sarasota 67-125-bd alf bldg...67-125 bed assisted living business reactivation sarasota 67-125-bd...

813-391-1554

[email protected]

67-125 Bed Assisted Living Business Reactivation

Sarasota 67-125-Bd ALF Bldg

5660 Mauna Loa Bv

Sarasota, FL 34240

Property Includes 21,000 SF Former ALF Situated on 7.46-acres

Presented by

CRES Corp Internatiional1228 E 7th Ave

Seller Financing Offered to Qualified Purchaser

125-Bed ALF-Memory Care Expansion Opportunity

Tampa, FL 33605

Potential Rental Income 672,000$ Purchase/Asking Price 4,200,000$ Property Type Commercial

Other Income - Improvements - No. of Units 67

Total Vacancy and Credits (33,600) Other - Price Per Unit 62,687$

Operating Expenses (1,129,516)$ Closing Costs - Total Sq Ft 21,000

Annual Reserves: (500,000)$ Finance Points - Price Per Sq Ft 200$

Net Operating Income (NOI) (991,116)$ Income per Unit 10,030$

MIP Payments $ Total Acquisition Cost 4,200,000$ Expenses per Unit (16,858)$

Annual Reserves: $ Debt Service: (218,400)$

Mortgage (s) 3,360,000$

Cash Flow Before Taxes (1,209,516)$

- Down Payment / Investment 840,000$

Cash Flow After Taxes (1,209,516)$

% of Asking % of Cost

Rental Growth Rate: 235.00% Down Payment: 840,000$ 20.00% 20.00%

Expense Growth Rate: 3.00% Initial Loan Balance: 3,360,000$ 80.00% 80.00%

Appreciation Rate 12.00%

Marginal Tax Rate: 0.00% Loan Amount Interest Rate Term Payment

Capital Gain Tax Rate: 0.00% 3,360,000$ 6.50% 30 $18,200

$ 5.00% 25 $19,642

$ 4.50% 25 $24,217

Year 1 Year 3 Year 7

Debt Coverage Ratio (DCR) (4.54) 4.17 6.21

Loan-to-Value Ratio (LVR) 64.6% 51.4% 34.4%

Capitalization Rate Based on Cost -23.60% 23.41% 42.95%

Capitalization Rate Based on Resale Price -19.05% 15.36% 15.31%

Gross Rent Multiplier 6.25 2.79 2.75

4.00% (380,035) 1,955,235 7,896,004

10.00% (405,124) 1,439,765 5,134,383

Cash on Cash Return - Before Taxes -143.99% 88.98% Can’t Comp.

Cash on Cash Return - After Taxes -143.99% 88.98% Can’t Comp.

Internal Rate of Return - Before Taxes 40.65% 43.29%

Internal Rate of Return - After Taxes 40.65% 43.29%

29.22% 28.80%

29.22% 28.80%

Financial Measurements Notes / Discussion

Loan InformationAssumptions

The information, calculations and data presented in this report are believed to be accurate but are not guaranteed. The information contained in this report shall not be considered as

a substitution for legal, accounting or other professional advice. Please seek proper legal and tax advice as appropriate before making investments.

Modified Internal Rate of Return - Before Taxes

Modified Internal Rate of Return - After Taxes

Net Present Value (NPV) - B/ Taxes

Net Present Value (NPV) - A/Taxes

Disclaimer: All information presented is believed to be accurate.

Income Taxes: Benefit (Expense) @ 0%


5660 Mauna Loa Bv

Sarasota, FL 34240

Income, Expenses & Cash Flow

0

CRES Corp Internatiional

813-391-1554

Property Overview

0

813-391-1554

[email protected]

21,000 SF Former ALF-Memory Care

67-125-Bed ALF-Memory Care

Proposed Development

0

1228 E 7th Ave


5660 Mauna Loa Bv

Sarasota, FL 34240

HIGHLIGHTS

Property Description

CRES Corp Internatiional

Tampa, FL 33605

7.46-Acres - Zoning Permits 180-bds

Seller Financing Offered

This Report includes a Financial Projection Analysis based on the

following:

-$4.2 Million Purchase Price

-$840,000 Down Payment

-Seller Financing to include:

-$3,360,000 Loan Balance

-6.5% Fixed Interest Rate (Interest Only Years 1-2)

-25-Year Amortization (Remaining 3-Years)

-5-Year Balloon

Anticipated costs for ACHA required repairs and improvements

on the 21,000 sq ft structure are $500,000, which are included

within Year 1 of this Financial Projection Report.

