Borrw Deck

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Borrw is a company that buys distressed housing in the US.

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  • Borrw Deck

    1. 1. Borrw.comA p r i v a t e r e a l e s t a t e f u n d
    2. 2. US Median Home Prices 2006 to 2012
    3. 3. Problem 3.8 million foreclosures since 2008. Former homeowners need a place to live.Former homeowners want to buy a house again someday,and will not be able to get a traditional mortgage for 5-7 years.
    4. 4. The Model Purchase 1000 single family homes. Focus on distressed markets. Rent above market rates with lease options.Sell to tenants in 3-5 years with crowdfunded mortgages.
    5. 5. Markets we like East San Francisco Bay - Oakland, Vallejo, Fairfield Riverside, CA San Diego, CA Las Vegas, NV Phoenix, AZ Orlando, FL Why? These are major metropolitan areas that saw a spike inprices, and a corresponding crash. The fundamental qualities of these areas will keep them desirable for the long-term.
    6. 6. TeamJon SterlingA ten year veteran of the real estate industry, Jon has spent the majority of his career launching new real estate brokerages (duringthe boom), and repairing struggling brokerages (after the bust). He was most recently the Director of Marketing at AltosResearch, the leading provider of real-time real estate analytics in the US. He has published a book on distressed housing,regularly speaks at industry events, and has worked in eleven different real estate markets across the country. His in-depthknowledge of real estate economics and real estate investing was the catalyst for the launch of Borrw.Eric StegemannEric has been involved with the startup and ownership of six successful businesses, including the launch and eventual acquisitionof a 185 unit portfolio of residential real estate in the Greater St. Louis area. He is the founder of Tribus Group and speaks at realestate conferences on various topics, including real estate technology and marketing. Eric also serves on the National Associationof Realtors Federal Technology Policy Sub-Committee.Leo ParejaLeo Pareja and his team have sold more than $250 million in residential real estate and he was ranked the #1 Keller WilliamsRealty Agent is the US in 2010. He was also chosen as one of the 30 under 30 class of 2011 by Realtor Magazine and was rankedthe #5 team in US according to the Wall Street Journal in 2011. A licensed Broker since 2002 in Washington, D.C., Maryland andVirginia, Pareja is a high volume broker whose systems are built to minimize loss severity on clients portfolios while adhering to hisselling philosophy of having the shortest days in inventory.Greg MarkovGreg co-founded AZ Short Sale Experts, LLC, which was specializing in short sales before short sales became mainstream.Initially, the company was formed to help his own real estate operation, and his team now helps other agents looking to close shortsale transactions as well. Since 2006, Greg has helped close over 500 short sale transactions with dozens of different lenders allover the country. Prior to real estate, Greg worked in IT and helped take an educational software company from startup toacquisition.
    7. 7. Competition Waypoint Homes (recently raised $250MM)Carrington Mortgage Services (recently raised $450MM)Bank Of America (leasing foreclosures to former owners) HomeVestors Independent Real Estate Investors
    8. 8. Income Statement2012 2013 2014 2015 2016Revenue Rental Income $5,000,000 $10,200,000 $10,404,000 $10,612,080 $10,824,320 Mortgage Interest $0 $0 $0 TBD TBD Total Income $5,000,000 $10,200,000 $10,404,000 $10,612,080 $10,824,320Expenses Accounting $2,500 $2,500 $2,500 $2,500 $2,500 Legal $50,000 $100,000 $100,000 $100,000 $100,000 Licensing Fees $1,000 $1,000 $1,000 $1,000 $1,000 Maintenance $125,000 $250,000 $250,000 $250,000 $250,000 Payroll $50,000 $100,000 $100,000 $100,000 $100,000 Property Management $400,000 $816,000 $832,320 $848,966 $865,946 Rent - Office $0 $0 $0 $2,000 $2,000 Selling Expense $0 $0 $0 $0 $100,000 Taxes $500,000 $1,020,000 $1,040,400 $1,061,210 $1,082,430 Travel $18,000 $24,000 $24,000 $24,000 $24,000 Total Expense $1,176,500 $2,338,500 $2,355,220 $2,394,676 $2,582,876 Net Income $3,823,500 $7,861,500 $8,048,780 $8,217,404 $8,241,444 *Assumptions: $50MM in total property value and a 2% annual rental appreciation rate.
    9. 9. Balance Sheet 2012 2013 2014 2015 2016 Assets Cash & Cash Equivalents $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 Income Properties* $24,000,000 $49,000,000 $49,000,000 $49,000,000 $49,000,000 Total Assets $25,000,000 $50,000,000 $50,000,000 $50,000,000 $50,000,000 Liabilities Accounts Payable $0 $0 $0 $0 $0 Long Term Debt $0 $0 $0 $0 $0 Total Liabilities $0 $0 $0 $0 $0Members’ Equity Membership Units Sold 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 Management Units 300,000 300,000 300,000 300,000 300,000 Dividends at 95% -$3,632,325 -$7,468,425 -$7,646,341 -$7,806,534 -$7,829,372 Retained Earnings at 2% $76,470 $157,230 $160,976 $164,348 $164,829 Total Members’ Equity $76,470 $233,700 $394,676 $559,024 $723,853 *Assumes zero appreciation.
    10. 10. Other Metrics 2012 2013 2014 2015 2016 (half year)Total Units Outstanding 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 Earnings $3,823,500 $7,861,500 $8,048,780 $8,217,404 $8,368,965 Earnings Per Unit $0.38 $0.79 $0.80 $0.82 $0.82 Price Per Unit $5.00 $6.50 $7.00 $7.70 $8.44 Dividends $3,632,325 $7,468,425 $7,646,341 $7,806,534 $7,829,372 Dividends Per Unit $0.36 $0.75 $0.76 $0.78 $0.78Dividends Per Unit As % 0.72% 11.54% 10.86% 10.13% 9.24%
    11. 11. Contact InfoPlease direct all inquiries to Jon Sterling. jon@borrw.com 415-691-7268
    12. 12. Appendices andSupporting Information
    13. 13. Estimated Dividends At Future Values Assets$10MM $50MM $100MM $250MM $500MM $750MM $1B $200,000,000 $150,000,000 $100,000,000 $50,000,000 Dividends $0 *These are estimates, not earnings representations. Actual dividends may vary.
    14. 14. Foreclosure filings4,000,0003,000,0002,000,0001,000,000 0 Big Problem & Big Opportunity 2006 2007 2008 2009 2010 2011
    15. 15. Stats By Market Oakland, CA
    16. 16. Stats by market Vallejo, CA
    17. 17. Stats By Market Fairfield, CA
    18. 18. Stats By Market Riverside, CA
    19. 19. Stats By Market San Diego, CA
    20. 20. Stats By Market Las Vegas, NV
    21. 21. Stats By Market Phoenix, AZ
    22. 22. Stats By Market Orlando, FL
    23. 23. Sample Property #15219 Paradise Valley Drive, Las Vegas, NV Asking price: $40,500 Estimated value: $44,600 3 bedrooms/2.5 bathrooms Built in 2002 Estimated rental rate: $850/month Property taxes: $828/year Last sold August 2006 for $225,000 2006 cap rate: 4.5% 2012 cap rate: 23%
    24. 24. Sample Property #2 1011 W. Saint Kateri, Phoenix, AZ Asking price: $36,000 Estimated value: $39,300 3 bedrooms/2 bathrooms Built in 2003 Estimated rental rate: $860/month Property taxes: $885/year Last sold October 2007 for $170,000 2006 cap rate: 6% 2012 cap rate: 28%

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