Sept 2012 Income Property Showcase
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![Page 1: Sept 2012 Income Property Showcase](https://reader034.fdocuments.net/reader034/viewer/2022052522/554df403b4c905f7578b54df/html5/thumbnails/1.jpg)
September 2012
Income Property Showcase
If you have interest in acquiring a property shown today
SURVEY www.goo.gl/86eVH
GoTo Meeting CHAT BOX
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David CampbellJim Thylin
Jeff Lerman, Esq.
Today’s Panelists
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TODAY’S AGENDAEvaluate propertyEvaluate markets
Take notesSolicit feedback through polls
Acquisition follow up procedureExit Survey
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DisclaimersInformation may not be accurate
High reliance on 3rd parties for infoAll forecasts are inherently inaccurate
DO YOUR OWN DUE DILIGENCE before making an investment decision
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Real Estate Profit CentersCash throw off (aka cashflow)Tax savings from depreciation
Equity growth from loan amortizationEquity growth from price appreciation
Forced Equity from change of use /development
All numbers in this presentation show annualized profits solely using Cash Throw Off. Your returns could be potentially much higher when factoring all of the ways you can make money in real estate.
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Charles CondosVallejo, CA
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Property Information
•Waterfront redevelopment•Studio / 1 bath•Kitchen with window•396 Sq Ft.•Third floor•On-site laundry•Walking distance to the S.F. Ferry Terminal
Charles Condos - Vallejo, CA
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Charles Condos - Vallejo, CA
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Charles Condos - Vallejo, CA
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Financial Information
Charles Condos - Vallejo, CA
Purchase Price: $25000
Gross Rent: $6,600
8% Vacancy -$528
10% Management -$607
Property Taxes -$300
Insurance HOA
Maintenance -$300
HOA / Misc -$2,820
Net Operating Income $2,045
CAP Rate 8.2%
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SELLER Financing Information
Charles Condos - Vallejo, CA
Purchase Price $25000
Down Payment 50%
Down Payment $12500
Loan $12500
Closing Costs $2,000
Total Cash Invested $14,500Interest Rate 5%
Loan Term 30 years
Annual Payment -$805
NOI $2,045
Cashflow $1,240
Cash Throw Off 8.6%
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Local Rent Comparisons
Charles Condos - Vallejo, CA
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Median House ValueCharles Condos - Vallejo, CA
lower priced part of town
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Median Household IncomeCharles Condos - Vallejo, CA
lower income part of town
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Unemployment RateCharles Condos - Vallejo, CA
higher unemployment part of town
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Year BuiltCharles Condos - Vallejo, CA
older part of town
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Owner OccupancyCharles Condos - Vallejo, CA
rental community
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How can I make money with this property ?
• Rental income: creates monthly spendable cashflow
• Potential increase in rents
• SELLER FINANCING
• Loan Amortization: tenant’s pay down mortgage
• Tax Benefits: Depreciation
• Resell to owner occupant when market strengthens
Charles Condos - Vallejo, CA
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Single Family HomeMacon, GA (Atlanta)
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Macon, GA
Macon is the Fourth (4th) largest city in Georgia. Large air force base
Confederate - Macon, GA
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Property Information
• SFR Built in 2005 • $50,000 Purchase Price• 3BR / 2Bath• 1,932 Sq Ft on 0.27 Acres
Confederate - Macon, GA
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Confederate - Macon, GA
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Financial Information
Confederate - Macon, GA
Purchase Price: $50000
Gross Rent: $9,000
8% Vacancy -$720
10% Management -$828
Property Taxes -$600
Insurance -$450
Maintenance -$400
Replacement Reserve -$800
Net Operating Income $5,202
CAP Rate 10.4%
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Financing Information
Confederate - Macon, GA
Purchase Price $50000
Down Payment 25%
Down Payment $12500
Loan $37500
Closing Costs $3,000
Total Cash Invested $15,500Interest Rate 4.5%
Loan Term 30 years
Annual Payment -$2,280
NOI $5,202
Cashflow $2,922
Cash Throw Off 18.9%
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Local Rent Comparisons
Confederate - Macon, GA
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Median House ValueConfederate - Macon, GA
value consistent with area
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Median Household IncomeConfederate - Macon, GA
income above median
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Vacant Housing Unit for RentConfederate - Macon, GA
high OCCUPANCY rates
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Unemployment RateConfederate - Macon, GA
high employment rate
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Year Built Confederate - Macon, GA
newer than average
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Owner OccupancyConfederate - Macon, GA
mix of owners & renters
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How can I make money with this property ?
