PRIME INDIANAPOLIS COLLEGE HOUSING PORTFOLIO –ESTABLISHED/PERFORMING A/B

Keller Williams Realty The Indy Property Source

SELECT, PRIVATE OFFERING OF SEASONED PORTFOLIO• Acquisitions stem from 15 years+ ago purchasing model

• Managing Member attended UINDY; played Division II Football; graduated from college realizing need for quality housing

• Portfolio has excelled at marketing, exposure for units and keeping pace with student demand

• Worked with school, community, coaches to place students

• Located in most sought after neighborhood for landlocked campus

• Increased demand has led to steadily appreciating rental rates

• Potential to add up to 5 bedrooms in existing units to increase rates

• Seasoned, established income producing Student Housing Portfolio

PROPERTY PROSPECTUS• Overview of per property details, amenities, opportunities, numbers• Photo gallery showing property (not all of these are the most recent photos but give a good

idea of what the property is)• Tenants are college students and will strive to have units show-ready if inspecting in person• Typical turnover is 1-3 years; renewing at same time• Ability to add parents (if applicable) as co-signers on leases• Recommended length of the lease is 2 years• Can build in annual rent increases at 3-5%• 7.8% Cap Rate for stable, proven, established investment vehicle with steady appreciation

expected• With $35,000 in renovations to add 5 Bedrooms across portfolio, increased 10.12% Cap Rate

with cash flow increasing gross annual rent by $21,000• At $$25,000 in renovations to add 4 Bedrooms across the portfolio, cash flow increases $16,800

in gross rent per year to obtain 9.7% Cap Rate (acquisition plus rehab)

INVESTMENT CALCULATIONSProforma Value Added Proposition (Add Beds)

Purchase Price $625,000 Price + Remodeling $660,000

Rent $5,950 Rent $7,700

Property Taxes $8,477 Property Taxes $8,477

Insurance $3,248 Insurance $3,248

Management $595 Management $770

Maintenance/Vacancy $298 Maintenance/Vacancy $385

Capitalization Rate 7.83% Capitalization Rate 10.12%

• STUDENT HOUSING DEMAND MAPRed shape within map represents the Prime Area for student housing demand within the University Heights area

STUDENT HOUSING DEMAND MAP ANALYSIS• Areas within red lines on map are the most sought after amongst students at UINDY• Neighborhood is within walking distance to dorms, stadiums, facilities, canal, amenities• University has urgently been seeking to acquire land nearby as housing, parking shortages• New construction of student apartments has not affected the demand for single family rentals

as students still seek independent living• Neighborhood itself is somewhat landlocked and has appreciated in value as the college

student population grows• Neighborhood has superior curb appeal and character thus sustains higher home values than

surrounding neighborhoods (Built mainly in 1900-1940 so Craftsman Style, Arts & Craft, Bungalow, & Tudor prevail)

• Minutes to interstate access, downtown Indianapolis and new connection to Red Line Transit• Increased commercial redevelopment within University Heights to cater not just to college

students but the overall community – restaurants, redeveloped strip centers, new Brewery occupying an old bowling alley

INDY RED LINE RAPID TRANSIT PROJECT UNDERWAY• Planned rapid transit project that seeks to

connect cultural hubs and neighborhoods within Indianapolis Metropolitan area

• 1st Phase connect UINDY Campus Neighborhood with Broad Ripple (one of city’s largest and most popular cultural hubs) within Marion County

• Seeks to drastically increase home values in and around the transit map

• City/state/federal partnership featuring technology, design, and efficiency

www.IndyGoRed.com

ABOUT KELLER WILLIAMS REALTY

• Largest real estate franchise in the world by Agent Count, Volume Sold, Homes Sold

• #1 Training Company in the World in all Industries– Training Magazine

• #1 Top Workplace in Indianapolis for in 2018– The Indianapolis Star

• 1 of Top Company Cultures and Up 63 Spots in Franchise 500 Top Franchises – Entrepreneur Magazine

• Most offices in Top 500 in USA among all brokerages – The Wall Street Journal/RealTrends

• Ranked #1 Power Broker by Brand – RIS Media Power Broker Report

• Provides top rated marketing, branding, technology, tools, systems to agents

ABOUT THE INDY PROPERTY SOURCE TEAM

• Value-driven, experienced, client and partner focused, award winning Full Service Real Estate Team

• Helping clients achieve dreams on over 3,000 real estate transactions including residential sales, leasing, commercial, new construction, investing & more!

