Real Estate
1. Individual Real Estate Investor: Acquisition / Buy-and-Hold Models
The client was an “all-cash” buyer. It wanted to acquire New York City properties, which it could rehab / renovate and then rent out on a long-term basis.
The client wanted to have a range of rate-of-return measures for its buy-and-hold strategy.
The client was to be the ‘sole’ investor.
2. Real Estate: Developer - 3 phases
Here the goal was to produce a business plan for a real estate developer (new build) startup in Los Angeles, California planning to do a range of residential and in-fill projects in the $ 5-20 million range.
On a per project basis, initially this would take the form of traditional Reg. D equity offerings to investors - but not through traditional broker dealers.
Overall, the goal of this plan was to make use of a 3-part raise strategy with a Seed ($250,000 round), a revolving Working Capital Fund (5 year, $ 5 million) and individual, multiple Project (Reg. D ) raises with roughly 12-month turnarounds.
The long-term goal was to launch the company's own crowdfunding real estate development website (no competitor as of early 2017).
e. business plan - full plan (click)
3. Real Estate: Big Data
This was a very different type of real estate company as it was based around its proprietary algorithms to deep dive nationwide big data to provide solutions for buyers and lenders who wanted fast and better answers.
The particular target market was distressed property buyers who needed to know about hidden and possibly dangerous title and other property history problems.
For lenders, the company had a way in which borrowers could be pre-qualified and reduce loan application submissions, which were not likely to result in a loan being made.
As this plan and deck were being completed, a major investor entered the picture and new and additional funding was no longer required.
4. Real Estate: DEEP DIVE - Comprehensive Mixed Use
Artz Plaza was a foreclosed, partially built mixed-use building complex. Among the key issues were a determination of both the costs to complete (both developer and construction) and future value.
See attached models (ask for information on more detailed and additional models)
5. Real Estate: Single Family Flip - Reconstruction of Farm Villa
An old farmhouse that is surrounded by walls, more like a Roman house.
By adding a second story to add a view and through the use of a construction loan at a 70% loan-to-value, little equity is required and profits are substantial.
The project ended up not being built as planned due to non-disclosed zoning issues.
6. Real Estate: Small (water view) Single Family Development
A very appealing location for a small development of 4-bedroom, single family homes.
The key problem was the cost of site development as a road had to be widened, which required an offsite investment of close to $300,000.
The business plan (draft) has extensive information on the legal relationship to-be-established between the land owner and developer.
