TRACK
RECORD
Thorn Street Portfolio – 14 home tract purchased in 2014.
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Successfully negotiated and closed deal with an owner carried contract of $2.5m with a purchase price of $2.95m
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Took revenues in 2015 from $13,000 to $21,185 in 2019
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Tract of Homes Remains in Portfolio as a buy and hold investment and cashflows $5,000/m
Twenty Unit LLC Partnership
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Purchased 5 four-plexes over the course 4 years
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Used 1m line of credit to purchase and then refinance all deals sequentially.
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Over 4 years $1.9m of cash invested. Refinance of $1.57m capital returned.
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Guaranteed Cash on Cash Return of 7% for our Partner.
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Purchase price of plexes totaling $3,228,500
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Current Portfolio Value - $3,875,000
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If we sold today there would be a 650k gain with 300k payback of initial capitol for a 25% Average Rate of Return
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Rent Revenue per month of $25,665
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12225 SW Longhorn Lane:
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Purchase Price: 350k
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Construction: 140k
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Appraisal value after construction 575k.
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Rents went from 700 to 1295
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6817 SW Oak:
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Purchase Price: 330k
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Construction: 90k
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Appraisal Value of 600k
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Duplex Rented at 2395 / 1595
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11551 SW 64th
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Purchase Price: 132k
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Construction: 20k
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Added Bathroom
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7210 SW Brier:
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Purchase Price: 100k
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Construction: 105k
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Finished Basement and added 900 sq ft
Uptown Properties
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Currently Manages over 350 Units
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Staff of 12 (and hiring)
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Manage 2 apartment complexes above 60 units (both with onsite managers)
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Manage owned portfolio of 80+ units
Uptown Construction
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Performs maintenance and project work
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4 employees with a huge network of subs
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Competitive rates of $55 / hr and 15% markup on subs
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Completed over 20 projects on owned portfolio
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Completed over 1000 work orders over the course of 7 years
Summary
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Uptown Properties is an established property management company capable of producing quality results of management.
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Uptown Construction is an established contracting company that produces quality product available to rent at a great rate and in a timely manner
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AJ and Chris Shepard have a proven track record with many owned investments and will be investing in this deal.
3325-3331 Garden View
Investment Opportunity Highlights:
7% Cash on Cash Return
Up to 20% IRR
Eight Shares Available, $55,000/ea
THE OPPORTUNITY
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3325-3331 & 3365-3371 SW Garden View
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8 Plex – 2br/1.5ba units in Portland OR
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1 Block N of Canyon Rd and .5m E of 217
VALUE ADD
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Find an asset underperforming and under value
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Create a plan to have it operate under its highest and best use
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Refinance after value has been added to the property to maximize capital and returns.
APARTMENT SYNDICATION INVESTMENT HIGHLIGHTS
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Purchase price of 1.22 Million
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Close in Portland Oregon
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Initial Investment of $440,000
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Return of 300k upon refinance (~1 year)
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After Refi 7-9% cash on cash return
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25% IRR on remaining 140k investment
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700% ROI on remaining 140k over 10 years
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850k Net Sale Proceeds after 10 years
APARTMENT SYNDICATION PROPERTY DETAILS AND LOCATION
Property Specifics
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8 Units, 2 Buildings – All 2bd/1.5 ba units
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Currently 4 units vacant (50% occupancy)
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852 sq ft ea
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Townhome style with 2 beds upstairs and ½ bath down
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Current rents are at 1100-1300
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Projected New rents are 1300-1500
Property Benefits
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Easy access to Hwy 26 and 217
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Great School Districts
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Very Close to Beaverton Downtown (Being revitalized and developed, 7 min)
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Close to Downtown Portland (12 min)
Apartment Syndication Improvements and Value Add
Value Add Project $140,000:
Units 3371,3369 and 3331
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New Kitchen
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New Flooring
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New Bath Vanities
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New Doors and Hardware
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Update Fixtures
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Approximately 18k ea
Unit 3325 Minor Repairs
Site Work:
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New Front Doors
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Prep and Paint Exterior
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Landscaping
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Fencing
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Replace Gutters
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Pressure wash and stain decks
Apartment Syndication Financial Projections Assumptions
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Income Growth: 3%
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Expense Growth: 2%
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Vacancy: 5%
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Expense per unit: $250/yr
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Property Management 5%
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Asset Management 2%
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Cap Rate on Exit: 5.75%
Apartment Syndication The Opportunity
Yearly Income Projections
Years 1-5 and 10
Projected Sale Proceeds after 10 years
Cash On Cash Return Calculation
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3325 : $Vacant
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3327 : $1295
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3329 : $1295
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3331 : $Vacant
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3365 : $1200
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3367 : $1295
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3369 : $Vacant
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3371 : $Vacant
Current Rents:
Overall Investment ROI
W/ out Refinance & W/ Refinance
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Management Fee at 5%
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Asset Management Fee at 2%
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Ongoing Landscaping at $200/mo
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Vacancy at 4%
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Insurance is quoted
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Ongoing Maintenance for turn of other 4 units adds up to 50k over 10 years
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Apartment Expenses is a contingency
APARTMENT SYNDICATION EXISTING CONDITIONS
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3 units in poor condition:
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Replace all flooring
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Replace all cabinets
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Replace appliances
All very cosmetic repairs approximately 2-3 months of construction total
FAQ
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What are other comparable MFH in the general area? What are their rents /sq ft? Can the rent bump 10-20% be absorbed by the market? - Multiple listings at 1300-1400 for 2x1 800 sq ft.
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Is it in a high crime rate area? – Great area, very low crime. At the bottom of the hill from a very well off neighborhood.
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What is current Occupancy / what is economic Vacancy? - Economic vacancy in Portland is around 3-4% which is very strong market for rentals. New units in are coming online in the 0 and 1 bd market. 2 bd room market does not have a lot of new buildings.
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Why is the current seller selling? - Owner passed away and estate is selling
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What is the asset management fee and how is it calculated – 2% of the income of the property (not including RUBS).
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What type of model, Yeild play, Value add or Hybrid – This is a value add and Hybrid as a Refinance quickly will return a good portion of the investment required
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How many people are going to be involved in the deal, how much cash is needed, what’s the minimum investment. - 425k is required, Shepard’s have put up 100k and minimum of 50k. Max of 6 investors.