Projections assume new owner will have business licensed and in

operation within the initial 6 months of ownership and will have

a minimum 30 Residents in place during Year 1 or ownership.

Projections also assume the minimum bed rate per Resident will

be $2,800/mo.

Year 4 of ownership assumes plans for a 58-Bed expansion with a

total cost of $2M, bringing the total number of beds to 125.

Expansion also assumes Owner will borrow 80% of the combined

$2M expansion costs and the payoff of the remaining balance of

the Seller Provided Note equal to a new refi amount of

$4,346,870 offering an fixed interest rate of 5%, amortized over

25-Years.

This Financial Projection Report offers a tentative strategy for the

new owner to acquire the property, reinstall the license for 67-

Beds, reactivate the business.

CRES Corp International, Pharus Group and Pharus Funding

Partners can assist with structuring the financing, business

strategy and management of the Assisted Living-Memory Care

Facility upon request.

Contact Benny Spensieri for further information on this

opportunity - 813-391-1545 -

[email protected].

0

813-391-1554Sarasota, FL 34240


5660 Mauna Loa Bv

Cash Flow AnalysisSarasota 67-125-Bd ALF Bldg

5660 Mauna Loa Bv

Sarasota, FL 34240

Potential Rental Income 672,000$ 2,251,200$ 2,296,224$ 2,388,298$ 2,436,064$

Less: Vacancy & Credit Losses (33,600) (112,560) (114,811) (119,415) (121,803)

Effective Gross Income 638,400$ 2,138,640$ 2,181,413$ 2,268,883$ 2,314,261$

Less: Funded Reserves and/or Improvements (500,000) - - - (2,000,000)

Less: Operating Expenses (1,129,516) (1,163,401) (1,198,304) (1,234,253) (1,271,280)

Net Operating Income (NOI) (991,116)$ 975,239$ 983,109$ 1,034,630$ (957,019)$

Less: Annual Debt Service (218,400) (218,400) (235,707) (235,707) (290,603)

CASH FLOW Before Taxes (1,209,516)$ 756,839$ 747,403$ 798,924$ (1,247,622)$

Projected Sales Price 5,204,000$ 5,768,480$ 6,400,698$ 7,108,781$ 9,901,835$

Less: Selling Expenses (156,120) (173,054) (192,021) (213,263) (297,055)

Adjusted Projected Sales Price 5,047,880$ 5,595,426$ 6,208,677$ 6,895,518$ 9,604,780$

Less: Mortgage(s) Balance Payoff (3,360,000) (3,360,000) (3,290,720) (3,217,895) (4,260,352)

SALE PROCEEDS Before Taxes 1,687,880$ 2,235,426$ 2,917,957$ 3,677,623$ 5,344,428$

Cash Generated in Current Year (1,209,516)$ 756,839$ 747,403$ 798,924$ (1,247,622)$

Cash Generated in Previous Years n/a (1,209,516) (452,677) 294,725 1,093,649

Cash Generated from Property Sale 1,687,880 2,235,426 2,917,957 3,677,623 5,344,428

Cash Inflow (Outflow) from Refinancing - - - - 1,138,975

Original Initial Investment (840,000) (840,000) (840,000) (840,000) (840,000)

(361,636)$ 942,748$ 2,372,682$ 3,931,271$ 5,489,430$

Debt Coverage Ratio (DCR) (4.54) 4.47 4.17 4.39 (3.29)

