NOTE: This is a first time in Canada opportunity brought to you through The REITE Club.
As many markets in Canada become less and less viable for real estate investing many real estate investors are looking south of the border for better deals and opportunities. One such market is Jacksonville, Florida which just landed at #2 on Zillow’s hottest real estate markets in the United States, with the average home value at a little over US$300,000. Plus according to real estate brokerage firm Redfin, the Jacksonville metro area had the ninth fastest-rising rent in the country, even ahead of other highly popular Florida cities like Orlando and Tampa.
Jacksonville offers plenty of fix-and-flip opportunities in this city for investors like you to make great profits and with rent prices going up with house prices, the buy-renovate-and-hold potential is one of the most can’t-miss opportunities in the country. But there is a lot to learn about investing in the US and having a knowledgeable partner on the ground can be a huge advantage. Meet Little Pink Houses of America™ who offer real estate entrepreneurs and investors three different ways to partner with them and get reaping the benefits of investing in the United States:
Lending capital for fix-and-flips.
Buy a property they rehab and sell turn-key.
Join the PINK Affiliation Program and start investing all around North America today using their proven system with branding, scripts, marketing guides, and expert assistance. This is similar to a franchisee model.
Little Pink Houses CEO Scott Ulmer gives us an overview of the opportunities and invites you to get in touch to find out more.
Call 1-904-500-7465 or
Scott Ulmer
scott@littlepinkhousesofamerica.com
Andrew Willis
andrew.w@littlepinkhousesofamerica.com
DETAILED breakdown of one of our recent acquisitions:
https://youtube.com/playlist?list=PLiLwEVN-XAQpVyGiQs0u_FgPiXfWVfxvg
Our affiliate site: https://www.pinkaffiliates.com/
YouTube Channel: www.youtube.com/c/PINKTVchannel
Our house buying site: https://www.selltopink.com/
Scott: Why am I here in front of you? What are the opportunities that I have to present? And I'll give you an opportunity to contact me and or my staff. If you have interest in exploring it further. With that, I'll hop in just a second, but to reaffirm Daniel, thank you. I had the privilege of hosting a podcast. Daniel was my guest. We had a ton of fun and really connected and appreciate the opportunity to be here.
Before I dive in, the question I get often is, how in the heck did you come up with that name? I usually say to people, did you laugh when you heard the name? Most people say yes, and I said, did you forget the name? Most people say no, so there's a branding aspect to it, but a long story short. Back in 2004, I actually had lunch. It was very serendipitous, but with a franchise attorney. That was in my early days of investing and I had the idea to replicate the business model that we were executing in multiple markets across the country.
I didn't know if there was merit to that or not but this attorney had planted the seed and felt that what we did locally could be done in many places across the country. Fast forward the tape, 15 years and I started this company. We had the intent to branch out into different markets across the country. I'll share that as we get a little further, but I don't know if you guys remember the John Cougar Mellencamp song back in the eighties. I think it was called eight that America for you and me and something to see. If you read the chorus, listen to the chorus there's an interpretation.
Everybody deserves their own little pink house, their own slice of the dream of home ownership. We parlayed off of that song. And in fact, we had someone working with us that doesn't work here anymore, but she came in one day and was seeing this song. As I've said, many times we could have done without the singing. It was not very good, but the lyrics of the song, which for John Cougar Mellencamp really me and we believe in creating homeowners. In fact, that's really the mantra and mission of our company is we create homeowners.
We believe in refurbishing neighborhoods. We want to see people achieve that dream of home ownership. That's a little bit about the backstory and if I had a live audience, I'd say how many people here laughed and usually most people will raise their hand. That's how we came to be and here we are. All right let me go ahead and hop in guys for the sake of time and make sure that we've got max time here.
My style is to definitely get, come straight to the point. I don't want to give you a lot of fluff. I'm going to give you the nuts and bolts, and then you can decide if this is something of interest for you. Let me tell you a little bit who we are, a little bit of my staff, what we do, how we do it, why we're here and what we're going to be presenting and why? I think there's some amazing opportunities. I really second Daniel said, I think it can get the bathtub. There are some golden opportunities right now in the US and Florida, particularly in Jackson.
