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28 By The Lake
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Deal Summary: NW Indiana (suburb of Chicago nearby Lake Michigan) Rental Property Business Sale
Introduction
This document provides an overview of the proposed sale of a rental property business in Northwest Indiana very close to the shores of beautiful Lake Michigan and a hop, skip and a jump to downtown Chicago.
The business consists of a portfolio of 28 properties and is being sold as a turn-key operation based on its strong annual rental income.
This property package is 98% occupied with a solid local management team in place.
Parties Involved
Seller:
Name: Information Provided after MOU/NDA Signed
Contact: Information Provided after MOU/NDA Signed
Buyer:
Name: (To be determined)
Contact: TBD
Intermediaries:
Marketing Representative: Blue Hawk
Disclaimers This document is a summary and does not constitute a legally binding agreement. All
terms are subject to negotiation, legal review, and the execution of formal agreements.
Confidentiality Notice: This document contains sensitive information and is intended for
use solely by authorized parties involved in this transaction. Unauthorized distribution is
strictly prohibited.
All connections will require either a non disclosure agreement or a memorum of understanding to be signed prior to all final project opportunity details being provided.
Description
Deal Summary: NW Indiana (suburb of Chicago nearby Lake Michigan) Rental Property Business Sale
1. Introduction
This document provides an overview of the proposed sale of a rental property business
in Northwest Indiana. The business consists of a portfolio of 28 properties and is being
sold as a turn-key operation based on its strong annual rental income.
2. Business Overview
a. Portfolio Size: 28 rental properties
b. Location: Northwest Indiana
c. Condition: All properties have been updated and are in good condition.
d. Occupancy Rate: 27 out of 28 properties currently rented (96.4% occupancy).
e. Annual Gross Rent: $437,700
f. Annual Property Tax: $14,600
g. Annual Property Insurance Cost: 12,600
h. Property Management:
i. Managed by a professional property management company.
ii. Responsibilities include rent collection, filling vacancies, and ongoing
property management.
iii. Management Fee: 9% of rents ($39,393 annually).
3. Deal Structure
a. Type of Sale: Asset sale
b. Purchase Price: $3.0M
4. Assets and Liabilities
a. Assets Included in Sale:
i. 28 rental properties in NW Indiana.
ii. Rental income stream from 27 occupied units.
iii. Management agreement with property management company.
iv. Rent to own agreements in place for ????
b. Liabilities Transferred:
i. None
5. Non-Financial Terms
a. Transition Support: Seller will assist with transitioning the business to the buyer,
including introductions to the property management company and key
stakeholders.
b. Property Management Continuity: Buyer will have the option to retain the
current property management company for seamless operations.
6. Key Risks and Opportunities
a. Risks:
i. Potential for vacancies or tenant turnover.
b. Opportunities:
i. High occupancy rate and established management make this a turn-key
investment.
ii. Potential to increase rent over time due to updated properties and market
trends.
iii. Additional income from the 28th property when rented.
iv. Rent to own is established and renters are based on the potential
to rent to own.
v. Property values have doubled over the past 3 to 4 years and are
expected to appreciate as interest rates decline.
vi. Renters are looking for rent to own opportunities. When renters
are anticipating owning the property they keep it in good condition. More
properties can be turned into rent to own. This can turn into land
contracts where the renter pays the property tax and insurance and
property owner provides financing.
vii. Rent to own can attract new renters without requiring traditional
credit checks. Many potential rent to own prospects with lower credit, but
ability to pay rent.