# EDGAR Filing Document

**Accession Number:** 0001963562
**File Stem:** 0001963562-23-000001
**Filing Date:** 2023-3
**Character Count:** 111977
**Document Hash:** 473f36746d3688c45d970e1df934a959
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001963562-23-000001.hdr.sgml**: 20230327

**ACCESSION NUMBER**: 0001963562-23-000001

**CONFORMED SUBMISSION TYPE**: C/A

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20230327

**DATE AS OF CHANGE**: 20230327

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Verdir Managers LLC
- **CENTRAL INDEX KEY:** 0001963562
- **IRS NUMBER:** 920819440
- **STATE OF INCORPORATION:** TX

**FILING VALUES:**
- **FORM TYPE:** C/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-31679
- **FILM NUMBER:** 23762264

**BUSINESS ADDRESS:**
- **STREET 1:** 1213 W MOREHEAD ST. STE 527
- **CITY:** CHARLOTTE
- **STATE:** NC
- **ZIP:** 28208
- **BUSINESS PHONE:** 7045576070

**MAIL ADDRESS:**
- **STREET 1:** 1213 W MOREHEAD ST. STE 527
- **CITY:** CHARLOTTE
- **STATE:** NC
- **ZIP:** 28208

### Attached PDF Documents

**Attachment 1:** `formcsignedmarchupdate.pdf`

# **VERDIR MANAGERS LLC**

A Texas
Limited Liability Company (LLC)

## **Form C**

### **Disclosures in Reg CF Offering**

12-09-2022

# TABLE OF CONTENTS

PURPOSE OF THIS FORM

§227.201 (a) BASIC INFORMATION ABOUT THE COMPANY
§227.201 (b) DIRECTORS AND OFFICERS OF THE COMPANY
§227.201 (c) EACH PERSON WHO OWNS 20% OR MORE OF THE VOTING POWER
§227.201 (d) THE COMPANY'S BUSINESS AND BUSINESS PLAN
§227.201 (e) NUMBER OF EMPLOYEES
§227.201 (f) RISKS OF INVESTING
§227.201 (g) TARGET OFFERING AMOUNT AND OFFERING DEADLINE
§227.201 (h) COMMITMENTS THAT EXCEED THE TARGET OFFERING AMOUNT
§227.201 (i) HOW THE COMPANY INTENDS TO USE THE MONEY RAISED IN THE OFFERING
§227.201 (j) THE INVESTMENT PROCESS
§227.201 (k) MATERIAL CHANGES
§227.201 (l) PRICE OF THE SECURITIES
§227.201 (m) TERMS OF THE SECURITIES
§227.201 (n) THE FUNDING PORTAL
§227.201 (o) COMPENSATION OF THE FUNDING PORTAL
§227.201 (p) INDEBTEDNESS OF THE COMPANY
§227.201 (q) OTHER OFFERINGS OF SECURITIES WITHIN THE LAST THREE YEARS
§227.201 (r) TRANSACTIONS BETWEEN THE COMPANY AND "INSIDERS"
§227.201 (s) THE COMPANY'S FINANCIAL CONDITION
§227.201 (t) THE COMPANY'S FINANCIAL STATEMENTS
§227.201 (u) DISQUALIFICATION EVENTS
§227.201 (v) UPDATES ON THE PROGRESS OF THE OFFERING
§227.201 (w) ANNUAL REPORTS FOR THE COMPANY
§227.201 (x) OUR COMPLIANCE WITH REPORTING OBLIGATIONS
§227.201 (y) OTHER IMPORTANT INFORMATION PROSPECTIVE INVESTORS SHOULD KNOW ABOUT
EXHIBIT A: SOURCES AND USES OF FUNDS
EXHIBIT B: OPERATING PRO-FORMA
EXHIBIT C: RISKS OF INVESTING
EXHIBIT D: INVESTMENT AGREEMENT
EXHIBIT E: LLC AGREEMENT
EXHIBIT F: SUMMARY OF LLC AGREEMENT
EXHIBIT G: SUMMARY OF FEDERAL INCOME TAX CONSEQUENCES
EXHIBIT H: FINANCIAL STATEMENTS
EXHIBIT I: BACKGROUND CHECKS

1

## Company Disclosures

### Purpose of This Form

A Company that wants to raise money using Regulation Crowdfunding must give certain information to prospective Investors, so Investors will have a basis for making an informed decision. The Securities and Exchange Commission, or SEC, has issued regulations at 17 CFR §227.201 listing the information companies must provide. This form - Form C - is the form used to provide that information.

Each heading below corresponds to a section of the SEC's regulations. In some cases, we've provided instructions for the Company completing this form.

### §227.201(a) - Basic Information About the Company

| Name of Company | Verdir Managers LLC |
| --- | --- |
| State of Organization (not necessarily where the Company operates, but the State in which the Company was formed) | Texas |
| Date Company Was Formed (from the Company's Certificate of Formation) | 09-08-2022 |
| Kind of Entity | Limited Liability Company (LLC) |
| Street Address | 1213 W Morehead St. STE 527 Charlotte, North Carolina 28208 |
| Website Address | www.qccapitalgroup.com |

|  | Most Recent Fiscal Year | Previous Fiscal Year |
| --- | --- | --- |
| Total Assets | 0 | 0 |
| Cash & Equivalents | 0 | 0 |
| Account Receivable | 0 | 0 |
| Short-Term Debt | 0 | 0 |

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| Long-Term Debt | 0 | 0 |
| --- | --- | --- |
| Revenues/Sales | 0 | 0 |
| Cost of Goods Sold | 0 | 0 |
| Taxes Paid | 0 | 0 |
| Net Income | 0 | 0 |

### §227.201(b) - Directors and Officers

#### Person #1

| Name | Christopher Salerno |  |
| --- | --- | --- |
| All positions with the Company and How Long for Each Position | Position: CEO | How Long: Since formation |
| Business Experience During Last Three Years (Brief Description) | In 2019, Mr. Salerno founded QC Capital and has since acquired over $100M in commercial real estate assets across the United States. As CEO, Mr. Salerno oversees all business operations and is responsible for the firm's overall direction and strategy. |  |
| Principal Occupation During Last Three Years | CEO- Multifamily investor |  |
| Has this Person Been Employed by Anyone Else During the Last Three Years? | No |  |

#### Person #2

| Name | Ian Djuric |  |
| --- | --- | --- |
| All positions with the Company and How Long for Each Position | Position: Partner | How Long: Since formation |
| Business Experience During Last Three Years (Brief Description) | I founded Premier Waste, personally recruited a top-notch sales team, and grew the company to |  |

3

|  | eight-figures in annual sales. After selling Premier Waste to a multibillion-dollar private equity company in late 2019. Since, I have been a real estate sponsor and developer. |
| --- | --- |
| Principal Occupation During Last Three Years | Real Estate Sponsor and Developer |
| Has this Person Been Employed by Anyone Else During the Last Three Years? | No |

# **§227.201(c) - Each Person Who Owns 20% or More of the Voting Power**

| Name | Christopher Salerno |
| --- | --- |
| Name | Ian Djuric |

4

## §227.201(d) - The Company's Business and Business Plan

### About the Project

The QC Capital (the Manager) has identified Verdir at Hermann Park apartments for acquisition. The Verdir at Hermann Park apartments features 224 apartments in peaceful, desirable Houston, TX. The property features one-, two- and three-bedroom apartment homes ranging from 670 square feet to 1,425 square feet. It has been exceptionally well maintained by previous ownership.

The property is conveniently located in the heart of Houston and offers residents convenient access to multiple economic demand drivers, retail, and job opportunities near the Texas Medical Center (TMC). Additionally, Houston's TMC area has seen an impressive year over year rent growth of 10% as well as positive multifamily fundamentals, which positions the property for growth for years to come.

Built in 2004, Verdir at Hermann Park is a well-maintained Class A asset in the heart of the medical center with significant opportunity for modernized interior renovations and exterior renovations. The business plan is to capitalize on improving the existing operational inefficiencies, renovating the unit interiors with modern upfits, and improving the common areas while still maintaining competitive rental rates.

Rental rates will be increased while interior renovations are being completed on all units to be renovated over a 24-36 month time frame.

### About the Finances

HUD loan assumption.

The following chart summarizes the cost of the project and how we plan to pay for it:

| Projects costs |  |
| --- | --- |
| Building purchase | $44,200,000 |
| Capital Expense Reserve | $4,705,252.00 |
| Lender Debt Reserves | $310,348.00 |
| Acquisition Fee | $1,272,925.00 |
| Partnership Closing Costs | $3,324,139.00 |
| Financing Costs | $578,745.00 |

5

| Sponsor Fees | $254,227.00 |
| --- | --- |
| Total use of Funds | $54,990,250.00 |
| Bank loan | $28,937,255 52.6% of project cost |
| Equity (Raised form Various Sources including this offering.) | $26,052,995 47.6% of project cost |
| Total sources | 100% |

### About the Sponsor

The QC Capital Team has been investing in commercial real estate assets since 2018 and has a portfolio in excess of $120M with 800+ apartment units.

### Bios and backgrounds

#### Chris Salerno

Chris Salerno is an entrepreneur and investment manager with a history of success in building and rebuilding profitable businesses. Mr. Salerno found early success in the residential brokerage space where he successfully transacted over $40 million in sales and helped lead the #1 real estate team in the Carolinas to produce more than $140mm in annual volume.

In 2019, Mr. Salerno founded QC Capital and has since acquired over $100M in commercial real estate assets across the United States. As CEO, Mr. Salerno oversees all business operations and is responsible for the firm's overall direction and strategy.

Named to Charlotte's 30 under 30, Elite 50, Elite 50 entrepreneurs, 30 under 30 entrepreneurs, and nominated for Forbes 30 under 30, Mr. Salerno has quickly gained recognition, and notoriety for his hard work, and dedication.

www.qccapitalgroup.com

<https://www.linkedin.com/in/salerno2/>

#### Ian Djuric

Ian Djuric is currently a managing member of the Djuric Family Office which oversees the Djuric family's real estate portfolio and equity investments. From 2007-2019 Mr. Djuric owned/managed four (4) highly successful waste management companies all of which were successfully repositioned and then sold. Mr.

6

Djuric provides QC Capital with growth-focused sales experience coupled with a 12-year track record as a detailed operations executive.

<https://www.linkedin.com/in/ian-djuric/>

#### **§227.201(e) - Number of Employees**

The company was created to be a General Partner in purchase of Verdir at Hermann Park and currently has no employees.

#### **§227.201(f) - Risks of Investing**

##### **Required Statement:**

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment.

In making an investment decision, Investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document.

The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature.

These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.

##### **Additional statement:**

There are numerous risks to consider when making an investment such as this one and financial projections are just that - projections. Returns are not guaranteed. Conditions that may affect your investment include unforeseen construction costs, changes in market conditions, and potential disasters that are not covered by insurance. Review the attached *Exhibit C: Risks of Investing* for a more expansive list of potential risks associated with an investment in this Company.

#### **§227.201(g) - Target Offering Amount and Offering Deadline**

##### **Required Statement:**

The minimum amount the Company is trying to raise in this offering - our “target amount” - is $250,000. If we have not raised at least the target amount by 06-01-2023 - our “offering deadline” - then we will terminate the offering and return all the money to investors.

If we do raise the target amount by the offering deadline then we will take the money raised and begin to use it. We will also continue trying to raise money up to our $5,000,000 maximum.

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If we reach our target amount before the offering deadline we might close the offering early, but only if we provide at least five days' notice of the new offering deadline.

Invown will notify investors when and if the target amount has been raised.

