Ottawa Real Estate Investors Organization

Hello Again Everyone,

I have an amazing deal available for the right investor. It is the middle unit of a 3 row townhouse in centertown. It is 6 bedroom and 2 bathroom home currently rented to students on one single lease for $3300 per month. ($39,600 per year) The lease is until the end of August and includes everything, even internet and cable hydro, water and oil. This lease can be renegotiated in September not to include certain items. I have recieved all the financials from the seller and this deal is great. Total expenses are only $14,210 which includes taxes, as well as maintainence and management at 5% each.

The purchase price is currently at $264,500 and the seller has about $80,000 equity remaining in the building. Comparables are selling around the 300,000 range. I am absolutley positive he will drop his price much more after the property inspection. There is quite a bit of work required here which I will try to have the seller complete before closing, otherwise he will discount his price! He is very reasonable and great to work and negotiate with.

With 5% down and 2% allowed for closing costs and $340 for a property inspection the total investment to close is only $18,855. (probably less with adjustments at close for last months rent)
With debt servicing at 4.5% over 35 years and 5% allowed for vacancy, the positive cash flow from this property will be $8,576,(45.5%ROI) and mortgage pay down will be $3,190,(16.9%ROI)

We must move quickly on this deal, property inspection and financing deadlines are both set for 5 business days from today. Tuesday June 30th, although I am positive I can negotiate a slight extensione from the seller. Closing is set for July 28th.

As I will be out of town this weekend and out of the country for about 6 weeks this summer I am finding it difficult to work around closing and all other aspects of this deal. This being the case I am looking to assign this contract to another investor for $2,500. They will then take my place on the Agreement of Purchase and Sale. I will however walk through the deal with you and continue to negotiate and advise you through everything, if you wish, as I have on my past assignments. Then it becomes your amazing deal. We all win.

If someone is however looking for a hands off real estate investment I can work it into my life to close on this property. The requirements for such an investor would be a minimum $30,000 investment to pay for closing costs, down payment, and required repairs as well as a reserve fund. They must also be able to qualify for finanancing.

Assignment:
Total Investment (closing costs, down payment, inspection, finders fee) ( does not include repairs)
$21,355
55.1%ROI in cashflow and mortgage paydown per year
166.2%ROI in equity after repairs are done

JV Partner:
Total Investment
$30,000
16.3%ROI in cashflow and mortgage paydown per year
59.1%ROI in repaired comparable market value.

FIRST COME FIRST SERVE!!!
My phone will be shut off at 11:00 pm tonight and turned on again at 6:00 am. I am leaving for Toronto at 3:00pm so if you wish to take the assignement option, we should meet before then.

Joshua Hayward
Professional Real Estate Investor
REAL Investments
613.806.4806. Cell
866.738.9765. Fax
Hayward.Joshua@Gmail.com