Virginia Hard Money Deal - Close

621

1 deal

No

Norfolk

Virginia

$1,000,000

$0

Greetings, fellow investors!
I am excited to present a lucrative investment opportunity in the vibrant Ghent area of Downtown Norfolk. We are seeking investors interested in participating in the acquisition of a 12-unit apartment building. This opportunity is particularly compelling due to a motivated seller and the property's promising potential for attractive returns.
Property Overview:
• Location: Downtown Norfolk's Ghent area
• Apartment Building: 12 units
• Rental Rates (as per MLS data): $1,195 to $1,700 per month
• Assumed Rental Rate: $1,200 per month
Financial Projections: With full occupancy at the conservative assumed rental rate of $1,200 per month, the property is projected to generate $14,400 in monthly rental income. This equates to a 14.6% capitalization rate at 100% occupancy. Even at 80% occupancy, the rental income would amount to $11,520 per month, resulting in an attractive cap rate of 11.31%.
Additional Financial Considerations: It's crucial to take into account other financial factors associated with the investment. These include annual tax expenses and professional management fees.
1. Taxes: Approximately $12,100 per year will be allocated for taxes, ensuring compliance with local tax regulations and avoiding any potential liabilities.
2. Professional Management Fees: A portion of the rental income, approximately $12,000 per year, will be allocated for professional management services. This ensures efficient property management, including tenant acquisition, rent collection, maintenance, and overall property oversight.
Market Outlook: It's important to note that the rental rates used in this proposal are conservative estimates based on available MLS data. The actual rental rates are expected to be higher, further enhancing the property's income potential and subsequent returns on investment. Detailed financial information will be shared during due diligence proceedings and underwriting to provide a comprehensive assessment of the property's performance.
Investment Highlights:
1. Motivated Seller: The current owner is highly motivated to sell, presenting an opportunity to negotiate favorable terms and potentially acquire the property below market value.
2. Prime Location: The Ghent area in Downtown Norfolk is a sought-after neighborhood known for its vibrant atmosphere, amenities, and growing rental demand.
3. Strong Rental Market: The area already boasts attractive rental rates, with market trends indicating further growth potential, ensuring a steady stream of rental income.
4. Diversified Income: The 12-unit apartment building offers a diversified income stream, minimizing the risk associated with vacancies and providing stability to the investment.
5. Positive Cash Flow: The projected rental income, considering taxes and management fees, indicates positive cash flow, allowing for debt service coverage and potential reinvestment for further growth.
6. Upside Potential: The thriving area presents opportunities for rent appreciation and potential future value appreciation, maximizing returns on investment.
Loan Request: We are seeking a loan amount of 1 million dollars to finance the acquisition of the 12-unit apartment building. The funds will be utilized for the purchase price, closing costs, necessary renovations or improvements, and contingencies. The budget will also account for annual tax expenses and professional management fees.
Terms and Conditions: We propose the following terms and conditions for the loan:
• Loan Amount: $1,000,000
• Interest Rate: 6% per annum
• Loan Term: 30 years fixed
• Repayment Schedule: Monthly payments over the course of 30 years
Conclusion: In conclusion, the acquisition of this 12-unit apartment building in Downtown Norfolk's Ghent area presents an exceptional investment opportunity. With a motivated seller, prime location, strong rental market, and potential for increasing rental rates, this property promises attractive returns