# **§227.201(h) - Commitments that Exceed the Target Offering Amount**

| Will the Company accept commitments that exceed the Target Offering Amount? | Yes |
| --- | --- |
| What is the maximum you will accept in this Offering (it may not exceed $5,000,000)? | $5,000,000 |
| If Yes, how will the Company deal with the oversubscriptions? | All capital will be placed into the deal. Excess cash will be used for Capital Expenditures and Working Capital for the Property. |

8

# **§227.201(i) - How the Company Intends to Use the Money Raised in the Offering**

**The Company is Reasonably Sure it Will Use the Money as Follows:**

If we raise the target amount of $250000:

| Use of Money | How Much (approximately) |
| --- | --- |
| Other Costs of the Offering (e.g., legal and accounting fees) | $ |
| Capital raise cost (platform fee) | $12,500 |
| Cost of Construction | $ |
| Real Estate Commissions | $6,250 |
| Purchase and operations of Property | $231,250 |
| TOTAL | $250000 |

If we raise the maximum goal of $5000000:

| Use of Money | How Much (approximately) |
| --- | --- |
| Other Costs of the Offering (e.g., legal and accounting fees) | $ |
| Capital raise cost (platform fee) | $125,000 |
| Cost of Construction | $ |
| Real Estate Commissions | $125,000 |
| Purchase and operations of property | $4,750,000 |
| TOTAL | $5,000,000 |

# **§227.201(j) - The Investment Process**

**To Invest**

- Review this Form C and the Campaign Page;
- If you decide to invest, press the *Invest Now* button
- Follow the instructions

9

The minimum amount you can invest in the offering is $25,000. Investments above the minimum may be made in increments of $25,000.

As part of the investment process, you will be asked to sign our Investment Agreement, which is attached as Exhibit 1.

#### **To Cancel Your Investment**

You can cancel all or any portion of your investment commitment until 29th March 2023 11:59pm (48 hours before the offering deadline).

To cancel your investment go on to invown and log into your account and go to your dashboard where you will see the investment and then click on the cancel button by that time and date. Include your name and the name of the Company.

If you do not cancel your investment commitment by that time and date, your money will be released to the Company upon closing of the offering and you will receive securities in exchange for your investment.

For more information about the investment and cancellation process, see the Educational Materials on the Platform.

#### **§227.201(k) - Material Changes**

##### **Required Statement**

If an investor does not reconfirm his or her investment commitment after a material change is made to the offering, the investor's investment commitment will be canceled, and the committed funds will be returned

#### **§227.201(l) - Price of the Securities**

The Company is offering “securities” in the form of limited liability company interests, which we refer to as “Class A Shares.” The price is $5000 for each Class A Share.

We arrived at the price as follows:

- We estimated how much money we need to complete the project.
- We estimated the value of the project when it's completed.
- We estimated what we believe is a fair return to Investors.
- Based on those estimates, we established the manner for sharing profits in our LLC Agreement.

10

# **§227.201(m) - Terms of the Securities**

# **Overview**

The Company is offering “securities” in the form of limited liability company interests, which we refer to as “Class A Shares.” When you purchase an Investor Share, you will become an owner of the Company, which is a Texas limited liability company. Your ownership will be governed by the limited liability company Agreement of the Company dated and any amendments to that agreement (whether adopted now or in the future), which are together referred to as the “LLC Agreement.” A copy of the LLC Agreement is attached as *Exhibit F: LLC Agreement*.

# **Your Right to Distributions**

If the Company is profitable, it will make distributions to its owners from time to time.

Under the LLC Agreement, distributions fall in two categories: distributions from the rental operations of the property; and distributions from the sale or refinancing of the property.

Distributions from rental operations will be distributed as follows:

- (a) First, to investors until they have received a cumulative, non-compounded return of 7% per year on their invested capital (the “Preferred Return”).
- (b) Second, investors have received his, her, or its Base Preferred Return accrued through the date of distribution, all remaining Operating Cash Flow shall be distributed 70% to the investors and 30% to the Manager until each investor has received his, her, or its 13% Second Tier Preferred Return accrued through the date of distribution.
- (c) 50% to the investors and 50% to the Manager.

Distributions from sale or refinancing transaction will be distributed as follows:

- (a) First, to investors in the amount of their unpaid Preferred Return.
- (b) Second, to investors to return all their capital.
- (c) Third, 70% to the investors and 30% to the Manager until each Class A Member has received his, her, or its 13% Second Tier Preferred Return accrued through the date of distribution.
- (d) 50% to the investors and 50% to the Manager.

For any year that the Company realizes a taxable profit or gain, the Company will try to distribute at least enough money to you to pay any associated Federal and State income tax liabilities.

# **Obligation to Contribute Capital**

Once you pay for your Class A Shares, you will have no obligation to contribute more money to the Company, and you will not be personally obligated for any debts of the Company. However, under some circumstances you could be required by law to return some or all of a distribution you receive from the Company.

11

### **No Voting Rights**

Although you will be an owner of the Company, you will generally not have the right to vote or otherwise participate in the management of the Company. Instead, the Manager will control all aspects of the Company's business. For all practical purposes you will be a passive Investor.

12

## **No Right to Transfer**

Class A Shares will be illiquid (meaning you might not be able to sell them) for four reasons:

- The LLC Agreement prohibits the sale or other transfer of Class A Shares without the Manager's consent.
- If you want to sell your Class A Shares the Manager will have the first right of refusal to buy them, which could make it harder to find a buyer.
- Even if a sale were permitted, there is no ready market for Class A Shares, as there would be for a publicly-traded stock.
- For a period of one year, you won't be allowed to transfer the Class A Shares except (i) to the Company itself, (ii) to an "accredited" Investor, (iii) to a family or trust, or (iii) in a public offering of the Company's shares.

As a result, you should plan to hold your Class A Shares until the Company is dissolved.

## **Modification of Terms of Class A Shares**

The terms of the Class A Shares may be modified or amended only with the consent of the Manager and investors owning a majority of the Class A Shares.

## **Other Classes of Securities**

As of now, the Company has only two classes of securities: Class A Shares and Class B Shares. The Investors in this Offering (which may include the Sponsor and its affiliates) will own all the Class A Shares, while all the Class B Shares will be owned by the Manager.

Whereas the owners of the Class A Shares have no right to vote or otherwise participate in the management of the Company, the Manager, who will own all the Class B Shares, has total control over all aspects of the Company and its business.

## **Dilution of Rights**

Under the LLC Agreement, the Manager has the right to create additional classes of securities, including classes of securities with rights that are superior to those of the Class A Shares. For example, the Manager could create a class of securities that has the right to vote and/or the right to receive distributions before the Class A Shares.

## **The Person Who Controls the Company**

Christopher Salerno owns majority interests in the Manager, and the Manager has complete control over the Company. Chris Salerno owns 80% of voting power and Ian Djuric owns 20%.

13

### How the Manager's Exercise of Rights Could Affect You

- The Manager has full control over the Company and the actions of the Manager could affect you in a number of different ways, including these:
- The Manager decides whether and when to sell the project, which affects when (if ever) you will get your money back. If the Manager sells the project "too soon," you could miss out on the opportunity for greater appreciation. If the Manager sells the project "too late," you could miss out on a favorable market.
- The Manager decides when to make distributions, and how much. You might want the Manager to distribute more money, but the Manager might decide to keep the money in reserve or invest it into the project.
- The Manager could decide to hire himself or his relatives to perform services for the Company and establish rates of compensation higher than fair market value.
- The Manager could decide to refinance the project. A refinancing could raise money to distribute, but it could also add risk to the project.
- The Manager decides on renting the project, including the terms of any lease.
- The Manager decides how much of its own time to invest in the project.
- The Manager could decide to raise more money from other Investors and could decide to give those Investors a better deal.

### How the Securities are Being Valued

The price of the Class A Shares was determined by the Manager based on the Manager's opinion about the value of the project.

The Manager doesn't expect there to be any reason to place a value on the Class A Shares in the future. If we had to place a value on the Class A Shares, it would be based on the amount of money the owners of the Class A Shares would receive if the project were sold.

### Risks Associated with Minority Ownership

Owning a minority interest in a Company comes with risks, including these:

- The risk that the person running the Company will do a bad job.
- The risk that the person running the Company will die, become ill, or just quit, leaving the Company in limbo.
- The risk that your interests and the interests of the person running the Company aren't really aligned.
- The risk that you'll be "stuck" in the Company forever.
- The risks that the actions taken by the person running the Company - including those listed above under "How the Manager's Exercise of Rights Could Affect You" - won't be to your liking or in your interest.

14

### **§227.201(n) - The Funding Portal**

The Company is offering its securities through Invown Portal, LLC, which is a “Funding Portal” licensed by the Securities and Exchange Commission and FINRA. The SEC File number is 0001886151 and the Funding Portal Registration Depository (FPRD) number is 312976.

### **§227.201(o) - Compensation of the Funding Portal**

The Company will compensate Invown Portal, LLC as follows:

An administrative fee of 2% of invested capital; plus

A success fee up to 5% of the amount raised.

Invown Portal, LLC owns no interest in the Company, directly or indirectly, and will not acquire an interest as part of the Offering, nor is there any arrangement for Invown Portal, LLC to acquire an interest.

### **§227.201(p) - Indebtedness of the Company**

The company currently has no debt.

### **§227.201(q) - Other Offerings of Securities within the Last Three Years**

Verdir Managers LLC has made no other offerings in the last three years.

### **§227.201(r) - Transactions Between the Company and “Insiders”**

This is a new entity with no prior transactions

### **§227.201(s) - The Company’s Financial Condition**

#### **Liquidity**

The Company was organized under the Texas Limited liability company Act on 09-09-2022. As of now, we have not yet begun operations other than those associated with general start-up and organizational matters. We have no revenues and very minimal liquid resources (cash).

We intend to use the proceeds of this Offering to buy and operate the project, as described in our business plan, as soon as the Offering closes. We will also use debt (borrow money) to finance a portion of the costs.

If we cannot raise money in this Offering, or cannot borrow money on the terms we expect, then the Company will probably dissolve.

15

## Capital Resources

As of now, we have not purchased any assets or entered into any agreements to do so. We expect to buy the project as soon as we raise money from Investors in this Offering. Given the size of the purchase as is common in real estate deals of this size there are other sources of capital from other capital providers through other General Partner entities as well as a loan. One such entity is QC Fund II who is continuing to raise capital from accredited investors as a 506(c) offering.

## Historical Results of Operations

The Company is in the development stage and has no history of operations.

## Changes and Trends

We are not aware of any changes or trends in the financial condition or operations of the Company since the date of the financial information provided in this Form C.

## §227.201(t) - The Company’s Financial Statements

Our financial statements are attached as *Exhibit H: Financial Statements*

## §227.201(u) - Disqualification Events

### Explanation for Investors

A Company is not allowed to raise money using Regulation Crowdfunding if certain designated people associated with the Company (including its directors or executive officers) committed certain prohibited acts (mainly concerned with violations of the securities laws) on or after May 16, 2016. (You can read more about those rules in the Educational Materials posted on SmallChange.com). This item requires a Company to disclose whether any of those designated people committed any of those prohibited acts before May 16, 2016.

A Company called North Capital ran background checks on the principals of the Company (*i.e.*, those covered by this rule). You can see the North Capital reports attached as Exhibit I: Background Checks.

| Have any of those designated people committed any of those prohibited acts before May 16, 2016? | No |
| --- | --- |

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# **§227.201(v) - Updates on the Progress of the Offering**

You can track our progress in raising money for the offering on the Platform.

# **227.201(w) - Annual Reports for the Company**

We will file a report with the Securities and Exchange Commission annually and post the report on our website at , no later than 120 days after the end of each fiscal year.

It’s possible that at some point, the Company won’t be required to file anymore annual reports. We will notify you if that happens.

