Investments in private placements, start-up investments in particular, are speculative and involve a high degree of risk. Investors must be able to afford the loss of their entire investment. Offers to sell, or the solicitations of offers to buy any security can be made only through official offering documents that contain important information about risks, fees, and expenses associated with the applicable securities. Investors should conduct their own due diligence, not rely on the financial assumptions or statements displayed herein, and are encouraged to consult with a financial advisor, attorney, accountant, tax advisors, and any other professional that can help you to understand and assess the risks associated with any investment opportunity. Past performance does not indicate future results. There is no guarantee that a diversified portfolio will enhance overall returns, outperform a non-diversified portfolio, or prevent against loss.
Who we are
Paradigm is a social enterprise company focused on developing inclusive residential housing communities for people with intellectual and developmental disabilities (IDD) and other neurotypical individuals..
Our Vision
Through Paradigm Development, we are building integrated living communities that offer affordable housing options and long-term solutions for families and individuals with IDD and other neurotypical individuals..
Paradigm will also work with disability service providers (DSPs) to ensure residents can access all the services they need to live happy, independent lives.
The Opportunity:
Lack of affordable housing is a crisis in the United States.
In Cincinnati and Indianapolis (the initial markets for our fund), it’s estimated that there is a combined shortage of nearly 70,000 homes.
The problem is more acute for people with intellectual and developmental disabilities. They face housing challenges on multiple fronts:
- Affordable housing is scarce. Low-income housing tax credit apartments and Section 8 housing are limited, and most market rate apartments are unaffordable.
- Even if people with IDD can find affordable housing, it typically lacks access to critical services and transportation and may be in unsafe areas.
- Communities designed specifically for IDD residents, such as licensed group homes or small apartment complexes, have very limited capacity and wait lists that can run for 10+ years.
Our Solution:
Paradigm Development is building affordable housing for people with IDD and other neurotypical individuals in Indianapolis and Cincinnati and other select markets.
Paradigm will primarily build, develop and/or renovate one and two-bedroom residential units ranging in size from 500 – 1,200 sq. ft. with a majority being resident-owned.
Our Housing Vertical
8-10+ Units: Clustered single-family or duplex homes developed in strong economic neighborhoods, near disability service organizations and community living.
20-30+ Units: Small residential communities or buildings with a mix of condominiums, townhomes, single-family / micro homes, and a clubhouse / community center for socialization.
40-60+ Units: Larger mixed-use and residential communities or buildings consisting of on-site adult day programs, clubhouse / community center, and a mix of residential condominiums, townhomes, single-family, micro-homes, and duplexes.
Strategic Alliances with Service Providers
People with IDD typically require services that include transportation, workforce training, adult day programs, and more.
Access to such services is a critical aspect of any successful housing development.
Paradigm has formed strategic alliances with Village of Merici (Indianapolis), Metzcor, and the Ken Anderson Alliance (Cincinnati) who are leading service providers in their respective cities to ensure our residents have reliable and consistent access to services.
$1,000,000
Raised
0
Investors
Offering Terms
$5,000,000
Maximum Offering
$500,000
Target Offering
$1,000
Minimum Investment
$100
Unit Price
Not FDIC or SiPC insured.
Use of Proceeds:
Based on the maximum amount of $5,000,000 is raised.
60%
3,000,000
Hard Costs
14%
$700,000
Land Costs
12%
$600,000
Soft Costs
4.5%
$225,000
Pre-Development Costs / Due Diligence
4%
$200,000
Site & Civil
2%
$100,000
Architecture
1.5%
$75,000
Earnest Money Deposits
1%
$50,000
Asset Management
1%
$50,000
General Administrative
Why Invest?
We are vertically integrated.
Paradigm has an:
- In-house architect
- Development team
- Construction company
- Property management companies
As a one stop shop, we have the in-house resources to efficiently build and develop projects in a timely manner.
We have integral relationships with disability service providers already in place and the due diligence expertise to evaluate new relationships.
We have significant track records in fundraising, building, and community development.
As a team, we can leverage our ties to the NFL and its fans to help raise awareness and our existing relationships with key service providers.
This is an urgent problem that requires immediate action.
We provide critically needed housing that can be paid for using vehicles (such as a Special Needs Trusts) that do not jeopardize access to government benefits.
Bonus Units
All Investors will be eligible to receive the number of Class A Bonus Units corresponding to the increments described in the following table. The maximum number of Class A Bonus Units that
may be issued is 6,250.
