PORTFOLIO EXPANSION INVESTMENT PRESENTATION

• EXECUTIVE SUMMARY:
• Investment Opportunity: $2.5M capital request for portfolio expansion
• Track Record: 14.2% annual returns over 4 years, 8-property portfolio
• Strategy: Expand to 15 properties in 18 months, target markets
• Value Proposition: ________________________________
• Risk Management: ________________________________
• Investor Returns: ________________________________
• CURRENT PORTFOLIO ANALYSIS:
• Portfolio Overview:
• – Total Properties: 8
• – Total Value: $3.2M
• – Your Equity: $1.1M
• – Average LTV: 66%
• Property Type Diversification:
• – Single Family Residential: 5 properties (56% by value)
• – Small Multifamily: 2 properties (30% by value)
• – Small Commercial: 1 property (14% by value)
• – Analysis: ________________________________
• Geographic Diversification:
• – Atlanta (Primary): 4 properties (50%)
• – Nashville (Secondary): 3 properties (37.5%)
• – Chattanooga (Tertiary): 1 property (12.5%)
• – Risk Assessment: ________________________________
• Performance Analysis:
• – Total Annual Return: 14.2%
• – Cash-on-Cash Return: 9.8%
• – Occupancy Rate: 96.5%
• – vs REIT Index: +5.7% outperformance
• – Key Success Factors: ________________________________
• COMPETITIVE ADVANTAGES:
• Market Expertise:
• – Southeast market specialization (4+ years experience)
• – Local market knowledge and relationship network
• – ________________________________
• Operational Excellence:
• – Property management systems and technology
• – Vendor network and preferred contractor relationships
• – ________________________________
• Financial Management:
• – Multiple lender relationships and financing options
• – ________________________________
• – ________________________________
• Property Selection:
• – Systematic property evaluation and criteria
• – ________________________________
• – ________________________________
• EXPANSION STRATEGY (18 MONTHS):
• Acquisition Timeline:
• – Quarter 1: 2 properties, $600K total investment
• – Quarter 2: 2 properties, $650K total investment
• – Quarter 3: 2 properties, $700K total investment
• – Quarter 4: 1 property, $550K total investment
• – Total: 7 new properties, $2.5M total investment
• Target Property Mix:
• – Single Family: 4 properties (maintain 60% allocation)
• – Small Multifamily: 2 properties (grow to 35% allocation)
• – Commercial: 1 property (maintain 5% allocation)
• – Rationale: ________________________________
• Geographic Expansion:
• – Atlanta market: 3 additional properties
• – Nashville market: 2 additional properties
• – New market entry: 2 properties in Raleigh, NC
• – Strategy: ________________________________
• Property Selection Criteria:
• – Minimum 8% cash-on-cash return
• – Properties $250K-$400K per unit
• – Growth markets with 2%+ population growth
• – ________________________________
• FINANCIAL PROJECTIONS:
• Capital Deployment:
• – Total Investment: $2.5M over 18 months
• – Down Payments (25%): $625K
• – Closing Costs: $75K
• – Improvements/Reserves: $200K
• – Working Capital: $100K
• – External Capital Needed: $1.0M
• – Investor Capital Request: $2.5M
• Projected Returns (5-Year Analysis):
• Year 1 Portfolio Performance:
• – Total Portfolio Value: $5.7M
• – Annual Cash Flow: $285K
• – Cash-on-Cash Return: 8.9%
• Year 3 Portfolio Performance:
• – Total Portfolio Value: $6.8M
• – Annual Cash Flow: $365K
• – Cash-on-Cash Return: 11.4%
• Year 5 Portfolio Performance:
• – Total Portfolio Value: $8.2M
• – Annual Cash Flow: $475K
• – Cash-on-Cash Return: 14.8%
• Return Scenarios:
• Conservative Scenario (3% appreciation, 7% cash-on-cash):
• – 5-Year IRR: _____%
• – Multiple on Investment: _____x
• Base Case Scenario (5% appreciation, 9% cash-on-cash):
• – 5-Year IRR: _____%
• – Multiple on Investment: _____x
• Optimistic Scenario (7% appreciation, 12% cash-on-cash):
• – 5-Year IRR: _____%
• – Multiple on Investment: _____x
