Case Study 5 - Existing Facility in Rayne, LA

Here is a deal in Rayne, Louisiana. Price is 1.2 million, which equates to about a 7.4% cap rate. Existing Earnest Money is about 50,000.

Population in the area is just shy of 500,000 people. Median House Hold Income is around 31,000. Now, this is an existing facility that is pretty stable, but there's still opportunity to do some value add on it. And those opportunities include raising the rents to market rate. They're currently charging below the competitors. The existing manager would like to stay in is actually highly recommended. Net Rentable square feet comes out to 24,500. It's a 216 units. Occupancy is roughly 87% right now. It's pretty stable. Vehicles per day is a little on the low side at about 11,000. Supply index is 5.3 Net Rentable square feet per person.

And then here are the competitors. Total revenue is 157,000 with an Operating Expense of about 68,000. NOI comes out to 89,000, Which equates to a 7.4% cap rate.

So to recap, price of this property is 1.2 million and the Earnest Money is 50,000.

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Fernando O. Angelucci is Founder and President of Titan Wealth Group. He also leads the firm’s finance and acquisitions departments. Fernando Angelucci and Steven Wear founded Titan Wealth Group in 2015, and under his leadership, the firm’s revenue has grown over 100% year over year. Today,
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Titan Wealth Group operates nationwide sourcing off market investment properties for Titan Wealth Group’s acquisition as well as servicing a network of thousands of active real estate investors world wide. Prior to founding Titan Wealth Group, Fernando worked for Dow Chemical, a Fortune 50 company, rolling out a flagship product estimated to gross $1B in global revenues.
With an engineering background, Fernando is able to approach real estate investing with a keen analytical mindset that allows Titan Wealth Group to identify opportunities and project accurate pictures of future performance.
Fernando graduated from the University of Illinois at Urbana-Champaign with a B.A. degree in Technical Systems Management.
Titan Wealth Group was founded in 2015 with the vision of gathering individual investors that have the means to invest but lack either the time to find high-yield investment opportunities or the access to these off-market deals. All too often, founders Fernando Angelucci & Steven Wear came across investors who had deployed their capital only to regret the lack of consistency or degree of returns their investments were producing. In response, Titan Wealth Group provides access to highly-vetted real estate secured investments and off-market acquisition opportunities primarily in the Greater Chicago MSA. Today, Titan Wealth Group not only assists individual investors but has grown to support the acquisition goals and capital deployment of investment groups, private equity firms, and real estate investment trusts (REITs).
As a facilitator of wealth growth, Titan Wealth Group believes that success is not limited to the sum of our efforts and is infinite with what can be accomplished through partnership.
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