florida presentation

Maximizing Investment Returns Using Distressed Real-Estate

OPPORTUNITY : FLORIDA

Executive Summary:We present an opportunity for real-estate investment that is perhaps, once-in-a-lifetime . The unprecedented and unfortunate chaos in the U.S. economy brings with it incredible opportunity for the visionary investor. Baron Rothschild, of the famous British banking dynasty, said the best time to buy was "when there is blood in the streets."

Great advice by the Baron, -- however, if you do not know what you are doing in the area of distressed and foreclosed property acquisitions, one can easily end up bloodied instead of the victor.

IRG specializes in doing all the “heavy lifting”, bringing to select investors a portfolio of homes that have been rigorously screened and vetted; ready to deliver (at worse) market-out-performing returns yet with incredible upsides more likely than not.

Join us now in this remarkable investment proposal.

“An investment in knowledge always pays the best interest” - Benjamin Franklin

Southwest Florida : The Perfect Storm

Opportunity

$

Beautiful New Homes Undervalued

Desirable Regional Location

Banks Dumping

REO Assets

Strong Rental Market

WHO WE ARE!Uniquely qualified to capture this investment opportunity

We Locate & Assemble Properties

Very difficult for part-time or

one-time buyer Time-consuming to build a

network & real estate team A limited window of

opportunity Currently a Feeding frenzy

environment in Southwest Florida

Our Company has built a powerful, local team and has preferential access to a number of institutional property mortgage holders.

We Clear the Foreclosure Hurdles

Steep learning curve to acquire distressed properties

Easy to make mistakes for first-time buyers

Approach varies lender-by-lender, home-by-home

IRG team has over 30 years of real-estate experience

Our Team has the knowledge to acquire the ideal investment

properties at the absolute best price – ideal for

“buy & hold” investors!

Our properties are “As New”!

Most less than 5 years old

Many never lived in Trusted local

contractor/builder for home evaluation & repair

All meet most-recent hurricane standards

Incredible “Wow” factor

The homes we have purchase are all similar in style & floor plan, making them easy to manage

and easy to incorporate into any type of investment property

package.

Strong rental market – Ideal rental properties

3 Bedroom/ 2 bath minimum Move-in ready Direct relationship with a

local Property Management firm

Rental rates: $750-950, depending on home configuration

Property Management Rent collection Provide/supervise

maintenance Payment of all bills/mortgage Assist/supervise resident

managers 7 x 24 availability

TURNKEY!

WHY SOUTHWEST FLORIDA?

Regional & Neighborhood Highlights

SOUTHWEST FLORIDA

Ideal Weather Disney/Busch Gardens less than two hours away

Gulf access

2 hours to either Tampa/St. Pete or Miami

1 hour to Everglades National Park

World-Class International Airport

Home to MLB Spring-training

Barrier Islands with world-class shelling

Home to Edison-Ford winter estate

Boating, Golfing, Hiking & more

SOUTHWEST FLORIDA

CAPE CORAL (156,981 pop)

Over 400 miles of

canals

Cost of Living Index = 94

Median Home Value

= $184,194

Median Age: 40

CAPE CORALSTATISTICS

LEHIGH ACRES(49, 753 pop)

120 sq miles in Paradise

Cost of Living Index =86

Median Home Value = $125,420

Median Age: 35

Schools spend $3955/student, 18 students per teacher

Centralized , spacious, established location

LEHIGH ACRESSTATISTICS

OPPORTUNITY: REAL ESTATE

To be BOLD when others are fearful

InvestingOpportunity often exists when the

majority of people are saying, “don’t do it”!

In specific real-estate niches, lie the richesVolatile markets offer the greatest

opportunityBanks can fail, stocks can go to $0CDs and money market returns below

inflationREAL PROPERTY always has intrinsic

value

Investing in Property

No more land being createdPopulation steadily growing, fueling demand for

propertyOver 77M Baby boomers approaching retirementFlorida projected to grow to 30M people from

current 17M in next 20 yearsAgain: REAL PROPERTY always has intrinsic valueAsset make money. Money makes money!Most families like to live indoors!!

