TAMPA, Fla., April 11, 2011 /PRNewswire/ -- American Community Development Group, Inc. (OTC Pinksheets: ACYD) today announced that it has negotiated additional private mortgage financing to secure additional properties.
A group of private investors have offered secured mortgage financing at 8% interest amortized over a 20 year period with a buyout provision in 5 years. It is anticipated that this financing package will allow the Company to double the size of the housing portfolio during the year. Additional Revenue from this short term expansion could exceed $1 million annually with a 20% gross margin.
Investors have realized that we can usually fill a property to 100% occupancy within 60 days, thereby allowing increased cash flow and security. An additional advantage is that many of the occupants have a government or agency sponsored housing allowance.
American Community Development Group, "The Company", was founded as a real estate investment company in the Tampa Bay, Florida market. We intend to acquire properties at tremendously discounted prices during the current market down trend. The Company has also received offers to expand its pilot operations in other markets where distressed real estate prices are prevalent. We then increase shareholder value and revenue by using the properties to house the clients of existing nonprofits groups or other agencies.
A typical 3 bedroom property generates over $30,000 annually in gross revenues because of the extremely high demand for transitional housing. This compares to an average rental income of about $12,000 for a similar property with a traditional tenant.
According to John Folger, President of American Community Development Group, "We are currently acquiring interests in single and multi-family homes, affordable housing, and other high occupancy commercial real estate properties, all while helping members of our community." He continued, "This approach sits well with both the community and our shareholders because we work directly with the nonprofit community to house their clients. This model keeps our properties fully occupied."
For more information please visit our website at www.AmericanCommunityDevelopmentGroup.com.
About American Community Development Group
American Community Development Group (OTC Pinksheets: ACYD) is a hybrid social business model founded by a group of experienced professional managers and principals that acquire or fund businesses, consult with the nonprofit community, and purchase real estate and affordable housing properties for the purpose of housing and employing individuals and families in crisis or challenge. The properties include single and multi family homes, apartments, hotels, and mobile home parks.
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SOURCE American Community Development Group, Inc.