Executive Summary: We are seeking funds of up to $1.5M to purchase a multifamily property, rehab to increase value, and refinance as an exit strategy for the investor. Our team has extensive experience in real estate investing, property management, and construction management. Our 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. Our target market is properties with 5-20 units, located in areas with strong rental demand and low vacancy rates. We 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: Our investment strategy is to purchase multifamily properties with a maximum acquisition cost of $1.5M. We will target properties that have the potential to increase in value through upgrades and renovations. We will manage the construction process in-house to control costs and ensure quality workmanship. Our 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: Our services include property acquisition, rehab and construction management, property management, and exit strategy execution. We will manage the entire process in-house, from acquisition to exit, to ensure quality workmanship, timely completion, and maximum profitability.
Marketing Strategy: Our marketing strategy will focus on targeted direct mail campaigns, social media marketing, and networking with local real estate agents and investors. We will leverage technology to streamline our operations and stay ahead of our competitors. We will also offer referral bonuses to encourage satisfied clients and investors to refer new businesses.
Financial Projections: The following financial projections are based on the purchase of a multifamily property with 10 units at the cost of $1.2M, with $300,000 allocated for renovations and operating costs.
Year 1:
- Gross Rental Income: $200,000
- Operating Expenses: $75,000
- Net Operating Income: $125,000
- Debt Service: $75,000
- Cash Flow: $50,000
Year 2:
- Gross Rental Income: $220,000
- Operating Expenses: $75,000
- Net Operating Income: $145,000
- Debt Service: $75,000
- Cash Flow: $70,000
Year 3:
- Gross Rental Income: $240,000
- Operating Expenses: $75,000
- Net Operating Income: $165,000
- Debt Service: $75,000
- Cash Flow: $90,000
Year 4:
- Gross Rental Income: $260,000
- Operating Expenses: $75,000
- Net Operating Income: $185,000
- Debt Service: $75,000
- Cash Flow: $110,000
Year 5:
- Gross Rental Income: $280,000
- Operating Expenses: $75,000
- Net Operating Income: $205,000
- Debt Service: $75,000
- Cash Flow: $130,000
Maintenance and Management Expenses: We estimate maintenance and management expenses to be approximately 25% of gross rental income. This includes property management fees, repairs and maintenance, insurance, and other operating expenses.
Operations Plan: Our operations plan includes the following steps:
- Identify target properties and perform due diligence.
- Secure financing for the purchase and renovation of the property.
- Manage the construction process to ensure quality workmanship and timely completion.
- Hire a property manager to oversee day-to-day.
A more detailed business plan can be provided upon request.
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