OFFERING SUMMARY 3632 Carrington...• 4 bedroom homes only make up 3.7% of housing in the...
Transcript of OFFERING SUMMARY 3632 Carrington...• 4 bedroom homes only make up 3.7% of housing in the...
OFFERING SUMMARY
3632 Carrington MEMPHIS, TN 38111
2 STRATEGIC MARKETS. ONE STRATEGIC TEAM
Property Offering Tables of Contents
I. Welcome Letter
II. Our Seamless Process
III. Property Offering with Neighborhood Info & Cash Flow Analysis
IV. MLS Sales Comps – 3 Up Report / Property Details
V. Renovation Scope of Work
VI. Turnkey Properties Warranty
VII. Insurance Information
VIII. Property Management Introduction
IX. Testimonials and You Tube Page Link
TWO STRATEGIC MARKETS. ONE STRATEGIC TEAM.
1060 Brookfield Road, Suite 100 Memphis, TN 38119 PHONE: 901-410-5452
FAX: 901-205-0629 TurnkeyInvestProperties.com
January 3, 2018
To our current and prospective clients:
Enclosed in this packet you will find various pieces of information about our latest offering in Memphis,
TN.
Our goal as a turnkey provider is to provide an asset that will maximize your cash flow. We accomplish
this by doing a thorough renovation that will reduce maintenance and vacancy. We also address
deferred maintenance items and add upgrades such as vinyl plank flooring and ceramic tile that are
not only more durable, they also make the home stand out above competing rental properties in the
area.
As landlords ourselves, we know through personal experience maximizing profits starts with the
renovation and continues with a strong management team, which we bring to you through our in-
house property management company.
If you have any questions, please feel free to reach out to us at 901-410-5452. We would be happy to
provide you any amount of information we can to make you feel comfortable with your investment
decision.
Thanks,
Alex Craig
President
Turnkey Properties
2 STRATEGIC MARKETS. ONE STRATEGIC TEAM
Defining our proven process…
Once a purchase agreement has been signed by all parties I will send you an invite
to Basecamp. What is Basecamp? Instead of having stuff scattered all over the
place — strewn across separate products, lost in inboxes, or scrawled on stickies or
notepads — Basecamp brings everything under one roof. Organized, centralized,
and clear so everyone knows what to do, everyone knows where things stand, and
everyone can get what they need without having to ask. Inside every basecamp
project you will find
o To-dos for tracking work. To-dos organize the work, set due dates, and
assign responsibility so we are able to close in a timely manner.
o Message Boards for posting announcements and updates. Discussion
boards keep the entire conversation about a specific topic together
on a single page
o Schedule for posting deadlines and milestones, and
o Docs & Files for organizing all the assets and important notes, such as
the inspection report
➢ The first to-do to address would be sending the earnest money, which would
be assigned to you, the buyer. I will confirm it was received at an later date.
➢ After you initiate the earnest money, I take the reins on most everything else,
although it is important for you to stay in contact with you lender.
➢ From here I will send the lender and the title company a copy of the
purchase agreement and communicate to the lender that I am the local
point of contact regarding information on the property and scheduling the
appraisal.
My name is Holly Evans and I will be your personal
transaction coordinator. I am here to help make the
process of purchasing an investment home go as
smoothly as possible. My goal is to take the workload
off you and coordinate all tasks needed to close. It
really is a simple process!
2 STRATEGIC MARKETS. ONE STRATEGIC TEAM
➢ I will provide you with an insurance quote from our preferred carrier, Insight
Risk Management, for you to review. If you wish to move forward with the
policy, I will be happy to connect you and your lender with IRM.
➢ When the rehab has been completed on the property I will ask if you would
like to use our recommend inspectors or chose one of your own. If you
choose to go with our recommended inspectors I will send a connecting
email, if not, I will provide my telephone number to you in which your chosen
inspector can reach me.
➢ At this time I will notify your lender we are also ready for the appraisal. The
appraiser will contact me directly to get this scheduled.
➢ Inspection will take place and a report will be sent to you. You will share the
report with me and we will review it, mark it up, and give it to our project
manager.
➢ Our project manager will address all issues and send me corresponding repair
pictures that I will share with you.
➢ You will receive the appraisal from your lender. We ask if you could please
upload it so we may have a record of it.