Bonus Units
2
$5,000 - $9,900 Investment
Bonus Units
5
$10,000 - $14,900 Investment
Bonus Units
10
$15,000 - $19,900 Investment
Bonus Units
2
$5,000 - $9,900 Investment
Bonus Units
5
$10,000 - $14,900 Investment
Bonus Units
10
$15,000 - $19,900 Investment
Bonus Units
20
$20,000 - $29,900 Investment
Bonus Units
35
$30,000 - $39,900 Investment
Bonus Units
50
$40,000 + Investment
Bonus Units
20
$20,000 - $29,900 Investment
Bonus Units
35
$30,000 - $39,900 Investment
Bonus Units
50
$40,000 + Investment
Management:
Ted Karras
Ted Karras, a Principal and sponsor of the company, serves as a Managing Member of the Manager (Paradigm Real Estate Management, LLC). In addition to his role in real estate management, Ted is a two-time Super Bowl champion NFL football player & the 2023 Walter Peyton Man of the Year fan vote winner, garnered over 1.5+ million votes for his philanthropic work through his Cincy Hat campaign. He has played with the New England Patriots, Miami Dolphins, and currently the starting center on the Cincinnati Bengals. Engaging in real estate acquisition and development since 2019, Ted has established himself as a successful businessman. His residential portfolio includes over 30 properties in the greater Indianapolis, IN area. Ted holds a Bachelor’s degree in Communication from the University of Illinois and an MBA in Business from the Indiana Kelley School of Business. Residing in Cincinnati, Ohio, and Fort Lauderdale, Florida, Ted is married to his wife Rachel.
Zach Douglas
Zach Douglas is a Principal and sponsor of the company, along with being a Managing Member of the Manager (Paradigm Real Estate Management, LLC). He is a devoted family man, visionary entrepreneur, and passionate sports enthusiast. Raised in Indianapolis with strong Midwestern and Catholic roots, Zach graduated in 2011 from Indianapolis Cathedral High School and earned a degree in Finance and International Business from Indiana University’s Kelley School of Business. With experience at Merrill Lynch and later Capital Group, a global investment management company, Zach ventured into real estate in 2019. In 2020, he founded Paradigm Construction & Development, specializing in acquisitions, investments, development, and investor relations. Off the jobsite, Zach plays rugby for the Indianapolis Impalas and volunteers coaching youth sports. Married to Maddie with three children—Rose, Bo, and Vince—Zach embodies unwavering commitment to family, business, and community, a testament to hard work and perseverance.
Rick Michaelis
Rick Michaelis is a Principal and sponsor of the company, along with being a Managing Member of the Manager (Paradigm Real Estate Management, LLC). Rick is a fourth-generation general contractor deeply rooted in the northside community of Indianapolis. A 2008 graduate of Cathedral High School, Rick earned a management degree from Indiana University, emphasizing city and mixed-use planning. With a background at Michaelis Corp, where he is the fourth generation in his family’s contracting legacy, he transitioned from logistics to hands-on contracting work, specializing in restoration contracting. In the
summer of 2022, Rick joined Paradigm, overseeing construction management, city planning, and permitting work, showcasing his expertise in development and zoning matters. Rick’s leadership extends beyond his professional life; he coached the Broad Ripple Youth Rugby team from 2016 to 2020, leading them to four state titles. Married to Milissa and a dedicated father to their daughter Allie, Rick maintains a robust work-life balance, making him a formidable force in contracting and community development.
Dave Leurck
Dave Leurck is a Principal and sponsor of the company, along with being a Managing Member of the Manager (Paradigm Real Estate Management, LLC). Dave is an experienced business owner and real estate developer with over 30 years of industry experience. Dave attended Miami University and graduated in 1991 with a Bachelor of Arts degree in Business Psychology. He began his career in wealth management in the early ‘90’s and shortly thereafter, started several successful businesses, including — Teller’s of Hyde Park, a successful 25-year restaurant and brewery in Cincinnati. Dave later co-founded Lantrust Real Estate Group that developed multiple mixed-use commercial and residential buildings in Greater Cincinnati and Northern Kentucky. Additionally, Dave co-founded Lantrust Securities, a broker dealer registered with FINRA and oversaw all institutional grade commercial property investments and Reg. D private placement offerings on a national level. Dave recently joined Paradigm in a real estate development role and oversees the Reg. CF and Reg. D offering process for the company. Beyond his professional life, he enjoys the great outdoors, including skiing, hiking, boating and traveling with his family. He is married to Katherine and is a dedicated father to their three children, Andrew, Alexandra, and Audrey. He is and has been active with multiple non-profit organizations, including – Ken Anderson Alliance, Drew’s Rainbows Foundation, and the Karen Wellington Foundation.
PARTNERS:
Broker Dealer
Rialto Markets
Transfer Agent
KoreTransfer USA LLC
Escrow Agent
East West Bank Inc.
Issuance Technology
KoreConX Inc.
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Regulation CF FAQ:
Investments in private placements, start-up investments in particular, are speculative and involve a high degree of risk. Investors must be able to afford the loss of their entire investment. Offers to sell, or the solicitations of offers to buy any security can be made only through official offering documents that contain important information about risks, fees, and expenses associated with the applicable securities. Investors should conduct their own due diligence, not rely on the financial assumptions or statements displayed herein, and are encouraged to consult with a financial advisor, attorney, accountant, tax advisors, and any other professional that can help you to understand and assess the risks associated with any investment opportunity. Past performance does not indicate future results. There is no guarantee that a diversified portfolio will enhance overall returns, outperform a non-diversified portfolio, or prevent against loss.