• Rental income: creates monthly spendable cashflow
• High leverage: 80% LTV at historically low fixed rates
• Loan Amortization: tenant’s pay down mortgage
• Tax Benefits: Depreciation
• Resell to owner occupant when market strengthens
• SUPER HIGH CAP RATE = CASHFLOW!!!
Confederate - Macon, GA
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“Bread and butter”Atlanta, Georgia
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Single family home Built in ~2002 3 bed / 2 bath 1,118 Sq Ft
Property Information
Clydesdale - Atlanta
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Atlanta, GeorgiaAtlanta is the primary transportation hub of the Southeastern United States
The Atlanta Metro is the 9th largest metro area in the nation with over 5.3 million residentsIts economy ranks 15th among world cities and 6th in the nation
Clydesdale - Atlanta
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Mableton, GA is a part of the 5 county Atlanta Metropolitan Area.
Location Information
Clydesdale - Atlanta
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Purchase Price: $63,000
Gross Rent: 10,200
Vacancy -816
Management -938.4
Property Taxes -1,020
Insurance -500
Maintenance -600
Net Operating Income 6,325.6
CAP Rate 10.0%
Financial Information
Clydesdale - Atlanta
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Purchase Price $63000
Down Payment 20%
Down Payment $12600
Loan $50400
Closing Costs $5,000
Total Cash Invested $17,600Interest Rate 4.5%
Loan Term 30 years
Monthly Payment -$3,064
NOI $6,326
Cashflow $3,262
Cash Throw Off 18.5%
Financing Information
Clydesdale - Atlanta
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Local Rent Comparison
Clydesdale - Atlanta
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Median House ValueClydesdale - Atlanta
higher priced part of town & below area median
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Median Household IncomeClydesdale - Atlanta
higher income area
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Vacant Housing Unit for RentClydesdale - Atlanta
ultra low vacancy
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Unemployment RateClydesdale - Atlanta
low unemployment
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Year BuiltClydesdale - Atlanta
newer part of town
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Owner OccupancyClydesdale - Atlanta
mostly owner occupied
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How can I make money with this property ?
• Rental income: creates monthly spendable cashflow
• High leverage: 80% LTV at historically low fixed rates
• Loan Amortization: tenant’s pay down mortgage
• Tax Benefits: depreciation over 27.5 years
• Resell to owner occupant when market strengthens
Clydesdale - Atlanta
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Single Family HomeIndianapolis, IN
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Indianapolis has a population of 830,000. It is the 12th largest city in the country and is the one of the fastest growing metropolitan
areas in the US.
