Mississippi Gulf Coast Preconstruction Opportunity

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Mississippi Gulf CoastPreconstruction Opportunity
..

• Said to be the most POWERFUL investment
  opportunity in real estate history.
• Go Zone Bonus Tax Depreciation of 50
• MDA Small Rental Assistance Program
• Receive 36,500 PER DOOR UP FRONT Possibly Coming
  Soon as future incentive.

Royalty Homes
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Why Build In Mississippi?
According to the local power company, it is
expected that 80,000 affordable rental units are
needed within the next 3 years.
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Go Zone Opportunity

• Allows for investors to accelerate the
  depreciation of their home an ADDITIONAL 50 just
  after the FIRST year of ownership.
• Deduct up to 60,000 for SFR and 110,000 for
  duplex off your annual income taxes.
• Net Operating Loss Rule states that you may use
  this depreciation and carry it back 5 years or
  forward up to 15 years.
• If strategically purchased, investors may
  eliminate income taxes for years to come by
  purchasing real estate in the designated areas.
• Extended to December 31, 2010 in only 4 counties.

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• CASINOS
• Expected to be second largest gaming industry by
  2010
• Approx 40,000 construction employees
• 3,000 average permanent jobs per casino good for
  future resale
• Jimmy Buffet Margaritaville Just broke ground
  (HUGE Casino)

• Subdivision just 3 miles from Silver Slipper
  Casino on the Gulf
• Our plan is to build over 500 units within 30
  minutes of all casinos.
• Construction worker tenants are abundant
• Trade businesses are a heavy part of the
  demographic

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NASA Hancock MedicalExample of Local
Businesses in expansion

• Employs thousands
• Boeing, Rolls Royce, NASA Employ
• Need for over thousands new employees
• Buffer zone takes 33 of Hancock County making
  supply less and demand more for housing

• Over 600 Employed
• Need for hundreds more
• Only hospital in service post Katrina
• The need for new employees is desparate
• National recruiters in place

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There are still 20,000 living in temporary
housing. If you have seen the news lately, FEMA
is going to start requiring alternate and more
permanent housing. New construction is a
priority.

• Rental Rates of no more than 1000 will be
  desparately needed
• WE HAVE THE SOLUTION!

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DUPLEX235,900Less than 10 Down1140 sq.
ft per side3 bed 2 bath per sideMost Recent
Appraisal 253,0004 Car Covered Parking Area
adds to valueWe have actual pictures of past
built units, however we have revised our plans to
look like the rendering.
Most affordable in area

• We elevate the duplex to FEMAs Advised Base
  Flood Elevation
• Built in 60 days
• Go Green! Saves on Energy Costs
• 140 mph wind rating
• Open and Spacious floorplan specifically designed
  for Hancock Cty.

Bulletproof Investing
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l
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• Elevated to Advised Base Flood Elevation
• REQUIRED for any future incentives
• FEMA Friendly Insurance Friendly

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Single Family 139,900 land includedLess
than 10 Down for approx. even cash flow1400
sq. ft3 Bed 2 BathMost Recent Appraisal
155,000
Documented on Discovery Channel as best design
for coast!

• We elevate the home to FEMAs Advised Base Flood
  Elevation
• Built in 45 days
• Go Green! Saves on Energy Costs
• 150 mph wind rating
• Open and Spacious floorplan specifically designed
  for Hancock Cty.

Bulletproof Investing
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Ur
Additional Pictures
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Why is everyone building in Bayside Park?

• Highest ground elevation in the county.
• South Hancock Elementary is being built to open
  next school season. 84000 sq. ft. facility on
  the backside of Bayside Park.
• Less than 5 minutes to Gulf of Mexico beaches and
  less than 5 minutes to the Silver Slipper casino
  and 10 minutes from the Hollywood Casino.
• Located 25 minutes from Biloxi and 45 minutes
  from New Orleans

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Why Build Elevated?

• FEMA has revised the floodmaps and has named the
  new suggested floor elevation as the Advised Base
  Flood Elevation (www.FEMA.org)
• Likely to be adopted by the entire gulf coast
• Not complying will likely create high future
  insurance premiums and limited exit strategy and
  re-sale
• If you have seen builders advertising building on
  slab, they are either ignoring this or not
  educated on the ABFE.
• Also, when doing site built construction, it
  DOUBLES their labor cost for framing, therefore
  do not want to build elevated!! WARNING Do
  not build with slab builders if your property is
  anywhere south of Interstate 10 !! There is no
  justifiable excuse!
• Local officials are pleading with builders to
  build to ABFE standards. We are one of the first
  to comply as we see the future benefits

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Duplex Rental Property
Duplex Purchase Price 235,900 Closing Costs
8000 Down Payment 25,000 /- Monthly PI
Payment 1,500 Taxes/Insurance
350 Property Mgmt 150 Monthly Oper.
Exp 2,000 Monthly Rent
2,100 Cash Flow 100
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Go Zone Incentive
Purchase Price 235,900 Land Value 20,000
/- Depreciable Amount 219,900 50
Bonus 109,950 Typical Annual
Appreciation 8,000 /- Total Depreciation
117,950 25 Tax Bracket Savings 29,487
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MDA Small Rental Assistance ProgramPossibly
coming soon !If Applied and Approved 73,000
Forgivable Loan issued at C of Oas Rent Subsidy
Monthly Operating Expenses 2,050 Unit A Rented
at 80 AMI 736 (net) Unit B Rented at 120
AMI 1050 (net) Total Monthly Rent 1,786 Nega
tive Cash Flow (monthly) 264 MDA Funds Issued
at C of O 73,000 Must hold duplex for 5
years Negative Cash Flow 5 Years 15,840 Vacancy
5,000 Total Negative Cash 20,840 Leftove
r MDA Funds 73,000 (upfront)
-20,840 (neg. cash) Total 52,160