Sample Project
We want to show you how we run our projects. This is only a representation as this is NOT a deal that is currently available. The purpose of this example is for illustrative purposes only!
Apartment Complex Starting Details
88-Unit Property
Located in Arkansas
Year built: 1987
Rentable Sqft: 61,600
Acerage: 4.27
Number of Buildings: 4
Parking: 133 Spaces
Number of Staff: 2
Physical Occupancy: 96%
Cap Rate: 7.5%
Asking Price: $5,415,000
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Value Add Play
40-Units have been upgraded
Cost to upgrade: $3,500 per door
Rent increase with upgrade: $55/door or 8%
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Acquisition Strategy
Purchase price: $5,415,000
Down Payment: $833,910
Immediate Needs/ Capital Improvements: $236,700
Closing Costs + Fees:
Investor Cash required at closing: $1,450,000
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Holding Strategy
Upgrade remaining balance of units
Increase rents to market levels as jobs continue to grow and prices increase
Cashflow payments: $1,305,081
Hold for 7-10 years
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Selling Strategy
Exit value at 10-years: $7,606,885
Cape Rate: 7.5%
Investor Profit at Sale: $1,342,816
Total Investor Return: $2,647,897
Total Investor Annual Rate of Return: 18.26%
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Summary
This is example shows how our investors make money during the lifetime of a project and again when we sell. Not all projects go this way, however, the strategy shown here is a common approach.
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