For Non-Accredited Investors (most fall into this category) the limitation on how much you can invest depends on your net worth and annual income.
If either your annual income or your net worth is less than $107,000, then during any 12-month period, you can invest up to the greater of either $2,200 or 5% of the greater of your annual income or net worth.
If both your annual income and your net worth are equal to or more than $107,000, then during
any 12-month period, you can invest up to 10% of annual income or net worth, whichever is
greater, but not to exceed $107,000.
- After you review the offering statement and information and decide you’d like to invest and how much, you complete the application with the requested information and electronically sign the documentation.
- Rialto Markets, the Broker Dealer, reviews the information for Anti-Money Laundering and Know Your Customer type reviews
- If you pass the review, Rialto initiates the funds via ACH or Credit Card (or you send the wire or check if applicable)
- If you don’t pass the review, Rialto or the Issuer will reach out to you to update information to clear you for the reviews or otherwise
- Once the funds have been cleared by the escrow agent (funds go directly there), Rialto will match your funds with your cleared application for investment, and issue you the stock by validating the subscription agreement and notifying the Transfer Agent to record your ownership on the Issuers capitalization table.
The time line is generally 2 to 4 weeks but can always happen sooner. It all depends on the
information you provide and if there are issues, how quickly we hear back from you.
- If we bump up against any “hits” on our reviews, we are required to clear each one of
those potential conflicts to evidence there are no issues. - If the information provided is not correct or is incomplete, we will need to reach out and
get this corrected. - Even though funds are initiated or you see them pending in your funding source, this
does not mean they are in the escrow account for the offering. Based on the payment
rails available in the US, these funds may not appear in escrow for a day or 2 and then
they have to sit there for a few days until the escrow agent is satisfied there doesn’t
appear to be any issues - Matching of payments to approved applications happens in batches, so while all ready
to be closed, your application maybe in the next batch.
Rialto Markets LLC is the FINRA member broker dealer who has been engaged by the
Issuer to act as the Onboarding Agent for this offering.
- Rialto Markets LLC is NOT placing or selling these securities on behalf of the Issuer.
- Rialto Markets LLC is NOT soliciting this investment nor making any recommendations
by collecting, reviewing and processing your application for investment. - Rialto Markets LLC conducts Anti-Money Laundering, Identity and Bad Actor
Disqualification reviews of the Issuer, and ensures they are a registered business in good
standing. - Rialto Markets LLC is NOT validating or approving the information provided by the
Issuer or the Issuer itself. - Contact information is provided for applicants to make inquiries and requests of Rialto
Markets LLC regarding the general application process, the status of the application or
general Reg CF regulation related information. Rialto Markets LLC may direct applicants
to specific sections of the Offering Statement to locate information or answers to their
inquiry but does not opine or provide guidance on Issuer related matters.
Rialto Markets is compensated by the Issuer for providing its Broker Dealer Onboarding Agent
services as disclosed in the Offering Statement. Rialto Markets does NOT charge the applying
investor any fees whatsoever. Please visit our Relationship Summary for more details.
By investing in an Issuer’s Reg CF offering where Rialto Markets is the Broker Dealer Onboarding
Agent, Rialto must ensure that you as the investor, do not breach the SEC’s limits on investing in
Reg CF Offerings within a 12 month period. While it’s not a full-fledged brokerage account
where we custody your holdings or recommend any investments, you will have an account at
Rialto to track the investments made where Rialto was engaged as the Broker Dealer
Onboarding Agent.
There is NO cost, charge or no annual fees etc. for this account whatsoever.
As you are buying a security regulated by the SEC, and as a Broker Dealer we are required by
SEC regulations to reasonably ensure Anti-Money Laundering and Know Your Customer reviews
are satisfied and that Permitted Investor Limits are not breached, we collect this information to
perform the required reviews.
Rialto may share certain details of an applying/completed investor as listed on the subscription
agreement, with the Transfer Agent and Escrow Agent if requested for valid purposes of
processing an investment application.
Applying investors with questions about the company or its product or the offering should
submit their questions in the Discussion section of the investment website. This is a public forum
where valid questions will be displayed for all to view, with responses clearly tagged with who
the response is from (i.e., the Issuer, Rialto Markets).
An accredited investor, in the context of a natural person, includes anyone who:
- earned income that exceeded $200,000 (or $300,000 together with a spouse or spousal equivalent) in each of the prior two years, and reasonably expects the same for the current year, OR
- has a net worth over $1 million, either alone or together with a spouse or spousal equivalent (excluding the value of the person’s primary residence), OR
- holds in good standing a Series 7, 65 or 82 license.
Any questions about the application, how to navigate it, what’s the process, etc. should be
directed to Rialto Markets using the contact information provided at the bottom of the
investment website.