We offer for sale a residential complex in Houston, Texas consisting of 224 apartments with all necessary infrastructure, including gyms and swimming pools.
The cost of selling the complex is $ 19. 4 million.
All apartments in the complex are rented and at present the net operating annual leaves 7% per annum (cap rate).
The goal of the project is to take the complex into management for 72 months, increase the efficiency of activities by reducing the costs of maintaining the complex and gradually increasing the rent.
At the end of the project, it is planned to sell it for $ 25 million, while maintaining the level of annual returns within the range of 7. 15% (cap rate)

STEP 1: Acquisition of the complex
The acquisition price of the complex is $ 19,400,000
Closing costs: $ 1,615,000
Total: $ 21,015,000
Private investors of class A (a pool of investors is possible) - $ 3,500,000
"Private Money" Joint Venture loan - $ 2,500,000


STAGE 2: Sale of the complex after 5 years.
Calculation of profitability:
Sell Price: $ 25,022,735
Expenses for closing the transaction (commissions, services of lawyers): $ 750,682
The balance of the bank loan taking into account %%: $ 16,807,441
The balance of "private money" JV loan taking into account %%: 0
Return to Private Investors (Class A Investors): $ 3,500,000
Management fee $ 194,000
Total sales income: $ 3,770,609

Income of Investors of Class A: $ 2,639,426 * 75. 41%
$ 1,793,266 * 51. 24% (income on cash flow for 5 years, minus payments on loans and capital expenditures)
Total: $ 4,432,692 * 125,65%
The annual rate of return will be: 25. 33%