Transcript Slide 1

SW FLORIDA FORECLOSURE OPPORTUNITY
Properties @ 80% of Original Cost, While Supply Last!!!
GENERATE IMMEDIATE CASH FLOW WITH AN
AFFORDABLE RENTAL PROPERTY
Contents
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President Obama in SWFL
Area Vacancy Rates
Opportunity
Projected Cap Rates
Target Area Info
In the News
Program Overview
SWFL Foreclosure Market
Important Questions & Answers
Foreclosed Home Criteria
SFR and MFR Examples
Typical Rehab Work
Meet the Team
The Numbers
Property Management Team
Reservation Process
YOU MAY HAVE HEARD…
February
th
10
2009
President Obama visits Fort Myers, FL. An area
with the highest foreclosure rate in the whole
country. He remarks on the sluggish economy
and foreclosed homes sitting empty, more
than any other area in the country.
Perfect Opportunity for Investors!!!
AREA VACANCY RATES
5%
Area vacancy rates for property rentals are at
an all time low. While the economy remains
sluggish, thousands of people are looking for
quality, clean places to rent.
This same area is one of the most vibrant rental
markets in the country
*Data Based on Market data at time of publication 06/09
OPPORTUNITY
Foreclosed Properties at 80%
Below Original Prices
Original Sale Price
SFR’s
$295,000
MFR’s
$325,000
• Investor Sales Price
$ 70,000
$ 90,000
• Approx. Investor Discount
$230,000
$235,000
80%
80%
•
• Approx % of Sales Price
NOW IS THE TIME TO BUY!!!
TARGET AREA: LEE COUNTY
• #1 real estate market in country
during economic boom
• #1 foreclosure market in U.S.
• #2 county in country for
population growth by U.S. Census
• Forbes magazine ranked area top
county for New Businesses
• over 1,2oo sq. mi. in size
• Primary Areas:
 Fort Myers
 Cape Coral
 Lehigh Acres
Source: Wikipedia.org
TARGET SPECIFIC AREA: LEHIGH ACRES
Highest
Percentage
of Renters
SW FL
• Less then 10 minutes to Historic Downtown Fort Myers which is undergoing a
$60M Revitalization Plan
• Less then 15 minutes to world re-known Sanibel & Captiva Islands
• Less then 15 minutes from SW Florida International Airport
• Close proximity to Walmart, Target, Home Depot Lowes
LEE COUNTY HOME SALES
Reached bottom
Market watch
Num of foreclosures
Changes in depreciation
Inventory absorbed
Source: Lee County Court of Clerks
While existing
home sales are
still high, the
number of
foreclosures is
starting to drop,
creating a high
demand for
these properties.
IN THE NEWS
“Southwest Florida sees light at end of housing tunnel”
http://news-press.com/article/20090614/RE/90613037/1076
“I think we are at the bottom,” said Michael
Reitmann, the executive vice president of the
Lee Building Industry Association
“SWFL provides a substantial opportunity for
true real estate investors”
“Lee County is the #1 Market for
Foreclosures”
PROGRAM OVERVIEW
Over the past 2 years, SWFL has undergone
a massive, 80-90% real estate market
correction. Homes being sold for $300,000
are now on the foreclosure market for $65k
to $100k. This, combined with very low
vacancy rental rates presents a unique
“niche” investment opportunity for an
investor.
Program Goal:
To have qualified investors buy at
bottom –level pricing & generate
positive cash flow &asset
appreciation with viable exit
strategies in place
SWFL FORECLOSURE MARKET
• There is a dwindling surplus of
foreclosure properties in the area
• Pre-construction is at an all time low
• Existing properties are available at
80% below replacement cost
• Local economists state the market is
at bottom pricing
BUILDING PERMITS
42
The number of permits issued in
Lee County in 2009. During economic boom area
averaged over 500 permits/month
From1/1/2009 to: 6/1/2009
Source: http://www3.leegov.com/dcd/
THE IMPORTANT QUESTION
Q: “I’ve tried to get into the foreclosure
investment process before, but it seemed
pretty complicated. How is this different?”
A: We’ve organized a team of
professionals, each with their own role.
Realtors, Rehab Contractors, Property
Managers all work in sync to maximize
transparency and minimize your
concerns.
FORECLOSED HOME CRITERIA
• Direct from the Banks
• Built in 2003 or newer
• Meet current Hurricane Code Standards qualifying for
insurance incentives
• Located in close proximity to local shopping, beaches,
schools, etc…
• In habitable condition with minimal rehab work required
• All properties are inspected by experienced contractors
prior to being made available to investors
• Only less then 10% of properties viewed will meet our
criteria and be made available to our investors
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FORECLOSED
SFR EXAMPLE*
Front Exterior
Master Bathroom
*the above photos are examples of typical foreclosed properties. Each property may vary
Rear Exterior
Kitchen
FORECLOSED MFR EXAMPLE*
Front Exterior w/1-Car Garage per Side
Interior w/ Tile Floor and Cathedral Ceiling
*the above photos are examples of typical foreclosed properties. Each property may vary
Rear Exterior with Lanai and Fl Landscaping
Bathroom with Tub Shower Combo
TYPICAL RE-HAB WORK*
• All properties prior to becoming available are fully inspected
by our experienced rehab team
