102-Sp Sportsman's Cove MHP/RV

Transcription

1 102-Space 55+ Community - 45-MH & 57 RV 8 Park Models - 5 MH's - 3 RV's Owned by Park - City Water/WWTP Waterfront Canal leads to Orange Lake - Includes Docks & 31-Slips Current Occupancy 60% - Significant Upside Asking only $2.1M OBO (POF's must accompany all offers) Presented by benny@crescorpllc.com CRES Corp International, LLC 1228 E 7th Ave Tampa, Fl 33605

2 CRES Corp International, LLC 102-Sp Sportsman's Cove MHP/RV Income, Expenses & Cash Flow Property Overview Potential Rental Income $ 323,709 Purchase/Asking Price $ 2,100,000 Property Type Mobile Home Parks Other Income - Improvements - No. of Units 102 Total Vacancy and Credits (16,185) Other - Price Per Unit $ 20,588 Operating Expenses $ (133,638) Closing Costs - Total Sq Ft 1,000 Annual Reserves: $ Finance Points - Price Per Sq Ft $ 2,100 Net Operating Income (NOI) $ 173,886 Income per Unit $ 3,174 MIP Payments $ Total Acquisition Cost $ 2,100,000 Expenses per Unit $ (1,310) Annual Reserves: $ Debt Service: $ Mortgage (s) $ Cash Flow Before Taxes $ 173,886 Income Taxes: Benefit 0% - Down Payment / Investment $ 2,100,000 Cash Flow After Taxes $ 173,886 Assumptions Loan Information % of Asking % of Cost Rental Growth Rate: 20.00% Down Payment: $ 2,100, % % Expense Growth Rate: 3.00% Initial Loan Balance: $ 0.00% 0.00% Appreciation Rate 0.00% Marginal Tax Rate: 0.00% Loan Amount Interest Rate Term Payment Capital Gain Tax Rate: 0.00% $ 8.00% 30 $0 $ 8.00% 30 $0 $ 8.00% 30 $0 Financial Measurements Year 1 Year 3 Year 7 Notes / Discussion Debt Coverage Ratio (DCR) Loan-to-Value Ratio (LVR) 0.0% 0.0% 0.0% Capitalization Rate Based on Cost 8.28% 13.06% 15.69% Capitalization Rate Based on Resale Price 7.89% 11.29% 12.53% Gross Rent Multiplier Net Present Value (NPV) - B/ Taxes Net Present Value (NPV) - A/Taxes 13.50% (62,347) 29, , % 2, , ,116 Cash on Cash Return - Before Taxes 8.28% 13.06% 15.69% Cash on Cash Return - After Taxes 8.28% 13.06% 15.69% Internal Rate of Return - Before Taxes 14.08% 14.63% Internal Rate of Return - After Taxes 14.08% 14.63% Modified Internal Rate of Return - Before Taxes Modified Internal Rate of Return - After Taxes 13.04% 11.55% 13.04% 11.55% Disclaimer: All information presented is believed to be accurate. The information, calculations and data presented in this report are believed to be accurate but are not guaranteed. The information contained in this report shall not be considered as a substitution for legal, accounting or other professional advice. Please seek proper legal and tax advice as appropriate before making investments.

3 Property Description 102-Sp Sportsman's Cove MHP/RV Sportsman s Cove 55+MHP/RV Resort Note:This property is one of 2 MHP's that are available for sale by the same owner. Contact for further information on these properties - or benny@crescorpllc.com. HIGHLIGHTS 102-Spaces (45-MH - 57-RV) Waterfront Canal to Orange Lake Dock and Slips City Water/WWTP Currently 60% Occupied 55+ Community This park consists of 102-spaces that includes both MHP and RV spaces. The Seller of the property does not have the time to continue running the park and is selling it at only$19k-$20kper space to a qualified purchaser! Property includes: Waterfront ( access to Orange Lake) 31-Boat Slips 11-acres 102-spaces (45-MH s and 57-RV) 9-Park Models 5-Mobile Homes 3-RV s City Water/WWTP Updated Electrical 60% Occupied Current GR: $307,524(Annualized 2018) Current NOI:$173,000- $221,202 (Annualized 2018 Asking Price: $2,100,000 OBO POF's must accompany all offers! CRES Corp International, LLC benny@crescorpllc.com 1228 E 7th Ave 0 Tampa, Fl 33605

