proposal presentation 13 ecclestone drive

Joint Venture OpportunityDetached House in Brampton

3 Bedroom, 2.5 Bath 13 Ecclestone Drive, Brampton, Ontario

Thomas Wongwww.happinessinspiration.com416-806-9568thomaswong@rogers.com

www.happinessinspiration.com Thomas Wong - 13 Ecclestone Drive

The Project• The property is a Detached house in a convenient location in

central part of Brampton.• The house is originally listed for $297,500. The is in good

conditions.• We got the offer accepted to buy the property for $281K. The

current closing house is set for November 19, 2009.• The market value is around $296K• We have a confirmed rent-to-own tenant, signed a Lease Option

agreement. The tenant already paid $2,000 toward the purchase deposit. The tenant is planning to move into the property by December 1, 2009.

• Using Lease Option program as the exit strategy, potential profit in 3 year will be around $49K


The Opportunity

• Project Finder/ Real Estate experts invest

– 5% of cash investment ($2,820)– Over 50 hours of time and expertise

• Cash partners invest:– 95% of the cash investment ($53,571)

• RRSP 2nd mortgage of $12,000

• Split profit 35-65 ($17K - $32K)


Key Features of the Property

• 3 bedrooms, 2.5 baths detached house

• Convenient location in Central Brampton

• Double garage

• Finished basement with separate entrance

• New Roof


Profile of the tenant• A family of 4 (Husband and wife and 2 children) • The lady just finished maternity leave and got back into the

workforce as a nurse.• Their combined income is about $80,000• The lady’s credit score is about 639 and the husband’s credit score

is about 551. • They only need to save a bit more down payment to get a good

mortgage. With their improved income (additional income from the wife), they are on track to improve their credit.

• They are ready to sign a lease with option to purchase agreement and put a deposit of $2000 to confirm their participation in the rent-to-own program. The total initial deposit from the tenant will be $8,000, to be collected before they move into the property.


Financial AssumptionsDescription of the property:Type of Property: Free Hold

Current Purchase Price: $281,000 Monthly Market Rent: $1,500

Land transfer tax Other Ont. City $2,690

Rehab cost/setup cost: $2,000

Closing legal fee $2,500

Avg. Annual Appreciation 5%

Assignment fee $5,000

Adjusted Cost base: $293,190

Annual property tax: $3,200

After Repair Market Value: $296,000

Annual Insurance: $600

Financing:

1st MortgageInitial Cash Investment $56,390

1st Mortgage Amount 80% $224,800 DCR(Free Hold) 1.12Interest rate 4.5%

# of Amortization Years 35

2nd Mortgage RRSP 2nd Mortgage Amount $12,000 14050

2nd Mortgage Interest rate 14%

Total Mortgage $236,800

13 Ecclestone Drive


Benefit to Lessee

Lessee's Point of View:3 Year Lease Opt.

Down Payment $8,000Monthly Rent $1,485

Monthly Option Premium $540Monthly Condo Fee $270

Total Monthly Payment $2,025

Addition Monthly Option Bonus $200Purchase price

at the end of lease term 342,657$ Down payment credit at

purchase $34,640% Down available at the end of

Lease 10%

Additional money credited to Leasee's downpayment at purchase


Joint Venture Profit -1

Investor's Point of View:

Option Exercised: 3 Year Lease Opt.

Total Gross Income during Lease Term: $ 388,917

Profit before Mortgage Payment: $ 84,327

Net Profit after Mortgage Interest: $49,484

Average Annual Net Profit: $16,495

profit before mortgage payment - interest portion of mortgage payment

selling price + 36*(monthly rent - monthly option bonus)

gross income - adjusted cost base - 3*(property tax + insurance)


Joint Venture Profit - 2

Option NOT Exercised:3 Year Lease Opt.

Total Gross Income during Lease Term: $80,900

Profit before Mortgage Payment: $69,500

Net Profit after Mortgage Interest: $34,657

Average Annual Net Profit: $11,552

(Note: Profit does not included the increase in property value)

initial down payment + 36*(monthly rent + monthly option premium)

gross income - adjusted cost base - 3*(property tax + insurance)

profit before mortgage payment - interest portion of mortgage payment


Joint Venture Return Analysis

Joint Venture Analysis: % contribution Investment % Profit

Partner #1 (deal finder) Thomas & Bob 5% $2,820 35%

Partner #2 Investors 95% $53,571 65%

Option Exercised: 3 Year Lease Opt.

Net Profit after Mortgage Interest: 49,484$

Partner #1 (deal finder) Profit 17,319$ ROI 614%Partner #2 Profit 32,164$ ROI 60%


Map of the Area


Questions & Answers


Sample Pictures of Projects


We turn real estate opportunities into

Happiness Inspirations

proposal presentation 13 ecclestone drive

Real Estate

joint venture profit

house convenient location

lease option program

lease option agreement

cash investment

potential profit

joint venture return

split profit