Arixa founder Jan Brzeski was quoted recently in The Bankless Times (www.banklesstimes.com), a electronic publication based in Palo Alto, California.
When Arixa launched its first fund, we chose to have the financial statements audited annually. Arixa Fund I will soon have three years of audited financial statements, while Arixa Fund II will soon have its first year of audited results. Both audits are being conducted by Lodgen, Lacher, Golditch, Sardi, Saunders & Howard, LLP, a Los Angeles CPA firm founded in 1965. Having audited results contributes to Arixa's mission of providing superior returns for real estate investors. We tap into niche investment areas where competition is limited for one or more reasons, but we still provide the transparency and thoroughness of much larger funds. We believe this combination explains the company's growth in the midst of a challenging and very competitive real estate investment environment.
After more than three years of originating short term real estate loans through Arixa Fund I, LLC, Arixa Management has now been selected to oversee a real estate loan origination platform for a very high net worth family in Los Angeles. The new program allows Arixa to originate loans of $1-$4 million per funding, typically on groups of single family homes being renovated for resale, and also on luxury homes that will sell for $2-$5 million upon completion. This new fund utilizes lines of credit, in anticipation of repeat business with very active real estate renovation specialists. Arixa expects to deploy several million dollars per month, each month, from this new separate account. The geographic focus for this new fund is California, Arizona and Nevada. Please contact Mike Schoellhammer or Jan Brzeski with any loan request. They can be reached at 310-846-1771.
Arixa has funded the 100th loan in its series of residential renovation financing projects.¬† A photo of the property appears below. Of the 100 loans, one went into default and had to be taken over, renovated and resold. Arixa has generated a profit on each of its 100 loan investments to date. While we won't be able to maintain a perfect record forever, that remains our goal as our lending program enters its fourth year.
Our 7th annual event happens Wednesday, March 6, 2013. Once again, we will hold the event at the Anderson School at UCLA thanks to the support and co-sponsorship of the Ziman Center. Please click here for the event flier and click here to register. Last year we had over 250 attendees. Our event has been successful because it combines three things seldom found together: (1) a lively and experienced panel that emphasizes candor; (2) a great price of $15 which includes beer, wine and appetizers; and (3) excellent networking.
Jan will be speaking Thursday, November 29 at 11:10 a.m. at the JW Marriott Hotel in Scottsdale, Arizona at this conference, which is dedicated to the growing business of investing in single family homes. His panel is entitled "Fix-up and Flip: How to Make Returns on a Large Scale." Jan's contribution will be about providing bridge financing to investors who specialize in this kind of investment, while the other panelists are mostly larger-scale "fix-and-flip" operators themselves. For more information about the conference, click here.
Greg Hebner has joined Arixa Management, LLC which is the fund manager for Arixa's residential investment funds. Greg has purchased more than 100 homes in California over the past two years, mostly from banks. His team makes these homes "like new" and sells them to families. Greg and his team will allow Arixa Fund II to purchase homes directly from banks for cash and renovate them cost-effectively. We call these properties "company-owned stores" to distinguish them from other homes that Arixa Fund II owns in partnership with experienced local operators who acquire, renovate and manage homes in areas where Greg and his team are less active. Greg will also assist Jan Brzeski with overall strategy for Arixa's residential funds. Greg's background can be found by clicking here. His company website can be found here.
Arixa Capital has hired two new professionals to support the company's growth. Michael Schoellhammer recently joined the California State Bar after completing law school and also has experience in the homebuilding industry. Kristina Sawyer has worked extensively in property management, which is highly relevant to Arixa's latest fund which purchases homes from banks, renovates and leases them, and operates them as a portfolio for income and capital gains. To see more background on Michael and Kristina, please click here and scroll down the page.
Family Office Review, a media company that serves very high net worth investors and their professional advisers, has published an interview with Arixa Capital founder Jan Brzeski. In the article, Jan describes why many established investment companies have turned their attention to investing in single family housing, and explains how Arixa became involved in this market. To access the full article, click here.
Arixa Capital has released a new white paper focused on the U.S. housing market and single family homes as an asset class for investors to consider. The white paper is based on Arixa's concrete experience investing in this area in recent years, working with local operators who buy properties in a specific geographic area, renovate them, and either lease the homes or resell them.
The white paper explains various ways that investors can gain exposure to this asset class, which Warren Buffett recently endorsed as underpriced and attractive. The author explains the advantages and disadvantages of various investment strategies for both active and passive investors.
The white paper also explains that the activity of thousands of local operators is already helping to work through the backlog of foreclosed homes. Attracted by appealing profits, local operators will help the housing market to heal over the next several years. Policies that aim to solve the problem on a mass scale are neither needed nor advisable.
For a copy of our white paper, please click here.
This year's event is set for Wednesday, February 8 at 6:30 p.m. at the Anderson School. For details, including speakers and registration, please visit the conference website: http://arixacapital.com/conference. What Makes this Event Special Last year, our event drew over 220 attendees for networking, refreshments and a lively panel discussion among some of Southern California's most established and interesting real estate investors. The reason our event has succeeded while other conferences sometimes draw limited attendance include three main factors:
(1) Great Panel. The panel discussion is unusually candid, as we track a core group of investors through the full real estate market cycle. This "longitudinal study" aspect of our event is unique. We are told each year that our panel is one of the best, or the best, among all the California conferences.
(2) The Price is Right. At only $20 per person ($15 with pre-registration), including food, beer and wine, there is no better value than our conference. We thank our key sponsors including the Ziman Center at the Anderson School, and Gibson, Dunn & Crutcher, for keeping the cost to a minimum.
(3) Excellent Networking. Our event starts with a one-hour reception during which you will meet valuable contacts in a collegial atmosphere. At the reception and after the discussion, you can meet the panelists and other professionals and investors in our industry.
Effective July 1, 2011, Standard Capital will begin using a new name for our company: Arixa Capital Advisors, LLC. Our physical address, phone and fax numbers will remain the same and only our name, website, and email addresses will change. Our existing fund, which has a profitable audited track record of investing in short-term real estate loans, is also changing its name to Arixa Fund I, LLC. Why We Are Changing Our Company Name The reason for the name change is to avoid potential confusion with out-of-state companies with similar names.
Why Arixa Capital Advisors The genesis of our new name has to do with my wife Nicole's recent public health work. Several weeks ago, while I was contemplating the name change, Nicole was in Namibia working on a public health project. I noticed the village of Arixa on the map of Namibia and I liked the name. When I determined that this name was available for my company to use, I decided to rebrand ourselves as Arixa Capital Advisors, LLC.