I'm gonna tell you exactly why here just a minute, and then ultimately how you can contact us if you're interested in learning more. With that, let me go ahead and dive in. Right now, there are amazing opportunities in the United States and in Florida, especially and really in Jacksonville. Jacksonville is where I'm sitting right now. That's our corporate headquarters. That's where we execute much of our business and share with you how multiple markets may be of option to you as we go forward. But I want to tell you about Jacksonville in particular and why there are just some tremendous opportunities.
One of the things I learned when I got here is that the rent rolls here are very high compared to the rest of the country. Compared to Canada, you have much lower price points than you guys are accustomed to up in Canada, much higher rent rolls. And of course that equals greater cashflow opportunities. Right now, Jacksonville is the number two hottest market in the country. I'm going to explain why that is, but the reality is there are tremendous deals right now.
You obviously have to have the contacts, the inroads, and the ability to find the deals and ultimately take them down, which is what we specialize in doing. Because of the fact that there are all these economic factors and indicators that are supporting sustained and steady growth, there's really no better city in the country. That very categorically, no better city in the country that I can think of to invest in whether it's short-term or long-term. Jacksonville, Florida. Very excited, the fact that we happen to just be here and taking advantage of the market, have some amazing deals that we've put together already.
I do want to just reemphasize that this is the first Canadian group that we've presented to. Thankful for that opportunity, but there's no one else that we have shared this with. If you've considered investing in the United States, and I know from some of the conversations I've had with Daniel and Francois that there is an interest for a lot of reasons, the medium price point where many of you are located is between $800,000 and $1,100,000. That can be tough to not only find deals, but with limited supply but certainly how do you cashflow and really turn those into a long-term rental.
I know there are opportunities, but you look at a place like Florida, there are just opportunities that are a fraction of the price, which means your cash flow is obviously going to be a lot stronger than we have performing assets available right now. Homes that are stabilized cash flow. Long-term tenants all inclusive, meaning hands-free and hassle-free for you. I'm going to share what that means in more detail.
There are opportunities as we sit here that I'm excited to share with you. I want to say up front that it's our hope with The REITE Club that we can establish a successful and really long term relationship with not just the club, but the members we've not presented to another group yet. We'd like to be able to provide a steady stream of deal opportunities for the club and ultimately the members and ultimately we want to see the relationship bear fruit on both ends. I'm going to get into a little bit of our culture and how important it is to us to make sure that we do what we say we're going to do, and that you guys can feel really good being, 2000 miles away investing in Florida.
There's three ways I'm going to present here today that you can work with us. Number one, or the turnkey kind of hassle-free rentals, not just the long-term, but the short-term film. Forget Florida, it's very much a vacation spot. Jacksonville is on the coast. We are actually on the ocean. There are pockets of homes here that couldn't be better for short-term rentals and short-term rentals mean Airbnb, VRBO and things of that nature. Some of the deal examples I'm going to share with you, we've put together or share what we call the long-term rental, which is really just a normal what you can expect from a tenant and what they'll pay over the course of a month and year, comparing that to Airbnb.
We actually have a company that we have a relationship with that will manage all of the Airbnb for you, if that is of interest. The Turnkey hassle-free rentals, number two is private lending. There are folks watching this and certainly my experience over 26 years for their own reasons, which are all valid and are more interesting. In the note business, they don't really want to have ownership. Any of the concerns or issues that potentially go with owning, they'd rather be note holders and just a private lender.
I'm going to present some opportunities where you can lend the security measures that are in place and ultimately how the return looks on private lending deals. The third thing I'm not going to spend a lot of time on. I'll touch it probably at the very end is how you can become a Canadian affiliate. I'm gonna tell you what that means here. One of my slides shows you really what our footprint looks like here in the United States. We do have a few folks that we're working with in Canada.
We're always looking for good people that believe in what we're doing. How we're doing it is a fit for our culture and ultimately for our company. We'd like to be part of our umbrella, part of an extension of us up in Canada, wherever you live. I will touch on that at the very end here going to spend most of my time on release number one and number two.