Indianapolis, IN
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Property Information
• $55,000 • 3BR / 2Bath• 1 Car Garage•1,260 Sq Ft on 0.20 Acres• Built in 1957
Englewood - Indianapolis, IN
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Financial Information
Purchase Price: $55000
Gross Rent: $9,600
8% Vacancy -$768
10% Management -$883
Property Taxes -$660
Insurance -$450
Maintenance -$400
Replacement Reserve -$600
Net Operating Income $5,839
CAP Rate 10.6%Englewood - Indianapolis, IN
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Financing Information
Purchase Price $55000
Down Payment 20%
Down Payment $11000
Loan $44000
Closing Costs $3,500
Total Cash Invested $14,500Interest Rate 4.5%
Loan Term 30 years
Annual Payment -$2,675
NOI $5,839
Cashflow $3,164
Cash Throw Off 21.8%Englewood - Indianapolis, IN
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Local Rent Comparisons
Englewood - Indianapolis, IN
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Median House ValueEnglewood - Indianapolis, IN
below median
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Median Household IncomeEnglewood - Indianapolis, IN
below median
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Vacant Housing Unit for RentEnglewood - Indianapolis, IN
mostly high occupancy
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Unemployment RateEnglewood - Indianapolis, IN
mostly high employment
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Year BuiltEnglewood - Indianapolis, IN
older part of town
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Owner OccupancyEnglewood - Indianapolis, IN
mostly rental
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How can I make money with this property ?
• Rental income: creates monthly spendable cashflow
• High leverage: 80% LTV at historically low fixed rates
• Loan Amortization: tenant’s pay down mortgage
• Tax Benefits: Depreciation
Englewood - Indianapolis, IN
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Singly Family ResidenceClaremore, OK (Tulsa)
Claremore, OK
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Tulsa, OK2nd largest city in Oklahoma.
Tulsa County is the most densely populated county in OK.Claremore, OK
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Tulsa Metro Area boasts ~1 million people
Population Information
Claremore, OK
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Top Economic Drivers in Tulsa, OK1.Aerospace
American Airlines Tulsa International Airport FlightSafety International
2.Oil / Natural Gas Baker Hughes Williams Companies SemGroup Syntroleum WindStream Communciations
3.Shipping and Cargo Tulsa International Airport Tulsa Port of Catoosa
4.Higher Education University of Tulsa / Oral Roberts University
5.Other QuikTrip BOK Financial Corporation Dollar Thrifty Automotive Group
Claremore, OK
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Top Local Employers
AMERICAN LEATHERARMY & AIR FORCE EXCHANGE
SERVICESOLO CUP COMPANY
SWIFT TRANSPORTATIONTEXWOOD INDUSTRIES INC
US POSTAL SERVICE DISTRIBUTION CENTER
VA NORTH TEXAS HEALTH CARE SYSTEM
American AirlinesTulsa Intl. Airport
Williams Gas Pipeline TranscoSEMGroup Corp.Syntroleum Corp.
Tulsa Port of CatoosaUniversity of Tulsa
Oral Roberts UniversityQuikTrip Corp.
BOK Financial Corp.Dollar Thrifty Automotive Group
FlightSafety Intl
Baker HughesWindstream Communications
Claremore, OK
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Claremore is a Suburb of Tulsa, OKAdjacent to Rogers State University and Claremore Hospital
Location Information
Claremore, OK
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Single family home Built in ~1950 4 bed / 2 bath Detached 1 car garage 1,587 sq ft Can be leased as a 4/2 SFR or as a non-conforming duplex 3/1 + 1/1
Property Information
Claremore, OK
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Purchase Price: $55,000
Gross Rent: $700
7% Vacancy -$49
Management -$65.10
Property Taxes -$32
Insurance -$35
Maintenance -$60
HOA / Misc $0
Net Operating Income $458.90
CAP Rate 10.01%
Financial Information
Claremore, OK
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Purchase Price $55,000
Down Payment 3%
Down Payment $1,650
Loan $53,350
Closing Costs $3,000
Total Cash Invested $4,650Interest Rate 4.5%
Loan Term 30 years
Loan Payment -3,243.84
NOI 5,830.8
Cashflow 2,586.96
Cash Throw Off 55.6%
Financing Information
Claremore, OK
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Local Rent Comparison
Claremore, OK
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Median House Value Claremore, OK
borders on nicest area
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Median Household Income Claremore, OK
borders on nicest area
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Vacant Housing Unit For Rent Claremore, OK
mostly high occupancy
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Unemployment RateClaremore, OK
mostly high employment
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Owner Occupancy Claremore, OK
mostly owner occupied
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How can I make money with this property ?
