Covered in this video:

• Inside look at Maricopa County in comparison to Arizona as a whole
• Market info for El Mirage and the surrounding area
• Breakdown of the Village on Greenway (location, proforma, plat map, floor plans, timing, etc...)
• Brief History of FIG and an intro to our team
• Multifamily Project Summary
• Contact Info

The Fourplex Investment Group is branching out to the Phoenix Valley! This is a 20-minute look at the surrounding market and project details for this 60 Triplex & 7 Duplex investment opportunity coming to El Mirage, AZ in 2020.

You can view the project proforma and market report by visiting fig.us/village-on-greenway

Breaking Down FIG's Village on Greenway Project

Hello, everybody, Steve Olson here with the Fourplex Investment Group. I'm glad to be here with you today. And I have my partner with me, Chase Leavitt. And we're here to talk to you about a great opportunity in the Phoenix metropolitan area. We're very excited about getting into this market for a number of years. And it's finally gone time project is called the village on Greenway, located in El Mirage, Arizona, actually right there across from the border of surprise on the northwest side of the Phoenix Valley. Normally, when we do these webinars, we get into a lot of detail about the history of FIG and what we're all about. So you understand that I'm gonna try to keep that to a minimum today. This is more about the project itself, the location, the numbers, and the demographics so that we can get you out of here hopefully in about 20 minutes or so. But we'll do a quick intro on who FIG is the project itself we'll get into numbers proformas and sum it up all for you here you can see in a four-part agenda.

FIG is not a company

It's a marketing platform. It's actually comprised of five separate companies, right that all combined to generate this end result for you, which is new construction, multifamily property, and a master plan community. So it works really well for the busy professional that wants that kind of product, but doesn't have time to go hire builders and deal with zoning and all those kinds of fun things. So please verify this information with your professional advisors like CPAs and attorneys. We're here to educate you and give some good ideas, but everybody's situation is unique. So you should come to consult with those professionals as needed. So here we go. We're going to talk about El Mirage. You see we had our graphics guys do a little bit of design there. And this is about what we think they'll turn out to look like these are triplexes want to give you a good look at that before we get cooking here.

Who is the Fourplex Investment Group?

Well, I'm Steve Olson. I'm the Director of Sales here I carry licensing in three different states. Chase Leavitt  are here as well. They carry licensing specific to Arizona as well. Utah and Idaho. We all work together on working with you, the clients, and the investors on these various projects. We're operating and in four states now and we're really excited to be doing it. So you're probably listening to this because you've talked to one of us already know who we are, but sometimes it's good to put a face with the name.

Behind the scenes, we've got Mike Miller, the original founder of the FIG concept and the owner of Vollkommen and construction. It's been in this a long time, and Jacob Erekson and Brian Schnell oversee the day to day construction and operations of Vollkommen construction.

And to their credit, they're the ones that had this idea of why don't we build multiple units attached like townhomes or stacked flat style units, but put one tax ID on them so an investor can actually own a duplex, a triplex or a fourplex, that's brand new.

Corey Bohner is a big part of what we do. Right. He's with Maxx Property Management and we'll move them into Arizona's Well, when this property turns around for lease-up, successfully lease thousands of doors spread out across three states. And they're plugged right into our system for the builder turnover and the ongoing tenant qualification, rent collection. And just being that tenant facing rep for you, the busy investor that doesn't want to run credit checks, you don't want to take calls about, you know, the furnace filter, or whatever. That's what Corey is for, and we're glad to have him.

Steve Olson
Lane Aldrich is our mortgage lending partner. We get questions all the time, well, do I have to use your lender? And the short answer is kind of yes and no because Lane makes it easy not because we get something out of it. Other than a better experience for you and us and he's done more for flex loans than anybody on planet Earth. I can absolutely guarantee you that way more familiar with how to get you into a construction loan, how to relay that over to a long term loan.

We love working with Lane so if you're going to use financing in this project, you'll be talking to him pretty soon here. This is a quick snap on what we've we've been up to over the years, and this is just a sampling of it. But you can see that top left one steeplechase is an interesting dimension. I don't even think we have a picture of it because it was our very first project in Pleasant Grove. And it was just eight properties.

But still, they're still rented, in fact, have one of our great investors was talking to me the other day about some questions. He's on the HOA board, and they're just making a few changes. They're managing that investment. They're doing a great job. You can see over in the top right is Brickyard that was our first project that we ever did in the state of Idaho. We've really loved it there. In the middle left is Easton Park.

That was the first time that we ever did a stack flat model. We went from a townhome-style to a stack flat model. And then you can see from there, it's kind of evolved over the years to a hodgepodge of two-story townhomes three-story, we mix up the garages and even more stack flats like over on the middle right. Pineridge Farms is a is an apartment-style unit.

