Thousand Roses Fund Open! Projected returns: IRR: 15% Ave Annual Return: 18.42% Tot ROI: 92.10%

Thousand Roses is a community made up of 59 duplexes (118 units) in Central Florida.  Specifically, they are located Polk County FL (city of Lake Wales), which has made headlines in recent weeks and months as the fastest-growing county in the USA.

The community was built in 1988 by a man and his son, Gary, who has been managing the place everyday since then.  Gary wants to retire and go enjoy life so he is selling the community.  He has kept rents extremely low and that translates into a low sale price for us. 

We have these 59 duplexes under contract for $8MM USD.  That works out to $135,593 per duplex.  For context, median market price for duplexes in the area is $240,000.  

WE ARE BUYING OURS AT 56% TO MARKET PRICE!! 

1. Price - Like we said, we are buying 59 duplexes at a 40%+ discount.  This is a function of the artificially low rent rates in the community. 
2. Condition - Despite the low rents, these duplexes are in very good shape.  They all have relatively new metal roofs (installed Oct 2022) and are very well-maintained inside.  The reason that rents are so low is because Gary (the seller) has kept them artificially low.  
3. Rent Prices -  Median rent prices within two miles of Thousand Roses for a 1-bedroom apartment are between $995-$1095/month.  Average rent prices at Thousand Roses are only $503/month.  In the first 12-18 months, we will go through and renew leases and move towards getting 100% occupancy at market rent.  As we increase the cash flow, we will increase the value, and we will capitalize on that increased value when we sell the property in year 4 or 5.  
4. Favorable Loan Terms - The seller has agreed to carry $5.5MM of the $8MM purchase price for the low rate of 5% interest only for 60 months.  We are also negotiating with his team to build in some extensions for added safety for the fund.  A bank would charge a much higher rate and it would probably not be an interest-only loan.  Our deal will save us hundreds of thousands of dollars in interest payments over the life of the project 
5. Competent Property Management - All County Polk will be the management company for this deal, so we will make sure that rents keep up with the market, the units stay in good condition, et.c. so that we can sell the property in year 4 or 5 at top dollar.  Our strike price is $12.5MM, but we will work to get the rents up and keep the expenses down so that we can maximize that sale and hopefully sell for even more.