dallas tx - investment property loans | fix and flip hard money … · 2019. 10. 28. · svn sfrhub...

SVN | SFRhub Advisors2400 E. Arizona Biltmore Circle

Building 4, Suite 1400

Phoenix, Arizona 85016

As featured on SVN Live weekly broadcast-view at www.SVN.com

100% Occupied & Cherry-pickable!

17 HOME SFR INVESTMENT PORTFOLIO HOUSTON + DALLAS TX - PORTOFLIO 100392

OFFERING MEMORANDUM

VISIT WWW.SFRHUB.COM FOR MORE INFORMATION!

Jeff ClineSVN | SFRhub Advisors

Executive Director & Designated Broker 602.441.5354

[email protected]

Michael FinchSVN | SFRhub AdvisorsExecutive VP | Principal

[email protected]

Bob MeekSVN | Meek & Associates

Managing Director281.794.4180

[email protected]

All SVN® Offices Independently Owned & Operated © 2018 SFRhub Advisors, LLC All Rights Reserved P #0392V.1

PROPERTY SUMMARY

Offering Summary

PROPERTY DESCRIPTION

Property Overview

HIGHLIGHTS

Property Highlights

LOCATION OVERVIEW

Location Info

Major Employers

MARKET DATA

MSA Housing Market

US Housing Market

INVESTMENT OVERVIEW

Operating Pro Forma

Debt Overview

Financing Assumptions

DEMOGRAPHICS REPORT

ADVISORS BIO

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2 17 Home SFR Investment Portfolio Houston + Dallas TX

All SVN® Offices Independently Owned & Operated © 2018 SFRhub Advisors, LLC All Rights Reserved SVN | SFRhub Advisors SVN | Meek & Associates

Five Reasons We KNOW You’ll Benefit with SFRhub Today, We Are Unlike Anyone Else...

Research with clean and verified intelligent decision data. We use proprietary processes gathering data from a variety of sources to generate our exclusive verified Advanced SFR Scrub Report™, powered by top-ranked Automated Valuation Model* (AVM) data, verifying 25-35 data points on each individual home within a portfolio.

Buyers and sellers can optimize their acquisition/disposition profitability by reducing opportunity cost as a result of targeted research and “cherry-picking”capability.

The nation’s largest SFR/Build-For-Rent (BFR) portfolio, single source Live Acquisition Board, operating in all 50 states with access to over a million buyers and sellers.

With 200 offices in 500 sub-markets we are not just another listing site. We are a full service SVN commercial real estate brokerage.

We are buyer/seller direct. Providing seamless due diligence, inspection, escrow, and transaction management support with a fully licensed real estate team.

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Information is deemed reliable, but not guaranteed. Programs and pricing are subject to change.SVN | SFRhub Advisors SVN | Meek & Associates

PROPERTY SUMMARY

List Price:

Number of Homes:

Stabilized Year I Cap Rate:

Stabilized Year I NOI:

Avg. Home Size:

Market:

Sub-market:

Price/SF:

$4,802,500

17

5.52%

$265,233

3,165 SF

Houston + Dallas Metro

Houston-The Woodlands-Sugar

Land and Dallas-Fortworth

$89

OFFERING SUMMARY

**Pro Forma rates assume all homes are being operated at projected market rates.**


Home Type

3 Bdrms

4 Bdrms

5+ Bdrms

AverageSize/Type

2,865 SF

3,154 SF

3,503 SF

Numberof Homes

3

11

3

AverageRent/SQ FT

$0.74

$0.73

$0.71

AverageMonthly Rent

$2,108.33

$2,311.36

$2,491.67



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PROPERTY DESCRIPTION

PROPERTY OVERVIEW

Learn more about portfolio 100392 at SFRhub.com

This 17 home portfolio offers immediate cash flow with a 100% occupancy rate and containing only fully background-checked tenants. Being offered by a large SFR aggregator, this portfolio is one of multiple portfolios being sold by the seller. It is fully ‘cherry-pickable’, and can be packaged with properties from the additional portfolios to create a customized portfolio unique to your investment criteria and target markets. According to research by RENTCafe, a rental market analysis website, four of the 20 fastest-growing suburbs for renters nationwide are in North Texas.

