66
6/2/2016 Spring 2016 By, Keith Arky Hannah Nguyen Tyler Norgord Cynthia Jaramillo

493 Presentation

Embed Size (px)

Citation preview

Page 1: 493 Presentation

6/2/2016 Spring 2016

By,

Keith Arky

Hannah Nguyen

Tyler Norgord

Cynthia Jaramillo

Page 2: 493 Presentation

We Are:

Committed to offering a variety of programs and services in order to successfully cater to each and every client

Growing exceptionally fast as one of the newest real estate investment firms in the Greater Los Angeles Area

A recent Fortune 500 company entrant

Focused on producing win-win outcomes for all parties involved in order for continued future success

2424 Beverly Blvd. Suite 111 Monterey Park, CA 91755

Office: (626) 371-4890 Fax: (626) 371-4896

9am-6pm Monday-Sunday Open 365 days EmpireInvestments.com

Page 3: 493 Presentation

Bio Sketch

QUALIFICATIONS:

• Real Estate Broker License

• Bachelor’s Degree in Architecture • Southern California Institute of Architecture 2007

• Bachelor’s Degree in Business Administration & Real Estate • California State University, Los Angeles 2011

• Over 5 years of hands-on experience

• Able to communicate using both the languages of architecture and business

• Well-rounded approach sets him apart from other business/design-minded individuals

As of today, Keith serves as a major asset in our company within the field of real estate development, asset management and architectural design consultation.

K E I T H A R K Y

PARTNER

Phone: (805) 794-5555 Email: [email protected]

Page 4: 493 Presentation

Bio Sketch

QUALIFICATIONS:

• Bachelor’s Degree in Business Administration & Finance

• Minor in Real Estate • California State University, Los Angeles 2011

• Over 4 years experience as a Financial Advisor and Real Estate Investment.

• CFO of Associated Students Incorporated

Hannah serves as a major asset in our company within the field of financial advisory and investment consultation.

H A N N A H N G U Y E N

PARTNER

Phone: (626) 588-5555 Email: [email protected]

Page 5: 493 Presentation

Bio Sketch

QUALIFICATIONS: • Bachelors of Science in Finance & Real Estate

• California State University, Los Angeles 2011

• Real Estate License

• Over 5 years of hands-on experience

• Able to communicate using both the languages of finance and real estate

• Currently working towards completion of the CFA in order to improve all aspects of our company

Tyler utilizes his leading expertise and ability to improve the functionality of the company and to expand on our ability to communicate with our clients

T Y L E R N O R G O R D

PARTNER

Phone: (626) 716-5555 Email: [email protected]

Page 6: 493 Presentation

Bio Sketch

QUALIFICATIONS:

• Bachelor’s Degree in Business Administration & Finance

• Minor in Real Estate • California State University, Los Angeles 2010

• Over 5 years experience with the company

• Currently resides in La Habra Heights, CA with her dog, Caramel

As of today, Cynthia serves as a major asset in our company within the field of finance and real estate consultation.

C Y N T H I A J A R A M I L L O

PARTNER

Phone: (626) 588-5555 Email: [email protected]

Page 7: 493 Presentation

Why ?

We specialize in single-family residential homes

We have many offices throughout the Greater Los Angeles area • Allows for geographic location specialization

We provide excellent quality service

We find the most qualified properties

Most importantly… We work for YOU!

