jasmine bv alf-memory care · port richey, fl 34668 constuction funding available! presented by...
TRANSCRIPT
Benny Spensieri
813-391-1545
Port Richey, FL 34668
Constuction Funding Available!
Presented by
CRES Corp International, LLC1228 E 7th Ave
Proposed Development - 120-Bed ALF & 40-Unit Memory Care
Tampa, Fl 33605
5.62-Acres - Zoned C2
Jasmine Bv ALF-Memory Care
6835 Jasmine Bv
Benny Spensieri
813-391-1545
Property Description
120-Bd ALF & 40-Unit Memory Care
Proposed 5.62-acres - Zoned C2
Proposed Development Project
Jasmine Bv ALF-Memory Care
6835 Jasmine Bv
Port Richey, FL 34668
HIGHLIGHTS
0
1228 E 7th Ave
CRES Corp International, LLC
Tampa, Fl 33605
This Financial Projection Report is based on thedevelopment of a 130-Bed, 43,200 sf ALF. The proposedloan structure includes the land price of 800,000, totalconstruction costs of $21,842,126. Finacining incoporatedinto this Report includes a 3-yr VRDB construction loanproviding 7% Interest Only Rate. New VRDB Loan replacesConstruction Loan at the end the three year term, providing2.35% I/R, 25-yr Amort for 3 additional years, afterwhich, isreplaced with a permanent loan at the market rate of thetime. In this case, 5.5 I/R, 25-yr amort is estimated.
Projections indicate the ALF completion time in less thanthree years, beginning with a 45% occupancy within year 3,65% within year 4, 80% within year 5 adn 95% within year 6.These are conservative where the ALF should be 90%-95%occupied within year the second year after completion.
Contact Benny Spensieri for further inforamtion on thisProperty.
Jasmine Bv ALF-Memory Care
6835 Jasmine Bv
Port Richey, FL 34668
Potential Rental Income $ $ 3,237,000$ 4,531,800$ 5,502,000$
Less: Vacancy & Credit Losses - - (161,850) (226,590) (275,100)
Effective Gross Income $ $ 3,075,150$ 4,305,210$ 5,226,900$
Less: Funded Reserves and/or Improvements (150,000) (151,500) (153,015) (154,545) (156,091)
Less: Operating Expenses (3,517,000) (3,604,925) (3,856,898) (4,014,014) (4,157,210)
Net Operating Income (NOI) (3,667,000)$ (3,756,425)$ (934,763)$ 136,651$ 913,599$
Less: Annual Debt Service (1,376,650) (1,376,650) (1,376,650) (969,920) (969,920)
CASH FLOW Before Taxes (5,043,650)$ (5,133,075)$ (2,311,414)$ (833,270)$ (56,321)$
Projected Sales Price $ $ $ 2,277,509$ 15,226,658$
Less: Selling Expenses - - - (68,325) (456,800)
Adjusted Projected Sales Price $ $ $ 2,209,183$ 14,769,858$
Less: Mortgage(s) Balance Payoff (15,983,188) (15,716,926) (15,431,416) (14,219,413) (13,882,473)
SALE PROCEEDS Before Taxes (15,983,188)$ (15,716,926)$ (15,431,416)$ (12,010,229)$ 887,385$
Cash Generated in Current Year (5,043,650)$ (5,133,075)$ (2,311,414)$ (833,270)$ (56,321)$