•SUPER CASHFLOW of 55%?!?!
• High leverage: 100% LTV at historically low fixed rates
• Loan Amortization: tenant’s pay down mortgage
• Tax Benefits: depreciation over 27.5 years
• Resell to owner occupant when market strengthens
• Potential to raise rent
Claremore, OK
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“Double Duplex”Pride of Ownership Property
Broken Bow OK (Tulsa)
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2 Duplexes Fully Leased 3 bed / 2 bath each 1 car garage each 2,232 Sq Ft 0.67 Acres 1981
Property Information
Duplexes - Broken Arrow
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Purchase Price: $150000
Gross Rent: $1,600
Vacancy -$112
Management -$149
Property Taxes -$150
Insurance -$67
Maintenance -$60
HOA / Misc $0
Net Operating Income $1,063
CAP Rate 8.50%
Financial Information
Duplexes - Broken Arrow
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Purchase Price $150000
Down Payment 20%
Down Payment $30000
Loan $120000
Closing Costs $5,000
Total Cash Invested $35,000Interest Rate 4.5%
Loan Term 30 years
Monthly Payment -$608
NOI $1063
Cashflow $455
Cash Throw Off 15.6%
Financing Information
Duplexes - Broken Arrow
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Duplexes - Broken Arrow
Local Rent Comparison
POTENTIAL TO RAISE RENT
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Median House ValueDuplexes - Broken Arrow
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Median Household IncomeDuplexes - Broken Arrow
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Vacant Housing Unit for RentDuplexes - Broken Arrow
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Unemployment RateDuplexes - Broken Arrow
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Year BuiltDuplexes - Broken Arrow
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Owner OccupancyDuplexes - Broken Arrow
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How can I make money with this property ?
• Rental income: creates monthly spendable cashflow
• High leverage: 80% LTV at historically low fixed rates
• Loan Amortization: tenant’s pay down mortgage
• Tax Benefits: depreciation over 27.5 years
• Resell to owner occupant when market strengthens (strong schools)
• Efficiency of management if purchasing both properties, but dual exit strategy
• Potential to raise rents Duplexes - Broken Arrow
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3 Houses & 1 DuplexKansas City, MO
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Kansas City, MO
Kansas City is the largest city in Missouri and its metropolitan area has a population of over 2 million.
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Property Information
3 houses + duplexKansas City, MO
3 Single Family Homes Duplex
•4BR / 1Bath•5BR / 2Bath•3BR / 2Bath•No deferred maintenance•Rents at $650-$700
• Two Units at 2BR / 1Bath•Built in 2009•1,500 Sq Ft•Rents at $450 per Unit•No deferred maintenance• 95% seller finance available!
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Purchase Price: $240000Gross Rent: SFR $8,400Gross Rent: SFR $8,400Gross Rent: SFR $8,400Gross Rent: Dup $10,800
TOTAL RENT $36,0008% Vacancy -$2,880
10% Management -$3,312Property Taxes -$2,770
Insurance -$1,800Maintenance -$1900
Replacement Reserve -$2,400Net Operating Income $20,938
CAP Rate 8.7%
Financial Information - Duplex
3 houses + duplexKansas City, MO
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Purchase Price $240,000
Down Payment 5%
Down Payment $12,000
Loan $228,000
Closing Costs $5,000
Total Cash Invested $17,000Interest Rate 6%
Loan Term 30 years
Annual Payment -$16,400
NOI $20,938
Cashflow $4,538
Cash Throw Off 26.7%
Financing Information - Duplex
3 houses + duplexKansas City, MO
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Charles Condos - Vallejo, CA3 houses + duplexKansas City, MO
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3 houses + duplexKansas City, MO
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Median House Value3 houses + duplexKansas City, MO
SFH - E 67th Terrace
SFH - Bellefontaine
Ave
at median for area
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Median Household Income 3 houses + duplexKansas City, MO
SFH - E 67th Terrace
SFH - Bellefontaine
Ave
at median for area
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Unemployment Rate 3 houses + duplexKansas City, MO
SFH - E 67th Terrace
SFH - Bellefontaine
Ave
higher unemployment
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Year Built 3 houses + duplexKansas City, MO
SFH - E 67th Terrace
SFH - Bellefontaine
Ave
at median for area
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Owner Occupancy 3 houses + duplexKansas City, MO
SFH - E 67th Terrace
SFH - Bellefontaine
Ave
blend of owners & tenants
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Median House Value3 houses + duplexKansas City, MO
SFH - Crystal Ave
lower end of median for area
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Median Household Income 3 houses + duplexKansas City, MO
SFH - Crystal Ave
lower income
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Vacant Housing Unit for Rent3 houses + duplexKansas City, MO
SFH - Crystal Ave
good occupancy rate
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Median House Value3 houses + duplexKansas City, MO
Duplex -E 25th St.
