72-sp sun terrace mhp for sale -...

Benny Spensieri

813-391-1545

[email protected]

Clearwater, FL 33760

Gross Revenue = 508K NOI = $305K 10% Cap Rate

Presented by

CRES Corp International, LLC1228 E 7th Ave

Minutes from Down Town, Clearwater Beach and International Airport

City Water & Sewer

Tampa, Fl 33605

70-sp MHP plus 2 Apartments

72-sp Sun Terrace MHP For Sale

5860 150th Ave N

Potential Rental Income 517,000$ Purchase/Asking Price 3,200,000$ Property Type Mobile Home Parks

Other Income - Improvements - No. of Units 71

Total Vacancy and Credits (25,850) Other - Price Per Unit 45,070$

Operating Expenses (186,148)$ Closing Costs - Total Sq Ft 1,000

Annual Reserves: $ Finance Points - Price Per Sq Ft 3,200$

Net Operating Income (NOI) 305,002$ Income per Unit 7,282$

MIP Payments $ Total Acquisition Cost 3,200,000$ Expenses per Unit (2,622)$

Annual Reserves: $ Debt Service: (157,138)$

Mortgage (s) 2,240,000$

Cash Flow Before Taxes 147,864$

- Down Payment / Investment 960,000$

Cash Flow After Taxes 147,864$

% of Asking % of Cost

Rental Growth Rate: 3.00% Down Payment: 960,000$ 30.00% 30.00%

Expense Growth Rate: 3.00% Initial Loan Balance: 2,240,000$ 70.00% 70.00%

Capitalization Rate (Resale): 10.00%

Marginal Tax Rate: 0.00% Loan Amount Interest Rate Term Payment

Capital Gain Tax Rate: 0.00% 2,240,000$ 5.00% 25 $13,095

$ 8.00% 30 $0

$ 8.00% 30 $0

Year 1 Year 3 Year 7

Debt Coverage Ratio (DCR) 1.94 2.06 2.32

Loan-to-Value Ratio (LVR) 71.9% 64.7% 51.1%

Capitalization Rate Based on Cost 9.53% 10.11% 11.38%

Capitalization Rate Based on Resale Price 10.00% 10.00% 10.00%

Gross Rent Multiplier 6.19 5.90 5.90

13.50% (75,356) 186,726 521,463

10.00% (47,208) 286,887 795,308

Cash on Cash Return - Before Taxes 15.40% 17.34% 21.57%

Cash on Cash Return - After Taxes 15.40% 17.34% 21.57%

Internal Rate of Return - Before Taxes 21.37% 23.51%

Internal Rate of Return - After Taxes 21.37% 23.51%

18.88% 17.77%

18.88% 17.77%

Disclaimer: All information presented is believed to be accurate.

Benny Spensieri

CRES Corp International, LLC

813-391-1545

Property Overview


5860 150th Ave N


Income, Expenses & Cash Flow

Income Taxes: Benefit (Expense) @ 0%

Financial Measurements Notes / Discussion

Loan InformationAssumptions

The information, calculations and data presented in this report are believed to be accurate but are not guaranteed. The information contained in this report shall not be considered as

a substitution for legal, accounting or other professional advice. Please seek proper legal and tax advice as appropriate before making investments.

Modified Internal Rate of Return - Before Taxes

Modified Internal Rate of Return - After Taxes

Net Present Value (NPV) - B/ Taxes

Net Present Value (NPV) - A/Taxes

Benny Spensieri

813-391-1545

[email protected]

Property Description

City Water & Sewer

Close to Beach & Down Town Area

70-spaces + 2 Apartments

63 Park Owned Homes

$305K NOI

94% Occupied


5860 150th Ave N


HIGHLIGHTS

0

1228 E 7th Ave


Tampa, Fl 33605

The Sun Terrace MHP is located just minutes from Clearwater

Beach and the Down Town area. This park consists of:

-70-space

-63 Park Owned Homes

-1- 2-unit Apartment

-Family Park

-City Water & Sewer (Submetered)

-94% Occupied

-GR = $508K

-NOI = $305K

Property also includes a Laundry Building (not currently used),

Office, Recreation Building (not currently being used) and a

maintenance building.

Rents collected average $602 (Apartments), $253 (Lot Rent),

$463 (Single Wide Units), $835 (Double-wide Units).

Current rents are well below market. The owner has incorporated

a 7% increase in rents for new tenants but has not increased the

rents for the long tern tenants.

