PMP 50% EQUITY DEAL - 96 UNIT APT IN WEST MEMPHIS, AR

We are looking for partner(s) wanting to be a part of this amazing opportunity.

BORROWER CONTEXT
– Borrower experience: how long has the borrower been in real estate? There are a total of 6 people in this deal including myself and we are all from Subto. We all have a collective experience of fix and flipping, wholesaling, rentals (STR/LTR), RV parks, TC, and hotel deals. We have a combined experience of 30+ years in the real estate business.
– What has the borrower been able to accomplish? Combine fix and flips 60+, wholesale 200+, comb rentals 40+, 30+ gator transactions, and LP in 300+ units
– What is the current situation of the deal? The 96 units are under contract right now and we are at the early stages of due diligence. The team has already walked the 96 units as of Dec 3. This property was purchased last year and the seller has agreed to do a Subto/seller financing hybrid deal. The seller has made improvements to the property already and is selling at cost due to bad blood in their partnership. The seller has also agreed to make repairs on the property within reason to get the property sold. Furthermore, the seller will be delivering the property at or above 90% occupancy. Here are the opportunities and value that we see we can add: – Improvement management and getting better reviews on Google so we can drive more traffic to the property. – There is an extra lot that is vacant where we could build another 8 to 10 units on the property. – We have boots on the ground that are connected to the city council, live 5 mins away, used to live at the property a few years ago, and have family still living there today.
– Why does the borrower need this money? We as a collective are looking to raise money and find a capital partner while we do all the operations and management of the property. We are willing to provide 10% payment in quarter, semi, or annual payments. Whatever you prefer.

DEAL DETAILS
– Deal Type: PMP – You could be a silent partner or an active partner depending on what you would like to do. There will be 4 general manager and property management places.
– Requested Loan Amount: $740k
– What will the funds be used for: Down payment, closing costs, and acquisition fee
– Lender Profit Amount/Payout Structure: Private money Lender will be a 50% equity partner in the deal and will be paid out 12% APR per year on the $740k.
– Net Cash flow: 240k – 250k
– 1st Position Lender: Walker & Dunlop
– Loan Origination date: Aug 22, 2022
– Underline Debt: $4,980,000
– APR: 5.29%
– Term: 240 months
– Amortization: 360 months; balance due at maturity.
– Terms and conditions: Non-recourse to the borrowers, 7 yr hybrid, interest payment for 24 months.
– Fix Rate Period: 84 Months then the loan will convert to a floating rate after the fixed rate period ends.

Seller Financing Terms and Conditions:
– Seller note: $970k Amortized 30 yrs remaining note from $1.470 mil
– Down Payment: $500k from $1.470 mil
– APR: Yr 1: 6%, Yr 2: 6.5%, Yr 3: 7%, Yr 4: 7.5% (sliding scale)
– Balloon Year: 4 and negotiable
– Deal Contingencies: 30 days due diligence however during our walkthrough there will be an extension to do the phase 1 inspection.
– Securities for the lender: New LLC Partnership w/ operating agreement with equity.
– Timeline (How long will the funds be out for?): for at least 4 years and a max of 5 years.

PROPERTY DETAILS
– Property Address: 301 Rainy Pass Rd, West Memphis, AR 72301
– Purchase Price: $6,550,000
– Units: 96
– Closing Date: Jan 17, 2024, most likely going to be pushed back due to diligence
– Photos/Video: https://drive.google.com/drive/u/0/folders/1LktSimAQNlgkbzEOdLOmROFlBKymVXbt
– Purchase Capital Rate: 10.89%
– What is the Exit: Cash flow then refi out on the balloon year
– Est Refi Cap Rate: 8.53%

If you’re interested in funding please let me know. Furthermore, we can jump on a Zoom call to get to know each other better and ask your questions so you can feel good about the deal.

https://drive.google.com/drive/u/0/folders/1_N-RG3WPkOLAi71c8KJnHnEpryflgDBy