• Only the best properties are chosen
• Homes generally may require:
• minimum interior paint work
• professional interior cleaning
• minimum carpet replacement/refurbishment
• minor landscaping
• possible appliance replacement
• possible exterior a/c unit replacement
• Our experienced rehab team is able to minimize investor’s
rehab cost while bringing the home to “like-new” condition
• We know what rehab work will provide most profitable return
and premium rentals
WHY ISN’T EVERYONE DOING THIS?
• No one has direct access to the banks
• Foreclosed Properties Need Work!
• Almost no “Bank-Owned, Turnkey”
properties available
• Buying wholesale and refurbishing is
PROVEN to be the most cost effective
method to present-day home buying
• We have the best team assembled to
work for you!
MEET THE TEAM
 The Realtor
 The Rehab Contractor
 The Property Manager
MEET THE TEAM
 The Realtor
 The Rehab Contractor
The Property Manager
The Realtor is your first contact. He or she will
be your partner throughout the entire process.
MEET THE TEAM
 The Realtor
 The Rehab Contractor
The Property Manager
The Rehab Contractor makes your new
investment property like new within 1 month.
The pre-determined “No Hassle” contract price
is included in your investment package
MEET THE TEAM
 The Realtor
 The Rehab Contractor
The Property Manager
The Property Manager works with you in the
long-term. He or she places tenants, collects
rents, and takes care of the day-to-day upkeep
of your cash-flowing property.
YOU: THE INVESTOR
 Buying at bottom level pricing
 Realize growth potential of area
 Intention to “buy and hold” while
generating net positive cash flow
through rental income
 Savvy enough to see the great,
long-term potential of owning an
affordable rental home under
present market conditions
ESTIMATED NUMBERS
SINGLE FAMILY HOME
CASH PURCHASE EXAMPLE
Example Purchase Price
$ 70,000
Estimated Price Discount
(based on original sales price)
$230,000
Example Est. Rehab Costs
Built in
Total Out-of-Pocket Expense
$ 70,000
Estimated Gross Rental Income
$
9,600
Property Mgmt. Fee (10%)
$
960
Estimated Taxes & Insurance
$
1,500
Estimated Net Rental Income
$
7,140
(based on $800/month)
*Computations are based on a number of assumptions and are not a guaranteed result, but generated from factual data. All inclusive is the average price for
all-inclusive purchase, contract rehab, and property management. Profits and/or Expenses may be higher or lower depending on daily market conditions. Client
will be provided with all expense estimates prior to investing. All data presented is in no way intended to guarantee any result.
ESTIMATED NUMBERS
MULTI-FAMILY HOME
CASH PURCHASE EXAMPLE
Example Purchase Price
$ 90,000
Estimated Price Discount
(based on original sales price)
$235,000
Example Est. Rehab Costs
Included
Total Out-of-Pocket Expense
$ 90,000
Estimated Gross Rental Income
$ 16,800
Property Mgmt. Fee (10%)
$
1,680
Estimated Taxes & Insurance
$
2,500
Estimated Net Rental Income
$ 12,620
(based on $700/month/side)
*Computations are based on a number of assumptions and are not a guaranteed result, but generated from factual data. All inclusive is the average price for
all-inclusive purchase, contract rehab, and property management. Profits and/or Expenses may be higher or lower depending on daily market conditions. Client
will be provided with all expense estimates prior to investing. All data presented is in no way intended to guarantee any result.
SFR’s VS MFR’s
 Each property type will have its specific pros and cons
pending each investor’s scope
 SFR’s historically have appreciated a greater levels then
MFR’s
 When it comes to selling the property SFR’s will allow the
investor to expose their product to a wider demographic
 MFR’s provide stronger rental income by capturing dual
rental income versus single
 MFR’s are ideal for any investors diversified real estate
portfolio
 We recommend each investor per their capability to
strategically diversify and purchase SFR’s and MFR’s thus
maximizing their profit potential
Property Management
 Exclusive relationship with a top rated SWFL property
management firm
 Management company compiled of seasoned
management professionals
 Management company specializes in Lehigh Acres
rental properties
 They are directly affiliated with SWFL Section 8 Housing
Departments
 Management company specializes in lease-option
purchases
 We have negotiated a discounted management fee for
all of our investors to maximize each investors potential
cash flow
SWFL SECTION 8 HOUSING
•
Lee County has 1755 “section 8” vouchers.
•
The vouchers are issued to a qualified person/family to
utilize where they want to live
•
In order to get a section 8 renter, the house needs to be
inspected and verified sound by the Housing Authority
•
Most section 8 renters prefer SFH (these houses would be
perfect candidates for them)
•
Average monthly rent for a section 8 renter is $1000 for
SFR, $800-900 for MFR
•
Monthly rent checks go directly to owner/property
manager and come directly from the State of Florida
EXIT STRATEGIES

