Jasmine Bv ALF-Memory Care · Port Richey, FL 34668 Constuction Funding Available! Presented by...

Benny Spensieri

813-391-1545

[email protected]

Port Richey, FL 34668

Constuction Funding Available!

Presented by

CRES Corp International, LLC1228 E 7th Ave

Proposed Development - 120-Bed ALF & 40-Unit Memory Care

Tampa, Fl 33605

5.62-Acres - Zoned C2

Jasmine Bv ALF-Memory Care

6835 Jasmine Bv

Benny Spensieri

813-391-1545

[email protected]

Property Description

120-Bd ALF & 40-Unit Memory Care

Proposed 5.62-acres - Zoned C2

Proposed Development Project


6835 Jasmine Bv


HIGHLIGHTS

0

1228 E 7th Ave

CRES Corp International, LLC

Tampa, Fl 33605

This Financial Projection Report is based on thedevelopment of a 130-Bed, 43,200 sf ALF. The proposedloan structure includes the land price of 800,000, totalconstruction costs of $21,842,126. Finacining incoporatedinto this Report includes a 3-yr VRDB construction loanproviding 7% Interest Only Rate. New VRDB Loan replacesConstruction Loan at the end the three year term, providing2.35% I/R, 25-yr Amort for 3 additional years, afterwhich, isreplaced with a permanent loan at the market rate of thetime. In this case, 5.5 I/R, 25-yr amort is estimated.

Projections indicate the ALF completion time in less thanthree years, beginning with a 45% occupancy within year 3,65% within year 4, 80% within year 5 adn 95% within year 6.These are conservative where the ALF should be 90%-95%occupied within year the second year after completion.

Contact Benny Spensieri for further inforamtion on thisProperty.


6835 Jasmine Bv


Potential Rental Income $ $ 3,237,000$ 4,531,800$ 5,502,000$

Less: Vacancy & Credit Losses - - (161,850) (226,590) (275,100)

Effective Gross Income $ $ 3,075,150$ 4,305,210$ 5,226,900$

Less: Funded Reserves and/or Improvements (150,000) (151,500) (153,015) (154,545) (156,091)

Less: Operating Expenses (3,517,000) (3,604,925) (3,856,898) (4,014,014) (4,157,210)

Net Operating Income (NOI) (3,667,000)$ (3,756,425)$ (934,763)$ 136,651$ 913,599$

Less: Annual Debt Service (1,376,650) (1,376,650) (1,376,650) (969,920) (969,920)

CASH FLOW Before Taxes (5,043,650)$ (5,133,075)$ (2,311,414)$ (833,270)$ (56,321)$

Projected Sales Price $ $ $ 2,277,509$ 15,226,658$

Less: Selling Expenses - - - (68,325) (456,800)

Adjusted Projected Sales Price $ $ $ 2,209,183$ 14,769,858$

Less: Mortgage(s) Balance Payoff (15,983,188) (15,716,926) (15,431,416) (14,219,413) (13,882,473)

SALE PROCEEDS Before Taxes (15,983,188)$ (15,716,926)$ (15,431,416)$ (12,010,229)$ 887,385$

Cash Generated in Current Year (5,043,650)$ (5,133,075)$ (2,311,414)$ (833,270)$ (56,321)$

Cash Generated in Previous Years n/a (5,043,650) (10,176,726) (12,488,139) (13,321,409)

Cash Generated from Property Sale (15,983,188) (15,716,926) (15,431,416) (12,010,229) 887,385

Cash Inflow (Outflow) from Refinancing - - - (889,863) (889,863)

Original Initial Investment (5,410,500) (5,410,500) (5,410,500) (5,410,500) (5,410,500)

