6 Reasons this deal is the best deal in the country right now
It’s tough to say which deal we’ve done recently will be the best deal we’ve ever done, but by the fundamentals of real estate investing, this deal has a lot of potential to be the absolute best deal not just that we’ve done but to be available in the apartment game right now. And here are the reasons why (The 6th point isn’t something I’ve ever seen before):
If you’re on our email list you’ll see we released a new deal last week, a 230 unit deal in Jacksonville, and if you’re not on our email list then CLICK HERE to be added so you can start seeing incredible deals like this one, but these are some of the top reasons why I think this could shape out to be the best deal we’ve ever done.
1 - Walking into $4.22M of equity from day 1
This is the best priced deal we’ve ever seen.
The price is so strong that you’d be gaining $4.22M of equity right from the purchase without even lifting a finger.
So if you had the cash you could buy this deal today for $34M, and sell it tomorrow for $38M.
2 - High cash flow
We’re projecting our investors to see a 6% cash on cash year 1.
This has to do with the very strong purchase price and also the very good loan terms which I’ll cover in the next point.
For a value-add apartment deal in a primary market like Jacksonville you’re not going to see anywhere close to 6% cash on cash in year 1 and growing to 10%+ like we’re projecting here.
3 - The debt
The debt is the biggest risk in your deal.
The more debt you have, the riskier the deal. Most investors would consider a 70% loan to be a safe amount. The lower the debt the more safe the deal is.
This property is at 53%. The lowest loan to cost I’ve seen in an apartment deal. Not only that but we’re taking over a fixed rate at 5.64%, almost half the rate you’d get for a value add rate today.
4 - Business plan flexibility
Because the price and debt are so good on this deal, even if we purchased the property and didn’t do any work to it we’d still project a 16%+ return.
Without lifting a finger we’re seeing high yield potential but now when we execute our value add strategy and boost rents by $314 per unit in our projections, you get the potential to see returns beyond other value-add strategies today.
5 - The market and submarket are some of the strongest in the country
Income to rent ratios here are around 20% which means there’s massive room for tenants to pay more and they want a higher end product.
That’s proven by this property sitting close to 94 - 97% occupancy all year.
With beautiful lakes, waterfalls, and 1 mile away from country clubs, this property is in the perfect position to capitalize on not just the growth of Jacksonville, which is a top 10 market in the country right now, but to continue to attract a very high end tenant base.
6 - The sixth point I can promise you isn’t something you’re seeing in a value add property with an asset like this in a market like Jacksonville.
It’s so good that I’m going to reserve it for people who want to dive into the details a bit more, because it requires some explanation that I’m not able to get into on this post.
But, I can promise you, if you’re on the fence about this deal, if you’re on the fence about deals in general, this point is going to 100% push you over the edge and make you as head over heels excited about the deal as we are.
Want to learn the 6th powerful point that makes this deal poised for a slam dunk?
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I hope we can get in touch soon.
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