wilson investment properties -...

www.TomWilsonProperties.com

Wilson Investment Properties

Tom WilsonPresident / Founder


Saratoga, Ca408-867-1867

[email protected]

Highest Cash Flow Quality Turnkey Investments in the USA

Opening the Door to theBest Real Estate Investments

Wilson Investment PropertiesPresentation Agenda

� Tom’s Top Tips – Experience Speaks� Investment Choices Methodology� Texas & Dallas/Ft.Worth� Wilson Investment Properties Business Model� Product Model

www.tomwilsonproperties.com

Path of One Investor - Tom Wilson� BSEE University of Delaware 1969� Silicon Valley 1969; 30 years Hi Tech�2 Start Ups, 7 Companies, 2 VP positions� 1st Prop 1971; 1st Rental 1975� 1998 Retirement Plan Wake up call�Year Business Plan Research� 1999 – Began 1031 Exchanges to DFW � 1999-2010; >$100M & >1600 units , 7 multifams,

3 condo conversions, 3 syndications� In 3yrs Cash Flow replaced W2; 3x Net Worth� Founded Wilson Investment Properties 2006�260 Props Rehabbed & Leased Props for Investors


Tom’s Top Tips�Buy in Top Metros�High Cash Flow�Low Risk�Not next door�Buy in Best Submarkets &

Neighborhoods�Buy Good Products�Let time be your friend�Most of my purchases were near

market value & 20% down & have done very well thank you!


Analyze & Compare Local and Economic Trends

�Different regions have different cycles�Submarkets can vary a lot from the averages!!

Tom’s Top TipsDon’t be a Landlord

Be an Investor

Always Think About Opportunity Costs


Use, & Don’t Underestimate Your Generalist Skills

� Market Analysis� Supervision� Communications� Marketing� Financial� Project Management� Management by Objectives� Delegate Responsibility &

Accountability


Focus; Don’t Get Too Much on Your Plate at One Time


Leveraged Return on Down Payment

More Important than Appreciation


Be Honest About Acquisition Costs� Rehab� Trash out� Flooring� Landscape� Paint� Kitchen & baths� Roof� Fixtures plumb &

elec� Appliances & HVAC� Windows� Staging� Garage door� Rehab surprises


� Closing costs� Taxes� Debt service� Insurance� Utilities� Property mgmt� Advertising� Lease up fee

Tom’s Top Tips

�Secure an Experienced Team�Don’t try to do it all�Delegate to experts you trust


Follow Success

Often the Tortoise Beats the Hare!

Don’t be in too big of a hurry

Doing it right is better than doing it fast

Learn From Your MistakesDon’t Run &

Forget


Be Careful What Persons with Influence Tell You

“We’ve never had a decline of housing prices on a nationwide basis. What I think is more likely is that house prices will slow, maybe stabilize. I don’t think it’s going to drive the economy too far from its full-employment path, though.”

Ben Bernanke

July 29, 2005


Dr. Doug DuncanVP & Chief Economist Fannie Mae

“If anyone tells you that they know how this

market is going to play out, run like heck!”

Bruce Norris, Howard Blum, Tom Wilson, Sean O’Toole

Great Principles Are Not Complicated

Don’t miss the Obvious & Simple


Conrad Hilton Founder 1st International Hotel Chain

Nathan RothschildHeir to World’s Wealthiest Family


It was Really a CREDIT BubbleTightened Credit Caused Price Declines


Prices Revert to the Mean


Shadow Inventory


Unemployment Recovery after Recession


>2030!


Percent of Owners Intending to Repurchase

Get a Grip: The Appreciation / Speculation Game

is Over!So What Do You Do?

1.Wait until everybody knows everything is going back up ?

2.Invest in a location that soared and crashed, hope it doesn’t go down much more & hope to catch the next wave ?



Buy Assets That Produce Income Now

Cash Flow & IRR Sensitivity


0

20

40

60

80

100

120

Rep Ins Occ PropMgmt

Tax Int Rate RentRatio

CoC

IRR

% Bottom Line Change for 20% Changein Income & Expenses

3Br/2Ba $125,000 home, $1250 Rent, DFW

So You’re Looking for Cash Flow?Look no further……..

High Rent Ratio

=High Cash Flow

Monthly Rent $Market Value of Investment

Monthly Rent $Or Total Invested $$

$1000/mo rent = 1% $100,000

Major Metro Rent Ratio Avgs


SFR Rental San Jose vs. DFWSan Jose$600,000

$2000 Rent(.33% Ratio)


DFW

6 X $100,000 = $600,000

6 X $1000 Rent

$6000 Rent

(1% Ratio, X300%!)

Cash Flow = Income - Expenses


� Economic Conditions� Vacancy –� Physical vs.

