Westwood Hills Subdivision Gallatin, MO.

The Westwood Hills subdivision is about an hour Northeast of Kansas City and was originally designed, platted, and recorded in 1972. The City of Gallatin approved the development at that time. Due to the passage of time, we will need to obtain the City’s approval again, but the rules for such approval are minimal. Essentially, we need to coordinate with the utility company, and in so doing, the City will make the necessary approvals. Eleven of the original 53 lots were sold, and homes were built upon them. 42 lots remain to be built. Our plan is to keep the original subdivision as platted. However, we may add a few more lots where land is available, bringing the total to 46-50.

City Ordinance

The City is fully behind us in developing this subdivision and the ordinance is only one page long! That’s a far cry from what it would be here in Colorado.

Private Lender’s Role:

We are seeking a private lender to provide bridge financing of $300k and secure the development loan at which time the $300k will be returned. Purchaser to also pay the lender(s) carrying/interest charges estimated at approximately 10% per annum. The investor will receive 3 points on the $300k plus 50% IRR on all capital at risk during the development. If we don’t find an investor with the full amount we’ll structure this as a JV or Syndication. The minimum investment will be $50k.

We are estimating a maximum maturity date of 24 months from the date of issuance. Security provided by the Trust Deed in the property located in Westwood Subdivision, Gallatin, MO. We will be selling some of the homes using a lease-option and the lender(s) will have first right of refusal on these homes.

This page is not a complete description of the financing and does not constitute either an offer to sell or an offer to purchase securities.

List of Things to Complete:

This phase will complete the acquisition and development of the project. This phase will be complete when we have approximately 42-46 buildable lots completed. The infrastructure budget contemplates the completion of engineering, the stubbing in of water, sewer, gas, and electrical utility lines, as well as the completion of two streets, curbs, and gutters. The total estimated budget provided by the engineering firm is approximately $482,500.00.

Estimated Infrastructure Budget Detail:

This budget is based on the engineering estimate:

Estimated Critical Path: 

We will close on this property purchase the second or third week in July 2022. Upon closing, we will begin infrastructure work, based on engineering plans. We expect to complete all infrastructure work on October 15th, 2022. In as much as we will be pre-selling lots and homes within the subdivision as soon as the closing date, we will be ready to begin breaking ground on homes as soon as the completed infrastructure for that home allows. This could be earlier than 10/15/2022, but most likely will begin on or around that date.

Walk-Through Notes:

1. Property Size/Other Dimensions: approximately 16 acres. Lot sizes; start at about 8,600 square feet, with lot prices starting at $25,000 and going up to $35,000 for premium lots.
   
2. The property sits mainly on an elevated rise, with a large portion on a slope. This requires the property to have and maintain a retention pond that could be used as a recreational area if managed properly.

Meet The Kokomo Construction Team

CEO – Mark Beach has over 30 years of experience in banking, construction finance, and construction operations. He began his construction career managing the infrastructure contract between Disney and the French government. Later, he consulted Disney’s EuroDisney construction operations focusing on supply chain, contract administration, estimating, and other administrative functions. Later, he consulted KFC-Canada with real estate acquisitions. He has helped raise a total of $250 million in capital for real estate developers and assisted developers in turnarounds and recapitalizations. Mark is a creative problem solver and has worked on many real estate deals of his own. 

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General Manager – Matthew Beach started gaining experience in the construction field at a relatively young age (15 years old) working summers for local general contractors and taking construction classes in high school. After High School, he built homes for several more years working for general contractors and was promoted to the main foreman. He obtained his general contractor’s license and started his own building company while working for other general contractors when work was available. Matthew has owned and operated his own building construction business for nearly 25 years. He worked as assistant superintendent for R&O Construction building part of a mini-mall in St. George, Utah, and served as a foreman to other union construction companies. He has worked as Executive VP for MCK Construction and he has been an active member of the Carpenter’s Union for nearly a decade. Matthew has almost 20 years of experience building commercial buildings, hospitals, grocery stores, bridges, and even a major addition to the Fresno city zoo in California.

Interested?

Reach out to James Brown at 303-979-4738 or Toby Hanson at 720-352-1521 for a Term Sheet and/or click here to set up a Zoom to go over the opportunity.