Cash Generated in Previous Years n/a (5,043,650) (10,176,726) (12,488,139) (13,321,409)
Cash Generated from Property Sale (15,983,188) (15,716,926) (15,431,416) (12,010,229) 887,385
Cash Inflow (Outflow) from Refinancing - - - (889,863) (889,863)
Original Initial Investment (5,410,500) (5,410,500) (5,410,500) (5,410,500) (5,410,500)
(26,437,339)$ (31,304,152)$ (33,330,055)$ (31,632,001)$ (18,790,707)$
Debt Coverage Ratio (DCR) (2.66) (2.73) (0.68) 0.14 0.94
Loan-to-Value Ratio (LVR) 0.0% 0.0% 0.0% 624.3% 91.2%
Capitalization Rate Based on Cost -16.94% -17.36% -4.32% 0.63% 4.22%
Capitalization Rate Based on Resale Price 0.00% 0.00% 0.00% 6.00% 6.00%
Gross Rent Monthly Multiplier (GRM) - - - 6.03 33.21
Gross Rent Yearly Multiplier (GRM) - - - 0.50 2.77
Value of Property Using this GRM 6.00 - - 19,422,000 27,190,800 33,012,000
Break-Even Ratio 0.00% 0.00% 166.41% 113.39% 96.02%
Operating Expense Ratio 0.00% 0.00% 125.42% 93.24% 79.53%
Cash-on-Cash Return with Equity -488.63% 0.00% 0.00% 0.00% 0.00%
Cash-on-Cash Return - Before Taxes -93.22% -94.87% -42.72% -13.23% -0.89%
Financial Measurements
Year 4 Year 5
Cash Position
Rental Activity Analysis
Total Potential CASH Generated
Property Resale Analysis
Year 1 Year 2 Year 3
Benny Spensieri
813-391-1545
8/31/2018 11:33 AM © 1993 - 2014 Cash Flow Analyzer® http://RentalSoftware.com
Jasmine Bv ALF-Memory Care
6835 Jasmine Bv
Port Richey, FL 34668
Potential Rental Income
Less: Vacancy & Credit Losses
Effective Gross Income
Less: Funded Reserves and/or Improvements
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
Cash Inflow (Outflow) from Refinancing
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
6,474,000$ 6,668,220$ 6,868,267$ 7,074,315$ 7,286,544$
(323,700) (333,411) (343,413) (353,716) (364,327)
6,150,300$ 6,334,809$ 6,524,853$ 6,720,599$ 6,922,217$
(157,652) (159,228) (160,820) (162,429) (164,053)
(4,302,863) (4,412,053) (4,524,021) (4,638,839) (4,756,578)
1,689,786$ 1,763,528$ 1,840,012$ 1,919,332$ 2,001,586$
(969,920) (969,920) (969,920) (969,920) (969,920)
719,866$ 793,608$ 870,092$ 949,412$ 1,031,666$
28,163,097$ 29,392,137$ 30,666,864$ 31,988,861$ 33,359,763$
(844,893) (881,764) (920,006) (959,666) (1,000,793)
27,318,204$ 28,510,373$ 29,746,858$ 31,029,195$ 32,358,970$
(13,530,055) (13,161,446) (12,775,904) (12,372,650) (11,950,870)
13,788,149$ 15,348,927$ 16,970,954$ 18,656,545$ 20,408,100$
719,866$ 793,608$ 870,092$ 949,412$ 1,031,666$
(13,377,729) (12,657,864) (11,864,256) (10,994,164) (10,044,752)
13,788,149 15,348,927 16,970,954 18,656,545 20,408,100
(889,863) (889,863) (889,863) (889,863) (889,863)
(5,410,500) (5,410,500) (5,410,500) (5,410,500) (5,410,500)
(5,170,077)$ (2,815,691)$ (323,572)$ 2,311,430$ 5,094,651$
1.74 1.82 1.90 1.98 2.06