Financial� Skips / Turnovers

� Demographics� Turnover Rate� Advertising & Lease

up fees

� Product Condition� Product Age� Maintenance &

Make Ready Costs� Property

Management


Future Performance & Risk Indicators

�Location & Demographics�Historical & Projected Home Prices �Employment Growth & Diversity�Population Growth�Historical & Projected Rents &

Occupancy�Negative Equity & Foreclosures�Government Stability & Intervention


Selecting

Dallas/Ft.Worth

A Region


Centrally Located

PricesHistorical & Projected



Bruce Norris – Market Timing Expert

Market Direction Indicators•Historical Trends•Affordability Index•Inward Migration•Negative Equity



CA / FL / TX / USA Appreciation


Home Price Appreciation Map

HPI Home Price Change 2009-2010 by State


Case Shiller : MSA DeclinesL.VegasWorst Dallas

Best


Delinquency By State


Negative Equity 25% US, 35% CA


Texas vs US Foreclosure Rate

JobsEconomy

Dallas Job Growth Leader



Texas vs USA Employment Growth


DFW Fortune 500 Companies

Dallas 24 (San Jose 13)


3rd Busiest Airport in the World


More High Tech Jobs (220,000) than Austin/Houston Combined


Forbes # 1 City To Earn a Living


State Government Financial Stability


Cost of Living

Texas Independent from Grid


PopulationGrowth


Population Growth by MSA


Migration Paterns


DFW Population Growth


DFW Vacancy and Rent

Dallas / Ft.WorthEconomic Oasis

�Business Capital of the South�Highest Rent/Invested $ �Lowest risk housing market�Broad Based Economy�Employment & Population Growth

Leading US�Government Fiscally Strong �Rental Occupancies High�Most undervalued cities in US



Wilson Investment Properties Team

Home Office

SaratogaCa

Jody Knauf

Operations Manager

Tom Wilson

President & Founder

Weegi Wilson

VP & CFO

Joe Hernandez

Acquisitions & Sales Manager

Wilson Investment Properties Dallas

Wilson Investment PropertiesMission for Clients

�BEST CASH FLOW�LOWEST RISK & APPREICATION�PASSIVE


Wilson Investment PropertiesQuality

�Metro�Neighborhoods�Professional Team – investor experts�Product – newer, sound, rehab�Tenants�Service before and after the Sale



�Full Data Disclosure & Transparency�Fully Owned, not assigns or 3rd Party�Service after the Sale�Same Specs as Tom’s personal criteria


Wilson Investment PropertiesQuality Turnkey Low Risk

"Skin-in-the-Game" Resource for the

Highest Cash Flow Income Properties in the US


Product SpecificationsHighly Selective

�DFW mainstream metro: not rural, not inner city�Good neighborhoods and schools�Major employment, shopping and services

nearby �Strong rental markets�Between $90,000 and $140,000 �Rents 1.00% ratio or better� 3 & 4 bedroom, 2 & 3 bath, 2 car garage�All brick homes, Fully rehabbed, Structurally

sound �Built within past 25 years



Dallas/Ft Worth Metro


313 Woodrose Drive, Fort Worth


Estimated Income and Expenses


Public Records Data


Tax Bill


Parcel Map


Community Overview


School Overview


Current CMA


ROI Calculations


Wilson Investment Properties Rejects


Lower Risk, More Predictable ROI

A Little Added Value is Always Needed !


Before


After


Before


After



Wilson Investment Properties QualityPrice : $123,000

Rent : $1295 4/2.5/2Sq Ft : 2400

Year Built : 2005



Rent : $1325 4/2/2Sq Ft : 2085

Year Built : 1991



Rent : $1395 3/2/2Sq Ft : 1989

Year Built : 2002



Rent : $1050 3/2/2Sq Ft : 1444

Year Built : 1993

Client Testimonials"It has been such a pleasure doing business with yo u and your team.We've never had a real estate transaction go so smo othly as this oneand this was buying seven houses at one time.

You were extremely thorough and the follow up has b een anadded bonus. Your entire team was just a delight. Renee spenttwo days with us showing us around and took care of all thearrangements of meeting the lender, and property ma nagement companyand seeing all the houses. The entire team works s o well together andare so pleasant and competent. It's just been a pl easure.

We look forward to working with you again in the ne ar future."Sean & Laura H.

"Tom is friendly, knowledgeable, experienced and in credibly supportive.He is personally investing in the markets where he's selling and has beensuccessful doing so. Part of his business model is to make his clientssuccessful.

What more could you ask for?"-Tonnis & Susan W.


WIP 2011 RE Investing Conclusions�Cash Flow Now is King�Locate Best Cash Flow Lowest Risk

Region�Speculation for Appreciation is Risky –

Expect Long 5-20yr Recovery�Be Honest About True Cost of

Acquisition�Secure Experienced Team


WIP Investment ConclusionsThe Good News………!

Shadow Inventory & Government Intervention

Are Giving the Well Educated & Careful Investor

Great Opportunitieswww.tomwilsonproperties.com


“A crisis is a terrible thing to waste.”

Paul Romer, Senior Fellow at Stanford University


Highest Cash FlowTurnkey

Highest QualityLeased

Lowest RiskDon’t Reinvent the Wheel!


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