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| U.S. Projects |
| US Commercial Rented premises |
Country: United States
Location: Various
Investment Required: $1,524,354 to $6,441,830
Term: Variable, leases vary from 12 to 15 years
Return: 7.35% to 7.65% depending on building
Development Name: 7 DaVita Dialysis Centres
Development Type: Commercial buildings with solid tenant and long leases. Being sold individually. 
Highlights
Corporate Guarantee from second largest dialysis company in the US ($ 5.26 Billion Sales / $ 1.73 Billion Net Worth)
Rare Absolute NNN leases- no management whatsoever
Historically recession proof business model – Health care spending growth has increased and outpaced GDP growth in all of the last six recession periods from 1961-2005
Annual CPI increases capped at 1.50%
Location |
Lease Term |
Purchase Price |
CAP Rate |
% Cash Flow Year 1* |
Wilmington, NC |
15 |
$ 6,441,830 |
7.65% |
9.88% |
Whiteville, NC |
12 |
$ 2,272,000 |
7.50% |
9.23% |
Shallotte, NC |
12 |
$ 1,524,354 |
7.35% |
8.55% |
Kenansville, NC |
12 |
$ 1,778,231 |
7.35% |
8.63% |
Burgaw, NC |
12 |
$ 1,524,354 |
8.55% |
8.55% |
Elizabethtown, NC |
12 |
$ 2,285,333 |
7.50% |
9.25% |
*with proposed financing |
Note:
In an Absolute NNN lease, the tenant pays for property taxes, insurance and maintenance in addition to the rent.
Most triple net properties are for a single tenant and are long term (5 yrs or more).This is considered a very desirable investment because the owner basically has no management or maintenance issues; they are the responsibility of the tenant.
More detail available on request.
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| Bank foreclosure Residential Units |
Country: United States
Location: Detroit, Michigan
Investment Required: $3,500,500 up to $21,000,000
Term: Variable
Return: 35% rental income guaranteed/year for 3 years. (Capital appreciation not included)
Development Name: Bank foreclosures
Development Type: Purchase, Renovation and rent back of Residential units
We pleased to offer this great opportunity to attain bulk property at greatly reduced prices, affordable refurbishment and a guaranteed 36 month lease from the local government.
We have acquired an REO package (bank foreclosures) of 600 units in Detroit, Michigan, and have worked with both local and national banks to get this project off the ground and available to our investors. With an affordable refurbishment in place and the guaranteed 36 month lease from the local government, the yield is about 40%.
From a letting standpoint, our agents have also met with government personnel that handle the rental market for the state assisted housing as well as the federal grants for families who would qualify for those programs. Currently there is a waiting list of 4500 families that need homes which will fit our program. The basic principles of the project are this:
1: To buy the foreclosed property at an average of USD $10,000 per unit. Buying this property at such a deep discount allows us to purchase them and pay off the city water sewer taxes. Some of the units will come in slightly less than our $10,000 budget.
2: To refurbish the units to the municipality’s acceptable style for municipal rental programs. The amount needed to bring these properties back to their value and get them back to the rent role condition is about $20,000.00 to $25,000.00
3: To enact a 36 month (3-year) lease with the municipal government for all the properties. The rents will range from $1,100 per calendar month for a 3-bed unit and $1,400 for a 4-bed unit. The government will pay 90-100% of the rent. This is conditional on current appraisals and if tenants do not pay their nominal share of the rent or the unit is damaged in any way, they are kicked out of the program, ensuring the units will be kept in good order.
We believe that there is a great market here as well as the surrounding towns to take advantage of the fall out in the mortgage industry to put people back in their homes as rentals.
We should be into each unit for no more than $35,000.00 with an average refurbished value of around $85,000.00 to $125,000.00. Current photos, specs, acquisition cost and market value on all units are available. Although there are 600 units available, investors may opt to purchase in tranches of 100. At the end of three years, with the guaranteed rent provided, the investor will own his entire portfolio free and clear – with additional cash in his pocket.
Number of Units: |
200 |
400 |
600 |
Cost: |
2,000,000 |
4,000,000 |
6,000,000 |
Cost Refurbishment: |
5,000,000 |
10,000,000 |
15,000,000 |
Total Cost: |
7,000,000 |
14,000,000 |
21,000,000 |
Average Rent: |
1,250 |
1,250 |
1,250 |
Rent 36 Months: |
9,000,000 |
18,000,000 |
27,000,000 |
More detail available on request.
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