Investor Proposal

Proposal Background:

This proposal outlines the broad terms for Investors funding the acquisition of land to support the development and expansion of the proposed “Mata Kheer Bhawani Hindu temple and cultural center” hereinafter referred to as “MKB-HTCC”. This proposal details out the approach to secure the land through a private limited liability company (LLC) which would eventually transfer ownership to MKB-HTCC, a non-profit entity as per the terms outlined in this document. MKB-HTCC will be registered as a 501(c)(3) organization before the transfer is executed. This approach ensures both the successful acquisition of the land in a timely manner while giving a prolonged time frame and easy terms to MKB-HTCC for fundraising to support payment of the land and building of the facilities. This provides low risk and a win-win solution for all parties involved.


Proposal Overview:

Objective: Raise $2.5M to invest in LLC to acquire and develop the land for the purpose of transferring the asset to MKB-HTCC at favorable terms.

Structure:

  1. Initial Acquisition: A group of private investors will form an LLC to purchase the land from the seller and potentially develop some basic infrastructure services like road access, water, electricity, etc.
  2. MOU to sell the land to MKB-HTCC: As soon as MKB-HTCC is approved as 501 c 3 ,  LLC will offer a sale agreement to MKB-HTCC as per below terms.
    1. Purchase price for the MKB-HTCC to be set at the same amount as the price at which the LLC acquired the land plus any expenses incurred by LLC towards land improvement like road, water, electricity and any maintenance and sustenance including Taxes, etc. No additional construction to be done by LLC.
    2. LLC will provide the MKB-HTCC a period of 2 years after LLC acquires the land to execute the purchase. The 2 year timeframe is for MKB-HTCC to secure approval for 501 c 3 and raising the initial deposit.
    3. $50k down payment, at low interest amount with the interest waived off by the LLC, 15 year repayment time frame with 1st installments due after 3 years.
    4. In effect LLC will buy and hold the land until MKB-HTCC is able to purchase it. And carry the loan and provide very friendly terms to MKB-HTCC to be able to complete the loan repayment.
    5. The shareholders in the LLC will have the option to donate their full or partial investment to MKB-HTCC.
  3. Loan default & Exit Strategy: If the MKB-HTCC cannot raise the necessary funds and defaults on loan repayment to the LLC, the LLC could initiate sale of the land to recoup their investment. If there is surplus from the sale purchase, LLC would consider to return any loan payments made by MKB-HTCC with an understanding that it be returned to the donors of MKB-HTCC.

Details of the Proposal

  1. Initial Acquisition:
    • A group of individuals passionate about the project and willing to invest will form an LLC.
    • The LLC will acquire the targeted land after negotiating with the sellers and doing the required due diligence with the City.
    • This ensures the property is secured quickly by this friendly LLC while the MKB-HTCC is registered as a 510(c)3 charitable entity and raises funds to be able to initiate the purchase. 
  2. Sale of land to MKB-HTCC:
    • The LLC will hold the land until MKB-HTCC is ready to fulfill the obligations to purchase the land as mentioned earlier in the document.
    • The purchase by MKB-HTCC will be executed in a manner compliant with legal and financial regulations and laws of the state of California.
  3. Fundraising and Repayment:
    • MKB-HTCC will do fundraising to repay the loan provided by the LLC (Lender).
    • Regular updates and transparent financial reports will be provided to donors and stakeholders.
  4. Exit Strategy:
    • If fundraising efforts fall short and MKB-HTCC cannot repay , the LLC has the option to sell the land.
    • The sale proceeds will be used to repay the initial investors with a risk of sale not recouping the same amount as the purchase price.
    • The land as collateral ensures the financial risk is minimized for LLC investors.  There is a potential risk to the initial investors that the land purchase price might not be fully recoverable.

Benefits

  • For the MKB-HTCC :
    • Secure land for expansion with minimal initial outlay.
    • Leverage 501(c)(3) status for effective fundraising.
    • Transparent and strategic financial management.
  • For LLC Investors:
    • Opportunity to support a meaningful cause for the broader community 
    • Potential for financial recoupment if MKB-HTCC cannot meet its financial obligations.
    • Structured and clear exit strategy to minimize risk and agreed T&C.

Conclusion and Call to Action:

This proposal presents a well-structured plan for acquiring land to support the development of the MKB-HTCC. By forming an LLC for the initial purchase with an plan to subsequently transfer to MKB-HTCC 501(c)(3), we ensure a limited risk and financially sound approach. We invite you to join us in this noble endeavor and contribute to the development of this historic and first of its kind “Mata Kheer Bhawani Hindu Temple and Cultural Center”. We are seeking investors for the LLC at this time, if you are interested please fill out the Investment Interest google form