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Consumer Cooperative Group

Multifamily Real Estate Investment Cooperative- Pre-IPO
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INVEST

315dd00hh

Time left to invest


$610

amount committed 

$10k - $5000k

funding goal 

Regulation CF

exemption used 

$9,389,945

pre money valuation 

$120.00

min investment 

3

investors 


Security Type
Class A Common Stock
$0.01 per share
1 Vote per Share Rule
Cooperative Membership
Dividend Eligibility (Profit Sharing)
Bonus

 

  • This a Pre-IPO investment opportunity. Consumer Cooperative Group is planning to go public via a direct listing on the NYSE American sometime within the next 12 months. Although, we do not know what the expected IPO price will be, we are selling various block sizes of shares to all prospective investors in this offering at a large discount, which is reflected in the price per share in this offering. The offering is priced for all budgets and the larger the investor base, the stronger our real estate purchasing power will be.

 

  • When you invest $500-$999 you will receive 5 years of active cooperative membership, a CC Group Member Embroidered logo left chest T-Shirt for free and the founder of the company will be gifting an additional 50 million of his own personal shares to be equally divided amongst the first 2500 investors who take advantage of this offering early. The additional shares equate to 20,000 on top of the original investment. This bonus is separate and cannot be combined with other bonuses.

 

  • When you invest $1000 or more, you will recieve a CC Group Member Embroidered logo left chest T-Shirt, lifetime membership with our cooperative and lifetime profit sharing in all the multifamily real estate assets the cooperative acquires during this offering and any additional real estate assets it acquires in the future. Profit sharing is based on a per share basis, the more shares you obtain, the larger your portion. This bonus is separate and cannot be combined with other bonuses.

 

  • Additionally, the founder will defer his earnings per share (EPS) portion (Class A Common Stock) for a maximum of 12 months, when and if the company is able to start profit-sharing. Since, the founder is the largest shareholder, any calculations for his EPS regarding the Class A Common Stock, will be allotted equally amongst the early shareholders in this RegCF offering only. This last bonus is in addition to the other bonuses, and it applies to all investors who invest at least the minimum in this offering and this offer does not extend to our future Regulation A offering. To learn more about how EPS works click here.

      
  • Lifetime profit sharing portion will be based on your initial and overall investment in this offering. So, if you sell all of your shares on any secondary market, your lifetime membership with the cooperative allows you to continue profit sharing as a cooperative member, based on your initial and total investment in this Regulation CF offering only.

Pitch

Who are we

 

Consumer Cooperative Group Inc. is a new-age real estate investment cooperative model

 

Consumer Cooperative Group Inc., will give a real choice, flexibility and affordable investment options back to the common investor. Current statistics show about 90% of the population are non-accredited investors, that were excluded from making early equity investments into privately held start-ups. This percentage includes, an incredibly large demographic, that is made up of low-to-middle class Black American families with young and teenage children, who do not have an affordable and/or consistent method to create generational wealth through real estate ownership, in order to pass down to future generations and are all but forgotten by most investment institutions. We aim to empower these investors by giving them a suitable, affordable and non-traditional real estate investment option through our methodology of COOPONOMICS™. 

 

crowdfunding

 

 

Problem
Outdated legislation created a wealth gap between various communities. In doing so, it classified individuals into categories, such as accredited and non-accredited investors. These classifications established financial opportunities for the accredited investors which make up approximately 2% of the market and denied it to non-accredited investors who make up the other 98%. This is a problem because financial wealth was being created over the last several decades into the early investment opportunities in start-ups and innovative companies we all know today. Even though there was a risk involved, there were high profit possibilities to be gained from the success of these companies early on. These massive fortunes were expanded when these companies were underwritten by investment banks and listed on stock exchanges, we know today, respectfully as the OTC Markets, NASDAQ and the New York Stock Exchange (NYSE). These retail markets are specifically marketed to the 98%, as investment opportunities. This is not the case because the true meaning of a non-accredited investors is a retail investor. Retail investors are on the back end of the investment, because they are paying an inflated price for the stock, while creating high returns for the accredited investors who were afforded early access to the investment at a much lower investment cost. So, looking at this from a common sense perspective, non-accredited investors (retail investors) were good enough to invest at an inflated rate but not at an early discounted rate. The intent to financially oppress is obvious. 