4 Park Model Park Model RV Park Model Dock/Slips

5 Rental Activity Analysis Year 1 Year 2 Year 3 Year 4 Year 5 Potential Rental Income $ 323,709 $ 388,451 $ 446,718 $ 491,390 $ 506,132 Less: Vacancy & Credit Losses (16,185) (19,423) (22,336) (24,570) (25,307) Effective Gross Income $ 307,524 $ 369,028 $ 424,382 $ 466,821 $ 480,825 Less: Operating Expenses (133,638) (142,049) (150,040) (157,043) (161,754) Net Operating Income (NOI) $ 173,886 $ 226,979 $ 274,343 $ 309,778 $ 319,071 Less: Annual Debt Service CASH FLOW Before Taxes $ 173,886 $ 226,979 $ 274,343 $ 309,778 $ 319,071 Property Resale Analysis Projected Sales Price $ 2,205,000 $ 2,315,250 $ 2,431,013 $ 2,552,563 $ 2,578,089 Less: Selling Expenses (66,150) (69,458) (72,930) (76,577) (77,343) Adjusted Projected Sales Price $ 2,138,850 $ 2,245,793 $ 2,358,082 $ 2,475,986 $ 2,500,746 Less: Mortgage(s) Balance Payoff SALE PROCEEDS Before Taxes $ 2,138,850 $ 2,245,793 $ 2,358,082 $ 2,475,986 $ 2,500,746 Cash Position Cash Generated in Current Year $ 173,886 $ 226,979 $ 274,343 $ 309,778 $ 319,071 Cash Generated in Previous Years n/a 173, , , ,985 Cash Generated from Property Sale 2,138,850 2,245,793 2,358,082 2,475,986 2,500,746 Original Initial Investment (2,100,000) (2,100,000) (2,100,000) (2,100,000) (2,100,000) Total Potential CASH Generated $ 212,736 $ 546,657 $ 933,290 $ 1,360,972 $ 1,704,803 Financial Measurements Capitalization Rate Based on Cost 8.28% 10.81% 13.06% 14.75% 15.19% Capitalization Rate Based on Resale Price 7.89% 9.80% 11.29% 12.14% 12.38% Break-Even Ratio 41.28% 36.57% 33.59% 31.96% 31.96% Operating Expense Ratio 43.46% 38.49% 35.35% 33.64% 33.64% Cash-on-Cash Return with Equity 10.13% 15.61% 17.22% 18.14% 13.89% Cash-on-Cash Return - Before Taxes 8.28% 10.81% 13.06% 14.75% 15.19% 7/17/ :30 AM Cash Flow Analyzer

6 Rental Activity Analysis Potential Rental Income Less: Vacancy & Credit Losses Effective Gross Income Less: Operating Expenses Net Operating Income (NOI) Year 6 Year 7 Year 8 Year 9 Year 10 $ 521,316 $ 526,529 $ 531,794 $ 537,112 $ 542,483 (26,066) (26,326) (26,590) (26,856) (27,124) $ 495,250 $ 500,203 $ 505,205 $ 510,257 $ 515,359 (166,607) (170,771) (175,051) (179,452) (183,976) $ 328,644 $ 329,432 $ 330,153 $ 330,805 $ 331,383 Less: Annual Debt Service CASH FLOW Before Taxes $ 328,644 $ 329,432 $ 330,153 $ 330,805 $ 331,383 Property Resale Analysis Projected Sales Price Less: Selling Expenses Adjusted Projected Sales Price $ 2,603,870 $ 2,629,908 $ 2,656,207 $ 2,682,769 $ 2,709,597 (78,116) (78,897) (79,686) (80,483) (81,288) $ 2,525,754 $ 2,551,011 $ 2,576,521 $ 2,602,286 $ 2,628,309 Less: Mortgage(s) Balance Payoff SALE PROCEEDS Before Taxes $ 2,525,754 $ 2,551,011 $ 2,576,521 $ 2,602,286 $ 2,628,309 Cash Position Cash Generated in Current Year Cash Generated in Previous Years Cash Generated from Property Sale Original Initial Investment Total Potential CASH Generated $ 328,644 $ 329,432 $ 330,153 $ 330,805 $ 331,383 1,304,057 1,632,700 1,962,132 2,292,285 2,623,090 2,525,754 2,551,011 2,576,521 2,602,286 2,628,309 (2,100,000) (2,100,000) (2,100,000) (2,100,000) (2,100,000) $ 2,058,454 $ 2,413,143 $ 2,768,807 $ 3,125,377 $ 3,482,782 Financial Measurements Capitalization Rate Based on Cost Capitalization Rate Based on Resale Price Break-Even Ratio Operating Expense Ratio 15.65% 15.69% 15.72% 15.75% 15.78% 12.62% 12.53% 12.43% 12.33% 12.23% 31.96% 32.43% 32.92% 33.41% 33.91% 33.64% 34.14% 34.65% 35.17% 35.70% Cash-on-Cash Return with Equity Cash-on-Cash Return - Before Taxes 14.14% 14.04% 13.94% 13.84% 13.73% 15.65% 15.69% 15.72% 15.75% 15.78% 7/17/ :30 AM Cash Flow Analyzer

