Pre-Construction Sale

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Kristian Lynch
5 years ago
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CENTENNIAL TRAIL TOWNHOWNES COMING SPRING 2019 HOME PLUS INVESTMENT Proposed Construction 6 Triplexes 2 Bedrooms - 2.

You could do just that with the right property, the right mortgage, and the right renters. Why not buy a triplex and rent out the other two units?

1 CENTENNIAL TRAIL TOWNHOWNES COMING SPRING 2019 HOME PLUS INVESTMENT Proposed Construction 6 Triplexes 2 Bedrooms Bathrooms 1,275 Square Feet Each Unit Pre-Construction Sale Ever wondered if you can buy a home and get someone else to pay your mortgage? You could do just that with the right property, the right mortgage, and the right renters. Why not buy a triplex and rent out the other two units? Ascent Commercial Group and Off The Coast have joined forces to develop and construct 6 new triplexes in Woodland Park. Centennial Trail Townhomes is a one of a kind development of Modern Cottage Style Townhomes in a triplex configuration. At this presale stage, Buyers can select colors and secure premium locations to accommodate their personal taste. Building Sales Price Pre-Construction: $825,000 per triplex Market Pricing: $900,000 per triplex *Prices Subject to Change Without Notice. SALES INFORMATION: Chris Barnard offthecoastmanagement@gmail.com - Disclaimer: All investments are made at Investors own risk. Ascent Commercial Group LLC, Off The Coast LLC and it s affiliates are not responsible for any risks or loss incurred by Investor. All prices, fees, expenses, projections and valuations are subject to changes without notice and are based on market conditions as of 5/30/2018. All photos are representative Photo of proposed project.

2 CENTENNIAL TRAIL TOWNHOMES Home Plus Investment Lower Your Annual Housing Costs New Energy Efficient, Modular Construction Upgraded Finishes Each Bedroom Has Its Own Bathroom All Appliances Plus Washer/Dryer Included Convenient In Town Location RESERVE YOURS TODAY! Save $75,000 With Pre-Construction Pricing Select A Premium Location Pick Your Colors And Finishes Only 3 Triplexes Available At Pre-Construction Pricing

3 LOCATION

off-site, the amount of time required for on-site construction is dramatically reduced.

4 SITE PLAN Centennial Trail Townhomes will be built using modular construction by Champion Commercial Structures. Modular construction uses the same quality materials as sitebuilt structures, but since up to 80% of the structure is built and inspected off-site, the amount of time required for on-site construction is dramatically reduced. Less construction on-site reduces the chance of weather delays, material damage and mold contamination. By reducing the chance for weather delays, we can confidently target a late Spring / early Summer 2019 delivery date.

ELEVATIONS Through its tightly controlled manufacturing process, Champion is able to construct tighter structures with less air infiltration.

5 ELEVATIONS Through its tightly controlled manufacturing process, Champion is able to construct tighter structures with less air infiltration. As a result, Champion-built structures have proven to be more energy efficient than comparable structures built using traditional site-build construction methods. Modular construction earns points from most major Green accrediting agencies for use of recycled materials, tight building envelopes, waste reduction, and innovative building practices.

6 FLOOR PLANS Ground Floor 600 sq. ft. Living Room Dining Room Kitchen (All Appliances Incl) Laundry ( Washer/Dryer Incl) ½ Bathroom Second Floor 675 sq. ft. Master Bedroom Master Bathroom Second Bedroom Second Bathroom