Typical Elevations

Concrete ConstructionSlab FoundationExterior Irrigation Systems3b/2b 2 car garage8000 Sq Ft Lots

Typical Floor Plans

Living Area 1,467Garage 432Entry 96Total 1,995

Typical Floor Plans

Living Area 1,785Garage 405Entry 150Total 2,340

Typical Kitchens

Modern AppliancesBuilt-in DishwasherMicrowaveRecessed lightingSpacious & open

Typical Dining Rooms

Typical Master Bedrooms

Typical Master Baths

Typical Living Rooms

Typical 2nd-3rd Bedrooms

Typical Second Baths

Typical Utility/Garages

Typical Screened Porch/Exteriors

Typical Wells/Pumps/AC

OPPORTUNITY: FINANCIALS

A Two Part Equation

RENTALINCOME

• MONTHLY CAP RATE EXCEEDING

MARKET RETURNS A

CONTROLLED RISK / HIGH-

YIELD INVESTMENT OPPORTUNITY

MARKETRECOVERY

• REALISTIC APPRECIATION EXPECTIONS

Part 1 : – Rental Income

5 YEAR RENT 1 2 3 4 5Gross Rental Income $ 123,600 $ 129,780 $ 136,269 $ 143,082 $ 150,237 $ 682,968 Initial Rent Placement $ - $ - $ (3,200) $ (3,200) $ (3,200) $ (9,600)Property Taxes $ (31,809) $ (25,447.15) $ (25,447.15) $ (31,809) $ (31,809) $ (146,321)Insurance $ (6,660) $ (6,660) $ (6,660) $ (6,660) $ (6,660) $ (33,298)Property management $ (12,978) $ (13,627) $ (14,308) $ (15,024) $ (15,775) $ (71,712)All Other Rental Expenses $ (9,000) $ (9,000) $ (9,000) $ (9,000) $ (9,000) $ (45,000)Net Rental Income $ 63,154 $ 75,046 $ 77,654 $ 77,390 $ 83,793 $ 377,038 Annual Cap Rate 5.95% 7.07% 7.32% 7.29% 7.90%

Annual Property Operating Data

146,321

71,712

45,000

33,298

192

NOIProperty TaxesProperty ManagementRepairsInsuranceVacancy

Part 2: Market Recovery Figure 1: Loss of Value Illustration

Figure 2: Market Recapture Scenarios

Part 2: Market Recovery (continued)

A HIGH-YIELD INVESTMENT OPPORTUNITY

Figure 3: Total ROI (Rental Income + Market Appreciation)

Additional Properties Available

The Following Slide shows all properties available and shows additional properties that may be purchased along with this package, or separately

Address of Square Estimated Price Asking Assessed LastProperty City Beds Bath Garage Foot Rents* per sf Price Value Sale Price2510 39th St W Lehigh Acres 33971 3 2 2 1574 790$ 53.00$ 83,422$ 159,730$ 266,500$ 2519 39th St. W Lehigh Acres FL 33971 3 2 2 1458 850$ 53.00$ 77,274$ 151,060$ #N/A916 NW 15TH Ave Cape Coral 33993 3 2 2 1458 850$ 65.00$ 94,770$ 151,040$ 260,000$ 131 Mcarthur Blvd Lehigh Acres, FL 33936 3 2 2 1408 790$ 53.00$ 74,624$ 135,410$ #N/A916 Avery St E Lehigh Acres FL 33974 3 2 2 1408 790$ 53.00$ 74,624$ 134,030$ 92,500$ 2841 NW 2nd Ter Cape Coral 33993 3 2 2 1422 790$ 65.00$ 92,430$ 132,000$ 122,200$ 1019 Alcan St Lehigh Acres FL 33974 3 2 2 1458 850$ 53.00$ 77,274$ 127,410$ Deed In Lieu206 Floyd Ave N Lehigh Acres, FL 33971 3 2 2 1326 790$ 45.00$ 60,000$ 88,950$ 97,000$ 2610 47th St. W Lehigh Acres FL 33971 3 2 2 1408 790$ 53.00$ 74,624$ 138,860$ #N/A2906 49th St. SW Lehigh Acres FL 33971 3 2 2 1408 790$ 53.00$ 74,624$ 130,660$ 88,900$ 3111 46th St W Lehigh Acres, FL 33936 3 2 2 1408 790$ 53.00$ 74,624$ 146,960$ 92,900$ 3211 55th St Lehigh Acres, FL 33971 3 2 2 1458 900$ 58.00$ 84,564$ 135,380$ 240,000$ 3301 23rd St W Lehigh Acres 33976 4 2 2 1712 825$ 53.00$ 90,736$ 171,050$ 295,700$ 3317 57th st W Lehigh Acres 33971 3 2 2 1785 890$ 53.00$ 94,605$ 161,230$ #N/A3415 59th St. W Lehigh Acres FL 33972 3 2 2 1574 790$ 53.00$ 83,422$ 148,310$ 92,900$ 3606 2nd St W Lehigh Acres 33976 3 2 2 1680 790$ 53.00$ 89,040$ 157,870$ 249,900$ 848 Foxtail street E Lehigh Acres, FL 33936 3 3 2 1831 900$ 50.00$ 91,550$ 163,980$ N/A NEW