Let me tell you who we are. We're a real estate investment firm. We've got over 150 years of combined experience. My leadership team here, I've got their smiling faces coming up in just a few slides. I have over 150 years of combined experience, we specialize in residential. We do have a commercial arm. I'll share with you here in just a minute, but there will not be a deal that we haven't done, or at least been a part of in the residential space based on the experience that we have with our folks. Our mantra aside from creating homeowners is that we buy distressed properties.
We add value by renovating them, refurbishing them, bringing them back to their original view. And ultimately that's one of the things that gets us excited. We like making money. We're not bashful about that but when we can take a home that had the love lost and really restore that and make it back to its original beauty. That's something that we really take pride in and frankly enjoy quite a bit. A couple of things and you can see behind me, I've got aside from the pink wall, I've got what our company values.
One of the things that is really important to us when people walk into our office, I know who they're dealing with. These are values that we try to live by. These are values that guide us as a company, and ultimately they build our culture and help us stay aligned to one another and our vision. I just want to run through them very quickly. We are family here. We listen, we care, we serve one of the biggest things. I want to convey that we do what we say we're going to do.
If we're going to tell you, if we tell you to do something we're going to do, we make a promise, we're going to keep it. We don't make excuses. We check our egos at the door. Challenges we face with optimism. We are always innovating and constantly striving to improve, I think with technology and opportunities and all of the online sites and all of the things that surround real estate technology. We are very much at the forefront of those.
We've got some really bright guys, lots smarter than me and the techie space here. They couldn't turn the computer on for me today. I probably wouldn't be presenting. We are very much at the forefront of technology, always striving to do the right thing. One of the things I love about us is we're tenacious. We go after the deals and we're very good at getting those together. As a company that's who we are and our values, again, I felt it was important enough to share those right upfront. These are probably going to be small. If it's on a large screen, this is some of our five star family here.
These are folks that we've worked with that have had some great things to say about us, and certainly thankful for that and wanted to just share these are buyers, sellers, affiliates of ours, investors of ours, and just a couple quick snapshots of some of the five star reviews that we've gotten here. We are currently in 86 markets around the country. I will say as a teaser, that there will be multiple market options for what we're proposing today.
We're starting with Florida, we're starting with Jacksonville. But if there is interest in looking at other markets, we are nationwide and have been for several years at this point and continuing to add good folks into our affiliate base here. These are the states that we're in and we have 86 folks in different markets across those states. Who's that guy right there? She looked at two of these. That is me.
I'm the founder and CEO of Little Pink House of America. I've been doing this for 26 years. Full-time I actually bought my first house at 14 years old. I've told the story many times, and yes, I had a lot of help, but it was the bug that bit me. I bought a tax lien property that is now a parking lot because it was very much not special. It was really my first entree into real estate. After high school into college, I started full-time and have been doing it for 26 years.
I've done over 3,500 deals and something I'm proud of. The reality is I'm just getting started. I worked for my father for a period of time, and we did a lot of volumes. We're doing about 150 of these types of deals per year, which is how I've gotten so many in my 26 years and Little Pink House of America has been in business just over 10 years.
Anybody recognize that guy, Ron LeGrand. We lost everything in the 2008 downturn. LeGrand hired me, brought me down to run his real estate operation and do a lot of his high level and premier real estate coaching. He has a man that has impacted my life. We still do deals together to this day. I know that there's a lot of folks that he's impacted up in Canada as well. He was a big part of my life prior to starting pink. And as I said, we're still working with him in a capacity today.
Let me share with you, my team really briefly here Michael, Danny, and Taura. These are part of my leadership team here. Taura probably has my favorite title of all the guardians of the finances. She's our bookkeeper accountant, and Michael and Danny are like my right and left hand here. We have Jeff Haskins who is really in charge of all of our acquisitions. David Heard, 20 year military. David is our project manager. David oversees our construction projects and should there be construction or renovation that is needed going forward? Should things work out with us? Any one of you? There will be opportunities for us to to work on some construction and certainly rehab if that's needed and couldn't have a better guy overseeing that.
