Not released on the bizwire yet....
NATIONAL REHAB PROPERTY (NRPI) $.61. After the close of trading, NRPI announced that they received a Loan Commitment from Realty Money Center of $2,500,000 for the rehabing of properties in New Orleans. This financing will allow NRPI to buy, rehab and sell up to 50 homes at a time instead of the 5-10 homes they had been doing. That will be key for the Company reaching their goal of 100% growth over the next three years. The sales targets are 100 homes over the next 12 months, 200 homes in the second year and 400 in the third year. Earnings during this period of rapid expansion should grow from $.10 to $.20 in the second year and $.40 in the third year.
There are over 35,000 homes that the City of New Orleans would like to see rehabbed. Home ownership across the U.S. averages 70%. In New Orleans the average is under 30%, so there is a large untapped market. NRPI can provide a family with a fully rehabbed home for nearly the same monthly payment as they would have paid in rent for the same home before it was rehabbed.
NRPI has had requests from many cities and civic groups to bring their
system of buy, rehab, sell and finance homes in urban areas. It looks
like Atlanta, GA will be next city that NRPI adds to its operations.
Atlanta is a great market for affordable housing and there is a large
supply of homes to rehab. The Company has targeted ten additional cities to expand into over the next 2-3 years. The lenders in each of the cities have expressed interest in providing contruction and permanent finacing for any amount of homes that NRPI can rehab. Cities are eager to work with NRPI to upgrade properties, which will increase the tax base and also to improve entire neighborhoods. When a sizeable rehab project is started, it usually spreads throught the neighborhood. That is the original goal of urban renewal. The lenders want to work with NRPI, because of not only the volume of mortgages they can originate, but there is a great deal of positive public relations they can benefit from and in certain areas investment tax credits can be very lucrative.
|
