Fairfield Lakes Townhomes Beavercreek, Ohio

2415 Hemlock Drive Beavercreek, Ohio 45431

“The pessimist sees difficulty in every opportunity. The optimist sees opportunity in every difficulty.” Winston Churchill

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“Men do best that which they wish to do.” Andrew Carnegie

 

CONFIDENTIALITY DISCLOSURE

 

This information is authorized for use only by a limited number of existing investors who have been qualified and accepted by the sponsorship group. This material does not constitute an offer or a solicitation to purchase securities. An offer can only be made through a private placement memorandum. This document is an informational summary and is authorized for use only by prospective investors who have an existing relationship with the members of Ohio One, LLC and meet the suitability standards established by Ohio One, LLC for participation in this securities offering. Disclaimer: This summary does not claim to be complete and will be supplemented with additional information at such time as it is requested by an interested investor. The use of this material is authorized only for those to whom it is originally provided. This is not an offer of a security. An offer can only be made through the complete Private Placement Memorandum. All financial projections are not guaranteed and are subject to change without notice at any time due to factors beyond our control.

 

 

 

 

“It ain’t over till it’s over.” Yogi Berra

EXECUTIVE SUMMARY

 

 

 

Property: The Beavercreek community is an A class area. Fairfield Lake Townhomes is a friendly and comfortable B+ class townhome community in Beavercreek where everyone has their own house. Rental townhomes are not the norm in the area. These safe and secure townhomes, with 2 and 3 bedroom offerings, are within one of the richest counties in Ohio. Investors: Equity investors in Fairfield Lakes Townhomes will receive an annualized return of over 16% per year. With quarterly payments of the cashflow. The project has 3 exit plans possible.

 

Plan 1 would be to sell in year 5. This would result in all capital investment being returned .

Plan 2 is an eight to ten year hold, with a refinance at year 5, this is market dependent. This should result in the initial capital investment returned to our investors at that time.

Plan 3 would be to sell when the value of the property has reached $16,000,000.

The safety of your capital is of primary importance and we made this as recession proof as possible.

 

Opportunity:

Currently rents average $995 per month, which is  $150 – $250 under market rents without any updates. We are projecting to raise the value of the property by 10% at the end of year 1.

Area:

Fairfield Lakes Townhomes are located in Beavercreek, OH, an 18 minute commute for most people. Beavercreek is a suburb of Dayton, OH, a fast growing market according to the Milken Report. Crime is low to normal and employment is higher than normal

“You were born to win, but to be a winner, you must plan to win, prepare to win, and expect to win.”    – Zig Ziglar

OPPORTUNITY EXPANDED

 

 

 

The return of our partner’s investment capital is our utmost and primary concern.

As we secure this property we will return the investors capital as soon as possible, we want to expand your capital with a solid investment and a great return.

We investigated the area and found that Greene County, where Beavercreek is located, is one of the top ten richest counties in Ohio.

This B+ townhouse community is located solidly in an A class neighborhood. This property will give our investors an annualized return of 16% over the course of the project.

Currently the rent at Fairfield Lakes Townhomes averages $995 per month. Their competition, which looks very similar is $150 – $250 more than Fairfield Lakes. By raising rents to market we should be able to increase the value of the complex by 20% at the end of year 3.

On top of that, this is as close to a recession proof deal as we could make it. Current average rent levels ($1200) are approximately 18% of the gross family income for the area. Most financial analysts allow for 33% of a families gross income to be paid in rent and still have a stable financial budget. Using that percentage, gross income could drop more than 50%, to $43,000, and they still could afford to live in the Fairfield Lakes Townhomes.

The family median gross income is above $95,000 and income has grown 20% since 2015.

Jobs are expected to grow by almost 39% over the next 10 years, faster than the rest of the United States. In addition, unemployment (3.9%) is well below the national average and below the Ohio average.

Employment is spread over 18 different industries, with 80% of all jobs still spread over 7 industries. Fairfield Lakes Townhomes offers an investor a high return for a premier asset in a growing area.

“It is not necessary to do extraordinary things to get extraordinary results.” Warren Buffett

 

PROPERTY DESCRIPTION

 

 

“Today’s accomplishments were yesterday’s impossibilities.” Robert H. Schuller

PROPERTY DESCRIPTION

 

 

Unit Amenities

Pet friendly Front Porch Private Rear porch Large Eat in Kitchen Crown Molding Cabinetry All Electric Kitchen Appliances Including Refrigerator, Stove, Microwave and Dishwasher Gas Heat and Water Ample Storage Space Walk in Closets Jacuzzi Bathtubs Cathedral Ceilings Skylights* Gas fireplace* Cable ready Central Air Conditioning Military Transfer clause

 

 

 

“Attitude is a little thing that makes a big difference.”
– 
Winston Churchill

PROPERTY DESCRIPTION

 

 

Common Area Amenities 

2 Assigned Parking spaces 2 Beautiful Ponds 24 hour On-Call Maintenance On-Line Rental Payments Playground Basketball court On site Management Office

“Whatever the mind of man can conceive and believe, it can achieve.” Napoleon Hill

PROPERTY LOCATION

 

 

 

“A nickel ain’t worth a dime anymore.” Yogi Berra

PROPERTY LOCATION

Wright-Patterson Air Force Base is north of townhomes about 6 miles.

