Waterfront 31-sp "Globe" MHP

Transcription

1 Waterfront 31-sp "Globe" MHP 30-sp Waterfront MHP Plus Commercial Building 50% Occupied - Good Upside Opportunity! Current NOI Approaching $40K Seller Consider the Best offer with the Quickest Close Presented by CRES Corp International, LLC 1228 E 7th Ave benny@crescorpllc.com Tampa, Fl 33605

2 Property Description Waterfront 31-sp "Globe" MHP This park offers a waterfront community with canal access to Lake Okeechobee. There is also a leased store in the front included with this property. HIGHLIGHTS 30-sp Waterfront MHP 30-sp/units 1-Store (Leased) 1.73-acres No Age Restrictions City Water/Septic 50% Occupied Current GR: $68,600 Current NOI: $38,600 Asking Price: $350,000 OBO Commercial Leased Store Inc 50% Occupied - Upside Potential! CRES Corp International, LLC benny@crescorpllc.com 1228 E 7th Ave 0 Tampa, Fl 33605

3 Rental Activity Analysis Year 1 Year 2 Year 3 Year 4 Year 5 Potential Rental Income $ 66,645 $ 103,800 $ 106,914 $ 110,121 $ 113,425 Less: Vacancy & Credit Losses Effective Gross Income $ 66,645 $ 103,800 $ 106,914 $ 110,121 $ 113,425 Less: Operating Expenses (28,354) (28,921) (29,500) (30,089) (30,691) Net Operating Income (NOI) $ 38,291 $ 74,879 $ 77,414 $ 80,032 $ 82,734 Less: Annual Debt Service CASH FLOW Before Taxes $ 38,291 $ 74,879 $ 77,414 $ 80,032 $ 82,734 Property Resale Analysis Projected Sales Price $ 623,991 $ 645,121 $ 666,933 $ 689,448 $ 712,689 Less: Selling Expenses (18,720) (19,354) (20,008) (20,683) (21,381) Adjusted Projected Sales Price $ 605,271 $ 625,767 $ 646,925 $ 668,765 $ 691,309 Less: Mortgage(s) Balance Payoff SALE PROCEEDS Before Taxes $ 605,271 $ 625,767 $ 646,925 $ 668,765 $ 691,309 Cash Position Cash Generated in Current Year $ 38,291 $ 74,879 $ 77,414 $ 80,032 $ 82,734 Cash Generated in Previous Years n/a 38, , , ,616 Cash Generated from Property Sale 605, , , , ,309 Original Initial Investment (350,000) (350,000) (350,000) (350,000) (350,000) Total Potential CASH Generated $ 293,562 $ 388,937 $ 487,509 $ 589,381 $ 694,659 Financial Measurements Capitalization Rate Based on Cost 10.94% 21.39% 22.12% 22.87% 23.64% Capitalization Rate Based on Resale Price 12.00% 12.00% 12.00% 12.00% 12.00% Gross Rent Monthly Multiplier (GRM) Gross Rent Yearly Multiplier (GRM) Value of Property Using this GRM , , , , ,975 Break-Even Ratio 42.54% 27.86% 27.59% 27.32% 27.06% Operating Expense Ratio 42.54% 27.86% 27.59% 27.32% 27.06% Cash-on-Cash Return with Equity 83.87% 15.76% 15.75% 15.75% 15.74% Cash-on-Cash Return - Before Taxes 10.94% 21.39% 22.12% 22.87% 23.64% 4/9/2018 8:55 PM Cash Flow Analyzer

4 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 $ 116,828 $ 120,333 $ 123,943 $ 127,661 $ 131, $ 116,828 $ 120,333 $ 123,943 $ 127,661 $ 131,491 (31,305) (31,931) (32,570) (33,221) (33,886) $ 85,523 $ 88,401 $ 91,373 $ 94,440 $ 97,605 Less: Annual Debt Service CASH FLOW Before Taxes $ 85,523 $ 88,401 $ 91,373 $ 94,440 $ 97,605 Property Resale Analysis Projected Sales Price Less: Selling Expenses Adjusted Projected Sales Price $ 736,679 $ 761,440 $ 786,997 $ 813,376 $ 840,601 (22,100) (22,843) (23,610) (24,401) (25,218) $ 714,578 $ 738,597 $ 763,387 $ 788,974 $ 815,383 Less: Mortgage(s) Balance Payoff SALE PROCEEDS Before Taxes $ 714,578 $ 738,597 $ 763,387 $ 788,974 $ 815,383 Cash Position Cash Generated in Current Year Cash Generated in Previous Years Cash Generated from Property Sale Original Initial Investment Total Potential CASH Generated $ 85,523 $ 88,401 $ 91,373 $ 94,440 $ 97, , , , , , , , , , ,383 (350,000) (350,000) (350,000) (350,000) (350,000) $ 803,451 $ 915,871 $ 1,032,034 $ 1,152,061 $ 1,276,075 Financial Measurements Capitalization Rate Based on Cost Capitalization Rate Based on Resale Price 24.44% 25.26% 26.11% 26.98% 27.89% 12.00% 12.00% 12.00% 12.00% 12.00% Gross Rent Monthly Multiplier (GRM) Gross Rent Yearly Multiplier (GRM) Value of Property Using this GRM 7.00 Break-Even Ratio Operating Expense Ratio , , , , , % 26.54% 26.28% 26.02% 25.77% 26.80% 26.54% 26.28% 26.02% 25.77% Cash-on-Cash Return with Equity Cash-on-Cash Return - Before Taxes 15.74% 15.73% 15.73% 15.72% 15.72% 24.44% 25.26% 26.11% 26.98% 27.89% 4/9/2018 8:55 PM Cash Flow Analyzer