# **§227.201(x) - Our Compliance with Reporting Obligations**

# **Explanation for Investors**

This item requires a Company to disclose whether it has ever failed to file the reports required by Regulation Crowdfunding.

| Has the Company ever raised using Crowdfunding before? | No |
| --- | --- |

The Company has never raised money using Regulation Crowdfunding before, and therefore has never been required to file any reports.

# **§227.201(y) - Other Important Information Prospective Investors Should Know About**

NA

17

EXHIBIT A: SOURCES AND USES OF FUNDS

## USE OF PROCEEDS

The gross proceeds of the Offering are expected to be no more than $5,000,000 assuming all of the Units offered are sold. In addition, the Company intends to obtain a mortgage loan in the amount of approximately $29,000,000.00. The Company expects that the net proceeds from the sale of Units offered in this Offering and through our QC Capital Fund II 506(C) Offering, together with the proceeds of the mortgage loan are *estimated* to be used as follows:

| Use | Estimated Dollar Amount |
| --- | --- |
| Purchase Price of the Project | $44,200,000.00 |
| Capital Expense Reserve | $4,705,252.00 |
| Lender Debt Reserves | $310,348.00 |
| Acquisition Fee | $1,272,925.00 |
| Partnership Closing Costs | $3,324,139.00 |
| Financing Costs | $578,745.00 |
| Sponsor Fees | $254,227.00 |
| Closing Costs (excluding financing) | $347,238.00 |
| Total use of Funds | $54,990,250.00 |

Initially the funds from this Offering together with the proceeds of other equity investments, such as QC Capital Fund II, and the loan will be used to acquire the Project and pay

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Project acquisition and related costs and expenses. Note that the loan referenced above is a pre-existing loan that Company is assuming in the acquisition of this project. There can be no assurance that all the Units offered in the Offering will be sold or that the Company will obtain the mortgage loan. The above is an estimate only, and the Company may vary the use of proceeds in any amount it deems appropriate in light of the actual amount of proceeds received and future business developments.

Pending the uses outlined above, such proceeds will be invested in short-term commercial paper, money market obligations or similar instruments, or as the Managers otherwise deem appropriate.

19

EXHIBIT B: OPERATING PRO-FORMA

Pro Forma Projections

|  | T1E | Per Unit | Year 1 | Per Unit | Year 2 | Year 3 | Year 4 | Year 5 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| INCOME |  |  |  |  |  |  |  |  |
| Gross Potential Rent | $1,723,472 | $18,733 | $1,842,017 | $20,022 | $2,008,782 | $2,164,471 | $2,234,816 | $2,307,448 |
| Loss to Lease | -$234,218 | -$49 | -$94,421 | -$20 | -$20,088 | -$21,645 | -$22,348 | -$23,074 |
| Renovation Premiums |  |  | $40,131 | $0 | $47,427 | $0 | $0 | $0 |
| NET POTENTIAL RENT | $1,489,254 | $16,188 | $1,787,727 | $19,432 | $2,056,121 | $2,143,826 | $2,212,668 | $2,284,373 |
| Vacancy Loss | -$81,445 | -$885 | -$82,675 | -$899 | -$110,256 | -$96,427 | -$99,561 | -$102,797 |
| Concessions/Non-Rev | -$280 | -$3 | -$5,067 | -$55 | -$10,181 | -$10,714 | -$11,062 | -$11,422 |
| Bad Debt | -$1,575 | -$17 | -$8,391 | -$91 | -$10,181 | -$10,714 | -$11,062 | -$11,422 |
| TOTAL RENTAL INCOME | $1,405,953 | $16,188 | $1,691,593 | $18,387 | $1,905,504 | $2,024,971 | $2,090,782 | $2,158,733 |
| RUBS/Submeter | $61,213 | $665 | $62,138 | $675 | $64,623 | $67,208 | $69,896 | $72,692 |
| Other Income | $69,822 | $759 | $70,909 | $771 | $76,960 | $80,038 | $83,240 | $86,570 |
| EFFECTIVE GROSS INCOME | $1,535,957 | $17,612 | $1,624,640 | $19,633 | $2,047,057 | $2,172,217 | $2,243,919 | $2,317,955 |
| YoY Increase |  |  | 19% |  | 12% | 6% | 3% | 3% |
| OPERATING EXPENSES |  |  |  |  |  |  |  |  |
| Payroll | $138,475 | $1,505 | $154,560 | $1,680 | $157,651 | $160,804 | $164,020 | $167,301 |
| Contract Services | $4,556 | $50 | $9,055 | $98 | $9,384 | $9,572 | $9,763 | $9,958 |
| Repairs & Maintenance | $19,728 | $214 | $17,203 | $187 | $17,360 | $17,708 | $18,062 | $18,423 |
| Turnover | $18,190 | $198 | $23,722 | $258 | $24,197 | $24,681 | $25,174 | $25,678 |
| Utilities | $7,993 | $87 | $7,969 | $87 | $8,164 | $8,327 | $8,494 | $8,664 |
| Administrative | $5,484 | $60 | $26,714 | $290 | $28,152 | $28,715 | $29,289 | $29,875 |
| Marketing | $40,034 | $435 | $46,000 | $500 | $34,500 | $35,190 | $35,894 | $36,612 |
| Other | $215,282 | $2,340 | $221,416 | $2,407 | $215,832 | $220,149 | $224,552 | $229,043 |
| Insurance | $324 | $4 | $46,000 | $500 | $47,280 | $48,228 | $49,201 | $50,194 |
| Management Fee | $42,354 | $460 | $72,986 | $793 | $81,883 | $86,889 | $89,757 | $92,720 |
| Property Taxes | $300,001 | $3,261 | $440,130 | $4,784 | $448,933 | $457,911 | $467,069 | $476,411 |
| TOTAL OPERATING EXPENSES | $792,420 | $8,613 | $1,065,754 | $11,584 | $1,073,337 | $1,098,173 | $1,121,276 | $1,144,878 |
| % of ECI | 52% |  | 58% |  | 52% | 51% | 50% | 49% |
| NET OPERATING INCOME | $744,567 | $8,093 | $758,886 | $8,249 | $973,750 | $1,074,044 | $1,122,643 | $1,173,116 |
| YoY Increase |  |  | 2% |  | 28% | 10% | 5% | 4% |

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## EXHIBIT C: RISKS OF INVESTING

### Risks of Investing

THE PURCHASE OF CLASS A SHARES IS SPECULATIVE AND INVOLVES SIGNIFICANT RISK, INCLUDING THE RISK THAT YOU COULD LOSE ALL YOUR MONEY OR EVEN MORE. THE PURCHASE OF CLASS A SHARES IS SUITABLE ONLY FOR INVESTORS WHO FULLY UNDERSTAND AND ARE CAPABLE OF BEARING THE RISKS. SOME OF THE RISKS ARE DESCRIBED BELOW. THE ORDER IN WHICH THESE RISKS ARE DISCUSSED IS NOT INTENDED TO SUGGEST THAT SOME RISKS ARE MORE IMPORTANT THAN OTHERS.

**You Might Lose Some or All of Your Money:** When you buy a certificate of deposit from a bank, the Federal government (through the FDIC) guarantees you will get your money back. Buying Class A Shares is not like that at all. The ability of the Company to make the distributions you expect, and ultimately to give you your money back, depends on a number of factors, including some beyond our control. Nobody guarantees that you will receive distributions and you might lose some or all of your money.

**Risks from COVID-19:** As a result of the COVID-19 pandemic, the world economy suffered the sharpest and most severe slowdown since at least the Great Depression. Although some segments of the economy have recovered, others have not. Moreover, the recovery has been fueled by enormous deficit spending by the Federal government and historic actions by the Federal Reserve to provide liquidity, neither of which is sustainable in the long term. The lingering effects of COVID-19 will affect real estate assets in a number of ways, both positively and negatively. We believe the Project will be successful notwithstanding any negative effects, but neither we nor anyone else knows for certain what the real estate landscape will look like in the future.

**Risks of Real Estate Industry:** Real estate can be risky and unpredictable. For example, many experienced, informed people lost money when the real estate market declined in 2007-8. Time has shown that the real estate market goes down without warning, sometimes resulting in significant losses. Some of the risks of investing in real estate include changing laws, including environmental laws; floods, fires, and other acts of God, some of which are uninsurable; changes in national or local economic conditions; changes in government policies, including changes in interest rates established by the Federal Reserve; and international crises. The real estate market has been in an upswing for 10 years, suggesting that a downturn might be in the near future.

### Sufficiency of Capital

The Company is currently in the process of attempting to raise the capital required to acquire the Project and achieve its business objectives. Although management expects the proceeds of the Offering (assuming the maximum number of Class A Units are sold, of which there can be no assurance) together with the contemplated debt financing described below to be sufficient to complete the acquisition of the Project and commence operations, additional capital may be required. If such additional capital is required, there can be no assurance that the Company will be able to obtain additional funds on terms acceptable to the Company and at times required by the Company or on terms that are not significantly dilutive to the holders of the Class A Units.

### No Operating History

While the Managers of the Company have significant experience in operating multifamily residential properties, the Company has been newly formed and has no operating history upon which an evaluation of the Company's performance and prospects can be made.

### Risks of Debt Financing

The Company expects to obtain or assume a loan to the value of approximately $29,000,000.00, pursuant to a mortgage loan or assumption of the existing mortgage loan, although there can be no assurance it will do so. Failure to complete such financing will prevent the Company from completing the purchase of the Project or require the Company to seek alternative financing which could be on terms much less favorable than currently anticipated. In such event, the returns to the investors and the

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cash flow generated by the Project could be materially and adversely affected. If the Company is not able to obtain financing acceptable to its GP Member, then the Purchase Agreement will be terminated, and any funds delivered to the Company from potential investors would be returned. To the extent it incurs debt, the Company will be subject to the risks associated with interest rates and debt financing, including the risks that the Company's cash flow from operations will be insufficient to meet required payments of principal and interest, that the Company will be unable to refinance the indebtedness on its equipment, that the terms of such refinancing will not be as favorable as the terms of the existing indebtedness and that the Company will be unable to make necessary capital expenditures for such purposes as renovations and replacements of equipment due to lack of available funds.

#### **Governmental Regulation**

Governmental authorities at the federal, state and local levels are actively involved in the promulgation and enforcement of laws and regulations relating to the environment, public access, land use, zoning restrictions and taxes. Any of these laws and regulations may be amended or modified at any time. The Company may be required to alter its operations or incur significant additional expenses in order to comply with applicable laws and regulations.

#### **Dependence on Key Personnel**

The Company is highly dependent on the skills of its management and key employees or participants, including Christopher Salerno and Ian Djuric. The loss of the services of any such individuals could have a material adverse effect on the Company's business and prospects.

#### **Arbitrary Determination of Offering Price**

The offering price for the Class A Units was determined arbitrarily by the Company and is not tied to criteria of value such as assets, earnings or book value. There can be no assurance that an independent analysis by a third party would result in the same valuation of the Company, or that the offering price bears any relationship to the fair market value of the Class A Units.

#### **Voting Control**

The Class A Units do not have voting rights. Accordingly, the holders of the Class B Units will have the exclusive right to elect members of the GP Member of the Company and to make decisions requiring the approval of the members of the Company. As a result, the Class B Units will be able to exercise control over most matters requiring member approval, including most amendments to the Company's Operating Agreement, amendments to and approval of certain transactions with managers, members and other insiders and other significant transactions including agreements to acquire or be acquired by other companies, to sell the Company's assets, and enter into financing transactions including the mortgage of the Company's assets.

#### **Control by GP Member**

The Operating Agreement provides that the GP Member of the Company has the authority to manage all aspects of the Company's business. The members of the Company will have little or no contractual right to affect the management of the Company or consent to major transactions including, amendments to and approval of transactions with managers, members and other insiders and other significant corporate transactions.

