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Brian McCallion

Bus:
250-979-0570
Cell:
250-215-1763
Fax:
250-448-4973
Email:
brian@
eaglerealestate
investments.com

Address:
Box 22108
Capri Post Office
Kelowna, BC
V1Y 9N9

...helping you achieve your financial goals

Pro Forma

“Money, which represents the prose of life, and which is hardly spoken of in parlors without an apology, is in its effects and laws, as beautiful as roses. ”
-Andrew Carnegie

“Wall Street is the only place that people ride to in a Rolls Royce to get advice from those that ride the subway.”
-Warren Buffet, Investor

Financial Analysis & Pro Forma

Property Data: Townhouse – 3 bdr, 2 bath

Property Name: Potential Investment

Address: North East

City/Area: Edmonton

Asking Price: $209,900.00

Projected Purchase Price: $200,000.00

Current Market Value: $200,000.00

Square Feet: 1162 sq. ft.

Income Details: Assumed Increase 3.00%

Rental Income Monthly Rent Projected Monthly Annual Rent Projected Annual
Rental Income $1,300.00 $1,300.00 $15,600.00 $15,600.00
Total Rent $1,300.00 $1,300.00 $15,600.00 $15,600.00
Less Vacancy Allowance of 2.00% $26.00 $26.00 $312.00 $312.00
Gross Effective Income $1,274.00 $1,274.00 $15,288.00 $15,288.00

Expense Details: Assumed Increase 3.00%

Expense Monthly Rent Projected Monthly Annual Rent Projected Annual
Maintenance (ongoing) $39.00 $40.17 $468.00 $482.04
Insurance Premium $20.00 $20.00 $240.00 $240.00
Property Management Fees $130.00 $133.90 $1,560.00 $1,606.80
Property Taxes $83.33 $83.33 $1000.00 $1000.00
Total Operating Expenses $272.33 $277.40 $3,268.00 $3,328.84
Net Operating Income $1,001.67 $966.60 $12,020.00 $11,959.16
Operating Expense Ratio 21.38% 21.77% 21.38% 21.77%

Purchase Details:

Mortgage Description Principal Monthly Annual
1st. Mortgage $140,000.00 $816.67 $9,800.04
Total Debt Funding $140,000.00 $816.67 $9,800.04
Expected Morgage Payments $816.67 $9,800.04
Expected Cash Flow $185.00 $2,219.96
Cash-On-Cash Return 3.14%
1st. Year Paydown $0.00 $0.00
Cash-On-Cash "PLUS" $185.00 3.14%

Closing Costs:

Description Amount
Property Inspection-On $500.00
Legal Acquisition (including disbursements) $1,000.00
Staying Power Fund- Capitalized $3,900.00
Renovations-On Aquisition $5,000.00
Appraisal- On Aquisition $300.00
Down Payment Required $60,000.00
Deposits $0.00
Total Closing Costs $10,700.00
Expenses $272.33
One Time Expenses $0.00
Total Cash Required $70.700.00

Income & Gain Projections

5 Year ROI: Fixed Appreciation Year 1 Year 2 Year 3 Year 4 Year 5 Total
Cash Flow $2,219.96 $2,159.12 $2,517.89 $2,887.43 $3,268.06 $13,052.46
Mortgage Paydown $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Capital Appreciation @ 5.00% $10,000.00 $10,500.00 $11,025.00 $11,576.25 $12,155.06 $55,256.31
Estimated Market Value $210,000.00 $220,500.00 $231,525.00 $243,101.25 $12,155.06 $255,256.31

Return on Investment Calculations

5 Year ROI: Fixed Appreciation Year 1 Year 2 Year 3 Year 4 Year 5 Total
Total Capital Invested $70,700.00 $70,700.00 $70,700.00 $70,700.00 $70,700.00 $70,700.00
Total Return Achieved $12,219.96 $12,659.12 $13,542.89 $14,463.68 $15,423.12 $68,308.78
Internal Rate of Return 17.28% 17.91% 19.16% 20.46% 21.81% 96.62%
Investor: 8.64% 8.95% 9.58% 10.23% 10.91% 48.31%
Brian McCallion: 8.64% 8.95% 9.58% 10.23% 10.91% 48.31%

Investor Receives:

Initial Capitol: $70,700.00
50% Cash Flow: $6,526.23
50% Appreciation: $27,628.16
Total: $104,854.38*

* 50% of Selling Costs Not Included

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