.

TRACK RECORD

$120M+

Equity Raised

19

Properties (Apartments and Retail)

$483M

AUM

4,700+

Units

8

States

15+

Years experience In CRE syndication

Return History

Successful Property management even through COVID-19 (with a 94% collection rate)

Successful Property management even through COVID-19
(with a 94% collection rate)

25%

Average ARR

20%

Average IRR

2.5x

Equity Multiple

8%

Average Preferred return

Current Market

  • Texas
  • Tennessee
  • Florida
  • North Carolina
  • South Carolina
  • Georgia
  • Ohio
  • Kentucky

Portfolio

Distressed & Opportunistic Real Estate Fund

An investment that focuses on cash flow for investors while also maximizing equity growth during changing market cycles.

Distressed Property Advantage

Discounted Acquisition: Purchase properties at significant discounts below market value.
Maximized Returns: Opportunity to capitalize on market recovery.

Diversified Portfolio

Multiple Asset Classes & Markets:
Minimize risk and maximize opportunities.

Experienced Management Team

Terra Equity Group Expertise:
Sourcing and executing value-add opportunities.
Cost-effective renovations and lease-up strategies.
Optimized property management.
Eligibility: Extensive experience in real estate investing, property management, asset management, business strategy, and acquisitions.

Experienced Management Team

Terra Equity Group Expertise:
Sourcing and executing value-add opportunities. Cost-effective renovations and lease-up strategies Optimized property management.
Eligibility: Extensive experience in real estate investing, property management, asset management, business strategy, and acquisitions.

We believe Distressed Real Estate Asset Classes are the best asset class during this part of the market cycle, providing strong and reliable cash flow, even in the face of a potential market correction. But only if the RIGHT asset classes are purchased and the RIGHT business strategy is applied.
— And that’s our secret sauce.

WHO is TERRA EQUITY GROUP?

Vino Kulhari

Vinod Kulhari

Founder & CEO

A seasoned business executive with more than 20 years of real estate experience, Vinod has been raising private capital for commercial and residential real estate since 1995.
SEE MORE
Puneet Kulhari

Puneet Kulhari

Director of Asset Management

Puneet Kulhari is a founding partner of Terra Equity Group, LLC, with real estate experience dating back to 2005. Pursuing a deep passion forreal estate, he became a licensed
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Viraj Kulhari

Director of Acquisitions

Viraj Kulhari is a founding partner in Terra Equity Group and has been a licensed real estate agent since2014. Leveraging a lifelong passion for entrepreneurship, he has successfully
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Karan Choudhary

Director of Construction Mgmt

Karan is a partner in Terra Equity Group, bringing a newfound passion for real estate to the team as of2018. He began his real estate journey in college, while he was pursuing his
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WHO is TERRA EQUITY GROUP?

Julio Acosta

Chief Financial Officer

CPA & Business Tax Advisor Certified Public Accountant (CPA)with offices in Pembroke Pines and Miami Brickell. Our office provides Complete Back Office Support Services to businesses which includes
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Sheena Bituin

Asset Manager

Experienced CPA specializing in Financial Analysis and Construction Accounting, offering over 7 years of expertise. Proven track record in dissecting complex financial data, managing
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Georgette Garan

Assistant Operation Manager

Georgette Garan, who joined the Terra Equity Group in July 2019, brings over 4 years of expertise in residential property management.With a background in overseeing a diverse portfolio
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PARTNERS

Brad Blazar

Capital Coach

Former CEO of a small oil company, who has raised over $2B in capital and closed mega-million-dollar real estate transactions, including$22M for Smart Stop Self Storage and $11M for USAllianz.

Purchased, rehabbed, and renovated over 12 family properties worth $3.5M and authored the #1 entrepreneur’s book On The Wings of Eagles-Learn to Soar in Life.

Host of the Beast Nation Podcast, the 2nd highest-ranked show helping people cope with COVID-19.

Mauricio Rauld

Syndication Attorney

With over 22 years of securities experience, he is a top real estate syndication attorney specializing in compliance with Federal and State securities laws and security token offerings (STO).

As an educator, he travels nation wide to guide real estate investors on legal regulations and serves as a legal advisor to prominent figures like Ken McElroy, Robert Helms, and Brandon Turner.

Recently featured on the cover of the Top 100 Magazine, Mauricio lives in Southern California with his wife Heidi and daughters Adelina and Alessandra.

VERTICALLY INTEGRATED

It’s All Upside: The benefits of in-house management

 Terra Capital Income Fund II has vertically integrated and solely dedicated fund management, asset management, construction and property management company that employs all asset management and property management staff, all the way down to the resident manager level. This enables ultimate control over the performance of our assets, along with a host of other benefits.

Ultimate control over the future of our assets

Drives operational efficiencies across the portfolio

Significant cost savings that help directly boost NOI

Thorough tenant screening processes

Direct control over our value - add infill strategy

Faster renovations

Stronger communities

INVESTMENT
PHILOSOPHY

Math Over Emotion

We prioritize data - driven decisions with thorough underwriting and conservative projections.

Talent - And - Team Focus

A great deal needs a great team. We work with experts and foster collaboration for success.

Distressed & Opportunistic Real Estate Focus

We invest in properties that provide both cash flow and value - add opportunities for appreciation.

Systems Create Profit

A deal’s success hinges on solid systems. We enforce strict SOPs to ensure efficient management.

OFFERING DETAILS

Terra Capital Income Fund II

Fund Name

506c Reg D | Distressed Real Estate Fund

Investment Type

Multiple (Diversified)

Asset Class

$100M

Fund Size

5 - 7 years

Projected Hold Period

$100,000

Minimum Investment

Accredited Investors Only

Eligibility

Investment Strategy

WHY A FUND?

