STRATEGIES WE ARE WORKING ON.
Flip •
Purchase, Rehab and sell residential Property.
Hold (BRRRR •
Purchase, rehab and hold multi-unit residential Property.
Multifamily BRRRR.
Buy – Rehab – Rent – Refinance – Repeat
Hypothetical example:
Purchase price: $240k
Cap rate: 6%
Rehab: $100k
Holding cost and fees: $30k
Total Project cost: $370K
ARV: $500k
Cap rate: 12%
Refinance cash pull out 70%: $350k
Est. Investment after refinance: $20K
Est. Equity in the property after refinance: ~$130k
Benefits of Multifamily BRRRR.
- Rolling Investment
- Somewhat Recession proof
- Long term investment
- Equity build up
- Increases Cashflow
- Scaling units (2+4+8+16+32+64+128=?)
“5 Year Investment Plan “Road to 10M”
Year 1 and 2
60% residential flip
30% residential + Commercial (5+Units) BRRRR.
10% other (Invest in public REIT, Land, or other projects)
Year 3 and 4
30% residential flip
60% residential + Commercial (5+Units) BRRRR.
10% other (Invest in public REIT, Land, or other projects)
Year 5
20% residential flip
65% residential + Commercial (5+Units) BRRRR.
15% other (Invest in public REIT, Land, or other projects)
How can we fund projects?
• Increase shareholders
• Cash out refinance
• Rental Income
• X Profit from fix and flip projects
• Bank Loan
• Public partnership program Increase shareholders
• Recurring collection from shareholders
Public Partnership Program
• NREDFC will Invest 51% in a project.
• Remaining 49% investment will be opened for shareholders.
• Profits to be disbursed immediately at the end of the project.