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Kankakee

SFR Portfolio

For Sale

N O V O P R O P E R T I E S , L L C

MARKET ING

BROCHURE

Per compliance with the Security Exchange Commission. This prospectus is

intended for private viewing only and it is not to be shared, copied, distributed,

and/or made duplicates of without the permission of Novo Properties, LLC. This

marketing brochure does not propose of any sale of securities and/or share of

any companies. Novo Properties, LLC. asks all private viewers of this prospectus

to consult with a competent attorney(ies) and tax professionals in making any

decisions to engage in any business activity.

This marketing brochure discloses all possible and estimated figures and

calculations that may not represent the most accurate information. The

information on this brochure may change and/or alter at any given moment.

With any or all business activity, we advise that risk is present. Your engagement

to conduct business with Novo Properties, LLC. may result in loss of funds

and/or value. The potential reward will also come with the potential loss.

Please be advised, that all information included in this document may change

and only deem to be the best calculated potentials of gains.

DISCLOSURES & DISCLAIMER

Novo Properties, LLC.

Novo Properties, LLC. 2578 Oak Trails Drive Aurora, IL 60506

The Kankakee SFR Portfolio consists of Four (4) Single Family

Residential Properties. The portfolio is compiled of just one owner,

Novo Properties. Novo Properties purchased the 4 properties from

Turco Living Trust via selling financing on March of 2017.

Prospectus will include market information, rent roll, opportunity

zones, information on each property, financials, verified taxes, and

return scenario. Contact information for further discussion is

[email protected]

Asking Price: $205,000

Option A: Discounted Cash Offer of $185,000 ($46,250 per house)

Option B: Subject-to existing financing. Buyer can continue the

note originally arranged by Novo Properties and Turco Living

Trust with a buyout of 70k to recoup capital spent on the portfolio

and also equity belonging to Novo Properties.

EXECUTIVE SUMMARY



Kankakee, IL is a city located about 50 miles south of Downtown Chicago, IL. The leadingemployers in the area are Nucor Steel, Olivet Nazarene University (home of the Chicago Bearstraining camp), CSL Behring, and Riverside Healthcare. (Full List of the Top Employers arefound here: http://www.kankakeecountyed.org/Kankakee/media/Kankakee/2018-Top-Employers-Page.pdf?ext=.pdf) The median household income in the Kankakee County is reported to be about $56,542 a yearaccording to TownCharts.Com. With an average unemployment rate of 4.7% (Jul 2018), thetrend shows that the unemployment has been falling. Recently, there has been a major development of a new ramp leading into the Kankakee areawhich has initiated further developments of commercial real estate as well as an industrial parkthat is scheduled to be constructed. New and major restaurants have opened in the last 2 years,such as Chipotle, Fire House Subs, and Five Guys, which signals new growth in the region. New retail stores (Meijer) have also opened signaling further strength of the growth. Kankakee is currently number 17 on the nation's fastest growing housing market.

MARKET ANALYSIS



Two out of Four properties that are part of the portfolio are located within qualifiedOpportunity Zones. The Opportunity Zones program encourages long-term investment andjob creation in low-income areas of the state, by allowing investors to re-invest unrealizedcapital gains in designated census tracts. This has significant tax advantages for investors thatbuys and holds in these opportunity zone areas. The Blue Dots in the image below are theapproximate location of the properties that are part of the portfolio.

OPPORTUNITY ZONES



ABOUT THE PROPERTIES


355 W Bourbonnais Street Kankakee, IL - 2 Bedrooms 1 Bath - $750/mo. 355 W Bourbonnais St is currently occupied with a tenant with a tenant paying$750/mo. in rent. This property is located in the opportunity zone. The propertyhas went through a rehab to replace the siding and the roof in 2017.




487 S Lincoln Ave Kankakee, IL - 2 Bedrooms 1 Bath - $800/mo. 487 S Lincoln Ave is currently occupied with a tenant paying $800/mo. Theproperty recently went through a roof replacement using funds from theinsurance company. This property is not located in the opportunity zone. Thisproperty had its furnace replaced in 2017 with a 10 year warranty.




258 W Water Street Kankakee, IL - 3 Bedrooms 1 Bath 258 W Water Street is located right along the river bank of Kankakee River.However, the property is not under any threat of flood and therefore, floodinsurance is not required. The property is located right next to a fire departmentas well as a riverfront park. The property is currently occupied with a section 8tenant paying $950 a month. This property is a good candidate for a nightlyrental business which supports the annual Chicago Bears training camp withbeing that it's only 10 minutes away from Olivet Nazarene University. Greatpotential with an average nightly rate of $124 a night if used for a nightly rentalbusiness.




770 E Station Street Kankakee, IL - 4 Bedrooms 2 Baths -$850/mo. In Rent 770 E Station St is a property located in an opportunity zone. It is currentlyoccupied with a Section 8 tenant paying $850 a month in rent. This property hadbeen lightly rehabbed in 2017 with a rough cost of $5,000 in to the repairs. Thefoundation of the porch has also been repaired in 2017. The property alsoreceived roof repairs and replacement. The roof replacement was done in 2018through the insurance company.


ABOUT THE PROPERTY MANAGEMENT


Turco Real Estate & Property Management Service, Inc. is the current propertymanager for the Kankakee SFR Portfolio. They have been managing theproperties since 2013. Their policy is to collect all rent on the 1st and theycommence any legal actions for any non-paying tenants on or before the 10th.Turco Real Estate & Property Management Service, Inc has been involved ininvesting, managing and selling real estate in the greater Kankakee Area for thelast 40 years. The company's main duties are: 1. Collects all rent2. Hires maintenance crews for repairs3. Place Tenants in Vacant Properties4. Advertises the property when vacant5. Communicates with the tenants in all matters6. Handles accounting and bookkeeping The purchaser has the right to find a new property management team at theirchoosing.


VERIFIED EXPENSES: TAXES



1. 717 S Lincoln Ave. Kankakee, IL $3,1132. 770 E Station St, Kankakee, IL $1,9993. 355 W Bourbonnais St, Kankakee, IL $1,7884. 258 W Water st, Kankakee, IL $2,373 Total: $9,273

* All the numbers are annual

1. 355 W Bourbonnais st, Kankakee, IL $750 2. 487 S Lincoln ave, Kankakee, IL $750 3. 258 W Water st, Kankakee, IL $950 4. 770 E Station st, Kankakee, IL $950

Total: $3,400

RENT ROLL

FINANCIALS: INCOME & EXPENSE



Annual Gross Income: $40,800 Typical Expense Ratio is 50% in this market. Expenses are difficult toshowcase due to high number of repairs and renovations. The onlyexpense that is verified are the taxes at $9,273 (annual). Due to 2 outof 4 properties being in opportunity zones the taxes when exiting theproperties will be beneficial. Other expenses for this portfolio include:Insurance ($270), maintenance, repairs, management, and misc. $40800/2 = 20,400 Net Operating Income Expenses: Estimated Total Taxes: $9,273/year ($772/mo.)Estimated Property Insurance: $3,240/year $270/mo.Estimated Maintenance: $3,800/yearEstimated Management: $4,080/year

TO MAKE AN OFFER OR TO FURTHER INQUIRE:



Contact Daniel [email protected]

Scheduled Calls Are Welcomed

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