Andrew Willis, it says marketing manager, but Daniel will tell you he's really the brand man. Daniel gets a kick out of that. Andrew has been a great addition to our team. There's Tanfern. There's David actually, that's Kyle and that's Rod, we got the names over, over slid there on the slide. This is just part of our team here at our immediate corporate office. What's important I think for you guys to know also as you look at Florida, as you look at Jackson these are the infrastructure and kind of some of the contexts that are part of our extended family.
Howard is one of my dear friends down here. Howard is the owner and broker of Roundtable Realty. Howard was the number one realtor in the Northeast. In 2014 they were buying a lot and for hedge funds and did tremendous volume. Howard has a property management arm. He not only does Howard sit on the board of the realtors, the Northeast Florida, multiple listing service but is very involved with a lot of their policies and procedures. They have a property management arm.
I'm going to get into some of them but they are a standard 10% property management fee, but they will give discounts for multiple properties. As part of our, again contacts and infrastructure for doing what we do, particularly for the turnkey opportunities, This is our extended team. You'll have direct contact with these folks as well. There's Howard. We also use Michelle Fusillo from Landmark Title. The title agency handles all of the funds that we don't ever touch. They will handle the recording and you will have obviously direct contact with them.
We actually work with two types of companies. Now, Michelle, and then a gentleman named Hunter Reed over at attorneys' title services. Both are just around the corner from our office. They do a great job for us and otherwise we wouldn't be promoting them. They provide full service closings for all transactions. Those are the two title companies that we use. We also have a great insurance company. Whether or not there are any issues if you want to use a current insurance company that you work with, that may not be in the states. We do have a great very much investor friendly real estate insurance company that we are partnered with and that's who we insure all of our properties through.
We also have a capital funding source where you get your capital, whether it's yours, whether you have lending relationships up there. I do know that there are some great opportunities with Canadian banks. Over the past several years, cross border banking has really opened up. They've made it a lot easier for Canadians to invest in the states using Canadian money. That was something that I did want to point out there. I think most people are probably aware of that but cross border banking is much easier today than it was in years past.
If you don't have lending relationships up there and are looking for a lending relationship here in the states. We did have a partnership with RCN Capital last year alone in 2021. RCN Capital lent over $1 billion on investment properties. If you have a need for any sort of additional funding sources, we do have a partnership with them and touch you with them. I did want to say that Bruce Buie is a prince of a human being. He has been part of our company from the very beginning. Bruce's a commercial broker now. I'm not here to talk about any commercial opportunities, but if anybody watching this does have an interest in commercials, down in Florida.
Bruce has 33 years experience as a broker and has won some awards is just a wonderful guy, but he is a contact that is in our circle that we certainly would be glad to put you in touch with if commercial is your interest. That is our team. That's a bit about who we are, our culture. I'll say we have to live our values to prove those to you but we have our values displayed. We put them out there for everyone to see, because that's exactly how we try to operate day in and day out.
Jacksonville is on fire right now. It is just on fire. I tell you it's very exciting. I think that when you're experiencing a market like this, that continues to have opportunities that can really yield significant profits. I don't know what could be more exciting than that if you're in business in real estate in particular. What's important for you guys to know are a few things and I'm going to share some metrics on Jacksonville as a whole.
The rental investment opportunities are very strong right now. The rent rates in Jacksonville have increased 16% year over year. 16% and increase in the rental rate. Guys, that's very significant. I mentioned at the outset of the presentation here, when I moved here I was astounded by houses that might've been worth $75,000, $85,000. We're not talking about those in this presentation. Let me be clear. But those were bringing in a thousand dollars a month in rent.
I couldn't believe where I was from. Those would be maybe 400 or 500. It was almost a double. A rent roll for certain price properties. There are averages that have gone up 16%. I shared some of those numbers between $1,650 and $2,300 for single family homes, but the occupancy or let me say it differently. The amount of renters or percentage of renters in Jacksonville is 44% because of all of them. Businesses that are moving here. There are a lot of employed people that effectively come. I will call them transient, but when they come, they rent for a period of time.