Loan-to-Value Ratio (LVR) 64.6% 58.2% 51.4% 45.3% 43.0%

Capitalization Rate Based on Cost -23.60% 23.22% 23.41% 24.63% -22.79%

Capitalization Rate Based on Resale Price -19.05% 16.91% 15.36% 14.55% -9.67%

Break-Even Ratio 274.99% 61.38% 62.45% 61.55% 146.21%

Operating Expense Ratio 176.93% 54.40% 54.93% 54.40% 54.93%

Cash-on-Cash Return with Equity -43.05% 77.28% 63.97% 53.41% 42.37%

Cash-on-Cash Return - Before Taxes -143.99% 90.10% 88.98% 95.11% Can’t Comp.

Financial Measurements

Year 4 Year 5

Cash Position

Rental Activity Analysis

Total Potential CASH Generated

Property Resale Analysis

Year 1 Year 2 Year 3

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813-391-1554

6/8/2019 1:33 PM © 1993 - 2019 Cash Flow Analyzer® https://RentalSoftware.com

Cash Flow AnalysisSarasota 67-125-Bd ALF Bldg

5660 Mauna Loa Bv

Sarasota, FL 34240

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

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

4,200,000$ 4,284,000$ 4,369,680$ 4,457,074$ 4,546,215$

(210,000) (214,200) (218,484) (222,854) (227,311)

3,990,000$ 4,069,800$ 4,151,196$ 4,234,220$ 4,318,904$

- - - - -

(2,200,000) (2,266,000) (2,333,980) (2,403,999) (2,476,119)

1,790,000$ 1,803,800$ 1,817,216$ 1,830,221$ 1,842,785$

(290,603) (290,603) (290,603) (290,603) (290,603)

1,499,397$ 1,513,197$ 1,526,613$ 1,539,618$ 1,552,182$

10,790,055$ 11,784,862$ 12,899,045$ 14,146,931$ 15,544,562$

(323,702) (353,546) (386,971) (424,408) (466,337)

10,466,354$ 11,431,316$ 12,512,074$ 13,722,523$ 15,078,226$

(4,159,400) (4,053,810) (3,943,369) (3,827,855) (3,707,033)

6,306,954$ 7,377,506$ 8,568,705$ 9,894,668$ 11,371,192$

1,499,397$ 1,513,197$ 1,526,613$ 1,539,618$ 1,552,182$

(153,973) 1,345,424 2,858,621 4,385,234 5,924,852

6,306,954 7,377,506 8,568,705 9,894,668 11,371,192

1,138,975 1,138,975 1,138,975 1,138,975 1,138,975

(840,000) (840,000) (840,000) (840,000) (840,000)

7,951,353$ 10,535,102$ 13,252,914$ 16,118,495$ 19,147,201$

6.16 6.21 6.25 6.30 6.34

38.5% 34.4% 30.6% 27.1% 23.8%

42.62% 42.95% 43.27% 43.58% 43.88%

16.59% 15.31% 14.09% 12.94% 11.85%

59.30% 59.68% 60.06% 60.46% 60.86%

55.14% 55.68% 56.22% 56.78% 57.33%

46.07% 40.97% 36.84% 33.44% 30.61%

Can’t Comp. Can’t Comp. Can’t Comp. Can’t Comp. Can’t Comp.

Year 8

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813-391-1554

Year 6 Year 9Year 7 Year 10

6/8/2019 1:33 PM © 1993 - 2019 Cash Flow Analyzer® https://RentalSoftware.com

Annual Property Operating DataSarasota 67-125-Bd ALF Bldg

5660 Mauna Loa Bv

Sarasota, FL 34240 0

Column 1

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 672,000$ 2.67 835.82 2,251,200$ 8.93 2,800.00 2,296,224$ 9.11 2,856.00 2,388,298$ 9.48 2,970.52 2,436,064$ 9.67 3,029.93

Less: Vacancy & Credit Losses (33,600) -0.13 -41.79 (112,560) -0.45 -140.00 (114,811) -0.46 -142.80 (119,415) -0.47 -148.53 (121,803) -0.48 -151.50