48.0% 44.8% 41.7% 38.7% 35.8%
7.81% 8.15% 8.50% 8.87% 9.25%
6.00% 6.00% 6.00% 6.00% 6.00%
52.20 52.89 53.58 54.26 54.94
4.35 4.41 4.47 4.52 4.58
38,844,000 40,009,320 41,209,600 42,445,888 43,719,264
83.88% 83.10% 82.33% 81.58% 80.84%
69.96% 69.65% 69.34% 69.02% 68.71%
1534.92% 17.08% 16.24% 15.53% 14.92%
11.43% 12.60% 13.81% 15.07% 16.37%
Year 9Year 6 Year 7 Year 10Year 8
Benny Spensieri
813-391-1545
8/31/2018 11:33 AM © 1993 - 2014 Cash Flow Analyzer® http://RentalSoftware.com
Jasmine Bv ALF-Memory Care
6835 Jasmine Bv
Port Richey, FL 34668
% of % of
Expenses Revenue
25,000 2.5% 192.31 0.58 0.7% 0.0%
75,000 2.5% 576.92 1.74 2.1% 0.0%
80,000 2.5% 615.38 1.85 2.3% 0.0%
40,000 2.5% 307.69 0.93 1.1% 0.0%
200,000 2.5% 1,538.46 4.63 5.7% 0.0%
60,000 2.5% 461.54 1.39 1.7% 0.0%
12,000 2.5% 92.31 0.28 0.3% 0.0%
25,000 2.5% 192.31 0.58 0.7% 0.0%
30,000 2.5% 230.77 0.69 0.9% 0.0%
1,392,000 2.5% 10,707.69 32.22 39.6% 0.0%
15,000 2.5% 115.38 0.35 0.4% 0.0%
20,000 2.5% 153.85 0.46 0.6% 0.0%
30,000 2.5% 230.77 0.69 0.9% 0.0%
25,000 2.5% 192.31 0.58 0.7% 0.0%
275,000 2.5% 2,115.38 6.37 7.8% 0.0%
348,000 2.5% 2,676.92 8.06 9.9% 0.0%
20,000 2.5% 153.85 0.46 0.6% 0.0%
245,000 2.5% 1,884.62 5.67 7.0% 0.0%
400,000 2.5% 3,076.92 9.26 11.4% 0.0%
25,000 2.5% 192.31 0.58 0.7% 0.0%
70,000 2.5% 538.46 1.62 2.0% 0.0%
105,000 2.5% 807.69 2.43 3.0% 0.0%
3,517,000$ 27,054$ 43,200 100.0% 0.0%
Benny Spensieri
813-391-1545
Per Sq Ft
Housekeeping/Ldry
Advertising
Administration
Annual
Amount
Telephone
Professional Fees
Annual
Increase
Accounting
Transportation
Insurance
Per UnitExpense Description
Maintenance
Landscaping
Pest Control
Legal
Property Taxes
Payroll
Total Annual Operating Expenses
Repairs
Food/Beverage
Recruiting/Training
IT
Payroll
Resident Care
Other Utilities
Supplies
Annual Property Operating DataJasmine Bv ALF-Memory Care
6835 Jasmine Bv
Port Richey, FL 34668 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 $ 0.00 0.00 $ 0.00 0.00 3,237,000$ 6.24 2,075.00 4,531,800$ 8.74 2,905.00 5,502,000$ 10.61 3,526.92
Less: Vacancy & Credit Losses - 0.00 0.00 - 0.00 0.00 (161,850) -0.31 -103.75 (226,590) -0.44 -145.25 (275,100) -0.53 -176.35
$ 0.00 0.00 $ 0.00 0.00 3,075,150$ 5.93 1,971.25 4,305,210$ 8.30 2,759.75 5,226,900$ 10.08 3,350.58
Accounting 25,000 0.05 16.03 25,625 0.05 16.43 26,266 0.05 16.84 26,922 0.05 17.26 27,595 0.05 17.69
Advertising 75,000 0.14 48.08 76,875 0.15 49.28 78,797 0.15 50.51 80,767 0.16 51.77 82,786 0.16 53.07
Administration 80,000 0.15 51.28 82,000 0.16 52.56 84,050 0.16 53.88 86,151 0.17 55.23 88,305 0.17 56.61
Transportation 40,000 0.08 25.64 41,000 0.08 26.28 42,025 0.08 26.94 43,076 0.08 27.61 44,153 0.09 28.30
Housekeeping/Ldry 200,000 0.39 128.21 205,000 0.40 131.41 210,125 0.41 134.70 215,378 0.42 138.06 220,763 0.43 141.51