Asking Price: $3,200,000

Feel free to contact me for further information.


5860 150th Ave N


Potential Rental Income 517,000$ 532,510$ 548,485$ 564,940$ 581,888$

Less: Vacancy & Credit Losses (25,850) (26,626) (27,424) (28,247) (29,094)

Effective Gross Income 491,150$ 505,885$ 521,061$ 536,693$ 552,794$

Less: Operating Expenses (186,148) (191,732) (197,484) (203,409) (209,511)

Net Operating Income (NOI) 305,002$ 314,152$ 323,577$ 333,284$ 343,282$

Less: Annual Debt Service (157,138) (157,138) (157,138) (157,138) (157,138)

CASH FLOW Before Taxes 147,864$ 157,014$ 166,439$ 176,146$ 186,145$

Projected Sales Price 3,050,020$ 3,141,521$ 3,235,766$ 3,332,839$ 3,432,824$

Less: Selling Expenses - - - - -

Adjusted Projected Sales Price 3,050,020$ 3,141,521$ 3,235,766$ 3,332,839$ 3,432,824$

Less: Mortgage(s) Balance Payoff (2,193,813) (2,145,263) (2,094,230) (2,040,585) (1,984,196)

SALE PROCEEDS Before Taxes 856,207$ 996,257$ 1,141,536$ 1,292,254$ 1,448,628$

Cash Generated in Current Year 147,864$ 157,014$ 166,439$ 176,146$ 186,145$

Cash Generated in Previous Years n/a 147,864 304,878 471,317 647,463

Cash Generated from Property Sale 856,207 996,257 1,141,536 1,292,254 1,448,628

Original Initial Investment (960,000) (960,000) (960,000) (960,000) (960,000)

44,071$ 341,136$ 652,854$ 979,717$ 1,322,236$

Debt Coverage Ratio (DCR) 1.94 2.00 2.06 2.12 2.18

Loan-to-Value Ratio (LVR) 71.9% 68.3% 64.7% 61.2% 57.8%

Capitalization Rate Based on Cost 9.53% 9.82% 10.11% 10.42% 10.73%

Capitalization Rate Based on Resale Price 10.00% 10.00% 10.00% 10.00% 10.00%

Gross Rent Monthly Multiplier (GRM) 74.27 70.79 70.79 70.79 70.79

Gross Rent Yearly Multiplier (GRM) 6.19 5.90 5.90 5.90 5.90

Value of Property Using this GRM 6.00 3,102,000 3,195,060 3,290,912 3,389,639 3,491,328

Break-Even Ratio 66.40% 65.51% 64.65% 63.82% 63.01%

Operating Expense Ratio 37.90% 37.90% 37.90% 37.90% 37.90%

Cash-on-Cash Return with Equity 4.59% 34.70% 31.29% 28.63% 26.51%

Cash-on-Cash Return - Before Taxes 15.40% 16.36% 17.34% 18.35% 19.39%

Year 2 Year 3

Financial Measurements

Year 4 Year 5

Cash Position

Rental Activity Analysis

Total Potential CASH Generated

Property Resale Analysis

Year 1

Benny Spensieri

813-391-1545

2/20/2018 1:29 PM © 1993 - 2014 Cash Flow Analyzer® http://RentalSoftware.com


5860 150th Ave N


Potential Rental Income

Less: Vacancy & Credit Losses

Effective Gross Income

Less: Operating Expenses

Net Operating Income (NOI)

Less: Annual Debt Service

CASH FLOW Before Taxes

Projected Sales Price

Less: Selling Expenses

Adjusted Projected Sales Price

Less: Mortgage(s) Balance Payoff

SALE PROCEEDS Before Taxes

Cash Generated in Current Year

Cash Generated in Previous Years

Cash Generated from Property Sale

Original Initial Investment

Debt Coverage Ratio (DCR)

Loan-to-Value Ratio (LVR)

Capitalization Rate Based on Cost

Capitalization Rate Based on Resale Price

Gross Rent Monthly Multiplier (GRM)

Gross Rent Yearly Multiplier (GRM)

Value of Property Using this GRM 6.00

Break-Even Ratio

Operating Expense Ratio

Cash-on-Cash Return with Equity

Cash-on-Cash Return - Before Taxes

Financial Measurements

Cash Position

Rental Activity Analysis

Total Potential CASH Generated

Property Resale Analysis

599,345$ 617,325$ 635,845$ 654,920$ 674,568$

(29,967) (30,866) (31,792) (32,746) (33,728)