 

 

“Anything worth having is worth working for.”  – Andrew Carnegie

MARKET INFORMATION

 

Jobs

Average Commute time (Shorter than US Average) Beavercreek Median Family Income (Better than US average) Cost of living (Lower than US Average)
Top 8 industries 1 Mile Radius- Employment Density
Employees in Area
Wright-Patterson Air Force Base, hosted by the 88th Air Base Wing, employs
Current Job Openings
Unemployment (Better than US average)

19 minutes
$97,123
3.9% Health care and social assistance, Public administration, Educational services, Professional & scientific & technical services, Manufacturing, Retail trade, Accommodation, Finance and insurance Above Average
81,435 26,000
24,954
3.90%

“Success must never be measured by how much money you have.” Zig Ziglar

MARKET INFORMATION

Growth

Population growth since 2000   21.83%

Past 5 Year Job Growth 1            11%

5 Year Projected Growth             19%

10 year Job Growth                      39%

 

Education

Student to Teacher Ratio                                                      19.1

Education levels of Residents High School Graduates    97%

4 yr College Graduates                                                         50%

Post 4yr Degrees                                                                     6%

 

 

“The way get started is to quit talking and begin doing.” Walt Disney

MARKET INFORMATION

Crime Violent

crime is defined by 4 categories: murder and non-negligent manslaughter, forcible rape, robbery, and aggravated assault. The US average is 31.1. In Beavercreek that reference number is 20. Property crime includes the offenses of burglary, larceny-theft, motor vehicle theft, and arson. The object of the theft-type offenses is the taking of money or property, but there is no force or threat of force against the victims. The US average is 38.1, whereas Beavercreek is at 37.

 

Climate

Beavercreek, Ohio, gets 41 inches of rain per year. The US average is 39. Snowfall is 17 inches. The average US city gets 26 inches of snow per year. The number of days with any measurable precipitation is 78. On average, there are 178 sunny days per year in Beavercreek, Ohio. The July high is around 85 degrees. The January low is 21.

“If you are working on something that you really care about, you don’t have to be pushed. The vision pulls you.” Steve Jobs

 

MARKET INFORMATION

 

Housing

Renters            26.81%

Vacancy           5.24%

Lifestyle

Minutes from I-675, I-35, and I-70 Close to The Greens Shopping Center Close to Fairfield Commons Mall 46 restaurants in Beavercreek   “If you are working on something that you really care about, you don’t have to be pushed. The vision pulls you.” Steve Jobs

INVESTMENT STRATEGY

 

Our primary strategy is to Preserve Capital. Secondary to that is to create a Good Rate of Return.

 

Preservation of Capital

In order to preserve capital, we needed to look at the economics of the area and try to recession proof this project. We found that Greene County has one of the highest family incomes in Ohio. Job growth is projected at 4% per year, over the next 10 years. In addition, the current high market rent is 18% of the gross income. Gross income could fall 50% and the townhomes would still be affordable. We found that the area has Wright-Patman air Force Base is a strong civilian employer, but the area is served by 8 strong industries, making up 80% of where the income comes from Unemployment is under 4% which is lower than the U.S. or Ohio rate.

Create a Good Rate of Return

We will increase rent to market levels and decrease expenses during the first 2 years so that the value of the property goes from $10,900,000 to almost $13,500,000 – a greater than 20% increase. By year 5 the value of the property should reach almost $16,000,000 and that is the year we remove our equity through a sale or refinance. With a sale in year 5 the average rate of return for the project will be about 16%.

Securing the asset

Through normal move outs and lease renewal during year 1 we expect our average rent to recover 50% of the market rent difference. The remaining difference will be recovered in year 2. We are anticipating a higher than normal vacancy during that period and are using the current vacancy for the remaining term, though it is expected that occupancy levels will rise to almost 96% by year 5. Throughout the hold period we will continually be helping the residents to want to stay. We will give residents the ability to feel in control of their townhomes, while maintaining the community and reducing costs. Creating a safe and fun environment is the primary way to keep happy residents. Our residents are what give true value to our asset. “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” Warren Buffett

Note: The financial assumptions displayed on this page are only projections and are not guarantees of any sort. Actual returns may vary, due to economic and marketplace factors beyond our control. The Property may be sold sooner or later than estimated hold time.

 

“Whether you think you can or think you can’t, you’re right.” Henry Ford

5 YEAR BUDGET AND PROFORMA

NOTE: Through normal move outs and lease renewal during year 1 we expect our average rent to recover 50% of the market rent difference. The remaining difference will be recovered in year 2. We are anticipating a higher than normal vacancy during that period and are using the current vacancy for the remaining term.
The financial assumptions displayed on this page are only projections and are not guarantees of any sort. Actual returns may vary, due to economic and marketplace factors beyond our control. The Property may be sold sooner or later than estimated hold time.