That's similar to what we'll have in El Mirage, Arizona. What we're going to do now that and like I said, that was a very, very condensed overview on who FIG is and what we're up to.

How is the Phoenix Multifamily Real Estate Market?

But I want to turn it over to my partner Chase Leavitt, who is going to give you a little bit of a look at the Arizona market. zooming into Maricopa County, I may chip in a little bit here, too. But Chase, what do you got for us? When it comes to Arizona? What do you think?

Chase Leavitt
Yeah, thanks, Steve. Thanks for giving me a moment super excited about this project. As you can see that beautiful photo that's not the project site. But how beautiful Arizona is. And this new slide here that you're flipping over to as you click through that, it's just showing some key stats and numbers that we like to go over and look at, essentially, it's pretty, pretty basic, but it's some good information to have the top in orange there.

We're looking at the state of Arizona as a whole the population and how many people are within that state. And so we're a little over 7 million people, and then right below that in green It's stating we're a little over 4 million in people that's highlighting Maricopa County, Maricopa County that's going to include the Phoenix metro, and several cities that are involved, including El Mirage. And so we're just trying to point out how many people are within Maricopa County. And we'll start to do a deep dive on these numbers a little bit further as we go a little bit farther on in the presentation.

So there's a good snapshot of a photo of Maricopa County. And as we're flipping over to the next slide here, that's just stating what the population growth looks like, over the next 10 years. You want to know, okay, how many people are currently there and then how many people are going to be there over a 10 year period? It's just telling us there that that growth is going to happen. And that's where we want to be and that's why we've decided to enter that market that we're so excited about. The other thing there, there are several things that we can talk about. But I want to point out towards the end on the right-hand side, Phoenix is the fifth-largest growth and number of millennials. And so a lot of young blood there and millennials that are moving to that area. It could be schooling, it could be job opportunities. There's just a lot of cool things to do within that Phoenix metro, of why people are wanting to live there. And it's not just people that are looking to retire there, which is a whole nother topic as well.

Steve Olson
I think chase when you say that they have the fifth-highest number in millennial growth, that probably correlates really well to the middle point here about rents rising 5.2% over the last year because a millennial demographic is heavily renter based, and that's probably caused more competition for existing rentals and putting pressure on those rents. Most definitely.

Chase Leavitt
Yeah, and I would agree with that. That there's just a map highlighting Maricopa County it shows where Phoenix is right in the Almost the middle of it. But Maricopa County, it's not just a small county, I guess depends on who we're talking to here. But it's, it's a very large county within the Arizona state. And as we take a little bit closer look at these maps here, it dives in a little bit deeper on where El Mirage is. So we had Maricopa County, which was the last map, and that's zoomed way out. And so it's a wide range. And as we take a little bit closer look here at the Phoenix metro, we can see where downtown Phoenix is, right there at the bottom right-hand side. And then you can see where El Mirage is, and that's where the project is located. And we're going to get into more details on the project here in a little bit. But within El Mirage, that county, or that's that city, the site's located on the top, north, west side. So on the very edge of it, it's always in surprise. So we just want to highlight the location of El Mirage, the city, and where the product is going to be located at.

Steve Olson
Yeah, it literally is that top-level corner. I'm just north of El Mirage. We are as far north and west as you can get in the city. And yeah, if you want to go over some of the industry here, Chase, and I can get into the specifics on the maps in the coming slides.

Chase Leavitt
Sure. So there, we're just breaking down the different employment within that location Maricopa County, people like to know, or I should say our investors like to know, okay, what's driving people there? What are the jobs? And this just breaks it down for you can be a little bit confusing at first, but as you look at it a little bit closer, you can see how many what percentage of construction they have going on health care and social assistance, educational service, it'll break it down into different percentages, so you can see what the jobs are and what's really driving that market.

Steve Olson
Yeah, let's talk about that a little bit more because you could see on the jobs, that there's no one industry that represents an overwhelming mean portion of the job base in the Phoenix Valley. As we've done our due diligence trips down into Arizona, one thing that really struck us is how much the market has grown up since the great recession of 2008. Many of you remember that Phoenix is kind of the epicenter, at least in the western US of the Great Recession, right, so many spec homes that that got foreclosed in the Phoenix metro. And you know, a lot of the professionals, the bankers, attorneys, brokers, construction people that we've dealt with there, they definitely remember right there, they're salty veterans from that, and they're all happy to see that, you know, at this job distribution now, is highly, highly diversified. Right? You can't point anything that has even close to 20% of the job base. At most, you're looking at 11% and it's all spread out.

So we created this a little bit of a map here. El Mirage is kind of a skinny city. It's a very small city. So you might live in the city. city boundaries, it's very likely you would work. Sometimes go to school, definitely shop outside of the El Mirage city boundaries, because you saw how skinny it was especially taking into account that we're on that top left corner of El Mirage, specifically, Greenway, right?