If the job works out, I guess they end up staying, but there's a large percentage of them who qualify. I would call well-heeled tenants that are looking for rental properties here in Jacksonville. Some of the reasons that we're pretty excited to share. I'm investing in Florida is exactly why we're speaking to you today. There are opportunities everywhere, frankly. But really focusing on Jacksonville. A couple of high points. I just want to run through Forbes this year had a designated Jacksonville, the number two hottest market in the country.
They have the reasons for that. Not just because it's a vacation spot. It's on the ocean. But because of the size of the city, most people from Jacksonville know this, most people outside of Jacksonville are actually the largest city in the country, the largest city in the United States by land mass back in the seventies, I guess they annexed a lot of land. From one side of the other, it is the largest city in the country. Within that, the Jacksonville proper, there are tremendous opportunities.
The economy here is booming because of the factors. I mentioned the area location, coastal there are very well-known companies moving here. There are railroads here. There are several corporate headquarters that are in tech as well. All of those are job creators and all of those are attracting folks that are going to be living here, looking to move and ultimately be good qualified tenants. The average medium price down here is $273,000 compared to where you guys are up in Canada, that's a fraction of the price. With a lower price point, higher rent rolls as one of my prior slides said that equals greater cash flow.
800,000 people anticipated to be moving here. In addition to who's already here over the next 10 years. Over the next 25 years, they're expecting the population to literally double and so again, all of those are economic factors or indicators that show, and very much prove that the sustained and steady growth is what is anticipated now. There's just nothing that would indicate that, that the growth is going to slow. And again, where we're located, all of those factors are why this is a great market to look at.
Downtown has got a brand new, big development and Andrew, I can't believe did you leave the Jacksonville Jaguars outta here? Oh my goodness. No rooms. We've got the Jacksonville Jaguars, the pro football team, and Andrew's a big fan. And I told him, yeah, my neck has been hurting me cause I fell off the bandwagon. When I hopped down that long ago. No, just kidding. I've been a fan for a few years, again, I want to say 44% of the city are renters. All of these equally good factors and good information for why this is a good market.
Let me go back to how you can work with us. I'm going to give you a couple of examples of turnkey hassle-free rentals. We've got a partnership I want to share again with Airbnb. Airbnb has obviously become very popular over the past few years. What's crazy to me is it seems you can buy a property almost anywhere and people just want to rent it all the time. There's no way that can be sustainable. I know that statement isn't entirely true, but when you're in an area, that's a vacation destination.
When you're in an area that's on the ocean. Even within driving distance to the ocean, there is going to be a desire and a need for Airbnb properties. You guys being in Canada, us being in Florida, we have done for you Airbnb service that can manage and actually handle 100% of the Airbnb. Long-term you plant a tenant there, you put them on a lease over a period of time. Short term would be Airbnb VRBO. Those would be the vacation rental types, private lending and of course the affiliate Canadians and we have a couple up there now. We're looking for a few more.
Let me give you just a very kind of high level breakdown of how we end up structuring our private loans. If you're watching you are someone who likes the note business, you want to be a lender, share how we break it down. First of all, we borrow between 70% and 75% loan to value depending on the price point and what the property condition is today. Based on a lot of those factors, or let's say those factors, we've been very comfortable paying a little bit more for the properties, but we typically will not exceed 70% to 75% loan to value.
We try to be conservative or at least conservative enough in that capacity first and only mortgage to the lender. We did not put seconds on there. We do not fractional mortgages. We certainly don't pull money. You'll have one mortgage. You'd be the first mortgage and we'll ultimately everything is handled by the title company. I say that, I think it's a very basic statement, but I say it anyway. We don't ever touch money. Any funding for transactions would go directly to the title company and they will handle all of the recording, et cetera.
We get a lender's title policy that you will be named on. You'll be the named mortgage on the insurance policy. We pay on a monthly basis. I have found that to be very attractive for private lenders over the years. We have a simple and interest only structure and how we repair our loans. You will have a monthly payment that will be directly deposited into your account. We pay strong double digits returns, really between 12% and 17%, depending on the length of the project, depending on the length of time we need, the funds will dictate the rate that we ultimately are willing to pay.