#### **Absence of Public Market; Restrictions on Transfer**

The Class A Units offered in the Offering have not been registered under the Securities Act or any state securities laws, because they are being offered for sale, and will be sold, pursuant to applicable exemptions from registration thereunder. In addition, the Operating Agreement contains significant restrictions on the transfer of Class A Units. Because (i) the Class A Units offered in the Offering have not been registered under the Securities Act or any state securities laws (and, therefore, cannot be sold or transferred, in whole or in part, unless they are subsequently registered under the Securities Act and any applicable state securities law or an exemption from such registration is available), (ii) the investors have no right to demand registration of the Class A Units offered in the Offering under the Securities Act or

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any state securities law nor does the Company have any obligation to register the Class A Units, (iii) registration is neither contemplated nor likely, (iv) transfer of the Class A Units is subject to substantial restrictions contained in the Operating Agreement of the Company and in the Subscription Agreement and (v) there will be no trading market for the Class A Units after the Offering, each investor must hold his, her or its investment in the Class A Units offered in the Offering and bear the economic risk of the investment in his, her or its Class A Units offered in the Offering for an indefinite period of time.

#### **Possibility of Phantom Income**

The Company expects to be treated as a partnership for Federal income tax purposes. As a result, each purchaser of Class A Units will be taxed directly on his, her or its allocated share of the profits, losses, and other items of income, gain or deduction of the Company without regard to whether the Company has made any distributions to such investor. There is no requirement that the Company make distributions to the Investors in an amount which will be sufficient to cover taxes an Investor may incur as a result of its ownership of Class A Units. Each purchaser of Units should consult his, her or its tax advisor before subscribing for Units hereunder to determine the tax implications to such purchaser of his, her or its investment in available Units.

**Project Value Could Decline:** Factors that could cause the value of the Project to remain stable or decline include, but are not limited to:

- • The continuing effects of the COVID-19 pandemic
- • Changes in interest rates
- • Competition from new and existing properties
- • Changes in national or local economic conditions
- • Environmental contamination or liabilities
- • Changes in the local neighborhood
- • Fires, floods, and other casualties
- • Uninsured losses
- • Undisclosed defects
- • Regulatory changes
- • Other events outside the Company's control

**Non-Paying Tenants:** In rental projects, some tenants might simply refuse to pay rent. Others might experience financial difficulties that makes it impossible to pay rent. Although we would ultimately have the legal right to evict a non-paying tenant and recover our damages, eviction proceedings can be long and expensive and if the tenant is unable to pay rent it is unlikely we could recover the damages due to us.

**Lower-Than-Expected Occupancy Levels and/or Rents:** There is no guaranty that the Project will achieve or sustain the occupancy or rent levels anticipated by our financial models. For example, a deterioration in general economic conditions caused by COVID-19 could put downward pressure on rents and occupancy levels in residential properties or prevent us from raising rents in the future. Similarly, the pandemic has called into question the need for and value of office space, possibly creating downward pressure on commercial valuations. Competition, especially from newer buildings with greater amenities, could have the same effect.

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**Incomplete Due Diligence:** The Manager has performed significant “due diligence” on the Project, meaning it has sought out and reviewed information about the Project. However, due diligence is as much an art as a science. As a practical matter, it is simply impossible to review all of the information about a given piece of real estate and there is no assurance that all of the information the Manager has reviewed is accurate or complete in all respects. For example, sometimes important information is hidden or simply unavailable, or a third party might have an incentive to conceal information or provide inaccurate information, and the Manager cannot verify all the information it receives independently. It is also possible that the Manager will reach inaccurate conclusions about the information it reviews.

**Environmental Risks:** As part of its due diligence, the Manager will conduct an environmental assessment of the Project. However, no assessment is guaranteed, meaning that we could discover environment contamination in the Project only after we buy it. Under Federal and State laws, the owner of real estate can be fully liable for environmental cleanup even if the owner did not cause the contamination and had no knowledge of the contamination when it acquired the property.

**Liability for Personal Injury:** As the owner of rental real estate, the Company will face significant potential liability for personal injury claims, *e.g.*, “slip and fall” injuries. Although the Company expects to carry insurance against potential liability in amounts we believe are adequate, it is possible that the Company could suffer a liability in excess of its insurance coverage.

**Limited Warranties from Seller:** The Company will likely obtain from the sellers of the Project only very limited warranties. In effect, the Company will buy Project on an “as is” basis.

**Casualty Losses:** Fires, flooding, mold infestations, or other casualties could materially and adversely affect the Project, even if we carry adequate insurance.

**Uninsured Losses:** We will try to ensure that the Project is covered by insurance against certain risks, including fire. However, we may not carry insurance against the risk of natural disasters like earthquakes or floods, and there might be other risks that cannot be insured or cannot be insured at affordable premiums. Further, it is possible that we may accidentally allow our insurance to lapse. If the Project was damaged or destroyed as a result of an uninsured or under-insured risk, the Company could suffer a significant loss.

**Need for Additional Capital:** The Company might require more capital, whether to finance cost overruns, to cover cash flow shortfalls, or otherwise. There is no assurance that additional capital will be available at the times or in the amounts needed, or that, if capital is available, it will be available on acceptable terms. For example, if capital is available in the form of a loan, the loan might bear interest at very high rates, or if capital is available in the form of equity, the new investors might have rights superior to those of Investors.

**Operating Expenses:** The costs of operating real estate - including taxes, insurance, utilities, and maintenance - tend to move up over time, even if the value of the real estate remains stagnant or declines. The Company will have little or no control over many of its expenses.

**ADA Compliance:** The Project will be subject to the Americans with Disabilities Act of 1990 (the “ADA”), which requires certain buildings to meet certain standards for accessibility by disabled persons. Complying with the ADA can be expensive and burdensome, and the failure to comply could lead to sanctions and expensive delays.

**Construction Risks:** The Project may require some construction, either ground-up construction or expensive renovations and/or modifications. Any construction project involves risk, including the risk of delays, cost overruns, unavailable materials, labor shortages or unrest, of inclement weather, and construction-site injuries, among others.

**Real Estate is Illiquid:** Real estate is illiquid, meaning it is harder to sell that other kinds of assets, like publicly-traded stocks. There is no guaranty that we will be able to sell the Project when we want or need to sell it. In fact, the overall economic conditions that might cause us to want or need to sell the

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Project - a prolonged market downturn, for example - are generally the same as those in which it would be most difficult to sell it.

**Risks of Relying on Third Parties:** We will engage third parties to provide some essential services. If a third party we retain performs poorly or becomes unable to fulfill its obligations, our business could be disrupted. Disputes between us and our third party service providers could disrupt our business and may result in litigation or other forms of legal proceedings (e.g., arbitration), which could require us to expend significant time, money, and other resources. We might also be subject to, or become liable for, legal claims by our tenants or other parties relating to work performed by third parties we have contracted with, even if we have sought to limit or disclaim our liability for such claims or have sought to insure the Company against such claims.

**No Right to Participate in Management of the Company:** Investors will have no right to participate in the management of the Company. You should consider buying Class A Shares only if you are willing to entrust all aspects of the Company's business to the Manager.

**Reliance on Management Team:** The Manager is a small company, with two principals. If either of our principals were to die, become seriously ill, or leave, it could damage our prospects.

**No Market for the Class A Shares; Limits on Transferability:** There are several obstacles to selling or otherwise transferring your Class A Shares:

- There will be no public market for your Class A Shares, meaning you could have a hard time finding a buyer.
- Under the LLC Agreement, the Class A Shares may not be transferred without the Manager's consent, which the Manager may withhold in its sole discretion.
- The Manager has the right to impose conditions on the sale of Class A Shares, and these conditions might not be acceptable to you.
- By law, you may not sell your Class A Shares unless they are registered under applicable securities statutes or the transfer is eligible for an exemption from registration.

Taking all that into account, you should plan to own your Class A Shares until the Project is sold.

**No Registration Under Securities Laws:** Neither the Company nor the Class A Shares will be registered with the SEC or the securities regulator of any State. Hence, neither the Company nor the Class A Shares are subject to the same degree of regulation and scrutiny as if they were registered.

**Incomplete Offering Information:** The Class A Shares are being offered pursuant to Reg CF. Reg CF does not require us to provide you with all the information that would be required in some other kinds of securities offerings, such as a public offering of securities. Although we have tried to provide all the material information we believe is necessary for you to make an informed decision, and we are ready to answer any questions you might have, it is possible that you would make a different decision if you had more information.

**Lack of Ongoing Information:** While we will provide you with periodic statements concerning the Company and the Project, we will not provide nearly all of the information that would be required of a public reporting company.

**Reduction in Your Subscription:** If we receive subscriptions from accredited investors for more than the total amount we are trying to raise in this Offering, we have the right to (1) increase the amount of money we are raising, (2) reject some of the subscriptions, or (3) reduce subscriptions. Thus, you could end up with fewer Class A Shares than you intended, or none at all.

**Lack of Cash to Pay Tax Liabilities:** The Company will be treated as a partnership for Federal income tax purposes. As such, the taxable income and losses of the Project will "pass through" the Company and be reported on the tax returns of Investors. It is possible that for one or more years, the tax liability of an Investor arising from his, her, or its share of the Company taxable income would exceed the cash distributed to the Investor for the year in question, leaving the Investor with an out-of-pocket tax cost.

**Conflicts of Interest:** Conflicts of interest could arise between the Company and Investors. For example:

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- It might be in the best interest of Investors if our management team devoted their full time and attention to the Company. However, the Company is only one of the businesses our team will manage.
- It is possible that our Manager will be involved with real estate projects that are competitive with the Project, directly or indirectly.
- The fees to be paid by the Company to the Manager and its affiliates were established by the Manager and were not negotiated at arm's length.

**The Investment Agreement Limits Your Rights:** The Investment Agreement will limit your rights in several important ways if you believe you have claims against us arising from the purchase of your Class A Shares:

- In general, your claims would be resolved through arbitration, rather than through the court system. Any such arbitration would be conducted in Houston, Texas, which might not be convenient for you.
- You would not be entitled to a jury trial.
- You would not be entitled to recover any lost profits or special, consequential, or punitive damages.
- If you lost your claim against us, you would be required to pay our expenses, including reasonable attorneys' fees. If you won, we would be required to pay yours.

**The LLC Agreement Limits Investor Rights:** The LLC Agreement limits your rights in some important respects. For example:

- The LLC Agreement significantly curtails your right to bring legal claims against management, even if they make mistakes that cost you money. For example, the LLC Agreement waives any "fiduciary duties" the Manager would otherwise owe to Investors.
- The LLC Agreement limits your right to obtain information about the Company and to inspect its books and records.
- You waive your right to have the Company dissolved by a court.
- Disputes under the LLC Agreement will be governed by Texas law and handled in Texas courts.
- By signing the LLC Agreement, you waive your right to have the Company dissolved by a court.
- The LLC Agreement restricts your right to sell or otherwise transfer your Class A Shares.

**Breaches of Security:** It is possible that our systems would be "hacked," leading to the theft or disclosure of confidential information you have provided to us. Because techniques used to obtain unauthorized access or to sabotage systems change frequently and generally are not recognized until they are launched against a target, we and our vendors may be unable to anticipate these techniques or to implement adequate preventive measures.

**The foregoing are not necessarily the only risks of investing.**

**Please consult with your professional advisors.**

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EXHIBIT D: INVESTMENT AGREEMENT

# VERDIR MANAGERS LLC

## INVESTMENT AGREEMENT

This is an Investment Agreement, entered into by and between Among VERDIR MANAGERS LLC, a Texas limited liability company (the “Company”) and AUTOFILL (“Purchaser”).

