OFFERING SUMMARY 3632 Carrington...• 4 bedroom homes only make up 3.7% of housing in the...

OFFERING SUMMARY

3632 Carrington MEMPHIS, TN 38111

2 STRATEGIC MARKETS. ONE STRATEGIC TEAM

Property Offering Tables of Contents

I. Welcome Letter

II. Our Seamless Process

III. Property Offering with Neighborhood Info & Cash Flow Analysis

IV. MLS Sales Comps – 3 Up Report / Property Details

V. Renovation Scope of Work

VI. Turnkey Properties Warranty

VII. Insurance Information

VIII. Property Management Introduction

IX. Testimonials and You Tube Page Link

TWO STRATEGIC MARKETS. ONE STRATEGIC TEAM.

1060 Brookfield Road, Suite 100 Memphis, TN 38119 PHONE: 901-410-5452

FAX: 901-205-0629 TurnkeyInvestProperties.com

January 3, 2018

To our current and prospective clients:

Enclosed in this packet you will find various pieces of information about our latest offering in Memphis,

TN.

Our goal as a turnkey provider is to provide an asset that will maximize your cash flow. We accomplish

this by doing a thorough renovation that will reduce maintenance and vacancy. We also address

deferred maintenance items and add upgrades such as vinyl plank flooring and ceramic tile that are

not only more durable, they also make the home stand out above competing rental properties in the

area.

As landlords ourselves, we know through personal experience maximizing profits starts with the

renovation and continues with a strong management team, which we bring to you through our in-

house property management company.

If you have any questions, please feel free to reach out to us at 901-410-5452. We would be happy to

provide you any amount of information we can to make you feel comfortable with your investment

decision.

Thanks,

Alex Craig

President

Turnkey Properties


Defining our proven process…

Once a purchase agreement has been signed by all parties I will send you an invite

to Basecamp. What is Basecamp? Instead of having stuff scattered all over the

place — strewn across separate products, lost in inboxes, or scrawled on stickies or

notepads — Basecamp brings everything under one roof. Organized, centralized,

and clear so everyone knows what to do, everyone knows where things stand, and

everyone can get what they need without having to ask. Inside every basecamp

project you will find

o To-dos for tracking work. To-dos organize the work, set due dates, and

assign responsibility so we are able to close in a timely manner.

o Message Boards for posting announcements and updates. Discussion

boards keep the entire conversation about a specific topic together

on a single page

o Schedule for posting deadlines and milestones, and

o Docs & Files for organizing all the assets and important notes, such as

the inspection report

➢ The first to-do to address would be sending the earnest money, which would

be assigned to you, the buyer. I will confirm it was received at an later date.

➢ After you initiate the earnest money, I take the reins on most everything else,

although it is important for you to stay in contact with you lender.

➢ From here I will send the lender and the title company a copy of the

purchase agreement and communicate to the lender that I am the local

point of contact regarding information on the property and scheduling the

appraisal.

My name is Holly Evans and I will be your personal

transaction coordinator. I am here to help make the

process of purchasing an investment home go as

smoothly as possible. My goal is to take the workload

off you and coordinate all tasks needed to close. It

really is a simple process!


➢ I will provide you with an insurance quote from our preferred carrier, Insight

Risk Management, for you to review. If you wish to move forward with the

policy, I will be happy to connect you and your lender with IRM.

➢ When the rehab has been completed on the property I will ask if you would

like to use our recommend inspectors or chose one of your own. If you

choose to go with our recommended inspectors I will send a connecting

email, if not, I will provide my telephone number to you in which your chosen

inspector can reach me.

➢ At this time I will notify your lender we are also ready for the appraisal. The

appraiser will contact me directly to get this scheduled.

➢ Inspection will take place and a report will be sent to you. You will share the

report with me and we will review it, mark it up, and give it to our project

manager.

➢ Our project manager will address all issues and send me corresponding repair

pictures that I will share with you.

➢ You will receive the appraisal from your lender. We ask if you could please

upload it so we may have a record of it.

➢ At this time, closing is right around the corner. It is crucial at this point stay in

constant contact with your lender so we may close on the property. Lender

will receive the appraisal, it will go into underwriting, and then receive the

clear to close. The title company will work directly with you and your lender to

schedule a signing/closing date that work for everyone.