“Do what you can with all you have, wherever you are.” Theodore Roosevelt

ACQUISTION EXPENSES

Note: Closing Costs are estimates and will be finalized upon acceptance and commitment of loan package.

 

IMPROVEMENTS AND REPAIR COSTS

 

 

“You’ve got to be very careful if you don’t know where you are going, because you might not get there.” Yogi Berra

 

PROPERTY CASH FLOW AND EQUITY RETURN

Investors Return (Cumulative)

 

NOTE: Through normal move outs and lease renewal during year 1 we expect our average rent to recover 50% of the market rent difference. The remaining difference will be recovered in year 2. We are anticipating a higher than normal vacancy during that period and are using the current vacancy for the remaining term.

The financial assumptions displayed on this page are only projections and are not guarantees of any sort. Actual returns may vary, due to economic and marketplace factors beyond our control. The Property may be sold sooner or later than estimated hold time.

 

“Strive not to be a success, but rather to be of value.” Albert Einstein

 

 

EQUITY RETURN AT RESALE

 

 

“Take one day at a time. Today, after all, is the tomorrow you worried about yesterday.” Billy Graham

RENT COMPARABLES

 

 

“I attribute my success to this: I never gave or took any excuse.” Florence Nightingale

 

 

MANAGEMENT TEAM MEMBERS

Patrick Brown

Patrick has been involved with real estate since 2009. Patrick is the managing member. He learned from the ground up working on his father’s projects how to buy, rehab and lease a property. He has been buying real estate since 2014 when he began to create his own single-family rental portfolio in Maryland. He has seen the opportunity for multi-family ownership in emerging and stable markets throughout the United States.
“Our buying criteria consists of finding multifamily properties in U.S. emerging markets that have substantial upside in income growth and appreciation from improved management and operation. We look for properties in good locations that have significant upside in value by increasing below market rents, controlling above average expenses and may need a minor repositioning. This combination results in a substantial increase in the cash flow and value of the property, which our investors can profit from.”
His contact information is 443-682-2286
Patrick@psbinvestmentgroup.com

 

“Life is 10% what happens to me and 90% of how I react to it.” Charles Swindol

Stephen Brown

The second member of the partnership is Steve Brown. Steve began his real estate investing career in 1987. For the next 20 years he concentrated on purchasing properties that needed some help, renovating those properties to today’s standards, and then reselling those properties to first time home buyers. For the past 10 years he has concentrated on purchasing, renovating and renting affordable and safe housing in Maryland. In 2015 he began to expand his focus to Multi-family buildings in fast growing markets throughout the United States.
“It’s most important to me that I return all of an investors initial capital and give them the return I said they would get. Nothing is guaranteed but, for my son and myself, our word is our bond. If we say it’s going to happen, we will do everything within our power to make it happen and all of our investors have been happy with the results.” His contact information is 410-812-6337
Steve@psbinvestmentgroup.com

 

“With integrity, you have nothing to fear, since you have nothing to hide. With integrity, you will do the right thing, so you will have no guilt.” Zig Ziglar

 

Robert Ritzenthaler, CPA

Robert is the CFO of the REM Equity group. The REM Equity Group is a real estate investment company focused on generating capital gains, passive income, and long-term equity appreciation for its investors and owners through the purchase and leverage of undervalued real estate investments. We specialize in creating wealth for our clients while utilizing our creative skills to renew and reposition commercial real estate diligently and with integrity. For the past 17 years Robert has been involved in completing over $100 million of commercial and multi-family real estate transactions from New York to Florida. During that same time Robert was instrumental in building a commercial construction company and property management business to further monetize the portfolio investments that were made. Robert has also spent time on Wall Street helping raise capital and launch a $72 million technology hedge fund. As a CPA with many years of CFO experience, Robert also understand the importance of knowing the numbers and managing risk.

 

“The two most important days in your life are the day you are born and the day you find out why.” Mark Twain

 

Nicholas A. Singh

We are contracting with a premier local property management team, Simply Management. Nicholas A. Singh is the president of Simply Management, which is part of Berkshire Hathaway. Mr. Singh has over 10 years of property management experience. Working with his father and family and then starting up his own management company, gaining invaluable experience in the Dayton and surrounding markets. Having gained the trust of property owners and residents, Mr. Singh has been able to help increase the value of managed properties while providing an enjoyable and safe residential experience.

Steven D, Rinaldi, P.C.

We have retained Steven Rinaldi for handle all of the Securities and Exchange Commission legal paperwork and submissions. His offices are outside on Washington, D.C. but is licensed to practice in all 50 states. He is an accomplished SEC attorney and used by many syndication investors. Steven Rinaldi has had his own law firm in downtown Bethesda concentrating on business law matters and intellectual property matters since September 2005

 

“We become what we think about.” Earl Nightingale

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