### Background

I. The Company is offering limited liability company interests on www.Invown.com (the “Platform”).

II. The Company and its members are parties to an agreement captioned “Limited Liability Company Agreement,” available as an Exhibit on the Platform, which they intend to be the sole “limited liability company agreement” of the Company within the meaning of Tex. Bus. Org. Code Ann. §101.001(1) (the “LLC Agreement”).

NOW, THEREFORE, acknowledging the receipt of adequate consideration and intending to be legally bound, the parties hereby agree as follows:

1. **Defined Terms.** Capitalized terms that are not otherwise defined in this Investment Agreement have the meanings given to them in the Company’s Form C on the Platform (the “Disclosure Document”). The Company is sometimes referred to using words like “we” and “our,” and Purchaser is sometimes referred to using words like “you,” “your,” and “its.”

2. **Purchase of LLC Interest.**

2.1. **In General.** Subject to the terms and conditions of this Investment Agreement, the Company hereby agrees to sell to Purchaser, and Purchaser hereby agrees to purchase from the Company, a limited liability company interest consisting of AUTOFILL Class A Shares) for $AUTOFILL (the “LLC Interest”).

2.2. **Reduction for Oversubscription.** If the Company receives subscriptions from qualified investors for more than the amount we are trying to raise, we may reduce your subscription and therefore the amount of your LLC Interest. We will notify you promptly if this happens.

3. **Right to Cancel.** Once you sign this Subscription Agreement, you have the right to cancel under certain conditions described in the Educational Materials at the Platform. For example, you generally have the right to cancel (i) up to 48 hours before the closing of the offering, or (ii) if there is a material change in the offering.

4. **Our Right to Reject Investment.** In contrast, we have the right to reject your subscription for any reason or for no reason, in our sole discretion. If we reject your subscription, any money you have given us will be returned to you.

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**Your LLC Interest.** You will not receive a paper certificate representing your LLC Interest. Instead, your LLC Interest will be available electronically.

# 5. **Your Promises.** You promise that:

5.1. **Accuracy of Information.** All of the information you have given to us, whether in this Investment Agreement or otherwise, is accurate and we may rely on it. If any of the information you have given to us changes before we accept your subscription, you will notify us immediately. If any of the information you have given to us is inaccurate and we are damaged (harmed) as a result, you will indemnify us, meaning you will pay any damages.

5.2. **Review of Information.** You have read all of the information in the Disclosure Document, including all the exhibits. Without limiting that statement, you have reviewed and understand the LLC Agreement.

5.3. **Risks.** You understand all the risks of investing, including the risk that you could lose all your money. Without limiting that statement, you have reviewed and understand all the risks listed under “Risks of Investing” in the Disclosure Document.

5.4. **Escrow Account.** You understand that your money might first be held in an escrow account in one or more FDIC-insured banks. If any of these banks became insolvent and the FDIC insurance is insufficient, your money could be lost.

5.5. **No Representations.** Nobody has made any promises or representations to you, except the information in the Disclosure Document. Nobody has guaranteed any financial outcome of your investment.

5.6. **Opportunity to Ask Questions.** You have had the opportunity to ask questions about the Company and the investment. All your questions have been answered to your satisfaction.

5.7. **Your Legal Power to Sign and Invest.** You have the legal power to sign this Investment Agreement and purchase the LLC Interest.

5.8. **No Government Approval.** You understand that no state or federal authority has reviewed this Investment Agreement or the LLC Interest or made any finding relating to the value or fairness of the investment.

5.9. **No Transfer.** You understand that under the terms of the LLC Agreement, the LLC Interest may not be transferred without our consent. Also, securities laws limit transfer of the LLC Interest. Finally, there is currently no market for the LLC Interest, meaning it might be hard to find a buyer. As a result, you should be prepared to hold the LLC Interest indefinitely.

5.10. **No Advice.** We have not provided you with any investment, financial, or tax advice. Instead, we have advised you to consult with your own legal and financial advisors and tax experts.

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**Tax Treatment.** We have not promised you any particular tax outcome from buying or holding the LLC Interest.

5.11. **Past Performance.** You understand that even if we have been successful with other projects, we might not be successful with this project.

5.12. **Acting on Your Own Behalf.** You are acting on your own behalf in purchasing the LLC Interest, not on behalf of anyone else.

5.13. **Investment Purpose.** You are purchasing the LLC Interest solely as an investment, not with an intent to re-sell or “distribute” any part of it.

5.14. **Anti-Money Laundering Laws.** Your investment will not, by itself, cause the Company to be in violation of any “anti-money laundering” laws, including, without limitation, the United States Bank Secrecy Act, the United States Money Laundering Control Act of 1986, and the United States International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001.

5.15. **Additional Information.** At our request, you will provide further documentation verifying the source of the money used to purchase the LLC Interest.

5.16. **Disclosure.** You understand that we may release confidential information about you to government authorities if we determine, in our sole discretion after consultation with our lawyer, that releasing such information is in the best interest of the Company or if we are required to do so by such government authorities.

5.17. **Additional Documents.** You will execute any additional documents we request if we reasonably believe those documents are necessary or appropriate and explain why.

5.18. **No Violations.** Your purchase of the LLC Interest will not violate any law or conflict with any contract to which you are a party.

5.19. **Enforceability.** This Investment Agreement is enforceable against you in accordance with its terms.

5.20. **No Inconsistent Statements.** No person has made any oral or written statements or representations to you that are inconsistent with the information in this Investment Agreement and the Disclosure Document.

5.21. **Financial Forecasts.** You understand that any financial forecasts or projections are based on estimates and assumptions we believe to be reasonable but are highly speculative. Given the industry, our actual results may vary from any forecasts or projections.

5.22. **Notification.** If you discover at any time that any of the promises in this section 6 are untrue, you will notify us right away.

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5.23. Non-U.S. Purchasers. If you are neither a citizen or a resident (green card) of the United States, then (i) the offer and sale of Class A Shares is lawful in the country of your residence, and (ii) the Company is not required to register or file any reports or documents with the country of your residence.

5.24. Additional Promises by Individuals. If you are a natural person (not an entity), you also promise that:

5.24.1. Knowledge. You have enough knowledge, skill, and experience in business, financial, and investment matters to evaluate the merits and risks of the investment.

5.24.2. Financial Wherewithal. You can afford this investment, even if you lose your money. You don't rely on this money for your current needs, like rent or utilities.

5.24.3. Anti-Terrorism and Money Laundering Laws. None of the money used to purchase the LLC Interest was derived from or related to any activity that is illegal under United States law, and you are not on any list of "Specially Designated Nationals" or known or suspected terrorists that has been generated by the Office of Foreign Assets Control of the United States Department of Treasury ("OFAC"), nor are you a citizen or resident of any country that is subject to embargo or trade sanctions enforced by OFAC.

5.25. Entity Investors. If Purchaser is a legal entity, like a corporation, partnership, or limited liability company, Purchaser also promises that:

5.25.1. Good Standing. Purchaser is validly existing and in good standing under the laws of the jurisdiction where it was organized and has full corporate power and authority to conduct its business as presently conducted and as proposed to be conducted.

5.25.2. Other Jurisdictions. Purchaser is qualified to do business in every other jurisdiction where the failure to qualify would have a material adverse effect on Purchaser.

5.25.3. Authorization. The execution and delivery by Purchaser of this Investment Agreement, Purchaser's performance of its obligations hereunder, the consummation by Purchaser of the transactions contemplated hereby, and the purchase of the LLC Interest, have been duly authorized by all necessary corporate, partnership or company action.

5.25.4. Investment Company. Purchaser is not an "investment company" within the meaning of the Investment Company Act of 1940.

5.25.5. Information to Investors. Purchaser has not provided any information concerning the Company or its business to any actual or prospective investor, except the Disclosure Document, this Investment Agreement, and other written information that the Company has approved in writing in advance.

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**Anti-Terrorism and Money Laundering Laws.** To the best of Purchaser's knowledge based upon appropriate diligence and investigation, none of the money used to purchase the LLC Interest was derived from or related to any activity that is illegal under United States law. Purchaser has received representations from each of its owners such that it has formed a reasonable belief that it knows the true identity of each of the ultimate investors in Purchaser. To the best of Purchaser's knowledge, none of its ultimate investors is on any list of "Specially Designated Nationals" or known or suspected terrorists that has been generated by the Office of Foreign Assets Control of the United States Department of Treasury ("OFAC"), nor is any such ultimate investor a citizen or resident of any country that is subject to embargo or trade sanctions enforced by OFAC.

6. **Confidentiality.** The information we have provided to you about the Company, including the information in the Disclosure Document, is confidential. You will not reveal such information to anyone or use such information for your own benefit, except to purchase the LLC Interest.

7. **Re-Purchase of LLC Interest.** If we decide that you provided us with inaccurate information or have otherwise violated your obligations, or if required by any applicable law or regulation related to terrorism, money laundering, and similar activities, we may (but shall not be required to) repurchase your LLC Interest for an amount equal to the amount you paid for it.

8. **Governing Law.** Your relationship with us shall be governed by Texas law, without considering principles of conflicts of law.

9. **Execution of LLC Agreement.** If we accept your subscription, then your execution of this Investment Agreement will also serve as your signature on the LLC Agreement, just as if you had signed a paper copy of the LLC Agreement in blue ink.

10. **Arbitration.**

10.1. **Right to Arbitrate Claims.** If any kind of legal claim arises between us as a result of your purchase of the LLC Interest, either of us will have the right to arbitrate the claim, rather than use the courts. There are only three exceptions to this rule. First, we will not invoke our right to arbitrate a claim you bring in Small Claims Court or an equivalent court, if any, so long as the claim is pending only in that court. Second, we have the right to seek an injunction in court if you violate or threaten to violate your obligations. Third, disputes arising under the LLC Agreement will be handled in the manner described in the LLC Agreement.

10.2. **Place of Arbitration; Rules.** All arbitration will be conducted in Houston, Texas, unless we agree otherwise in writing in a specific case. All arbitration will be conducted before a single arbitrator in accordance with the rules of the American Arbitration Association.

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10.3. Appeal of Award. Within thirty (30) days of a final award by the single arbitrator, you or we may appeal the award for reconsideration by a three-arbitrator panel. If you or we appeal, the other party may cross-appeal within thirty (30) days after notice of the appeal. The panel will reconsider all aspects of the initial award that are appealed, including related findings of fact.

10.4. Effect of Award. Any award by the individual arbitrator that is not subject to appeal, and any panel award on appeal, shall be final and binding, except for any appeal right under the Federal Arbitration Act, and may be entered as a judgment in any court of competent jurisdiction.

10.5. No Class Action Claims. NO ARBITRATION SHALL PROCEED ON A CLASS, REPRESENTATIVE, OR COLLECTIVE BASIS. No party may join, consolidate, or otherwise bring claims for or on behalf of two or more individuals or unrelated corporate entities in the same arbitration unless those persons are parties to a single transaction. An award in arbitration shall determine the rights and obligations of the named parties only, and only with respect to the claims in arbitration, and shall not (i) determine the rights, obligations, or interests of anyone other than a named party, or resolve any claim of anyone other than a named party, or (ii) make an award for the benefit of, or against, anyone other than a named party. No administrator or arbitrator shall have the power or authority to waive, modify, or fail to enforce this paragraph, and any attempt to do so, whether by rule, policy, arbitration decision or otherwise, shall be invalid and unenforceable. Any challenge to the validity of this paragraph shall be determined exclusively by a court and not by the administrator or any arbitrator. If this paragraph shall be deemed unenforceable, then any proceeding in the nature of a class action shall be handled in court, not in arbitration.

