1. Real Estate Opportunities for Teamsters Local 731 Jim Mackey 847-724-9200 jim@americanvisionllc.com

2. Why Real Estate? Secure Investment –Doesn’t carry the risk of the securities market Long Term Growth Steady income/ cash flow Appreciation Accrual Asset you can Leverage Ability to defer Capital Gains Taxes

3. Types of Investment 1.Interest Investor 1.Cash investment earns set interest rate 2.Accrued interest over investment term 2.Sole Ownership 3.LLC Partnership

4. Interest Investment Investment Earns –Fixed APR (5-6%) –Accrual Balance accrues 5- 6% over investment term Term is 5-10 years depending upon type of financing Total Earnings –Approximately 12- 13% Return

5. Interest Investment Example

6. Pros and Cons Pros –Similar to bank –Return fixed –Risk protected by shares in LLC –No Mgmt Responsibility –No Mortgage Liability Cons –No appreciation –No tax protection –Unable to defer tax –No Asset

7. Sole Ownership 100% Ownership –Responsible for: Management Leasing Maintenance Marketing Tennant Issues Financing

8. Cash Flow Example

9. Pros vs. Cons Pros –100% Appreciation –100% Cash Flow –Total Control of … Negotiations Tenant Selection Financing Cons –Total Management Responsibility –All Maintenance –Marketing –Tenant issues –Mortgage Liability –You’re in the Real Estate business!

10. LLC Partnership Fractional Ownership –Share in portion of appreciation –Share in portion of cash flow –No management responsibility –No maintenance issues –Investment protected by Limited Liability Corporation Shares

11. LLC Cash Flow Example

12. LLC Cash Flow Example 2