➢ At this time, closing is right around the corner. It is crucial at this point stay in
constant contact with your lender so we may close on the property. Lender
will receive the appraisal, it will go into underwriting, and then receive the
clear to close. The title company will work directly with you and your lender to
schedule a signing/closing date that work for everyone.
➢ When applicable, I will update you on the leasing status of the property on a
weekly basis.
➢ Lastly, you close on the property and I connect you directly to your account
manager with our Property Management team, rounding out our COMPLETE
turnkey operation.
2 STRATEGIC MARKETS. ONE STRATEGIC TEAM
• 567 Commercial Properties within1 mile
• $159,461 is avg sales price ofresidential housing within 3 miles
• Avg. sq ft of housing in the area is1,256 (1 mile or less)
• Average property turnaround every10.68 years
• 4 bedroom homes only make up 3.7%of housing in the neighborhood, thusmaking it an attractive rental
• Largest age demographic is 22 to 34,making up a total of 25.82%
3632 Carrington, Memphis, TN 38111Stars below represent properties under Management by CB Properties Memphis
This 4 bedroom 2 bath house is a 1.5 story building built in 1954 that is 1,422 square feet. Our in house property management has a nice size portfolio of homes in the area. Catty corner at the SE corner to Patterson Cove, we rented out that house at $995 in 2 weeks. Located inside the 240 loop, near the University of Memphis, 15 minutes from Overston Square, Cooper Young, East Memphis & the airport. The U of M area has undergone an dramatic revitalization of high end condos, commercial construction and most notably, the improvements to the Highland Strip which include several restaurants and added shopping & entertainment. Our spec renovation is designed to maximize cash flow through maintenance & tenant turn cost reduction and vacancy reduction as our updates will make this home an desirable place to live. Major CAPEX improvement include new HVAC and Roof. The gutting of both bathrooms will give the house an great look, plus position for less maintenance through all new plumbing.
20% Cash Flow Analysis 3632 Carrington
Turnkey Properties has vetted strategic lenders that specialize in investor loans that are able to complete loans in an timely manner with competitive rates. These lenders have experienced underwriters who know which documents to request, thus eliminating obscure document request that often times slow down the lending process and cause unnecessary additional work on all parties. While we have no problem with our clients utilizing lenders of their choice, we find it necessary to waive the 1st month lease up fee if lenders outside our network do not close within the specified contract date, if and only if the lender or lender request is the cause of the missed contract date.
Please request preferred lender list.
2 STRATEGIC MARKETS. ONE STRATEGIC TEAM
Comparable Three Up Report
Subject Comparable 1 Comparable 2 Comparable 3
Property Photo
Address 3632 Carrington RdMemphis, TN 38111
3549 Marion AveMemphis, TN 38111
3660 Douglass AveMemphis, TN 38111
758 Patterson StMemphis, TN 38111
Distance to Subject - 0.24 mi 0.29 mi 0.32 mi
MAAR Subdivision Sherwood Forest Colonial Heights Colonial Heights R W Rosebrough
Map 758B 758A 758A 758A
Sale Date 08/29/1997 07/05/2017 08/25/2017 11/30/2017
Sale Type Normal Sale Normal Sale Normal Sale Normal Sale
Sale Price $63,000 $102,000 $92,500 $108,000
Seller Concessions - ($4,000.00) - ($4,000.00)
Adjusted Sale Price $63,000 $98,000 $92,500 $104,000
Mortgage % & Type CU 98FH 75CV CU
Source Apr Apr MLS MLS
Effective Date 12/84 09/09 12/10 12/07
SqFt 1422 1034 1169 1277
$/SF $44.00 $95.00 $79.00 $81.00
Stories 1.5 1 1 1
Total Rooms 7 5 5 6
Bedrooms 3 2 2 2
Baths (full.half) 2.0 2.0 1.0 1.0
Parking G2D
Construction Brick/Wood Composition Wood Composition/Brick Wood Composition Brick/Other
Condition C4 -Average Condition
Year Built 1954 1922 1932 1947
Acres 0.17 0.18 0.19 0.18
Central Air No Yes Yes
Pool No No No
Heat Gas Forced Gas Forced
Fireplace 1
Min Sale Price: $92,500Max Sale Price: $108,000
Median Sale Price: $102,000
Min Sqft: 1,034Max Sqft: 1,277Avg Sqft: 1,160
3 ComparablesAvg Sale Price: $100,833
Avg $/SF: $87
COPYRIGHT © 2018 COURTHOUSE RETRIEVAL SYSTEM. ALL RIGHTS RESERVED.Information Deemed Reliable But Not Guaranteed.