7 The Owner Occupant s Benefits Centennial Trail Townhomes will offer A Home Plus Investment by offering brand new triplexes with comfortable 2 bedroom floorplans at a competitive per unit price. An owner occupant buyer can live in one and rent the other two. His tenants help him pay the mortgage, provides the owner tax benefits, offers the potential for rent and value appreciation, all while lowering the owner s effective rent. Rent Comparables Address Rent SqFt Rent/SF Bd Ba 900 Ponderosa Way, Apt A $ 1, ,132 $ Ponderosa Way, Apt B $ 1, ,132 $ Mountain View Place, Apt A $ $ Manor Ct, Apt C $ 1, ,440 $ Trail Ridge Apt $ 1, ,107 $ Trail Ridge Apt $ 1, ,253 $ Average $ 1, ,123 $ 1.22 Average without high and low $ 1, $ E Highway 24 $ 1, ,191 $ Golden Ct $ 2, ,625 $ Daisy St $ 1, $ Stacey Ln $ 1, ,304 $ Average $ 1, ,514 $ 1.14 Average without high and low $ 1, $ 1.24 Centennial Trail Townhomes $ 1, ,275 $ Based on current market data, incoming students can expect to pay $1,595 per month for a 2 bedroom, 2.5 bath rental unit in Woodland Park of similar size as a Centennial Trail Townhome. Over a typical two year stay, that totals over $38,000 spent on rent. If that same student was able to buy a house of similar size for under $300,000, they would end up with a positive cash benefit of over $11,000 after considering the tax benefits, appreciation and principal pay down on the mortgage. In addition, the effective rent is reduced by almost $600 per month. That same student could realize the same effective reduction in effective rent yet over $89,000 gain by purchasing a Centennial Trail Townhome triplex. (These results are based on the assumptions seen in the chart below. Each buyer s circumstances will be different, and you are advised to contact your financial adviser, accountant or tax advisor for your specific circumstances.)

(19,140) $ (38,854) $ (80,040) $ (167,283) Homeowner Cash Flows $ (55,000) $ 5,412 $ 11,686 $ 18,179 $ 24,866 Pre Construction Buyer Cash Flows $ (165,000) $ 43,000 $ 89,179 $ 136,617 $ 185,254

8 Owner Occupant Assumptions Mortgage Assumption Marginal Tax Rate 22% Interest Rate 5.00% Rate of Appreciation 5% Down Payment 20% Rent Escalation 3% Amortization 25 Annual Expense Escalation 2% Cummulative Financial Benefits Holding Period Down Pmt Renter Cash Flows $ - $ (19,140) $ (38,854) $ (80,040) $ (167,283) Homeowner Cash Flows $ (55,000) $ 5,412 $ 11,686 $ 18,179 $ 24,866 Pre Construction Buyer Cash Flows $ (165,000) $ 43,000 $ 89,179 $ 136,617 $ 185,254 Market BuyerCash Flows $ (180,000) $ 44,884 $ 93,185 $ 142,806 $ 193,684 Effective Rents Year Down Pmt Market Rent $ - $ 1,595 $ 1,643 $ 1,692 $ 1,743 Homeowner Effective Rent $ (55,000) $ 1,073 $ 1,077 $ 1,081 $ 1,086 Pre Construction Buyer Effective Rent $ (165,000) $ 988 $ 951 $ 914 $ 876 Market Buyer Effective Rent $ (180,000) $ 1,247 $ 1,211 $ 1,174 $ 1,138 Home Buyer Beginning Principal $ 220,000 $ 215,464 $ 210,703 $ 205,706 Interest Expense $ 10,897 $ 10,672 $ 10,436 $ 10,189 Debt Service (P&I) $ (15,433) $ (15,433) $ (15,433) $ (15,433) Amortization $ 4,536 $ 4,761 $ 4,997 $ 5,244 Ending Principal before Pre-Payment $ 215,464 $ 210,703 $ 205,706 $ 200,462 Annual Debt Service $ (15,433) $ (15,433) $ (15,433) $ (15,433) Add Back: Tax Benefits of Owner's Unit Interests $ 2,397 $ 2,348 $ 2,296 $ 2,242 Add Back: Tax Benefits of Owner's Unit RE Taxes $ 161 $ 161 $ 161 $ 161 CASH FLOW AFTER TAXES $ (12,875) $ (12,924) $ (12,976) $ (13,030) Effective Monthly Rent $ (1,073) $ (1,077) $ (1,081) $ (1,086) FINANCIAL BENEFITS OF OWNERSHIP Add Back: Principal Payments $ 4,536 $ 4,761 $ 4,997 $ 5,244 Annualized 5% $ 13,750 $ 14,438 $ 14,472 $ 14,474 Equity/Investment $ (55,000) $ 5,412 $ 6,274 $ 6,493 $ 6,688 IRR 9.36% 9.84% 11.41% 11.81% 12.16%

