Presenting Real Estate Investment Numbers to J.V. Partners

Loading...

Flash Player 9 (or above) is needed to view presentations.
We have detected that you do not have it on your computer. To install it, go here.

1 comments

Comments 1 - 1 of 1 previous next Post a comment

  • + guest7be184 guest7be184 7 months ago
    It is a nice & simple presentation and cover almost 85% of real case.
Post a comment
Embed Video
Edit your comment Cancel

Favorites, Groups & Events

Presenting Real Estate Investment Numbers to J.V. Partners - Presentation Transcript

  1. Presenting Real Estate Investment Numbers to J.V. Partners What my slide deck looks like (with a little bit of explanation) ChrisDavies.ca
  2. Purchase $190,000.00 Down Payment $19,000 Legal Fees $ 1,000 Reserve Fund $ 4,500 Title Insurance $ 1,000 Insurance $ 1,000 Assessment $ 3,300 Cash to Close $29,800
  3. Purchase $190,000.00 Down Payment $19,000 Legal Fees $ 1,000 Reserve Fund $ 4,500 Title Insurance $ 1,000 Insurance $ 1,000 Assessment $ 3,300 Cash to Close $29,800 Plus Renovations $25,000 (that’s $54,800 in total)
  4. Purchase $190,000.00 Down Payment $19,000 Legal Fees $ 1,000 Reserve Fund $ 4,500 Title Insurance $ 1,000 Insurance $ 1,000 Assessment $ 3,300 Cash to Close $29,800 Plus Renovations $25,000 (that’s $54,800 in total)
  5. Purchase $190,000.00 Down Payment $19,000 Legal Fees $ 1,000 Reserve Fund $ 4,500 Title Insurance $ 1,000 Insurance $ 1,000 Assessment $ 3,300 Cash to Close $29,800 Plus Renovations $25,000 (that’s $54,800 in total)
  6. Purchase $190,000.00 Renovations $25,000 Appraised Value After Renovations: $250,000
  7. A Warning About These Numbers: Renovation Costs are estimates. In reality (Aug/08), the actual cost was $25,323.34. Renovation costs can change rapidly, and $25,000 is an estimate only.
  8. A Warning About These Numbers: The analysis beyond this point is based on a few rules, and is an projection and estimate only. All calculations are simple, rather than compound. NEVER use these as anything but an estimation, a best guess, or a projection. Do your own homework!
  9. Cash Flow Analysis Income Rent $1,500.00 Expenses Property Mgmt (8%) $ 120.00 Condo Fees $ 255.00 Property Taxes $ 88.00 Vacancy (4%) $ 60.00 Repairs & Maint (4%) $ 60.00 Mortgage (4.5%, I Only) $ 671.71 Total Expense $1,254.71 Net (Monthly): $ 245.29
  10.  
  11. Annual and Total Positive Cash Flow Annual Total Year 1 $2,943.49 $2,943.49 Year 2 $3,643.69 $6,587.18 Year 3 $4,288.90 $10,876.07 Year 4 $4,966.37 $15,842.44 Year 5 $5,677.71 $21,520.15
  12. Appreciation Model: Estimated 5% per Year for Five Years Value at Purchase $250,000.00 Estimated Value 2013 $312,500.00 Mortgage Outstanding $179,122.50 Appreciation $133,377.50 Cash Flow $21,520.15 Estimated Gross Profit $154,897.65
  13. Gross Profit $154,897.65 Investment Returned $54,800.00 Net Profit $100,097.65 Split 50/50 $50,048.83
  14. Investment $54,800.00 Estimated Return $50,048.83 Return on Investment 91% (Five Years) 18% Per Year
  15. Investment $54,800.00 Cost of Borrowing $13,700 $54,800 for five years at 5%.
  16. Investment $54,800.00 So instead of costing you $54,800 in cash, it can actually cost you $13,700.
  17. Investment $54,800 $13,700
  18. Investment $54,800 $13,700 That’s like getting a real estate investment on sale for 75% off! You could buy 4 properties for the same amount of cash. Assuming you can borrow $250,000 (or so) for the down payments, closing costs, and renovations. And find 4 properties just like this one.
  19. Investment $54,800 $13,700 But the real point is:
  20. Investment $54,800 $13,700 Estimated Return $50,048.83 Return on Investment 365% (Five Years) 73% (Per Year)
  21. Investment $13,700 Estimated Return $50,048.83 Return on Investment 365% (Five Years) 73% Per Year You find me a stock or mutual fund that will do 73% a year on the conservative side.
  22. Investment $13,700 Estimated Return $50,048.83 Return on Investment 365% (Five Years) 73% Per Year This projection uses 5% per year as an estimated increase in property values. The average in Edmonton since 1962 is 7.91% per year. Imagine what one year with a 10% increase would do….
    • Basic Rules of This Presentation:
    • This presentation, as well as the calculations, estimations and projections contained within it, have been created for the purpose of communicating the way I present information, and not the information itself.
    • Projections are calculated using simple math, and not compounded.
    • Every reasonable effort has been made to make accurate calculations. I am not immune to making mistakes when playing with rather large spreadsheets. The numbers and the estimated rates of change are not to be taken as a guarantee or promise of return. All real estate investments are speculative and you MUST do you own due diligence.
    • This is not a solicitation. This presentation is only for information purposes, intended to illustrate how I communicate.
    • Please see my Legal Disclaimer .
  23. Credits: From Stock Exchange (click to link) Taken by me, circa August 2005. For more real estate investor resources, check out my Real Estate and Property Management Blog

+ Chris DaviesChris Davies, 2 years ago

custom

926 views, 0 favs, 2 embeds more stats

A sample slide deck to help me teach people how to more

More info about this document

© All Rights Reserved

Go to text version

  • Total Views 926
    • 872 on SlideShare
    • 54 from embeds
  • Comments 1
  • Favorites 0
  • Downloads 15
Most viewed embeds
  • 47 views on http://www.chrisdavies.ca
  • 7 views on http://feeds.feedburner.com

more

All embeds
  • 47 views on http://www.chrisdavies.ca
  • 7 views on http://feeds.feedburner.com

less

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate. If needed, use the feedback form to let us know more details.

Cancel
File a copyright complaint
Having problems? Go to our helpdesk?

Categories