Presentation on theme: "G ENERATE IMMEDIATE CASH FLOW WITH AN AFFORDABLE RENTAL PROPERTY."— Presentation transcript:
G ENERATE IMMEDIATE CASH FLOW WITH AN AFFORDABLE RENTAL PROPERTY
Contents 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
February 10 th 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 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 5% *Data Based on Market data at time of publication 06/09
Foreclosed Properties at 80% Below Original Prices SFR’s MFR’s Original Sale Price $295,000 $325,000 Investor Sales Price $ 70,000 $ 90,000 Approx. Investor Discount $230,000 $235,000 Approx % of Sales Price 80% 80% NOW IS THE TIME TO BUY!!!
Source: Wikipedia.org #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
SW FL Highest Percentage of Renters 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 Cape Coral properties available as well
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.
“Southwest Florida sees light at end of housing tunnel” http://news-press.com/article/20090614/RE/90613037/1076 “SWFL provides a substantial opportunity for true real estate investors” “Lee County is the #1 Market for Foreclosures” “I think we are at the bottom,” said Michael Reitmann, the executive vice president of the Lee Building Industry Association
Program Goal: To have qualified investors buy at bottom –level pricing & generate positive cash flow &asset appreciation with viable exit strategies in place
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
Source: http://www3.leegov.com/dcd/http://www3.leegov.com/dcd/ The number of permits issued in Lee County in 2009. During economic boom area averaged over 500 permits/month 42 From1/1/2009 to: 6/1/2009
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.
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
*the above photos are examples of typical foreclosed properties. Each property may vary Front Exterior Rear Exterior Master Bathroom Kitchen
Front Exterior w/1-Car Garage per Side Rear Exterior with Lanai and Fl Landscaping Interior w/ Tile Floor and Cathedral CeilingBathroom with Tub Shower Combo *the above photos are examples of typical foreclosed properties. Each property may vary
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
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!
The Realtor The Rehab Contractor The Property Manager
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 (based on $800/month) $ 9,600 Property Mgmt. Fee (10%) $ 960 Estimated Taxes & Insurance $ 1,500 Estimated Net Rental Income $ 7,140 *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.
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 (based on $700/month/side) $ 16,800 Property Mgmt. Fee (10%) $ 1,680 Estimated Taxes & Insurance $ 2,500 Estimated Net Rental Income $ 12,620 *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
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 Property Management
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 SWFL SECTION 8 HOUSING
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
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
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.
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