at median for area
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Median Household Income 3 houses + duplexKansas City, MO
Duplex -E 25th St.
at median for area
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How can I make money with this property ?
• Rental income: creates monthly spendable cashflow
• SELLER FINANCING High leverage: 95% LTV
• Loan Amortization: tenant’s pay down mortgage
• Tax Benefits: Depreciation
• Sell off portfolio in pieces in the future
3 houses + duplexKansas City, MO
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Jeffrey H. Lerman, Esq. Lerman Law Partners, LLP
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Jeffrey H. Lerman, Esq.
Jeffrey H. Lerman, Esq.
•Featured expert—TV, radio, newspapers•2007 President, Marin County Bar Ass’n.•“The Real Estate Investor’s LawyerTM”•Chair, CA Bar Real Estate Litigation Section •Chair, Marin County Bar Real Property Section•General Counsel, 2 RE syndication companies•30+ yrs experience•Real estate investor•Real estate broker
www. RealEstateInvestorLaw.com
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Jeffrey H. Lerman, Esq.
Disclaimers & Cautionary Notes
This educational seminar is not a substitute for getting your own legal advice. This webinar is offered with the understanding that the speaker is not offering legal or other professional advice. Any actions with regard to the information contained in this seminar should be undertaken only upon the advice and counsel of competent legal and tax professionals. Receiving this information does not create an attorney-client relationship between you and the speaker.
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Jeffrey H. Lerman, Esq.
Disclaimers & Cautionary Notes
This educational seminar is not a substitute for getting your own legal advice. This webinar is offered with the understanding that the speaker is not offering legal or other professional advice. Any actions with regard to the information contained in this seminar should be undertaken only upon the advice and counsel of competent legal and tax professionals. Receiving this information does not create an attorney-client relationship between you and the speaker.
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Disclaimer
I’m not your lawyer.
You can’t sue me.
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Copyright 2004 © Lerman & Lerman – All rights reserved.
r Safer
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Copyright 2004 © Lerman & Lerman – All rights reserved.
Cheaper
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Copyright 2004 © Lerman & Lerman – All rights reserved.
Easier
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Copyright 2004 © Lerman & Lerman – All rights reserved.
Faster
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Copyright 2004 © Lerman & Lerman – All rights reserved.
Safer
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Copyright 2004 © Lerman & Lerman – All rights reserved.
CHeaper
Easier
Faster
Safer
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Copyright 2009 © Lerman Law Partners, LLP – All rights reserved.
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Copyright 2009 © Lerman Law Partners, LLP – All rights reserved.
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Jeffrey H. Lerman, Esq.
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Jeffrey H. Lerman, Esq.
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Forming Partnerships to Buy
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Copyright 2009 © Lerman Law Partners, LLP – All rights reserved.
#1: What is the best business relationship for you and your
partner to work together?
• Joint venture partners (both active)?