• RISK MANAGEMENT:
• Market Risk Mitigation:
• – Geographic diversification across 3 growing markets
• – Property type diversification reducing concentration risk
• – Economic base diversification (tech, healthcare, government)
• – Conservative LTV targets (70% max portfolio leverage)
• Operational Risk Management:
• – Professional property management for all assets
• – 6-month operating expense reserves
• – Comprehensive insurance coverage and liability protection
• – Regular property inspections and preventive maintenance
• Financial Risk Controls:
• – Fixed-rate financing to protect against rate increases
• – DSCR minimum 1.3x for all financed properties
• – Multiple lender relationships for financing flexibility
• – Quarterly financial reporting and performance monitoring
• Stress Testing Results:
• – 20% value decline scenario: ________________________________
• – 15% vacancy scenario: ________________________________
• – Interest rate +300bp scenario: ________________________________
• OPERATIONAL SYSTEMS:
• Management Structure:
• – Portfolio Owner: Strategic oversight and acquisitions
• – Property Management: Professional management for all assets
• – Contractor Network: Preferred vendors with negotiated rates
• – Professional Team: CPA, attorney, insurance agent
• Technology Systems:
• – Property Management Software: ________________________________
• – Financial Tracking: ________________________________
• – Tenant Communication: ________________________________
• – Market Analysis: ________________________________
• Performance Monitoring:
• – Monthly financial reporting
• – Quarterly portfolio performance analysis
• – Annual strategic planning and review
• – Investor reporting: ________________________________
• EXIT STRATEGY & INVESTOR RETURNS:
• Liquidity Options:
• – Hold Strategy: Long-term appreciation and cash flow
• – Selective Sales: Portfolio optimization and rebalancing
• – Portfolio Sale: Complete liquidity event at portfolio maturity
• – Refinancing: Access to equity without sale
• Investor Return Timeline:
• – Years 1-2: Quarterly distributions from cash flow
• – Years 3-5: Increased distributions from appreciation
• – Year 5+: Exit options and capital return
• – Target: ___% IRR, ___x multiple on investment
• Value Creation Strategies:
• – Property improvements and value-add opportunities
• – Operational efficiency improvements
• – Market timing for acquisitions and dispositions
• – Portfolio scale advantages and cost reduction
• NEXT STEPS & IMPLEMENTATION:
• Immediate Actions (Next 30 Days):
• 1. Complete due diligence on target properties
• 2. Finalize financing pre-approvals
• 3. Execute investor agreements and fund closing
• 4. ________________________________
• Quarter 1 Milestones:
• – Close on first 2 properties
• – Establish property management relationships
• – Implement performance tracking systems
• – ________________________________
• Ongoing Communication:
• – Monthly operational updates
• – Quarterly financial reports
• – Annual strategy review meetings
• – ________________________________
• CONCLUSION & INVESTMENT RECOMMENDATION:
• Investment Thesis Summary:
• – Proven track record with 14.2% annual returns
• – Growing markets with strong fundamentals
• – Systematic approach and operational excellence
• – Attractive risk-adjusted returns vs. alternatives
• Why Invest Now:
• – Market timing and opportunity availability
• – ________________________________
• – ________________________________
• Success Probability:
• – Track record evidence: ________________________________
• – Market conditions: ________________________________
• – Risk mitigation: ________________________________
• Call to Action:
• Requesting $2.5M investment commitment for portfolio expansion
• Target closing: Within 45 days
• Expected investor returns: ____% IRR, ____x multiple
• Partnership structure: ________________________________