Investment Overview
We are excited to present a new investment opportunity in Lake Travis. This project offers excellent potential for growth and significant returns.
- Capital Partners will receive 65% of the cash flow from the property during the hold period, as well as 65% of the sale profits.
- The Sponsor Team will receive 35% of the cash flow and 35% of the sale profits.
- Additionally, the Sponsor Team will receive a one-time 2% acquisition fee and a 5% property management fee
We already own a nearby park less than a mile away, and acquiring this new portfolio will give us significant influence over rental rates in the local market.
Please note no other fees will be charged by the Sponsor Team.
Equity funds are due by October 15th, 2024.
Debt Structure
- Initial debt will be through a seller-financed note of $3,675,000 (70% of the purchase price).
- The seller has agreed to hold the note for 3 years at a 5% interest rate, with interest-only payments throughout the hold period.
The anticipated closing date is November 1st, 2024.
Key Financial Metrics
- Hold Period: 3 years
- Equity Multiple: 1.62x
- Total ROI: 61.95%
- Average CoC Return: 8.55%
- Annualized Return: 20.98%
- IRR: 18.39%
Purchase and Equity Details
- Purchase Price: $5,250,000
- Total Equity Requirement: $2,365,000
- Down Payment: $1,575,000
- Operating Capital & Reserves: $31,500
- Closing Costs & Fees: $160,500
- Renovation Budget: $598,000
Next Steps
We are confident that this opportunity will generate substantial returns and strengthen our market position. Should you have any questions or wish to further discuss the investment details, please don’t hesitate to contact anyone on our team. We appreciate your ongoing partnership and look forward to achieving great success together.
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