➢ When applicable, I will update you on the leasing status of the property on a

weekly basis.

➢ Lastly, you close on the property and I connect you directly to your account

manager with our Property Management team, rounding out our COMPLETE

turnkey operation.


• 567 Commercial Properties within1 mile

• $159,461 is avg sales price ofresidential housing within 3 miles

• Avg. sq ft of housing in the area is1,256 (1 mile or less)

• Average property turnaround every10.68 years

• 4 bedroom homes only make up 3.7%of housing in the neighborhood, thusmaking it an attractive rental

• Largest age demographic is 22 to 34,making up a total of 25.82%

3632 Carrington, Memphis, TN 38111Stars below represent properties under Management by CB Properties Memphis

This 4 bedroom 2 bath house is a 1.5 story building built in 1954 that is 1,422 square feet. Our in house property management has a nice size portfolio of homes in the area. Catty corner at the SE corner to Patterson Cove, we rented out that house at $995 in 2 weeks. Located inside the 240 loop, near the University of Memphis, 15 minutes from Overston Square, Cooper Young, East Memphis & the airport. The U of M area has undergone an dramatic revitalization of high end condos, commercial construction and most notably, the improvements to the Highland Strip which include several restaurants and added shopping & entertainment. Our spec renovation is designed to maximize cash flow through maintenance & tenant turn cost reduction and vacancy reduction as our updates will make this home an desirable place to live. Major CAPEX improvement include new HVAC and Roof. The gutting of both bathrooms will give the house an great look, plus position for less maintenance through all new plumbing.

20% Cash Flow Analysis 3632 Carrington

Turnkey Properties has vetted strategic lenders that specialize in investor loans that are able to complete loans in an timely manner with competitive rates. These lenders have experienced underwriters who know which documents to request, thus eliminating obscure document request that often times slow down the lending process and cause unnecessary additional work on all parties. While we have no problem with our clients utilizing lenders of their choice, we find it necessary to waive the 1st month lease up fee if lenders outside our network do not close within the specified contract date, if and only if the lender or lender request is the cause of the missed contract date.

Please request preferred lender list.


Comparable Three Up Report

Subject Comparable 1 Comparable 2 Comparable 3

Property Photo

Address 3632 Carrington RdMemphis, TN 38111

3549 Marion AveMemphis, TN 38111

3660 Douglass AveMemphis, TN 38111

758 Patterson StMemphis, TN 38111

Distance to Subject - 0.24 mi 0.29 mi 0.32 mi

MAAR Subdivision Sherwood Forest Colonial Heights Colonial Heights R W Rosebrough

Map 758B 758A 758A 758A

Sale Date 08/29/1997 07/05/2017 08/25/2017 11/30/2017

Sale Type Normal Sale Normal Sale Normal Sale Normal Sale

Sale Price $63,000 $102,000 $92,500 $108,000

Seller Concessions - ($4,000.00) - ($4,000.00)

Adjusted Sale Price $63,000 $98,000 $92,500 $104,000

Mortgage % & Type CU 98FH 75CV CU

Source Apr Apr MLS MLS

Effective Date 12/84 09/09 12/10 12/07

SqFt 1422 1034 1169 1277

$/SF $44.00 $95.00 $79.00 $81.00

Stories 1.5 1 1 1

Total Rooms 7 5 5 6

Bedrooms 3 2 2 2

Baths (full.half) 2.0 2.0 1.0 1.0

Parking G2D

Construction Brick/Wood Composition Wood Composition/Brick Wood Composition Brick/Other

Condition C4 -Average Condition

Year Built 1954 1922 1932 1947

Acres 0.17 0.18 0.19 0.18

Central Air No Yes Yes

Pool No No No

Heat Gas Forced Gas Forced

Fireplace 1

Min Sale Price: $92,500Max Sale Price: $108,000

Median Sale Price: $102,000

Min Sqft: 1,034Max Sqft: 1,277Avg Sqft: 1,160

3 ComparablesAvg Sale Price: $100,833

Avg $/SF: $87

COPYRIGHT © 2018 COURTHOUSE RETRIEVAL SYSTEM. ALL RIGHTS RESERVED.Information Deemed Reliable But Not Guaranteed.

