Emer Emerging Real Real Esta tate Ma Mark rkets
Who Who A Am m I Real Estate Investor & New Home Building Professional
Renovated Properties Redlands Creating Jobs and I m proving Com m unities
Who Who A Am m I Sports Nut…
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Who A Who Am m I Quite Side… Read Yoga Gardening The Voice
How I Got Started …Over 8 0 0 Hom es + 3 0 0 Flips Managed 2 ,0 0 0 Closings
How I Got Started
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The Sum m it
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3 Obje jective ives 1) Explain Emerging Markets 2) Discover Their Advantages 3) Take the Next Step
How How Thi This B Bene enefits Y You ou Typically Higher Returns IRA Savings Accounts CD’s Passive Cash Flow Equity Build Up No Management Responsibilities
Emer erging Ma g Marke ket A Real Estate Market that has the potential to appreciate very quickly during a three to five year period
Emer erging Ma g Marke kets Phoenix – Sun Mircosystems brings in 20,000 new jobs in the 1990’s, the market appreciates over 42% in the next three years Dallas – The Metroplex attracts over 120,000 new jobs between 2005 – 2008. The appreciates over 46% 2011 – 87,000 New Jobs Expected
Emer erging Ma g Marke kets Raleigh, North Carolina: Population- 423,179 as of 7/ 12/ 12 Household Formation- 2.3 per household Households Needed-183,990 Households as of 12/ 31/ 2011- 175,325 Shortfall-8,655
Emer erging Ma g Marke kets Raleigh, North Carolina: Units Under Construction 2012-5,273 Projected Population Growth 2012 to 2020- 423,179 to 510,175 (86,996) Housing Units Needed-37,824 at 2.3 Housing Units Projected-35,343 Wages- High Cost of Living-Low
Emer erging Ma g Marke kets Raleigh, North Carolina: Job Creation- 21,000 in 2012 Business Climate that offers incentives for creating jobs. R&D 1.5% to 3.5% Business property tax credit Low cost of living attracts employees- Housing, energy and health care
Hol oly y Grai rail Job Grow th
les Ma Mark rket C Cycle Seller’s Market I Seller’s Market II Buyer’s Market I Buyer’s Market II
Market Cycle SMI I BMI BMI SMI BI I
Market Cycle SMI I BMI BMI SMI BI I
Sel Seller M Mark arket Phas Phase One One Supply Dwindles Property Selling Fast Time on Market at Lowest Point Unemployment Low Property Prices and Rent Rising Demand at It’s Highest Point
Market Cycle SMI I BMI BMI SMI BI I
Market Cycle SMI I BMI BMI SMI BI I
Sel Seller M Mark arket Phas Phase Tw Tw o Time on Market Increases Supply Increases Seller Waiting but Still Get Inflated Prices Construction Pipeline Excessive Business and Job Growth Slow
Market Cycle SMI I BMI BMI SMI BI I
Market Cycle SMI I BMI BMI SMI BI I
Buy uyers M Mark arket Phas Phase One One Market Still Oversupplied Prices, Rents Falling Time on Market Increasing New Construction Stagnant Unemployment Reaches Height Foreclosures Rise Sharply
Market Cycle SMI I BMI BMI SMI BI I
Market Cycle SMI I BMI BMI SMI BI I Millionaire Maker!!
Buy uyers M Mark arket Phas Phase Tw Tw o Market Absorbs Oversupply Time on Mkt Decreases Job Growth Increases Existing Properties Rehabbed Rents begin to Slowly Increase Prices begin to Slowly Increase
Chara racte teri ristics of Good of Good M Mark arkets College Town State Capitals Big Box Retail Health Hub Strong Leadership Major interstates
Chara racte teri ristics of Good M of Good Mark arkets Airport w/ One Major Population 200,000 + Shopping Hub
Why Emer Why Emerging M Mark arkets Higher Than Average Returns Initially Not As Much Competition Trade Up Faster Invest Like the Institutions
Wha What A Are We re We Look Looking For For Micro Repositioning Multi-Family - Commercial B and C Properties 85 – 89% Occupied Lower Rents Minor Exterior Upgrades Minor Interior Upgrades
How How D Do o You ou Par Participate Equity Investor/Ownership Position Certificate Of Ownership Cash Flow Based On Ownership Percentage
How Is Your Investment Secured? Ownership – Certificate Cash Flow Property Insurance Title Insurance
How D How Do o You ou Par Participate Quarterly Disbursement of Cash Flow Appreciation at Re-sale Depreciation
Wha What C Coul ould Go Go Wron Wrong Can’t Lease Up Tenants Don’t Pay Rent Not Enough Cash Flow To Pay The Expenses Bad Management
Our R Role le Asset Management Monthly Reporting Executive Summary Profit and Loss Variance Report Quarterly Conference Calls Quarterly Cash Flow Disbursements
Your Role Read Reports Listen To Calls Ask Questions Cash Checks
How Do You Get Involved? Accredited Investor Form
Ques uesti tion and A and Ans nsw er w er
Taking the Next Step
OKC Multi-Family
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