1. Investment Property Opportunity

2. Atlanta, GA 1155 Joseph E. Boone A.K.A. “Trafalgar Square”
An Incredible Opportunity…
BANK-OWNED REO PROPERTY
1155 Joseph E. Boone
A.K.A. “Trafalgar Square”
BANK TO OFFER BANK-DIRECT FUNDING ON 90% LTV
NO OFFER IS IN RIGHT NOW; LISTING AGENT WANTS A SUBMISSION

3. $684,000 Property Description
Lender Owned! Trafalgar Square is a 76 unit apartment community that provides an opportunity for a new owner to invest in physical and management improvements that will significantly increase the value of the property. The property is situated on 3.3 acres adjacent to the Atlanta Beltline, a multi-year, multi-million transportation and redevelopment corridor in central Atlanta.
Of the 76 units, 18 are one-bedroom units, 44 are two-bedroom, one bath units, and 14 are three-bedroom, one bath units.
The property features two-story buildings with pitched roofs and individual meters for gas and electrical service.
The lender is willing to consider providing seller-financing to a purchaser with rehabilitation funding.
Trafalgar Square offers a great opportunity for a creative investor seeking value in a strong rental market. Recently offered for $988,000, dropped to $760,000
$684,000

4. Renter Pool
Trafalgar Square is less than six miles from Georgia' s largest employer, Atlanta Hartsfield International Airport, which employs 56,000 people with an annual payroll of $2.4 billion, currently undergoing a $9 billion expansion.
Renters can also be drawn from Dobbins Air force Base, Lockheed Corp, Cobb County Government, Life University, Southern Polytechnic State University & Chattahoochee Technical College . Connects to Austell Rd & Cobb Pkwy which houses many national retail franchises.

5. Local Demographics
1155 Joseph E. Boone Boulevard backs up to the Beltline 51.5 acre Maddox Park, currently being expanded to include the City Operational facilities, and, a 10 acre privately owned asphalt plant. Maddox Park will connect to Grove Park and Westside Park through a greenway trail.
The Atlanta BeltLine is a $2.8 billion redevelopment project that will shape the way Atlanta grows throughout the next several decades. The project provides a network of public parks, multi-use trails and transit along a historic 22-mile railroad corridor circling downtown and connecting 45 neighborhoods directly to each other. The Atlanta BeltLine is the most comprehensive economic development effort ever undertaken in the City of Atlanta and among the largest, most wide-ranging urban redevelopment projects currently underway in the United States.
The Atlanta BeltLine is expected to generate more than $20 billion of new economic development throughout the 25 years of the Tax Allocation District and approximately 30,000 new jobs.

6. 9 Buildings

7. Unit Mix and Rental Proforma
18 $445/MO
44 $560/MO
14 $795/MO

8. Unit Mix 18 (1/1) + 44 (2/1) + 14 (3/1) = 76 Total Annual NOI/Unit
1/1 = $95, ($7,920)
2/1 = $295,680 ($24,640)
3/1 = $133,560 ($11,130)

9. Asking Price: $700,000 The Pros The Cons
$9,000 Per Unit…Comps Are Way BELOW $5,000 Per Unit!
The Pros
Bank-Direct Funding
90% LTV
5% Fixed Fully-Amortized Loan
Payments are Deferred to 80% Occupancy or 12-Months
“Light” Rehab
3/1s in Unit Mix
9 Buildings
Right in the Midst of the Atlanta Beltline Project
The Cons
Way Above Market Value
Comps Are at $3,000/Unit
Major Plumbing Problems
Some Units Need More Than “Light” Rehab
At the100% Board-Up Phase (Putting Property at “Damage” Risk)

10. Tax Assessment + Bankruptcy
Legal Stuff…
Last tax assessment shows property is worth $550,000
Property has been involved in a BK

11. Upside Bank Financing with INCREDIBLE TERMS! Financing Terms!
Several Offers Have Been Submitted!
Talked with Ernie (The Real Estate Agent); Seller (Bank) was “Serious” About My Offer! Offer for $730,000!
This Was More Than 1 Year Ago!
Now They Are Willing to Take Less!
Financing Terms!
5% Fixed Rate Fully Amortized Over 25 Years!
10% Cash Down or $68,400
Payments Deferred to 80% Occupancy or 1 Year

12. There is HUGE VALUE in Deferred Payments!
Can Work 100% Rehab Before 1st Payment is Due!
Can Bring in Cash Flow BEFORE 1st Payment is Due!
Out of 76 Units, Can Collect Rent on Up to 60 Units Before 1st Payment is Due!
Incredible Opportunity!