7 Expense Description Annual Amount Annual Increase Per Unit Per Sq Ft % of % of Expenses Revenue Advertising Auto & Travel Insurance Landscaping Maintenance Management Fee Professional Fees Repairs Supplies Property Taxes Trash Removal Electricity Telephone/WIFI Water Septic Pump/WWTP Credit Card Fees Miscellaneous 4, % % 1.4% 2, % % 1.0% 2, % % 0.7% 4, % % 1.6% 5, % % 1.6% 25, % 8.4% 1, % % 0.3% 5, % % 1.6% 2, % % 0.7% 19, % % 6.3% 14, % % 4.7% 16, % % 5.5% 2, % % 0.7% 10, % % 3.3% 6, % % 2.1% 1, % % 0.4% 10, % % 3.3% Total Annual Operating Expenses $ 133,638 $ 1,310 1, % 43.5%

8 Annual Property Operating Data 1 2 Year 1 Sq Ft Per Unit Year 2 Sq Ft Per Unit Year 3 Sq Ft Per Unit Year 4 Sq Ft Per Unit Year 5 Sq Ft Per Unit Potential Rental Income $ 323, $ 388, $ 446, $ 491, $ 506, Less: Vacancy & Credit Losses (16,185) (19,423) (22,336) (24,570) (25,307) Effective Gross Income $ 307, $ 369, $ 424, $ 466, $ 480, Operating Expenses Advertising 4, , , , , Auto & Travel 2, , , , , Insurance 2, , , , , Landscaping 4, , , , , Maintenance 5, , , , , Management Fee 25, , , , , Professional Fees 1, , , , , Repairs 5, , , , , Supplies 2, , , , , Property Taxes 19, , , , , Trash Removal 14, , , , , Electricity 16, , , , , Telephone/WIFI 2, , , , , Water 10, , , , , Septic Pump/WWTP 6, , , , , Credit Card Fees 1, , , , , Miscellaneous 10, , , , , Total Operating Expenses $ 133, $ 142, $ 150, $ 157, $ 161, Net Operating Income (NOI) $ 173, $ 226, $ 274, $ 309, $ 319, Cash Flow Before Taxes $ 173, $ 226, $ 274, $ 309, $ 319, Cash Flow Analyzer

9 Annual Property Operating Data 1 2 Year 6 Sq Ft Per Unit Year 7 Sq Ft Per Unit Year 8 Sq Ft Per Unit Year 9 Sq Ft Per Unit Year 10 Sq Ft Per Unit Potential Rental Income Less: Vacancy & Credit Losses Effective Gross Income $ 521, $ 526, $ 531, $ 537, $ 542, (26,066) (26,326) (26,590) (26,856) (27,124) $ 495, $ 500, $ 505, $ 510, $ 515, Operating Expenses Advertising Auto & Travel Insurance Landscaping Maintenance Management Fee Professional Fees Repairs Supplies Property Taxes Trash Removal Electricity Telephone/WIFI Water Septic Pump/WWTP Credit Card Fees Miscellaneous Total Operating Expenses 4, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , $ 166, $ 170, $ 175, $ 179, $ 183, Net Operating Income (NOI) $ 328, $ 329, $ 330, $ 330, $ 331, Cash Flow Before Taxes $ 328, $ 329, $ 330, $ 330, $ 331, Cash Flow Analyzer

