YouTube presentation (Pete Schnepp) describing an investment deal for 24 individually-parceled condos (Woody Creek). Covers negotiated seller-financed loan terms (6‑year step-up note), conservative financial projections (16–20% IRR, ~20% average annual return, doubling investor capital in ~6 years), basic planned cosmetic value‑adds, and immediate operational readiness due to two vacant units for turnover/modeling.
Right. Investment highlights. This deal has no banks. Okay. The bank is the seller and we negotiated this with the seller. The seller is the person that built this property 12 years ago. But we've got incredible terms here. It's a six year term step up rate starting at 3.25% for the first two years, goes up to three, seven, five for year three and four and then four and a half for five and six. So it's a blended rate at 3.88% I mentioned it's a six year hold. We actually also negotiate negotiated into this deal that we can ext this loan, this note for an extra year for only a half a percent. It's ungodly cheap. Like any bank or other way that you're going to extend a loan is going to charge at least a point, maybe two. So it just gives us an extra year if we need to, or even if we want to. If the rates are not better than what we've got right now and we're cash flowing, it gives us another option, strategic value add. Like I said, we're doing some cosmetic simple stuff on a 12 year old building. There's nothing major but the market rents are just way below market. We're going to get into that a little bit more. This 2009, 95 per month dollar amount is actually less than the average of the comps. Okay. And so we're being ultra conservative and there's more to come on that exit strategy flexibility. So this is not your typical apartment. These are 24 individually parceled condos. So we are buying them together. The seller built them together as a package, but it just gives us one more option. Should I say in the future if we wanted to sell off the units individually? I don't know that that is will be the right strategy, but options are good. Okay. The financial projections on this, when we pencil this out super conservatively which we're going to get into, are incredible. 16 to 20% IRR over a 20% average annual return and more than doubling your money in six years for the investors. All right, right now we've got two vacant units which gives us immediate access to go in and get some work done, get our system dialed in and either have a model home or just keep things turning. We've got a whole turnover schedule planned and it'll be nice to really just get started without having to wait.
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