4324 Ventura Canyon AvenueJoseph Nelson - Andrew Mow

Why Sherman Oaks, California?

- Occupancy rates in Sherman Oaks are consistently above 95%. 59% of tenants are renters.

- The cities in the surrounding area are very nice as well, Encino, Tarzana, and Studio City are all great

locations

- Short commute to downtown Los Angeles, 20-40 minutes to downtown dependent on traffic conditions

- Access to big city amenities with the luxury of suburban privacy

Why 4324 Ventura Canyon AvenueBuilding

● 12 spacious garden style

apartments

○ Ten Units 2 Bed 1 Bath

○ Two Single Units

● Beautiful Courtyard with

swimming pool

● Gates and secure parking lot on

site

● Renovated Laundry Room

Location

● Close to Ventura Boulevard

● Relative proximity to Coast and

Downtown Los Angeles

● Very walkable area - most errands

can be done on foot

● Quality Public/Private Schools

○ Notre Dame HS

○ The Buckley School

○ Robert A. Millikan Middle

Why Invest in Multi Unit Properties?- More rent coming in means a greater cash flow than single unit properties

- Less risk upon losing a tenant

- One property to manage for multiple renters

- Large pool of tenants to choose from who can afford multi unit housing

Sherman Oaks, Understanding the market...

Why Multi Unit Residential Property in Sherman Oaks?- The percentages of divorced females, divorced males and widowed females are

among the countries highest

- Most of the houses/homes in this area are tenanted by 1 to 2 people

- 59% of tenants are renters

Understanding the market- The Sherman Oaks sub-market is bordered by Burbank to the East, Van Nuys to

the North, Encino to the West, and Universal City to the South

- Access to the area via:

- Ventura Freeway (101)

- Hollywood Freeway (134)

- San Diego Freeway (405)

- Sherman Oaks Trade Market

- Westfield Fashion Square

- Sherman Oaks Galleria

- Sherman Oaks Shopping Center

Topographic Map of Sherman Oaks

Transportation

This property is within proximity of

plenty of public transportation,

within walkable distance of most

essential shops, and offers parking

The details:

● Metro bus and rail lines

● Grocery stores, schools, and

shops accessible by foot

● Gated parking for residents

ExternalitiesPositive

Near Property:

● Great Private and Public Schools

● Plenty of shops in walking distance

● Variety of restaurants of all cuisine

● Close to Downtown Los Angeles and

the coastal beaches

● Easy access to public transportation

Negative

Near Property:

● Very Close to the busy Ventura

Boulevard

● Pub at street corner of Ventura

Boulevard and Ventura Canyon

● Traffic can be dense during rush hours

Map of Property Site Map of Trade Area

Aerial View the Site Aerial View of the Area

Pro FormaBased on GPR and OPEX given in listing and 5% Vacancy allowed.

Maximum Supportable DebtThe effective cost of $2,139,146 with a 1% origination fee and 5 year holding period is 6.63%.

Resulting leverage is -0.80%

Payoff amount at disposition is $1763214.55

Acquisition

The projected IRR of 16.16% does not meet the Investor required minimum of 20%,

therefore the deal is a no go.

Conclusion...How to make this deal work?In order to achieve an IRR of at least 20%, the asking price would have to be

negotiated down to $2,100,000.00

Since the majority of tenants in Sherman Oaks consist of renters looking for

apartments for 1 to 2 people, we believe that this property is a valuable investment.

Vacancy rates are consistently low in Sherman Oaks while GPR is increasing.

The Team

Joseph Nelson, CEO

Visionary who enjoys high

cap rates and long walks on

the beach

Mark Ruff, CFO

A professional in the

industry and the chief

advisor to the day to day

operations

Max Nikias, CTO

A key to the financial

element of this group,

Nikias enjoys watching his

investments flourish

Andrew Mow, CPO

Entrepreneur and financial

advisor specializing in long

term investments