10 Cash Flow After Taxes Cash Flow Before Taxes $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $ Time Net Operating MIP Payments Debt Cash Flow Incomes Cash Flow Period Income Service Before Tax Taxes After Tax Int Investment $ (2,100,000) $ (2,100,000) Year 1 173, , ,886 Year 2 226, , ,979 Year 3 274, , ,343 Year 4 309, , ,778 Year 5 319, , ,071 Year 6 328, , ,644 Year 7 329, , ,432 Year 8 330, , ,153 Year 9 330, , ,805 Year , , , Cash Flow Analyzer

11 After Taxes Before Taxes 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Time Initial Investment Cash Flow Cash on Cash Income Cash Flow Cash on Cash Period Adj for Refinance Before Taxes Before Taxes Taxes After Taxes After Taxes Year 1 $ 2,100,000 $ 173, % $ $ 173, % Year 2 2,100, , % - 226, % Year 3 2,100, , % - 274, % Year 4 2,100, , % - 309, % Year 5 2,100, , % - 319, % Year 6 2,100, , % - 328, % Year 7 2,100, , % - 329, % Year 8 2,100, , % - 330, % Year 9 2,100, , % - 330, % Year 10 2,100, , % - 331, % Cash Flow Analyzer

12 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Time Net Operating Cap Rate on Cost Resale Period Income (NOI) $ 2,100,000 Value Year 1 $ 173, % $ 2,205,000 Year 2 226, % 2,315,250 Year 3 274, % 2,431,013 Year 4 309, % 2,552,563 Year 5 319, % 2,578,089 Year 6 328, % 2,603,870 Year 7 329, % 2,629,908 Year 8 330, % 2,656,207 Year 9 330, % 2,682,769 Year , % 2,709, Cash Flow Analyzer

13 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $ Time Projected Adj Projected Refi Proceeds Mortgage(s) Sale Proceeds Income Taxes Sale Proceeds Property Year / Year Period Resale Value Increase (if any) Balance Payoff Before Taxes From Sale After Taxes Equity Equity Increase Year 1 $ 2,138, % $ $ $ 2,138,850 $ $ 2,138,850 $ 2,138,850 $ 38,850 Year 2 2,245, % - - 2,245,793-2,245,793 2,245, ,943 Year 3 2,358, % - - 2,358,082-2,358,082 2,358, ,290 Year 4 2,475, % - - 2,475,986-2,475,986 2,475, ,904 Year 5 2,500, % - - 2,500,746-2,500,746 2,500,746 24,760 Year 6 2,525, % - - 2,525,754-2,525,754 2,525,754 25,007 Year 7 2,551, % - - 2,551,011-2,551,011 2,551,011 25,258 Year 8 2,576, % - - 2,576,521-2,576,521 2,576,521 25,510 Year 9 2,602, % - - 2,602,286-2,602,286 2,602,286 25,765 Year 10 2,628, % - - 2,628,309-2,628,309 2,628,309 26, Cash Flow Analyzer

14 Return on Equity (ROE) 20.00% 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Required Return on Equity Time Period Rental Annual Change Annual Change Trapped Return on Hold Cash Flow in Equity in Net Worth Equity Equity (ROE) Sell 6.00% A B (A + B) Year 1 173,886 38, ,736 2,100, % Hold After Year Year 2 226, , ,921 2,138, % Hold 5 Year 3 274, , ,632 2,245, % Hold Year 4 309, , ,682 2,358, % Hold Year 5 319,071 24, ,831 2,475, % Hold Year 6 328,644 25, ,651 2,500, % Hold Year 7 329,432 25, ,689 2,525, % Hold Year 8 330,153 25, ,663 2,551, % Hold Year 9 330,805 25, ,570 2,576, % Hold Year ,383 26, ,406 2,602, % Hold Cash Flow Analyzer

15 BreakEven Occupancy BreakEven Occupancy with Cash on Cash Requirment 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Cash on Cash Time Period Potential Operating, Debt, Occupancy BreakEven Max Vacancy BreakEven Max Vacancy Requirement Rental Income Reserve Expenses Rate (Existing) Occupancy Rate BreakEven Rate Occupancy Rate BreakEven Rate 6.00% w/ Cash on Cash w/ Cash on Cash Year 1 323,709 (133,638) 95.00% 41.28% 58.72% 80.21% 19.79% Year 2 388,451 (142,049) 95.00% 36.57% 63.43% 69.00% 31.00% Year 3 446,718 (150,040) 95.00% 33.59% 66.41% 61.79% 38.21% Year 4 491,390 (157,043) 95.00% 31.96% 68.04% 57.60% 42.40% Year 5 506,132 (161,754) 95.00% 31.96% 68.04% 56.85% 43.15% Year 6 521,316 (166,607) 95.00% 31.96% 68.04% 56.13% 43.87% Year 7 526,529 (170,771) 95.00% 32.43% 67.57% 56.36% 43.64% Year 8 531,794 (175,051) 95.00% 32.92% 67.08% 56.61% 43.39% Year 9 537,112 (179,452) 95.00% 33.41% 66.59% 56.87% 43.13% Year ,483 (183,976) 95.00% 33.91% 66.09% 57.14% 42.86% Cash Flow Analyzer