(26,437,339)$ (31,304,152)$ (33,330,055)$ (31,632,001)$ (18,790,707)$

Debt Coverage Ratio (DCR) (2.66) (2.73) (0.68) 0.14 0.94

Loan-to-Value Ratio (LVR) 0.0% 0.0% 0.0% 624.3% 91.2%

Capitalization Rate Based on Cost -16.94% -17.36% -4.32% 0.63% 4.22%

Capitalization Rate Based on Resale Price 0.00% 0.00% 0.00% 6.00% 6.00%

Gross Rent Monthly Multiplier (GRM) - - - 6.03 33.21

Gross Rent Yearly Multiplier (GRM) - - - 0.50 2.77

Value of Property Using this GRM 6.00 - - 19,422,000 27,190,800 33,012,000

Break-Even Ratio 0.00% 0.00% 166.41% 113.39% 96.02%

Operating Expense Ratio 0.00% 0.00% 125.42% 93.24% 79.53%

Cash-on-Cash Return with Equity -488.63% 0.00% 0.00% 0.00% 0.00%

Cash-on-Cash Return - Before Taxes -93.22% -94.87% -42.72% -13.23% -0.89%

Financial Measurements

Year 4 Year 5

Cash Position

Rental Activity Analysis

Total Potential CASH Generated

Property Resale Analysis

Year 1 Year 2 Year 3

Benny Spensieri

813-391-1545

8/31/2018 11:33 AM © 1993 - 2014 Cash Flow Analyzer® http://RentalSoftware.com


6835 Jasmine Bv


Potential Rental Income

Less: Vacancy & Credit Losses

Effective Gross Income

Less: Funded Reserves and/or Improvements

Less: Operating Expenses

Net Operating Income (NOI)

Less: Annual Debt Service

CASH FLOW Before Taxes

Projected Sales Price

Less: Selling Expenses

Adjusted Projected Sales Price

Less: Mortgage(s) Balance Payoff

SALE PROCEEDS Before Taxes

Cash Generated in Current Year

Cash Generated in Previous Years

Cash Generated from Property Sale

Cash Inflow (Outflow) from Refinancing

Original Initial Investment

Debt Coverage Ratio (DCR)

Loan-to-Value Ratio (LVR)

Capitalization Rate Based on Cost

Capitalization Rate Based on Resale Price

Gross Rent Monthly Multiplier (GRM)

Gross Rent Yearly Multiplier (GRM)

Value of Property Using this GRM 6.00

Break-Even Ratio

Operating Expense Ratio

Cash-on-Cash Return with Equity

Cash-on-Cash Return - Before Taxes

Financial Measurements

Cash Position

Rental Activity Analysis

Total Potential CASH Generated

Property Resale Analysis

6,474,000$ 6,668,220$ 6,868,267$ 7,074,315$ 7,286,544$

(323,700) (333,411) (343,413) (353,716) (364,327)

6,150,300$ 6,334,809$ 6,524,853$ 6,720,599$ 6,922,217$

(157,652) (159,228) (160,820) (162,429) (164,053)

(4,302,863) (4,412,053) (4,524,021) (4,638,839) (4,756,578)

1,689,786$ 1,763,528$ 1,840,012$ 1,919,332$ 2,001,586$

(969,920) (969,920) (969,920) (969,920) (969,920)

719,866$ 793,608$ 870,092$ 949,412$ 1,031,666$

28,163,097$ 29,392,137$ 30,666,864$ 31,988,861$ 33,359,763$

(844,893) (881,764) (920,006) (959,666) (1,000,793)

27,318,204$ 28,510,373$ 29,746,858$ 31,029,195$ 32,358,970$

(13,530,055) (13,161,446) (12,775,904) (12,372,650) (11,950,870)

13,788,149$ 15,348,927$ 16,970,954$ 18,656,545$ 20,408,100$

719,866$ 793,608$ 870,092$ 949,412$ 1,031,666$

(13,377,729) (12,657,864) (11,864,256) (10,994,164) (10,044,752)

13,788,149 15,348,927 16,970,954 18,656,545 20,408,100

(889,863) (889,863) (889,863) (889,863) (889,863)

(5,410,500) (5,410,500) (5,410,500) (5,410,500) (5,410,500)

