Need 1.5 Million for 48.5% Cash on Cash Return over 2 years!!
Hello BP,
I have a client who has everything in place to convert a hotel into a retirement facility. He has done a Market study, which validates the demand for the assisted living facility (Available upon request). See below for details of deal.
Looking for investment/loan of $1.5 Mil for completing an 'Assisted Living Project':
Location of the property: Georgia-(More details will be given when confidentiality agreement is signed).
Summary of the Project:
This is an existing Hotel, 6 story, with 100k SF space, and 180 rooms
We will be purchasing and converting the Hotel to an 'Assisted Living Facility' with 160 Assisted Living Room, and 25 Memory Care Room.
Details on the cost:
Purchase Price of the Property: $3 Mil
Construction Cost: $9 Mil
Total Project Cost: $12 Mil
Value of the project after completion: $39 Mil
$1.5 Mil can be provide by the lender in 2 ways:
Option 1:
Partnership: Willing to give 50% silent partnership for the contribution of $1.5 Mil
Option 2:
-There will be 50% interest on the $1.5 Mil for 2 years
-Interest: 50%
-Term - duration: 2 year
-Interest Payment after 2 years: $1.5 Mil
-So, pay off including principal and interest will be $3 Mil
or double the investment in 2 years.
Collateral to use:
-Collateral of fully developed land in Warrensburg, MO worth $2.1 Mil (5.04 Arces @ $10/SF) can be used as collateral.
-50% partnership to the project can also be provide as additional collateral security for the loan
The Assisted Living project will be fully managed by a Management company with 30+ years of experience.
How I get Paid:
-My team will be as transparent as possible at all times. We will take 1.5% of the buyers return for hooking up the two investors, which is why the return in the subject line reads "48.5%" return.
Please PM me with your phone number if you are interested. The investor would like to move fast, so first come, first serve.
Thanks,
Austin