Page 8: 493 Presentation

Los Angeles County Overview

• THE MOST POPULOUS COUNTY IN THE UNITED STATES

• 25% of California Population

• Popular Destinations:

• Museums:

• Museum of Contemporary Art

• The J. Paul Getty Center

• Entertainment:

• Dodger Stadium

• STAPLES Center

• Music Venues:

• The Wiltern

• Hollywood Bowl

Key Statistics

Source: http://www.sports-logos-

screensavers.com/LosAngelesDodgers.html

Source: https://en.wikipedia.org/wiki/Los_Angeles_County,_California

Page 9: 493 Presentation

Source: https://en.wikipedia.org/wiki/San_Bernardino_County,_California

• The Largest county in the contiguous U.S

• 20,000+ square miles

• 24 cities

• Population: 2,076,275

Key Statistics

Source: http://www.tngrealestate.com/san-bernardino-county/

Page 10: 493 Presentation

Orange County Overview

• 3rd most densely populated county in California, and 6th in the State

• County’s 4 major Cities :

• Anaheim

• Santa Ana

• Irvine

• Huntington Beach

• Popular Destination:

• Disneyland

• Knott's Berry Farm

• Angels Stadium

• Multiple beaches along its 40 mile coastline

Key Statistics

Source:

https://en.wikipedia.org/wiki/Orange_County,_California#/

media/File:Seal_of_Orange_County,_California.svg

Source: https://en.wikipedia.org/wiki/Orange_County,_California`` Source: https://en.wikipedia.org/wiki/Orange_County,_California``

Page 11: 493 Presentation

La Habra Heights City Overview

➢In Los Angeles County and founded in 1978 ➢Located just 25 miles southeast of downtown Los Angeles. ➢Far distance from highway Systems. ➢Connected with Highway 5, 605, 60 and 57 by other city neighborhoods.

Regional Map Local Map

Source: https://en.wikipedia.org/wiki/California_State_Route_57 https://en.wikipedia.org/wiki/California_State_Route_60 https://en.wikipedia.org/wiki/Interstate_605 https://en.wikipedia.org/wiki/Interstate_5 https://www.google.com/maps/place/La+Habra+Heights,+CA/@33.9343966,-117.9370111,11.21z/data=!4m5!3m4!1s0x80c2d511136a13c7:0x70351d4f4153f00!8m2!3d33.9608461!4d-117.9506186!6m1!1e1

↓ ↓

Page 12: 493 Presentation

Montclair City Overview

Source: http://www.zillow.com/san-bernardino-ca/home-values/

Southwestern San Bernardino

Page 13: 493 Presentation

Yorba Linda City Overview

➢ Yorba Linda = “Beautiful Yorba”

➢ Early residents (1910-1920) came to Yorba Linda with the intent of operating small farms

➢ Constructed numerous ranch houses, and planted citrus groves: hard-working citizens

➢ Pacific Electric Railroad line between Yorba Linda and Los Angeles was an important transportation link

➢ Yorba Linda growers could now easily get their produce to a major produce market

➢ 1960's that Yorba Linda began experiencing the tremendous population growth which the rest of Orange County had been experiencing for the previous two decades

Source: http://ci.yorba-linda.ca.us/index.php/information/city-facts?id=127:history-of-yorba-linda&catid=1

Source:

https://en.wikipedia.org/wiki/Yorba_

Linda,_California

Page 14: 493 Presentation

• Comparing the county population trend with the California’s can show population growth over the period.

• San Bernardino is the county that represents the most significant increase of population from 1990 to 2015

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

County Population Trend (%) 1990 - 2015

Los Angeles

San Bernardino

Orange

California

County Population Trend http://www.city-data.com

Page 15: 493 Presentation

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

City Population Trend (%) 2000 - 2015

La Habra Heights

Montclair

Yorba Linda

California

City Population Trend http://www.citypopulation.de/php/usa-census-admin.php?adm1id=CA

• Yorba Linda has the most increased population and is the most in line with the increase of California

• This is reflective of the economic growth of Orange County

Page 16: 493 Presentation

County Household Size Trend http://www.citypopulation.de/php/usa-census-admin.php?adm1id=CA

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

2000 2009 2010 2012 2014

County Household Size (%) 2000 - 2014

Los Angeles

San Bernardino

Orange

California

• These trends show that the Household Size of these three counties have been increasing since 2000

