Investor Update - July 2018
Each month at 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 This Link for Meetup Dates; https://www.meetup.com/SynergyREN/
Next SYNERGY REN Meetup is August 29, click the link for details, location, address and time.
This Month's TOP Investor Report!
"Willoughby Walk" SOLD! The agreement for sale is now in the final stages for this 191 Unit Purpose Built Apartment Building which will trigger a payout to all the investors likely by late August or some time in September.
I'll be publishing actual returns/investor profits for this project once the share distribution payout values are finalized so make sure to check my next few newsletters to see the Real Profit numbers on this type of project.
Some History; 4th reading was approved April 2016, the project was fully funded by investors in August 2016, the Construction Permit was issued shortly after and the first excavations and construction started December 2016. So investor ROI's will be based on a 2 year hold, We're all really looking forward to seeing the final numbers, oh, and of course those Profit Cheques :-)
Other Updates; Our main new project work in progress is the acquisition of an 18 Unit 1970's Strata Apartment Building in White Rock BC.
The Investment Plan;
1. Present CMA's (CMA is a Realtor Value Analysis) followed by appraisals for the 18 Strata Owners.
2. Draft 18 purchase commitments followed by Purchase and Sale Agreements.
3. Create a Pro Forma presentation to present by webinar and investment event and send out to investors by email etcetera.
4. The land is develop-able into a 4 to 6 story, up to 50 Unit (approximately) new Condo or Purpose Built Apartment building development project.
There will be significant upside in this deal as Rental Units and New Apartment Buildings are a super hot commodity with most seniors and first time entry level buyers now priced out of White Rock area condos and single family homes and now townhouses are even becoming too expensive for first timers so condo sales and prices have flattened off and apartment rents are on the rise making Apartment Buildings the current hot commodity.
Other News for Investors;
"Walkerville Court Apartments" The refinance of this 40 Unit Apartment building owned since 2012 is complete and we now have a new mortgage with the same monthly payment and we received a $400,000 equity cheque to invest into a new project and pay some portion in non taxable dividends to investors as an equity bonus :-)
At some point in the next 10 years we will be replacing elevators, the 2 year elevator replacement mandate from the TSSA has been lifted now so we have a lot more time to build a capital reserve for elevator replacement.
Still have to repave the parking lot, a $60,000 ticket, most of the $340,000 left over will get reinvested for our investor into a new project :-)
More Great News for Investors;
"Deauville Apartments" this property's Condo Conversion is now complete. The final docs for severing the mortgage are on my desk for review and signatures, fun reading, 100 pages of mortgage securities docs, ouch :-)
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!!!!
Next steps are; 1) Create the Condo Corp. and Articles. 2) Register the 36 titles with land titles. 3) Apply to MPAC Ontario to adjust the tax assessment to 36 Residential units from Commercial Multi Family and save $32,000 per year on Taxes :-) that's $32,000 per year of extra PROFIT for investors :-). 4) Refinance and take out equity out 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,
Now that's a sweet deal :-)
"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 :-)
"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.
Enjoy, Rick G.