1. National Church Proposal
Financing and acquisition Seaford Tabernacle Church Property

2. Background Church Property Mortgage Financial Request
Church Building – 9,000 sqft.; parking spaces – 50; Acres – 7.44 (Encumbered by mortgage); Estimated Value - $1,260,000
Approx. 30 acres of land (unencumbered) -$1,500,000 ($50,000 per acre)
Total estimated value of the Church Property - $2.7M
Mortgage
Current balance due - $1,176,000 (Original balance $800,000)
Negotiated principal balance as of 12/ $650,000 - $725,000
Current extended date of maturity– Mid-February 2017
Financial Request
National Church Ownership of above referenced Church property
National Church refinancing of the mortgage and become holder of note
Seaford Tabernacle would lease the above referenced church property from the National Church which would include:
$2,000 monthly rental fee
Seaford Tabernacle to cover utility cost
Cost of maintenance and upkeep including lawn care and snow removal

3. Tentative Loan Obligation
PHASE I
Loan Value - $725,000
Term – 6 months (Forbearance)
Estimated monthly mortgage and interest payment - $5,200
PHASE II
Loan Value – Approx. $715,000
Term – 5 years
Interest only payments- $2,500

4. National Church Cash Flow Details & Exit Strategy
Transfer/Donating all free and unencumbered property to the National Church of approx. 30 acres. Acres to be sold during Years 2 through 5 (Sale at possible discounted price of approx. $40,000 per acre) or at market ($50,000).
Rental lease payments of $2,000 per month supported by lease agreement (s) with Seaford Tabernacle
Membership pledges from 100 members of $50 per month for 3 years ($600 per year).
Passover Convention would have to realize $7,500 net income and the Assembly would have to realize net income of $2,500.
Expansion of Development/Community Center - Summer Food Program generated approx. $10,000 in profit during By Year 3 generate $12,000 in annual income from this program.
Day Care or Other Community Development Program – Commencing in Year4 and generate approx. $12,000 in annual income.

5. National Church Cash Flow Details & Exit Strategy
Year 1
Year 2
Year 3
Year 4
Year 5
Income:
Membership Pledges
$60,000 $0
Rental Income & Programs
24,000
36,000
48,000
National Conventions
10,000
Sale of Land (4 acres per yr.)
160,000
Total Annual Income
$94,000
$254,000
$266,000
$218,000
Annual Principal and interest payments
46,200
30,000
Annual Cash Flow
$47,800
$224,000
$236,000
$188,000
Repayment of Mortgage
$200,000
$125,000
Net Accumulative Cash Flow
$71,800
$107,800
$95,800
$158,800

6. Year 5 and beyond………….
National Church will own church property and land unencumbered by a loan valued at approx. $2M and therefore equity along with credit worthiness for expansion.
National Church will have cash on hand in excess of $150,000 with annual cash flow of approx. $58,000 (rental income and conventions).
National Church will have the ability to expand and build upon unencumbered property generating additional capital.
National Church will have the liquidity and cash flow to fund and assist local church expansion and building purchase efforts and invest in for profit ventures.