1

3632 Carrington SCOPE OF WORK

Roof

Layover (waiting on roofer to inspect)

25 yr Royal Sovereign Gray Weathered Stain Guard 3-Tab Shingles

General Spec

Replace Blinds as Necessary

Closet rods in all closets

Interior 3 color Paint with focus on no paint bleeds or paint over of outlets or hinges

Interior door open and close smoothly

Kitchen and hall smoke detector along with kitchen Fire Extinguisher installed

CO2 alarm installed

Check insulation around all exterior doors

Strike plates on doors

Remove window units

Fill holes in/between bricks

Flooring

Vinyl plank in kitchen, den, dining, hall (downstairs)

New carpet in BR’s (downstairs and upstairs), stairs, and upstairs landing)

New ceramic tile in both bathrooms (tub surrounding)

Plumbing Spec

Check all valves, P-traps and DWV pipe for leaks (replace supply lines, valves and p-traps as necessary).

Check shower drains and area drains for proper installation and drainage

Inspect plumbing in crawl space and attic

Check toilet for property installation. Repair and replace as necessary

Replacement toilet if needed (HD # 340995)

Repair & replace exterior hose bibs as necessary

Check Washer Box for property function and drain fall and venting

Check DWV system for plumbing back up (run all fixtures simultaneously for long period of time)

All plumbing pipes to be insulated

When HWT is installed code has to be met

Install extension pipe on temperature/pressure relief valve on HWT if needed

HWT 2002 – Install NEW

Laundry box. OK

HWT NEW. Existing gas tank will not pass code (too close to the rafters)

2

Electrical Spec

All outlets work and verified through tester

No open grounds/all new outlets and switches

Weather heads checked and replaced/repaired as necessary

All interior and exterior outlets/switches KEEP

Open junction boxes closed

All interior/exterior lights working

Proper Breaker Amps in box for reciprocating item

Service box adjustment to meet code

Service Panel and weather head NEW

Move 220V stove outlet to the new stove location

HVAC Spec

Condensate line checked for clearance

Ducts not smashed

AC’s exterior lines insulated & cage installed

Relocate gas, drain, and duct pipes as needed

Remove window units

AC 1998. NEW

Furnace 1998. NEW

Exterior Spec

All grounds cleaned of construction debris and no paint on foliage

All windows open and lock, check for cracks

Install Security Doors x2 (master BR and garage to back yard)

Paint wood siding, trim and shutters

Pressure wash walkway to the door

Repair soffit, fascia, and siding (massive rotted wood)

All exterior lights working

Secure shutters against brick

Install approximately 70 linear feet of fence

Install gate

Remove posted mail box and paint existing wall mounted.

Landscaping

Clean out beds

Clean grounds

Put mulch on existing flower bed in front

Plants bushes

Mow grass

Remove branch from backyard

Attic

Attic doors & attic in general insulated well and clean

3

Hallway (down and upstairs)

Spec BN (HD #353598)

Den

Spec 52” fan (HD# 165474)

Dining Room


Upstairs bath Gut it Replace toilet (HD # 340995)

Reglaze tub

Spec shower faucet and head (HD# 1000017557)

Counter ok

Spec sink faucet (HD #505838)

Spec medicine cabinet

Kitchen & Area off Kitchen

Paint cabinets

Spec Vent-A-Hood (HD# 435140 Black)

Move above stove cabinet closer to back door

Sink ok

Keep existing faucet if possible

Spec HD countertops

Spec white kitchen fan (HD# 754470)

Open space for dishwasher

Spec Dishwasher (HD #527767) Black

Laundry

Will determine with plumber if it is feasible to keep it upstairs instead that having it in the kitchen as

originally was)

Stairs

New handrail

Bed 1 (downstairs)


See Master bedroom for wall instructions

Bed 2 (upstairs)


Secure paneling and paint

4

Bed 3 (upstairs)


Secure paneling and paint

Master Bed (off stairs) (downstairs)

44” fan Spec (HD #1000725632)

Cancel existing door

Open new entry through hall

Build wall between the two bedrooms

Downstairs Bath

Gut it

Reglaze tub

Spec light (4bulb HD# 108898) Spec shower faucet and head (HD# 1000017557)

Paint vanity

Counter ok

Spec sink faucet (HD #505838)

Spec medicine cabinet

Front Porch

Spec ceiling light (HD# 1000640737)

Security door OK

Paint floor

Eliminate posted mailbox

Spec wall mailbox

Back Patio

Spec wall light (HD# 1000527751)

Security door OK

Remove 2x4’s

TWO STRATEGIC MARKETS. ONE PROVEN TEAM.

