Download - 24 Wrenn Investor Presentation
Joint Venture Opportunity
Detached House in Bowmanville
Thomas [email protected]
3 Bedrooms , 2 Bath24 Wrenn Blvd, Bowmanville, ON
Kenneth Sam416-895-5337
The Project
• The Property is a detached 3 bdrm house in a very convienent location in Bowmanville.
• The house was originally listed for 225K. The carpet in the basement needs an upgrade with several rooms requiring a coat of paint.
• Offer is accepted to buy the property for 214K. The current closing is set for Nov 23rd 2009.
• We are planning to spend approx $5,000 to improve the property. After repair value is between $230K-$235K
• Already have a rent-to-own tenant, signed the Lease Option agreement. Tenant has already paid $5,000 towards the purchase deposit.
• Using the Lease Option program as the exit strategy, potential profit in 3 years will be approx $40K
LeaseToOwnToronto.com | 24 Wrenn Blvd
The Opportuniy
• Project Finder / Real Esate Experts Invest
o5% of Cash Investment ( $2,358 )oOver 50 Hours of Time and Expertise
• Cash Partners Investo95% of Cash Investment ($44,807)
• Split Profit 35-65 ( $14K - $26K)
LeaseToOwnToronto.com | 24 Wrenn Blvd
Key Features of the Property
• 2 Storey Detached Home - 3 Bdrm and 2 Bath
• Huge Private Yard with 2 Decks• Above Ground Pool !!• Fully Finished Basement• New Bathroom including Tub• Large Eat - In Kitchen• Long driveway /w 3-4 parking• Fenced Private Lot /w Garage
Access
LeaseToOwnToronto.com | 24 Wrenn Blvd
Profile of the Tenant
• A couple - soon to be married• He owns a Delivery Business whose clients include
Home Depot & Lowes.• Our lease option agreement is with Him. • His income is $80,000 per year• Credit Score is 580• Lease to Own program will help them save 10% to get
a good mortgage.• Signed the Lease with Option to Purchase Agreement.
Got $5,000 or them to confirm their participation in the Rent - To- Own Program. The total initial deposit for the tenant will be $7,300.
LeaseToOwnToronto.com | 24 Wrenn Blvd
Financial Assumptions
LeaseToOwnToronto.com | 24 Wrenn Blvd
Description of the property: 24 Wrenn Blvd - Bowmanville L1C4N3 Type of Property: Free Hold
Current Purchase Price: $214,000 Monthly Rental: $1,300
Land transfer taxOther Ont. City $1,865
Rehab cost/setup cost: $5,000
Closing legal fee $2,500 Avg. Annual Appreciation 4.7%
Assignment fee $5,000 Adjusted Cost base: $228,365
Annual property tax: $2,500
After Repair Market Value: $232,000
Annual Insurance: $600
Financing:
1st MortgageInitial Cash Investment $47,165
1st Mortgage Amount 80% $171,200 DCR(Free Hold) 1.12
Interest rate 4.5%
# of Amortization Years 30 2nd Mortgage RRSP 2nd Mortgage Amount $10,000 .85 2nd Mortgage Interest rate 14% Total Mortgage $181,200
Benefit to Lessee
LeaseToOwnToronto.com | 24 Wrenn Blvd
Lessee's Point of View:
3 Year Lease Opt.
Down Payment $7,300
Monthly Rent $1,248 Monthly Option
Premium $390
Monthly Condo Fee $100 Total Monthly
Payment $1,638
Addition Monthly Option Bonus $150
Additional money credited to Leasee's
downpayment at purchase
Purchase priceat the end of lease
term $ 266,274
Down payment credit at purchase $26,740
% Down available at the end of Lease 10%
Joint Venture – Profit 1
LeaseToOwnToronto.com | 24 Wrenn Blvd
Investor's Point of View:
Option Exercised: 3 Year Lease Opt.
Total Gross Income during Lease Term: $ 305,802
selling price + 36*(monthly rent - monthly option bonus)
Profit before Mortgage Payment: $ 68,137
gross income - adjusted cost base - 3*(property tax + insurance)
Net Profit after Mortgage Interest: $41,381
profit before mortgage payment - interest portion of mortgage payment
Average Annual Net Profit: $13,794
Joint Venture – Profit 2
LeaseToOwnToronto.com | 24 Wrenn Blvd
Option NOT Exercised: 3 Year Lease Opt.
Total Gross Income during Lease Term: $66,268
initial down payment + 36*(monthly rent + monthly option premium)
Profit before Mortgage Payment: $56,968
gross income - adjusted cost base - 3*(property tax + insurance)
Net Profit after Mortgage Interest: $30,212
profit before mortgage payment - interest portion of mortgage payment
Average Annual Net Profit: $10,071
(Note: Profit does not included the increase in property value)
Joint Venture – Return Analysis
LeaseToOwnToronto.com | 24 Wrenn Blvd
Joint Venture Analysis: % contributionInvestmen
t % Profit
Partner #1 (deal finder)Thomas & Bob 5% $2,358 35%
Partner #2Investors 95% $44,807 65%
Option Exercised: 3 Year Lease Opt.
Net Profit after Mortgage Interest:
$ 41,381
Partner #1 (deal finder)Profit $ 14,483 ROI 614%
Partner #2Profit $ 26,897 ROI 60%
Map of the Area
LeaseToOwnToronto.com | 24 Wrenn Blvd
Sample Pictures
LeaseToOwnToronto.com | 24 Wrenn Blvd