Hotel Rooms with 50% Yield
Please see below details of this superb Investment Opportunity. We have been given exclusivity on this project for a short while. There is very strong demand for accommodation in this area, please click on all of the links and you will be able to piece together what a stunning project this is.
We are initially looking to sell these Mini Motels per block ( 20 Rooms ) and we expect these to be sold in a very short space of time. we will also be able to offer a number of room/s on an individual basis for our smaller Investors on some of the blocks.
These units can be constructed in 8 weeks
This deal should be looked at as an Income producing product, we are advised the longevity of this is approx. 50 years so do not expect any Capital Growth.
Having your Capital repaid in approx. 2 years would make this one of the best offerings we have promoted in 20 years
The Project
In the Western section of North Dakota there is a small town defying the laws of economics in the current US recession. Williston, North Dakota is going through an economic boom due to its newly found oil fields. With more oil in reserve than Saudi Arabia and the UAE combined, the pressures from this rapid growth are evident. Workers from all corners of the United States are coming to Williston to secure stable well paid jobs of $80,000 - $100,000 + per annum. A side issue of the influx of workers is a need to shelter them. Currently an immediate demand for more than 1500 worker accommodations exists. These men and women are sleeping in tents and cars and the number grows weekly
A solution has been designed and produced in the form of the Mini Motel. Each room will be 26’ 0” x 12’ 8” (331sq ft) and will be fully furnished with a beds, sofa, table, shower, wash basin, toilet, TV, microwave and WiFi connectivity. Occupants will get all the home comforts of a full size hotel/motel room. Demand has driven room rates up to $125 per night although we feel this is high. We will charge $100 per night for a single room. The units are priced at $37,000 per single room or $665,000 for an entire 20 room Mini Motel.
The Numbers
Type 1 Unit Single Room Cost Price $37,000
20 Unit $665,000
Gross Annual Rent $32,850 or $657,000 respectively based on $100 per night at 90% occupancy for 365 days
Annual Expenses $15,100 and $302,000 respectively. Management, Utilities, Property Tax, Insurance, Redecoration every 18 - 24 months
Pre-Tax Net Profit $17,750 and $355,000 respectively. Gross Annual Rent Minus Expenses
That equates to a massive 48% return on your investment for a single 1 unit year, and 53% if you buy a block of 20 units.
Possible and additional expenses not included in the Pre tax NET figures: -
• Federal and State Income Tax
• Accountancy Fees
• There may be nominal repairs, although not in year 1 as there is a 12 month guarantee on everything
The ‘Mini Motel’ Room
Each building contains 20 self-contained units. These will be charged by the day and rented to workers for 4 week periods at a time. Rent must be paid in advance with both a 4 week notice required and a security deposit taken.
Each suite is self contained, secure and fully furnished. All have the following durable features:
Double, Queen or King Beds. Multiple occupancy commands a higher rent rate.
Sitting/Bedroom
En-suite Bathroom including:
•ceramic round toilet, fibreglass shower
•porcelain vanity sink, towel rack & toiletry cabinet
Microwave
Flat Screen TV with cable
WiFi Internet ready
Lockable dead bolt door
Lockable screen window
Heat Thermostat
Smoke, Carbon Dioxide Alarms
Fully insulated for extreme cold
Rent includes all Utilities, Cable/Wi-Fi costs, VOIP Phone (calls charges extra), cleaning.
Breakfast and Evening Meals available at additional cost
Investors benefit from reduced prices when buying a complete 20 unit strip.
Hundreds of oil workers are currently living in ‘Portakabin’ style dormitories with no privacy and precious little insulation.
If they can’t find accommodation in one of these dormitories they will sleep in a tent, their car or a caravan. Not ideal living conditions in the bitterly cold winter months, just 50 miles from the Canadian border.
Cold and crowded accommodation is not what these workers need.
The ‘Mini Motel’ offers a cosy, comfortable and secure alternative!
Product Profile
A ‘value-added’, technology-advanced, pre fabrication home building system with active focus on lean and green related projects
The inception the ‘Mini-Motel’ came from years of research of the modular field. A concept of producing housing units in the same manner that the car companies produced automobiles was the beginning of the system built housing concept. After months of planning, incorporating experts in the field of lean manufacturing and plant engineering, the concept was perfected using high quality building materials, ‘just-in-time’ delivery solutions and experienced quality assurance personnel, this concept was ready to be implemented.
After the concept was perfected, quick and affordable housing methods would lead the way in both single-family residential as well as multi-family units. The ability to react quickly and with a floor plan and process, our system can replace conventional building methods within days at a more affordable cost. Nearly $4.5 million to date has been invested perfecting this concept. The initial investment was used to perfect the designs, process, quality assurance manuals, certifications, leasehold improvements, as well as purchasing and installing all the required equipment necessary to produce as many as 1,600 units per year.
With the present location of the manufacturing plant being in a HUB Zone, it allows for special consideration for federal projects. With the Federal Emergency Management Agency (FEMA) there is an entirely different market in replacement housing and emergency housing, as well as international housing needs that we will be equipped to undertake.