• Lender—borrower?• Active investor—passive
investor?
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Forming Partnerships to Buy
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Copyright 2009 © Lerman Law Partners, LLP – All rights reserved.
#2: What is the best form of ownership for you and your
partner?• Partnership Form
–General Partnership –Limited Partnership –Limited Liability Company
• TIC –Discuss flexibility of TIC to
allow partners to make different choices re 1031 on exit
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Working with Financing Partners
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Working with Financing Partners
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What's your biggest challengeas a real estate investor?
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What's your biggest challengeas a real estate investor?
• Can't afford to keep your current properties?• Want to take advantage of the best buyer's market in
decades, but can't find that "needle in the haystack" investment that makes economic sense?
• Can't afford the down payment to buy new properties?• Got bad credit?• Can't get financing?• Can't find the time to invest in real estate?
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• Find just the right strategic partner to meet your needs
• Convert your properties from problems into profits
• Avoid foreclosure• Avoid bankruptcy• Save your credit• Find great investments• Invest without worrying about getting financing• Invest with bad credit• Position yourself for incredible returns
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Partnering for Profit• September 20th noon - 1pm• FREE Webinar• David Campbell and Jeff Lerman
• http://www.hasslefreecashflowinvesting.com/events/webinar-partnering-for-profit/
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Chattanooga, TNThe future of the southeast
4Plex - Chattanooga, TN
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Geographic Information
Chattanooga is located in the heart of the southeast, centrally located between other major cities such as Nashville, Huntsville, Birmingham, Atlanta, Knoxville, Ashville, Columbia, and Charlotte
4Plex - Chattanooga, TN
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Multifamily Income
4Plex - Chattanooga, TN
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•Class B Fourplex•Four 4BR/2Bath•Totally Renovated in 2011•75% Occupancy•10 Minutes to downtown Chattanooga•Additional lot for potential construction of more units
Property Information
4Plex - Chattanooga, TN
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Financial Information
Purchase Price $240,000
Gross Rent $42,600
Vacancy -$4,260
Management -$3,834
Property Taxes -$1,152
Insurance -$1,400
Maintenance -$3,500
Utilities / Misc. -$900
Net Operating Income
$27,554
CAP Rate 11.5%
4Plex - Chattanooga, TN
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Purchase Price $240,000
Down Payment 25%
Down Payment $60,000
Loan $180,000
Closing Costs $4,600
Total Cash Invested $63,600
Interest Rate 4.5%
Loan Term 30 years
Payment -$10,944
NOI $27,554
Cashflow $16,610
Cash Throw Off 26%
Financing Information
4Plex - Chattanooga, TN
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Top Economic Drivers in Chattanooga, TN
1. Warehousing & Distribution• Amazon• Kenco Group
2. Manufacturing• Auto: Volkswagen / Miller Industries• Food: Mckee Foods Corporation/ Chattanooga Coca-Cola Bottling Co. • Construction Equipment: Astec Industries, Komatsu America Corp.
3. Insurance Services• Blue Cross BlueShield Of Tennessee/ UNOM
4.Healthcare • Erlanger Health System/ Memorial Health Care/ CIGNA Health Care/ Parkridge Medical Center
5. Higher Education • University of Tennessee at Chattanooga/ Chattanooga State/ Southern Adventist University
6. Utilities• Tennessee Valley Authority/ Electric Power Board of Chattanooga
4Plex - Chattanooga, TN
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Top Local Employers
BlueCross BlueShield of TennesseeTennessee Valley Authority
Erlanger Heath SystemMemorial Health Care System
McKee Foods CorporationUnum Group
Volkswagen Chattanooga
4Plex - Chattanooga, TN
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Location Information
Submarket Description4Plex - Chattanooga, TN
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Local Rent Comparison
4Plex - Chattanooga, TN
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Median House Value4Plex - Chattanooga, TN
just outside high priced area
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Median Household Income4Plex - Chattanooga, TN
middle class area
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Vacant Housing Unit for Rent4Plex - Chattanooga, TN
Low vacancy area
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Unemployment Rate4Plex - Chattanooga, TN
ultra low unemployment
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Year Built 4Plex - Chattanooga, TN
older part of town
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Owner Occupancy 4Plex - Chattanooga, TN
mixed rentals & owner occ
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How can I make money with this property ?
