Investor Update - Exciting Times Ahead
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 Wednesday, March 27, 2019, click the link for details, location, address and time.
This Month's TOP Investor Report!
VCV Continues Placing offers! VIRTUOSO is back in an acquisitions phase and we now have 5 accepted offers on land we'll be building new Apartment Buildings on and offering investors opportunities to share in the profits;
1.) Our first accepted offer closes March 13, with 4 others closing over the next year and into 2020.
We're getting long close terms which is great for us and our investors as very little up from money is required which increases ROI and we can progress through the development phases without incurring the down payment and closing costs and or having to carry mortgages and rent the homes as we progress to building permit.
More acquisitions are imminent as our plan is to build multiple small 20 to 80 unit boutique style Apartment Buildings under the CMHC National Housing Strategy for affordable housing Construction Loan program.
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 by investors making them more accessible for offering to smaller investors.
2.) Our first build will be on a 7499 sq ft lot, we're planning to build a 24 unit Purpose Built Apartment Building on this lot.
4 stories high.
1 level of above grade concrete parking garage on the ground floor.
3 levels of wood frame Apartment Suites above, which is about 6300 sq ft per floor.
1 elevator.
The unit mix we’re targeting is;
15 – 950 sq ft 2 bedroom 2 bathroom units
9 – 310 sq ft micro units these may be configured as Accessible units for the min 20% Affordable Housing component.
A fully formed Pro Forma investment offering with projected ROI figures for participating investors will be published within the next month so watch for it in your email inbox.
Other Great News for Investors;
"VCV Windsor"
1) We've hired a new Property Coordinator, Brenell Dean, who also runs her own business, "Deans Paralegal".
That's right, Brenell is a paralegal with about 3 years experience as an entrepreneur, and because she's a paralegal we have the advantage now of having on staff legal oversight of the entire Windsor portfolio which is lowering our late rent and payment default rate as well as capturing more tenant invoicing payments and collections, again, increasing profit and the overall value of the Windsor portfolio.
So Grateful for finding Brenell!
2) Rents keep increasing across the Windsor portfolio so NOI, building values and investor profits continue to increase.
"Walkerville Court Apartments"
1) We're planning the installation of electric Sub Meters, which will mean each unit/tenant gets billed individually for their power. this should save at minimum 10% on our electricity bill which is about $63,000 per year, this savings of $6,300 increases the value of the building by $105,000 on a 6% Lending CAP.
2) We're separating a very large Mezzanine foyer with a wall for a Air BnB suite, should generate about $1,500 /mo which at a 6 CAP increases the property value by another $300,000.
Now that's the amazing power of wealth generation through Apartment Building investing , it's all about NOI increase, calculated on the lending CAP Rate.
"Deauville Apartments", this property's Condo Conversion is now complete. We're now going through the process of breaking the existing mortgage for an equity take out.
As previously reported the appraisal came in at $3,225,000 for this 36 Unit building, our current mortgage is about $950,000, the letter of intent states our new mortgage will be about $2,100,000.
And since this new mortgage will be 65% LTV it will be non recourse, in other words, no guarantors :-)
So after costs, mortgage break fee of $40,000, CMHC fees of $35,000, $20.000 to the Mortgage Brokerage, $10,000 to Lawyers and about $10,000 for Appraisals and Environmental and Building Condition reports we'll net about $985,000 in cash we can invest into building a new Apartment Building under the CMHC Affordable Housing program.
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.
These Windsor buildings have become seriously sweet deals, with lots more profit potential :-)
"Helen Terrace Townhomes"
And,
"Aaron Apartments"
I'm currently working with my new business partner Robert Klein of Robert Klein Mortgage Group to refinance these 2 properties and restructure my corporate financials across all 4 of my Corporations which will result in and equity take out I can use to finance our New Apartment Building development and construction projects.
Yes that's right I'm 100% all in financially.
Feel free to contact me on rickg@virtuosocapitalventures.com for more info about similar upcoming investment opportunities.
PROJECTS WE ANALYZED and PASSED ON:
We passed on few residential lots in our Target Area because of these reasons.
1) With the Condo Market in decline and prices plummeting Condo Builders aren't in the market for new land and higher density designated lands with houses on them are no longer getting offers which is turning the market from a seller's market, to "Developer buyers" market. Good timing for us as we can now be more selective and get our terms; the Right Price, and Long Closes.
2) We passed on one property because it wasn't in good enough shape to rent and break even, don't want to be bleeding cash for a year while we're going through the development permit process.
3) We turned down another property because the accepted offer price was too high, and close date was too short, we'll take our chances and circle back later, see if we can pick it on better terms.
Enjoy, Rick G.