Real Estate Private Equity Case Studies

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At Canopy South, we invest in a strategic blend of real estate opportunities, including transactional funding, short-term developments, residential renovations, rental conversions, multifamily developments, horizontal property regimes, and new construction. 

We are deeply committed to achieving great results for our investors, partners, and the communities in which we work and live. We invest with trusted business partners in properties that add value to the local community. As Nashville continues to grow we hope to play an important role in the development of safe, comfortable, and beautiful real estate.

The following case studies represent two recent residential transactions for which Canopy South provided financing.


Case Study 1: Affordable Housing Renovation

Project Description

Location: Clarksville, TN
Start Dates: 11/11/16 and 11/23/16
Completion Dates: 3/15/17 and 6/9/17
Total Loan: $125,000
Average cash return on investment: 9.725%
Annualized return: 32.76%

Project Needs & Challenges

We were approached by an experienced investor in Clarksville whose plan was to renovate two aging homes and then rent them as affordable housing under Section 8. Both houses needed extensive renovations to bring them up to code and to make them welcoming and comfortable places in which to live. He needed immediate funding to purchase the houses quickly for cash and to complete the renovations. After conducting careful due diligence, we felt confident in the investor’s background, capabilities, and business plan. We issued the loans with a combination of Notes, Deeds of Trust, and Personal Guarantees.

Outcomes

Both homes are currently rented and the developer is drawing a steady income from two performing rentals and the tenants are enjoying nice, newly renovated and affordable homes in the Clarksville community.

Trust. Value. Community.

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Case Study 2: Affordable Housing Renovation

Project Description

Location: Franklin, TN
Start Date: 11/10/16
Completion Date: 11/22/16
Total Loan: $145,000
Annualized return: 91.25%

Project Needs & Challenges

We seized an excellent opportunity to invest with a developer and renovator we had successfully done business with in the past. The investor needed funds quickly to purchase a property in Franklin, TN for flipping. Having had a positive experience with this individual and his company, we were willing to supply the full loan amount. We charged a simple fee of 3%. The loan was secured by a Promissory Note and a Deed of Trust. As a contingency, in the event that the property didn’t sell as quickly as anticipated, we built in charges in the Note that would have been applied had the transaction gone beyond 30 days. Furthermore, our lien on the property and the property’s value would have assured us that our principal was protected.

Outcomes

The investor closed on the property using our funds and sold for a quick profit. The principal and $4,350 interest was returned to the Canopy South Financial fund in just 12 days.