This investment portfolio of homes are parceled around 2 popular metros, Dallas and Houston. The homes in this portfolio are currently achieving close to market rents with the average of $2,101 per door, and provides the investor the opportunity to raise these rents to full market rates, which is an average of $2,307 for this group of properties. With a 9.8% increase in rents to this portfolio, the new owner will be operating at full projected rates. The mix of floorplans is predominantly made up of four-bedroom plans, but additionally offers 3, three-bedroom homes, as well as 3, five-bedroom homes. The average vintage of the homes is 1999, and all homes went through a remodel in 2013. The average dwelling square-footage of this portfolio is a large 3165 SF per home.

The Houston real estate market has become a popular focal point for investors, including a plethora of overseas investors. With the strong combination of a stable economy, low unemployment rates and lack of inventory supply, investors are flocking to put their money into this market before home prices begin to gain traction and rise.

Additionally, the Dallas MSA ranks #3 hottest rental markets, according to RENTCafe, as a 115% renter population increase. Over the years many companies from L.A. & San Francisco have been relocating to Dallas for a number of reasons, i.e., a business friendly environment, lower taxes, & fewer regulations. As companies relocate rental demand continues to push upward.



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PROPERTY HIGHLIGHTS

• Learn more about portfolio 100392 at SFRhub.com

• Houston is a hot MSA for investors being in the top 10% nationally for real estate appreciation

• Dallas MSA ranks #3 hottest rental markets, according to RENTCafe

• 100% occupancy rate of only fully background-checked tenants

• Opportunity to increase rents 9.8% to current market rates

• Predominantly 4 bedroom homes, a highly demanded floor plan for renters

• All homes completely remodeled and updated in 2013

• Low price per square foot relative to Houston’s average home price

• Houston ranks 3rd in annual job growth out of nations top 12 largest MSAs

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HIGHLIGHTS



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LOCATION OVERVIEW

LOCATION INFO

Learn more about portfolio 100392 at SFRhub.com!

The median list price per square foot in the Houston-Woodlands-Sugar Land metro averages $121 and with the home values up 7.2% over the past year and their Houston real estate market prediction is that they will rise 3.4% within the next year.

Over the last decade, Houston real estate appreciated 52.91%, which averages out to an annual home appreciation rate of 4.34%. This gives Houston a spot in the top 10% of markets nationally for real estate appreciation, according to NeighborhoodScout’s data.

Employment in the Houston-The Woodlands-Sugar Land MSA grew by

86,200 jobs, reaching a 2.8% increase from a year earlier, as reported on May 2019 by the U.S. Bureau of Labor Statistics. This is a whole percent higher than the national job count increase of 1.8%. This ranks Houston third in both the number of jobs added over the year and the annual job growth rate, among the 12 largest metropolitan areas in the country.

The Dallas-Fort Worth metro area is the fourth largest metro area with 7,233,323 residents and has experienced incredible job growth, with an average of 95,000 new jobs added annually. According to the U.S. Census Bureau, the metro made up 2.3% of the nation’s population in 2018. From 2010 to 2018, the area experienced a job creation increase of 24%. The city of Dallas is considered a “beta” global city. The economy is diverse with major sectors including financial services, information technology, telecommunications, and transportation. The area’s economic sectors continue to flourish as many reputable companies have relocated or currently have


headquarters in the Dallas metro, resulting in numerous job openings. These major companies have all opened headquarters in the last two years, Toyota, J.P. Morgan, Liberty Mutual, and State Farm. As of September 2017, over 40 firms have announced relocations or expansions within the Dallas-Fort Worth metro area. Many companies and Americans alike are making the decisions to expand or relocate to Dallas for the favorable business environment, no income tax, and the lower cost of living.

Dallas developed as a strong industrial and financial center with a major inland port due to the convergence of major railroad lines, interstate highways and the development of one of the largest and busiest airports in the world, the Dallas/Fort Worth International Airport. The top five publicly traded companies include AT&T, Energy Transfer Equity, Tenet, Healthcare, Southwest Airlines, and Texas Instruments, according to the Dallas Morning News.


MAJOR EMPLOYERS

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MARKET DATA

MSA HOUSING MARKET

The Houston market is experiencing a growth in employment of 2.7% and a household increase of 2.3%. There are currently 38,445 single-family permits (12 months) available. Based on data pulled from 133 markets, the home value trends for both new and resale homes collectively are currently experiencing a 3.7% increase in price appreciation.

In Houston, the average single-family cost of rent as of August 2019 is $1,536 and is projected to increase by 1.8% by 2022. The median household income is $67,800, making the single-family rent-to-income ratio of 27.2%. The single-family home occupancy rate as of December 2018 is at an impressive 90.1%, with only 9.9% vacancies.

