Turnkey, 11-Step Condominium Conversion Investment Program
1. CWCR Consolidates The Entire Condo Conversion Process In A Turnkey Program:
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Turnkey, no risk identification for 1031 Exchanges or regular investors, there is no risk after “identifying a property” for exchange or default for not closing.
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Red Rox has had (98) closing to date. There is no risk of the project going back to rental.
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CWCR has successfully transacted (10) 1031 Exchanges.
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Solution for 1031 Exchange Buyers/Industry: $B’s of dollars per year of 1031 Exchanges default because investors doesn’t identify a replacement property within the 45 day identification period. Costing the Investor significant capital gains tax events, and Exchange Intermediaries valuable lost opportunities.
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Condominium products average in the $190,000-$250,000 range and attainable by beginner investors and seasoned investors. And will be a good resale price point.
2. Property Tax + Real Estate Tax Deduction Benefits Are Unmatched:
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Taxes are one of the benefits of Real Estate as a reliable wealth building vehicle.
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Closing Costs are deductible.
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Property Taxes are deductible
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Mortgage Interest (which is most mortgages for the first 5-7 years) is deductible.
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Operating Costs are deductible.
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The IRS Tax Code 1031 Exchange allows for rolling over capital gains of an investment property with the purchase of a reinvestment property.
3. Performance Under And Stability Against Erratic Market Conditions:
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Corporate Rentals are high quality, reliable, low maintenance tenants.
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Corporate Rentals are paying for mortgage obligation while the asset appreciates.
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Corporate Rentals have a very high renewal rate.
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Phoenix is one of the strongest job growth/creation/migration markets in the US for the next (15) years.
4. Project Sourcing, Pricing, and Extensive Due Diligence. Pro Forma Included:
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A comprehensive Pro Forma on all inventory in the Unit Mix is included.
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Ryan Hanks is CWCR’s VP of Acquisitions. Ryan has formerly been the VP of Acquisitions for two of the largest condo conversion companies in the US: Crescent Heights (www.crescentheights.com) and Tarragon Corporation (www.tarragoncorp.com). Ryan has transacted over $500M in Condo Conversions.
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We source the projects, select Developers with strong balance sheets and experienced local staffs, “prime properties” and locations that are well positioned to achieve double digit property increases and equity. Provides thousands of dollars of savings to investors for costs of researching/sourcing/time/rental marketing-management/ purchase closing/and maintenance management.
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Wholesale level pricing and incentives that is not attainable by the general public.
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Buying early stage in the condo conversion process to achieve appreciation in the 25-35%range within two years.
5. Condominium Conversion units are “tangible” and physically exist today and financed on rates from 2000-2004 vs. pre-construction costs of high rises being completed 12-15- 18+ months away that may not be completed or are delayed.
6. All Of Our Contracts Are Assignable.
7. Corporate Rental Income With Purchase and Unit Upkeep:
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All of our condos have a Corporate Rental Lease at closing with our Corp Housing Partner.
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The typical lease term is (12-14) and has a very high renewal rate.
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Each buyer has a Master Lease with 1031 CWCR and we manage Payments from our Corporate Rental Partners to the buyer.
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Eliminating the Investor’s marketing costs, qualifying, and managing renters/collections.
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Buyers are required to maintain a Home Warranty Service Policy; appx. $400 annually.
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The account # and 800 phone enable a tenant or owner to call in a repair or service.
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Buyers are required to maintain Liability Insurance policy ($500,000 per occurrence) Condominiums Rented to Other Coverage; approx. $400 annually.
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Our Corporate Rental partners are vested in product quality. They maintain the unit to high standards because of the customer care standards. They regularly shampoo carpets and have the unit professionally cleaned each week.
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Owners are required to refresh the paint and carpet replacement at own expense.
8. Home Warranty Maintenance Policy/Service with Purchase + HOA/Property Management:
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All units come with a 1 year Comprehensive Home Warranty Program and Service on all internal mechanics of property requiring very minimal owner interaction.
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Home Security of America (www.onlinehsa.com) is one of the leading industry providers.
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Service calls avg. 4-8 hour response time.
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The Home Owner’s Association’s Property Management maintenance department takes care of all repairs external of your unit.
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All water bills for the unit are included in the monthly Home Owners Assn. Fee.
9. Property Inspection:
10. Turnkey, Streamlined Closing Process: Consultation, Lender, Appraisal, Title Co.
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Our Closing Director is a 4 year former Countrywide Mortgage executive and expert in condo conversions, and a condo corporate rental owner. Escorts buyer thru the entire closing process from consultation on objectives to closing/ownership day.
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Sunvest’s [the developer] Closing Department coordinates closings.
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Sunvest has selected Talon Group/First America Title Agency as the Title Company. First American Title Insurance is one of the largest in the US.
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Great Southwest Mortgage has been selected as our Preferred Lender:
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Great Southwest Mortgage is one of largest Private Mortgage Bankers in Arizona.
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Warranted to underwrite and approve mortgages for the Red Rox Condominium.
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85% investor programs are available.
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Sergio Lebrija Branch Manager: 602-618-7683, Rob Lambson (623) 703-2840
11. Exit Strategy/Investor Property Resale:
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Corporate Rental Lease is a powerful competitive advantage and expedites the sales process.
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We can assist investors with resale of unit to our 1031 Exchange partners for a 3% commission vs. the typical 6% realtor commissions.
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Condos are great entry level purchases for first time buyers and young professionals, and the exploding Baby Boomer generation.
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