• Rental income: creates HUGE monthly spendable cash flow
• High leverage: 75% LTV at historically low fixed rates
• Loan Amortization: tenant’s pay down mortgage
• Tax Benefits: depreciation
• Resell for profit if CAP rates are compressed and/or if rents increase
• Increased Occupancy/Potential Rent Increases(current rents are 5-10% less than market rents).
4Plex - Chattanooga, TN
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“Dollar Mailbox Money”North GA Dollar General Portfolio
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Property Information
• Corporate Guaranteed Leases• Newer Construction• Little Landlord Responsibility• 5-8 Years Left on Current Lease Terms
• Lease Options in Place• Scheduled Rent Bumps with Renewals
• Largest Small Box Retailer in the United States
Dollar General - GA
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Purchase Price: $477527
Gross Rent: $3,500
Vacancy $0
Management $0
Property Taxes Tenant Pays
Insurance Tenant Pays
Maintenance -$167
HOA / Misc -$50
Net Operating Income $3,283
CAP Rate 8.25%
Financial Information
Dollar General - GA
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Purchase Price $477,527
Down Payment 15%
Down Payment $71,629
Loan $405,898
Closing Costs $7,500
Total Cash Invested $79,129Interest Rate 5%
Loan Term 20 years
Monthly Payment -$2678
NOI $3283
Cashflow $605
Cash Throw Off 9.2%Dollar General - GA
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How Can I Make Money with this Property?
• Rental Income: creates monthly spendable cashflow
• High Leverage: 85% LTV at historoically low fixed rates
• Loan Amortization: Tenant pays down mortgage
• Tax Benefits: Depreciation over 39 years
• Property appreciation through CAP rate compression
• Rent increases with renewal options yield higher future returns and potential appreciation
Dollar General - GA
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“Mailbox Money”United State Post Office - Macedon, NY
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Property Information
• Population 8,688• Median household income - $52,000
Macedon, NY - Post Office
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Macedon, NY
• Main Post Office for Macedon, NY• 39,927 Sq Ft property• 3,625 Building Size• New roof added in August, 2010• Landlord is only responsible for roof, structure, and liability insurance
• 5 years left on current lease. 3 - 5yr options remaining
Macedon, NY - Post Office
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Financial Information
Macedon, NY - Post Office
Purchase Price: $950000Gross Rent: 5 yrs $68,875Gross Rent: 5 yrs $94,464Gross Rent: 5 yrs $106,272Gross Rent: 5 yrs $119,556
AVG RENT $97,292Vacancy 0
Management $0Property Taxes $0
Insurance -$1,100Maintenance 0
Replacement Reserve -$400Net Operating Income $95,792
CAP Rate 10.1%
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Macedon, NY - Post Office
Financing Information
Purchase Price $950000
Down Payment 20%
Down Payment $190000
Loan $760000
Closing Costs $10,000
Total Cash Invested $200,000Interest Rate 6%
Loan Term 20 years
Annual Payment -$65,339
NOI $95,972
Cashflow $30,633
Cash Throw Off 15.3%
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How Can I Make Money with this Property?
• Rental income: creates monthly spendable cashflow
• Loan Amortization: tenant’s pay down mortgage
• Tax Benefits: depreciation over 39 years
• Resell to owner occupant (potential owner user property)
• Rent Increase at renewal period
• CAP Rate compression would increase the value of property
Macedon, NY - Post Office
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September 2012
Income Property Showcase
If you have interest in acquiring a property shown today
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