Of single-family, entry-level homes that are purchased, $194,900 is the average value per SFR with a median home payment of $1,722 a month (with the assumption of a 5% downpayment, 30-year fixed-rate mortgage including PITI plus mortgage insurance). Rental rates at this same level average around $1,537 making owning rental units in the Houston area more attractive to investors, especially given the low homeownership rate & high population of renters in the area.

The Dallas market is experiencing a growth in employment of 3.7% and a household increase of 2.8%. There are currently 25,162 single-family permits (12 months) available. Based on data pulled from 133 markets, the home value trends for both new and resale homes collectively are currently experiencing a 2.3% increase in price appreciation.

In Dallas, the average single-family cost of rent as of August 2019 is $1,630 and is currently increasing by 3.6%. The median


household income is $73,900, making the single-family rent-to-income ratio of 26.5%. The single-family home occupancy rate as of December 2018 is at an impressive 93.6%, with only 6.4% vacancies.

Of single-family, entry-level homes that are purchased, $235,700 is the average value per SFR with a median home payment of $2,056 a month (with the assumption of a 5% downpayment, 30-year fixed-rate mortgage including PITI plus mortgage insurance). Rental rates at this same level average around $1,803 making owning rental units in the Dallas area more attractive to investors, especially given the low homeownership rate & high population of renters in the area.

*Source for MSA Housing Market: John Burns Real Estate Consulting as of August 2019.


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MSA HOUSING MARKET GRAPHSThe information and data used in the graphs on this page have been provided by John Burns Real Estate Consulting as of August 2019. These are based on Dallas + Houston MSA research on the SFR & BFR market.

Houston

Dallas



US HOUSING MARKET

In the U.S., rents in the lower rent tiers are increasing 4% YOY compared to higher rent homes at 3.4%. According to a recent Freddie Mac survey, about 50% of millennials prefer to continue renting while a surprising 72% of baby boomers would like to keep renting as well. Baby boomers tend to rent longer at approximately 8.4 years versus younger renters who rent for about 3.2 years. The single-family rental demand is forecasted to continue strong through 2022 even with an expected modest recession. Nationally, rents rose 3.7% with Vegas, Phoenix and Orlando leading with the strongest YOY growth and Cincinnati and Houston fell behind. As tenants are sticking with REITs, they maintain 95% occupancy with strong 4% rent growth. Build-for-Rent gains big momentum with SFR investors as there is a strong demand among all generations, including baby boomers.

Nationally, the housing market will remain steady, benefitting from a slightly stronger economy and lower mortgage rates that have declined due to fears of an economic slowdown. A forecasted 2021 recession with a .4% job loss is a likely outcome. Nationally, housing affordability is worse than usual regardless to mortgage rates. For 2019, there will be over a 2% increase in home sales, however resale sales will drop 4% while resale prices increase by over 3%. Overall, entry-level homes continue to outperform as months of resale supply for high-priced homes (10 months) is at the highest it has been since 2013.

Across the country, there has been a 2% increase in new home sales and 3% in resale price appreciation in 2019. Slow price gains and new home construction are predicted as the economic expansion continues into its 11th consecutive year. Homebuilders’ active projects have


declined by 2% year over year as land, laws, labor and lending limit advancement. Housing affordability will continue during the next recession which has had an impact on builder sales.

*Source for U.S. Housing Market: John Burns Real Estate Consulting as of Q1 2019.


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US HOUSING MARKET GRAPHSThe information and data used in the graphs on this page has been provided by John Burns Real Estate Consulting as of April 2019. These are based on nationwide research on the SFR & BFR market.

INVESTMENT OVERVIEW

INVESTMENT OVERVIEW


Cap Rate - Stabilized

Gross Yield

Net Operating Income (NOI)

Leveraged IRR

Unleveraged IRR

Number of Homes

List Price

List Price Per Home

List Price/SQFT

Pro Forma

5.30%

9.80%

$254,705

17

$4,802,500

$282,500

$89

Year 1; T-12

5.52%

10.10%

$265,233

20.51%

10.92%

Year 3; T-36

5.98%

10.71%

$287,378

22.27%

11.45%

Year 5; T-60

6.48%

11.36%

$311,053

24.13%

12.01%



OPERATING PRO FORMA

DEBT OVERVIEW


Loan-To-Value Ratio

Interest Rate

Loan Amortization in Years

FINANCING ASSUMPTIONS

70.00%

5.50%

30

Annual Rent

Average Monthly Lease Rate (P.S.F.)

