Trust Deed Investment
N. Parkway,
Memphis, TN 38112
4
3.5
2,527ft2
202,500
Promissory Note
69.83
Loan To Value
Property Summary
Parkway is a property purchased by OCG to flip located in the heart of Midtown with all of the historic charm kept intact. With hardwood floors, high ceilings brand new kitchens and baths and a beautiful three story spiral staircase this property is ripe for the picking from someone with a taste for history. All of the systems are fully upgraded with a new roof, plumbing and electrical, HVAC system, appliances and more.
Investment Details
Est. Market Value$290,000
Year Built 1912
Loan Amount $202,500
Loan To Value69.83%
Monthly Loan Payment$1,350
Interest Rate 8.00%
Loan Term 1 Year
Loan Position1st
Area Description
Midtown is home to many cultural attractions, institutions of higher education, and noteworthy pieces of architecture. The district is an anchor in Memphis’ arts scene and the annual Cooper-Young Arts Festival draws over 120,000 visitors to the district. Midtown also plays host to multiple universities and colleges, including Memphis College of Art, Rhodes College, and Christian Brothers University. Midtown is characterized by vintage residential housing, a blend of independent and chain retailers, and high-rise buildings. Multiple historic districts are located in Midtown, and commercial corridors such as Overton Square and Cooper Street developed before World War II in an urban style. Mixed use areas with housing, religious, commercial and office spaces are common in Midtown.
Investment Options
| Purchase Price | $111,069 | TOTAL COST | |
| Renovation Costs | $80,431 | Sales Price | $290,000 |
| Renovation Buffer (10%) | $8,043 | Loan Amount | $202,500 |
| Renovation Management | $2,500 | Loan To Value | 69.83% |
| Administrative Labor | $2,000 | Loan To Cost | 89.45% |
| Interest Expense | $8,100 | ||
| Overhead Allocation | $1,500 | ||
| Closing Costs | $3,000 | ||
| Appraisal/Inspection | $750 | ||
| Insurance/Property Taxes | $5,500 | ||
| Utilities/Permits | $3,500 | ||
| $226,393 | |||
| Sales Commission | $17,400 | ||
| Sale Closing Costs | $3,000 | ||
| Seller Paid Buyer Closing Costs | $6,000 | ||
| Net Sales Proceeds | $263,600 | ||
| NET PROFIT | $37,207 | ||
| PROFIT MARGIN | 16.43% | ||
| Address | Beds | Baths | Sq. Ft. | Est. MV | Distance | Sale per Sq Ft | ||||
| Bloomsbury | 4 | 2 | 2,544 | $192,000 | 0 | $75.47 | ||||
| Southhall Cv | 3 | 2 | 2,213 | $170,000 | 0.1 | $76.82 | ||||
| Adikson | 3 | 2.5 | 2,041 | $156,000 | 0.1 | $76.43 | ||||
| Speyburn Cv | 3 | 2.5 | 2,116 | $178,000 | 0.5 | $84.12 | ||||
| Pisgah Forest Ln | 4 | 3 | 2,744 | $229,000 | 0.6 | $83.45 | ||||
| Bloomsbury | 3 | 2 | 2,075 | $169,900 | 0.1 | $81.88 | ||||
| Averages | 3.2 | 2.4 | 2,238 | $180,580 | $80.54 | |||||
| Estimated Market Value | 0.8 | -0.4 | 306 | $204,897 |
| Address | Beds | Baths | Sq. Ft. | Rent Amt | Distance | Rent per Sq Ft |
| Bloomsbury | 4 | 2 | 2544 | $1,575 | 0 | $0.62 |
| Lawson Dr | 3 | 2.5 | 1,828 | $1,275 | 0.4 | $0.70 |
| Spruce Grove | 3 | 2.5 | 1,952 | $1,395 | 0.4 | $0.71 |
| Brimhill | 3 | 2.5 | 2,134 | $1,550 | 0.1 | $0.73 |
| Mill Hill Ave | 3 | 2 | 1,357 | $1,195 | 0.5 | $0.88 |
| Englehart St | 3 | 2 | 1,899 | $1,325 | 0.3 | $0.70 |
| Averages | 3 | 2.3 | 1,834 | $1,348 | $0.74 | |
| Estimated Market Value | 1 | -0.3 | 710 | $1,891 | ||
KEY DEAL POINTS
Positive Cash Flow
The loan payment provides a consistent monthly cash flow stream for the investor and can be rolled over to future flip properties after sale.
Collateral
The loan is only 69.83% of the value of the property giving you significant equity protection on your investment.
High End Quality Asset
Higher end assets in desirable areas tend to hold value and sell at a greater pace than low end assets due to a more qualified homeowner base and investor base.
Stable Market
The market and area the property are in are low volitility markets so the risk of a major decline is minimal in times of economic fluctuation.
Professionally Managed
This asset is professionally managed by experienced investors and contractors that know how to do quality renovations and put them into the best position to be re-sold.
MARKET HIGHLIGHT
High Rent to Price Ratio
Memphis has one of the highest rent to price ratios in the nation which means you get more cash flow for the cost comparred to many other markets in the country.
Low Volitility Market
Over the last 20 years Memphis appreciated approximately 4% per year while only having 2 times it went down by 2% in the 90’s and 4 – 6% in the 2007 crash. This makes it one of the more stable markets to invest in during times of economic fluctuation and instability.
Central Distribution Hub & Medical Industry
Memphis is know as a U.S. Central distribution Hub due to its central location and Fed-ex headquarters. This attracts many companies to the market that want lower shipping costs and faster turn around times on products. Memphis is also home to Saint Jude Childrens Research Hospital with a huge presence and expanding.
LET’S GET IN TOUCH
Whether you’re interested in working with us or for us, we’re always happy to chat.
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