2.80

2.90

3.00

3.10

3.20

3.30

3.40

2000 2009 2010 2012 2014

County Household Size 2000 - 2014

Los Angeles

San Bernardino

Orange

California

Page 17: 493 Presentation

City Household Size Trend http://www.citypopulation.de/php/usa-census-admin.php?adm1id=CA

2.70

2.90

3.10

3.30

3.50

3.70

3.90

4.10

2000 2009 2010 2012 2014

City Household Size 2000 - 2014

La Habra Heights

Montclair

Yorba Linda

California

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

2000 2009 2010 2012 2014

City Household Size Trend (%) 2000 - 2014

La Habra Heights

Montclair

Yorba Linda

California

• The City Household Size trend shows a different story from the county trend

• Montclair and La Habra Heights are decreasing

• California and Yorba Linda have an upward trend

Page 18: 493 Presentation

County Median Household Income Trend

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

2000 2009 2010 2012 2014

County Median Household Income Trend (%) 2000 - 2014

Los Angeles

San Bernardino

Orange

California

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

2000 2009 2010 2012 2014

County Median Household Income ($) 2000 - 2014

Los Angeles

San Bernardino

Orange

California

• Over all, the County Median Household Income movements keep constant during the 4 year period.

• Orange County Median Household Income is highest (~$78,000/year) compared with the others counties.

Page 19: 493 Presentation

City Median Household Income Trend Trulia.com Usa.com

Excel Worksheet

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

2000 2009 2010 2012 2014 2015

City Median Household Income ($) 2000 - 2015

La Habra Heights

Montclair

Yorba Linda

California

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

2000 2009 2010 2012 2014

City Median Household Income Trend (%) 2000 - 2015

La Habra Heights

Montclair

Yorba Linda

California

• City Median Household Income ($) slightly decreased over the past 15 years.

• However, the trend shows that Yorba Linda and California are the only ones holding constant.

Page 20: 493 Presentation

19 Year City Median Housing Price Trend Zillow.com

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

Housing Prices ($) 1996 - 2015

La Habra Heights

Montclair

Yorba Linda

California

-50.00%

0.00%

50.00%

100.00%

150.00%

200.00%

250.00%

300.00%

Housing Price Trend (%) 1996 - 2015

La Habra Heights

Montclair

Yorba Linda

California

• Housing Price is volatile, but has been increasing since 2012.

• Yorba Linda Housing Price is the 2nd highest after La Habra Heights

• Yorba Linda’s Housing Price Trend is slightly increasing while La Habra Heights has started to decrease.

Page 21: 493 Presentation

5 Year City Median Housing Price Trend Zillow.com

0.00%

50.00%

100.00%

150.00%

200.00%

250.00%

Housing Price Trend (%) 2010 - 2015

La Habra Heights

Montclair

Yorba Linda

California

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

Housing Prices ($) 2010 - 2015

La Habra Heights

Montclair

Yorba Linda

California

• Median Price of Yorba Linda about $600,000 to $800,000 but slightly increasing compares with housing price of La Habra Heights is lower but in the future its housing price will drop.

Page 22: 493 Presentation

Unemployment Rate http://www.city-data.com/county/Los_Angeles_County-CA.html http://www.city-data.com/city/San-Bernardino-California.html

http://www.city-data.com/county/Orange_County-CA.html http://data.bls.gov/pdq/SurveyOutputServlet

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

COUNTY Unemployment (%) 2000 - 2015

Los Angeles

San Bernardino

Orange

California

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

CITY Unemployment (%) 2000 - 2015

La Habra Heights

Montclair

Yorba Linda

California

• Los Angeles and San Bernardino county have unemployment rates at about 6% (= California)

• However, Orange County has the lowest unemployment rate at about 4%

• Yorba Linda also has an unemployment rate of under 4%

Page 23: 493 Presentation

La Habra Heights Crime http://www.city-data.com/city/La-Habra-Heights-California.html

0

20

40

60

80

100

120

140

La Habra Heights Total Crimes (# of incidents) 2002 - 2014

Violent

Property

-100.0%

-50.0%

0.0%

50.0%

100.0%

150.0%

200.0%

La Habra Heights Crime Trend (%) 2002 - 2014

Violent

Property

• Property violence is the major crime of the city.

