Well here is the latest update beside's what is at NRPI's
Web site: nrpi.com
NATIONAL REHAB PROPERTIES (NRPI) National Rehab Properties (NRPI) is an
Ocala, Florida based company that has a long and successful record of
identifying and buying distressed or foreclosed properties, completing
renovations on the properties rapidly and inexpensively, and marketing
the homes to qualified first-time home buyers. Mortgage financing is
provided by independent lenders through the Federal Housing
Administration's Section 203(b) Program, which allows a buyer to purchase
a home with a down payment of only $200.
Home ownership is still the American Dream, but there are millions of
working-class families who are currently renting, that cannot save
$5,000-6,000 for a normal down payment. Through the program followed by
NRPI, potential owners can buy a completly renovated home for a
downpayment of only $200 if they have good credit and earn a steady
paycheck and pay taxes.
NRPI's management has great expertise in this particular real estate
niche. Richard Astrom has 25 years experience in rehabilitating homes in
South Florida. He intends to remain a leader in the ongoing task of
rebuilding the nation's decaying urban housing stock and make a tangible
and long lasting contribution to the community. NRPI's management has
great expertise in this particular real estate niche. Their knowledge of
this market has allowed NRPI to minimize costs and maximize profits,
while providing the best possible value to the homeowner. NRPI's
properties typically sell for $60,000 and produce a $10,000 profit to the
company, a 16.7% return. The complete buy-repair-sell process for each
property takes about six month. The results are an annual pre-tax return
of 32%
The United States Department of Housing and Urban Deveopment (HUD)
and the Federal Housing Administration (FHA) support the cities and their
residential neighborhoods with low downpayment housing programs. These
financing programs are very favorable to lower class and lower middle
class citizens. The programs are not subsidized by the government and
carry their own weight in Washington's bureaucratic environment where
charity is often scorned. The FHA is one of the few departments that
relieves the strain put on the national debt by other public housing
programs. With allotments of over $1 trillion, HUD and FHA intend to keep
foreclosed properties on the tax rolls and homeowners in the houses. The
government favors private ownership over public housing and
tenant-renter situations. It is up to the private and public sectors to
engage these encouraging and sound programs and make them successful.
National Rehab Properties, Inc. takes the challenge by revitalizing urban
neighborhoods, and in so doing, help thousands of working class families
realize the American Dream of home ownership. Cities understand that
it is extremely important to have good, affordable housing to prevent the
polarization of the city versus the suburbs. NRPI works toward that goal
by providing a sense of rebirth and renewal in urban neighborhoods.
National Rehab Properties, Inc. has successfully tested its "buy low,
renovate, sell high" business strategy in South Florida and has now
expanded into New Orleans with other locations later this year.
Ultimately, the Company's goal is to buy, renovate and resell thousands
of distressed homes in the working class sections of large Eastern
Seaboard and Sunbelt cities. NRPI's strategy is to either complete the
rehab and sale process or wholesale the properties to non-profit
organizations or other rehabers. The profit margins are the same in
either case.
The growth and profitability of the Company are due to several
factors. The Company buys homes at very low prices, remodels them using
their own full time repair crews and sells the properties into a
substantial and growing market. They establish lines of business with
major banks to promptly clear their inventory of foreclosures, thus
eliminating any further financial losses and costs of marketing to the
original lender. The Company controls the mortgage qualification process
by working closely with FHA-approved lenders, Lastly, the expansion into
other cities allows for real growth for the Company and for
diversification of the marketplace. Being a publicly traded company, NRPI
has a very large advantage in being able to raise money, whenever needed,
unlike the private redevelopment firms, who have to deal primarily with
the banking community.
NRPI plans to increase its sales volume in the second year to two
hundred homes with a net income of $2 million, which is $.20-.25 per
share. For the third year the Company plans to sell 400 homes with a net
income of $4 million, which is $.40-.45 per share in earnings. NRPI is
now properly funded to accomplish these goals and with their expansion
into additional markets. To achieve their goals NRPI needs to sell only
20-50 homes in each new marketplace they expand into over the next two
years, which is a very small part of the resale market of any large city.
The Company's sales are insulated from the vagaries of the normal real
estate market because it is dealing with starter homes that require
almost no downpayment and the monthly payments of $550-600 are typically
equal to what someone would pay in rent for the same property.
NRPI has 9.5 million share out and 1.95 million free trading. Of
that over 1 million is in closely held hands. The balance of the
restricted stock is in the hands of management and a major investor who is subject to the trickle down rule.
I will be calling the company tomorrow to verify all of the DD that I have done over the weekend.
I am told from some very reliable sources that we will see some type of news to in reference to some possible financing that Stock 4 Tomorrow has been talking about over the last couple of weeks.
I am also told they will be making an alliance with another publicly traded company.
They will be in numerous magazines and newsletters over the next couple of months.
Things look very bright in the near and long term future of NRPI.
I will add more tomorrow once I speak to the company. |
