Rose Michael Properties, LLC is seeking a $150,000 investment to secure commercial lending for a property.
Executive Summary:
Rose Michael Properties, LLC is seeking funds of $150,000 to purchase a one (1) multifamily property, rehab to increase value of the property, rent out the renovated units, and refinance as an exit strategy for the investor. The Rose Michael Properties, LLC team has extensive experience in real estate investing, property management, and construction management. The overall goal is to generate long-term cash flow and capital appreciation through acquiring, rehabilitating, and managing multifamily properties in desirable neighborhoods.
Market Analysis:
The multifamily real estate market is strong, with high demand for quality properties in desirable neighborhoods. Rose Michael Properties, LLC will target market properties with 5-10 units, located in areas with strong rental demand and low vacancy rates. Rose Michael Properties, LLC will focus on properties that are underperforming, distressed, or in need of renovations, with the potential to increase value through upgrades and renovations.
Investment Strategy:
Rose Michael Properties, LLC investment strategy is to purchase multifamily properties with a maximum acquisition cost of $500,000 per property that can be secured by lender financing. Rose Michael Properties, LLC will target properties that have the potential to increase in value through upgrades and renovations. Rose Michael Properties, LLC will manage the renovation process in-house to control costs and ensure quality workmanship. Rose Michael Properties, LLC exit strategy is to refinance the property within 2-3 years, leveraging the increased value to repay investors and generate long-term cash flow and appreciation.
Services:
Rose Michael Properties, LLC services will include property acquisition, rehab and construction management, property management, and exit strategy execution. Rose Michael Properties, LLC will manage the entire process in-house, from acquisition to exit, to ensure quality workmanship, timely completion, and maximum profitability.
Financial Projections:
The following financial projections are based on the purchase of a multifamily property with 10 units at the cost of $485,000, with $100,000 allocated for renovations and operating costs.
Year 1:
Gross Rental Income: $90,000
Operating Expenses: $51,600
Net Operating Income: $38,400
Owner Contribution: $30,000
Cash Flow: $68,400
Year 2:
Gross Rental Income: $120,000
Operating Expenses: $51,600
Net Operating Income: $68,400
Owner Contribution: $30,000
Cash Flow: $98,400
This is just an example of the potential projections that have been taken from a property of interest.
Maintenance and Management Expenses:
Rose Michael Properties, LLC estimated maintenance and management expenses to be approximately 20% of gross rental income. This includes property management fees, vacancy, repairs and maintenance, insurance, and other operating expenses.
Operations Plan:
Rose Michael Properties, LLC operations plan includes the following steps:
· Identify target properties and perform due diligence to purchase properties utilizing online methods and procedures.
· Secure financing for the purchase and renovation of the property.
· Manage the renovation process to ensure quality workmanship and timely completion.
· Rent out the newly renovated units and if needed hire a property manager to oversee day-to-day rental obligations.
· Refinance the property to continue to purchase properties and pay back investors.
About the Company:
Rose Michael Properties, LLC is established in Michigan with a valid EIN tax ID with an active business checking account. The company will be taking full advantage of properties that are connected to a large bodies of water. Shawn Carrie currently owns and operates Rose Michael Properties, LLC as the only member with 100% interest in the company. Shawn Carrie has worked in construction and has been involved with many different property projects. Shawn Carrie has become successful in IT where he has always made his employer successful, it’s now his turn at that success. Shawn Carrie is very confident in his approach and with the plan laid out that he can continue to work while overseeing the renovation progress. Shawn Carrie is currently working remotely doing IT remote work and will be able to travel and work at these locations as needed. He will also plan to continue to work 3 to 5 years supporting himself from his IT job. Shawn Carrie has already funded the business with over $45,000 thus far but able to use his current IT job to add an additional $2,500 per month to continue the BRRRR method. Rose Michael Properties, LLC would have a target demographic of people looking to vacation on these properties but still mindful of the long-term potential renters. Rose Michael Properties, LLC would invest primarily into properties with commercial units (5-10) however if a property presents itself Rose Michael Properties, LLC would review its potential for profit. Once a multi-unit property is purchased Rose Michael Properties, LLC would continue to rent out 75% of the units while renovation is occurring to ensure cash flow continues. After the bills are paid (including investor interest) the remaining profit will be put back into the property during the renovation phase.
Any and all feedback is welcomed.
Thank you for your time, a more detailed business plan can be provided upon request as well as future phone conversations.