I can tell you it's strong double digits. Those monthly payments that are made to you interest only, it's very similar to receiving a dividend every single month. Those would be directly deposited into your account accordingly. Let me give you an example of a turnkey property. Now, part of the formula for identifying net cash flow, there are some variables, are you paying all cash? Are you putting 20% down? What's the rate of your loan? What is your payment ultimately, and are there other factors that we're not aware of? And the answer is going to be yes. What I've done with some of these turnkeys is not gone through how we renovated them, found the tenant, all that good stuff.
What I've shared is the price point of the property and the correlating rent that you can expect, because at the end of the day, you're going to put your own numbers together. I know we're dealing with a very savvy group of folks here. I'm going to share these turnkey examples. What you can expect as your rent here. This is a $300,000 property. The expected rent on this or the rent is $2,100 per month. Annualized that's $25,200. Now, if you took that same property and you wanted to plug that into Airbnb, but we call it Airbnb potential because Airbnb can be a bit of a variable assuming that it's rented a certain percentage of the month it's not going to be every day. At least that's not what we're factoring.
I want to be careful not to misrepresent anything with Airbnb. We ran some numbers. We've got a kind of a backend system for Airbnb and how to factor some of those prices and a monthly rent, or excuse me, the daily rents. This is what we've come up with. The potential is about $3,000 a month. Annualized is going to be about $36,000. Again, $300,000 property. However, what you're paying for is obviously new, but you can expect a $2,100 per month rent and annualized $25,200, and should you choose the short-term rentals? Those are numbers that again, we're telling you are going to be pretty accurate at the end of the day.
Please don't forget, this is all hassle-free. It will be managed for you the entire time. We've got all the infrastructure as we shared here in some prior slides. Let me go to the next one here. This is a beautiful house over on Creekwood way, a little bit of a higher price point. I will tell you this, our specialization, what kind of the price points that we work within are usually around 150 on the low side to about 500. We've done deals higher. We've got a property on the river right now that we actually have a contract to sell. It's just over a million dollars. That would be more of an exception for the types of properties that we are looking at.
I would tell you, $485,000 would be on the high side for the properties that we're looking at. We're probably in the sweet spot $200,000 to $350,000 is where we are. To end up and again, there's a lot of reasons for that, but the ROI on that investment really can yield the highest win when you're in that sweet spot. We do run across beautiful homes like this. This is a $485,000 property, you can expect about a $3,200 per month rental on the $485,000 beautiful home beautiful area, great tenants, great schools by the way, schools, I haven't gone into any of those details about the system, the school system, things like that, but we do factor where families with kids, which is a good portion, are going to want to put their kids in schools.
That's a big part of where we make our purchases. Again, on a property of this size, this caliber we're anticipating around $5,800 per month, annualized about $69,600, just under $70,000. Quite a difference in Airbnb. Yes, there's some management additional, and certainly there are fees correlated to that, but the potential upside is significantly greater. It's whatever your cup of tea is. If you want to do the Airbnbs in a city like Jacksonville, again, those opportunities are here. Here's one more turnkey.
I want to share with you some Hawk crests. This is a little bit of a lower price, but again, still in our sweet spot. I would just tell you this from being in Jacksonville and seeing quite literally thousands of properties down here, this is your bread and butter. Solid good area, decent schools, decent everything. You're just going to have a solid investment here. This is only $175,000. You can expect about $1,400 per month rent on that annualized $16,800. And again, Airbnb, you're looking at about $500 more per month and ultimately close at about $23,000 on an annual basis. Those are just examples of the turnkey.
These are just a couple examples. Ultimately we'd love the opportunity to talk with you, share with you what we have, what's in the pipeline, and you can make the decision, but these are just trying to give you some ideas of what you can expect in properties down here. Now, let me give you a couple of examples of private loans. This is a deal we did on Dexter street. The ARV, which is After Repaired Value was $230,000. Picked it up for $130,000. Yes, we were excited about that deal and yes, it's been a great deal for us. It had about $30,000 in repairs. The loan amount that we did on this property was just shy of 70%, $160,000 is what we were looking to borrow.
