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Commercial Financing... When Your Bank Has to Say No

Sample Executive Summary---Bantam Springs Development


Our Goal in this development is to create a planned community that is town-centered, pedestrian oriented with a vibrant mix of residential housing and commercial uses.  We believe that this development combines the right design, with the right location, at the right time.

Our Design is a Traditional Neighborhood Development (TND) which reflects the lifestyles that are greatly valued in this region of the south. These TNDs have proven to be extraordinarily successful, financially (reference River Ranch in Lafayette, La.) Our development will be walking proximity to a new middle school, the new Juban Road commercial development and a new proposed minor league baseball stadium. Our design will "join" our community to those developments.  Our Design Principles include offering a range of housing opportunities and choices. Providing quality housing for people of all income levels, will be an integral component of our development strategy.



 Our location
is surrounded by new developments that will significantly enhance our property value; Bass Pro, the Juban commercial development, a proposed new Minor League Baseball Stadium and the proposed I-12 Interchange at Hwy 16. Also our proximity to Baton Rouge supports the concept of being a "bedroom" community to the Louisiana's center of government and business. We are two exits (about 8 kms) on Interstate 12 from Baton Rouge

Our Timing coincides with Louisiana's "Road Home" Project roll out as well as an unprecedented demand for new and replacement homes in the Baton Rouge area. The Road Home Program has an allocated budget of $7.9 billion. It will provide interest free loans of up to $150,000 per applicant. An estimated 123,000 homes were lost by Hurricanes Katrina and Rita. There have been 117,000 applicants to date of which 4,000 grants have been processed. Additionally our development coincides with the Bass Pro, Juban Development and Minor League Baseball Stadium projects.

Our development will promote the concept of a walkable neighborhood. Walkable communities are desirable places to live, work, learn, worship and play, and therefore a key component of our strategy. Their desirability comes from the fact that goods (such as housing, offices, and retail) and services (such as entertainment, transportation, schools, libraries) that a community resident or employee needs on a regular basis are within an easy and safe walk. To foster this sense of community, we will mix land uses and build in a manner that ensures safety and invites pedestrian corridors.
 



Business Team
- We have compiled an outstanding team fully capable and experienced in tackling major projects of this nature in the local area. The team is comprised of experts in residential and commercial development, property management, residential sales, commercial sales as well as development operations and local political experts.

We have secured 732,500 m2 of undeveloped land in Livingston Parish. The location is approximately 8 kms outside of Baton Rouge. Livingstone Parish has one of the top school districts in the state. The location is enhanced by the proximity of a major interstate (I-12). The development is conveniently located near jobs, activities and services.

Our development will offer approximately 620 residential homes. An additional 30 commercial lots will be developed for sale.

Financials

Total Return Analysis
  Months to repay original equity contribution 18
  Total ROI 61.8%
  Total Equity (Include Project Owners & Investor) $28,698,516
Cost
  Land $11,800,000
  Infrastructure $  9,254,100
  Building Costs $101,628,664
Revenue
  Home Owner/Unit Sales $196,263,375
  Lot Sales $   7,920,000
  $204,183,375
Gross Profits $ 81,500,611
  Robert Jacobs Fee $     140,000
  Sales Fees & Admin Fees $ 12,528,218
Net Return $ 68,832,393
Project Timeline In Months 36





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