Greenway is a big East-West artery in the Phoenix Valley. And then dice are just big North-South Street. That's where we're on the corner of, you're gonna have plenty of grocery stores, convenience stores, banks, restaurants, hospitals, right all nearby so the blue circle right around the FIG logo where we are represents two miles. Okay.

And then to give you some perspective, if you go 10 miles out, that's the first red circle, right a couple of landmarks that you would probably be familiar with the Arizona Cardinals stadium. They're in Glendale, they're within 10 miles of the project. Luke Air Force Base is within 10 miles of the project. as well. And then if we extend that out even more out to 20 miles, that's when we start to get into downtown Phoenix. And then you can see the logo for Sky Harbor airport, big, big international airport. If you've ever flown into Arizona, it's pretty much assured that that's the airport that you went to.

So you're looking when we pulled the neighborhood scout data, which is a demographic service. Most people commute anywhere from 10 to 30 minutes for their job so they can get where they need to go. There's obviously beyond this map a lot more in the Phoenix Valley, but we're kind of focusing northwest of downtown here. If you go further east, you're getting into Scottsdale over Mesa-Gilbert and areas like that.

Chase Leavitt
Just so people know if they care. No, you talked about downtown Phoenix that's about 30 minutes away. Then you have the University of Phoenix Stadium, which is about 15 minutes away just to give people drive times. And then you have ASU campus on the there's a West Campus. That's only about 18 minutes away. The main campus is probably more like, probably 25 to 30 minutes away. But yeah, but a decent commute. Not bad at all, though. Just a couple things I want to point out because we're going to get into a slide here in a little bit that's going to point those things out, but I like this map better.

Steve Olson
That's good. Yeah, there's a host of other universities, smaller ones less well known but they're in the area, but most people do know what ASU is. on that map too. You can see a couple of the major thoroughfares route 101 goes in a circle around Phoenix, not not a perfect circle, but that's only a few minutes away as well as 303. That's kind of more of the outer loop now that is helping service a lot of these outer suburbs that are really growing, and we're right off the 60 to 60 is a state highway.

That right now is the best way to To get Las Vegas they are going to do a freeway eventually from what I understand that we're close to the 60 there that's the route that you would take in. This is a map that really zooms in probably more within that two-mile circle. Right there on figs project corner dice Arden Greenway, we're back behind Walgreens and you got to have your little caesars pizza if you're my kids anyway, we crank through those. That's right there.

And then we're literally sandwiched between those two stores and surprise Elementary School, which ironically enough is in El Mirage, but it's Surprise elementary school. So you've got all the retail shopping convenience that you would ever need schools. You can see a couple of Walmart's within two miles of either direction, and Safeway and fries and movie theaters and hardware stores and target that's another one my family's always at Target Little Caesars take all of our money. But those are popular amenities for tenants to have access to right there, within the area. So chase why don't I turn it back over to you talk about the kind of more nationally and some of the highlights and major landmarks if we were to take a road trip for Oh, really?

Chase Leavitt
Yeah. And so I went through the first three or four of these, this is what I want to point out on the last map. But as far as the second half of this slide here, it just talks about how far away is Grand Canyon, Las Vegas, San Diego, LA, if someone's wanting to get out of the heat during the summer there and that El Mirage area, Phoenix, they can take a trip and be relatively close to a lot of landmarks and go to the beach, either in San Diego or LA. You can be to Vegas in about four and a half hours. So it's a great location, especially in that northwest side of that Metro where all that growth is currently happening.

Steve Olson
It gets about time for sharing that she's been she's had it easy so far, why don't you start to walk us through some of the numbers.

Breaking Down the Investment Numbers

Sherida Zenger
Okay, perfect. So here's just a quick overview breakdown of some of the numbers on Greenway. So there's going to be a total of 100 94 total units in this project that is some three-story triplexes that are stacked for apartment-style and then we're also having seven duplexes that have five single car garages below those as well. And all of these will either be a two-bedroom, two-bathroom configuration or a one-bedroom, one-bathroom configuration.

So HOA $160 per door a month, kind of goes over what's included in that these come standard and this is something that we've been doing on the apartment-style units it with the LBT flooring, the stainless steel appliances, and blinds so every unit comes standard with that you can great two cans and fans and granite countertops if you'd like to do that.

Next slide, really quick snapshot of the plat map off to the left-hand side. That's where the Little Caesars is going to be sitting so that if you want to reference back to the other maps we went over but here's an overview of our project.