(5,170,077)$ (2,815,691)$ (323,572)$ 2,311,430$ 5,094,651$

1.74 1.82 1.90 1.98 2.06

48.0% 44.8% 41.7% 38.7% 35.8%

7.81% 8.15% 8.50% 8.87% 9.25%

6.00% 6.00% 6.00% 6.00% 6.00%

52.20 52.89 53.58 54.26 54.94

4.35 4.41 4.47 4.52 4.58

38,844,000 40,009,320 41,209,600 42,445,888 43,719,264

83.88% 83.10% 82.33% 81.58% 80.84%

69.96% 69.65% 69.34% 69.02% 68.71%

1534.92% 17.08% 16.24% 15.53% 14.92%

11.43% 12.60% 13.81% 15.07% 16.37%

Year 9Year 6 Year 7 Year 10Year 8

Benny Spensieri

813-391-1545

8/31/2018 11:33 AM © 1993 - 2014 Cash Flow Analyzer® http://RentalSoftware.com


6835 Jasmine Bv


% of % of

Expenses Revenue

25,000 2.5% 192.31 0.58 0.7% 0.0%

75,000 2.5% 576.92 1.74 2.1% 0.0%

80,000 2.5% 615.38 1.85 2.3% 0.0%

40,000 2.5% 307.69 0.93 1.1% 0.0%

200,000 2.5% 1,538.46 4.63 5.7% 0.0%

60,000 2.5% 461.54 1.39 1.7% 0.0%

12,000 2.5% 92.31 0.28 0.3% 0.0%

25,000 2.5% 192.31 0.58 0.7% 0.0%

30,000 2.5% 230.77 0.69 0.9% 0.0%

1,392,000 2.5% 10,707.69 32.22 39.6% 0.0%

15,000 2.5% 115.38 0.35 0.4% 0.0%

20,000 2.5% 153.85 0.46 0.6% 0.0%

30,000 2.5% 230.77 0.69 0.9% 0.0%

25,000 2.5% 192.31 0.58 0.7% 0.0%

275,000 2.5% 2,115.38 6.37 7.8% 0.0%

348,000 2.5% 2,676.92 8.06 9.9% 0.0%

20,000 2.5% 153.85 0.46 0.6% 0.0%

245,000 2.5% 1,884.62 5.67 7.0% 0.0%

400,000 2.5% 3,076.92 9.26 11.4% 0.0%

25,000 2.5% 192.31 0.58 0.7% 0.0%

70,000 2.5% 538.46 1.62 2.0% 0.0%

105,000 2.5% 807.69 2.43 3.0% 0.0%

3,517,000$ 27,054$ 43,200 100.0% 0.0%

Benny Spensieri

813-391-1545

Per Sq Ft

Housekeeping/Ldry

Advertising

Administration

Annual

Amount

Telephone

Professional Fees

Annual

Increase

Accounting

Transportation

Insurance

Per UnitExpense Description

Maintenance

Landscaping

Pest Control

Legal

Property Taxes

Payroll

Total Annual Operating Expenses

Repairs

Food/Beverage

Recruiting/Training

IT

Payroll

Resident Care

Other Utilities

Supplies

Annual Property Operating DataJasmine Bv ALF-Memory Care

6835 Jasmine Bv

Port Richey, FL 34668 Benny Spensieri

Column 1 813-391-1545

Column 2

Year 1 Sq Ft Per Unit Year 2 Sq Ft Per Unit Year 3 Sq Ft Per Unit Year 4 Sq Ft Per Unit Year 5 Sq Ft Per Unit

Potential Rental Income $ 0.00 0.00 $ 0.00 0.00 3,237,000$ 6.24 2,075.00 4,531,800$ 8.74 2,905.00 5,502,000$ 10.61 3,526.92

Less: Vacancy & Credit Losses - 0.00 0.00 - 0.00 0.00 (161,850) -0.31 -103.75 (226,590) -0.44 -145.25 (275,100) -0.53 -176.35

$ 0.00 0.00 $ 0.00 0.00 3,075,150$ 5.93 1,971.25 4,305,210$ 8.30 2,759.75 5,226,900$ 10.08 3,350.58

Accounting 25,000 0.05 16.03 25,625 0.05 16.43 26,266 0.05 16.84 26,922 0.05 17.26 27,595 0.05 17.69

Advertising 75,000 0.14 48.08 76,875 0.15 49.28 78,797 0.15 50.51 80,767 0.16 51.77 82,786 0.16 53.07

Administration 80,000 0.15 51.28 82,000 0.16 52.56 84,050 0.16 53.88 86,151 0.17 55.23 88,305 0.17 56.61

Transportation 40,000 0.08 25.64 41,000 0.08 26.28 42,025 0.08 26.94 43,076 0.08 27.61 44,153 0.09 28.30

Housekeeping/Ldry 200,000 0.39 128.21 205,000 0.40 131.41 210,125 0.41 134.70 215,378 0.42 138.06 220,763 0.43 141.51

Insurance 60,000 0.12 38.46 61,500 0.12 39.42 63,038 0.12 40.41 64,613 0.12 41.42 66,229 0.13 42.45

Landscaping 12,000 0.02 7.69 12,300 0.02 7.88 12,608 0.02 8.08 12,923 0.02 8.28 13,246 0.03 8.49

Legal 25,000 0.05 16.03 25,625 0.05 16.43 26,266 0.05 16.84 26,922 0.05 17.26 27,595 0.05 17.69

