Real Property Investment Group, LLC - Investment Illustrations

Investment Illustrations - Examples of Real Estate Investment Analysis

Investment
Illustrations

Investment
Example A

Investment
Example B

Example Properties

Partnership Option:

This example illustrates a home purchased in partnership option. The home is located in Douglas County, GA and was purchased in August 2009 for $36,000. it was renovated for $22,000 and rents for $995.

RPIG believes that the market must eventually return to at least replacement costs once the surplus of foreclosure homes are absorbed into the market. RPIG cannot speculate how long this will take, but the example shows the equity that will be realized when the prices recovers to replacement cost.

The details are as follows:

	 5 Bedrooms, 2 Bathrooms  1,700 Sq. Feet of Living Space  Two-Car Garage with Openers  Location: Douglas, GA (Douglas County)  Monthly Rent $995  Nice .45 Acre Private Lot  Tax Assessed Value is $114,467 in 2009
Purchase Price	$36,000
Repairs	$22,000
RPIG Profit on Sale (Sold to partnership at cost)	$0
Partnership Price	$58,000

Monthly Rent	$995
Management Fee (8%)	($80)
Avg. Maintenance (7%)	($50)
Avg. Vacancy (8%)	($80)
Avg. Marketing (4%)	($40)
Taxes	($117)
Insurance	($42)
Net Income (Loss)	$586

Replacement Cost Per Sq Ft	$75
Square Footage	1,700
Total Replacement Value (not including land)	$127,500
Equity (Replacement Cost - Investor Price)	$69,500

Past performance is no guarantee of future results. There can be no assurance that Real Property Investment Group, LLC, or the real estate market will continue to achieve investment results similar to those set forth in the examples above. It should not be assumed that investments made in the future will be profitable or will equal the performance of examples in this document. The strategies described in the document are solely the opinion of Real Property Investment Group, LLC and should not be considered investment advice.