16 CRES Corp International, LLC CRES Corp International, LLC 1228 E 7th Ave 0 Tampa, Fl benny@crescorpllc.com Commercial Real Estate Services - Financial Services Management & Leasing Services CRES Corp International, LLC (CCI) is a Commercial Real Estate firm offering brokerage, finance and management services. Our unique business model brings to our property owners and investors the means to get transactions completed where all parties are satisfied. CRES Corp International offers the Preferred Investor Program (PIP), where our Clients receive the following benefits: Property Owners No Exclusive Listing Agreement Property introduced only to Pre-Qualified Investors who: Have Sufficient Funds for RE Purchases Have Experience in Investing Make Reasonable Offers Investors Receive Information on Off-Market Property Receive information on Pre-Listed Property Minimal Competition Great Price on their RE Purchases CRES Corp International specializes in the following commercial property: Apartments Hotels MHP/RV Office Buildings/Complexes Medical Offices & Centers Vacant Land (Development) For further information contact or benny@crescorpllc.com

17 Terms & Definitions Net Operating Income (NOI) is a property s gross rental income reduced by all expenses except for loan payments, income taxes, mortgage insurance premium (MIP) payments and sometimes funded reserves. Debt Coverage Ratio (DCR) is a property s net operating income divided by the amount of debt payments. Lenders use this calculation to determine the remaining operating cash flow after the debt payments. Loan-to-Value Ratio (LTV) is the outstanding debt divided by the value of the property. This ratio is used to determine the amount of leverage and property equity. The debt balance can be the beginning or end-of-year balance. The property value used can be the contract price or the fair market value at the end of the year. Capitalization Rate (Cap Rate) is the net operating income (NOI) divided by either the property s contract purchase price or its fair market value. Cash-on-Cash Return is the net cash flow divided it by the initial investment (down payment). The calculation does not take into account the time value of money or change in the property s equity. Cash-on-Cash Return with Equity Build-up modifies the cash-on-cash return calculation by adding the property s net change in equity for that year to the numerator and adding all previously generated equity to the denominator of the cash-on-cash return ratio. The calculation calculates the return on the property equity, i.e. the return on the cash that is tied up in the property. Net Present Value (NPV) converts future dollars into present-day dollars by discounting (reducing) the future cash flow of a property by a given rate or percentage. The initial investment (down payment) is subtracted from the discounted dollars to derive the NPV. A positive NPV means that the property will generate a higher return than the given rate or percentage used to calculate the NPV amount. Gross Rent Multiplier (GRM) is a property s fair market value divided by its gross rental income. Mortgage Insurance Premium (MIP) Payments are insurance premiums charged by a lender to protect that lender against loss from a mortgager's default. The rates are charged on the balance of the loan and may be paid annually, monthly, or in some combination of the two (split premiums). Internal Rate-of-Return (IRR) is the most widely used method of valuing a property s annual cash flow stream. Since a property s cash flow is earned in the future, those future dollars must be converted to present-day dollars. The IRR calculation discounts (reduces) the property s future cash flow at a rate (i.e. percentage) so that the sum of all cash flow for a specified time period is equal to the initial investment. The rate or percentage needed to do that is the IRR. In other words, IRR is the discount rate at which Net Present Value (NPV) is zero. Modified Internal Rate-of-Return (MIRR) modifies the IRR to avoid the drawbacks of the traditional IRR. The IRR implicitly assumes that all cash flow is either reinvested or discounted at the computed IRR rate. In reality, a property s cash flow probably will not be reinvested at the computed IRR rate, but rather earn zero or a small amount of interest. The MIRR eliminates the reinvestment assumption by utilizing user stipulated reinvestment and borrowing rates. benny@crescorpllc.com CRES Corp International, LLC 1228 E 7th Ave 0 Tampa, Fl 33605