503 W 22nd Street, Trenton, MO 64683

CLICK LINK FOR PHOTOS & REHAB PLAN
https://drive.google.com/drive/folders/14j4QBAfcsOvHEAkXPlpiD-H5xAb7KokF?usp=sharing

• Purchase Price: $25,000
• Proposed Disposition Budget: $87,000
• Proposed Completion Date: October 31st, 2022
• As Built Appraisal: TBD (est.) – $160,000
• Selling Price Estimate: $160,000
• Anticipated ROI (Annualized): 50%

Financing Plan

Obtain an as-built appraisal, and then obtain a construction loan. Profit-sharing distribution (the sales price of the project minus the actual cost of the project) will be based on fixed percentages of capital placed at risk and allocated as follows:

Funder to provide credit for the construction loan in return for 3 points (3%) of the amount of the construction loan, as well as initial cash to purchase and close on the property. The loan will be an acquisition and construction loan, so the amount advanced will be returned to the investor upon closing the loan. All investor profit-sharing will be based on a formula designed to give them a 50% annualized return based on amounts placed at risk in the project.

The Property

This home was burned in Dec 2021. The cause of the fire is suspected to be human caused, as opposed to electrical, or other natural cause. About 80% of the standing home was saved from the fire. However, due to the home’s age and general condition, the home should be considered a complete rebuild and expansion (new construction). 

Plans to rebuild include:

1. Redesign home based on the following key items below;
2. Clean up burn debris, tear out lath, and plaster back to studs on existing home;
3. Remove existing front porch;
4. Excavate existing basement, and expand garage slab to the existing foundation to North-end of existing foundation;
5. New-built construction to include, a new garage, new living space over the garage, and new living space North of the old garage;
6. The current floor plan includes 3 bedrooms and 2 baths. New floor plan to add 2 bedrooms, a third bath, additional kitchen space, pantry, and utility/mud room.
7. The current lot is approximately .25 acres and will provide a nice space for this enhanced home in a well-established neighborhood.

Interested?

Please schedule a call with our team ASAP to discuss acquiring this deal. Our deals usually go pretty quick, so please schedule with us now if you’re interested.

Book a call with me at -> https://hybridrealestateinvesting.com/call

61 SFR Home Portfolio

We were able to negotiate a very attractive Contract Price for this 61 Home Portfolio – $2,234,320. The current BPO comes with a value of $4,364,152.

We are looking for a private lender to invest $300k or up to three lenders with $100k each. We are paying 10% interest plus equity. Investor(s) would get their investment back after two years and retain a 2% equity and cash flow position per $100k invested.

The Current Ratio of Cash Flow to Purchase Price from day one is 16.5%.  After Stabilization, it will be 35.1%.

The rent hasn’t been raised for 3 years. Our local management company has confirmed after due diligence and Inspection that:

• Current Monthly cash flow from day one – $30,656

• Fair Market Rent Per Month is $65,431.

Muncie is an Excellent Emerging Market.

Muncie is rated as the most affordable market out of 400+ Metro Areas and we already have a great management team in place.

Recorded overview: https://www.dropbox.com/s/4j2ysmqq67zxb9d/video3425241897.mp4

Below are the portfolio details:

https://docs.google.com/spreadsheets/d/13tTKLC4uN_qwdsSfhzbOS8P2qp_HCoexGnCnHM3LT9I/edit?usp=sharing

Rehab/Upgrade Cost & Schedule: 

The total cost of Rehab/Upgrade for the portfolio is $422,957 or an average of $6,934 per house. Rehab of 5 or more houses per month initially, adding more rehabs incrementally such that the repair/upgrade process will take ~ 8-10 months.  

Cost-Effective Insurance Policy:

We agreed with our management Co & their Insurance Co to use their Umbrella Policy, under which they already have 2,300+ apartments & houses for many years. We are able to add any houses as a rider at any time to this policy. The rough formula for this insurance is: Coverage amount x .0065 bps → meaning $75k of coverage runs $487.50 per year. This insurance will be billed monthly. See the insurance cost using this estimation in the above link. 

Interested?

Please schedule a call with our team ASAP to discuss acquiring this deal. Our deals usually go pretty quick, so please schedule with us now if you’re interested.

Book a call with me at -> https://hybridrealestateinvesting.com/call