Maintenance 30,000 0.06 19.23 30,750 0.06 19.71 31,519 0.06 20.20 32,307 0.06 20.71 33,114 0.06 21.23

Management Fee - 0.00 0.00 - 0.00 0.00 161,850 0.31 103.75 226,590 0.44 145.25 275,100 0.53 176.35

Payroll 1,392,000 2.69 892.31 1,426,800 2.75 914.62 1,462,470 2.82 937.48 1,499,032 2.89 960.92 1,536,508 2.96 984.94

Pest Control 15,000 0.03 9.62 15,375 0.03 9.86 15,759 0.03 10.10 16,153 0.03 10.35 16,557 0.03 10.61

Professional Fees 20,000 0.04 12.82 20,500 0.04 13.14 21,013 0.04 13.47 21,538 0.04 13.81 22,076 0.04 14.15

Repairs 30,000 0.06 19.23 30,750 0.06 19.71 31,519 0.06 20.20 32,307 0.06 20.71 33,114 0.06 21.23

Supplies 25,000 0.05 16.03 25,625 0.05 16.43 26,266 0.05 16.84 26,922 0.05 17.26 27,595 0.05 17.69

Property Taxes 275,000 0.53 176.28 281,875 0.54 180.69 288,922 0.56 185.21 296,145 0.57 189.84 303,549 0.59 194.58

Payroll 348,000 0.67 223.08 356,700 0.69 228.65 365,618 0.71 234.37 374,758 0.72 240.23 384,127 0.74 246.24

Telephone 20,000 0.04 12.82 20,500 0.04 13.14 21,013 0.04 13.47 21,538 0.04 13.81 22,076 0.04 14.15

Other Utilities 245,000 0.47 157.05 251,125 0.48 160.98 257,403 0.50 165.00 263,838 0.51 169.13 270,434 0.52 173.36

Food/Beverage 400,000 0.77 256.41 410,000 0.79 262.82 420,250 0.81 269.39 430,756 0.83 276.13 441,525 0.85 283.03

Recruiting/Training 25,000 0.05 16.03 25,625 0.05 16.43 26,266 0.05 16.84 26,922 0.05 17.26 27,595 0.05 17.69

IT 70,000 0.14 44.87 71,750 0.14 45.99 73,544 0.14 47.14 75,382 0.15 48.32 77,267 0.15 49.53

Resident Care 105,000 0.20 67.31 107,625 0.21 68.99 110,316 0.21 70.72 113,074 0.22 72.48 115,900 0.22 74.30

3,517,000$ 6.78 2,254.49 3,604,925$ 6.95 2,310.85 3,856,898$ 7.44 2,472.37 4,014,014$ 7.74 2,573.09 4,157,210$ 8.02 2,664.88

Less: Funded Reserves and/or Improvements 150,000 0.29 96.15 151,500 0.29 97.12 153,015 0.30 98.09 154,545 0.30 99.07 156,091 0.30 100.06

(3,667,000)$ -7.07 -2,350.64 (3,756,425)$ -7.25 -2,407.96 (934,763)$ -1.80 -599.21 136,651$ 0.26 87.60 913,599$ 1.76 585.64

Less: Annual Debt Service (1,376,650) -2.66 -882.47 (1,376,650) -2.66 -882.47 (1,376,650) -2.66 -882.47 (969,920) -1.87 -621.74 (969,920) -1.87 -621.74

Cash Flow Before Taxes (5,043,650)$ -9.73 -3,233.11 (5,133,075)$ -9.90 -3,290.43 (2,311,414)$ -4.46 -1,481.68 (833,270)$ -1.61 -534.15 (56,321)$ -0.11 -36.10


Total Operating Expenses

Operating Expenses


© 1993 - 2014 Cash Flow Analyzer® http://RentalSoftware.com

Annual Property Operating DataJasmine Bv ALF-Memory Care

6835 Jasmine Bv


Column 1

Column 2

Potential Rental Income

Less: Vacancy & Credit Losses

Accounting

Advertising

Administration

Transportation

Housekeeping/Ldry

Insurance

Landscaping

Legal

Maintenance

Management Fee

Payroll

Pest Control

Professional Fees

Repairs

Supplies

Property Taxes

Payroll

Telephone

Other Utilities

Food/Beverage

Recruiting/Training

IT

Resident Care

Less: Funded Reserves and/or Improvements

Less: Annual Debt Service

Cash Flow Before Taxes


Total Operating Expenses

Operating Expenses


Benny Spensieri

813-391-1545

Year 6 Sq Ft Per Unit Year 7 Sq Ft Per Unit Year 8 Sq Ft Per Unit Year 9 Sq Ft Per Unit Year 10 Sq Ft Per Unit