I shared with you the measurements of security in a prior slide first and only mortgage in all of the other things that I listed there, how this broke out or shook out at the end of the day. We borrowed $160,000, and we pay 12% interest on this property. Simple interest only we had a 24 month term on this. Our terms are typically between 12 and 24 months. In this case we needed a little bit more time. Payments are made to you monthly. The 12% breakdown is ultimately $1,600 per month, $19,000 per year. Over the course of two years, we're paying over $38,000 in interest.
Over a two-year period, not only will you get your $160,000 back, but you'll receive an additional $38,400. You'll get $198,400. I happen to think that's very attractive. There are times we'll pay more interest for different timeframes, but we paid 12% interest on this property here. I've got one or two more and then I want to come full circle here and I'll be glad to take some questions, but this is Natalie Drive South. This was a smoker deal again we're finding smoker deals when you have six figure profits built into some of these get excited about those. The ARV on this was $450,000. We were able to pick it up for 300, 10,000. It needs only about 15. So our loan amount is going to be a little higher than the 70% based on the fact that it's a load of a higher price property.
We're going to be about 74% loan to value and looking to borrow on this property or borrow $335,000. How that breaks down. Again the loan amount is $335,000 12% interest. In this case we only were looking for 12 months. The payments were $3,350 per month. When you're a private lender, we pay all the taxes and insurance, of course. The net return to you is 40,200 over 12 months. You put $335,000 in 12 months later, you get $375,200. We hope that these are attractive enough. We certainly have not had issues getting these funded, but these are opportunities that you can expect us to bring to the table.
How can you work with us? Let me just say this. If you're interested in finding out what we've got now, as I mentioned at the beginning of this presentation, we've got cash flowing properties, stabilized fully performing today. We've got properties that are in our pipeline. We always have a pipeline of things that are under contract that are forthcoming. If you're interested in what we have now or what we have down the pipeline if you would like to get on our email list so we can contact you before we've put these out to the public. You can reach us here at this number, 904.500.pink(7465).
Of course we have pink as part of the prefix of our phone number. How could we not. But we also are in the right Facebook group. It seems to be the easiest way to connect with us. If you would like to find out more information on anything we've got, if you just want to chat and get to know us a bit more we would welcome that opportunity. You can reach us at that phone number of a 24 hour answering service that will get the information to us or you can contact us through the Facebook group. I'd love the chance to say hello and get to know you. If this is of interest to you, that's how you can reach us. With that, I'm going to kick it back to Daniel to see if there's any questions.
Guys, I appreciate you sharing some time with me today. I hope what we presented is of interest to you. I look forward to the chance to get to meet some of you guys in the near term. Let me throw one other thing out there. When you have properties down in Florida, Daniel, you get to come vacation here. You get to write that stuff off. It's not a bad place to come down and hang out.
Daniel: That was amazing. We could hardly see where you are taking breaths there in between your sentences. You're definitely a pro at this. You have a lot of information in not a whole lot of time. I'm going through some questions here on the side. When you are talking about LTB, somebody is asking, is the LTB based on as-is acquisition or after repair value?
Scott: After Repair Value.
Daniel: What occupancy rate are you using for Airbnb?
Scott: That's a good question. We have a program that actually is a backend if you will, to Airbnb and it does some reverse calculations. We're Jacksonville on the coast, if you are there's a few mile radius from the coast that has a bit higher occupancy rate than when you get a little bit further inland. Those are coming out in the seventies a little bit higher at the beaches and a little less than inland, but the numbers we're using are going to be somewhere in the 70 percentile range.
Daniel: If you land, then when it comes time to bring your money back to Canada, what are the tax implications?
Scott: That's a great question. I do know that cross border banking has opened things up, but I would not want to speak on that. I would not want to give the wrong information, so that really has to be a question for your accountant or CPA.
Daniel: That's what I was going to say, but I wanted you to say it. Can we have a little bit of color on their management services cost?