• However, based on the data, the trend of violent crime will increase and property crime will drop off.

Page 24: 493 Presentation

Montclair Crime http://www.city-data.com/city/Montclair-California.html

0

500

1000

1500

2000

2500

3000

Montclair Total Crimes (# of incidents) 2002 - 2014

Violent

Property

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

Montclair Crime Trend (%) 2002 - 2014

Violent

Property

• There were about 1500 property crimes and 210 violent crime in 2014.

• The city violent crime trend is increasing and the property crime trend is declining.

Page 25: 493 Presentation

Yorba Linda Crime http://www.city-data.com/city/YorbaLinda-California.html

0

200

400

600

800

1000

1200

Yorba Linda Total Crimes (# of incidents) 2002 - 2014

Violent

Property

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Yorba Linda Crime Trend (%) 2002 - 2014

Violent

Property

• In 2014, there were 749 total crimes in Yorba Linda

• Property crime was about 28% lower than in 2002 and violent crime was only 5% higher than in 2002

Page 26: 493 Presentation

City Crime Comparison

0

500

1000

1500

2000

2500

3000

Total Crime (# of incidents) 2002 - 2014

La Habra HeightsViolent

La Habra HeightsProperty

Montclair Violent

Montclair Property

Yorba Linda Violent

Yorba Linda Property-100.0%

-50.0%

0.0%

50.0%

100.0%

150.0%

200.0%

Crime Trend (%) 2002 - 2014

La Habra Heights Violent

La Habra HeightsProperty

Montclair Violent

Montclair Property

Yorba Linda Violent

Yorba Linda Property

• Montclair has the highest property crime (about 1500 crimes in 2014).

• La Habra Heights property crime is trending upward while other cities are slightly decreasing

Page 27: 493 Presentation

La Habra Heights Demographics

Male

Female

Total

0.00

50000.00

100000.00

La Habra Heights Population By Race and Gender 2015

Male

Female

Total

https://suburbanstats.org/population/california/how-many-people-live-in-la-habra

Page 28: 493 Presentation

Male

Total

Female0.00

20000.00

40000.00

60000.00

80000.00

Montclair Population By Race and Gender 2015

Male

Female

Total

Male

Female

Total

https://suburbanstats.org/population/california/how-many-people-live-in-montclair

Montclair Demographics

Page 29: 493 Presentation

Male

Female

Total0.00

20000.00

40000.00

60000.00

80000.00

TotalPopulation

whiteHispanic

Other RaceAsian

AmericanIndian Three or

more Races AfricanAmerican

Yorba Linda Population by Gender and Race 2015

Male Female Total

https://suburbanstats.org/population/california/how-many-people-live-in-yorba-linda

Yorba Linda Demographics

Page 30: 493 Presentation

Yorba Linda Population Demographics

Age

Gender Marital Status

➢ Est. Population: ➢67,973

➢ Population Growth (since 2000): ➢15.7%

GROWING!!

Source: CMA Report

Page 31: 493 Presentation

Yorba Linda Racial Make-up

➢ White: 75.2% ➢ Black: 1.04% ➢ Hispanic: 16.96% ➢ Asian:

17% ➢ Native: 0.36% ➢ One Race, Other: 1.53% ➢ Two or More Races: 4.83% ➢ The city is mostly White people with

an equal mix of Hispanic and Asian people in 2nd

Source: http://www.usa.com/yorba-linda-ca-population-and-races.htm

Page 32: 493 Presentation

La Habra Heights City School System

Placentia-Yorba Linda Unified School District

• One of the most prestigious school systems in the state

• There are 16 schools in this city

• Assigned schools for 17281 Meadowview Dr. ALL ranked 9/10:

