Equity Sharing Opportunity in Maplewood, NJ

Index

Introduction

Appraised value

About Mr. Taylor

Projected appreciation
Description of the equity share Potential investor profit
Description of the property Contact information
Current and total mortgages  

 

Introduction:

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Benjamin Taylor is looking for an equity sharing investor or investors for a property located at 144 Midland Blvd, Maplewood, NJ 07040. Mr. Taylor is looking to raise approximately $60,000 to $80,000 plus associated costs (negotiable) in exchange for a portion of the appreciation of the property. Mr. Taylor will pay the mortgage, property tax, and all other monthly costs.

About Mr. Taylor

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Information about Mr. Taylor can be found at the following link.

Description of the Equity Share:

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Mr. Taylor is currently the sole owner of the property and is seeking to realize some of the equity he has accumulated. The investor(s) will contribute approximately $60,000 to $80,000 plus associated costs for 30% interest in the property. Mr. Taylor will make all of the monthly payments and pay for all of the ordinary repairs and maintenance. In five years, the investor will receive their initial contribution plus 30% of the appreciation. The arrangement will be described in a detailed equity sharing agreement and may vary from the this example.

Description of the property:

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The property is a three bedroom, two bath single family cape located on a tree-lined block in Maplewood, NJ. Maplewood was voted by Money magazine as one of the best places to live. The property is about 1,740 square feet in size. It has a fireplace, a one-car garage, hardwood floors, and is one block from the local jitney bus to the Midtown (New York City) Direct train. 

Location of property:

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144 Midland Blvd, Maplewood, NJ 07040 (Mapquest map Google map)

Current mortgages:

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$146,000 First; FHA assumable; Wells Fargo

$50,000 Equity line of credit; Wachovia

Total mortgages:

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$196,000

Latest appraised value:

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As of June 2007 ~$350,000

Projected appreciation:

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Despite the downturn in real estate prices, Maplewood properties and properties in Essex County have held up well. (The property is located in the peach colored block grid and can be viewed at http://www.nj.com/news/bythenumbers/.) Over the last 7 years (2000 - 2007) median home sales prices have increased an annualized 10.8%. In the difficult real estate years of 2006 and 2007, home prices increased in Maplewood by 21.6% and 0.8% respectively. Since Mr. Taylor's original purchase of the home in 1999, the property at 144 Midland Blvd has appreciated 112%, the equivalent of a 9.9% annualized appreciation. Based on this trend and on the popularity of this neighborhood, appreciation over the next five years should be in the range of 10% per year.

Hypothetical investor profit:

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If the property appreciates at 10% per year over five years, less than the investor will receive approximately $153,483, which includes the original investment of about $70,000 plus profit of $83,483. This profit reflects a return of about 17% per year to the investor.

Approximate value in 5 years $565,000
Less Costs of sale (6.5%) (36,725)
  Mortgage balance (180,000)
  Investor contribution (70,000)
Total profit $278,275
Investor share (30%) $83,483
Investor annualized return 17.0%

More information:

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The information in this presentation is only partially complete, and is open for further negotiation. If you are interested in learning more about this opportunity, please email Mr. Taylor at ben@benjaminbtaylor.com or call 973-486-9860.