Scott: A little bit of color. It is 10%, which is seemingly a standard fairly universally. But I will say this that let Howard know this morning that I had this presentation and he wanted me to share that multiple properties. They usually will go down to eight, maybe even a bit more. They'll make deals for multiple clients or multiple properties for clients, but 10% is going to be what you should be anticipating initially.
Daniel: That sounds really reasonable to me, especially for Airbnb, because the last thing you want to do is, when you get tenants for a week, they move away. And all of a sudden there's two plates and two forks missing and the dish, and then now you have to go shopping. You really don't want to do any of that before Airbnb, that seems to me like really reasonable properties right now under construction, the Costa Rica and that's what they charge actually. No, it's more than that.
I think they were charging 15% to manage Airbnb. 10% is really good. I heard you say that you're often paying 12% and people are on title. That is really good to return because I often get bridges myself from people. I pay them 12% and it's just a bridge and they're not even on title. They're only on the promissory note, 12% on title. That's pretty amazing.
You know what, I think that's all the questions that I can, and I can see that we need to answer if there's anything more Paul, our techie guy we'll collect them. And then we'll figure out a way to get them to you and to get the answer and to distribute them to the people who were on call at this event today. One thing that I can say that may make me really happy looking when you have to list. I always teach people this acronym, I call it DWYSYWD.
I say, if you do that you will have success in real estate investing. Of course that stands for doing what you say you will do, because as we both know in the world in general and the world of real estate that is not always the case. If you actually do that I'm on board with you guys, because that is huge. There's so many people that can make so many promises and tell you that they get your money and until they get to you or your contract is signed and everything, and then all of a sudden things change.
I'm really happy to see that this is one of your values. The other thing I want to point out to people also, and you've repeated it a few times, but I want to repeat it again. The huge advantage here. The huge parts entity that we were talking about at the beginning, they're like raining gold is the fact that everything you offer is hands off and hassle free because we are 3000 miles, 2000 miles away from you guys. It is important that I do not have to get on a plane and go fix things because you guys slipped and you did not take care of my property. Hands off and hassle free. That is huge.
Scott: It's our hope that, again, I was important enough that I put in a slide that our big picture goal is to have a long-term relationship. We want to make sure that we stand behind everything. We represent everything we say and that it can be absolutely hassle-free hands-off. We know that if we can do those things that there's no reason we won't have a great long standing relationship.
Daniel: Scott, it was an absolute pleasure to listen to you already see the chat that there's people who are going to be connecting with you, those who are very interested in what you are and what you have to offer. I was looking at that house there. The first one that the ad for, I think $325,000 that house. Anywhere in the Niagara area would be 850 with the same rent properly cash flow is totally impossible. That's one of the reasons why we wanted to bring you up, appear to us or offer this to us because as we said earlier ports, annuities don't come very often in this area.
It's very difficult, but now you open up a whole new world for us here in Jacksonville, Florida. I'm sure we're going to be doing a lot more talking and a lot more connecting. Thanks again for your time, Scott. Quickly for the people on the call. Upcoming events on Thursday, March 10th, we are going to be talking about Northern Ontario. On Tuesday, March 22nd we have our national event and on Thursday, March 24th, we're going to be doing another lunch and learn on the RWA strategy.
We're going to be talking about financing and finally on Wednesday, March 30th, we're going to be covering what's happening in Atlantic Canada. And of course, every Friday where you receive an invitation tomorrow, you're going to save another one to watch or listen to our most recent podcasts. I think tomorrow we're releasing podcast number 164 and Scott We were recently ranked in the top 1.5% of all the podcasts in the world. That's over 2 million podcasts. We are up 1.5%. We're doing really well with the podcast.
Scott: That's great. Congratulations.
Daniel: Which means at some point really soon here, we're going to have you. I'm making a note actually, Scott on podcasts yet. We'll know when Katherine is back from Texas, she'll get a hold of you and we'll arrange to do that. Thank you everybody for your visit this afternoon. Thank you very much, Scott. And again, I'm sure we will be connecting at some point really soon and take care of everybody, add yourself to the date and remember when opportunities come to bring out the bathtub.
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