569,377$ 586,459$ 604,053$ 622,174$ 640,839$

(215,797) (222,270) (228,939) (235,807) (242,881)

353,581$ 364,188$ 375,114$ 386,367$ 397,958$

(157,138) (157,138) (157,138) (157,138) (157,138)

196,443$ 207,051$ 217,976$ 229,230$ 240,821$

3,535,809$ 3,641,883$ 3,751,140$ 3,863,674$ 3,979,584$

- - - - -

3,535,809$ 3,641,883$ 3,751,140$ 3,863,674$ 3,979,584$

(1,924,922) (1,862,615) (1,797,121) (1,728,275) (1,655,908)

1,610,887$ 1,779,268$ 1,954,019$ 2,135,399$ 2,323,677$

196,443$ 207,051$ 217,976$ 229,230$ 240,821$

833,608 1,030,051 1,237,102 1,455,078 1,684,307

1,610,887 1,779,268 1,954,019 2,135,399 2,323,677

(960,000) (960,000) (960,000) (960,000) (960,000)

1,680,938$ 2,056,370$ 2,449,097$ 2,859,706$ 3,288,805$

2.25 2.32 2.39 2.46 2.53

54.4% 51.1% 47.9% 44.7% 41.6%

11.05% 11.38% 11.72% 12.07% 12.44%

10.00% 10.00% 10.00% 10.00% 10.00%

70.79 70.79 70.79 70.79 70.79

5.90 5.90 5.90 5.90 5.90

3,596,068 3,703,950 3,815,069 3,929,521 4,047,406

62.22% 61.46% 60.72% 60.00% 59.30%

37.90% 37.90% 37.90% 37.90% 37.90%

24.76% 23.31% 22.07% 21.01% 20.09%

20.46% 21.57% 22.71% 23.88% 25.09%

Year 9

Benny Spensieri

813-391-1545

Year 6 Year 7 Year 10Year 8

2/20/2018 1:29 PM © 1993 - 2014 Cash Flow Analyzer® http://RentalSoftware.com


5860 150th Ave N


% of % of

Expenses Revenue

2,575 3.0% 36.27 2.58 1.4% 0.5%

3,850 3.0% 54.23 3.85 2.1% 0.8%

6,050 3.0% 85.21 6.05 3.3% 1.2%

28,070 3.0% 395.35 28.07 15.1% 5.7%

2,559 3.0% 36.04 2.56 1.4% 0.5%

31,139 3.0% 438.58 31.14 16.7% 6.3%

26,226 3.0% 369.38 26.23 14.1% 5.3%

7,560 3.0% 106.48 7.56 4.1% 1.5%

36,759 3.0% 517.73 36.76 19.7% 7.5%

31,360 3.0% 441.69 31.36 16.8% 6.4%

10,000 3.0% 140.85 10.00 5.4% 2.0%

186,148$ 2,622$ 1,000 100.0% 37.9%

Benny Spensieri

813-391-1545

Per Sq Ft

Cleaning

Annual

Amount

Annual

Increase

Insurance

Landscaping

Property Taxes

Payroll

Total Annual Operating Expenses

Trash Removal

Miscellaneous

Electricity

Per Unit

Supplies

Water/Sewer

Expense Description

Professional Fees

Annual Property Operating Data72-sp Sun Terrace MHP For Sale

5860 150th Ave N

Clearwater, FL 33760 Benny Spensieri

Column 1 813-391-1545

Column 2

Year 1 Sq Ft Per Unit Year 2 Sq Ft Per Unit Year 3 Sq Ft Per Unit Year 4 Sq Ft Per Unit Year 5 Sq Ft Per Unit

Potential Rental Income 517,000$ 43.08 606.81 532,510$ 44.38 625.01 548,485$ 45.71 643.76 564,940$ 47.08 663.07 581,888$ 48.49 682.97

Less: Vacancy & Credit Losses (25,850) -2.15 -30.34 (26,626) -2.22 -31.25 (27,424) -2.29 -32.19 (28,247) -2.35 -33.15 (29,094) -2.42 -34.15

491,150$ 40.93 576.47 505,885$ 42.16 593.76 521,061$ 43.42 611.57 536,693$ 44.72 629.92 552,794$ 46.07 648.82

