Van Holdings LLC | Application Preview
Van Holdings LLC is applying for government grants to support the development and renovation of newly acquired properties in the Sparks/Reno area. The funding will facilitate both residential and commercial real estate initiatives, aimed at enhancing service quality for tenants and ensuring business scalability.
The business plan focuses on a mixed-method model, accommodating long-term tenants to provide essential local housing, while also offering short-term rental options for visitors. This dual approach aligns with the intended use of government funds and presents a viable investment for lenders.
The application highlights proven results, showcasing consistent cash flow with a CAP rate exceeding 25%. An example includes a triplex purchased for $655,000, generating $239,661.61 in 2022, without any down payment, resulting in a remarkable 36% CAP. This performance demonstrates attractive returns for investors, especially amid a rising interest in single-family rentals.
The competition primarily consists of hotels, other short-term rental operators, and the potential for policy changes affecting rentals. However, Van Holdings stands out by committing to a long-term growth strategy, leveraging veteran benefits, and conducting thorough market research prior to investment. This comprehensive approach positions the business to navigate risks effectively while maximizing profitability.
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General Information
Business Registration Number: 88-1478856
Location: Los Angeles, CA, United States
Length of Operation: 1-5
Number of Employees: 1-10 Employees
Annual Gross Income: $500k to $1M
Annual Gross Expense: Less than $100k
Open to Loans: YES
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Funding Usage
I will use the funds for new development in sparks/reno and renovations of newly acquired buildings to be able to continue to scale and provide high quality service to the business and its tenants. These funds can be used for both residential and commercial real estate.
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Business Plan
I plan to grow my business by continuing to use the current model I have been using to scale at a faster pace. I utilize a mixed-method with all of my buildings, meaning some of the units are strictly for long tenants to provide needed housing for locals, and the other side of the business caters to visitors for business or recreation through short term rentals. This way I'm both fulfilling the intention of government funds as well as being an intelligent businessmen that ensures the numbers make sense for both the lender and myself from an investment standpoint. Investors should invest with me because I proven results over a number of years in other markets as well as here in Nevada. The cashflow I'm accustomed to generating sits consistently between a 25%+ CAP. Here's a real example of one property that I own: I paid $655,000 for a triplex. For the year 2022, this property generated exactly $239,661.61. I also put $0 down for the loan, which means my cap is 36%! For investors, this is exactly the type of return that they want to see. With consistent returns like this, you can why so many funds have ramped up their acquisition of so many SFR's as merely sticking to the traditional model of long term tenants isn't satisfying their palette.
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Self Identified Competition
My top 3 competitors would be hotels, other short term renters, and or the threat of local policy outlawing short term rentals--which is why I take a mixed-use approach as mentioned above. 1) I've committed myself to growing the largest and most efficient portfolio until the end of my days; most people these days could never say that they'd see themselves doing anything for their entire lives. I DO, therefore I will outlast my competition. They. aren't willing to do what I'm willing to do and are encumbered by distractions--I have neither. I have 3 dogs! 2) I'm a veteran that uses all of his entitled benefits to enhance all of my businesses. 3) I do the maximum effort BEFORE investing in any market including: internet research, flying out for a week or two to understand the town, making relevant professional connections in the town to understand potential local pitfalls that could derail my initial strategy, knowing what my expenses are, tax implications and benefits. It is a multidimensional approach that I take to ensure that I don't put myself into any situation that I cannot get out of or that isn't profitable.
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Contact Applicant
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