11. Consent to Electronic Delivery. You agree that we may deliver all notices, tax reports and other documents and information to you by email or another electronic delivery method we choose. You agree to tell us right away if you change your email address or home mailing address so we can send information to the new address.
12. Notices. All notices between us will be electronic. You will contact us by email at info@qccapitalgroup.com. We will contact you by email at the email address you provided on the Platform. Either of us may change our email address by notifying the other (by email). Any notice will be considered to have been received on the day it was sent by email, unless the recipient can demonstrate that a problem occurred with delivery. You should designate our email address as a "safe sender" so our emails do not get trapped in your spam filter.
13. Limitations on Damages. WE WILL NOT BE LIABLE TO YOU FOR ANY LOST PROFITS OR SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, EVEN IF YOU TELL US YOU MIGHT INCUR THOSE DAMAGES. This means that at most, you can sue us for the amount of your investment. You can't sue us for anything else.
14. Waiver of Jury Rights. IN ANY DISPUTE WITH US, YOU AGREE TO WAIVE YOUR RIGHT TO A TRIAL BY JURY. This means that any dispute will be heard by an arbitrator or a judge, not a jury.

32

15. Effect of Acceptance. Even when we accept your subscription by counter-signing below, you will not acquire the LLC Interest until and unless we have closed on the Offering, as described in the Disclosure Document.

16. Miscellaneous Provisions.

16.1. No Transfer. You may not transfer your rights or obligations.
16.2. Right to Legal Fees. If we have a legal dispute with you, the losing party will pay the costs of the winning party, including reasonable legal fees.
16.3. Headings. The headings used in this Investment Agreement (e.g., the word "Headings" in this paragraph), are used only for convenience and have no legal significance.
16.4. No Other Agreements. This Investment Agreement and the documents it refers to (including the LLC Agreement) are the only agreements between us.
16.5. Electronic Signature. You will sign this Investment Agreement electronically, rather than physically.

IN WITNESS WHEREOF, the undersigned has executed this Investment Agreement and the LLC Agreement effective on the date first written above.

Signature

ACCEPTED:

AMONG VERDIR MANAGERS LLC

By: QC Capital LLC
As Manager

By

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EXHIBIT E: LLC AGREEMENT

# VERDIR MANAGERS LLC

## LIMITED LIABILITY COMPANY AGREEMENT

This is an Agreement, entered into and effective on September 9, 2022, by and among VERDIR MANAGERS LLC, a Texas limited liability company (the “Company”), QC Capital LLC, a North Carolina limited liability company (“QCQ”), and the persons who purchase Class A Shares following the date of this Agreement (the “Class A Members”), which may include QCQ and its affiliates. The Class A Members and QCQ are sometimes referred to as “Members” in this Agreement.

### Background

The Members own all of the limited liability company interests of the Company and wish to set forth their understandings concerning the ownership and operation of the Company in this Agreement, which they intend to be the “limited liability company agreement” of the Company within the meaning of Tex. Bus. Orgs. Code Ann.§101.001(1).

NOW, THEREFORE, acknowledging the receipt of adequate consideration and intending to be legally bound, the parties agree as follows:

### 1. ARTICLE ONE: CONTINUATION OF LIMITED LIABILITY COMPANY

1.1. Continuation of Limited Liability Company. The Company has been formed in accordance with and pursuant to the Texas Business Organizations Code (the “Code”) for the purpose set forth below. The rights and obligations of the Members to one another and to third parties shall be governed by the Code except that, in accordance with Tex. Bus. Orgs. Code Ann. § 101.052 conflicts between provisions of the Code and provisions in this Agreement shall be resolved in favor of the provisions in this Agreement except where the provisions of the Code may not be varied by contract as a matter of law.

1.2. Name. The name of the Company shall be “VERDIR MANAGERS LLC” and all its business shall be conducted under that name or such other name(s) as may be designated by the Manager.

1.3. Purpose. The purpose of the Company shall be to acquire, own, develop, manage, lease and ultimately sell Verdir at Hermann Park located at 2380 S Macgregor Way, Houston, TX 77021. (the “Property”), as described more fully in the Company’s Form C on www.Invown.com. (the “Disclosure Document”) and engage in any other business in which limited liability companies may legally engage under the Code. In carrying on its business, the Company may enter into contracts, incur indebtedness, sell, lease, or encumber any or all of its property, engage the services of others, enter into joint ventures, and take any other actions the Manager deems advisable.

1.4. Fiscal Year. The fiscal and taxable year of the Company shall be the calendar year, or

34

such other period as the Manager determines.

## 2. ARTICLE TWO: CONTRIBUTIONS AND LOANS

**2.1. Contributions of Members.** Only Class A Members shall be required to contribute capital to the Company. QCQ shall not be required to contribute to the Company unless, and to the extent that, it chooses to become a Class A Member and make contributions as such. The capital contributions of Members are referred to in this Agreement as “Capital Contributions.”

**2.2. Other Required Contributions.** Except as provided in section 2.1, no Member shall be obligated to contribute any capital to the Company. Without limitation, no such Member shall, upon dissolution of the Company or otherwise, be required to restore any deficit in such Member’s capital account.

### 2.3. Loans.

**2.3.1. In General.** QCQ or its affiliates may, but shall not be required to, lend money to the Company in the Manager’s sole discretion. No other Member may lend money to the Company without the prior written consent of the Manager. Subject to applicable state laws regarding maximum allowable rates of interest, loans made by any Member to the Company (“Member Loans”) shall bear interest at the higher of (i) the prime rate of interest designated in the Wall Street Journal on any date within ten (10) days of the date of the loan, plus four (4) percentage points; or (ii) the minimum rate necessary to avoid “imputed interest” under section 7872 or other applicable provisions of the Internal Revenue Code of 1986, as amended (the “Code”). Such loans shall be payable on demand and shall be evidenced by one or more promissory notes.

**2.3.2. Repayment of Loans.** After payment of (i) current and past-due debt service on liabilities of the Company other than Member Loans, and (ii) all operating expenses of the Company, the Company shall pay the current and past-due debt service on any outstanding Member Loans before distributing any amount to any Member pursuant to Article Four. Such loans shall be repaid *pro rata*, paying all past-due interest first, then all past-due principal, then all current interest, and then all current principal.

**2.4. Other Provisions on Capital Contributions.** Except as otherwise provided in this Agreement or by law:

2.4.1. No Member shall be required to contribute any additional capital to the Company;

2.4.2. No Member may withdraw any part of his, her, or its capital from the Company;

2.4.3. No Member shall be required to make any loans to the Company;

2.4.4. Loans by a Member to the Company shall not be considered a contribution of capital, shall not increase the capital account of the lending Member, and shall not result in the adjustment of the number of Shares owned by a Member, and the repayment of such loans by the Company shall not decrease the capital accounts of the Members making the loans;

35

2.4.5. No interest shall be paid on any initial or additional capital contributed to the Company by any Member;

2.4.6. Under any circumstance requiring a return of all or any portion of a capital contribution, no Member shall have the right to receive property other than cash; and

2.4.7. No Member shall be liable to any other Member for the return of his, her, or its capital.

**2.5. No Third-Party Beneficiaries.** Any obligation or right of the Members to contribute capital under the terms of this Agreement does not confer any rights or benefits to or upon any person who is not a party to this Agreement.

### 3. ARTICLE THREE: SHARES AND CAPITAL ACCOUNTS

**3.1. Shares.** As of the date of this Agreement, the limited liability company interests of the Company shall be denominated by One Million Ten Thousand (1,010,000) “Shares,” of which One Million (1,000,000) shall be denominated as “Class A Shares” and Ten Thousand (10,000) as “Class B Shares.” All of the Class A Shares shall be owned by the Class A Members and all of the Class B Shares shall be, and are, owned by QCQ. The Manager may create additional classes of limited liability company interests in the future, with such rights and preferences as the Manager may determine in its sole discretion (“New Shares”).

#### 3.2. Preemptive Rights.

**3.2.1. In General.** Before issuing New Shares, the Manager shall notify each Class A Member, including in such notice the rights and preferences of the New Shares, the price of each New Share, the aggregate number of New Shares the Manager is seeking to sell, each Class A Member’s *pro rata* number of New Shares (based on the respective Capital Contributions of the Class A Members), how the proceeds from the sale of New Shares will be used. Each Class A Member shall, within fifteen (15) business days of such notice, notify the Manager of the aggregate number of New Shares such Class A Member wishes to purchase, if any. If a Class A Member fails to respond to the Manager’s notice by the close of business on the fifteenth (15$^{th}$) business day following the date of the Manager’s notice, such Class A Member shall be deemed to have declined to purchase any New Shares.

**3.2.2. Allotment.** If Class A Members wish to purchase fewer than all of the New Shares the Manager is seeking to sell, then each Class A Member shall purchase the number of New Shares such Class A Member specified in his, her, or its response, and the remaining New Shares may be sold to third parties. If Class A Members wish to purchase more than all of the New Shares the Manager is seeking to sell, then (i) each Class A Member shall be entitled to purchase that number of New Shares equal to the lower of (A) his, her or its *pro rata* number of New Shares, or (B) the number of New Shares such Class A Member specified in his, her, or its response; and (ii) if there are any New Shares remaining after applying the foregoing clause, then each Class A Member who chose to purchase a number of New Shares in excess of his, her, or its *pro rata* number shall purchase that portion of the remaining New Shares equal to a fraction, the numerator of which is the total number of New Shares such Class A Member specified in his, her, or its response and the denominator of which is the total number of New Shares specified in

36

the responses of all such Class A Members.

**3.3. Certificates.** The Shares of the Company shall not be evidenced by written certificates unless the Manager determines otherwise. If the Manager determines to issue certificates representing Interests, the certificates shall be subject to such rules and restrictions as the Manager may determine.

**3.4. Registry of Shares.** The Company shall keep or cause to be kept on behalf of the Company a register of the Members of the Company. The Company may, but shall not be required to, appoint a transfer agent registered with the Securities and Exchange Commission as such.

**3.5. Tokenization of Shares.** The Manager may, but shall not be required to, cause some or all the Shares to be represented as “tokens” using blockchain technology, with such features and attributes as the Manager may determine from time to time in its sole discretion. Each Member shall execute such documents and instruments as the Manager may reasonably request in connection with the “tokenization” of the Shares.

**3.6. Capital Accounts.** A capital account shall be established and maintained for each Member. Each Member’s capital account shall initially be credited with the amount of his, her, or its Capital Contribution. Thereafter, the capital account of a Member shall be increased by the amount of any additional contributions of the Member and the amount of income or gain allocated to the Member and decreased by the amount of any distributions to the Member and the amount of loss or deduction allocated to the Member, including expenditures of the Company described in section 705(a)(2)(B) of the Code. Unless otherwise specifically provided herein, the capital accounts of the Members shall be adjusted and maintained in accordance with Code section 704 and the regulations thereunder.

## **4. ARTICLE FOUR: DISTRIBUTIONS AND ALLOCATIONS**

### **4.1 Definitions.**

4.1.1 “Base Preferred Return” means, with respect to each Class A Member, a cumulative, non-compounded return of 7% per year on such Class A Member’s Unreturned Investment, measured from the date the Class A Member’s Capital Contribution was released from escrow and transferred to the Company’s account.

4.1.2 “Capital Transaction” means any sale, refinancing, or other transaction customarily considered as capital in nature with respect to the Property.

4.1.3 “Net Capital Proceeds” means the proceeds from a Capital Transaction (including proceeds from condemnation or insurance from damage or destruction to the extent not reinvested, other than business interruption or rental loss insurance proceeds) minus (i) the expenses the Company incurs with respect to the Capital Transaction, (ii) any repayments of debt made in connection with the Capital Transaction, (iii) brokerage commissions, (iv) other costs customarily

37

taken into account in calculating net proceeds, and (v) amounts added to Reserve Accounts.