Cleaning 2,575 0.21 3.02 2,652 0.22 3.11 2,732 0.23 3.21 2,814 0.23 3.30 2,898 0.24 3.40

Insurance 3,850 0.32 4.52 3,966 0.33 4.65 4,084 0.34 4.79 4,207 0.35 4.94 4,333 0.36 5.09

Landscaping 6,050 0.50 7.10 6,232 0.52 7.31 6,418 0.53 7.53 6,611 0.55 7.76 6,809 0.57 7.99

Payroll 28,070 2.34 32.95 28,912 2.41 33.93 29,779 2.48 34.95 30,673 2.56 36.00 31,593 2.63 37.08

Professional Fees 2,559 0.21 3.00 2,636 0.22 3.09 2,715 0.23 3.19 2,796 0.23 3.28 2,880 0.24 3.38

Supplies 31,139 2.59 36.55 32,073 2.67 37.64 33,035 2.75 38.77 34,026 2.84 39.94 35,047 2.92 41.14

Property Taxes 26,226 2.19 30.78 27,013 2.25 31.71 27,823 2.32 32.66 28,658 2.39 33.64 29,518 2.46 34.65

Trash Removal 7,560 0.63 8.87 7,787 0.65 9.14 8,020 0.67 9.41 8,261 0.69 9.70 8,509 0.71 9.99

Electricity 36,759 3.06 43.14 37,862 3.16 44.44 38,998 3.25 45.77 40,168 3.35 47.15 41,373 3.45 48.56

Water/Sewer 31,360 2.61 36.81 32,301 2.69 37.91 33,270 2.77 39.05 34,268 2.86 40.22 35,296 2.94 41.43

Miscellaneous 10,000 0.83 11.74 10,300 0.86 12.09 10,609 0.88 12.45 10,927 0.91 12.83 11,255 0.94 13.21

186,148$ 15.51 218.48 191,732$ 15.98 225.04 197,484$ 16.46 231.79 203,409$ 16.95 238.74 209,511$ 17.46 245.91

305,002$ 25.42 357.98 314,152$ 26.18 368.72 323,577$ 26.96 379.78 333,284$ 27.77 391.18 343,282$ 28.61 402.91

Less: Annual Debt Service (157,138) -13.09 -184.43 (157,138) -13.09 -184.43 (157,138) -13.09 -184.43 (157,138) -13.09 -184.43 (157,138) -13.09 -184.43

Cash Flow Before Taxes 147,864$ 12.32 173.55 157,014$ 13.08 184.29 166,439$ 13.87 195.35 176,146$ 14.68 206.74 186,145$ 15.51 218.48


Total Operating Expenses

Operating Expenses


© 1993 - 2014 Cash Flow Analyzer® http://RentalSoftware.com

Annual Property Operating Data72-sp Sun Terrace MHP For Sale

5860 150th Ave N


Column 1

Column 2

Potential Rental Income

Less: Vacancy & Credit Losses

Cleaning

Insurance

Landscaping

Payroll

Professional Fees

Supplies

Property Taxes

Trash Removal

Electricity

Water/Sewer

Miscellaneous

Less: Annual Debt Service

Cash Flow Before Taxes


Total Operating Expenses

Operating Expenses


Benny Spensieri

813-391-1545

Year 6 Sq Ft Per Unit Year 7 Sq Ft Per Unit Year 8 Sq Ft Per Unit Year 9 Sq Ft Per Unit Year 10 Sq Ft Per Unit

599,345$ 49.95 703.46 617,325$ 51.44 724.56 635,845$ 52.99 746.30 654,920$ 54.58 768.69 674,568$ 56.21 791.75

(29,967) -2.50 -35.17 (30,866) -2.57 -36.23 (31,792) -2.65 -37.31 (32,746) -2.73 -38.43 (33,728) -2.81 -39.59

569,377$ 47.45 668.28 586,459$ 48.87 688.33 604,053$ 50.34 708.98 622,174$ 51.85 730.25 640,839$ 53.40 752.16

2,985 0.25 3.50 3,075 0.26 3.61 3,167 0.26 3.72 3,262 0.27 3.83 3,360 0.28 3.94

4,463 0.37 5.24 4,597 0.38 5.40 4,735 0.39 5.56 4,877 0.41 5.72 5,023 0.42 5.90

7,014 0.58 8.23 7,224 0.60 8.48 7,441 0.62 8.73 7,664 0.64 9.00 7,894 0.66 9.27

32,541 2.71 38.19 33,517 2.79 39.34 34,523 2.88 40.52 35,558 2.96 41.74 36,625 3.05 42.99