638,400$ 2.53 794.03 2,138,640$ 8.49 2,660.00 2,181,413$ 8.66 2,713.20 2,268,883$ 9.00 2,821.99 2,314,261$ 9.18 2,878.43

1,129,516$ 4.48 1,404.87 1,163,401$ 4.62 1,447.02 1,198,304$ 4.76 1,490.43 1,234,253$ 4.90 1,535.14 1,271,280$ 5.04 1,581.19

Less: Funded Reserves and/or Improvements 500,000 1.98 621.89 - 0.00 0.00 - 0.00 0.00 - 0.00 0.00 2,000,000 7.94 2,487.56

(991,116)$ -3.93 -1,232.73 975,239$ 3.87 1,212.98 983,109$ 3.90 1,222.77 1,034,630$ 4.11 1,286.85 (957,019)$ -3.80 -1,190.32

Less: Annual Debt Service (218,400) -0.87 -271.64 (218,400) -0.87 -271.64 (235,707) -0.94 -293.17 (235,707) -0.94 -293.17 (290,603) -1.15 -361.45

Cash Flow Before Taxes (1,209,516)$ -4.80 -1,504.37 756,839$ 3.00 941.34 747,403$ 2.97 929.61 798,924$ 3.17 993.69 (1,247,622)$ -4.95 -1,551.77


Total Operating Expenses

Operating Expenses


813-391-1554

© 1993 - 2019 Cash Flow Analyzer® https://RentalSoftware.com

Annual Property Operating DataSarasota 67-125-Bd ALF Bldg

5660 Mauna Loa Bv

Sarasota, FL 34240

Column 1

Column 2

Potential Rental Income

Less: Vacancy & Credit Losses

Less: Funded Reserves and/or Improvements

Less: Annual Debt Service

Cash Flow Before Taxes


Total Operating Expenses

Operating Expenses


0

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

4,200,000$ 16.67 5,223.88 4,284,000$ 17.00 5,328.36 4,369,680$ 17.34 5,434.93 4,457,074$ 17.69 5,543.62 4,546,215$ 18.04 5,654.50

(210,000) -0.83 -261.19 (214,200) -0.85 -266.42 (218,484) -0.87 -271.75 (222,854) -0.88 -277.18 (227,311) -0.90 -282.72

3,990,000$ 15.83 4,962.69 4,069,800$ 16.15 5,061.94 4,151,196$ 16.47 5,163.18 4,234,220$ 16.80 5,266.44 4,318,904$ 17.14 5,371.77

2,200,000$ 8.73 2,736.32 2,266,000$ 8.99 2,818.41 2,333,980$ 9.26 2,902.96 2,403,999$ 9.54 2,990.05 2,476,119$ 9.83 3,079.75

- 0.00 0.00 - 0.00 0.00 - 0.00 0.00 - 0.00 0.00 - 0.00 0.00

1,790,000$ 7.10 2,226.37 1,803,800$ 7.16 2,243.53 1,817,216$ 7.21 2,260.22 1,830,221$ 7.26 2,276.39 1,842,785$ 7.31 2,292.02

(290,603) -1.15 -361.45 (290,603) -1.15 -361.45 (290,603) -1.15 -361.45 (290,603) -1.15 -361.45 (290,603) -1.15 -361.45

1,499,397$ 5.95 1,864.92 1,513,197$ 6.00 1,882.09 1,526,613$ 6.06 1,898.77 1,539,618$ 6.11 1,914.95 1,552,182$ 6.16 1,930.57

813-391-1554



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813-391-1554

Time Net Operating Debt Cash Flow Incomes Cash Flow

Period Income Service Before Tax Taxes After Tax

Int Investment (840,000)$ (840,000)$

Year 1 (991,116) - (218,400) (1,209,516) - (1,209,516)

Year 2 975,239 - (218,400) 756,839 - 756,839

Year 3 983,109 - (235,707) 747,403 - 747,403

Year 4 1,034,630 - (235,707) 798,924 - 798,924

Year 5 (957,019) - (290,603) (1,247,622) - (1,247,622)