Vacancy

Operating Expenses

Net Operating Income (NOI)

Pro Forma

$470,700

$0.73

5.00%

$192,460

$254,705

Year 1; T-12

$484,821

$0.75

5.00%

$195,347

$265,233

Year 3; T-36

$514,347

$0.80

5.00%

$201,251

$287,378

Year 5; T-60

$545,670

$0.85

5.00%

$207,334

$311,053

Debt Amount

Annual Debt Service Payments

Estimated Annual Market Valuation

Appreciation (National)

Pro Forma

$3,361,750

$229,052

Year 1; T-12

$3,316,464

$229,052

5.40%

Year 3; T-36

$3,218,085

$229,052

5.40%

Year 5; T-60

$3,108,294

$229,052

5.40%


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DEMOGRAPHICS REPORT

Total Population

Median Age

Median Age (Male)

Median Age (Female)

Total Household

Total Person/Household

Avg. Household Income

Avg. House Value

DEMOGRAPHICS REPORT

5 Miles

126,419

31.9

30.7

33

40,791

3.1

$86,231

$173,738

10 Miles

579,018

33.1

31.3

34.6

199,017

2.9

$72,778

$187,413

15 Miles

1,700,692

33.1

32.2

34

613,863

2.8

$77,430

$231,107



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JEFFREY CLINE

Jeff Cline’s 40+ years of business leadership and commercial real industry expertise includes commercial real estate marketing, brokerage, large-scale finance, development and construction. Mr. Cline has lead as CEO in several commercial property segments including multi-family apartments, condominiums, high-rise, office buildings, industrial / warehouse, retail shopping centers and as a national leader in the SFR Portfolio investment segment. Jeff has been involved as a principal in $2+ billion of commercial real estate, construction and property funding.

As a Principal and Designated Broker of SVN | SFRhub Advisors, Jeff is a co-founder which has developed an industry disrupting CRE digital transaction platform. This new digital platform is changing the way the CRE industry markets, researches, analyzes and acquires commercial investment property. It is this platform that will be a the disruption and opportunity with what will soon become the ‘normal’ location, marketing, research, and transaction portal.

Executive Director & Designated Broker

SVN | SFRhub Advisors2400 E. Arizona Biltmore CircleBuilding 4, Suite 1400Phoenix, AZ 85016

T: 602.441.5354C: [email protected]

AZ #BR6508-89-000

ADVISOR BIOGRAPHIES



MICHAEL FINCH

Michael Finch began his career in commercial real estate brokerage over 15 years ago in Phoenix, Arizona. He has developed broad local and national relationships with the top-ranked high density mid to large scale developers commercial mixed-use & multifamily developments. Michael continued to deliver value-add opportunities as market cycles have evolved. With an extensive national network, Michael has successfully grown his client base with the nation’s largest investment & private equity groups in the country. He enjoys being an integral component to these client teams focused on large-scale income-producing portfolios, specifically single-family rental portfolios and build-for-rent investment portfolios for many years now.

Today, Michael is a Principal, Founder, & Executive Vice President in SVN | SFRhub Advisors, the nation’s leading commercial real estate brokerage firm focused on single-family rental portfolios & build-for-rent (BFR) investment portfolio sales on a national level. Michael is also a founding partner in SFRhub.com, a leading data & valuation service provider, and digital transaction platform for buyers & sellers of SFR & BFR investment portfolios.

Executive VP | Principal

SVN | SFRhub Advisors2400 E. Arizona Biltmore CircleBuilding 4, Suite 1400Phoenix, AZ 85016

T: 602.441.5354C: [email protected]

AZ #SA576104000

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BOB MEEK

Bob Meek serves as a senior advisor for SVN specializing in the sale of multifami-ly properties and raw land in the Western Houston markets including the Galleria, Greenway, Medical Center, Inner Loop, Bellaire, Memorial, Spring Branch, West-chase, Alief, Katy, Copperfield and Cham-pions.

With over 25 years of real estate invest-ment, leasing and property manage-ment experience, Meek has represented a broad range of investors in the dispo-sition and acquisition of commercial real estate. Since 1999, Meek has completed in excess of 40 major transactions with a sales volume that exceeds $125 million.

Prior to joining SVN, Meek served as an investment broker for Marcus & Millichap where in 2001 and 2002 he earned the outstanding performance award. In 2002, out of the firm?s entire Houston District, he received the Top Producer award. Pre-viously, Meek served as vice president of REOC Property Services, LLC, a large multifamily asset management company overseeing more than 4,000 units.