2,967 0.25 3.48 3,056 0.25 3.59 3,147 0.26 3.69 3,242 0.27 3.80 3,339 0.28 3.92

36,099 3.01 42.37 37,182 3.10 43.64 38,297 3.19 44.95 39,446 3.29 46.30 40,629 3.39 47.69

30,403 2.53 35.68 31,315 2.61 36.75 32,255 2.69 37.86 33,222 2.77 38.99 34,219 2.85 40.16

8,764 0.73 10.29 9,027 0.75 10.60 9,298 0.77 10.91 9,577 0.80 11.24 9,864 0.82 11.58

42,614 3.55 50.02 43,892 3.66 51.52 45,209 3.77 53.06 46,565 3.88 54.65 47,962 4.00 56.29

36,355 3.03 42.67 37,445 3.12 43.95 38,569 3.21 45.27 39,726 3.31 46.63 40,918 3.41 48.03

11,593 0.97 13.61 11,941 1.00 14.01 12,299 1.02 14.44 12,668 1.06 14.87 13,048 1.09 15.31

215,797$ 17.98 253.28 222,270$ 18.52 260.88 228,939$ 19.08 268.71 235,807$ 19.65 276.77 242,881$ 20.24 285.07

353,581$ 29.47 415.00 364,188$ 30.35 427.45 375,114$ 31.26 440.27 386,367$ 32.20 453.48 397,958$ 33.16 467.09

(157,138) -13.09 -184.43 (157,138) -13.09 -184.43 (157,138) -13.09 -184.43 (157,138) -13.09 -184.43 (157,138) -13.09 -184.43

196,443$ 16.37 230.57 207,051$ 17.25 243.02 217,976$ 18.16 255.84 229,230$ 19.10 269.05 240,821$ 20.07 282.65



Benny Spensieri

813-391-1545

Time Net Operating Debt Cash Flow Incomes Cash Flow

Period Income Service Before Tax Taxes After Tax

Int Investment (960,000)$ (960,000)$

Year 1 305,002 - (157,138) 147,864 - 147,864

Year 2 314,152 - (157,138) 157,014 - 157,014

Year 3 323,577 - (157,138) 166,439 - 166,439

Year 4 333,284 - (157,138) 176,146 - 176,146

Year 5 343,282 - (157,138) 186,145 - 186,145

Year 6 353,581 - (157,138) 196,443 - 196,443

Year 7 364,188 - (157,138) 207,051 - 207,051

Year 8 375,114 - (157,138) 217,976 - 217,976

Year 9 386,367 - (157,138) 229,230 - 229,230

Year 10 397,958 - (157,138) 240,821 - 240,821

5860 150th Ave N


MIP Payments

$

$50,000

$100,000

$150,000

$200,000

$250,000

1 2 3 4 5 6 7 8 9 10

Cash Flow After Taxes

Cash Flow Before Taxes



5860 150th Ave N

Clearwater, FL 33760Benny Spensieri

813-391-1545

Time Initial Investment Cash Flow Cash on Cash Income Cash Flow Cash on Cash

Period Adj for Refinance Before Taxes Before Taxes Taxes After Taxes After Taxes

Year 1 960,000$ 147,864$ 15.40% $ 147,864$ 15.40%

Year 2 960,000 157,014 16.36% - 157,014 16.36%

Year 3 960,000 166,439 17.34% - 166,439 17.34%

Year 4 960,000 176,146 18.35% - 176,146 18.35%

Year 5 960,000 186,145 19.39% - 186,145 19.39%

Year 6 960,000 196,443 20.46% - 196,443 20.46%

Year 7 960,000 207,051 21.57% - 207,051 21.57%

Year 8 960,000 217,976 22.71% - 217,976 22.71%

Year 9 960,000 229,230 23.88% - 229,230 23.88%

Year 10 960,000 240,821 25.09% - 240,821 25.09%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