5 Expense Description Annual Amount Annual Increase Per Unit Per Sq Ft % of % of Expenses Revenue Insurance Landscaping On-Site Management Repairs Property Taxes Trash Removal Electricity Miscellaneous 2, % % 3.8% 2, % % 4.3% 6, % % 9.0% 4, % % 7.2% 8, % % 12.3% 2, % % 3.6% % % 0.9% 1, % % 1.6% Total Annual Operating Expenses $ 28,354 $ 915 1, % 42.5%

6 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 $ 66, $ 103, $ 106, $ 110, $ 113, Effective Gross Income $ 66, $ 103, $ 106, $ 110, $ 113, Operating Expenses Insurance 2, , , , , Landscaping 2, , , , , On-Site Management 6, , , , , Repairs 4, , , , , Property Taxes 8, , , , , Trash Removal 2, , , , , Electricity Miscellaneous 1, , , , , Total Operating Expenses $ 28, $ 28, $ 29, $ 30, $ 30, Net Operating Income (NOI) $ 38, $ 74, $ 77, $ 80, $ 82, Cash Flow Before Taxes $ 38, $ 74, $ 77, $ 80, $ 82, Cash Flow Analyzer

7 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 Effective Gross Income $ 116, $ 120, $ 123, $ 127, $ 131, $ 116, $ 120, $ 123, $ 127, $ 131, Operating Expenses Insurance Landscaping On-Site Management Repairs Property Taxes Trash Removal Electricity Miscellaneous Total Operating Expenses 2, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , $ 31, $ 31, $ 32, $ 33, $ 33, Net Operating Income (NOI) $ 85, $ 88, $ 91, $ 94, $ 97, Cash Flow Before Taxes $ 85, $ 88, $ 91, $ 94, $ 97, Cash Flow Analyzer

8 Cash Flow After Taxes Cash Flow Before Taxes $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $ Time Net Operating MIP Payments Debt Cash Flow Incomes Cash Flow Period Income Service Before Tax Taxes After Tax Int Investment $ (350,000) $ (350,000) Year 1 38, ,291-38,291 Year 2 74, ,879-74,879 Year 3 77, ,414-77,414 Year 4 80, ,032-80,032 Year 5 82, ,734-82,734 Year 6 85, ,523-85,523 Year 7 88, ,401-88,401 Year 8 91, ,373-91,373 Year 9 94, ,440-94,440 Year 10 97, ,605-97, Cash Flow Analyzer

9 After Taxes Before Taxes 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 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 $ 350,000 $ 38, % $ $ 38, % Year 2 350,000 74, % - 74, % Year 3 350,000 77, % - 77, % Year 4 350,000 80, % - 80, % Year 5 350,000 82, % - 82, % Year 6 350,000 85, % - 85, % Year 7 350,000 88, % - 88, % Year 8 350,000 91, % - 91, % Year 9 350,000 94, % - 94, % Year ,000 97, % - 97, % Cash Flow Analyzer

10 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Time Net Operating Cap Rate on Cost Resale Period Income (NOI) $ 350,000 Value Year 1 $ 38, % $ 623,991 Year 2 74, % 645,121 Year 3 77, % 666,933 Year 4 80, % 689,448 Year 5 82, % 712,689 Year 6 85, % 736,679 Year 7 88, % 761,440 Year 8 91, % 786,997 Year 9 94, % 813,376 Year 10 97, % 840, Cash Flow Analyzer

11 CRES Corp International, LLC CRES Corp International, LLC 1228 E 7th Ave 0 Tampa, Fl benny@crescorpllc.com Commercial Real Estate Services - Development - Management - Financial Services CRES Corp International, LLC (CCI) is a Commercial Real Estate company offering development, finance and brokerage services. Our Development Teamspecializes in health care construction and offers the latest and most cost effective construction technology. Our Development specializes in health care, medical, Multi-Family & Hospitality operations and development: Construction & Development Project Planning Property Acquisitions Investment Structuring Property Conversion and Repositioning Joint Venture Structuring Medical/Health Care Property Management Financial Arrangement & Consulting To assist our Clients with their development projects and acquisitions we offer affordable financing alternatives to conventional financing methods: Variable Rate Demand Bonds Industrial Revenue & Municipal Bonds Build-to Lease Program Foreign Investment Funds Joint Venture/Equity Partnership Arrangements Our goal is to bring our Clients the lowest interest rates and best leverage on their purchases and projects. We will consider the following properties and projects: Health Care/Medical Offices Multi-Family Schools/Universities Hospitality For further information contact or benny@crescorpllc.com

12 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