Insurance 60,000 0.12 38.46 61,500 0.12 39.42 63,038 0.12 40.41 64,613 0.12 41.42 66,229 0.13 42.45
Landscaping 12,000 0.02 7.69 12,300 0.02 7.88 12,608 0.02 8.08 12,923 0.02 8.28 13,246 0.03 8.49
Legal 25,000 0.05 16.03 25,625 0.05 16.43 26,266 0.05 16.84 26,922 0.05 17.26 27,595 0.05 17.69
Maintenance 30,000 0.06 19.23 30,750 0.06 19.71 31,519 0.06 20.20 32,307 0.06 20.71 33,114 0.06 21.23
Management Fee - 0.00 0.00 - 0.00 0.00 161,850 0.31 103.75 226,590 0.44 145.25 275,100 0.53 176.35
Payroll 1,392,000 2.69 892.31 1,426,800 2.75 914.62 1,462,470 2.82 937.48 1,499,032 2.89 960.92 1,536,508 2.96 984.94
Pest Control 15,000 0.03 9.62 15,375 0.03 9.86 15,759 0.03 10.10 16,153 0.03 10.35 16,557 0.03 10.61
Professional Fees 20,000 0.04 12.82 20,500 0.04 13.14 21,013 0.04 13.47 21,538 0.04 13.81 22,076 0.04 14.15
Repairs 30,000 0.06 19.23 30,750 0.06 19.71 31,519 0.06 20.20 32,307 0.06 20.71 33,114 0.06 21.23
Supplies 25,000 0.05 16.03 25,625 0.05 16.43 26,266 0.05 16.84 26,922 0.05 17.26 27,595 0.05 17.69
Property Taxes 275,000 0.53 176.28 281,875 0.54 180.69 288,922 0.56 185.21 296,145 0.57 189.84 303,549 0.59 194.58
Payroll 348,000 0.67 223.08 356,700 0.69 228.65 365,618 0.71 234.37 374,758 0.72 240.23 384,127 0.74 246.24
Telephone 20,000 0.04 12.82 20,500 0.04 13.14 21,013 0.04 13.47 21,538 0.04 13.81 22,076 0.04 14.15
Other Utilities 245,000 0.47 157.05 251,125 0.48 160.98 257,403 0.50 165.00 263,838 0.51 169.13 270,434 0.52 173.36
Food/Beverage 400,000 0.77 256.41 410,000 0.79 262.82 420,250 0.81 269.39 430,756 0.83 276.13 441,525 0.85 283.03
Recruiting/Training 25,000 0.05 16.03 25,625 0.05 16.43 26,266 0.05 16.84 26,922 0.05 17.26 27,595 0.05 17.69
IT 70,000 0.14 44.87 71,750 0.14 45.99 73,544 0.14 47.14 75,382 0.15 48.32 77,267 0.15 49.53
Resident Care 105,000 0.20 67.31 107,625 0.21 68.99 110,316 0.21 70.72 113,074 0.22 72.48 115,900 0.22 74.30
3,517,000$ 6.78 2,254.49 3,604,925$ 6.95 2,310.85 3,856,898$ 7.44 2,472.37 4,014,014$ 7.74 2,573.09 4,157,210$ 8.02 2,664.88
Less: Funded Reserves and/or Improvements 150,000 0.29 96.15 151,500 0.29 97.12 153,015 0.30 98.09 154,545 0.30 99.07 156,091 0.30 100.06
(3,667,000)$ -7.07 -2,350.64 (3,756,425)$ -7.25 -2,407.96 (934,763)$ -1.80 -599.21 136,651$ 0.26 87.60 913,599$ 1.76 585.64
Less: Annual Debt Service (1,376,650) -2.66 -882.47 (1,376,650) -2.66 -882.47 (1,376,650) -2.66 -882.47 (969,920) -1.87 -621.74 (969,920) -1.87 -621.74
Cash Flow Before Taxes (5,043,650)$ -9.73 -3,233.11 (5,133,075)$ -9.90 -3,290.43 (2,311,414)$ -4.46 -1,481.68 (833,270)$ -1.61 -534.15 (56,321)$ -0.11 -36.10
Net Operating Income (NOI)
Total Operating Expenses
Operating Expenses
Effective Gross Income