 

Additional problems such as financial disabilities, which were created specifically in the real estate markets, dependencies on banks and other financial institutions to fund purchases and the creation of debt that attached to these real estate assets, which left these assets vulnerable to repossession and foreclosures. Remember, these are the same financial institutions whether directly or indirectly that have been underwriting start-ups and innovative companies in various industries. This is the financial discrepancy, because it is not about the equality of investing it is the ability to access equity to balance out the wealth gap that has been accumulated and leveraged over the last several decades by these individuals and institutions. Legislation has changed the rules and even though there are some limitations for this new niche market of non-accredited investors to access early investments, the opportunity for early access is now available, with the ability to create potential generational wealth in the acquisition of cash-flowing real estate by controlling their investment dollars. Let’s address some of these newly created problems with this new legislation as it relates to funding portals. I am going to arbitrarily state that this problem lies with about 99% of the registered funding portals under the regulation of the SEC and FINRA, with the 1% who actually understand what legislation intended to create, which I equate to deregulating the monopoly on who gets to access the capital markets as a business and who gets to invest early in these emerging growth businesses.

 

 

Majority of the funding portals operate on traditional investing values. Similar to Venture Capitalist who typically invest a total of $20-$30 Billion a year with about only 1-4% of the new companies ever receiving VC funding. This is a problem not only for the new issuer businesses but also for the new niche market of investors who now have an opportunity to invest on the ground floor. Majority of the funding portals follow this traditional Venture Capital approach, but they utilize the term vetting. They understand that venture capital deals have long been preserved, for extremely wealthy individuals or institutional investors. Their vetting policies and practices are arbitrary and this allows them to act as financial gatekeepers to dictate and control the narrative of what business opportunities this new niche market of investors are able to see. This can be easily verified on their websites, as they state that less than 1% of issuers who apply to be listed on their portal get accepted. Legislation was created for the businesses and this new market of investors to come together on these funding platforms and not to be filtered out by the owners of these funding portals because they do not think the business opportunity is not viable enough for their traditional investment values. It is not up to the funding portals, it is the new investors option and choice and their right to choose, is being suppressed. Additional vetting by these funding portal are arbitrary and unnecessary red-tape that does not additionally mitigate the financial risk in anyway. The Securities and Exchange Commission (SEC) rules, dictate over the funding portal rules and is the only minimal and sufficient rules that should matter. These practices go unchecked and the investors are unknowingly being manipulated to invest in a limited pool of investments that are manufactured by these regulated funding portals.

Solution

 

Introducing the Innovative Disruptor to REITS & Real Estate Funds

 

Consumer Cooperative Group, Inc., was formed as a cooperative to provide an array of affordable real estate services to include but not limited to developing an affordable real estate investment pooling platform (R.E.I.P.P™) for the web and mobile applications for all investor types. This will allow for the pooling of financial investment capital in order to acquire large multi-family complexes as well as other real estate as a single cooperative group.

 

By eliminating unnecessary red-tape, high entry investment level requirements and completely eliminating the need of getting bank financing will equally allow everyone to become members and early shareholders. These new investors will have an opportunity to build an equity position by investing at an affordable price into real estate projects. A Peer2Peer (P2P) network is similar to the group concept but the cooperative will consolidate the P2P network internally as a separate and independent element, while the cooperative represents the financial buying power of the internal P2P (members/shareholders) network, it will operate as a single accredited cooperative investor entity.

 

By attempting to create, remove the funding portal barriers and establish a market for this niche and under-served market, Consumer Cooperative Group will be the financial vehicle (Real Estate Investment Cooperative, R.E.I.C™) that will help facilitate and apply the financial investment capital of this neglected and underserved market of investors, so they can and through this cooperative take advantage of investments in cash-flowing real estate acquisitions and other real estate financial opportunities collectively, independently, equitably and doing it 1 property, 1 street, 1 block, 1 community and 1 city at a time until reaching the Wall Street trading platform. Additional problems such as financial disabilities, which were created specifically in the real estate markets, dependencies on banks and other financial institutions to fund purchases and the creation of debt that attached to these real estate assets, which left these assets vulnerable to repossession and foreclosures. Remember, these are the same financial institutions whether directly or indirectly that have been underwriting start-ups and innovative companies in various industries. This is the financial discrepancy, because it is not about the equality of investing it is the ability to access equity to balance out the wealth gap that has been accumulated and leveraged over the last several decades by these individuals and institutions. 

Legislation has changed the rules and even though there are some limitations for this new niche market of non-accredited investors to access early investments, the opportunity for early access is now available, with the ability to create potential generational wealth in the acquisition of cash-flowing real estate by controlling their investment dollars. Let’s address some of these newly created problems with this new legislation as it relates to funding portals. I am going to arbitrarily state that this problem lies with about 99% of the registered funding portals under the regulation of the SEC and FINRA, with the 1% who actually understand what legislation intended to create, which I equate to deregulating the monopoly on who gets to access the capital markets as a business and who gets to invest early in these emerging growth businesses.

 

Achievement & Traction

What is a cooperative?