One offering, multiple assets

  • Capital Appreciation
  • Income Generation
  • Professional Management
  • Tax Benefits
  • Limited Liability
  • Diversification
  • Mitigate Single-Asset Risk
  • Stabilized Returns

Commercial Real Estate Asset Class

Minimize Risk and Maximize Opportunities.

Multi-family

  • Includes duplexes, apartments, and similar properties.
  • Known for stable returns, low volatility, and reliable cash flow.
  • Benefits from economic downturns as more people rent.
  • Offers inflation protection and tax advantages. ss.

Retail

  • Shopping malls, strip malls, and retail spaces.
  • Long-term leases with tenants covering maintenance costs.
  • Income increases
    over time as rents rise.
  • Provides inflation
    protection and stable returns.
79 (1)

Medical offices

  • Facilities for healthcare professionals, from
    clinics to large
    complexes.
  • Offers long-term
    leases and steady
    income.
  • Resilient due to
    growing demand for healthcare services.
  • Tenants invest heavily, leading to high occupancy rates.

Mobile home parks

  • Communities that lease land to mobile home owners.
  • High yield potential with low maintenance cost.
  • Limited supply and strong occupancy due to zoning restriction.
  • Resilient investment with stable cash flows.

Hospitality

  • Hotels, resorts, and
    short-term lodging.
  • High returns but
    sensitive to economic cycles.
  • Success depends on effective management and
    location.
  • Can capture growth
    from tourism and
    business travel.

Commercial Real Estate Asset Class

Minimize Risk and Maximize Opportunities.

BRIDGE LOANS

  • Short-term financing for acquisitions and renovations.
  • High-interest income with short investment horizons.
  • Secured by property, reducing risk.
  • Requires deep understanding of real estate markets.

PRIVATE EQUITY (PE)

  • Invests in non – public real estate, aiming to reposition assets.
  • High-return potential through active management.
  • Higher risk and longer investment periods.
  • Requires significant capital commitment.

SHORT-TERM LENDING

  • Loans for renovation projects or bridging financing gaps.
  • Quick returns secured by property.
  • Generates consistent interest income.
  • Requires careful risk assessment and market awareness.

CRE SECTOR PERFORMANCE AND CAPITAL FLOW (2019-2024)

DISTRESSED PROPERTIES BENEFITS

Expertise

The Terra Equity Group team has a proven track record in identifying, acquiring, and managing distressed real estate assets. Their extensive experience and industry knowledge are invaluable assets for investors.

Attractive Returns

By leveraging the advantages of distressed properties and the team's expertise, the fund aims to deliver above-average returns to investors, making it an attractive option for those seeking real estate investment opportunities.

Risk Mitigation

While distressed properties come with inherent risks, Terra Capital Income Fund II diversified approach and proactive management strategies are designed to mitigate these risks and maximize investor returns.

Capital Preservation

Despite the opportunistic nature of the fund, Terra Equity Group places a strong emphasis on preserving capital and managing risks effectively to safeguard investor interests.

STRATEGY OVERVIEW

Purchase 6-12 Distressed Real Estate Asset inside the fund
Manage effectively and increase Net Operating Income.

(Primarily through reducing expenses, increasing rent, and adding value)

Distribute regular cash flow and hold for 4-7 years

(Quarterly distributions and hold until opportune time to exit)

TIERED EQUITY STRUCTURE

Flexible Options:

Choose between Class A1 and Class A2 investments.

Blended Strategy:

Option to split investments between both classes for a balanced, risk-adjusted return.

Tailored Goals:

Designed to help investors achieve their personal financial objectives.

Return Structure

Class A1 Limited Partner

Class A2 Limited Partner

Return

12% preferred return, with limited upside.

8% preferred return, plus profit participation.

Priority/
Liquidity
Event

Priority/ Liquidity Event

Senior to all other equity, receiving the full 12% return before others.

After debts and Class A1 obligations are settled:
  • Split: 70% LP / 30% GP until a 14-18% IRR is reached.
  • Then: 50% LP / 50% GP split.

Investor Fit

Ideal for those seeking strong cash flow and lower risk.

Suited for those aiming to maximize returns, with higher risk tolerance and lighter early cash flow.

Distribution Timing

Quarterly

Tax Advantages

Benefit from bonus and accelerated depreciation through cost segregation studies

CLASS A2 PROJECTED RETURNS 1

Targeted 8% Avg. Preferred return over the Life of the Fund

Not including any sale/refinance proceeds

We always conservatively project for the Class A2 investor cash flows to ramp-up over the first few years of a fund, which correlates with the implementation of our value-add business plan.
The targets above are intended for illustrative purposes only to facilitate analysis and are not guaranteed by Sponsors as there are no assurances these targets will be met. These targets are based on past Distressed Real Estate Assets Class metrics, past performances, and past experiences of the Sponsors in the Distressed Real Estate Assets Class. Sponsors make no representations or warranties that any investor will, or is likely to, attain the targets shown above since hypothetical or simulated performance is not an indicator or assurance of future results. Please review the financial disclaimers on page 3 and Risk Factors in the PPM.

NEXT STEPS

First come, First served!

01

Commit

Login to the investor portal. This is where you’ll make your commitment, e-sign offering docs, and get up dates about your investment.

02

Documents

Review and complete all of the legal documents in side the portal.

03

Accredited Investor Verification

Review and complete all of the legal documents inside the portal.

04

Funding

You can either link your bank account for ACH transactions OR view the wire instructions.

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