Meek’s professional activities include be-ing a member of the Houston Association of Realtors. He is also a member of the In-stitute of Real Estate Management (IREM) and earned the organization?s Certified Property Manager designation. Addition-ally, he serves as chairperson of the IREM Management Plan Committee and is an active member of the Membership Com-mittee. He also served on the Board of Di-rectors, East Texas AHMA and served on the Board of Commissioners, Plano, Tex-as, Public Housing Authority.

Meek served in the United States Air Force as a B-52 aircraft commander and pilot receiving the Distinguished Flying Cross and five Air Medals. He also earned a Bachelor of Science from the University of Florida, Gainesville.

Managing Director

SVN | Meek & Associates16100 Cairnway DrSuite 108Houston, TX 77084

T: [email protected]

TX #437908



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INTELLIGENT DECISION DATA

ABOUT SVN | SFRhub ADVISORS

SFRhub is our exclusive research and data provider with end-to-end Intelligent Decision Data solutions. A complete, effective clean data sourcing, research and analysis is essential to all SFR Portfolio buyers and sellers. The exclusive SFRhub Advanced SFR Scrub Report is essential for all intelligent decisions, whether they’re operational, asset acquisition or disposition and the overall strategic asset plan.

Today’s most effective and intuitive clean and verified data solutions are comprised of

Our proprietary Advanced SFR Scrub Report™ supports the buyer and seller decision process with quality and real time intelligent decision data, enabling an analysis of every aspect of the opportunity.

Also proprietary are our exclusive accelerated contract documentation process, title insurance management, due-diligence period logistics and documentation, with the final close of escrow. Ultimately, these pieces combine for a seamless

reporting, online analytical processing, analytics, data mining, process mining, complex event processing, business performance management, benchmarking, text mining, predictive analytics and prescriptive analytics.

SFRhub has knowledgeable and experienced individuals who work with data sources as true partners to help implement solutions that are forward-thinking, yet still based on industry knowledge and best practices.

decision-managed process – for both the buyer and seller.

SVN | SFRhub Advisor delivers the nation’s only single-family rental (SFR) portfolio Live Acquisition Board™ transaction platform.

In support, the dedicated, experienced, and professional SFR portfolio team has developed both an exclusive and conventional SVN | SFRhub Advisors program. In applying this advanced

technology, SVN | SFRhub Advisors becomes the nation’s sole SFR Portfolio Live Acquisition Board™ Transaction Platform, supporting both sellers and buyers of single-family residential rental investment portfolios. In addition, we feature existing asset as well as new-build home commercial investment portfolios nationally, anywhere from 5 to 5,000 homes.



DISCLAIMER

The material contained in this Offering Brochure is furnished solely for the purpose of considering the purchase of the property within and is not to be used for any other purpose. This information should not, under any circumstances, be photocopied or disclosed to any third party without the written consent of the SVN® Advisor or Property Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property.

The only party authorized to represent the Owner in connection with the sale of the Property is the SVN Advisor listed in this proposal, and no other person authorized by the Owner to provide any information or to make any representations other than contained in this Offering Brochure. If the person receiving these materials does not choose to pursue a purchase of the Property, this Offering Brochure must be returned to the SVN Advisor.

Neither the SVN Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy of the information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future representation of the Property. This Offering Brochure may include certain statements and estimates with respect to the Property. These Assumptions may or may not be proven to be correct, or warranties, expressed or implied, contained in or omitted from this Offering Brochure, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fully executed and delivered Real Estate Purchase Agreement between it and Owner.

The information contained herein is subject to change without notice and the recipient of these materials shall not look to the Owner or the SVN Advisor nor any of their officers, employees, representatives, independent contractors or affiliates, for the accuracy or completeness thereof. Recipients of this Offering Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property.

This Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Offering Brochure or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on terms acceptable to Owner, in Owner’s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowledge the foregoing and agreed to release the Owner and the SVN Advisor from any liability with respect thereto.

To the extend Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase agreement shall bind the property and each prospective purchaser proceeds at its own risk.

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16100 Cairnway DrSuite 108Houston, TX 77084www.SVN.com281.794.4180

2400 E. Arizona Biltmore CircleBuilding 4, Suite 1400Phoenix, Arizona 85016www.SFRhub.com602.441.5354

All SVN® Offices Independently Owned & Operated © 2018 SFRhub Advisors, LLC All Rights Reserved

dallas tx - investment property loans | fix and flip hard money … · 2019. 10. 28. · svn sfrhub...

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