Turnkey Properties, GP

OUR MAINTENANCE GUARANTEE Property inspections are not always successful in finding all the flaws with a

property as our home inspections are done typically while the home is vacant

or soon after a tenant moves into the property. Such flaws that are present may

only surface when a tenant has been living in a house cycling and running

simultaneous items within the major systems of the house. To protect our clients

cash flow and give them piece of mind with their purchase, all Turnkey

Properties come with a maintenance guarantee of 90/180 days after the

purchase date listed on the closing settlement statement. If a tenant is not in

place at time of closing, the warranty would begin after tenant occupancy as

listed by the 1st day on the tenant lease.

The 90-day warranty covers items within the 4 walls of the home. The 180-day warranty covers the HVAC

system of the house. Depending on when the property was bought, it may be impossible to test the entire

heating and air system. For example, if a property was bought in January, it would be impossible to test

the AC for property function. The 180-day warranty is designed to give our investor piece of mind that the

heating and air system is functioning properly.

Between our renovation, the client’s property inspection and this warranty, we are successful in in

substantially reducing the maintenance cost well below our projections during the first few years of

ownership, especially during the initial tenant lease. This warranty is our commitment that we stand by

the work performed during the renovation of the property and from the inspector’s punch list; however,

there are a few items that can happen completely out of our control, which are listed in the exclusions

below.

Certain items are excluded from the 90/180 day warranty. These items include:

• Damage done due to tenant negligence

• Vandalism/Theft

• Acts of God

• Force Majeure

• Power Surges

Property Address: ____________________________________________________________________

Buyer: _______________________________________________________________________________

Seller: _______________________________________________________________________________

Date: _______________________________________________________________________________

• Appliances not installed by Memphis Turnkey

• Pilot lighting of Furnace

• Vermin

• Products that fall under Manufactures warranty

TWO STRATEGIC MARKETS. ONE PROVEN TEAM.

Dear Investor,

As you know, we are constantly developing new techniques and ideas for maximizing the

returns on our properties. One of our largest expenses is insurance, and thus we have worked

with a local broker, Insight Risk Management, to put together a program that will afford all of

our clients the best possible coverage at the most competitive rates. By aggregating all of our

insurance purchasing with a single company, we have been able to leverage the volume to

get better pricing than can be achieved by any one investor.

This program is tailored specifically for our rental properties and has the following coverages:

1. Replacement cost coverage so that the insurance company is obligated to replace

the property, subject to the deductible, without any allowance for depreciation or

similar limitations

2. Limits of $90 a square foot, which should be appropriate under most circumstances,

though you should review your own home to ensure this is sufficient

3. Lost rents of $12,000 a year should a large loss occur

4. $2,500 deductible without any other charges such as depreciation or coinsurance

5. $1,000,000 of general liability coverage per location, thus providing separate limits for

each house. There is a $3,000,000 aggregate.

6. Standard general liability wording without any exclusions for assault, battery, sexual

abuse or animals

7. No coverage for contents, so you are not paying for any contents that you do not own

8. There is no vacancy limitation. Theft and vandalism is covered the entire term.

9. “A” rated carrier

A typical house costs about 33% less on this program than with other carriers, and no individual

underwriting is required.

Sincerely

Alex Craig

President

Turnkey Properties

Date: 12/5/2017

Thank you for your interest in the CB Properties insurance program. It is written with Great American E

& S Insurance Company. Below is a summary of the program. If you have any questions, please feel free

to reach out to us. Becky Parker is the program administrator and can be reached at +1 901.202.8647 or

[email protected].

• This program was specifically designed for the rental houses that CB Properties manages and

has been tailored to fit their profile. Thus, in order to qualify for the program, your house must

presently be managed by them. If at any time this is not the case, we will have to arrange for an

alternative insurance arrangement for you.

