New LLC wants to invest in multi-family units in order to provide affordable housing. The mission and motto at Langford Realty Arbitrage is "We Beautify The World One Property At A Time". To accomplish this objective, Langford Realty Arbitrage (LRA) would set up a 3 to 4 month joint-venture with angel (private) investors interested in the following scenario:
LRA - borrows $250,000.00 from investor @ 10% interest-only monthly payments. Balloon payment due in 3 to four months.
Target Property is a 4-family income-producer that is 75% occupied and grosses $5k monthly, This property is in Brooklyn, New York. If rent roll was increased to $3,100 per month per unit,
gross annual rental income would be $144k. The tenants pay their own utilities.
The seller is asking $910K .
My Lender wants 20% down - $182K. $68k remaining for repairs, taxes, and closing costs. Amt Financed with Lender $728K @ 14%, Will provide additional draw funds for rehab.
The ARV (After Repair Value) for this property will come in at $1.4MM. Rehab on this property is very minimum and can be completed in 3 months. The exit strategy for the Angel
investor would be to cash-out at $350k (in 3 months). That's LRA's niche in the NYC area. 4 family buildings selling for $800K to $950k can yield income and ARV at $1.5mm. Zillow has
their "Zestimate" value of this property coming in at $966K-$1.19mm before any rehab or enhancements are needed. There are other properties with metrics like these. So to investors
interested in short-term joint-venture arrangements, help us grow our portfolio and LRA will return 40% on every $250k invested (collateralized by a target property). We will manage the property and collect rent through a 3rd party management company.
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