All Forum Posts by: Steve S.

Looking for investments from $50,000 - $1,000,000 to be part of this incredible project.

We have found an historic building in a growing town in Kentucky where we are going to acquire a 32,000 square foot brick building on 3 acres of land for only $125,000 and it has an assessed value of $400,000. There will be extensive rehabilitation needed but phase 1 will only comprise of the acquisition and the architectural planning and permitting process.

We are seeking a $250,000 investment into the project to be held in 1st lien position and are willing to accept it in $50k increments. The $250,000 from the investor(s) will be recorded on title and be paid back to the investor upon us obtaining new financing for the full construction/rehabilitation process once the permitting process is completed.

Upon close of escrow we will immediately be drafting plans and conducting engineering reports in order to submit them to the city. We project this process to take between 4-6 months. Once we have the permits we will be ready for new financing in order to pay for the construction process. Upon receiving the new financing is when we will pay the investor (you) back plus the agreed upon interest.

WHAT YOU GET:

You will make 15% annualized rate on the $250k investment to be paid back in full, plus interest, upon us receiving new financing once the permits are issued.

Email me at [email protected] or text me at 310-948-8585

These opportunities are usually located in los angeles, orange county, southern California, palm springs, huntington beach, CA. This is not traditional financing or hard money or private money. Many lenders who provide hard money financing or private money financing are not gap investors, so we are looking for true private individuals who are looking for solid ROI(return on investment) investments by being part of new property acquisitions on properties that are for sale. These opportunities are primarily for single family residences that are fixer uppers, fix and flips, need TLC and are hangman specials. So please call us if you are interested in gap, or jv, or being involved in a joint venture capacity on this amazing house flip opportunity in the amazing neighborhood of Studio City in Los Angeles California.

I know a deal where you can get 15% on your 200k right now. DM me your email address.

I have a deal I am working on purchasing and the DSCR ( Debt Service Coverage Ratio) is through the roof. The CAP is over 12% as is and with some upgrade I can get it to 15%+.

I need some direction on good lenders out there and possibly some equity JV partners as well. If anyone has advice I am welcoming it all. Thanks so much.

-Steve

@Reginald Truss never heard from you... email and let's talk from there, thanks

PARTICULARS:

Transaction: Purchase

Property Type: 50 unit multifamily

Capacity: 95%+

DSCR: 2.0+

Location: Kentucky

Purchase Price: $1,150,000

Loan/Investment: $1,300,000 ($1,000,000 to buy the property + $250k for renovations + $50k for operating expenses +$150k will be carried back in 2nd lien position)

Lien Position: 1st

Assessed Value AS-IS: $1,300,000+

FICO: 700+

OVERVIEW:

I have a currently performing 50-unit multifamily complex available to me and I'm looking for a money partner or two to fund it. The idea would be to have a JV partnership. It's a solid cash flow deal that's located in a tertiary market in KY. I have a few other projects in the area which are going to increase the value and desirability of the market in the next few years with bringing jobs etc...

Purchase Price: $1,150,000

Gross Income: $25,000 / month

EBTIDA: ~$12,000 / month

CAP RATE: ~12%

Seller Carry back: $150k in 2nd lien position at 4% negotiated already for 5 years

There are some upgrades we can do which will reduce the monthly costs by about $3k - $4k per month and will increase the overall value of the property by about $400,000 for a $250,000 cost. Those savings will grow over time.

I found the deal and am glad to be the asset manager for it to make sure that it performs. I'm in need of money partner(s) to get it closed. Please reach out if this piques your interest and you want to discuss it further.

There are also ways to include it within the opportunity fund as well and or if someone has the full amount to bring for the deal we can securitize the JV money brought in with the 1st trust deed position. It's a safe secure deal. Let's talk.

THE PLAN:

The largest expense on the balance sheet is about $6,000 in utilities on average per month. By installing a central air-conditioning system, in addition to a robust solar power system, complete with Tesla power walls, we can offset that $6,000 utility fee by about $3k - $4k per month or $40,000 in savings per year. We also want to complete some other small upgrades with landscaping, a swing set and sit down area for the tenants. All in all these improvements will approximately cost $250,000 but with the improvement we will be able to increase rent by $50 per unit, resulting in an additional income of $2500 per month or $30,000 per year.

This will increase the current Net Yearly Income of $144,000 to approximately $214,000.

$214,000 / $1,400,000 = 15.2% Capitalization Rate

If valuated at the going rate of a 10% Capitalization rate, it would put the new value of the property at $2,140,000.

So not only will the improvements pay for themselves in about 3.5 years, we will also increase the value of the property by $1,000,000 for the $250,000 in upgrades.

WHAT WE’RE OFFERING:

In exchange for the $1,300,000 in capital we will offer a 4% Note Rate to be paid monthly + 50% of the profits to be paid semi-annually.

We project this to be in accordance with the below calculations:

$1.3M @ 4% = $52,000 per year

EBTIDA is projected at $18,000 per month

$500 a month for the 2nd mortgage

$1,000 a month to be held in company reserves

$4,333 a month for the 1st trust deed (your trust deed of $1.3M

$2,000 a month management fee to our company for overseeing the entire project and operations

_________

$7,833 / month of additional expenses

$18,000 - $7,833 = $10,167 true NET Monthly Profit

From there we will do a 50/50 split of the profits. Resulting in approximately $5083.5 per party.

This results in a projected ~$61,000 from the JV split plus ~$52,000 from the earned interest on the NOTE for a total approximate yearly income of $113,000 or a 8.69% yearly ROI to you.

As time goes on we will look to be slowly increasing rents by incremental margins as well as being able to charge for additional amenities which will increase the ROI over time.

Stephen Snyder

Ascend Opportunity Fund LLC

Managing Director

c) 310.948.8585

[email protected]

What we are usually working on: hard money, private money, BRRRR, investments, investing, gap financing, gap money, fix and flip, wholesale, mechanic special, handyman special, fixer upper, fixer, financing, buy and hold, California, los Angeles, Orange County,

@Reginald Truss Thanks for reaching out. Please email me at [email protected] thanks so much... I look forward to discussing things with you.

Looked into it... with the additions I want to do I can turn that property into a 15.5% - 17% CAP which would make the value of the building actually be $1.8M in less than a years time. My upgrades pay for itself. Let's talk.

that depends on the laws of missipppi ... in CA you are supposed to register an out of state business with the Secretary of State in CA if you're doing business in CA. I know many people who have not done that but they can come back and fine you. I don't know about Mississippi so please look into that via google. it seems more like speeding... if you get caught you pay a fine... but everyone does it.

Possibly think about putting it into an LLC. If you do it in Wyoming you and your spouse can still own it, you can do it in their name, LLC can hold title, and in Wyoming you don't have to disclose and stay anonymous so silent partners are truly silent. Something to think about.

I think you should set it up in Wyoming, there are a lot of benefits setting up a single purpose entity in Wyoming.

-Steve