4.1.4 'Operating Cash Flow' means cash flow from the ordinary rental operations of the Property (not from Capital Transactions), as determined in the sole discretion of the Manager, taking into account all revenue and all expenses of the Company and any additions to or withdrawals from Reserve Accounts.

4.1.5 'Reserve Accounts' means accounts established and maintained by the Company to fund anticipated cash needs.

4.1.6 'Second Tier Preferred Return' means, with respect to each Class A Member, a cumulative, non-compounded return of 13% per year on such Class A Member's Unreturned Investment, measured from the date the Class A Member's Capital Contribution was released from escrow and transferred to the Company's account.

4.1.7 'Unreturned Investment' means, with respect to any Class A Member, the amount of such Class A Member's Capital Contribution reduced by the aggregate amount of any distributions such Class A Member has received pursuant to section 4.2.2(d).

## 4.2 Distributions.

### 4.2.1 Distributions of Operating Cash Flow.

Within thirty (30) days after the end of each calendar quarter or at such other times as the Manager shall determine, the Company shall distribute its Operating Cash Flow:

(a) First, to all Class A Members until each Class A Member has received his, her, or its Preferred Return accrued through the date of distribution.

(b) Second, once each Class A Member has received his, her, or its Base Preferred Return accrued through the date of distribution, all remaining Operating Cash Flow shall be distributed 70% to the Class A Members and 30% to the holders of the Class B Shares until each Class A Member has received his, her, or its Second Tier Preferred Return accrued through the date of distribution.

(c) Third, 50% to the Class A Members and 50% to the holders of the Class B Shares.

### 4.2.2 Distributions of Net Capital Proceeds.

Within thirty (30) days after a Capital Transaction or at such other times as the Manager shall determine, the Company shall distribute its Net Capital Proceeds:

(a) First, to all Class A Members until each Class A Member has received his, her, or its Preferred Return accrued through the date of

38

distribution.

(b) Second, to all Class A Members in proportion to each Class A Member's Unreturned Investment, until the Unreturned Investment of all Class A Members has been reduced to zero.

(c) Third, once the Unreturned Investment of all Class A Members has been reduced to zero, any remaining Net Capital Proceeds shall be distributed 70% to the Class A Members and 30% to the holders of the Class B Shares until each Class A Member has received his, her, or its Second Tier Preferred Return accrued through the date of distribution.

(d) Fourth, 50% to the Class A Members and 50% to holders of the Class B Shares.

**Distributions to Fund Tax Liability.** In the event that the Company recognizes net gain or income for any taxable year, the Company shall, taking into account its financial condition and other commitments, make a good faith effort to distribute to each Member, no later than April 15th of the following year, an amount equal to the net gain or income allocated to such Member, multiplied by the highest marginal tax rate for individuals then in effect under section 1 of the Code plus the highest rate then in effect under applicable state law, if such amount has not already been distributed to such Member pursuant to this section 4.1. If any Member receives a smaller or larger distribution pursuant to this section than he would have received had the same aggregate amount been distributed pursuant to section 4.1, then subsequent distributions shall be adjusted accordingly.

**4.2.3 Tax Withholding.** To the extent the Company is required to pay over any amount to any federal, state, local or foreign governmental authority with respect to distributions or allocations to any Member, the amount withheld shall be deemed to be a distribution in the amount of the withholding to that Member. If the amount paid over was not withheld from an actual distribution (i) the Company shall be entitled to withhold such amounts from subsequent distributions, and (ii) if no such subsequent distributions are anticipated for six (6) months, the Member shall, at the request of the Company, promptly reimburse the Company for the amount paid over.

**4.2.4 Other Classes of Interest.** If, pursuant to section 3.1, the Manager creates additional classes of limited liability company interest in the future, the holders of such additional classes shall have such rights to distributions as are set forth when such additional classes are created, notwithstanding section 4.1.

**4.2.5 Manner of Distribution.** All distributions to the Members will be made as Automated Clearing House (ACH) deposits or wire transfers into an account designated by each Member. If a Member does not authorize the Company to make such ACH distributions or wire transfers into a designated Member account, distributions to such Member will be made by check and mailed to such Member after deduction by the Company from each check of a Fifty

39

![img-0.jpeg](img-0.jpeg)

25404 Highway 59  
 Suite 204  
 Porter, TX 77365  
 833-425-6678 Ext 2  
 info@ktbradleycpa.com

# VERDIR MANAGERS LLC

# Balance Sheet  
 As of Inception  
 December 31, 2022

| Assets |  |  |
| --- | --- | --- |
| Current Assets |  |  |
|  | Cash | $ - |
|  | Equipment and Furniture | $ - |
|  | Accumulated Depreciation | $ - |
| Total Current Assets |  | $ - |
| Total Assets |  | $ - |
| Liabilities |  |  |
| Current Liabilities |  |  |
|  |  | $ - |
| Total Liabilities |  | $ - |
| Equity |  |  |
|  | Retained Earnings | $ - |
|  | Net Income | $ - |
| Total Equity |  | $ - |
| Total Liabilities & Equity |  | $ - |

Page | 4

70

![img-1.jpeg](img-1.jpeg)

25404 Highway 59  
 Suite 204  
 Porter, TX 77365  
 833-425-6678 Ext 2  
 info@ktbradleycpa.com

# VERDIR MANAGERS LLC

# Income Statement

# As of Inception

December 31, 2022

| Revenue |  |  |
| --- | --- | --- |
|  | Revenue | $ - |
| Total Revenue |  | $ - |
| Cost of Goods Sold |  |  |
|  | Cost of Goods Sold | $ - |
| Total Cost of Goods Sold |  | $ - |
| Gross Profit (Loss) |  | $ - |
| Expenses |  |  |
| Total Expenses |  | $ - |
| Net Income |  | $ - |

Page | 5

71

![img-2.jpeg](img-2.jpeg)

25404 Highway 59  
 Suite 204  
 Porter, TX 77365  
 833-425-6678 Ext 2  
 info@ktbradleycpa.com

## VERDIR MANAGERS LLC

### Cash Flow Statement As of Inception December 31, 2022

| Cashflow from Operations |  |  |
| --- | --- | --- |
|  | Net Income (Loss) | $ - |
|  | Depreciation |  |
|  | Increase In Payables | $ - |
| Total Cashflows from Operations |  | $ - |
| Cashflows from Investing |  |  |
|  | Increase (Decrease) In Investments | $ - |
|  | Increase In Assets | $ - |
| Total Cashflows from Investing |  | $ - |
| Cashflow from Financing |  |  |
|  | Increase (Decrease) in Financing | $ - |
|  | Total Cashflows from Financing | $ - |
| Total Cashflows from Financing |  | $ - |
| Cashflow As of December 31, 2022 |  | $ - |

Page | 6

72

![img-3.jpeg](img-3.jpeg)

25404 Highway 59  
Suite 204  
Porter, TX 77365  
833-425-6678 Ext 2  
info@ktbradleycpa.com

## VERDIR MANAGERS LLC### NOTES TO FINANCIAL STATEMENTS

#### OPERATIONS

VERDIR MANAGERS LLC was formed in Texas as a limited liability company September 8, 2022. The Company is a real estate investment firm that purchases and manages rental properties.

#### SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

##### BASIS OF PRESENTATION

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (GAAP).

##### CASH AND CASH EQUIVALENTS

The Company considers all highly liquid securities with an original maturity of three months or less to be cash equivalents. The Company’s cash and cash equivalents in bank deposit accounts, at times, may exceed federally insured limits. As of December 30, 2022 (inception), the Company has no cash and cash equivalents.

##### REVENUE RECOGNITION

ASC Topic 606, “Revenue from Contracts with Customers” establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company applies the following five steps to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: 1) identify the contract with a customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to performance obligations in the contract; and 5) recognize revenue as the performance obligation is satisfied. As of October 3, 2022 (inception), the Company has not earned any revenue.

Page | 7

73

![img-4.jpeg](img-4.jpeg)

25404 Highway 59  
Suite 204  
Porter, TX 77365  
833-425-6678 Ext 2  
info@ktbradleycpa.com

#### **ORGANIZATIONAL COSTS**

In accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 720, organizational costs, including accounting fees, legal fees, and costs of incorporation, are expensed as incurred.

#### **INCOME TAX**

The Company, with the consent of its members, has elected under the Internal Revenue Code to be a limited liability company. In lieu of federal corporate income taxes, the member of the limited liability company is taxed individually on the Company's taxable income. Therefore, no provision of liability for federal or state income taxes has been included in the financial statements.

#### **USE OF ESTIMATES**

The preparation of financial statements, in conformity with generally accepted accounting principles, requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

#### **SIGNIFICANT RISKS AND UNCERTAINTIES**

The Company has a limited operating history and has not yet generated revenue from intended operations. The Company's business and operations are sensitive to general business and economic conditions in the U.S. along with local, state, and federal governmental policy decisions. A host of factors beyond the Company's control could cause fluctuations in these conditions, including but not limited to credit risk and changes to regulations governing the Company's industry. Adverse developments in these general business and economic conditions could have a material adverse effect on the Company's financial condition and the results of its operations.

Page | 8

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EXHIBIT I: BACKGROUND CHECKS

# North Capital Private Securities: Bad Actor Check

**Name of covered person:** Christopher Salerno

**Date:** January 9, 2023

This Bad Actor Report summarizes the results obtained from a search of court, regulatory, and agency records that cover each of the enumerated events that would trigger disqualification from offering securities under the claimed exemption from registration, or require disclosure.

| Summary Our investigation revealed that Christopher Salerno is likely: QUALIFIED | ☑ |
| --- | --- |
| Criminal Convictions Felony or misdemeanor conviction in connection with the purchase or sale of a security, involving the making of any false filing with the SEC, or arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser, or paid solicitor of purchasers of securities. Details: No information indicating a criminal conviction was found. | ☑ |
| Civil Orders, Judgments, and Decrees Order, judgment or decree of any court of competent jurisdiction that restrains or enjoins a the covered person from engaging or continuing to engage in any conduct or practice in connection with the purchase or sale of a security, involving the making of any false filing with the SEC, or arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser, or paid solicitor of purchasers of securities. Details: No information indicating a civil order, judgment, or decree was found. | ☑ |
| Regulatory Authority Orders Final order of a state securities commission, state banking regulator, state insurance commission, federal banking regulator, the U.S. Commodity Futures Trading Commission, or the National Credit Union Administration that bars the covered person from association with any entity regulated by such commission, authority, agency, or officer, engaging in the business of securities, insurance or banking, engaging in savings association or credit union activities; or that constitutes a final order based on a violation of any law or regulation that prohibits fraudulent, manipulative or deceptive conduct. Details: No information indicating a regulatory order was found. | ☑ |
| SEC Regulated Person Orders Order of the SEC entered pursuant to Section 15(b) or 15B(c) of the Securities Exchange Act, or Section 203(e) or (f) of the Investment Advisers Act of 1940 that suspends or revokes the covered person's registration as a broker, dealer, municipal securities dealer or investment adviser, places limitations on the activities, functions or operations of the covered person; or bars the covered person from being associated with any entity or participating in the offering of any penny stock. Details: No information indicating a regulated person order was found. | ☑ |

75

## North Capital Private Securities: Bad Actor Check

| SEC Cease-and-Desist Orders Order of the SEC that orders the covered person to cease and desist from committing or causing a violation of or future violation of any scienter-based anti-fraud provision of the federal securities laws; or Section 5 of the Securities Act. Details: No information indicating a SEC cease-and-desist order was found. | ☑ |
| --- | --- |
| Self-Regulatory Organization Orders Suspension or expulsion from membership in, or suspension or bar from association with a member of, a registered national securities exchange or a registered national or affiliated securities association for any act or omission to act constituting conduct inconsistent with just and equitable principals of trade. Details: No information indicating a self-regulatory organization order was found. | ☑ |
| SEC Stop Orders Participation in any registration statement or Regulation A offering statements filed with the SEC that was the subject of a refusal order, stop order, or order suspending the Regulation A exemption. Details: No information indicating a SEC stop order was found. | ☑ |
| USPO Orders United States Postal Service false representation order, or any temporary restraining order or preliminary injunction with respect to conduct alleged by the United States Postal Service to constitute a scheme or device for obtaining money or property through the mail by means of false representations. Details: No information indicating a USPO order was found. | ☑ |
| Other Information Results for searches covering a Social Security Number trace, nationwide arrests, federal and county criminal records, sex offender registry, other civil litigation, bankruptcy records, and international watch lists. This information does not impact the ability to undertake any particular securities offering. Details: No derogatory other information was found. | ☑ |

### Important Information

North Capital Private Securities provides the Bad Actor Check as a service to help securities issuers and intermediaries establish that they have conducted 'reasonable care' to discover whether any covered persons involved in the offering trigger any of the 'Bad Actor' disqualifications that prevent the issuer from conducting certain securities offerings or require disclosure.

