Hello Michael and Naked Investor Members;
I trust everyone reading this offer is well and prospering. I am an active investor in British Columbia, Canada. The purpose of this email is to inform and invite your participation in this deal. Here are the details.
For the past 3 years I have been studying, learning and now investing in real estate in Canada. As of July 31st. I closed on a duplex in Kelowna, British Columbia that is a buy & hold. It is rented and has positive cash flow of $400/mo. The owners are an elderly couple, ready to retire in Alberta, who bought it for income and had no idea how to run the duplex as a business. After years of frustration, they were ready to just walk away. With my lawyers help, I provided them a way to do that by assuming their mortgage, transfer of beneficial interest, power of attorney and right of first refusal. Win-win for all.
The purpose of this email is to inform and invite your participation or that of someone who would be interested in getting a 5.82% return on their investment. Here are the details.
Currently, I live in a beautiful 3-bedroom, 3-baths, steps from the Fraser River, waterfront town home in the Fraserview area. The owners, Hong Kong Chinese, are elderly realtors and ready to retire (notice the theme!). We share the town home, and I pay a rent of $600.00/mo. (sweet!). Rents in the area are $1,000/mo and up. If you research the Fraserview area there is a wealth of development to take place over the next few years, making this area a ripe investment area. Romer's Burger Bar is at the foot of Kerr St. and we can meet for lunch and view the area and town home, at your convenience. Business trip to beautiful BC!!
Naked Investor members, I want to work with you to find THE IDEAL INVESTOR that is:(1) Hands-off, not involved in the day-to-day management/maintenance of the property, (2) Has the financial capital to do multiple deals, (3) Willing to allow their money to work 24-36 months, (4) Trust me with my investment strategy (Multifamily & single family homes) and decision-making, (5) Ask intelligent questions as a function of due diligence (I retain my real estate lawyer as my mentor & coach).
The investor/partner would buy the property and be on title with me on title only. Fellow Naked Investor members what is a return on residential property investments that your contacts would find attractive? Here in British Columbia, my lawyer says 5% is good! What say you? If you have investors that would be interested in this deal, we can close on it by mid September. I have all the information about the property, and over dinners the owners and I often talk about the town home and about them retiring and living in Las Vegas.
THE HOME: LIGHTHOUSE TERRACE
Rare one-of-a kind Feng Shui approved, a truly beautiful waterfront town home, steps away from the Fraser River through the backyard gate access. Frame-Wood, concrete foundation, 3 story, 3 bedrooms, 2.5 baths, ensuite w/soaker-tub, separate shower, stainless steel Miele dishwasher, Viking gas range, Frigidaire Professional Refrigerator, 1-piece granite kitchen countertop, wall-to-ceiling mirror in dining area, custom made California wood shutters on every window & door including the bathroom! Rose non-glare mirror in power room. Kitchen backsplash tile & inside mounted sink for easy cleaning, covered back porch/deck. Gated underground parking for 2 vehicles. Easy access to garage from inside the town home. Ample closet space. Walking trails, otters, mink, beavers, seals, eagles, cormorants, great blue herons, hummingbirds are a constant sight from numerous vantage points. Close to #100 Marpole Bus and Canada Line to YVR airport.
UPGRADES: $80K in-home upgrades including a new roof being installed now for entire strata $15,000. New Hot Water Tank in town home $650.00
Personally, I do not have the cash or credit to purchase this property now, and being the owner of a residential and commercial cleaning company that would not qualify in terms of income, an investor is ideal. I will need time, 2015, to get to where I can refinance the town home which will be a buy and hold exit strategy.
I will pay the monthly mortgage payment, taxes, Strata (which includes insurance).
I will rent out the 3 bedrooms at $1,100.00/month. I live in the town-home.
Tenants share the entire home with me.
I am responsible for all of the maintenance and repair-basically...investor just collects ROI!
I intend to have a free and clear Condo within 15 years plus a cash flow of Market rents.
I offer to keep a Quit Claim Deed in escrow if I default, say 60 days or more late, investor gets the property. No foreclosure required!
PURCHASE PRICE: $680,000.00
TAXES 2011: $$2,114.00/year
STRATA FEE & INSURANCE: $371.00/month
CMHC RULE: 20% down payment on $680,000= $136,000
PROPERTY TRANSFER TAX & CLOSING: 2% of purchase price= $13,600
INITIAL PURCHASE PRICE: $680,000
INITIAL CASH INVESTMENT: $136,000
INTEREST RATE: 3.12 FIVE YEARS FIXED
AMORTIZATION: 25 YEARS = $2,613.79
(ADDITIONAL potential INCOME):$50/mo parking fee, $40/mo residential cleaning=TOTAL $1,080/mo
POSITIVE CASH: $139.05
PURCHASE PRICE: $680,000
RENTAL INCOME: $3,300.00 x 12 months = $39,600.00
Net Operating Income: $39,600 /$680,000= 5.82% RATE
RETURN TO INVESTOR: $136,000 @ 5.82% annually= $7,915.12
I think that about does it. I look forward to discussing this with you, having you visit and most importantly, investing and making money.
Charles Boehm Hill
Property Magnet Real Estate Investors Inc