Purchase Land & Build a Property in warren , Michigan

Shareable Link: https://privatelenderlink.com/loan/9123676417/

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The Story & Summary

Additional details about the loan request

<h3><strong>1. What challenges have you faced with other lenders, and why are you seeking private financing?</strong></h3>
Traditional lenders often prioritize collateral and extensive financial history over innovation and determination. As a 33-year-old recent college graduate with no significant assets aside from my ideas and ambition, securing traditional financing has been a challenge. Additionally, as a woman in business, I’ve faced skepticism about my ability to succeed despite presenting a well-researched, lucrative project. Private financing is an opportunity to collaborate with a partner who values vision and determination alongside financial returns.

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<h3><strong>2. What is your plan for the property?</strong></h3>
The <strong>Ryan Residences Business Plan</strong> outlines a strategic approach to meet Warren, MI's growing demand for affordable housing. The property will feature 40 modern studio apartments, along with amenities such as on-site laundry, vending machines, and a restaurant for tenants. I plan to manage the property personally, ensuring operational efficiency and high occupancy rates by offering flexible weekly and monthly rental plans. With competitive pricing and a focus on tenant needs, I am confident the property will achieve at least 90% occupancy and generate a <strong>Net Operating Income (NOI) of $708,475 annually</strong>.

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<h3><strong>3. How do you plan to make loan payments and repay the loan?</strong></h3>
The property's projected cash flow is strong, even under conservative scenarios. With a 90% occupancy rate, annual revenue is estimated at <strong>$1,054,875</strong>, and NOI is <strong>$708,475</strong>. These earnings ensure the loan can be serviced promptly. Moreover, additional income from the restaurant, vending machines, and laundry facilities provides diversified revenue streams to further stabilize payments.

In the long term, I plan to refinance the property at an estimated value of <strong>$13.5 million</strong> after 5 years. A refinance at 75% LTV would provide $10.1 million, enough to repay the loan while retaining equity in the property.

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<h3><strong>4. What makes this project unique and likely to succeed?</strong></h3>
Ryan Residences stands out for several reasons:
<ul>
 	<li><strong>Prime Location:</strong> Warren, MI, has high demand for affordable housing and a rental occupancy rate of 85%-95%.</li>
 	<li><strong>Flexible Rental Options:</strong> Weekly and monthly rental plans cater to tenants who struggle with traditional leasing models, providing an untapped market advantage.</li>
 	<li><strong>Innovative Amenities:</strong> The addition of a take-out restaurant, vending machines, and on-site laundry provides convenience and supplemental revenue.</li>
 	<li><strong>Comprehensive Risk Mitigation:</strong> Energy efficiency, outsourced services, and advanced property management tools minimize operational risks.</li>
</ul>

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<h3><strong>5. What is your commitment to this project?</strong></h3>
This project holds my heart and soul. As someone with a background in management, I’ve poured my knowledge, creativity, and relentless drive into making this vision a reality. While I’m a dreamer, I’m also grounded in the realities of business. I know this project is not just feasible but a <strong>goldmine</strong> for all stakeholders. I’m ready to work tirelessly to ensure its success, both for the community it serves and the investors who trust in my vision.

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<h3><strong>6. Why should a lender or silent partner trust in you?</strong></h3>
Despite limited resources, my dedication and detailed planning prove my capability. The financial projections, risk mitigation strategies, and market research for this project demonstrate a thorough understanding of the real estate market. I may lack significant assets, but I compensate with <strong>intellect, determination, and a proven ability to adapt to challenges</strong>.

Additionally, this isn’t just about personal gain; it’s about creating a <strong>community-focused project</strong> that meets a real demand while delivering exceptional returns. I will personally manage the property, ensuring both tenants and investors are prioritized.

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<h3><strong>7. What are your proposed terms for the private lender?</strong></h3>
I am seeking <strong>100% financing</strong> and offering a <strong>silent partnership with 10% equity</strong> in the project, alongside a fixed monthly management fee for overseeing daily operations. This arrangement ensures the lender benefits from the property’s success without being involved in day-to-day management. I am confident in generating sufficient returns to meet all agreed-upon terms promptly.

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<h3><strong>8. What are your exit strategies?</strong></h3>
To protect and maximize the lender’s investment, I have outlined multiple exit strategies:
<ol>
 	<li><strong>Refinance</strong>: Leverage the property’s increased value after 5 years to refinance and repay the loan.</li>
 	<li><strong>Long-term Hold</strong>: Retain the property for steady cash flow and appreciation, generating consistent income for investors.</li>
 	<li><strong>Sale or 1031 Exchange</strong>: Sell the property outright or reinvest the proceeds into a larger asset to defer capital gains taxes.</li>
</ol>

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<h3><strong>9. How do you plan to handle risks?</strong></h3>
Risk management is central to this project:
<ul>
 	<li><strong>Occupancy Risk:</strong> Flexible rental terms and modern amenities will attract and retain tenants, even during downturns.</li>
 	<li><strong>Market Risk:</strong> Warren, MI, continues to exhibit high demand for affordable housing, with strong rental market stability.</li>
 	<li><strong>Management Risk:</strong> Using property management software like Buildium will streamline operations, reduce errors, and enhance tenant satisfaction.</li>
</ul>

Contact

Deal Overview

Loan Info

Final Details

The Story & Summary

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