02/22/2024
Each month we are providing a case study for value created for our clients!
January we shared a great case study.. this month, we have another solid outcome to share!
Case Study #3 - Equity, Equity, Equity!!
We have an asset that we have stabilized in 2.5 yrs. Our in house team renovated, created forced appreciation, and aligned rents with market conditions. At take over this deal appraised at $787k, client purchased the deal at $560k. With under budget capital injection, rents brought to market rates, and placement of qualified residents this asset is ready to go to market at a 7% cap rate! With the stabilized NOI cranking out $101,740.00/year at the current market cap of 7%, the asset demands a value of $1,452,957 for our client! šš š® š¤Æ
Read the numbers one more time⦠thatās a massive return produced by our asset management team! We will let you do the math and comment below on the actual ROI. How well have we served our client in the past 2.5yrs!?
Hereās the breakdown:
- Total Capital to buy the deal - 20% down payment on the $560k purchase price is ($112,000)
- Total CapEx injection for renovations ($168,000)
- Asset NOI $101,740/yr.
- Market cap rate is 7%
Whatās the clientās return if the asset trades at a $1.4M exit?
Comment below!
If you are interested in doing deals like this, come sit down with us and letās talk! We have many no BS examples and REAL clients that we are responsible to produce positive results for.