1
3632 Carrington SCOPE OF WORK
Roof
Layover (waiting on roofer to inspect)
25 yr Royal Sovereign Gray Weathered Stain Guard 3-Tab Shingles
General Spec
Replace Blinds as Necessary
Closet rods in all closets
Interior 3 color Paint with focus on no paint bleeds or paint over of outlets or hinges
Interior door open and close smoothly
Kitchen and hall smoke detector along with kitchen Fire Extinguisher installed
CO2 alarm installed
Check insulation around all exterior doors
Strike plates on doors
Remove window units
Fill holes in/between bricks
Flooring
Vinyl plank in kitchen, den, dining, hall (downstairs)
New carpet in BR’s (downstairs and upstairs), stairs, and upstairs landing)
New ceramic tile in both bathrooms (tub surrounding)
Plumbing Spec
Check all valves, P-traps and DWV pipe for leaks (replace supply lines, valves and p-traps as necessary).
Check shower drains and area drains for proper installation and drainage
Inspect plumbing in crawl space and attic
Check toilet for property installation. Repair and replace as necessary
Replacement toilet if needed (HD # 340995)
Repair & replace exterior hose bibs as necessary
Check Washer Box for property function and drain fall and venting
Check DWV system for plumbing back up (run all fixtures simultaneously for long period of time)
All plumbing pipes to be insulated
When HWT is installed code has to be met
Install extension pipe on temperature/pressure relief valve on HWT if needed
HWT 2002 – Install NEW
Laundry box. OK
HWT NEW. Existing gas tank will not pass code (too close to the rafters)
2
Electrical Spec
All outlets work and verified through tester
No open grounds/all new outlets and switches
Weather heads checked and replaced/repaired as necessary
All interior and exterior outlets/switches KEEP
Open junction boxes closed
All interior/exterior lights working
Proper Breaker Amps in box for reciprocating item
Service box adjustment to meet code
Service Panel and weather head NEW
Move 220V stove outlet to the new stove location
HVAC Spec
Condensate line checked for clearance
Ducts not smashed
AC’s exterior lines insulated & cage installed
Relocate gas, drain, and duct pipes as needed
Remove window units
AC 1998. NEW
Furnace 1998. NEW
Exterior Spec
All grounds cleaned of construction debris and no paint on foliage
All windows open and lock, check for cracks
Install Security Doors x2 (master BR and garage to back yard)
Paint wood siding, trim and shutters
Pressure wash walkway to the door
Repair soffit, fascia, and siding (massive rotted wood)
All exterior lights working
Secure shutters against brick
Install approximately 70 linear feet of fence
Install gate
Remove posted mail box and paint existing wall mounted.
Landscaping
Clean out beds
Clean grounds
Put mulch on existing flower bed in front
Plants bushes
Mow grass
Remove branch from backyard
Attic
Attic doors & attic in general insulated well and clean
3
Hallway (down and upstairs)
Spec BN (HD #353598)
Den
Spec 52” fan (HD# 165474)
Dining Room
Spec BN (HD #353598)
Upstairs bath Gut it Replace toilet (HD # 340995)
Reglaze tub
Spec shower faucet and head (HD# 1000017557)
Counter ok
Spec sink faucet (HD #505838)
Spec medicine cabinet
Kitchen & Area off Kitchen
Paint cabinets
Spec Vent-A-Hood (HD# 435140 Black)
Move above stove cabinet closer to back door
Sink ok
Keep existing faucet if possible
Spec HD countertops
Spec white kitchen fan (HD# 754470)
Open space for dishwasher
Spec Dishwasher (HD #527767) Black
Laundry
Will determine with plumber if it is feasible to keep it upstairs instead that having it in the kitchen as
originally was)
Stairs
New handrail
Bed 1 (downstairs)
Spec BN (HD #353598)
See Master bedroom for wall instructions
Bed 2 (upstairs)
Spec BN (HD #353598)
Secure paneling and paint
4
Bed 3 (upstairs)
Spec BN (HD #353598)
Secure paneling and paint
Master Bed (off stairs) (downstairs)
44” fan Spec (HD #1000725632)
Cancel existing door
Open new entry through hall
Build wall between the two bedrooms
Downstairs Bath
Gut it
Reglaze tub
Spec light (4bulb HD# 108898) Spec shower faucet and head (HD# 1000017557)
Paint vanity
Counter ok
Spec sink faucet (HD #505838)
Spec medicine cabinet
Front Porch
Spec ceiling light (HD# 1000640737)
Security door OK
Paint floor
Eliminate posted mailbox
Spec wall mailbox
Back Patio
Spec wall light (HD# 1000527751)
Security door OK
Remove 2x4’s
TWO STRATEGIC MARKETS. ONE PROVEN TEAM.