A quick snapshot of the floor plans can be a little confusing. Just know you're gonna own three heights. So you're going to have the main level, a second story, and the third story unit. But some of these buildings have four units connected. So just so you're seeing one level not you don't want all four of those you own high. Here are some snaps of the exterior kind of what we're hoping that these are going to look like. They have balconies, which is awesome. Okay, so let's dive into the numbers a little bit more right here will show your gross rents your vacancy loss, we're running that at 4%. On this proforma, we have a pet fee in there, the majority of our tenants have pets, we'd like to include that fee on there. So you have your operating income annually of 45,000. Then over on the other side, we're going to run down through you know, your mortgage payments. So your show your cash flow of 7665. And then below that, we have all of our expenses.

This is one thing that I really liked that we do is we kind of dive into these and put some accurate numbers or close to accurate numbers. Usually, they're a little bit on the high side, but cleaning and maintenance completely optional, but we recommend you hold that aside. Same with insurance get with one of us if you have questions on this insurance line item because it's also covered in the HOA fees, this additional insurance line item is more for an 806 policy, but we have management fees for max property management, and then your property taxes. Some people get confused because they see taxes that is for your property taxes. So kind of run through all of those expenses for you.

Steve Olson
Does that assume if you recall, share that on that cash flow and mortgage payments is that a four and a half percent interest rate on a 30 year fixed? Do you remember?

Sherida Zenger
Yep, four and a half percent 25%? down? Correct.

Steve Olson
Okay. Tell us a little bit about what will happen over the coming years based on this slide.

Sherida Zenger
So here we're showing we're selling this at 504 900. Your cap rate is going to be a six-two, obviously, you see the cash flow. If you hold this for 10 years, your cap rates going to be a seven six you're going to see the appreciation in your cash flow and even your market value if you look at that 610 once these are completed whichever market value about 610 but in year two 750 is a good point that will be out there,

Steve Olson
if you want to get with us on how that all boils down from an IRR perspective, right? That equity growth, the cash flow, the depreciation, how it all boils together, just contact, whoever referred you to this will talk with you about how that boils down because this is a very simple breakdown of it. But we wanted to give you some perspective as to what can happen over time.

Sherida Zenger
We also detailed a little more if you have any of our proformas on page four of the proforma it dives deeper into that year, one year, three years 510, you know, up to 30. And we wanted to throw this in as well, because usually, people will ask us, Hey, where are you getting your rents from? Right? So we went out and these are there This is our competition. This is who else is around us and wanted to kind of list some of the information about them. To see how they stacked up to us.

Multifamily Development Timeline

Well, that's a quick explanation of the project village on Greenway. Most importantly, you'll notice that the horizontal development is underway now. Right those you see those months in the year. So horizontal development, meaning we're clearing the site, getting it ready for the infrastructure. And then we've got construction beginning later in the early this fall. So it just kind of moves along through there.

Typically, it's going to take about 12 months from the time you close on your construction loan to when the triplex is built. So that's a good time to plan on. But make sure you get with us on the timing of the reservation process.

This is very, fairly simple, but you're going to tell us which one you want, right? And we're going to give you some details right now, we would take a refundable deposit from you of $5,000 you would sign a lot reservation form. And once we get a few other things accomplished with the state of Arizona, we can legally do a purchase agreement and that's when you'd come in with a 10% deposit. But along the way, you see some of these things that would be required.

Lane will also do the contract review, talk about any additional upgrades that you want to do as well. Just trying to make it clear here that we're going to be with you guide you through every step of the way. That's, that's our job. So we like it because you cannot find something like this in the Phoenix out. It doesn't exist.

If you look for triplexes and fourplexes. on the open market, they're going to be really old rundown have a ton of deferred maintenance, and the price is going to be kind of shockingly high. All right. Speaking to that be low maintenance to come do you do get a one-year builder warranty, so your tenants are going to move in here, and they're going to work out the bugs in that unit, but it's going to be on the builder's dime. With that one year warranty. You're going to cap rate north of six on a brand new asset, not achievable in the Phoenix market, very few markets is that achievable and if you were to wait and to buy a brand new unit that was leased up you probably going to be a cap rate more like five from what we saw. You're close to everywhere that you need to be.

We've targeted delivery More of kind of a B class blue-collar tenant, there's a ton of a class inventory in the market there. We want those people that say, Hey, I don't want to live in a C class building, I can afford to pay a little more, but I can't pay a class pricing. that's who we're after. And because we have all those local amenities, and, and shopping, and all the conveniences that tents want, or feeling really good about getting it.

And as Chase said, we're close to universities. And it's only 30 minutes to downtown Phoenix, but you got to remember this ton of jobs on the west side logistical jobs and other things like that. So if you live in El Mirage, you might commute to downtown Phoenix, but there's a very, very good chance that you don't, and you're looking at about this the same shot to Sky Harbor if you're a traveling person.

If you have questions, go ahead and reach out to us.

You know how to find us: www.fig.us