• Perils: Special. This is the broadest coverage available, though it excludes earthquake and

flood.

• Valuation basis: Replacement cost. The policies replace any damaged building, without

subtracting any amounts for depreciation, provided you rebuild. The alternative valuation basis

is called Actual Cash Value, but this should be avoided if possible because it can leave an owner

without sufficient coverage to cover losses.

• Limit: We use the Shelby County Assessor to estimate the square footage of the building. If this

is incorrect, then please let us know. Buildings are insured for $90 a square foot.

• Contents: No contents coverage is typically provided as most owners have no contents in the

building.

• Business income: $12,000 loss of rents is included to protect against loss income due to an

insurable event.

• Sewer backup sublimit of $10,000 per location.

• Deductible: $2,500 per occurrence.

• Liability: each house has a dedicated $1mm limit per occurrence / $3mm in aggregate limit.

Thus, any liability losses that occur to other members of the program have no effect on the

limits that you will have dedicated to your home.

• Vacancy: There is no limitation. Theft and vandalism are covered.

• Additional insureds: the management company as well as any lenders is automatically included

as additional insureds on the policy at no extra charge.

• Coverage is contingent on CIS, Services receiving the premium, and no coverage is in force until

such premium has been received. Coverage will be effective from the Start Date and run 12

months. You will be contacted at renewal to see if you would like to renew coverage.

Based on the information that we have been provided, below is a quote for your investment property:

Property Address: 3632 Carrington Road, Memphis, TN 38111 Premium + Tax = $604.52

• Building limit: $133,650 (1485 sq ft)

• Business income limit: $12,000

• Deductible: $2,500 for all perils.

• General Liability limit: $1mm per occurrence / $3mm in aggregate.

[email protected].%20%20%20

CB Properties Memphis · 1060 Brookfield Rd · Memphis, TN 38119

ww.MemphisRentalHomes.com · Investor Hotline: 901-410-2355

Property Management Fee Structure • House monthly management fee is 9% of rent collected with minimum of $50. Memphis Turnkey

Clients have a discounted rate of 8%• 75% of first month rent or $750, whichever is greater thereafter; Memphis Turnkey clients have their

first tenant placement fee after purchase waived• 15% maintenance over vendor invoice and materials purchased• 5% fee if property management pays any invoices on the owner’s behalf such as attorney invoices,

utility invoices, taxes and insurance. Owner has the option to pay these to avoid the additional markup• $150 lease renewal fee. This will be returned to the owner if the tenant moves out before fulfilling half

of the renewal• Late fees are retained

Property Management FYI’s: • For best customer service of our investors and tenants, property management pays a month inarears.

This allows us to quickly service our tenant’s maintenance issues and have to request funds wiredwhich can be an inconvenience to our investors

• In most cases, we collect a reservation fee from our tenants in lieu of a security a deposit. Thereservation acts a security deposit, but instead of property management keeping those funds in anescrow account, it is paid to the investor as income after tenant occupancy. In other words, it is likegetting your security deposit up front instead of upon move out. If a tenant insist on a security deposit,we will collect and put in our escrow account at Triumph Bank

• You will be assigned a Portfolio Manager as your point of contact for all communications. ThisPortfolio Manager will also be the point of contact for your tenant too. Upon closing, you will begiven not only that individuals direct line, but also an investor hotline so that you are 99% guaranteedto get a person on the phone when you need us. Customer service is very important to us and thissystem allows for best customer service.

• We use Propertyware as our Property Management software. For best customer service, we stronglyrecommend utilizing your portal to communicate with your Portfolio Manager

• $400 is the threshold for having to request owner permission to move forward. You will get anotification, if you allow, on every maintenance issue that is entered. That is your opportunity toengage us with questions

• We focus on transparency with our billing and maintenance work. You will see before and afterpictures, along with a vendor invoice to match. Our goal is for our investors to never question whetheror not something was done

For an more detailed overview of CB Properties Memphis, please see the secured link below:https://memphisturnkeypropertiesgp.box.com/v/CBPropertiesOverview


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Tips and Past Renovations. Click on The You Tube

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OFFERING SUMMARY 3632 Carrington...• 4 bedroom homes only make up 3.7% of housing in the...

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