© 1993 - 2014 Cash Flow Analyzer® http://RentalSoftware.com
Annual Property Operating DataJasmine Bv ALF-Memory Care
6835 Jasmine Bv
Port Richey, FL 34668
Column 1
Column 2
Potential Rental Income
Less: Vacancy & Credit Losses
Accounting
Advertising
Administration
Transportation
Housekeeping/Ldry
Insurance
Landscaping
Legal
Maintenance
Management Fee
Payroll
Pest Control
Professional Fees
Repairs
Supplies
Property Taxes
Payroll
Telephone
Other Utilities
Food/Beverage
Recruiting/Training
IT
Resident Care
Less: Funded Reserves and/or Improvements
Less: Annual Debt Service
Cash Flow Before Taxes
Net Operating Income (NOI)
Total Operating Expenses
Operating Expenses
Effective Gross Income
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
6,474,000$ 12.49 4,150.00 6,668,220$ 12.86 4,274.50 6,868,267$ 13.25 4,402.74 7,074,315$ 13.65 4,534.82 7,286,544$ 14.06 4,670.86
(323,700) -0.62 -207.50 (333,411) -0.64 -213.73 (343,413) -0.66 -220.14 (353,716) -0.68 -226.74 (364,327) -0.70 -233.54
6,150,300$ 11.86 3,942.50 6,334,809$ 12.22 4,060.78 6,524,853$ 12.59 4,182.60 6,720,599$ 12.96 4,308.08 6,922,217$ 13.35 4,437.32
28,285 0.05 18.13 28,992 0.06 18.58 29,717 0.06 19.05 30,460 0.06 19.53 31,222 0.06 20.01
84,856 0.16 54.39 86,977 0.17 55.75 89,151 0.17 57.15 91,380 0.18 58.58 93,665 0.18 60.04
90,513 0.17 58.02 92,775 0.18 59.47 95,095 0.18 60.96 97,472 0.19 62.48 99,909 0.19 64.04
45,256 0.09 29.01 46,388 0.09 29.74 47,547 0.09 30.48 48,736 0.09 31.24 49,955 0.10 32.02
226,282 0.44 145.05 231,939 0.45 148.68 237,737 0.46 152.40 243,681 0.47 156.21 249,773 0.48 160.11
67,884 0.13 43.52 69,582 0.13 44.60 71,321 0.14 45.72 73,104 0.14 46.86 74,932 0.14 48.03
13,577 0.03 8.70 13,916 0.03 8.92 14,264 0.03 9.14 14,621 0.03 9.37 14,986 0.03 9.61
28,285 0.05 18.13 28,992 0.06 18.58 29,717 0.06 19.05 30,460 0.06 19.53 31,222 0.06 20.01
33,942 0.07 21.76 34,791 0.07 22.30 35,661 0.07 22.86 36,552 0.07 23.43 37,466 0.07 24.02
323,700 0.62 207.50 333,411 0.64 213.73 343,413 0.66 220.14 353,716 0.68 226.74 364,327 0.70 233.54
1,574,920 3.04 1,009.56 1,614,293 3.11 1,034.80 1,654,651 3.19 1,060.67 1,696,017 3.27 1,087.19 1,738,417 3.35 1,114.37
16,971 0.03 10.88 17,395 0.03 11.15 17,830 0.03 11.43 18,276 0.04 11.72 18,733 0.04 12.01
22,628 0.04 14.51 23,194 0.04 14.87 23,774 0.05 15.24 24,368 0.05 15.62 24,977 0.05 16.01
33,942 0.07 21.76 34,791 0.07 22.30 35,661 0.07 22.86 36,552 0.07 23.43 37,466 0.07 24.02
28,285 0.05 18.13 28,992 0.06 18.58 29,717 0.06 19.05 30,460 0.06 19.53 31,222 0.06 20.01
311,137 0.60 199.45 318,916 0.62 204.43 326,889 0.63 209.54 335,061 0.65 214.78 343,437 0.66 220.15
393,730 0.76 252.39 403,573 0.78 258.70 413,663 0.80 265.17 424,004 0.82 271.80 434,604 0.84 278.59