6,474,000$ 12.49 4,150.00 6,668,220$ 12.86 4,274.50 6,868,267$ 13.25 4,402.74 7,074,315$ 13.65 4,534.82 7,286,544$ 14.06 4,670.86

(323,700) -0.62 -207.50 (333,411) -0.64 -213.73 (343,413) -0.66 -220.14 (353,716) -0.68 -226.74 (364,327) -0.70 -233.54

6,150,300$ 11.86 3,942.50 6,334,809$ 12.22 4,060.78 6,524,853$ 12.59 4,182.60 6,720,599$ 12.96 4,308.08 6,922,217$ 13.35 4,437.32

28,285 0.05 18.13 28,992 0.06 18.58 29,717 0.06 19.05 30,460 0.06 19.53 31,222 0.06 20.01

84,856 0.16 54.39 86,977 0.17 55.75 89,151 0.17 57.15 91,380 0.18 58.58 93,665 0.18 60.04

90,513 0.17 58.02 92,775 0.18 59.47 95,095 0.18 60.96 97,472 0.19 62.48 99,909 0.19 64.04

45,256 0.09 29.01 46,388 0.09 29.74 47,547 0.09 30.48 48,736 0.09 31.24 49,955 0.10 32.02

226,282 0.44 145.05 231,939 0.45 148.68 237,737 0.46 152.40 243,681 0.47 156.21 249,773 0.48 160.11

67,884 0.13 43.52 69,582 0.13 44.60 71,321 0.14 45.72 73,104 0.14 46.86 74,932 0.14 48.03

13,577 0.03 8.70 13,916 0.03 8.92 14,264 0.03 9.14 14,621 0.03 9.37 14,986 0.03 9.61

28,285 0.05 18.13 28,992 0.06 18.58 29,717 0.06 19.05 30,460 0.06 19.53 31,222 0.06 20.01

33,942 0.07 21.76 34,791 0.07 22.30 35,661 0.07 22.86 36,552 0.07 23.43 37,466 0.07 24.02

323,700 0.62 207.50 333,411 0.64 213.73 343,413 0.66 220.14 353,716 0.68 226.74 364,327 0.70 233.54

1,574,920 3.04 1,009.56 1,614,293 3.11 1,034.80 1,654,651 3.19 1,060.67 1,696,017 3.27 1,087.19 1,738,417 3.35 1,114.37

16,971 0.03 10.88 17,395 0.03 11.15 17,830 0.03 11.43 18,276 0.04 11.72 18,733 0.04 12.01

22,628 0.04 14.51 23,194 0.04 14.87 23,774 0.05 15.24 24,368 0.05 15.62 24,977 0.05 16.01

33,942 0.07 21.76 34,791 0.07 22.30 35,661 0.07 22.86 36,552 0.07 23.43 37,466 0.07 24.02

28,285 0.05 18.13 28,992 0.06 18.58 29,717 0.06 19.05 30,460 0.06 19.53 31,222 0.06 20.01

311,137 0.60 199.45 318,916 0.62 204.43 326,889 0.63 209.54 335,061 0.65 214.78 343,437 0.66 220.15

393,730 0.76 252.39 403,573 0.78 258.70 413,663 0.80 265.17 424,004 0.82 271.80 434,604 0.84 278.59

22,628 0.04 14.51 23,194 0.04 14.87 23,774 0.05 15.24 24,368 0.05 15.62 24,977 0.05 16.01

277,195 0.53 177.69 284,125 0.55 182.13 291,228 0.56 186.68 298,509 0.58 191.35 305,971 0.59 196.14

452,563 0.87 290.10 463,877 0.89 297.36 475,474 0.92 304.79 487,361 0.94 312.41 499,545 0.96 320.22

28,285 0.05 18.13 28,992 0.06 18.58 29,717 0.06 19.05 30,460 0.06 19.53 31,222 0.06 20.01

79,199 0.15 50.77 81,179 0.16 52.04 83,208 0.16 53.34 85,288 0.16 54.67 87,420 0.17 56.04

118,798 0.23 76.15 121,768 0.23 78.06 124,812 0.24 80.01 127,932 0.25 82.01 131,131 0.25 84.06

