24 Wrenn Investor Presentation

Joint Venture Opportunity

Detached House in Bowmanville

Thomas [email protected]

3 Bedrooms , 2 Bath24 Wrenn Blvd, Bowmanville, ON

Kenneth Sam416-895-5337

[email protected]

The Project

• The Property is a detached 3 bdrm house in a very convienent location in Bowmanville.

• The house was originally listed for 225K. The carpet in the basement needs an upgrade with several rooms requiring a coat of paint.

• Offer is accepted to buy the property for 214K. The current closing is set for Nov 23rd 2009.

• We are planning to spend approx $5,000 to improve the property. After repair value is between $230K-$235K

• Already have a rent-to-own tenant, signed the Lease Option agreement. Tenant has already paid $5,000 towards the purchase deposit.

• Using the Lease Option program as the exit strategy, potential profit in 3 years will be approx $40K

LeaseToOwnToronto.com | 24 Wrenn Blvd

The Opportuniy

• Project Finder / Real Esate Experts Invest

o5% of Cash Investment ( $2,358 )oOver 50 Hours of Time and Expertise

• Cash Partners Investo95% of Cash Investment ($44,807)

• Split Profit 35-65 ( $14K - $26K)


Key Features of the Property

• 2 Storey Detached Home - 3 Bdrm and 2 Bath

• Huge Private Yard with 2 Decks• Above Ground Pool !!• Fully Finished Basement• New Bathroom including Tub• Large Eat - In Kitchen• Long driveway /w 3-4 parking• Fenced Private Lot /w Garage

Access


Profile of the Tenant

• A couple - soon to be married• He owns a Delivery Business whose clients include

Home Depot & Lowes.• Our lease option agreement is with Him. • His income is $80,000 per year• Credit Score is 580• Lease to Own program will help them save 10% to get

a good mortgage.• Signed the Lease with Option to Purchase Agreement.

Got $5,000 or them to confirm their participation in the Rent - To- Own Program. The total initial deposit for the tenant will be $7,300.


Financial Assumptions


Description of the property: 24 Wrenn Blvd - Bowmanville L1C4N3 Type of Property: Free Hold

Current Purchase Price: $214,000 Monthly Rental: $1,300

Land transfer taxOther Ont. City $1,865

Rehab cost/setup cost: $5,000

Closing legal fee $2,500 Avg. Annual Appreciation 4.7%

Assignment fee $5,000 Adjusted Cost base: $228,365

Annual property tax: $2,500

After Repair Market Value: $232,000

Annual Insurance: $600

Financing:

1st MortgageInitial Cash Investment $47,165

1st Mortgage Amount 80% $171,200 DCR(Free Hold) 1.12

Interest rate 4.5%

# of Amortization Years 30 2nd Mortgage RRSP 2nd Mortgage Amount $10,000 .85 2nd Mortgage Interest rate 14% Total Mortgage $181,200

Benefit to Lessee


Lessee's Point of View:

3 Year Lease Opt.

Down Payment $7,300

Monthly Rent $1,248 Monthly Option

Premium $390

Monthly Condo Fee $100 Total Monthly

Payment $1,638

Addition Monthly Option Bonus $150

Additional money credited to Leasee's

downpayment at purchase

Purchase priceat the end of lease

term $ 266,274

Down payment credit at purchase $26,740

% Down available at the end of Lease 10%

Joint Venture – Profit 1


Investor's Point of View:

Option Exercised: 3 Year Lease Opt.

Total Gross Income during Lease Term: $ 305,802

selling price + 36*(monthly rent - monthly option bonus)

Profit before Mortgage Payment: $ 68,137

gross income - adjusted cost base - 3*(property tax + insurance)

Net Profit after Mortgage Interest: $41,381

profit before mortgage payment - interest portion of mortgage payment

Average Annual Net Profit: $13,794

Joint Venture – Profit 2


Option NOT Exercised: 3 Year Lease Opt.

Total Gross Income during Lease Term: $66,268

initial down payment + 36*(monthly rent + monthly option premium)

Profit before Mortgage Payment: $56,968

gross income - adjusted cost base - 3*(property tax + insurance)

Net Profit after Mortgage Interest: $30,212

profit before mortgage payment - interest portion of mortgage payment

Average Annual Net Profit: $10,071

(Note: Profit does not included the increase in property value)

Joint Venture – Return Analysis


Joint Venture Analysis: % contributionInvestmen

t % Profit

Partner #1 (deal finder)Thomas & Bob 5% $2,358 35%

Partner #2Investors 95% $44,807 65%

Option Exercised: 3 Year Lease Opt.

Net Profit after Mortgage Interest:

$ 41,381

Partner #1 (deal finder)Profit $ 14,483 ROI 614%

Partner #2Profit $ 26,897 ROI 60%

Map of the Area


Sample Pictures


24 Wrenn Investor Presentation

Real Estate

Transcript of 24 Wrenn Investor Presentation