By using the Bad Actor Check by North Capital Private Securities, you agree to indemnify North Capital Private Securities from any and all claims, responsibility, or liability that may result from the information provided by Bad Actor Report. North Capital Private Securities only checks persons that are identified to it as 'covered persons' and is not responsible for establishing whether any given individual is a 'covered person.' The public records and commercially available data sources used on these reports may have errors. Data is sometimes entered poorly, processed incorrectly and is generally not free from defect. These reports should not be relied upon as definitively accurate. Before relying on any data this report supplies, it should be independently verified. The data is for information purposes only and is not an official record. The results of the Bad Actor Check do not constitute legal advice or investment advice of any kind.

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# North Capital Private Securities: Bad Actor Check

**Name of covered person:** Ian Djuric

**Date:** January 9, 2023

This Bad Actor Report summarizes the results obtained from a search of court, regulatory, and agency records that cover each of the enumerated events that would trigger disqualification from offering securities under the claimed exemption from registration, or require disclosure.

| Summary Our investigation revealed that Ian Djuric is likely: NOT DISQUALIFIED | ! |
| --- | --- |
| Criminal Convictions Felony or misdemeanor conviction in connection with the purchase or sale of a security, involving the making of any false filing with the SEC, or arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser, or paid solicitor of purchasers of securities. Details: No information indicating a criminal conviction was found. | ✓ |
| Civil Orders, Judgments, and Decrees Order, judgment or decree of any court of competent jurisdiction that restrains or enjoins a the covered person from engaging or continuing to engage in any conduct or practice in connection with the purchase or sale of a security, involving the making of any false filing with the SEC, or arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser, or paid solicitor of purchasers of securities. Details: No information indicating a civil order, judgment, or decree was found. | ✓ |
| Regulatory Authority Orders Final order of a state securities commission, state banking regulator, state insurance commission, federal banking regulator, the U.S. Commodity Futures Trading Commission, or the National Credit Union Administration that bars the covered person from association with any entity regulated by such commission, authority, agency, or officer, engaging in the business of securities, insurance or banking, engaging in savings association or credit union activities; or that constitutes a final order based on a violation of any law or regulation that prohibits fraudulent, manipulative or deceptive conduct. Details: No information indicating a regulatory order was found. | ✓ |
| SEC Regulated Person Orders Order of the SEC entered pursuant to Section 15(b) or 15B(c) of the Securities Exchange Act, or Section 203(e) or (f) of the Investment Advisers Act of 1940 that suspends or revokes the covered person's registration as a broker, dealer, municipal securities dealer or investment adviser, places limitations on the activities, functions or operations of the covered person; or bars the covered person from being associated with any entity or participating in the offering of any penny stock. Details: No information indicating a regulated person order was found. | ✓ |

77

## North Capital Private Securities: Bad Actor Check

| SEC Cease-and-Desist Orders Order of the SEC that orders the covered person to cease and desist from committing or causing a violation of or future violation of any scienter-based anti-fraud provision of the federal securities laws; or Section 5 of the Securities Act. Details: No information indicating a SEC cease-and-desist order was found. | ☑ |
| --- | --- |
| Self-Regulatory Organization Orders Suspension or expulsion from membership in, or suspension or bar from association with a member of, a registered national securities exchange or a registered national or affiliated securities association for any act or omission to act constituting conduct inconsistent with just and equitable principals of trade. Details: No information indicating a self-regulatory organization order was found. | ☑ |
| SEC Stop Orders Participation in any registration statement or Regulation A offering statements filed with the SEC that was the subject of a refusal order, stop order, or order suspending the Regulation A exemption. Details: No information indicating a SEC stop order was found. | ☑ |
| USPO Orders United States Postal Service false representation order, or any temporary restraining order or preliminary injunction with respect to conduct alleged by the United States Postal Service to constitute a scheme or device for obtaining money or property through the mail by means of false representations. Details: No information indicating a USPO order was found. | ☑ |
| Other Information Results for searches covering a Social Security Number trace, nationwide arrests, federal and county criminal records, sex offender registry, other civil litigation, bankruptcy records, and international watch lists. This information does not impact the ability to undertake any particular securities offering. Details: Other derogatory other information was found. See Exhibit A for more information. | ! |

### Important Information

North Capital Private Securities provides the Bad Actor Check as a service to help securities issuers and intermediaries establish that they have conducted 'reasonable care' to discover whether any covered persons involved in the offering trigger any of the 'Bad Actor' disqualifications that prevent the issuer from conducting certain securities offerings or require disclosure.

By using the Bad Actor Check by North Capital Private Securities, you agree to indemnify North Capital Private Securities from any and all claims, responsibility, or liability that may result from the information provided by Bad Actor Report. North Capital Private Securities only checks persons that are identified to it as 'covered persons' and is not responsible for establishing whether any given individual is a 'covered person.' The public records and commercially available data sources used on these reports may have errors. Data is sometimes entered poorly, processed incorrectly and is generally not free from defect. These reports should not be relied upon as definitively accurate. Before relying on any data this report supplies, it should be independently verified. The data is for information purposes only and is not an official record. The results of the Bad Actor Check do not constitute legal advice or investment advice of any kind.

79

### Exhibit A

A search for lawsuits involving Ian Djuric uncovered the following:

| Court System: | Circuit Court For Anne Arundel County - Civil |
| --- | --- |
| Location: | Anne Arundel Circuit Court |
| Case Number: | C-02-CV-16-003865 |
| Title: | Premier Waste Outsourcing LLC vs. Jam Stahl Point Enterprises, LLC, et al. |
| Case Type: | Contract - Breach |
| Filing Date: | 12/20/2016 |
| Case Status: | Closed |

For more information on this case please search Ian Djuric's name at the following Maryland court record search: https://casesearch.courts.state.md.us/casesearch/inquiry-index.jsp

A news search on Ian Djuric uncovered the following:

https://www.wastedive.com/news/annapolis-md-cracks-down-on-waste-broker-cites-code-violation/507249/

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January 19, 2023

To who it may concern:

RE: Statement by Ian Djuric as a party to a contract-breach lawsuit in December 2016 (Premier Waste Outsourcing LLC vs. Jam Stahl Point Enterprises, LLC, et al).

Premier waste was a trash and recycling brokerage company that I owned. We attempted purchase Jam Point. Jam Point tried to pull out of the contract. We both sued each other. The case was settled before trial and we finished the purchase or Jam Point. This was just a basic business to business lawsuit that was settled and closed 6 years ago.

Ian Djuric

Jan 19, 2023

81

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Is this an amendment?** Yes

**Nature of Amendment:** Verdir is currently renegotiating the purchase price with the seller and expects to reach an agreement in the low $40 million range. Furthermore, the closing date will be postponed until the end of May, contingent on the approval of these revised terms.

**Name of Issuer:** Verdir Managers LLC

**Legal Status:** Limited Liability Company

**Jurisdiction of Incorporation/Organization:** TX

**Date of Organization:** 09-08-2022

**Physical Address:** 1213 W MOREHEAD ST. STE 527, CHARLOTTE, NC, 28208

**Issuer Website:** www.qccapitalgroup.com

**Is there a Co-Issuer?:** No

**Intermediary Name:** Invown Funding Portal LLC

**Intermediary CIK:** 0001886151

**Intermediary File Number:** 007-00329

### Offering Information

**Compensation to Intermediary:** The Company will compensate Invown Portal, LLC as follows: An administrative fee of 2% of invested capital; plus A success fee up to 5% of the amount raised.

**Type of Security Offered:** Preferred Stock

**Number of Securities Offered:** 50

**Price per Security:** $5,000.00

**Target Offering Amount:** $250,000.00

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** First-come, first-served basis

**Maximum Offering Amount:** $5,000,000.00

**Deadline to Reach Target Amount:** 06-01-2023

### Annual Report Disclosure Requirements

**Current Number of Employees:** 0.00

**Total Assets (Most Recent Fiscal Year):** $0.00

**Total Assets (Prior Fiscal Year):** $0.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $0.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $0.00

**Accounts Receivable (Most Recent Fiscal Year):** $0.00

**Accounts Receivable (Prior Fiscal Year):** $0.00

**Short-Term Debt (Most Recent Fiscal Year):** $0.00

**Short-Term Debt (Prior Fiscal Year):** $0.00

**Long-Term Debt (Most Recent Fiscal Year):** $0.00

**Long-Term Debt (Prior Fiscal Year):** $0.00

**Revenues/Sales (Most Recent Fiscal Year):** $0.00

**Revenues/Sales (Prior Fiscal Year):** $0.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $0.00

**Cost of Goods Sold (Prior Fiscal Year):** $0.00

**Taxes Paid (Most Recent Fiscal Year):** $0.00

**Taxes Paid (Prior Fiscal Year):** $0.00

**Net Income (Most Recent Fiscal Year):** $0.00

**Net Income (Prior Fiscal Year):** $0.00

**Jurisdictions Offered:**

ALABAMA, ALASKA, ARIZONA, ARKANSAS, CALIFORNIA, COLORADO, CONNECTICUT, DELAWARE, DISTRICT OF COLUMBIA, FLORIDA, GEORGIA, HAWAII, IDAHO, ILLINOIS, INDIANA, IOWA, KANSAS, KENTUCKY, LOUISIANA, MAINE, MARYLAND, MASSACHUSETTS, MICHIGAN, MINNESOTA, MISSISSIPPI, MISSOURI, MONTANA, NEBRASKA, NEVADA, NEW HAMPSHIRE, NEW JERSEY, NEW MEXICO, NEW YORK, NORTH CAROLINA, NORTH DAKOTA, OHIO, OKLAHOMA, OREGON, PENNSYLVANIA, PR, RHODE ISLAND, SOUTH CAROLINA, SOUTH DAKOTA, TENNESSEE, TEXAS, UTAH, VERMONT, VIRGINIA, WASHINGTON, WEST VIRGINIA, WISCONSIN, WYOMING, ALBERTA, BRITISH COLUMBIA, MANITOBA, NEW BRUNSWICK, NEWFOUNDLAND, NOVA SCOTIA, ONTARIO, PRINCE EDWARD ISLAND, QUEBEC, SASKATCHEWAN, YUKON TERRITORY, ISRAEL

### Signatures

**Issuer:** Verdir Managers LLC

**Signature:** Christopher Salerno

**Title:** CEO

---

**Signature:** Christopher Salerno

**Title:** CEO

**Date:** 03-27-2023