Totals 25,776 9,895$ 54.01$ 1,392,207$ 2,433,930$ 1,898,500$

Yearly Rents 118,740$

*Estimated Rents are projections. Seller to provide renters 30 days after closing on vacate properties if required.

Market Trends From November 2008 To May 2009. The Following Slides Show Significant Increases in Value in Only a Few Months!!!! Southwest Florida’s Values Are Recovering Very Quickly!!!

Sales In November of 2008

June Sales

Avg. Days On Market 34 for both, Sale Price increase of 20 dollars per square feet in only 5 to 6 months, Sales are 102 to 108 percent of asking price on average.

June Pending Properties

Properties have been increasing dramatically in the past 6 months. If our average of 102 percent of asking price continues, we will see over 70 dollars a sqft in closings for June. This averages an increase of 5% a month. Just sitting on one of these properties can yield a 60 percent return on your money in 12 months, but as a rented, cash flowing entity, your return is increased by 8 percent and little to no risk as an investment.

NEW ARTICLES AND CLIPS OF AREA

© 2008 by NBC2 NEWS. Germans snapping up real estate in SWFLA due to great exchange rate.Germans cashing in on SWFL foreclosures

1 Euro = 1.5877 dollars

CAPE CORAL: There is a new twist to the foreclosure market in Southwest Florida. Germans are taking advantage of the exchange rate, scooping up properties for an even better deal.

Realtor Marc Joseph estimates a home selling for $90,000 in Cape Coral can be bought with European money for only $57,000.

The issue is catching the attention of a national TV news crew from Germany. Three people from Spiegel TV traveled more than 5,000 miles to come to Cape Coral to report on the foreclosure market here.

"It's quite overwhelming I must say, even as a reporter, to see what's going on," said German TV reporter Julia Kriwitz. "Everything is on sale, everybody is hustling, wheeling and dealing."

The German crew followed more than a dozen interested buyers on a foreclosure bus tour through the Cape.

Cathrin Matzen is one of them. A native German, she says she was first attracted to Cape Coral because of the large German population.

"You get your heritage neighborhoods, we still have German friends here, get the Germany bakery, everything is German. It feels like home," says Matzen.

Now she's looking to invest in the real estate market.

Although she was a little distracted by the German news cameras. She hopes her family back home will catch a glimpse of her on TV.

The news crew is putting together a 45 minute documentary that will air on national TV in Germany in early September.

Important Notice Buyers are responsible for conducting their own due diligence and may not rely solely on the

information herein. This presentation contains forward looking statements and forward looking statements are based on assumptions and are speculative. Forward looking statements by their nature involve substantial risks and uncertainties and actual results may differ materially depending on a variety of factors. Appraisals and property values may change significantly over tie,. Nothing in this presentation may be relied upon as tax advice and no statements herein are made for purpose of tax avoidance. All information in this document regarding market demographics, market economics and future expectations is from third-party sources and has not been independently verified.