4,302,863$ 8.30 2,758.25 4,412,053$ 8.51 2,828.24 4,524,021$ 8.73 2,900.01 4,638,839$ 8.95 2,973.61 4,756,578$ 9.18 3,049.09

157,652 0.30 101.06 159,228 0.31 102.07 160,820 0.31 103.09 162,429 0.31 104.12 164,053 0.32 105.16

1,689,786$ 3.26 1,083.20 1,763,528$ 3.40 1,130.47 1,840,012$ 3.55 1,179.49 1,919,332$ 3.70 1,230.34 2,001,586$ 3.86 1,283.07

(969,920) -1.87 -621.74 (969,920) -1.87 -621.74 (969,920) -1.87 -621.74 (969,920) -1.87 -621.74 (969,920) -1.87 -621.74

719,866$ 1.39 461.45 793,608$ 1.53 508.72 870,092$ 1.68 557.75 949,412$ 1.83 608.60 1,031,666$ 1.99 661.32



Benny Spensieri

813-391-1545

Time Net Operating Debt Cash Flow Incomes Cash Flow

Period Income Service Before Tax Taxes After Tax

Int Investment (5,410,500)$ (5,410,500)$

Year 1 (3,667,000) - (1,376,650) (5,043,650) - (5,043,650)

Year 2 (3,756,425) - (1,376,650) (5,133,075) - (5,133,075)

Year 3 (934,763) - (1,376,650) (2,311,414) - (2,311,414)

Year 4 136,651 - (969,920) (833,270) - (833,270)

Year 5 913,599 - (969,920) (56,321) - (56,321)

Year 6 1,689,786 - (969,920) 719,866 - 719,866

Year 7 1,763,528 - (969,920) 793,608 - 793,608

Year 8 1,840,012 - (969,920) 870,092 - 870,092

Year 9 1,919,332 - (969,920) 949,412 - 949,412

Year 10 2,001,586 - (969,920) 1,031,666 - 1,031,666

6835 Jasmine Bv


MIP Payments

$(6,000,000)

$(5,000,000)

$(4,000,000)

$(3,000,000)

$(2,000,000)

$(1,000,000)

$

$1,000,000

$2,000,000

1 2 3 4 5 6 7 8 9 10

Cash Flow After Taxes

Cash Flow Before Taxes



6835 Jasmine Bv

Port Richey, FL 34668Benny Spensieri

813-391-1545

Time Initial Investment Cash Flow Cash on Cash Income Cash Flow Cash on Cash

Period Adj for Refinance Before Taxes Before Taxes Taxes After Taxes After Taxes

Year 1 5,410,500$ (5,043,650)$ -93.22% $ (5,043,650)$ -93.22%

Year 2 5,410,500 (5,133,075) -94.87% - (5,133,075) -94.87%

Year 3 5,410,500 (2,311,414) -42.72% - (2,311,414) -42.72%

Year 4 6,300,363 (833,270) -13.23% - (833,270) -13.23%

Year 5 6,300,363 (56,321) -0.89% - (56,321) -0.89%

Year 6 6,300,363 719,866 11.43% - 719,866 11.43%

Year 7 6,300,363 793,608 12.60% - 793,608 12.60%

Year 8 6,300,363 870,092 13.81% - 870,092 13.81%

Year 9 6,300,363 949,412 15.07% - 949,412 15.07%

Year 10 6,300,363 1,031,666 16.37% - 1,031,666 16.37%

-100.00%

-80.00%

-60.00%

-40.00%

-20.00%

0.00%

20.00%

1 2 3 4 5 6 7 8 9 10

After Taxes

Before Taxes



6835 Jasmine Bv


813-391-1545

Time Net Operating Cap Rate on Cost Resale

Period Income (NOI) 21,642,000$ Value

Year 1 (3,667,000)$ -16.94% $

Year 2 (3,756,425) -17.36% -

Year 3 (934,763) -4.32% -

Year 4 136,651 0.63% 2,277,509

Year 5 913,599 4.22% 15,226,658

Year 6 1,689,786 7.81% 28,163,097

Year 7 1,763,528 8.15% 29,392,137

Year 8 1,840,012 8.50% 30,666,864

Year 9 1,919,332 8.87% 31,988,861

Year 10 2,001,586 9.25% 33,359,763

-20.00%

-15.00%

-10.00%

-5.00%

0.00%

5.00%

10.00%

1 2 3 4 5 6 7 8 9 10



6835 Jasmine Bv


813-391-1545

Time Projected Adj Projected Refi Proceeds Mortgage(s) Sale Proceeds Income Taxes Sale Proceeds Property Year / Year