We will work with each client to execute the most strategic exit
strategy within each investor’s scope

We will develop a direct relationship with each client establishing
monthly meetings to review current market conditions

We specialize in assisting our clients to strategically use the profits
gained and re-invest those funds via a 1031 Exchange

1031 Exchanges allow each investor to offset the taxes on the
capital gains and more importantly allow investors to expand their
real estate portfolios and exponentially grow them throughout
each successful investment opportunity

Re-investing and growing your real estate portfolio allows you to
increase your net wealth to maximize your retirement future
WRAP IT UP
• The most important aspect of this investment is the
process. If rehabbing foreclosures was this easy
without this turnkey process, then everyone would
be doing it.
• We have negotiated volume discounts on every
required aspect of this opportunity.
• 100% Transparent process ensures your investment
confidence
• 100% Hassle Free Opportunity
• Experienced Property Management in Place
• Just Sit at Home and Collect your Monthly Rental Income
HOW DO I RESERVE A LUXURY HOME & TAKE ADVANTAGE
OF THE SPECIAL INCENTIVES??
1.
Complete the Reservation Form
2.
Make out a Reservation Deposit Check to Secure a Unit
3.
Select Your Specially Priced Foreclosed Property with your Sales Professional
4.
Sales Professional will Provide Purchase Contract for Execution
5.
Execute Purchase Contract along with Client Disclosure Forms
6.
Prepare to be a proud owner of a Luxury SW Florida Foreclosed Property
LEGAL DISCLOSURE
AS WITH ANY REAL ESTATE OWNERSHIP, PURCHASES INVOLVE A DEGREE OF RISK OF LOSS. REAL
ESTATE BY ITS NATURE IS ILLIQUID. RESULTS OF ANY REAL ESTATE INVESTMENT MAY BE AFFECTED BY
CHANGES IN MARKET AND ECONOMIC CONDITIONS. REAL ESTATE VALUES, NEW HOME
CONSTRUCTION COSTS, AND MORTGAGE RATES AND COSTS, ARE SUBJECT TO INCREASE AND
DECREASE OVER TIME, AND THE PRICES, TERMS, CONDITIONS, AVAILABILITY AND RESULTS
RELATING TO THIS OPPORTUNITY CANNOT BE ASSURED, AND ARE SUBJECT TO CHANGE ATANY
TIME WITHOUT NOTICE. Patagonia INC. OFFERS INFORMATION ABOUT THIRD PARTY SERVICES
WHICH WE BELIEVE CAN BE HELPFUL TO BUYERS IN RELATION TO THE OPPORTUNITY DESCRIBED IN
THIS PACKAGE AS A COURTESY. ANY RELATIONSHIP FORMED FOR SUCH SERVICES WILL BE SOLELY
BETWEEN THE BUYER AND THE THIRD PARTY PROVIDER, AND Patagonia WILL NOT BE LIABLE FOR
ANY LOSSES, CLAIMS OR DAMAGES ARISING OUT OF OR RELATED TO ANY SUCH RELATION. A
BUYER IS ENTITLED TO OBTAIN A LOT OR LOTS, NEW HOME CONSTRUCTION, MORTGAGE
FINANCING, AND ANY OTHER SERVICE OR RESOURCE, FOR USE IN THIS OPPORTUNITY THROUGH
ANY SOURCE WHICH THE BUYER MAY CHOOSE. CERTAIN SERVICES MAY BE OFFERED THOUGH
AFFILIATES OF Patagonia Inc, AND/OR SOME OF ITS AGENTS, AND Patagonia Inc, AND/OR ANY
SUCH AGENTS, MAY RECEIVE PAYMENTS OR CONSIDERATION THEREFORE WITHOUT SPECIFIC
DISCLOSURE TO A BUYER. NO REPRESENTATION OR WARRANTY IS GIVEN BY Patagonia Inc FOR
ANY SERVICE OR PROPERTY WHICH MAY BE PROVIDEDBY ANY OTHER PERSON OR ENTITY,
WHETHER OR NOT AFFILIATED IN ANY MANNER WITH Patagonia Inc, EACH SUCH PERSON OR
ENTITY BEING SOLELY RESPONSIBLE FOR THEIR ORITS OWN ACTS AND OMISSIONS. Patagonia Inc,
AND ITS AGENTS ARE LICENSED REALESTATE BROKERS IN THE STATE OF FLORIDA, AND MAY BE PAID
COMMISSION RELATED TO SOME OR ALLOF THE TRANSACTIONS RELATED TO THIS OPPORTUNITY IN
THEIR CAPACITY AS TRANSACTION BROKERS.