 

Cooperatives are people-centered enterprises jointly owned and democratically controlled by and for their members to realize their common socio-economic needs and aspirations. As enterprises based on values and principles, they put fairness and equality first allowing people to create sustainable enterprises that generate long-term jobs and prosperity. Managed by producers, users or workers, cooperatives are run according to the 'one member, one vote' rule. The COOP Marquee’ is a tool and resource that elevates our cooperative identity, principles and purpose in association with the International Cooperative Alliance & the National Cooperative Business Association, two non-profit organizations with a mission to develop the global online network of cooperatives and its movement.

 

 

 

 
 
 
 

In February 2021 “We were Nominated as a Top Real Estate Investment Company in Texas by Welp Magazine”

 
 
 
 

Also, in February 2021 “We Were Nominated as a Top Asset Management Company in Texas by Daily Finance”

 

During the Covid Epidemic in 2020 we were able to acquire about $370,000 worth of real estate in which we renovated over the course of 9 months and created jobs within our close niche community. We later were able sell the assets at a slight loss. We were able to recoup enough capital to advance our business plan but the positive economic impact we provided for our worker’s families made our efforts worth the risk during these trying times.

 

Soliciting support from our niche market of neglected and underserved investors, our cooperative can acquire 100 times the real estate assets in 2021 thru 2022, thereby positioning us as a collective to be eligible and qualified through an application process, to be listed and traded on NYSE American. A path to liquidity is a win, win situation for the cooperative, its shareholders and their future generations.

 

 

Market

'Separately we Transfer Our Wealth to Financial Institutional Markets'

Together we can keep our wealth & transfer it to our future generations instead

 

 

Ever since the enactment of the Jobs Act, there has been an increase in activity to capture this new market of investors in the real estate sector. Even though this new market of investors and the real estate investment industry is the core of our business, certain trends are taking some of the attributes of our cooperative model and executing them as individual businesses that plays more to the traditional pre-Jobs Act routine that favors the market of wealthy investors, as it has for several decade now. 

  

Potential Large Untapped Market

 

We believe the wealth gap is artificial and if we can remove the manipulation through our cooperative model it will aid in the democratization of our financial system, equitably to this new market of non-accredited investors and their communities. Accredited investors make up about 2% of the market and have had access to early stage investments, that have amassed fortunes for several decades now. Then we have the non-accredited investors who make up the other 98% and is who, these retail investments are marketed too after they are underwritten by investment banks and listed on stock exchanges, we know today, respectfully as the OTC Markets, NASDAQ and the New York Stock Exchange (NYSE). These retail markets are specifically marketed to the 98%, as investment opportunities. So, looking at this from a common sense perspective, non-accredited investors (retail investors) are good enough to invest at an inflated rate but not at an early discounted rate. There is a common denominator here, at every stage there was some type of intermediary whether it be a broker, investment banker or a funding portal that is hindering access and progress of financial growth from a business and an investor prospect.

 

The cooperative model represents the like-minded member/investors as single entity. This is effective in the sense that the company may be classified as a single accredited investor or even an institutional investor if the assets of the company meet a certain benchmark for such a classification. Additionally, the member/investors do not just benefit from potential profit sharing, they have prorated shares of equity ownership through their stockholdings, in which if the company pursues liquidity by listing it shares on a trading platform, provides immediate liquidity for each member/investor and or the power of financial leverage of their shares to fund their own personal or community projects. Member/Investors are no longer just relying on a monthly or annual dividend payment, they have ownership in a company and access to immediate liquidity or leverage of their stockholdings if Tier 1 cash is needed. No more uncertainties or the need to wait to see if a dividend payment will be made.

 

 

 

 

 

Competition

Our Competitors just Take, We Pool, Share the Financial Pot & So Much More

 

Now, our competitors which consist of Real Estate Funds, REITS, and other similar investment vehicles tie up your investment dollars in real estate properties, that may be leveraged up to 90% in debt, thereby providing a small margin for overall profit sharing with their investors. Many of the investments may not be turn-key or even fully cash-flowing, meaning repair cost towards renovations can delay potential returns. 

 

Our advantage in this offering is that non-traditional business in real estate investing is our business's foundation. We did not have to learn or adjust our business policies to new legislation like some of our competitors, who are racing to catch up to capture this new flood of investors to the market. We are different because we speak the common language of this new niche market investors as well as knowing their specifics needs by offering what the competition will not. We are offering growth opportunities through equity, all while providing affordable entry-level investment thresholds for every household budget. Real Estate investment pooling within our cooperative model provides indirect real estate ownership benefits to our new investors through equity shareholdings with the main focus on establishing a market for liquidity of their shareholdings, something our competitors are not focusing on.

 
 
Business Model

COOPONOMICS™=(Cooperative+Economics) is Our 'Quid Pro Quo'

 

We believe the best way to make money is when you are not working for it. So, how we plan to make money and create a valuable and successful real estate investment cooperative, is by purchasing multifamily and single-family real estate units that provide monthly cash-flow. We will let the units produce the revenue while providing homes for families and maintaining and creating additional jobs, all while sharing the profits with our early investors. Our competitors are not providing such a service of allowing a neglected and underserved market of investors the ability to financially participate in a profit-sharing venture at its inception. There is no buddy system here, we are all on equal footing and we all benefit and profit according to what each of us financially contribute to this offering. Bottom line.

