Investor Update - Winter 2018
Each time I attend the SYNERGY REN meetup I present a short update on the recent Real Estate investment deals I'm working on acquiring and offering to investors.
Click here for SYNERGY REN Meetup Dates;
Next SYNERGY REN Meetup is January 23, click the link for details, location, address and time.
This Month's TOP Investor Report!
Placing more offers! VIRTUOSO is back in an acquisitions phase and we've been placing offers;
1.) We have 1 accepted offer and at least 3 more are imminent, our plan being to build small 20 to 80 unit boutique style Apartment Buildings under the CMHC National Housing Strategy for affordable housing.
What Makes the CMHC National Housing Strategy a Great Deal!
We buy residential lots, develop-able into small apartment buildings under the CMHC NHS program which lowers the risk profile and cash required, making them more accessible for offering to smaller investors.
2.) In October we revised our offer on the 109,000 sq ft piece of land in the South Surrey / White Rock area, we're currently in the running for an accepted offer but the owner's Lawyer is negotiating on multiple offers so nothing firm on this one yet.
3.) We had an accepted offer on One lot of Four that we needed for a Surrey City Centre Land Assembly that would be a 6 Story Apartment Building but one owner refused to sell. As a result we put this one on ice for now, eventually it will come back to us, we have the faith :-)
4.) We placed another offer on 3 lots in the 2.5 FAR area of the Surrey City Center OCP that's build-able to 97,000 sq ft of Residential Apartment. Currently the owner is sitting on multiple offers including ours, and all well below their asking price, eventually the tables will turn, and buyers will again be able to buy at fair market value and on terms necessary for safe development investing, until then, we'll keep presenting offers, our price and terms will follow eventually :-)
Great News for Investors;
"Walkerville Court Apartments" Repave of the parking lot is complete, a $60,000 ticket.
Now that the new parking lot pavement is placed my focus is on hiring a new Property Coordinator, I interviewed a great candidate today, an entrepreneurial paralegal who should make a great addition to the team and be able to increase profits, I have a plan ;-) Next for this property is Sub Metering the Electricity, an $18,000 investment that should reduce our hydro bill substantially, can't wait for this one.
"Deauville Apartments", this property's Condo Conversion is now complete. The new mortgage securities are now registered to title.
The 36 titles will be registered in about a month when the Condo Corp is Registered.
As previously reported I received the $3,225,000 appraisal for this 36 Unit building we purchased in 2015 for $1,777,000, very happy investors!!!!
Also as previously reported the City of Windsor issued a letter of mandatory rent reduction to offset the saving and give it to the tenants.
I sent a letter to all tenant's offering to stabilize rent by offsetting the rent reduction with an N10 Rent Increase Above the Guideline for Capital Improvements that benefit the tenants, 35 of 36 tenants signed, this saved a tonne of admin work and costs, very happy.
Next steps are; 1) Create the Condo Corp. and Articles. 2) Register the 36 titles with land titles. 3) File N10 with the LTB 4) Refinance and take out equity to pay back shareholder loans from investors for the down payment and Condo Conversion Capital Improvement costs, 128% ROI in 3 years just on Equity, add annual ROI from Cash Flow, Principle Pay Down and Tax advantages.
With Condo Prices on the Rise in Windsor there's also an opportunity to sell this building off as individual condos in the future at a significant profit.
Still a very sweet deal with lots more profit potential :-)
"Helen Terrace Townhomes" this is a 6 Unit Row House of 3 Story, 3 bedroom, 1850 sq ft townhome style apartments. I purchased this building in July 2011 for $300,000, spent $230,000 renovating it and severing title and then refinanced it one year after purchase for $618,000 :-).
With the local economy just humming along now I'm renting these units for $1,300, that's a $250 per month increase since last year, now we're making money, and Townhomes in the area are selling for about $150,000 :-)
"Aaron Apartments" is a 6 Unit Apartment Building I purchased in May of 2011. I spent $84,000 renovating this building immediately after purchase, and in August of 2011 I refinanced it and received $94,000 in additional equity paying back all my reno costs :-).
This building is another great cash flow property and market rents have been significantly increasing in this asset class over the past few years increasing its profit an doubling its value :-).
Feel free to contact me on rickg@virtuosocapitalventures.com for more info about similar upcoming investment opportunities.
PROJECTS WE ANALYZED and PASSED ON:
1.) Nothing since last reported, were on a roll.
Enjoy, Rick G.