Project investment is estimated to be $355,000, comprising a $120,000 property purchase price and $235,000 for repairs and improvements.

The Project will be 100% debt funded and all loans will be at a 6% annual interest rate with payments made monthly. The Project loan structure will provide for interest-only payments to investors for the first 2 years, in order to minimize costs while the business increases its occupancy rate. For years 3 through 22 of the loan, investors will receive principle and interest payments based on a 20-year amortized loan structure.

The financial summary assumes that units will be rented at a rate of 4 units per month until an occupancy rate of 85% is achieved. The Project is forecasted to generate a pre-tax loss of ~$40,000 in the first year of operation. This loss will be funded by the Project Sponsors. The Project is forecasted to reach a positive cash flow status in year 2, and reach 85% occupancy early in year 3. Once the Project reaches 85% occupancy it will generate annual pre-tax profits of ~$36,000 and have a debt coverage ratio of 2.1.

Cleburne is a growing suburb of the Dallas/Ft. Worth metroplex with a current population of ~30,000. Substantial growth is expected in the near future due to the new Chisholm Trail toll road that opened in 2014, which connects Cleburne with Ft. Worth. Development is already occurring along the toll road corridor and new housing subdivisions are planned in the Cleburne area. This should translate into a need for more self storage services in the area. And, as most of the existing self-storage businesses have only a small percentage of climate-controlled units, the Project’s offering of 100% climate-controlled units should be attractive to the self-storage consumer.