Pete Schnepp breaks down the investment terms for Woody Creek Condos: $5.5M purchase price, $2M down payment plus reserves, a six-year projected hold, and two investor classes with different minimums and return structures.
$5.5 million.
$2,000,000.
Six years (offering shows 10 years but speaker says looking at six years).
$50,000.
Minimum $250,000; 8% preferred return.
Highlights Purchase price on this property is five and a half million. We are putting in two million between the down payment and the capex and reserves. Minimum investment in this property is $50,000. We are projecting a six year hold. We put in 10 years but really we're looking at six years and we could talk about that a little bit more. We've got two investment classes. Class A is 250 and up investment dollar wise and with that we are offering an 8% preferred return 7030 initial split until 17% IRR is reached to the investors and then the split moves to 50 50. And if you're not familiar with this, what that means is, you know what if we hit it out of the park on this deal and we really kill it, we over project then we get to share a little bit more of the upside, that's all that is. Class B is a $50,000 minimum that comes with a 5% preferred return, 6040 initial split and a 15 IRR hurdle until the 5050 kicks in. And later on in the deck we'll talk about, we'll show you what an example investment returns look like in terms of dollars and cents.
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