Period Resale Value Increase (if any) Balance Payoff Before Taxes From Sale After Taxes Equity Equity Increase

Year 1 $ -100.00% $ (15,983,188)$ (15,983,188)$ $ (15,983,188)$ (15,983,188)$ (21,393,688)$

Year 2 - 0.00% - (15,716,926) (15,716,926) - (15,716,926) (15,716,926) 266,262

Year 3 - 0.00% - (15,431,416) (15,431,416) - (15,431,416) (15,431,416) 285,510

Year 4 2,209,183 0.00% (889,863) (14,219,413) (12,900,092) - (12,900,092) (12,900,092) 2,531,324

Year 5 14,769,858 568.57% (889,863) (13,882,473) (2,478) - (2,478) (2,478) 12,897,614

Year 6 27,318,204 84.96% (889,863) (13,530,055) 12,898,287 - 12,898,287 12,898,287 12,900,764

Year 7 28,510,373 4.36% (889,863) (13,161,446) 14,459,064 - 14,459,064 14,459,064 1,560,778

Year 8 29,746,858 4.34% (889,863) (12,775,904) 16,081,092 - 16,081,092 16,081,092 1,622,027

Year 9 31,029,195 4.31% (889,863) (12,372,650) 17,766,683 - 17,766,683 17,766,683 1,685,591

Year 10 32,358,970 4.29% (889,863) (11,950,870) 19,518,237 - 19,518,237 19,518,237 1,751,555

$(20,000,000)

$(15,000,000)

$(10,000,000)

$(5,000,000)

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

1 2 3 4 5 6 7 8 9 10



6835 Jasmine Bv


813-391-1545

Rental Annual Change Annual Change Trapped Return on Hold

Cash Flow in Equity in Net Worth Equity Equity (ROE) Sell

6.00% A B (A + B)

Year 1 (5,043,650) (21,393,688) (26,437,339) 5,410,500 -488.63% Hold

After Year Year 2 (5,133,075) 266,262 (4,866,813) (15,983,188) 0.00% Hold

5 Year 3 (2,311,414) 285,510 (2,025,903) (15,716,926) 0.00% Hold

Year 4 (833,270) 2,531,324 1,698,054 (15,431,416) 0.00% Hold

Year 5 (56,321) 12,897,614 12,841,293 (12,010,229) 0.00% Hold

Year 6 719,866 12,900,764 13,620,630 887,385 1534.92% Hold

Year 7 793,608 1,560,778 2,354,386 13,788,149 17.08% Hold

Year 8 870,092 1,622,027 2,492,119 15,348,927 16.24% Hold

Year 9 949,412 1,685,591 2,635,002 16,970,954 15.53% Hold

Year 10 1,031,666 1,751,555 2,783,220 18,656,545 14.92% Hold

Required Return on

EquityTime Period

-500.00%

0.00%

500.00%

1000.00%

1500.00%

2000.00%

1 2 3 4 5 6 7 8 9 10

Return on Equity (ROE)



6835 Jasmine Bv

Port Richey, FL 34668 Benny Spensieri

813-391-1545

Cash on Cash

Time Period Potential Operating, Debt, Occupancy BreakEven Max Vacancy BreakEven Max Vacancy

Requirement Rental Income Reserve Expenses Rate (Existing) Occupancy Rate BreakEven Rate Occupancy Rate BreakEven Rate

6.00% w/ Cash on Cash w/ Cash on Cash

Year 1 - (5,043,650) 0.00% 0.00% 100.00% 0.00% 100.00%

Year 2 - (5,133,075) 0.00% 0.00% 100.00% 0.00% 100.00%

Year 3 3,237,000 (5,386,564) 95.00% 166.41% -66.41% 176.43% -76.43%

Year 4 4,531,800 (5,138,480) 95.00% 113.39% -13.39% 120.55% -20.55%

Year 5 5,502,000 (5,283,221) 95.00% 96.02% 3.98% 101.92% -1.92%

Year 6 6,474,000 (5,430,434) 95.00% 83.88% 16.12% 88.90% 11.10%

Year 7 6,668,220 (5,541,201) 95.00% 83.10% 16.90% 87.97% 12.03%

Year 8 6,868,267 (5,654,762) 95.00% 82.33% 17.67% 87.06% 12.94%

Year 9 7,074,315 (5,771,187) 95.00% 81.58% 18.42% 86.17% 13.83%

Year 10 7,286,544 (5,890,551) 95.00% 80.84% 19.16% 85.30% 14.70%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

