My husband and I are currently looking to fund a deal for a 4 mixed-use building real estate deal in downtown Davenport, IA. There are 89 units together with 4 being commercial spaces. The buildings cash flows great and has the potential for unit renovation and rent increases to get even more revenue.
We are looking for a private equity partner who could loan us $350,000 on a 3-year note.
Over that time, the partner would receive a monthly payment of $2,050 and at year 3 be repaid $250,000 plus a $25,000 bonus when we refinance in 3 years. We want to take on one equity partner but would be open to multiple if that made the deal happen. Terms are negotiable, as well. We can provide all buildings' financials from the last 12 months.
We are going under contract on this April 15th. We need to close by June 1st. If interested, please reach out.
Here is our business plan for these buildings:
1. Business Description:
Our venture aims to acquire and manage three downtown buildings, each housing residential apartments and a commercial spaces. We will focus on creating a thriving community hub that caters to residents and visitors alike, fostering a lively atmosphere that benefits both residents and local businesses.
2. Market Analysis:
- Downtown areas are experiencing revitalization efforts with the Downtown Davenport Partnership. This creates an increasing demand for mixed-use properties offering convenience and amenities.
- The demand for quality residential units in urban settings continues to rise, driven by factors such as population growth, lifestyle preferences, and proximity to amenities for Gen Z and millennials.
- The restaurant industry is rebounding post-pandemic, with consumers eager to dine out and experience diverse culinary offerings.
3. Strategy:
- Acquisition: We are seeking to acquire these buildings with $250K down from private money and the remaining funds to cover the purchase are with a carry back note with seller. We are acquiring all three buildings well under market value so this creates instant equity.
- Renovation + Rents: We will undertake strategic renovations to enhance the appeal and functionality of the residential and commercial spaces, ensuring they meet modern standards while preserving their historic charm. While many of the apartments have been renovated, there are still 13 identified apartments that need renovations. Also, we have a huge opportunity for increased cashflow with raising rents on almost every apartment in the portfolio to market rent.
- Tenant Management: Our focus will be on attracting high-quality tenants for both residential and commercial spaces, fostering a sense of community and collaboration. Eryk has a half decade of property management experience and current manages a mixed use space we are partnered, as well as our residential portfolio. We will be using Appfolio to manage rent payments, work orders, and vacancies. We use Zillow, Facebook, and referrals to fill vacancies and will be taping into the Palmer Chiropratic connection to fill the spaces with high quality tenants.
- Marketing and Promotion: We will implement a comprehensive marketing strategy to attract tenants and patrons to the buildings, leveraging both online and offline channels to maximize visibility and engagement.
4. Financial Projections:
- Revenue Streams: Rental income from residential units and commercial spaces, as well as potential ancillary revenue from amenities and services.
- Expenses: Acquisition costs, renovation expenses, ongoing maintenance, property management fees, and operational costs.
- Profitability: We anticipate steady growth in rental income over time, leading to attractive returns for our investors.
5. Risk Management:
- Economic Fluctuations: We have conducted thorough market research and stress-testing to assess the potential impact of economic downturns and implement strategies to mitigate risk. We have a steady income with Danielle’s full-time job and business and do not need cash flow from these buildings to live so our earnings will be kept in savings account for emergency reserves for at least the first year.
- Regulatory Changes: Stay informed about local zoning regulations and building codes to ensure compliance and adaptability to any changes.
- Tenant Turnover: Implement proactive tenant retention strategies to minimize vacancy rates and maintain stable cash flow.
6. Exit Strategy:
- Long-Term Hold: Plan to hold the properties for the foreseeable future, benefiting from ongoing rental income and potential appreciation in property values. We will be refinancing to pay back our carryback note with the seller and potentially our private lending note at year 3.
- Opportunity for Sale: Evaluate market conditions periodically and consider selling the properties if an attractive opportunity arises to maximize returns for our investor.
Conclusion:
Our business plan outlines a compelling opportunity to acquire and revitalize three downtown buildings, creating a dynamic mixed-use space that contributes to the vibrancy and economic growth of the community. With the support of private investors, we are confident in our ability to execute our vision and deliver attractive returns while making a positive impact on the local area.
My husband, Eryk, and I are invested in Davenport and the Quad Cities and truly would appreciate your help in making our dream happen.
I am lifelong resident and Eryk is a SoCal transplant that has family roots in the area. We are devoted to bettering the community we love and bringing these historic buildings back to their former glory.
Your complete trust in us is what we aim to do for the community with our well-built business structure, processes, and procedures is crucial for us to make this the most profitable and impactful partnership.
Please, let us know if you need any additional supporting documents or conversations needed to ensure 100% satisfaction with investing with us.
Thank you for helping us make this dream a reality for our family.
Danielle & Eryk Hollembaek