• Top 250 Real Estate Teams in USA – The Wall Street Journal/RealTrends

• Top 25 Real Estate Teams in Central Indiana – Indianapolis Business Journal

• Five Star Professional Award – Indianapolis Monthly

• 30 under 30 Rising Star Awardee – National Association of REALTOR©s

• Multiple Real Estate Academy of Leadership Graduates – Metropolitan Indianapolis Board of REALTOR©s

PERFORMING PORTFOLIO SYSTEMS

• Leases set up to renew within the prime student leasing period (March-May) • Forms, notices, applications which can be included in sale• Can be easily internally managed or hired out to local Property Management companies that has student

experience (currently under professional Property Management)• High traffic exposure with homes on Madison Avenue (1023 Edwards) and near dorms/campus (1533 Castle)

bringing in a lot of leads for potential tenants• Tenant referral program• Good social media and word of mouth exposure for these units that are known as available student rental units• Premium rental rates commanded from student population • Ability to increase rent totals annually and through adding bedrooms• Maintained and updated units per tenants’ needs• Parents typically added to lease for extra protection and guarantee rent• Structured for online payments if desired (different options available)• Security deposit is one full month rent and transferrable to new owner

1532 EAST MARKWOOD AVENUE

1532 EAST MARKWOOD AVENUE

• Mid-Century Modern 2 Story home in University Heights• 4 Bedrooms; Possible 5th Bedroom with some additional finish work and window in basement (add to rent another

$350)• Rents for $1400/month (could be $1750+/month with 5th)• 2 Full Bathrooms• Full basement for storage, etc.• Remodeled in 2014 – interior paint, exterior repairs, carpet, refinished hardwoods, fixtures, appliances, plumbing,

bathrooms, service mechanicals, chimney repairs, finish fixtures• Newer energy efficient vinyl, replacement windows • Newer 3-dimensional roofing • Laundry Room on main floor• Large 2-car Attached Garage with storage space; on street parking; driveway parking• Cedar-lined closet

1532 EAST MARKWOOD AVENUE• Exposed brick chimney in upstairs with character• Updated 100amp electrical panel and service• New sump pump in basement – 2018• Newer gas water heater• Glass block basement windows• Fenced side yard; home is on double lot; mini barn• Private, wooded lot • Large eat-in Kitchen with dishwasher, oven range, refrigerator, hood vent• Washer, dryer included• Central A/C; supplemental standing a/c unit included for loft• Newer forced air gas furnace and digital thermostat • Covered front porch, open back patio• Stone, wood burning Fireplace• Great Room leading into Office/Bedroom/Laundry Room

1522 EAST MARKWOOD AVENUE

1522 EAST MARKWOOD AVENUE• 2 story Tudor style home in University Heights• 3 Bedroom leasing for $1,050/mo with ability to add 1-2 bedrooms at $350/mo each• Fenced back yard; wooded lot• 1-car Detached Garage for parking/storage; on street parking• Locally known, historic tree in front yard• Open front porch; open back patio• 3 Bedrooms, 1 Full Bathroom• Full, unfinished basement with laundry hookup (washer/dryer not included); storage area and potential for

4-5th Bedrooms, 2nd Full Bathroom (adding additional $350-700/month)• Currently leased at $1050/month; ability to add Bedrooms to basement• (Leased at a discount from the normal $1050/month for employee pricing on team and will be available to

lease for students Spring 2018)• Solid, wood framed windows• Newly painted exterior and doors – 2017• Newly painted neutral interior - 2018• New 3-dimensional roof, gutters – 2014

1522 EAST MARKWOOD AVENUE• Hardwoods under carpets on main level; exposed hardwoods upstairs• Newer vinyl flooring in kitchen• New Bathroom remodel (2017) – vanity, tiled shower, shower fixtures, bath vent fan, vinyl tile floor, toilet;

repair walls/window• Recently buried downspouts away from house/basement - 2017• Some newer light fixtures installed interior and exterior• Kitchen with updated wood cabinets, oven range, refrigerator• Updated 100 amp electrical service and wiring• Serviced mechanicals and plumbing • New forced air gas furnace – 2018• Central A/C• Carpet installed – 2012• Great Room, Dining Room • Upstairs Bedroom could be 2 person tenancy arrangement

1503 EAST MARKWOOD AVENUE

1503 EAST MARKWOOD AVENUE• Spanish-Style Bungalow in University Heights• Enclosed front porch/Sun Room (4 seasons)• 3 Bedroom, 1 Bathroom leasing at $1,050/mo with option to add 1 Bedroom off front Great Room for

additional $350/month• Newer replacement, vinyl windows• Open patio off back, covered patio off Garage entry; 2-car Detached Garage with alley access• Fenced full yard with mature landscaping• Laundry Room on main floor (washer/dryer included)• Cellar with furnace, water heater• Newly remodeled in 2013 – interior paint, frieze beige carpet, lights/fixtures, refinished hardwoods• New 3-dimensional roof in 2013; newer gutters; stucco repairs and exterior paint

