florida presentation
TRANSCRIPT
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