13. Cash Flow for Rehab Need 60 Leased Units Until Payments are Due!
Find leasing agent?
Rehab 1st Building with the MOST 3/1 Unit Mix. A 3/1 unit is worth about $750/mo in this area!
Each Building has about 8 units. Rehab the first building and your GOI is worth about $5,100. ($6000)
Expenses will be 35% on the GOI or $1,785. ($2100) So, $3,315 ($3,900) can be extracted from the property per month on the 1st building before debt service payments are due.
Total Rehab is estimated to be $10K per door, $760,000 adding
$7,600 per month to the debt service.

14. Debt Service to Include Rehab
Break-Down
Total asking price = $684,000
Down payment = $68,400
Total financed = $615,600
5% Fixed Fully Amortized 25-Year Mortgage = Annual Debt Service of $43, or $3, Monthly!
Our Offering Price = $266,000 ($3,500/door)
Down Payment = $26,600
Total Financed = 239,400
Annual Debt Service = $16,795, or $ /MO OR
Pay full cash for property for increased negotiating leverage!
Debt Service for Rehab Interest-Only Loan is $7,600 Per Month or $91,200 Annually

15. One Investor for Down Payment
$68,400 Needed for a HUGE Financial Upside!
Upon Full Lease-Up, Monthly GOI is Expected to Be $41,400 ($43,690) or ANNUALLY $496,000 ($524,480)
Annual Debt Service = $43,184.88
Annual Rehab Debt = $91,200
Annual Expenses = $173,880
Taxes = $15,000/Year
Total Annual Cash Flow = $261,030.88
$335,600 - $91,200 or $244, Or…$21, Per Month
$27,966 - $7,600 = $20,366

16. Value-Add Opportunity
Laundry Room
76 units doing an average of 3 loads of wash per week (conservative estimation)
$2.50 per load x
3 loads per week
76 units = $29,640 per year!
Negotiate service contract for $6000/yr = $23,640
Now have $268,040 annual and $22,336 per month!

17. The Split…
Partner 2
Partner 1
$11,168 Each

18. Now Do You See the Value?? Value of Bank-Direct Deferred Payments
Allows for Cash Flow Until 80% Occupancy or 60 Leased Units!
This Property is a CASH COW!
Does ANYONE See the Value for Putting in Only $68,400 for THIS Type of Monthly Cash Flow??

19. Gained Equity on Future Value
Currently in the Atlanta Market, an average C class building is valued between $24K to $30K per door.
This stabilized building, in today’s market - could realistically be valued at $1, to $2,280,000!
At a round number of $2,000,000 with a 1% annual increase, we are now looking at a value of:
Year 2 - $2,200,000
Year 3 - $2,420,000
Year 4 - $2,662,000
Year 5 - $2,928,200 ($38,529/door)
These are VERY
Conservative Estimations!
Future Value in 5 Years will
Likely Be MUCH MORE!

20. Cash Flow Earnings Over 5 years
We have previously determined our monthly cash flow, subtracting rehab loan and adding laundry funds, after 100% lease up starting in year two, to be:
$22,336
48 $22,366 = $1,072,128
Cash Flow + 5-Year Equity Gain=
$3,354,128!!!

21. About Us ~ Large portfolio of multi-family units nationwide
~ Experienced rehabilitation specialists from simple cosmetics to full gut to the studs, flood and fire damage repair
~Extensive management experience of MF units
ranging in size from 5 to 400 units.
~ Local presence with interest in, and the ability to purchase and stabilize multiple properties
~Yes, we can handle this project for you!