Property DataAddress SFR Sq Ft Price PSQF Annual Rent Rent Average Assessed Value 1.7 Millage Insurance STRAP

1 3317 57th st W Yes 1785 94,600$ 53.00$ 10,680$ 890.00$ 161,230$ 2,838.00$ 503.76$ 11-44-26-06-00056.0020

2 2510 39th St W Yes 1574 83,400$ 53.00$ 9,480$ 790.00$ 159,730$ 2,502.00$ 503.76$ 13-44-26-10-00102.0190

3 3301 23rd St W Yes 1712 90,900$ 53.00$ 9,900$ 825.00$ 171,050$ 2,727.00$ 552.91$ 23-44-26-04-00023.0100

4 1019 Alcan Yes 1458 77,250$ 53.00$ 9,900$ 825.00$ 127,410$ 2,317.50$ 503.76$ 26-45-27-11-00042.0110

5 916 Avery ST E Yes 1408 74,600$ 53.00$ 9,900$ 825.00$ 134,030$ 2,238.00$ 503.76$ 02-45-27-01-00006.0050

6 2906 49th St. SW Yes 1408 74,600$ 53.00$ 9,480$ 790.00$ 130,660$ 2,238.00$ 503.76$ 13-45-26-02-00015.0130

7 2519 39th St. W Yes 1458 77,300$ 53.00$ 9,900$ 825.00$ 151,060$ 2,319.00$ 692.18$ 13-44-26-10-00103.0040

8 3415 59th St. W Yes 1574 83,400$ 53.00$ 10,200$ 850.00$ 148,310$ 2,502.00$ 503.76$ 11-44-26-06-00050.0040

9 2610 47th St. W Yes 1408 74,600$ 53.00$ 9,900$ 825.00$ 138,860$ 2,238.00$ 692.18$ 12-44-26-12-00113.0150

10 131 Mcarthur Ave Yes 1408 74,600$ 53.00$ 9,480$ 790.00$ 135,410$ 2,238.00$ 503.76$ 2-45-27-02-00014.0060

11 3111 46th St W Yes 1408 74,600$ 53.00$ 9,900$ 825.00$ 146,960$ 2,238.00$ 503.76$ 14-44-26-05-00041.0020

12 3606 2nd St W Yes 1680 89,000$ 53.00$ 10,200$ 850.00$ 157,870$ 2,670.00$ 692.18$ 26-44-26-07-00028.0150

12 18,281 968,850$ 118,920$ 29,066$ 6,660$ TOTALS825.83$ 2,422.13$ AVERAGE

PURCHASEBase Purchase Price 968,850$ Closing Fee 950.00$ Total Cost to Purchaser 969,800$

5 YEAR RENT 1 2 3 4 51Gross Rental Income 118,920$ 124,866$ 131,109$ 137,665$ 144,548$ 657,108$ 2Initial Rent Placement -$ -$ (3,200)$ (3,200)$ (3,200)$ (9,600)$ 3Property Taxes (29,066)$ (23,252.40)$ (23,252.40)$ (29,066)$ (29,066)$ (133,701)$ Insurance (6,660)$ (6,660)$ (6,660)$ (6,660)$ (6,660)$ (33,298)$ 4Property management (12,487)$ (13,111)$ (13,766)$ (14,455)$ (15,178)$ (68,996)$ All Other Rental Expenses (9,000)$ (9,000)$ (9,000)$ (9,000)$ (9,000)$ (45,000)$ Net Rental Income 61,708$ 72,843$ 75,231$ 75,285$ 81,445$ 366,513$ Annual Cap Rate 6.36% 7.51% 7.76% 7.76% 8.40%

1Assumes 5% Annual Rent Escalation2Assumes 33% turnover after Year 33Assumes 30% Tax Reassessment reduction years 2-34Assumes 10.5% Negotiated Rate