About these townhomes:

• Located apprx. 20 minutes west to downtown Kansas City and approx. 20 south to KC airport
• All units of a similar level of finish and floor plan
• Appliances stay with the property – Dishwasher, Disposal, Dryer, Microwave, Refrigerator, Rng/Oven-Electric, Rng/Oven- Free Std, Washer
  
• Photos of the model unit
• No HOA
• They all have separate tax ID’s – each townhome is separate legal addresses
• The landlord does the mowing as part of the lease, so the area is kept up
• Snow removal is on the tenant
• Asking price for the enitre package (19 doors) is $3,200,000 [$168,500 per door/unit]
• There is one townhome on the street that was sold for $190,000 in May 2021, a $118/sq ft.
  • The average $/sq ft in the area for sold is $175
  • The average $/sq ft in the area listed for sale is $207 (using a wider geo search area to find listings)

Buying options

1. Option 1 – 1 buyer buys all
2. Option 2 – 6 buyers, each buying per building (see below)
3. Option 3 – pull resources as a group – see explanation below

Pull resources as a group

For this to work we’d need to pull CASH (financing will come at a later phase) resources from multiple Simply Do It, investors.

Here are the steps needed to execute this:

1. Each cash buyer picks a unit/s (financing will come at a later phase)
2. After due diligence – Each buyer put into a temporary LLC the amount needed to buy 1 or more units
3. The temporary LLC acquires the properties and at closing instead of closing it under the LLC’s name we do a second closing (aka simoustanly closing) and each investor closes it under her/his name.
   In simple terms, the LLC technically owns each property for 1 minute.
   We’d probably form 5 such LLCs – one per building to divide and conquer, and simply the transactions. 
4. After you acquire/own the property you can get your own financing.

FAQs about the group approach

• What’s the benefit of this idea?
  1.Cash offer – we hope it will help us in getting a better price
  2. It gives you an opportunity to tap into an investment property you may not be able to tap into individually 
• Why cash? If mortgages are involved it puts the entire transaction at closing on time risk, + it would not be possible to coordinate all appraisal and lenders to the same date and time.
• Financing
  • Can you get financing after closing? Yes, depending on lenders approval
  • Are the financing terms for such refi same as purchase-mortgage? Typically not identical but similar
  • What if I don’t have $170,000+ in cash? That may mean this is not a deal you will be able to do – let’s find you another one.
  • If the purchase price is $165,00 and the market/appraised value is $185,000 – can I refi base on $185,000? Typically lenders would refi based on CONTRACT price, $165,000 in this example, and not based on market/appraised value unless refi is taking place 12 months after your purchase.
  • What if after I purchase it appraises at $10,000 below what I paid for it? While unlikely, in such an instance a lender will only provide a mortgage based on the appraised price. 

• Ideally, the whole package sells to 1 investor would be his preference.
• The minimum seller would do is sell them by the building as outlined below.
• He won’t sell them 1 door at a time, except for the single unit in Building 6 below.
• He’s really not interested in selling them 1 door/unit at a time.

Available units:

• Building 1 – 4 units available
• Building 2 – 4 units available
• Building 3 – 3 out of 4 units available
  These are a little different floor plans.
• Building 4 – 4 units available
• Building 5 – 3 out of 4 units available
• Building 6 – 1 out of 4 units available