140.00%

160.00%

180.00%

1 2 3 4 5 6 7 8 9 10

BreakEven Occupancy

BreakEven Occupancy with Cash on Cash Requirment


813-391-1545

Benny Spensieri

CRES Corp International

CRES Corp International, LLC1228 E 7th Ave0Tampa, Fl 33605

[email protected]

Commercial Real Estate Services - Financial Services – Management & Leasing Services

CRES Corp International, LLC (CCI) is a Commercial Real Estate firm offering brokerage, finance and

management services.

Our unique business model brings to our property owners and investors the means to get transactions

completed where all parties are satisfied.

CRES Corp International offers the Preferred Investor Program (PIP), where our Clients receive the following

benefits:

Property Owners

No Exclusive Listing Agreement

Property introduced only to Pre-Qualified Investors who:

Have Sufficient Funds for RE Purchases

Have Experience in Investing

Make Reasonable Offers

Investors

Receive Information on “Off-Market” Property

Receive information on “Pre-Listed” Property

Minimal Competition

Great Price on their RE Purchases

CRES Corp International specializes in the following commercial property:

Apartments

Hotels

MHP/RV

Office Buildings/Complexes

Medical Offices & Centers

Vacant Land (Development)

For further information contact Benny Spensieri – 813-391-1545 or [email protected]

Benny Spensieri

813-391-1545

[email protected]

Terms & Definitions

Tampa, Fl 33605

0

CRES Corp International, LLC1228 E 7th Ave

Net Operating Income (NOI) is a property’s gross rental income reduced by all expenses except for loan payments,income taxes, mortgage insurance premium (MIP) payments and sometimes funded reserves.

Debt Coverage Ratio (DCR) is a property’s net operating income divided by the amount of debt payments. Lendersuse this calculation to determine the remaining operating cash flow after the debt payments.

Loan-to-Value Ratio (LTV) is the outstanding debt divided by the value of the property. This ratio is used to determinethe amount of leverage and property equity. The debt balance can be the beginning or end-of-year balance. Theproperty value used can be the contract price or the fair market value at the end of the year.

Capitalization Rate (Cap Rate) is the net operating income (NOI) divided by either the property’s contract purchaseprice or its fair market value.

Cash-on-Cash Return is the net cash flow divided it by the initial investment (down payment). The calculation doesnot take into account the time value of money or change in the property’s equity.

Cash-on-Cash Return with Equity Build-up modifies the cash-on-cash return calculation by adding the property’s netchange in equity for that year to the numerator and adding all previously generated equity to the denominator of thecash-on-cash return ratio. The calculation calculates the return on the property equity, i.e. the return on the cash thatis “tied up” in the property.

Net Present Value (NPV) converts future dollars into present-day dollars by discounting (reducing) the future cash flowof a property by a given rate or percentage. The initial investment (down payment) is subtracted from the discounteddollars to derive the NPV. A positive NPV means that the property will generate a higher return than the given rate orpercentage used to calculate the NPV amount.

Gross Rent Multiplier (GRM) is a property’s fair market value divided by its gross rental income.

Mortgage Insurance Premium (MIP) Payments are insurance premiums charged by a lender to protect that lenderagainst loss from a mortgager's default. The rates are charged on the balance of the loan and may be paid annually,monthly, or in some combination of the two (split premiums).

Internal Rate-of-Return (IRR) is the most widely used method of valuing a property’s annual cash flow stream. Sincea property’s cash flow is earned in the future, those future dollars must be converted to present-day dollars. The IRRcalculation discounts (reduces) the property’s future cash flow at a rate (i.e. percentage) so that the sum of all cashflow for a specified time period is equal to the initial investment. The rate or percentage needed to do that is the IRR.In other words, IRR is the discount rate at which Net Present Value (NPV) is zero.

Modified Internal Rate-of-Return (MIRR) modifies the IRR to avoid the drawbacks of the traditional IRR. The IRRimplicitly assumes that all cash flow is either reinvested or discounted at the computed IRR rate. In reality, a property’scash flow probably will not be reinvested at the computed IRR rate, but rather earn zero or a small amount of interest.The MIRR eliminates the reinvestment assumption by utilizing user stipulated reinvestment and borrowing rates.

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