Klaraos Neighborhood Redevelopment - Weekly Update

Written by Klaraos | 26 August 2010

Here is the weekly update for the week ending 8/27/2010:

Klaraos Neighborhood Redevelopment successfully purchased its 15th home August 26th.  It is the 8th home in Sacramento, with the other 7 located in Elk Grove.  Additionally, this week, KNR 14, located on Connor Circle in Sacramento has gone on the market after purchasing it last Thursday.  We are continuing our pace of one home a week, and we have now purchased four homes in the month of August, on top of the 5 we purchased in July.

On the horizon, we should have two homes close escrow in the first part of September, and two close escrow in the latter half of the month.  Four sales in a month would be the most succesful closing month to date, so we are eagerly anticipating a happy month of September on top of two solid prior months.

Many people have seen the news lately that pending home sales are down 25% from a year ago, and have shown some concern.  While the market continues to deliver these types of news events, KNR has seen no slowing in activity; July and August have been our busiest and most successful months to date.  This is attributed to our disciplined approach to buying homes that will sell quickly, and we look forward to continued success. 

I will send an updated map of home purchases next week, as I have received several positive comments about that type of posting.  I will also send a detailed (albeit brief) month end report to all investors towards the beginning of September, and will continue to do so on a monthly basis.

Have a wonderful weekend everyone!

KNR Weekly Update

Written by Klaraos | 13 August 2010

KNR has completed another successful week.  On Tuesday, KNR 3 closed escrow, after a hold time of 81 days.  While this is the longest hold we have encountered, the home was purchased through a VA loan, and considering the difficulty in closing VA loans, we were happy to see the hold time less than 90 days.  KNR 3 yielded a 13% return and we are happy to have the funds back to purchase additional homes.  On Wednesday, KNR succesfully purchased its 13th home for the fund in 118 days of operation.  The home, located on Bastona Drive in Elk Grove, should be ready to be placed on the market next week.  On Thursday, an escrow was opened for KNR 5, with the expectations to close escrow some time in the latter part of September.  We are also placing KNR 12 on the market today, hoping for a succesful first weekend of showings and Open Houses.

To date, KNR has closed five escrows of the 13 homes purchased and an additional four are in escrow.

As always, if you have questions on specific performance, please let me know.  We have been gathering plenty of data and statistics that we can share with you on an individual level.  If you have any other questions on Klaraos Neighbhorhood Redevelopment regarding investment into the fund, please call or send an email and we will be happy to share the information.

Have a wonderful weekend everyone! 

Best,

Geoff

KNR - Map of Purchased Homes

Written by Klaraos | 05 August 2010

Hi All,

Just wanted to share a map of the Sacramento area with pinpoints in the location of the homes we have purchased.  While many of you are familiar with the neighborhood's that we are purchasing homes, some people are more visual (myself included).

KNR Completes Record July

Written by Geoff Zahler | 04 August 2010

After a successful Second Quarter of 2010, in which KNR started purchasing homes, we anticipated a steady increase in momentum as the cycle of purchasing through sale of homes matured.  From April 15 through the end of the second Quarter, KNR purchased 6 homes and closed escrow on 2.   

I am very happy to report that KNR has already matched the accomplishments of the first quarter, and we are still only in the first week of August!  After a slow, albeit steady, end of June, KNR purchased 5 homes in the calendar month of July.  Two of the homes were purchased in the city of Sacramento, and three were purchased in the city of Elk Grove.  The purchase price of the five homes for the month of July totaled $1,113,000.  While purchasing the homes is a great part of the overall investment strategy, selling the homes is the most important part.  After closing two homes in the Second Quarter, we are happy to announce two additional closes in the month of July.  KNR 2, purchased in May, closed on July 2.  The total hold time for KNR 2 was 51 days.  The other home that closed escrow was KNR 8; a home located in Elk Grove on Modena Way.  KNR 8 was purchased on July 6, 2010 and we received the funds at the close of escrow on July 23 – a total hold time of only 17 days!  KNR 8 has easily been the largest win for the fund, returning over 20% to the fund in profits in less than three weeks.  On an IRR basis, this is off the charts.  We have software in the office that runs our IRR calculations which calculates up to an IRR of 999.99%, and when computing the returns for KNR 8, the system cannot compute it; estimates are in the 4000% range for the home.  Of the other homes purchased in July, one is already in escrow.  We closed out the month of July by successfully purchasing a home on the last two business days of the month, which should be on the market tomorrow.

If July is any indicator, August and the upcoming months should be equally as promising.  We purchased our 12^th home for the fund on August 3, 2010.  We have two homes that are scheduled to close escrow during this month (KNR 3 and KNR 5), with KNR 9 following in September.

For the life of the fund, we have made 12 purchases in 110 calendar days.  Counting weekends and holidays, we have been on a pace of one home per week, which was one of our initial goals as we grew the size of the fund.  The four closed escrows have achieved a total gross profit of $130,000 thus far.

Overall Statistics at a Glance

Average Purchase Price - $226,333.33

Maximum Purchas Price - $290,000

Minimum Purchase Price - $136,500

City of Sacramento Purchases – 6

City of Elk Grove Purchases – 6

A chart on the growth of the Fund since inception:

If you have any questions, please feel free to contact us about your investment in Klaraos Neighborhood Redevelopment, or for the opportunity to invest in Klaraos Neighborhood Redevelopment.