• Elementary School: Rose Drive

• Middle School: Yorba Linda

• High School: El Dorado

Source: http://www.trulia.com/real_estate/Yorba_Linda-California/

Scores out of 10 (10 = highest ranking)

Page 33: 493 Presentation

La Habra Heights City School Rankings

Source:

Page 34: 493 Presentation

Yorba Linda City School System

Placentia-Yorba Linda Unified School District

• One of the most prestigious school systems in the state

• There are 16 schools in this city

• Assigned schools for 17281 Meadowview Dr. ALL ranked 9/10:

• Elementary School: Rose Drive

• Middle School: Yorba Linda

• High School: El Dorado

Source: http://www.trulia.com/real_estate/Yorba_Linda-California/

Scores out of 10 (10 = highest ranking)

Page 35: 493 Presentation

El Dorado High School

Source: http://www.zillow.com/yorba-linda-ca/schools/el-dorado-high-school-24822/

Page 36: 493 Presentation

Neighborhood School Map

Source: http://www.trulia.com/property/3234839780-17281-Meadowview-Dr-Yorba-Linda-CA-92886#nearby/schools

PARK

PARK

Richard M. Nixon Presidential Library

Main Street

Yorba Linda Middle School

El Dorado High School

Rose Drive Elementary School

Page 37: 493 Presentation

Yorba Linda City Convenience

➢ 43 min from Downtown LA ➢ 17 min from Downtown Fullerton ➢ 30 min from Huntington Beach ➢ 22 min from John Wayne Airport ➢ 4 Major Highways: 90, 91, 57, 55 ➢ Median Travel Time to Work : 31.4 min ➢ 98% commute by Car ➢ 1% by Public Transportation

https://en.wikipedia.org/wiki/California_State_Route_90#/media/File:California_90.svg

https://en.wikipedia.org/wiki/California_State_Route_57#/media/File:California_57.svg

https://en.wikipedia.org/wiki/California_State_Route_55#/media/File:California_55.svg

https://en.wikipedia.org/wiki/California_State_Route_91#/media/File:California_91.svg

https://www.google.com/maps/ John Wayne

Airport

http://www.trulia.com/real_estate/Yorba_Linda-California/

Regional

Sources:

Page 38: 493 Presentation

Yorba Linda City Statistics

➢The median sale price as of May 18 2016 : ➢$750,000 ↑

➢Price Per Square feet : ➢$355↑

➢Median Rent : ➢$3,150 ↑

Source: http://www.trulia.com/real_estate/Yorba_Linda-California/

Page 39: 493 Presentation

• The most basic factors affect investment decisions because buyers follow money for resident or investment.

Yorba Linda La Habra Heights Montclair

Household Size Increasing Decline Decline

Household Income Highest Between Lowest

Housing Price Slightly Increasing Decreasing Constant

Unemployment Rate Lowest High Highest

Population Increasing Constant Slightly Increasing

Which city is the best for investment?

Page 40: 493 Presentation

The Property 17821 Meadowview Dr. Yorba Linda, CA

Page 41: 493 Presentation

Security System

Sprinkler System

Vaulted Ceiling

Wired

SOLAR PANELS

ENERGY SAVINGS!!!

Facts:

Original List price: $675,000

Price per Sqft: $333

County: Orange County

Type: Single-Family Residence

Bedrooms: 6

Bathrooms: 3

Area: 2,026 Sqft

Lot Size: 7,224 Sqft

Year Built: 1964

Features:

Barbecue

Cable Ready

Ceiling Fan

Double Pane/Storm Windows

Fenced Yard

Fireplace

Garden

Lawn

Parking: Garage - Attached, 2 spaces, 483 sqft garage

Patio

RV Parking

17821 Meadowview Dr. Yorba Linda, CA

Source: http://www.zillow.com/homedetails/17281-Meadowview-Dr-Yorba-Linda-CA-92886/25373722_zpid/

