|
Dear Property Owner,
SAFE is always looking for additional properties. The following
are some recent examples of state leased buildings purchased by
SAFE:
| State of Texas Dept. of Human Services,
Socorro, TX |
$1,050,000 |
| State of Texas Dept. of Human Services, El
Paso, TX |
$1,035,000 |
| State of Georgia Natural Resources,
Atlanta, GA |
$9,435,907 |
| State of Michigan Family Independence,
Lansing, MI |
$8,300,000 |
The purchase price is based on a formula, not a CAP rate,
which has proven successful for both SAFE and sellers. This
formula is as follows:
a set cash-on-cash return to investors (usually between 8-10%)
after a 3% management fee and 15% asset management fee (to
SAFE).
This return to investors is after the following closing fees:
| Buyer Inspection |
$500 |
| Lender Inspection |
$500 |
| Buyer legal |
$3,000-10,000* |
| Lender legal |
$3,000-5,000* |
| Loan points 1 |
($10,000 minimum fee) |
| Transaction fee to SAFE |
$15,000-50,000* |
| Third party reports |
$6,500-10,000* |
| Updated survey and title |
Paid by Seller |
| *Varies depending on value of
property |
Financing for SAFE is arranged by Amerifund Commercial Corp.
which allows government leases with early termination clauses.
The amortization of the loan is 10 years over the lease term
remaining at an interest rate of 6.75% - 8.0% (depending on the
remaining lease term). This is the formula that has worked for
SAFE and sellers recently. Please take a minute to fill out our
property questionnaire
and fax or e-mail it to me. We will evaluate your property
and should have an offer back to you within 2-3 business days.
I am looking forward to hearing from you and hopefully to our
mutual success.
Thank you for your interest in SAFE.
Yours very truly,
Paul C. Fagan
Acquisitions Manager
paul@safeltd.biz or 423-309-6481 |