Pre-Construction Owner-Occupant 1 2 3 4 Beginning Principal $ 660,000 $ 646,391 $ 632,109 $ 617,119 Interest Expense $ 32,691 $ 32,017 $ 31,309 $ 30,567 Debt Service (P&I) $ (46,300) $ (46,300) $

9 Pre-Construction Owner-Occupant Beginning Principal $ 660,000 $ 646,391 $ 632,109 $ 617,119 Interest Expense $ 32,691 $ 32,017 $ 31,309 $ 30,567 Debt Service (P&I) $ (46,300) $ (46,300) $ (46,300) $ (46,300) Amortization $ 13,609 $ 14,283 $ 14,990 $ 15,733 Ending Principal before Pre-Payment $ 646,391 $ 632,109 $ 617,119 $ 601,386 Unit Rentals Gross Revenue $ 1,595 $ 38,280 $ 39,428 $ 40,611 $ 41,830 Vacancy/Credit Loss 5% $ (1,914) $ (1,971) $ (2,031) $ (2,091) Unit Rentals Net Revenue $ 36,366 $ 37,457 $ 38,581 $ 39,738 Property Taxes $ 2,200 $ (1,467) $ (1,540) $ (1,617) $ (1,698) Property Insurance $ 1,500 $ (1,000) $ (1,050) $ (1,103) $ (1,158) Operating Expenses/Holding Costs $ 5,100 $ (3,400) $ (3,570) $ (3,749) $ (3,936) Operating Reserves $ 1,200 $ (800) $ (840) $ (882) $ (926) NET OPERATING INCOME RENTED UNITS $ 29,699 $ 30,457 $ 31,231 $ 32,021 Less: Annual Debt Service $ (30,866) $ (30,866) $ (30,866) $ (30,866) CASH FLOW BEFORE TAXES RENTED UNITS $ (1,167) $ (409) $ 364 $ 1,154 Add Back: Principal Payments $ 9,072 $ 9,522 $ 9,993 $ 10,488 Less Depreciation $ (18,061) $ (18,061) $ (18,061) $ (18,061) TAXABLE NET INCOME (LOSS) RENTED UNITS $ (10,155) $ (8,948) $ (7,703) $ (6,418) CASH FLOW BEFORE TAXES RENTED UNITS $ (1,167) $ (409) $ 364 $ 1,154 Less Tax (Liability) 22% $ 2,234 $ 1,969 $ 1,695 $ 1,412 CASH FLOW AFTER TAXES RENTED UNITS $ 1,067 $ 1,559 $ 2,059 $ 2,566 Less: Annual Debt Service of Owner's Unit $ (15,433) $ (15,433) $ (15,433) $ (15,433) Add Back: Tax Benefits of Owner's Unit Interests $ 2,397 $ 2,348 $ 2,296 $ 2,242 Add Back: Tax Benefits of Owner's Unit RE Taxes $ 110 $ 110 $ 110 $ 110 CASH FLOW AFTER TAXES - ALL UNITS $ (11,859) $ (11,416) $ (10,968) $ (10,515) Effective Monthly Rent $ (988) $ (951) $ (914) $ (876) FINANCIAL BENEFITS OF OWNERSHIP Add Back: Principal Payments $ 13,609 $ 14,283 $ 14,990 $ 15,733 Annualized 5% $ 41,250 $ 43,313 $ 43,416 $ 43,421 Equity/Investment $ (165,000) $ 43,000 $ 46,179 $ 47,438 $ 48,638 IRR 24.34% 26.06% 27.99% 28.75% 29.48%