1 2 3 4 5 6 7 8 9 10

After Taxes

Before Taxes



5860 150th Ave N


813-391-1545

Time Net Operating Cap Rate on Cost Resale

Period Income (NOI) 3,200,000$ Value

Year 1 305,002$ 9.53% 3,050,020$

Year 2 314,152 9.82% 3,141,521

Year 3 323,577 10.11% 3,235,766

Year 4 333,284 10.42% 3,332,839

Year 5 343,282 10.73% 3,432,824

Year 6 353,581 11.05% 3,535,809

Year 7 364,188 11.38% 3,641,883

Year 8 375,114 11.72% 3,751,140

Year 9 386,367 12.07% 3,863,674

Year 10 397,958 12.44% 3,979,584

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

1 2 3 4 5 6 7 8 9 10



5860 150th Ave N


813-391-1545

Time Projected Adj Projected Refi Proceeds Mortgage(s) Sale Proceeds Income Taxes Sale Proceeds Property Year / Year

Period Resale Value Increase (if any) Balance Payoff Before Taxes From Sale After Taxes Equity Equity Increase

Year 1 3,050,020$ -4.69% $ (2,193,813)$ 856,207$ $ 856,207$ 856,207$ (103,793)$

Year 2 3,141,521 3.00% - (2,145,263) 996,257 - 996,257 996,257 140,050

Year 3 3,235,766 3.00% - (2,094,230) 1,141,536 - 1,141,536 1,141,536 145,279

Year 4 3,332,839 3.00% - (2,040,585) 1,292,254 - 1,292,254 1,292,254 150,718

Year 5 3,432,824 3.00% - (1,984,196) 1,448,628 - 1,448,628 1,448,628 156,374

Year 6 3,535,809 3.00% - (1,924,922) 1,610,887 - 1,610,887 1,610,887 162,259

Year 7 3,641,883 3.00% - (1,862,615) 1,779,268 - 1,779,268 1,779,268 168,381

Year 8 3,751,140 3.00% - (1,797,121) 1,954,019 - 1,954,019 1,954,019 174,751

Year 9 3,863,674 3.00% - (1,728,275) 2,135,399 - 2,135,399 2,135,399 181,380

Year 10 3,979,584 3.00% - (1,655,908) 2,323,677 - 2,323,677 2,323,677 188,278

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

1 2 3 4 5 6 7 8 9 10



5860 150th Ave N


813-391-1545

Rental Annual Change Annual Change Trapped Return on Hold

Cash Flow in Equity in Net Worth Equity Equity (ROE) Sell

6.00% A B (A + B)

Year 1 147,864 (103,793) 44,071 960,000 4.59% Hold

After Year Year 2 157,014 140,050 297,065 856,207 34.70% Hold

5 Year 3 166,439 145,279 311,718 996,257 31.29% Hold

Year 4 176,146 150,718 326,864 1,141,536 28.63% Hold

Year 5 186,145 156,374 342,519 1,292,254 26.51% Hold

Year 6 196,443 162,259 358,702 1,448,628 24.76% Hold

Year 7 207,051 168,381 375,432 1,610,887 23.31% Hold

Year 8 217,976 174,751 392,727 1,779,268 22.07% Hold

Year 9 229,230 181,380 410,609 1,954,019 21.01% Hold

Year 10 240,821 188,278 429,098 2,135,399 20.09% Hold

Required Return on

EquityTime Period

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

1 2 3 4 5 6 7 8 9 10

Return on Equity (ROE)



5860 150th Ave N

Clearwater, FL 33760 Benny Spensieri

813-391-1545

Cash on Cash

Time Period Potential Operating, Debt, Occupancy BreakEven Max Vacancy BreakEven Max Vacancy

Requirement Rental Income Reserve Expenses Rate (Existing) Occupancy Rate BreakEven Rate Occupancy Rate BreakEven Rate

6.00% w/ Cash on Cash w/ Cash on Cash

Year 1 517,000 (343,286) 95.00% 66.40% 33.60% 77.54% 22.46%

Year 2 532,510 (348,870) 95.00% 65.51% 34.49% 76.33% 23.67%

Year 3 548,485 (354,622) 95.00% 64.65% 35.35% 75.16% 24.84%

Year 4 564,940 (360,547) 95.00% 63.82% 36.18% 74.02% 25.98%

Year 5 581,888 (366,649) 95.00% 63.01% 36.99% 72.91% 27.09%

Year 6 599,345 (372,934) 95.00% 62.22% 37.78% 71.83% 28.17%

Year 7 617,325 (379,408) 95.00% 61.46% 38.54% 70.79% 29.21%

Year 8 635,845 (386,076) 95.00% 60.72% 39.28% 69.78% 30.22%

Year 9 654,920 (392,945) 95.00% 60.00% 40.00% 68.79% 31.21%

Year 10 674,568 (400,019) 95.00% 59.30% 40.70% 67.84% 32.16%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

1 2 3 4 5 6 7 8 9 10

BreakEven Occupancy

BreakEven Occupancy with Cash on Cash Requirment


Tampa, Fl 33605

[email protected]

Benny Spensieri


CRES Corp International, LLC1228 E 7th Ave0

Commercial Real Estate Services - Development - Management - Financial Services

CRES Corp International, LLC (CCI) is a Commercial Real Estate company offering development, finance and

brokerage services. Our Development Team specializes in health care construction and offers the latest and

most cost effective construction technology.