Year 6 1,790,000 - (290,603) 1,499,397 - 1,499,397

Year 7 1,803,800 - (290,603) 1,513,197 - 1,513,197

Year 8 1,817,216 - (290,603) 1,526,613 - 1,526,613

Year 9 1,830,221 - (290,603) 1,539,618 - 1,539,618

Year 10 1,842,785 - (290,603) 1,552,182 - 1,552,182

5660 Mauna Loa Bv

Sarasota, FL 34240

MIP Payments

$(1,500,000)

$(1,000,000)

$(500,000)

$

$500,000

$1,000,000

$1,500,000

$2,000,000

1 2 3 4 5 6 7 8 9 10

Cash Flow After Taxes

Cash Flow Before Taxes



5660 Mauna Loa Bv

Sarasota, FL 342400

813-391-1554

Time Net Operating Cap Rate on Cost Resale

Period Income (NOI) 4,200,000$ Value

Year 1 (991,116)$ -23.60% 5,204,000$

Year 2 975,239 23.22% 5,768,480

Year 3 983,109 23.41% 6,400,698

Year 4 1,034,630 24.63% 7,108,781

Year 5 (957,019) -22.79% 9,901,835

Year 6 1,790,000 42.62% 10,790,055

Year 7 1,803,800 42.95% 11,784,862

Year 8 1,817,216 43.27% 12,899,045

Year 9 1,830,221 43.58% 14,146,931

Year 10 1,842,785 43.88% 15,544,562

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

1 2 3 4 5 6 7 8 9 10



5660 Mauna Loa Bv

Sarasota, FL 342400

813-391-1554

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 5,047,880$ 20.19% $ (3,360,000)$ 1,687,880$ $ 1,687,880$ 1,687,880$ 847,880$

Year 2 5,595,426 10.85% - (3,360,000) 2,235,426 - 2,235,426 2,235,426 547,546

Year 3 6,208,677 10.96% - (3,290,720) 2,917,957 - 2,917,957 2,917,957 682,531

Year 4 6,895,518 11.06% - (3,217,895) 3,677,623 - 3,677,623 3,677,623 759,666

Year 5 9,604,780 39.29% 1,138,975 (4,260,352) 6,483,403 - 6,483,403 6,483,403 2,805,780

Year 6 10,466,354 8.97% 1,138,975 (4,159,400) 7,445,929 - 7,445,929 7,445,929 962,526

Year 7 11,431,316 9.22% 1,138,975 (4,053,810) 8,516,481 - 8,516,481 8,516,481 1,070,552

Year 8 12,512,074 9.45% 1,138,975 (3,943,369) 9,707,680 - 9,707,680 9,707,680 1,191,199

Year 9 13,722,523 9.67% 1,138,975 (3,827,855) 11,033,643 - 11,033,643 11,033,643 1,325,963

Year 10 15,078,226 9.88% 1,138,975 (3,707,033) 12,510,167 - 12,510,167 12,510,167 1,476,524

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

1 2 3 4 5 6 7 8 9 10



5660 Mauna Loa Bv

Sarasota, FL 342400

813-391-1554

Time Net Operating Mortgage Debt Coverage

Period Income Payments Before Taxes

Year 1 (991,116)$ (218,400)$ (4.54)

Year 2 975,239 (218,400) 4.47

Year 3 983,109 (235,707) 4.17

Year 4 1,034,630 (235,707) 4.39

Year 5 (957,019) (290,603) (3.29)

Year 6 1,790,000 (290,603) 6.16

Year 7 1,803,800 (290,603) 6.21

Year 8 1,817,216 (290,603) 6.25

Year 9 1,830,221 (290,603) 6.30

Year 10 1,842,785 (290,603) 6.34

(6.00)

(4.00)

(2.00)

