NEW OPPORTUNITY
summiT
ON BOULDER
This 506c Project is for ACCREDITED Investors Only
OVERSUBSCRIBED
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Summary
Summit on Boulder Apartments is a new 216-unit multifamily development project to be constructed in Henderson, NV. The project is scheduled to break ground near the beginning of 2021.
Project Highlights
Project offers a strong 27% IRR along with a mindful deal structure considering:
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Significantly lower rental rates than comps (plenty of room to increase)
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Preferred equity (7%) begins accruing as soon as you enter the deal, not after project completion like many of our competitors
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The land value has already gained nearly $2mm in equity
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Obtainable construction timeline
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Sizable budget contingency over $1mm
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Quick return of capital after permanent loan is in place
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A low 65% LTV
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A 3.5% interest rate on the construction loan
About RealSource
RealSource was established in 1989 with the central focus of putting our investor clients in the right place, at the right time, to help insure their maximum profitability.
In real estate investing, buying low and selling high is a matter of knowing where and when, and that requires research. In order to place our investments in the right "where and when" circumstances, we track 160 domestic markets.
Property Financials
Projected to exit in 5 years with the following returns:
Investor IRR: 27.3% (including sale proceeds)
Investor cash-on-cash return: (excluding sale proceeds)
Year 1: 0.5% Year 2: 91.3% Year 3: 8.4%
Year 4: 9.0% Year 5: 9.2% Average: 23.7%
Equity Multiple: 1.9x
Las Vegas Market
Las Vegas metro has strong inward migration from nearby states. Costar is forecasting that the 10-mile radius around Boulder on Summit Apartments will grow 10% over the next 5 years.
Top 15 RealSource Target Market in Q3 2020, using our proven econometrics model with post COVID adjustments made with weighted metrics.
Pro-business environment in Nevada helps keep property tax rates reasonable compared in Las Vegas to other major metros. The State debt-to- State GDP ratio in Nevada gives reason to believe the state may not significantly raise property taxes in the next several years.
Las Vegas has a housing shortage and limited new supply is scheduled to be delivered in 2020. The undersupply is evident through low vacancy rates of comparable properties.
• #1 MOST BUSINESS-FRIENDLY STATE FOR ENTREPRENEURS
[CBE Council, 2017]
• #6 FASTEST GROWING METRO
[Forbes, 2018]
• #1 RANKED MSA FOR RENT GROWTH
[Yardi, 2018]
• #3 TOP MARGINAL CORPORATE TAX RATE
[BEA, 2019]
• #9 RANKED PROPERTY TAX BURDEN
[U.S. Census Bureau, 2020]
• • #2 PERSONAL INCOME TAX PREGRESSIVITY
(CHANGE IN TAX LIABILITY PER $1,000 INCOME)
[Laffer Associates, 2020]
What's Next?
1
Sign-up in the RealSource Investor Portal
2
Review Documents and Sign Agreements
3
Become Verified as an Accredited Investor
4
Send Funds
This material does not constitute an offer or a solicitation to purchase securities. This is an informational summary and is authorized for use only by accredited investors.