Our Development specializes in health care, medical, Multi-Family & Hospitality operations and development:

Construction & Development Project Planning

Property Acquisitions

Investment Structuring

Property Conversion and Repositioning

Joint Venture Structuring

Medical/Health Care Property Management

Financial Arrangement & Consulting

To assist our Clients with their development projects and acquisitions we offer affordable financing alternatives

to conventional financing methods:

Variable Rate Demand Bonds

Industrial Revenue & Municipal Bonds

Build-to Lease Program

Foreign Investment Funds

Joint Venture/Equity Partnership Arrangements

Our goal is to bring our Clients the lowest interest rates and best leverage on their purchases and projects.

We will consider the following properties and projects:

Health Care/Medical

Offices

Multi-Family

Schools/Universities

Hospitality

For further information contact Benny Spensieri – 813-391-1545 or [email protected]

Benny Spensieri

813-391-1545

[email protected]

Terms & Definitions

Tampa, Fl 33605

0

CRES Corp International, LLC1228 E 7th Ave

Net Operating Income (NOI) is a property’s gross rental income reduced by all expenses except for loan payments,income taxes, mortgage insurance premium (MIP) payments and sometimes funded reserves.

Debt Coverage Ratio (DCR) is a property’s net operating income divided by the amount of debt payments. Lendersuse this calculation to determine the remaining operating cash flow after the debt payments.

Loan-to-Value Ratio (LTV) is the outstanding debt divided by the value of the property. This ratio is used to determinethe amount of leverage and property equity. The debt balance can be the beginning or end-of-year balance. Theproperty value used can be the contract price or the fair market value at the end of the year.

Capitalization Rate (Cap Rate) is the net operating income (NOI) divided by either the property’s contract purchaseprice or its fair market value.

Cash-on-Cash Return is the net cash flow divided it by the initial investment (down payment). The calculation doesnot take into account the time value of money or change in the property’s equity.

Cash-on-Cash Return with Equity Build-up modifies the cash-on-cash return calculation by adding the property’s netchange in equity for that year to the numerator and adding all previously generated equity to the denominator of thecash-on-cash return ratio. The calculation calculates the return on the property equity, i.e. the return on the cash thatis “tied up” in the property.

Net Present Value (NPV) converts future dollars into present-day dollars by discounting (reducing) the future cash flowof a property by a given rate or percentage. The initial investment (down payment) is subtracted from the discounteddollars to derive the NPV. A positive NPV means that the property will generate a higher return than the given rate orpercentage used to calculate the NPV amount.

Gross Rent Multiplier (GRM) is a property’s fair market value divided by its gross rental income.

Mortgage Insurance Premium (MIP) Payments are insurance premiums charged by a lender to protect that lenderagainst loss from a mortgager's default. The rates are charged on the balance of the loan and may be paid annually,monthly, or in some combination of the two (split premiums).

Internal Rate-of-Return (IRR) is the most widely used method of valuing a property’s annual cash flow stream. Sincea property’s cash flow is earned in the future, those future dollars must be converted to present-day dollars. The IRRcalculation discounts (reduces) the property’s future cash flow at a rate (i.e. percentage) so that the sum of all cashflow for a specified time period is equal to the initial investment. The rate or percentage needed to do that is the IRR.In other words, IRR is the discount rate at which Net Present Value (NPV) is zero.

Modified Internal Rate-of-Return (MIRR) modifies the IRR to avoid the drawbacks of the traditional IRR. The IRRimplicitly assumes that all cash flow is either reinvested or discounted at the computed IRR rate. In reality, a property’scash flow probably will not be reinvested at the computed IRR rate, but rather earn zero or a small amount of interest.The MIRR eliminates the reinvestment assumption by utilizing user stipulated reinvestment and borrowing rates.

72-sp sun terrace mhp for sale -...

Documents