SWFL REO Opportunity Executive Summary During the economic

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SWFL REO Opportunity Executive Summary
During the economic/real estate boom, which occurred during 2004 through 2006, SWFL was
the #1 ranked market in the country for real estate growth and appreciation. During this time
the area was also ranked in the top 3 in the country for economic growth and # 1 in the nation
for population growth. With the national rankings of the area came the investors. The area
exploded and was averaging over 100 investor pre-construction purchases per month. This
investor explosion lead to an investor driven accelerated appreciation. While a large percentage
of investors made substantial profits, there was a large quantity who bought at the peak of the
boom as the real estate downturn began to occur. History has proven investors who buy at the
peak bought at the investor driven max price point, which must go through a correction. This
correction took values from over $350,000 for a multi-family duplex to a current price point of
$85,000. Now the true investors are coming to the market and buying these properties in
quantities at the bottom pricing. These prices only have one way to go and that is up. The price
per square foot acquisition costs are around $30/square foot to $50/square foot, which
provides phenomenal growth potential and positive cash flow. Reproduction cost of a similar
real estate product is at least $90/per square foot.
With the above said we saw this trend occurring over the last 12 months and have been
diligently creating a true hassle-free investor opportunity to capitalize on current market
conditions focused on providing instantaneous equity with positive cash flow. This diligence
includes:
Forming an all encompassing Rehabilitation firm to perform minimal re-hab work on the
properties to bring them to like new condition
management of each investor property at a negotiated discount
large supply of the current REO inventory
on investment
Our identified target specific areas are ideal for these property types. These locations are
strategically located within minutes to the new SWFL International Airport, World renowned
Southwest Florida Beaches and the historic Downtown Fort Myers, which is currently going
through a $60 Million Dollar Revitalization thus making the area very desirable. One of the
most crucial keys to making this opportunity a success is the re-habilitation. While these
properties are fairly new being built from 2004 and up, they have been lived in. Primarily these
properties were leased to renters over the years. As we all know renters may potentially cause
wear to the property. We want to make sure these homes are in “like new” condition. The goal
is to maximize the results and quality while minimizing the costs for each property.
As we are representing investors throughout the world it is absolutely essential to make this
investment opportunity as hassle-free as possible. We have established a relationship with a
proven well-respected SWFL property management firm to handle the management of each
investor property at a negotiated discount. This firm specializes in managing these property
types within are target areas. With the overabundance of short sales and foreclosures there is a
large local population that is unable to purchase a home and is looking to rent. What is even
better is a large percentage is looking to lease with the option to purchase. During their rental
term they will be working on repairing their credit with the option to purchase the property at
the rental lease term.
To handle the required volume of inventory for our investors we have worked to create
exclusive relationships with several financial institutions and private holding companies that are
in control of large quantities of these REO properties. Through these relationships we have
successfully negotiated bulk purchase opportunities at very strong market value discounts. By
going direct to the institutions we can avoid competing on the open market and more
importantly we can supply the bulk volume requests coming from our investment groups.
As the available supply continues to be absorbed the market will transition from a buyer to a
sellers market. As investors are buying at bottom prices, prices only have one way to go and
that is up. SWFL is still a growing emerging market. The area has been growing consistently
from a population perspective over the last 5 years and economist are projecting continued
growth throughout 2025.. Now is the time to take advantage of this unique opportunity in the
#1 Foreclosure Capital in the United States.
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