Turnkey Properties, GP
OUR MAINTENANCE GUARANTEE Property inspections are not always successful in finding all the flaws with a
property as our home inspections are done typically while the home is vacant
or soon after a tenant moves into the property. Such flaws that are present may
only surface when a tenant has been living in a house cycling and running
simultaneous items within the major systems of the house. To protect our clients
cash flow and give them piece of mind with their purchase, all Turnkey
Properties come with a maintenance guarantee of 90/180 days after the
purchase date listed on the closing settlement statement. If a tenant is not in
place at time of closing, the warranty would begin after tenant occupancy as
listed by the 1st day on the tenant lease.
The 90-day warranty covers items within the 4 walls of the home. The 180-day warranty covers the HVAC
system of the house. Depending on when the property was bought, it may be impossible to test the entire
heating and air system. For example, if a property was bought in January, it would be impossible to test
the AC for property function. The 180-day warranty is designed to give our investor piece of mind that the
heating and air system is functioning properly.
Between our renovation, the client’s property inspection and this warranty, we are successful in in
substantially reducing the maintenance cost well below our projections during the first few years of
ownership, especially during the initial tenant lease. This warranty is our commitment that we stand by
the work performed during the renovation of the property and from the inspector’s punch list; however,
there are a few items that can happen completely out of our control, which are listed in the exclusions
below.
Certain items are excluded from the 90/180 day warranty. These items include:
• Damage done due to tenant negligence
• Vandalism/Theft
• Acts of God
• Force Majeure
• Power Surges
Property Address: ____________________________________________________________________
Buyer: _______________________________________________________________________________
Seller: _______________________________________________________________________________
Date: _______________________________________________________________________________
• Appliances not installed by Memphis Turnkey
• Pilot lighting of Furnace
• Vermin
• Products that fall under Manufactures warranty
TWO STRATEGIC MARKETS. ONE PROVEN TEAM.
Dear Investor,
As you know, we are constantly developing new techniques and ideas for maximizing the
returns on our properties. One of our largest expenses is insurance, and thus we have worked
with a local broker, Insight Risk Management, to put together a program that will afford all of
our clients the best possible coverage at the most competitive rates. By aggregating all of our
insurance purchasing with a single company, we have been able to leverage the volume to
get better pricing than can be achieved by any one investor.
This program is tailored specifically for our rental properties and has the following coverages:
1. Replacement cost coverage so that the insurance company is obligated to replace
the property, subject to the deductible, without any allowance for depreciation or
similar limitations
2. Limits of $90 a square foot, which should be appropriate under most circumstances,
though you should review your own home to ensure this is sufficient
3. Lost rents of $12,000 a year should a large loss occur
4. $2,500 deductible without any other charges such as depreciation or coinsurance
5. $1,000,000 of general liability coverage per location, thus providing separate limits for
each house. There is a $3,000,000 aggregate.
6. Standard general liability wording without any exclusions for assault, battery, sexual
abuse or animals
7. No coverage for contents, so you are not paying for any contents that you do not own
8. There is no vacancy limitation. Theft and vandalism is covered the entire term.
9. “A” rated carrier
A typical house costs about 33% less on this program than with other carriers, and no individual
underwriting is required.
Sincerely
Alex Craig
President
Turnkey Properties
Date: 12/5/2017
Thank you for your interest in the CB Properties insurance program. It is written with Great American E
& S Insurance Company. Below is a summary of the program. If you have any questions, please feel free
to reach out to us. Becky Parker is the program administrator and can be reached at +1 901.202.8647 or
• This program was specifically designed for the rental houses that CB Properties manages and
has been tailored to fit their profile. Thus, in order to qualify for the program, your house must
presently be managed by them. If at any time this is not the case, we will have to arrange for an
alternative insurance arrangement for you.
