- 1. Mathew Owens, CPA p. 310. 897.1355 f. 310. 347.4415 e.
[email protected] Owens Consulting Group we realize that investing
in Real Estate can be complex and that there are many perceived
barriers. We take away those barriers so that you can become a
successful investor by offering the following services:Property
PropertyLocal GuaranteedExit FinancingAnalysisAcquisition
NetworkTenantStrategyWe walk you Established networkIf your
property isWe provide We will refer you Includes an through the of
inspectors, not rented withinassistance withto our network of
analysis of the close of escrow.contractors, property4 months
ofyour exit strategy brokers and neighborhood, managers,
titleclosing we cover whether your bankers to assist expenses, and
agents, loan agents, the mortgage looking to you in refinancing the
expectedand appraisers topayment until arefinance andor getting
return of eachassist you along the tenant is place. pull cash out,
financing for your property. way.hold it for cash buyer. flow, or
sell for profit.Memphis Overview Memphis is the countrys 18th
largest city and part of the 41st largest Metropolitan
StatisticalArea (MSA) with nearly 1.3 million residents. Memphis
boasts a diverse and growing economywith its primary industries in
distribution, manufacturing, agribusiness and healthcare. Its
knownas Americas Distribution Center due to its central location
and the presence of FedEx WorldHeadquarters. Memphis has a growing
bioresearch hub and is home to four Fortune 500companies with the
population projected to grow by 12% by 2020.Memphis Real Estate
MarketMemphis has one of the highest monthly rent to price ratios
in the nation Little or no depreciation risk Healthy ratio of
median income to median home price PMI risk index ranks Memphis as
the 7th least likely metropolitan area to depreciate in the next
two years A recent study by Moodys Economy.com ranked Memphis as
the 6th most undervalued city in the U.S. Predicted home price
appreciation of 5% in 2009 Over the past 20 years, Memphis has had
only two quarters in which home prices declined.
2. Example Property OverviewFinanced OptionCash Option HOLD FOR
CASHFLOWCASH PURCHASE Lender Pre- Proof of Fundsapprovalto OCGRent
($800 / Month)$9,600 Vacancy Allowance (8%)
($768)InvestmentProperty Mgmt (10%)($960)
PreferenceInvestmentInsurance($500)
PreferenceTaxes($956)PropertyRepair Allowance ($500)Analysis
PropertyNet Income $5,916 AnalysisPROPERTY DETAILSDepreciation
Benefit $404 Submit Offer & Earnest Money Address1603 Waverly,
Memphis, TN Cash on Cash Return10.53%Area Downtown/Mid-town Initial
Equity in Property Over Cost $20,000Submit Offer & Square
Feet1,755 Equity ROI 33.33% Earnest Money Rehab Bid Bed5Total
ROI60.70% Bath 2Year Built 1922AppraiseRehab Bid & HOLD FOR
CASHFLOWProperty Appraisal Estimated Rent $800 PURCHASE WITH
FINANCING Estimated Mkt Value$80,000Down Payment & Closing
Costs * $15,500 Sales Price$27,750 Close Escrow Price-to-Value
34.69% into OCGs nameNet Income $5,916Close EscrowDebt Service (7%
rate) ($3,823)COST ANALYSIS Renovate &Annual Cash flow $2,093
tenant property Purchase Price $27,750 Tax Benefit (30% tax rate)
$571Renovate Rehab Amount $15,000propertyTotal Cash on Cash
Return$2,664 Rehab Buffer (15%) $2,250 Sell to investorCash on Cash
Return17.19% with 20% down Rehab Management $2,500Principal
Reduction 1 st Yr$584 Sec 8 Inspection Repairs $1,000 TenantInitial
Equity in Property Over Loan $32,000 Repairs After Move
in$1,000property Property MgmtTotal Equity in Property Over Loan
$32,584 Docs Commissions$3,000Purchase Closing Costs $1,500Equity
ROI 210.22% Deal Syndication Fee $6,000Collect CashTotal ROI227.41%
Collect CashFlows! Total Cost $60,000 Flows!*Down payment of 20%
& sales price of 75% FMV Cost to Value75.00% Complete
Documentation Provided (1) Renovation bid (2) Comparables for
property (3) Before & After Pictures (4) Tenant lease &
property mgmt agreement (5) Property mgmt info and referrals (6)
Appraisals if purchasing with financing