Executive Summary
This is an opportunity to partner with an experienced real estate professional, Ausari, to build a substantial portfolio of rental properties generating significant cash flow and long-term appreciation. By leveraging Aridah's expertise in acquiring and renovating distressed properties, we can capitalize on undervalued assets and maximize returns. This in and in an area that is currently in a housing shortage. Yet has some of the fastest growing areas in Texas.
Investment Highlights
- Target Market: Houston and Houston Metro areas Distressed and foreclosed single-family homes, some new builds acquired below market value through auctions and other channels.
- Value-Add Strategy: Expert renovation and rehabilitation to increase property values and rental income.
- Experienced Operator: Aridah has over 20 years of experience in renovating properties for profit.
- Strong Growth Potential: A phased investment approach allows for controlled expansion and equity building.
- Incentive 70/30 split with the investor getting 70% of net profits upon liquidation, with potential for annual bonus payments at the end of each yr.
Investment Structure
- Initial Investment:
- You invest $5 million to acquire 17 homes.
- Aridah contributes 10 renovated homes (valued at approximately $2.9 million) to the portfolio using equity form the 17 homes thereby sharing market risk.
- Phased Growth:
- For every additional 17 homes funded by your investment, [Your Name] adds 10 more through equity built in the portfolio.
- This pattern continues until reaching 100 homes.
Financial Projections
- Conservative Estimates: Based on an average property value of $290,000 after renovation.
- Portfolio Value: $41.4 million upon reaching 100 homes.
- Equity Growth: Your initial $5 million investment can grow to over $24 million in equity.
- Cash Flow: Strong rental income with potential for annual bonus distributions.
- Long-Term Appreciation: Benefit from property value increases in a growing market.
Management and Operations
- Acquisition & Renovation: Aridah leverages their network and expertise to secure and renovate properties cost-effectively.
- Property Management: A professional third-party company handles tenant acquisition, rent collection, and property maintenance.
- Reduced Management Fees: This has been pre negotiated for Fees decrease as the portfolio grows, maximizing profitability.
Exit Strategy
- Liquidation after 14 years: Sell the entire portfolio and distribute net profits according to the agreed-upon 60/40 split or we can see what is next. There are options
Why Partner with Aridah
- Proven Track Record: Aridah has a history of successfully identifying and rehabbing distressed properties.
- Strong Market Knowledge: Deep understanding of local market dynamics and investment opportunities.
- Commitment to Success: Aligned incentives ensure a focus on maximizing portfolio value and profitability.
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