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Cardinal home investments

Rent to Own Refinancing Call 1-877-308-6633  

 

Investment Opportunity Kanata Ottawa, ON

Contact Information Cardinal Home Investments David Hamilton - President

Residence:

11 Mohawk Crescent Ottawa ON K2H 7G7

Mailing:

1150 – 45 O’Connor Street Ottawa ON K1P 1A4

Cell Phone:

(613) 614-6468

Work Phone: 1-877-308-6633

Res. Fax:

(613) 421-0004

Work Fax:

(613) 237-9145

Email:

david@cardinalhomeinvestments.com

Real Estate Investment Term Sheet | Kanata | Ottawa, ON

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Cardinal home investments

Rent to Own Refinancing

 

Call 1-877-308-6633  

Reality Check Real Estate is not a suitable investment for everyone. Real Estate Investing has risks associated with it. There are no guarantees that Real Estate will rise in value; in fact it could drop in value.

Real Estate Investment Term Sheet | Kanata | Ottawa, ON

2  


Cardinal home investments

Rent to Own Refinancing

 

Call 1-877-308-6633  

Table of Contents Objectives and Summary.................................................................................................... 4   Property Purchase Summary ............................................................................................ 5   Property Summary Information & Strategy ................................................................. 6   The Property..................................................................................................................................................... 6   The Benefits...................................................................................................................................................... 6   Property Pro Forma............................................................................................................... 8   Annual Financial Summary....................................................................................................................... 8   Appendix.................................................................................................................................... 9   Pictures ................................................................................................................................................9   Appraisal .......................................................................................................................................... 12  

Real Estate Investment Term Sheet | Kanata | Ottawa, ON

3  


Cardinal home investments

Rent to Own Refinancing

 

Call 1-877-308-6633  

Objectives and Summary 1) To provide an investor with an opportunity to invest in a low-risk, positive cash flowing Real Estate Investment property through Cardinal Home Investments’ Rent to Own Refinance (RTOR) Program, in a Top Ten Ontario investment town (as per the Real Estate Investment Network independent research). This property is already owned by Cardinal. 2) Currently, the RTOR client occupies this property on a three-year term. 3) Immaculate 4 bedroom 2 ½ Baths, 2500 sq. ft. two-storey home was purchased at the appraised price of $489,000. The rental income is $39,000 p.a. 4) At the end of the 3-year rent to own term, we sell the property back to the client. 5) Tenant comes in with an 11+ % Security Deposit. Current Cardinal Reserve Fund is $24,000. 6) We are offering an investment opportunity as a second mortgage in the value of up to $120,000. This represents 24.5% of the purchase price. Interest offered is 8% per annum, paid quarterly, for the duration of the term PLUS a 6% of principal bonus at the end of the term for an effective rate of return of 10.04% pa. 7) Your investment will be secured against the investment property in the form of a 2nd mortgage. A reserve fund of pooled security deposits is in place to provide additional risk mitigation of your investment.

Your $120,000 investment at 10.04% p.a. Yields $36,135 over a 3 year term

Real Estate Investment Term Sheet | Kanata | Ottawa, ON

4  


Cardinal home investments

Rent to Own Refinancing Call 1-877-308-6633  

 

Property Purchase Summary

Kanata | Ottawa, ON 2-Storey Detached PURCHASE PRICE

$489,000.00

APPRAISED VALUE

$489,000.00

Financial Breakdown Sale Price Down Payment

$489,000 25.0%

Deposit First Mortgage

$122,250 $0

75.0%

$366,750

Estimated Closing Costs

$8,488

Initial Security Deposit

$54,621

Closing Costs and Finder Fee

-$37,828

NET SECURITY DEPOSIT TO RESERVE FUND

$16,793

Real Estate Investment Term Sheet | Kanata | Ottawa, ON

5  


Cardinal home investments

Rent to Own Refinancing

 

Call 1-877-308-6633  

Property Summary Information & Strategy The Property Lot: 44 x 105 Feet Rooms: 5+2 Bedrooms: 4 Washrooms: 2.5 Unfinished basement Mostly level Lot Property is located in the Morgans Grant district of Kanata. This area is developed with various age & style singles & townhomes with some new development still ongoing. The area is located within blocks of the hi-tech sector. Shopping & services in the general area. Minto built Riviera model. Some upgrades & extras in way of stairs & railings, kitchen, pot lights in various rooms, hardwood, tile and broadloom & under pad and decorating. House shows very well. Double attached garage with inside access. The Benefits  Low investment funds required, $80,000 required to participate in a lowrisk arm-chair investment opportunity  Rent to Own term of 3 years, offering built-in exit strategy  Desirable, expanding neighbourhood (Kanata North) for risk mitigation  All work has been completed for this turn-key investment, all duediligence, research, mortgage qualification, and full property team in place  Immaculate condition – no immediate renovations required  Very spacious 4 bedroom 2-storey, 2500 sq ft family home

Real Estate Investment Term Sheet | Kanata | Ottawa, ON

6  


Cardinal home investments

Rent to Own Refinancing

 

Call 1-877-308-6633  

Tenants, Property Management, & Exit Strategy   Tenants

Professional in the IT industry. He has a wife and a young daughter. Had credit troubles but now back on track with RTOR.

Property Management Strategy

Cardinal Home Investments will provide Property Management services.

Renovation Strategy

Property is in immaculate condition and will not require any renovations.

Exit Strategy

Sell property back to the client after the 3 year rent to own lease expires.

Real Estate Investment Term Sheet | Kanata | Ottawa, ON

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Cardinal home investments

Rent to Own Refinancing Call 1-877-308-6633  

 

Property Pro Forma Annual Financial Summary

Income

Monthly

Annual

$3,250

$39,000

$0

$0

$3,250

$39,000

Property Taxes

-$375

$4,500

Insurance

-$137

$1,644

Monthly Lease Payment Vacancy (estimated @ 3.0%)

0.00%

Income (1st Year)

Expenses

Repairs and Maintenance factor

0.0%

$0

$0

Property Management (% of Actual Rent)

3.5%

-$114

$1,365

Total Expenses

-$626

$7,509

Cash Flow Before Debt Payment

$2,624

$31,491

4.04%

-$1,752

$21,027

8.0%

-$800

$9,600

Cardinal Operations

-$7

$84

TOTAL NET CASH FLOW (to reserve fund)

$65

$780

First Mortgage Payment Second Mortgage Payment

Real Estate Investment Term Sheet | Kanata | Ottawa, ON

8  


Cardinal home investments

Rent to Own Refinancing

 

Call 1-877-308-6633  

Appendix Pictures Exterior: Very well-maintained 2Storey home in Kanata North’s Morgan’s Grant community. 2500 square feet. Only 5 years old. 45 x 115 foot yard.

Back Yard

Kitchen Newer appliances, kitchen in great shape, new flooring. Current owner has kept this home in immaculate condition.

Real Estate Investment Term Sheet | Kanata | Ottawa, ON

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Cardinal home investments

  Living Room

Rent to Own Refinancing

 

Call 1-877-308-6633  

Hardwood flooring, and broadloom; bright and cheery living space!

Dining Room

Family Room

Real Estate Investment Term Sheet | Kanata | Ottawa, ON

10  


Cardinal home investments

Rent to Own Refinancing

 

Call 1-877-308-6633  

Miscellaneous Pictures

Real Estate Investment Term Sheet | Kanata | Ottawa, ON

11  


Cardinal home investments

Rent to Own Refinancing

 

Call 1-877-308-6633  

Appraisal   Appraisal is available upon request.  

Real Estate Investment Term Sheet | Kanata | Ottawa, ON

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