 

  • We wanted to make the real estate investment process simple.
  • You Invest in exchange for equity stock;
  • We then go and buy all cash, turn-key, cash flowing multifamily apartments;
  • Then we collect the monthly cash flow;
  • then minus the expenses, we split the profits.

 

Now, some of these properties will require us to assume the existing debt which will be more economical. Then we will have an opportunity to eliminate the debt within 12 months, to stay true to the company's business model.

 

By us not being a Real Estate Fund or a REIT, you will not have to ask for permission to access your investment dollars. You will not own the real estate directly, but you own the equity common stock that is tied to the value of the real estate which is a more powerful position. Since the company does not carry any long-term debt past 12 months, all shareholders will remain in a primary position to receive full value of the company's profits from its real estate holdings without being subordinate to any debt obligations. Since the company is in the process of filing a Regulation A offering and applying for a direct listing on the NYSE American, this will be the initial step in providing liquidity for our shareholders from the inception of our capital raise.

Team

Self-made, serial entrepreneurs destroying false financial narratives

Financial gatekeepers block innovations that are financially helpful to society as a whole

 

Tanen Andrews, Founder & CEO

 

Tomica Hogg-Andrews, President

 

Use of Funds

The Company intends to use the net proceeds of this offering to acquire turn-key cash-flowing multi-family real estate apartment complexes and fund ongoing working capital needs. The Company’s management shall have broad discretion to determine how such proceeds shall be used. We will publish any prospective properties here. Check back periodically, as properties change on a regular basis.

 

Buying the real estate assets is just the beginning. We additionally, must first qualify for the initial listing standard (b) 2 which we selected and that is a combination of at least 2 years of operations; stockholders’ equity of at least $4,000,000; a minimum public distribution of 500,000 shares together with a minimum of 800 public shareholders; OR a minimum public distribution of 1,000,000 shares together with a minimum of 400 public shareholders; Aggregate Market Value (AMV) of publicly held shares must be at least $15,000,000; and finally the Stock price/Market Value of the shares held publicly are required to be a minimum price of $3.00 per share. Our initial $5,000,000 we are seeking to raise is our first stage, that will meet the first 3 requirements for qualification and when we get our Regulation A+ offering qualified by the SEC then we will automatically transition into that offering raising up to $75,000,000 which will help us meet the last 2 requirements to qualify for our direct listing.

 

The Securities Exchange Commission has now streamlined this process for small businesses to access public liquidity. Acquiring real estate makes our small business highly scalable and since our inception we have bootstrapped our cooperative model out of our own pockets, to reduce the initial costs of implementing this innovative business model under the exemptions provided by the Jobs Act. We have a minimum investment under this offering of only $120 and I hope that you will join us in our journey.

 

 

 
 
 

Updates


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Documents

Business Plan Summary Download
Use of Proceeds Download
Offering Memorandum Download

Other Disclosures

Read the Form C filed with the SEC for other important disclosures, like financial statements, Directors, Officers, shareholders with more than 20% of voting rights, and more.
Irregular Use of Proceeds
The Company may make Irregular Use of Proceeds. Such Irregular Use of Proceeds, which may be in material amounts in excess of $10,000, may include by way of example and not limitation: Vendor payments and salary made to management, business associates, relatives, related parties and/or affiliates thereof; expenses labeled "Administration Expenses" that are not strictly for administrative purposes; expenses labeled "Travel and Entertainment"; and expenses that are for the purposes of intercompany debt or back payments.

Without limiting the above, the Company may elect to vary from the proposed use of funds as circumstances or assessments of circumstances following the closing change.
Special Note Regarding Forward-Looking Statements
This offering contains forward-looking statements within the meaning of the federal securities laws. We caution investors that any forward-looking statements presented in this offering, or which management may make orally or in writing from time to time, are based on the Company’s beliefs and assumptions made by, and information currently available to, the Company. When used, the words “anticipate,” “believe,” “expect,” “intend,” “may,” “might,” “plan,” “estimate,” “project,” “should,” “will,” “would,” “result” and similar expressions, which do not relate solely to historical matters, are intended to identify forward-looking statements. Such statements are subject to risks, uncertainties and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties and factors that are beyond the Company’s control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. While forward-looking statements reflect the Company’s good faith belief when made, they are not guarantees of future performance. The Company expressly disclaims any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Moreover, we operate in a very competitive and rapidly changing environment, and new risks emerge from time to time. It is not possible to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this offering may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. We undertake no obligation to revise or publically release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements.
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