22,628 0.04 14.51 23,194 0.04 14.87 23,774 0.05 15.24 24,368 0.05 15.62 24,977 0.05 16.01
277,195 0.53 177.69 284,125 0.55 182.13 291,228 0.56 186.68 298,509 0.58 191.35 305,971 0.59 196.14
452,563 0.87 290.10 463,877 0.89 297.36 475,474 0.92 304.79 487,361 0.94 312.41 499,545 0.96 320.22
28,285 0.05 18.13 28,992 0.06 18.58 29,717 0.06 19.05 30,460 0.06 19.53 31,222 0.06 20.01
79,199 0.15 50.77 81,179 0.16 52.04 83,208 0.16 53.34 85,288 0.16 54.67 87,420 0.17 56.04
118,798 0.23 76.15 121,768 0.23 78.06 124,812 0.24 80.01 127,932 0.25 82.01 131,131 0.25 84.06
4,302,863$ 8.30 2,758.25 4,412,053$ 8.51 2,828.24 4,524,021$ 8.73 2,900.01 4,638,839$ 8.95 2,973.61 4,756,578$ 9.18 3,049.09
157,652 0.30 101.06 159,228 0.31 102.07 160,820 0.31 103.09 162,429 0.31 104.12 164,053 0.32 105.16
1,689,786$ 3.26 1,083.20 1,763,528$ 3.40 1,130.47 1,840,012$ 3.55 1,179.49 1,919,332$ 3.70 1,230.34 2,001,586$ 3.86 1,283.07
(969,920) -1.87 -621.74 (969,920) -1.87 -621.74 (969,920) -1.87 -621.74 (969,920) -1.87 -621.74 (969,920) -1.87 -621.74
719,866$ 1.39 461.45 793,608$ 1.53 508.72 870,092$ 1.68 557.75 949,412$ 1.83 608.60 1,031,666$ 1.99 661.32
© 1993 - 2014 Cash Flow Analyzer® http://RentalSoftware.com
Jasmine Bv ALF-Memory Care
Benny Spensieri
813-391-1545
Time Net Operating Debt Cash Flow Incomes Cash Flow
Period Income Service Before Tax Taxes After Tax
Int Investment (5,410,500)$ (5,410,500)$
Year 1 (3,667,000) - (1,376,650) (5,043,650) - (5,043,650)
Year 2 (3,756,425) - (1,376,650) (5,133,075) - (5,133,075)
Year 3 (934,763) - (1,376,650) (2,311,414) - (2,311,414)
Year 4 136,651 - (969,920) (833,270) - (833,270)
Year 5 913,599 - (969,920) (56,321) - (56,321)
Year 6 1,689,786 - (969,920) 719,866 - 719,866
Year 7 1,763,528 - (969,920) 793,608 - 793,608
Year 8 1,840,012 - (969,920) 870,092 - 870,092
Year 9 1,919,332 - (969,920) 949,412 - 949,412
Year 10 2,001,586 - (969,920) 1,031,666 - 1,031,666
6835 Jasmine Bv
Port Richey, FL 34668
MIP Payments
$(6,000,000)
$(5,000,000)
$(4,000,000)
$(3,000,000)
$(2,000,000)
$(1,000,000)
$
$1,000,000
$2,000,000
1 2 3 4 5 6 7 8 9 10
Cash Flow After Taxes
Cash Flow Before Taxes
© 1993 - 2014 Cash Flow Analyzer® http://RentalSoftware.com
Jasmine Bv ALF-Memory Care
6835 Jasmine Bv
Port Richey, FL 34668Benny Spensieri
813-391-1545
Time Initial Investment Cash Flow Cash on Cash Income Cash Flow Cash on Cash
Period Adj for Refinance Before Taxes Before Taxes Taxes After Taxes After Taxes
Year 1 5,410,500$ (5,043,650)$ -93.22% $ (5,043,650)$ -93.22%
Year 2 5,410,500 (5,133,075) -94.87% - (5,133,075) -94.87%
Year 3 5,410,500 (2,311,414) -42.72% - (2,311,414) -42.72%
Year 4 6,300,363 (833,270) -13.23% - (833,270) -13.23%
Year 5 6,300,363 (56,321) -0.89% - (56,321) -0.89%