-

2.00

4.00

6.00

8.00

1 2 3 4 5 6 7 8 9 10



5660 Mauna Loa Bv

Sarasota, FL 342400

813-391-1554

Before Taxes After Taxes

Year 1 -43.05% -43.05%

Year 2 30.01% 30.01%

Year 3 40.65% 40.65%

Year 4 43.30% 43.30%

Year 5 43.16% 43.16%

Year 6 43.55% 43.55%

Year 7 43.29% 43.29%

Year 8 42.81% 42.81%

Year 9 42.25% 42.25%

Year 10 41.69% 41.69%

Internal Rate of Return (IRR)Time Period

-50.00%

-40.00%

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

1 2 3 4 5 6 7 8 9 10

IRR After Tax

IRR Before Tax



5660 Mauna Loa Bv

Sarasota, FL 342400

813-391-1554

Time

Period Before Taxes After Taxes

Year 1 -43.05% -43.05%

Year 2 20.83% 20.83%

Year 3 29.22% 29.22%

Year 4 30.70% 30.70%

Year 5 29.76% 29.76%

Year 6 29.35% 29.35%

Year 7 28.80% 28.80%

Year 8 27.86% 27.86%

Year 9 26.79% 26.79%

Year 10 25.73% 25.73%

Modifed Internal Rate of Return

-50.00%

-40.00%

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

1 2 3 4 5 6 7 8 9 10

MIRR - After Taxes

MIRR - Before Taxes



5660 Mauna Loa Bv

Sarasota, FL 342400

813-391-1554

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 (1,209,516) 847,880 (361,636) 840,000 -43.05% Hold

After Year Year 2 756,839 547,546 1,304,384 1,687,880 77.28% Hold

5 Year 3 747,403 682,531 1,429,934 2,235,426 63.97% Hold

Year 4 798,924 759,666 1,558,590 2,917,957 53.41% Hold

Year 5 (1,247,622) 2,805,780 1,558,158 3,677,623 42.37% Hold

Year 6 1,499,397 962,526 2,461,923 5,344,428 46.07% Hold

Year 7 1,513,197 1,070,552 2,583,750 6,306,954 40.97% Hold

Year 8 1,526,613 1,191,199 2,717,812 7,377,506 36.84% Hold

Year 9 1,539,618 1,325,963 2,865,581 8,568,705 33.44% Hold

Year 10 1,552,182 1,476,524 3,028,706 9,894,668 30.61% Hold

Required Return on

EquityTime Period

-60.00%

-40.00%

-20.00%

0.00%

20.00%

40.00%

60.00%

80.00%

1 2 3 4 5 6 7 8 9 10

Return on Equity (ROE)



5660 Mauna Loa Bv

Sarasota, FL 34240 0

813-391-1554

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 1 672,000 (1,847,916) 95.00% 274.99% -174.99% 282.49% -182.49%

Year 2 2,251,200 (1,381,801) 95.00% 61.38% 38.62% 63.62% 36.38%

Year 3 2,296,224 (1,434,010) 95.00% 62.45% 37.55% 64.65% 35.35%

Year 4 2,388,298 (1,469,959) 95.00% 61.55% 38.45% 63.66% 36.34%

Year 5 2,436,064 (3,561,883) 95.00% 146.21% -46.21% 148.28% -48.28%

Year 6 4,200,000 (2,490,603) 95.00% 59.30% 40.70% 60.50% 39.50%

Year 7 4,284,000 (2,556,603) 95.00% 59.68% 40.32% 60.85% 39.15%

Year 8 4,369,680 (2,624,583) 95.00% 60.06% 39.94% 61.22% 38.78%

Year 9 4,457,074 (2,694,602) 95.00% 60.46% 39.54% 61.59% 38.41%

Year 10 4,546,215 (2,766,722) 95.00% 60.86% 39.14% 61.97% 38.03%

0.00%

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BreakEven Occupancy

BreakEven Occupancy with Cash on Cash Requirment


CRES Corp International

CRES Corp Internatiional1228 E 7th Ave0Tampa, FL 33605

[email protected]

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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]

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813-391-1554

[email protected]

Terms & Definitions

Tampa, FL 33605

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CRES Corp Internatiional1228 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.

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