Developing 40-acre mfr home park Financials underwriting discloser
1> locating 40 acre park in Nevada as first test project for national campaign example, we expect $500,000 for land in city center with full city facilities not rural location so all residence members have access to transportation, shopping, medical….we will be asking seller to work with us as housing for low income thought process with $30,000 down from $50,000 we gain from donations , and carry $470k private loan for 3 yrs at 3% interest, as 2nd trust deed, and subordinate to development loans..
2> we will spend remainder of $20,000 from $50k donations, to develop 40 acres>…soil test, water rights, city/cty fees, engineering reports, and appraisal….to get to building permits clearance …
3> now we submit develop loans, low-income housing loans federal/state, bond financing, trust funds, government subsidize loans…. whatever it takes!
4> financial analysis…1> land $500k, 2> development cost $50k, 3> 360 development cost lots at $15k equals $5million, 4>sewage treatment plant on site $300k, 5> solar electric each 360 unit at $3500 equal $1.2million, 6> water rights $200k, 7> 2500sq ft community center built with mfr home factory $125k, 8> 360 mfr homes at $50k ( 960 sq ft,2bedroom,1 bath, car port> at $18million…we anticipate total at $27,000,000 project….
5> a $27million project has to have ROI of at least 6% to attract investors, loans, which will expect $135,000 month return capital from rents of $750…….$750 monthly rents at 360 renters is $270k a month……plus we expect 30% operating expenses from monthly rents of $80k month…..so income $270,000 subtracted operating expenses of $80k we are ok with $190,000 income left over to pay 6% Roi investor loan of $135,000……net income $55,000 month….and we will petition city/cty for property tax forbearance percentage to support low income rents… renters will be on $100 month utility add on each month to pay electric, water/sewage treatment plant expense……and 10 year rent control program of first 2 yrs $750 month, 3-5th year up $850, 6-8th year $900, 9-10 year $950 month…….we will refinance project year 3 and pay off seller land carry back position, and pull $100,000 cash out which will fund next project with donations, grants and total affordable project will be self-funding!, plus our goal is working with government, wall street, to build 10 project at one time in at risk low income areas in USA, because we know Wall-street likes bonds with 0 debt, pure income, thinking being investor get annuity type income, free from default risk, because projects are funded with 0 trust deed, free and clear….< rule 506b, allows an unlimited amount of capital from accredited investors and up to 35 non accredited investors without general solicitation>
That is our story, we are building homes at $50k per unit not $500k custom homes and builders are calling the difference affordable housing, Romans7 is common sense in insane world…