Year 6 6,300,363 719,866 11.43% - 719,866 11.43%
Year 7 6,300,363 793,608 12.60% - 793,608 12.60%
Year 8 6,300,363 870,092 13.81% - 870,092 13.81%
Year 9 6,300,363 949,412 15.07% - 949,412 15.07%
Year 10 6,300,363 1,031,666 16.37% - 1,031,666 16.37%
-100.00%
-80.00%
-60.00%
-40.00%
-20.00%
0.00%
20.00%
1 2 3 4 5 6 7 8 9 10
After Taxes
Before Taxes
© 1993 - 2014 Cash Flow Analyzer® http://RentalSoftware.com
Jasmine Bv ALF-Memory Care
6835 Jasmine Bv
Port Richey, FL 34668Benny Spensieri
813-391-1545
Time Net Operating Cap Rate on Cost Resale
Period Income (NOI) 21,642,000$ Value
Year 1 (3,667,000)$ -16.94% $
Year 2 (3,756,425) -17.36% -
Year 3 (934,763) -4.32% -
Year 4 136,651 0.63% 2,277,509
Year 5 913,599 4.22% 15,226,658
Year 6 1,689,786 7.81% 28,163,097
Year 7 1,763,528 8.15% 29,392,137
Year 8 1,840,012 8.50% 30,666,864
Year 9 1,919,332 8.87% 31,988,861
Year 10 2,001,586 9.25% 33,359,763
-20.00%
-15.00%
-10.00%
-5.00%
0.00%
5.00%
10.00%
1 2 3 4 5 6 7 8 9 10
© 1993 - 2014 Cash Flow Analyzer® http://RentalSoftware.com
Jasmine Bv ALF-Memory Care
6835 Jasmine Bv
Port Richey, FL 34668Benny Spensieri
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 $ -100.00% $ (15,983,188)$ (15,983,188)$ $ (15,983,188)$ (15,983,188)$ (21,393,688)$
Year 2 - 0.00% - (15,716,926) (15,716,926) - (15,716,926) (15,716,926) 266,262
Year 3 - 0.00% - (15,431,416) (15,431,416) - (15,431,416) (15,431,416) 285,510
Year 4 2,209,183 0.00% (889,863) (14,219,413) (12,900,092) - (12,900,092) (12,900,092) 2,531,324
Year 5 14,769,858 568.57% (889,863) (13,882,473) (2,478) - (2,478) (2,478) 12,897,614
Year 6 27,318,204 84.96% (889,863) (13,530,055) 12,898,287 - 12,898,287 12,898,287 12,900,764
Year 7 28,510,373 4.36% (889,863) (13,161,446) 14,459,064 - 14,459,064 14,459,064 1,560,778
Year 8 29,746,858 4.34% (889,863) (12,775,904) 16,081,092 - 16,081,092 16,081,092 1,622,027
Year 9 31,029,195 4.31% (889,863) (12,372,650) 17,766,683 - 17,766,683 17,766,683 1,685,591
Year 10 32,358,970 4.29% (889,863) (11,950,870) 19,518,237 - 19,518,237 19,518,237 1,751,555
$(20,000,000)
$(15,000,000)
$(10,000,000)
$(5,000,000)
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
1 2 3 4 5 6 7 8 9 10
© 1993 - 2014 Cash Flow Analyzer® http://RentalSoftware.com
Jasmine Bv ALF-Memory Care
6835 Jasmine Bv
Port Richey, FL 34668Benny Spensieri
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 (5,043,650) (21,393,688) (26,437,339) 5,410,500 -488.63% Hold
After Year Year 2 (5,133,075) 266,262 (4,866,813) (15,983,188) 0.00% Hold
5 Year 3 (2,311,414) 285,510 (2,025,903) (15,716,926) 0.00% Hold
Year 4 (833,270) 2,531,324 1,698,054 (15,431,416) 0.00% Hold
Year 5 (56,321) 12,897,614 12,841,293 (12,010,229) 0.00% Hold