Market Owner-Occupant 1 2 3 4 Beginning Principal $ 720,000 $ 705,154 $ 689,573 $ 673,220 Interest Expense $ 35,663 $ 34,928 $ 34,156 $ 33,346 Debt Service (P&I) $ (50,509) $ (50,509) $ (50,509) $

10 Market Owner-Occupant Beginning Principal $ 720,000 $ 705,154 $ 689,573 $ 673,220 Interest Expense $ 35,663 $ 34,928 $ 34,156 $ 33,346 Debt Service (P&I) $ (50,509) $ (50,509) $ (50,509) $ (50,509) Amortization $ 14,846 $ 15,581 $ 16,353 $ 17,163 Ending Principal before Pre-Payment $ 705,154 $ 689,573 $ 673,220 $ 656,058 Unit Rentals Gross Revenue $ 1,595 $ 38,280 $ 39,428 $ 40,611 $ 41,830 Vacancy/Credit Loss 5% $ (1,914) $ (1,971) $ (2,031) $ (2,091) Unit Rentals Net Revenue $ 36,366 $ 37,457 $ 38,581 $ 39,738 Property Taxes $ 2,200 $ (1,467) $ (1,540) $ (1,617) $ (1,698) Property Insurance $ 1,500 $ (1,000) $ (1,050) $ (1,103) $ (1,158) Operating Expenses/Holding Costs $ 5,000 $ (3,333) $ (3,500) $ (3,675) $ (3,859) Operating Reserves $ 1,200 $ (800) $ (840) $ (882) $ (926) NET OPERATING INCOME RENTED UNITS $ 29,766 $ 30,527 $ 31,304 $ 32,098 Less: Annual Debt Service $ (33,672) $ (33,672) $ (33,672) $ (33,672) CASH FLOW BEFORE TAXES RENTED UNITS $ (3,906) $ (3,145) $ (2,368) $ (1,575) Add Back: Principal Payments $ 9,897 $ 10,387 $ 10,902 $ 11,442 Less Depreciation $ (19,879) $ (19,879) $ (19,879) $ (19,879) TAXABLE NET INCOME (LOSS) RENTED UNITS $ (13,888) $ (12,637) $ (11,345) $ (10,012) CASH FLOW BEFORE TAXES RENTED UNITS $ (3,906) $ (3,145) $ (2,368) $ (1,575) Less Tax (Liability) 22% $ 3,055 $ 2,780 $ 2,496 $ 2,203 CASH FLOW AFTER TAXES RENTED UNITS $ (851) $ (365) $ 128 $ 628 Less: Annual Debt Service of Owner's Unit $ (16,836) $ (16,836) $ (16,836) $ (16,836) Add Back: Tax Benefits of Owner's Unit Interests $ 2,615 $ 2,561 $ 2,505 $ 2,445 Add Back: Tax Benefits of Owner's Unit RE Taxes $ 110 $ 110 $ 110 $ 110 CASH FLOW AFTER TAXES - ALL UNITS $ (14,962) $ (14,530) $ (14,094) $ (13,653) Effective Monthly Rent $ (1,247) $ (1,211) $ (1,174) $ (1,138) FINANCIAL BENEFITS OF OWNERSHIP Add Back: Principal Payments $ 14,846 $ 15,581 $ 16,353 $ 17,163 Annualized 5% $ 45,000 $ 47,250 $ 47,363 $ 47,368 Equity/Investment $ (180,000) $ 44,884 $ 48,301 $ 49,622 $ 50,878 IRR 23.26% 24.94% 26.83% 27.57% 28.27% RESERVE YOURS TODAY!

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