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Completed Debt
Residential
Ridge Single Family Rehab
Everett, WA
INVESTMENT STRATEGY
INVESTMENT TYPE
Debt
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100% funded
Offered By Real Property Associates
%* TARGET IRR 8.0%-%
* TARGET EQUITY MULTIPLE
Estimated Hold Period 3 to 6 months
Estimated First Distribution
*Please carefully review the Disclaimers section below, including regarding Sponsor’s assumptions and target returns
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Overview
Management
Cumulative Distributions

Real Property Associates

Owned and operated by Gordon Stephenson and Jay Young, the same team who founded the company in 1991, Real Property Associates (RPA) offers an unbeatable blend of knowledge, experience and commitment — both to the community it serves and to a vision of excellent service and innovative solutions.

Backed by its strong, professional staff, RPA has grown steadily over the past 21 years, building on its solid reputation for high ethical standards, sound business practices and proven track record in brokering residential, multi-family, commercial and raw-land real estate.

Located in Seattle, RPA has 43 associate brokers and agents serving clients throughout the Puget Sound Region. In 2011 RPA was named the 2nd largest independent real estate company, and 11th largest residential brokerage in the state, by the Puget Sound Business Journal. In 2010, RPA’s brokerage business consisted of 354 residential and commercial sales transactions which represented over $170 million in gross sales.

RPA looks forward to playing an ongoing part in the region’s growth and continuing to create opportunities for the people who call Seattle home.

RPA also specializes in property management in residential properties and suburban commercial property rentals in the Puget Sound area. Through a state-of-the-art process, they have streamlined property management services, ensuring a more prompt rent collection procedure, a fully electronic payment remittance system, and e-mail reporting of monthly financial information. RPA currently employs over 20 full time property managers, bookkeepers, admins and maintenance personnel. These employees oversee and are responsible for the operations of managing over 1,500 residential and commercial rental units. The combined market value of this portfolio is over $200 million.

Real Property Funding Group, LLC, has operated as a subsidiary of RPA since 1991. It performs mortgage brokerage and other financing services, and since 2010, has acted as a principal, in cooperation with a group of investors, in purchasing, rehabbing, and reselling single family homes and condominiums in the greater Seattle area.

The advantage Real Property Funding Group has is the depth of their market knowledge in the Greater Seattle area. Gordon and Jay have both been active brokers in the Seattle market since the 80’s, and have represented thousands of buyers and sellers during their careers. They personally preview each property that is purchased and directly oversee the rehab process. Upon completion of the work, they have a team of brokers who help with staging, marketing and resell of each home. The average time on market for these transactions is well under 30 days.

In short, the Company provides a vertically integrated approach to investing in this property type – from finding the deal, to closing the purchase, then administering just the right amount of work to ensure the dollars added in the project create incrementally more value to the property, and overseeing a quick sale and closing on the resale, their experience has created a successful model which works well in this current real estate environment.

http://www.seattlehouses.com/
  • Gordon Stephenson
  • Jay Young
Gordon Stephenson

Gordon acts as the managing broker for the company, overseeing 43 agents and brokers in their sales activities, and continues to personally represent buyers and sellers. He is also involved with RPA’s growing commercial real estate division where he provides management and consultation for commercial property owners. Gordon grew up in Lake Forest Park and graduated from North Seattle's Shorecrest High School in 1984. After graduating from Stanford University in 1988 with a degree in economics he returned to Seattle and started working in real estate as a sales agent, first with Mac- Pherson's in their University District location, and then with Windermere at their Northgate office. Gordon lives with his family in Lake Forest Park, North Seattle and serves on the board of trustees with Seattle's Union Gospel Mission (www.ugm.org) and Zillow.com 

Jay Young

Jay partnered with Gordon to start Real Property Associates with the goal of providing excellent brokerage and property management services. Their original office was in Edmonds until they expanded their business and moved to Seattle in 1996. Jay oversees RPA’s property management division. He is also involved in the brokerage area, representing buyers and sellers, and in addition, spends time coordinating the management of Jay and Gordon’s rental portfolio. Jay developed an interest in real estate investing while in college and arranged to receive credit towards his degree for some of his real estate work. For several years he purchased, developed, and managed properties as an investor and partner in properties from Seattle to Everett. Jay is a lifelong resident of Edmonds and a graduate of King's Garden Schools. He graduated in 1988 from Seattle Pacific University with a B.A. in real estate and business. He has served as a board member of the First Avenue Service Center, a homeless shelter in Seattle's Belltown neighborhood and is active in local boys and girls clubs.

Track Record

Business Plan
Property

At A Glance

Property Type: Residential, Single-Family
Investment Type: Rehab
Estimated Rate of Return: 8% annualized
Estimated Hold Period: 3-6 months
Region: Everett, WA
   
Purchase Price & Improvements: $92,000 + $23,000 = $115,000
Loan Value: $80,000
Loan to Cost: 69%
Est. Value After Repair: $200,000
Est. LTV After Repair: 40%
Est. Protective Equity After Repair: $120,000

Summary

Investors in this opportunity will pool their money to make a loan to a real estate investor, Real Property Associates, for the purpose of a rehab.  Real Property Associates is performing renovations on the property and will look to sell as quickly as possible at a higher price than the purchase price.  Upon completion, the property will look like other renovations Real Property Associates has executed.


Investor will receive interest payments of 8%, with a final, balloon payment at the end of the loan term. The loan is secured by the property, in first position.

Risk Mitigation

  • Real Property Associates is a real estate investor with a history and a track record of success.
  • The loan is secured by a deed of trust.
  • The loan is protected by title insurance.
  • Investor returns are not contingent on the appreciation of the home value and investor returns do not increase based on the final sale price. Even if the property does not sell for the projected sale price, the borrower is still obligated to repay the loan.
  • In a worst case scenario, Realty Mogul will foreclose on the property. Upon acquisition of the property, Realty Mogul will facilitate the sale of the property and will distribute the proceeds to investors according to the percentage of the total investment opportunity they initially funded.

 

Location

The property is located in the Evergreen Way / Madison St neighborhood of Everett, WA, an urban neighborhood. Beverly Lake is less than half a mile from the property. 

Major retail establishments including Safeway, Starbucks and Wells Fargo are within one mile from the property.  The nearest schools are Evergreen Middle School and Cascade High School.

According to Zillow, this home is priced 26.2% less per square foot than median homes in the area.  Zillow predicts Evergreen home values will increase 4.8% next year.

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(877) 781-7062

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