1503 EAST MARKWOOD AVENUE• Large, spacious Kitchen with hood vent, oven range, countertop microwave, refrigerator,

dishwasher• New ceiling fans – 2017• Stone wood burning Fireplace in Great Room• Formal Dining Room with arched doorways• Updated 100 amp electrical service and wiring• Dehumidifier and floor drains in cellar• Repair and insulated plumbing in crawl space• Large closets in bedroom• Overhead opener and separate entry on Garage

1533 EAST CASTLE AVENUE

1533 EAST CASTLE AVENUE• Craftsman Style Bungalow in University Heights• Partial brick and vinyl exterior• Covered front porch, open rear patio• Large 2-car Detached Garage, on street parking on 2 streets• Corner lot with great exposure to dorms• This is the next lot located on a block where the college has bought up all the real estate around it (see map)• 3 Bedroom, 1 Full Bathroom leased at $1050/month which could likely be raised based on location to campus

not adding Bedrooms• Remodeled Bathroom with newer vinyl flooring, fixtures, vanity, linen closet• Reglazed Bathroom tub• Newer vinyl flooring in Kitchen and rear Entry – 2016• New forced air gas furnace – 2017• Central A/C

1533 EAST CASTLE AVENUE

• Original hardwood trim and 6-panel doors• Refinished hardwood floors• Arched doorways• Newer lights, ceiling fans• Recently pained interior, exterior• Large Bedroom closets• Great Room, formal Dining Room with window bench storage• Updated wood base cabinets, counters and sink in Kitchen• Includes refrigerator, oven range, washer, dryer, dehumidifier • Serviced mechanicals, plumbing• Full basement with storage, sump pump• Newer vinyl, replace windows• Newer 3-dimensional roof and gutters – 2013• New sewer line to street – 2010• Newly painted interior (not yet shown in photos) - 2018

1023 EAST EDWARDS AVENUE

1023 EAST EDWARDS AVENUE

• Craftsman Style Bungalow in University Heights area• Located on corner lot on Madison Avenue with high exposure for getting leads on rental signage (partial

lot on Madison is owned by Indiana Dept. of Transportation)• Possible commercial potential• 4 Bedroom, 2 Full Bathroom leasing for $1,050/mo• Vacant lot behind property is a double lot for sale for $22,900 to potentially build another single family

home or multi-family property on it & would border this rental• Large 2-car block Detached Garage with 3 overhead door openers and newer garage doors• Fenced rear yard• Open front porch with wood deck and open back patio• Lots of parking available on street, driveway• Recently added 4th Bedroom and 2nd Full Bathroom (2017-2018) to increase rents to $1,400/mo

1023 EAST EDWARDS AVENUE

• 3 Bedrooms, 2 Full Bathrooms leased at $1000/month (can be increased)• Great Room, eat-in Kitchen• Newer counters, sink, dishwasher in Kitchen; includes also oven range, refrigerator• Laundry hookup on main floor includes washer, dryer• Newly added 2nd Full Bathroom in 2017 – full tub/shower combo, vanity, LVT flooring, toilets fixtures• Remodeled original main Bathroom in 2016 – full tub/shower combo, vanity, LVT flooring, toilet, fixtures• Crawl space with sump pump• New carpet, interior paint – 2013• New 3-dimensional roof, gutters and downspouts, replacement vinyl windows, siding – 2013• Refinished/stained wood deck – 2016• Paint chain link fence (full back yard, multiple gates) – 2016

1023 EAST EDWARDS AVENUE

• Newer forced air gas furnace• Central A/C with digital thermostat• Some new lights, ceiling fans – 2016 & 2017• Updated plumbing with pipe warmers – 2014• Updated 100 amp electrical service and wiring

UINDY PORTFOLIO PRESENTATION

• Acquisition Price: $625,000• Initial rehab needed: $0-5,000• Security deposits: Transferred at closing depending on time of closing• Monthly Rents: $5,950/month• Market Rents: $6,150/month estimated• Calculated on 5% maintenance/vacancy, 10% property management costs• Current Cap Rate: 7.75%• Renovation costs to add 4 Bedrooms: $25,000-$50,000 (depending on approved scope)• Projected New Cap Rate: 9.75%• Cash-On-Cash Returns (based on 30% down payment): 38%• Annual projected property value appreciation 2-4%• Potential Red Line approval and UINDY expansion appreciation bonus of additional +1.5-3%

PRIVATE OFFERING• Non-MLS Listing• Stabilized portfolio• Currently leased and managed• Turnkey portfolio• Private client marketing• Now reviewing offers after previous buyers’ financing fell out– Send contact information for representative negotiating– Provide lender information and pre-approval and proof of funds for down payment– If cash, provide proof of funds statement (with names of purchasers on it and sufficient

funds) dated within 30 days– Leases, property information, management info, disclosures, etc.. available upon signatures

of NDA

Thank You!