• Perils: Special. This is the broadest coverage available, though it excludes earthquake and
flood.
• Valuation basis: Replacement cost. The policies replace any damaged building, without
subtracting any amounts for depreciation, provided you rebuild. The alternative valuation basis
is called Actual Cash Value, but this should be avoided if possible because it can leave an owner
without sufficient coverage to cover losses.
• Limit: We use the Shelby County Assessor to estimate the square footage of the building. If this
is incorrect, then please let us know. Buildings are insured for $90 a square foot.
• Contents: No contents coverage is typically provided as most owners have no contents in the
building.
• Business income: $12,000 loss of rents is included to protect against loss income due to an
insurable event.
• Sewer backup sublimit of $10,000 per location.
• Deductible: $2,500 per occurrence.
• Liability: each house has a dedicated $1mm limit per occurrence / $3mm in aggregate limit.
Thus, any liability losses that occur to other members of the program have no effect on the
limits that you will have dedicated to your home.
• Vacancy: There is no limitation. Theft and vandalism are covered.
• Additional insureds: the management company as well as any lenders is automatically included
as additional insureds on the policy at no extra charge.
• Coverage is contingent on CIS, Services receiving the premium, and no coverage is in force until
such premium has been received. Coverage will be effective from the Start Date and run 12
months. You will be contacted at renewal to see if you would like to renew coverage.
Based on the information that we have been provided, below is a quote for your investment property:
Property Address: 3632 Carrington Road, Memphis, TN 38111 Premium + Tax = $604.52
• Building limit: $133,650 (1485 sq ft)
• Business income limit: $12,000
• Deductible: $2,500 for all perils.
• General Liability limit: $1mm per occurrence / $3mm in aggregate.
CB Properties Memphis · 1060 Brookfield Rd · Memphis, TN 38119
ww.MemphisRentalHomes.com · Investor Hotline: 901-410-2355
Property Management Fee Structure • House monthly management fee is 9% of rent collected with minimum of $50. Memphis Turnkey
Clients have a discounted rate of 8%• 75% of first month rent or $750, whichever is greater thereafter; Memphis Turnkey clients have their
first tenant placement fee after purchase waived• 15% maintenance over vendor invoice and materials purchased• 5% fee if property management pays any invoices on the owner’s behalf such as attorney invoices,
utility invoices, taxes and insurance. Owner has the option to pay these to avoid the additional markup• $150 lease renewal fee. This will be returned to the owner if the tenant moves out before fulfilling half
of the renewal• Late fees are retained
Property Management FYI’s: • For best customer service of our investors and tenants, property management pays a month inarears.
This allows us to quickly service our tenant’s maintenance issues and have to request funds wiredwhich can be an inconvenience to our investors
• In most cases, we collect a reservation fee from our tenants in lieu of a security a deposit. Thereservation acts a security deposit, but instead of property management keeping those funds in anescrow account, it is paid to the investor as income after tenant occupancy. In other words, it is likegetting your security deposit up front instead of upon move out. If a tenant insist on a security deposit,we will collect and put in our escrow account at Triumph Bank
• You will be assigned a Portfolio Manager as your point of contact for all communications. ThisPortfolio Manager will also be the point of contact for your tenant too. Upon closing, you will begiven not only that individuals direct line, but also an investor hotline so that you are 99% guaranteedto get a person on the phone when you need us. Customer service is very important to us and thissystem allows for best customer service.
• We use Propertyware as our Property Management software. For best customer service, we stronglyrecommend utilizing your portal to communicate with your Portfolio Manager
• $400 is the threshold for having to request owner permission to move forward. You will get anotification, if you allow, on every maintenance issue that is entered. That is your opportunity toengage us with questions
• We focus on transparency with our billing and maintenance work. You will see before and afterpictures, along with a vendor invoice to match. Our goal is for our investors to never question whetheror not something was done
For an more detailed overview of CB Properties Memphis, please see the secured link below:https://memphisturnkeypropertiesgp.box.com/v/CBPropertiesOverview
2 STRATEGIC MARKETS. ONE STRATEGIC TEAM
Click on the Image Below to Hear What our
Clients are Saying About Us!
Turnkey Client of the Month
Also Check Out the Rest of Our You Tube Page for
Interesting Videos about our Company, Real Estate
Tips and Past Renovations. Click on The You Tube
Logo Below to Get There!
www.youtube.com/user/memphisturnkey