4.5 time your investment in 24 months on an employee housing development in an active oil/gas field with a sever housing shortage

Energy Property Holdings

North Dakota Employee Housing

Sourcing $13MM of cash investment for the project.

Modular Housing on one acre lots with detached oversized 2 car garage, rural water and septic systems
We offer 3 bedroom 2 bath modular homes 1,603 sq.ft. or 4 bedroom 2 bath 1,740sq. Ft homes
Retail sales price of 3 bedroom home $239,000.
Retail sales price of 4 bedroom home $259,000.

Net Profit to us is $100,000 per house sold.

We can build and sell 300 homes in 24 months.

If $13MM is raised by investors then the payout at 4.5 times investment is 58.5MM in 24 months.
This return is 225% ROI per year for two consecutive years.

We would need 600 homes built and sold to return $58,5MM.

300 of the homes would be in Williston. The other 300 homes would be in other Bakken Field markets:
Cities that we would consider are: Whatford City, Parshall, Tioga, Stanley, Berthold, Killdeer, etc.

Option for investors is to also authorize investment in mobile home parks. This would not change the dollar invested amount.
Mobile home parks would cost approximately $60,000 per home to build out.
Mobile home parks would gross $2,200 per month in rental gross revenue.
The Mobile home parks generate constant cash flow, but do not pay off the mortgage for years into the future.
Once built, we can get a refi from the state of North Dakota and participating bank to take residual balanced owed
spread that balance over 10 years allowing the investors to receive a monthly income while paying off the mortgage.

Reviewing the deal, investors get 4.5 times their investment. As an additional option if they wish they can
authorize the investment going into mobile home parks also. If so and on top of getting 4.5 times their investment
in 24 months, they can own 45% of the mobile home parks. That would effectively mean they get their 4.5 time
$13,000,000 back or $58,500,000 in 24 months and they would get 45% of the rent revenues from the park(s).

If a park had 100 homes installed and rented at $2,200/month with residents paying all utilities, we would have
insurance, maintenance, snow removal, rubbish removal etc as ongoing operating expenses. If the expenses
were 20% of the revenue a 100 home park would have 220,000 per month gross income.
A 20% average monthly operating expense would be $44,000.
That leaves $220,000 less $44,000 or a net balance of $176,000 to pay the refi 10 year mortgage and split the balance.
Assuming we had a 10 year $6MM mortgage the principal and interest would be $63,639 leaving $112,361 to split 45%/55%.
Investors putting in $13MM would receive approximately $50,562 per month after mortgage payment and overhead.
12 times $50,562 = $606,749 per annum in rental income.
The mobile homes are all electric and can be sold as used after they are depreciated and or if they are in poor shape.

We need a decision as to the dollar amount invested and if the investors wish to authorize mobile home parks as part of the project.

Please contact me for further Details. Sterling Anderson 314-655-8121

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