Page 42: 493 Presentation

Kitchen Entry

17821 Meadowview Dr. Yorba Linda, CA

Source: http://www.zillow.com/homedetails/17281-Meadowview-Dr-Yorba-Linda-CA-92886/25373722_zpid/

Page 43: 493 Presentation

2nd Bathroom Master Bathroom

17821 Meadowview Dr. Yorba Linda, CA

Source: http://www.zillow.com/homedetails/17281-Meadowview-Dr-Yorba-Linda-CA-92886/25373722_zpid/

Page 44: 493 Presentation

Other Bedroom Master Bedroom

17821 Meadowview Dr. Yorba Linda, CA

Source: http://www.zillow.com/homedetails/17281-Meadowview-Dr-Yorba-Linda-CA-92886/25373722_zpid/

Page 45: 493 Presentation

Neighborhood

Source: http://www.trulia.com/property/3234839780-17281-Meadowview-Dr-Yorba-Linda-CA-92886#nearby/amenities

PARK

PARK

Richard M. Nixon Presidential Library

Main Street

Restaurants

Page 46: 493 Presentation

Neighborhood Overview

On the West side of Yorba Linda

Residential/Single-Family Zone

House price range: $604,500 - $811,000”

92886 Median Sale Price: $750,000

92886 Zip Code WILL RISE 3.3% NEXT YEAR

2.9% increase for Yorba Linda as a whole

Among 92886 homes, this home is 4% lower than the midpoint (median) home, and is priced 11.4% lower per square foot.

Surrounding properties have lot sizes of approximately 7,250sqft.

Source: http://www.zillow.com/homedetails/17281-Meadowview-Dr-Yorba-Linda-CA-92886/25373722_zpid/

$675,000 SHOULD LIST HIGHER!!!

$702,000

POTENTIAL!!!

Page 47: 493 Presentation

Neighborhood Overview

Eating/Drinking:

Ambros Meat Co

Vons

Starbucks

Sprouts Farmers Market

Graziano's Italian Restaurant

Taco's San Pedro

7-Eleven

Lamppost Pizza

Kfc

R Manassero Farms

Distance (mi.)

• 0.14

• 0.26

• 0.37

• 0.37

• 0.42

• 0.42

• 0.42

• 0.43

• 0.44

• 0.46

Description

• Meat - Retail

• Grocers - Retail

• Coffee Shops

• Grocers - Retail

• Pizza

• Restaurants - Mexican

• Convenience Stores

• Pizza

• Restaurants - Chicken

• Fruits And Vegetables And Produce - Retail

All <10min

WALKING DISTANCE

Source: CMA Report

Page 48: 493 Presentation

Neighborhood Overview

Shopping:

• Md-7 US Inc

• Vons

• Vons Pharmacy

• Quaker Kitchens

• Grant Seeker Pro Inc

• Hands On Bicycle Inc

• Nallatech Inc

• Arrow Hardware

• Big Lots

• Sherwin-Williams

Distance (mi.)

• 0.15

• 0.26

• 0.26

• 0.3

• 0.37

• 0.42

• 0.47

• 0.48

• 0.53

• 0.56

Description

• Cosmetics And Perfumes - Retail

• Liquors - Retail

• Pharmacies

• Cabinets

• Computer Software

• Bicycles - Dealers

• Computer Software

• Hardware - Retail

• Variety Stores

• Paint - Retail

All <10min

WALKING DISTANCE

Source: CMA Report

Page 49: 493 Presentation

Comparable Property Map

Subject: 17281 Meadowview Dr., Yorba Linda 92886-3215, Orange County

Source: CMA Report

Page 50: 493 Presentation

Comparable Market Analysis

Search Criteria

Number of Comparables: 11 Search Period:

06/28/2015 -

05/28/2016

Sort Method: Distance From Subject (Closest)

Living/Building

Area: 1,722 - 2,330 Sq Ft

Pool: No Preference Land Use: Same As Subject

Distance from Subject: .5 miles

Summary Statistics

Subject Property High Low Median Average

Sale Price $1,138,500 $550,000 $670,000 $696,545

Building Sq Ft 2,026 3,191 1,763 1,889 2,045

Price Per Sq Ft $409.75 $276.44 $356.78 $341.39

Lot Sq Ft 7,242 18,302 7,205 8,800 9,870.4545

Bedrooms 6 5 3 4 4

Total Baths 3 4 2 2 2

Stories 1 2 1 1 1

Year Built 1964 1981 1961 1963 1967

Distance (miles) 0.48 0.07 0.37 0.32

Value Projected by Sq Ft $691,660 RealAVM™(1) $620,998 $1,242,238 $594,187 $666,767 $715,484 Source: CMA Report

Page 51: 493 Presentation

Financing Options

Page 52: 493 Presentation

Kitchen

Sink/Tile/Granite/Plumbing $ 8,000

Cabinets $ 7,000

Electrical $ 800

Appliances $ 3,500

Total $ 19,300

Master Bedroom

Closet $ 2,000

Electrical $ 1,000

Total $ 3,000

Master Bathroom

Sink/Shower/Tub/Tile/Plumbing $ 8,000

Electrical $ 800

Flooring $ 2,500

Total $ 11,300

2nd Bathroom

Sink/Shower/Tub/Tile/Plumbing $ 4,000

Electrical $ 800

Flooring $ 2,000

Total $ 6,800

Entrance/Living Room

Half Wall Removal $ 800

Enlarge Opening $ 1,000

(Between Living Room and Kitchen)

Chimney with Stone $ 2,500

Total $ 4,300

Family Room

Wall Removal $ 1,200

(Between Family Room and Adjacent BR)

Total $ 1,200

Flooring

Whole House $ 10,000

Total $ 10,000

TOTAL COST $55,900 Purchase Price $ 647,468

Total Investment $ 703,368

Remodeling Costs

Page 53: 493 Presentation

Discounted Cash Flow Model

• Able to save on buying costs through commissions and relationships with attorneys.

Page 54: 493 Presentation

Financing

• Have fantastic standing with creditors which allows our company to obtain a 95% LTV ratio.

• Plan to pay off mortgage through rent payments and eventual sale of the property.

Page 55: 493 Presentation

Operating Income and Variables

• Through research of recent trends and comparables of the property, we believe that a monthly rent of

$3,800 is attainable.

• Vacancy rates remain low within the area and housing prices have appreciated well above inflation.

Page 56: 493 Presentation

Operating Expenses

• Property tax is based on 1.25% of the purchase price assuming we can obtain it for $647,468.

• CapEx assumes a 6% expense of the rental income for things such as roof repairs and driveway guts.

• Other expenses are formulated through recent comparables.

Page 57: 493 Presentation

Operating Expense Growth Rates

• Property tax assumes a cap of 2% each year.

• Other growth rates are based off of the Federal Reserves target inflation rate.

Page 58: 493 Presentation

Operating Expense Summary

• A product of the previous operating expense growth rates

Page 59: 493 Presentation

Before Tax Cash Flow

Page 60: 493 Presentation

Ratio Analysis

Page 61: 493 Presentation

Rental Operating Tax

Page 62: 493 Presentation

After Tax Cash Flow and Resale

• Our investment team believes this project will be possible only if you plan on holding and reselling

Page 63: 493 Presentation

Amortization Table

Page 64: 493 Presentation

Resale Assumptions

Page 65: 493 Presentation

(Initial Equity) MAX (CEILING) PRICE TO PAY

FOR THIS PROPERTY:

$647,468

Ceiling Price

Page 66: 493 Presentation

Lets Invest TOGETHER!