Year 6 719,866 12,900,764 13,620,630 887,385 1534.92% Hold
Year 7 793,608 1,560,778 2,354,386 13,788,149 17.08% Hold
Year 8 870,092 1,622,027 2,492,119 15,348,927 16.24% Hold
Year 9 949,412 1,685,591 2,635,002 16,970,954 15.53% Hold
Year 10 1,031,666 1,751,555 2,783,220 18,656,545 14.92% Hold
Required Return on
EquityTime Period
-500.00%
0.00%
500.00%
1000.00%
1500.00%
2000.00%
1 2 3 4 5 6 7 8 9 10
Return on Equity (ROE)
© 1993 - 2014 Cash Flow Analyzer® http://RentalSoftware.com
Jasmine Bv ALF-Memory Care
6835 Jasmine Bv
Port Richey, FL 34668 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 - (5,043,650) 0.00% 0.00% 100.00% 0.00% 100.00%
Year 2 - (5,133,075) 0.00% 0.00% 100.00% 0.00% 100.00%
Year 3 3,237,000 (5,386,564) 95.00% 166.41% -66.41% 176.43% -76.43%
Year 4 4,531,800 (5,138,480) 95.00% 113.39% -13.39% 120.55% -20.55%
Year 5 5,502,000 (5,283,221) 95.00% 96.02% 3.98% 101.92% -1.92%
Year 6 6,474,000 (5,430,434) 95.00% 83.88% 16.12% 88.90% 11.10%
Year 7 6,668,220 (5,541,201) 95.00% 83.10% 16.90% 87.97% 12.03%
Year 8 6,868,267 (5,654,762) 95.00% 82.33% 17.67% 87.06% 12.94%
Year 9 7,074,315 (5,771,187) 95.00% 81.58% 18.42% 86.17% 13.83%
Year 10 7,286,544 (5,890,551) 95.00% 80.84% 19.16% 85.30% 14.70%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
140.00%
160.00%
180.00%
1 2 3 4 5 6 7 8 9 10
BreakEven Occupancy
BreakEven Occupancy with Cash on Cash Requirment
© 1993 - 2014 Cash Flow Analyzer® http://RentalSoftware.com
813-391-1545
Benny Spensieri
CRES Corp International
CRES Corp International, LLC1228 E 7th Ave0Tampa, Fl 33605
Commercial Real Estate Services - Financial Services – Management & Leasing Services
CRES Corp International, LLC (CCI) is a Commercial Real Estate firm offering brokerage, finance and
management services.
Our unique business model brings to our property owners and investors the means to get transactions
completed where all parties are satisfied.
CRES Corp International offers the Preferred Investor Program (PIP), where our Clients receive the following
benefits:
Property Owners
No Exclusive Listing Agreement
Property introduced only to Pre-Qualified Investors who:
Have Sufficient Funds for RE Purchases
Have Experience in Investing
Make Reasonable Offers
Investors
Receive Information on “Off-Market” Property
Receive information on “Pre-Listed” Property
Minimal Competition
Great Price on their RE Purchases
CRES Corp International specializes in the following commercial property:
Apartments
Hotels
MHP/RV
Office Buildings/Complexes
Medical Offices & Centers
Vacant Land (Development)
For further information contact Benny Spensieri – 813-391-1545 or [email protected]
Benny Spensieri
813-391-1545
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.