positive cash flow emerging market

PRESENTS:
POSITIVE CASH FLOW EMERGING MARKET
Affordable Workforce Housing in Panama City, Florida with
Exclusive Stated Financing
For More Info Contact www.cozzarealtygroup.com
©2008 Cozza Realty Group, Inc.
866.720.1200 – Email [email protected]
NORTH FLORIDA
AFFORDABLE HOUSING
INVEST IN AN IMMEDIATE EQUITY, WEALTHBUILDING, AFFORDABLE HOME
Potential ROI 202%!!!
I NVESTOR O PPORTUNITY
Instantaneous Equity
of at least 10%
Positive Cash Flow
Vacant Developer
Leaseback
Limited Supply of
Affordable Housing
Lease Option Strategy
72% Projected Gain in
Home Prices over the
next 5 years *CNN Money
I NVESTOR I NCENTIVES
Builder pays ALL
Closing Costs
Construction Interest
Paid by Builder
ZERO carrying costs
during construction
(2-3 mos) and after (12
mos)
Rent-ready single
family home in sunny
North Florida where
demand outweighs
supply
W HERE IN
N ORTH F LORIDA ?
W HY P ANAMA C ITY AND ITS
S URROUNDING A REAS ?
CNN Money named Panama City Beach & surrounding
areas “The #1 Real Estate Spot in the US!”
Panama City was recently ranked #1 city for where to
buy now.
“Panama City is an economy waiting to break out,” says
Steven Cochrane, Chief Regional Economist for Moody’s
Economy.com
W HY P ANAMA C ITY AND ITS
S URROUNDING A REAS ?
Other Factors increasing demand:
Property prices are still low by Florida standards
The local market has already absorbed a price
correction after peaking last year
72% Projected gain in home prices (5-year)*
*Source CNN MONEY
Top 10 cities: Where to buy now
The real estate slump could get worse before it gets
better. Business 2.0 Magazine, in its November 2006
issue, identifies 10 markets that offer great opportunities
for those who have the patience to buy and hold.
1. Panama City, FL
72%
Projected gain in home prices (5-year)*
Median home price
2006: $223,000
2011: $383,000
Population
2006: 166,000
2011: 187,000
Per capita income
2006: $31,000
2011: $40,200
A small city needs one of two things to jack up housing demand: more people or wealthier people. Unlike the rest of Florida,
Panama City hasn't really attracted either, mainly because it's isolated on Florida's panhandle.
The interstate highway system bypasses it, and the runway at the local airport isn't long enough to support anything beyond
regional jets. But now Panama City is poised to host big airliners, more visitors - and a lot more buyers.
State and local governments and a top regional developer, St. Joe Co., are planning to build a new airport by 2008 at a cost of
more than $300 million. Locals expect the new facility to open up the region the way Southwest Florida International Airport in Fort
Myers helped drive a housing boom along Florida's southwestern coast in the 1980s.
"Panama City is an economy waiting to break out," says Steven Cochrane, chief regional economist for Moody's Economy.com.
Other factors increasing demand: Property prices are still low by Florida standards, and the local market has already absorbed a
price correction after peaking last year.
Janet Roan, a Century 21 agent in Panama City, notes that two-bedroom beachfront condos are going for as little as $330,000 down by more than $100,000 from 2005.
AREA INFORMATION
The New Tri-County Panama
City International Airport
$300 million dollar project
Expected to do for Panama City what
RSW did economically for SW
FL in
the 1980s
Existing International airport 20-30
min away from Sunny Hills
Will be larger than ATL HartsfieldJackson International
Built by St. Joe Corp. – developers of
high-end, upscale
communities
AREA INFORMATION
Tyndall Air Force Base
1 mile SE from Panama City
Constructed in 1941, Tyndall AFB covers over 28,000 acres
Primary base missions:
Train F-15 fighter pilots and weapons system controllers
AF Research Laboratory’s Materials and Manufacturing Directorate
Currently over 3,000 people and 650 families reside on/around the base
Base is set to expand in the near future
Erik Estrada - NRPI
AREA INFORMATION
National Recreational
properties (NRPI)
Largest land marketing
company in the US
NRPI has already allocated $1.5
million marketing dollars for their
Sunny Hills Project opening 1st
Quarter 2009
Infomercial & photo shoot with
NRPI already has 5 sites selling Erik Estrada currently in
projects in:
progress
Hot Springs, AR
Tellico Lakes Village, TN
North Port, FL
Palm Bay, FL
THE AFFORDABLE HOMES
DEVELOPMENT
Sunny Hills
SUNNY HILLS
A Deed Restricted Community
18,000 Acres – Spring-fed Lakes
20,000 entitled lots in Master
Planned Subdivision
-acre lots (minimum) AVG size
is 80’ x 130’
Located just outside Sunny Hills
Golf & Country Club
which features:
Professional, 27-hole golf course
Nearest course over 20 miles away
Surrounding area greens fees
double the price
SUNNY HILLS
ONLY development already
completed able to sustain
anticipated area growth
Another development of
similar scope would require
3-5 years to gain DRI*
approval
Sunny Hills is
“grandfathered” into the
county DRI* because it was
approved in the late 1970s
•(DRI) Developmental Regional Impact Study
Madison Model
Specs
4 Bedroom
2 Bath
Garage
Approx 1501 Sq Ft
Madison Model
Developer Info
• Commercial/Residential/
Industrial
• Combined 70+ years experience
• Over 10,000 Units all over the
Country
• ALL Construction MEETS/
EXCEEDS Local Hurricane Codes
• Delray Beach, FL
• Lake Buena Vista
• Pembroke Pines, FL
• Daytona Beach
• Orlando, FL
• Omaha, NB
• Winston-Salem NC
• Coral Springs, FL
• Austin, TX
• San Antonio, TX
WHY AFFORDABLE HOUSING?
Significant
growth forecast for North Florida
Local economists: Affordable housing
market represents an excellent area to
place
investment dollars for the next 5 to
7 years
Your investment dollars will be at “ground
level” of a tremendous projected growth
cycle
ECONOMIC BOOM
LOCAL JOBS
CREATED OVER THE NEXT
6
YEARS
Pier Park – 4,400 jobs over 2 years
Bay County International Airport – TBD
Lewis Bear Distributors – 400 jobs over 2 years
Proposed Olympic Aquatic Training Center
Eco Lifestyle Homes – 800 jobs over 6 years
Project Pipe – 140 jobs this year
Country Cross Roads – 33,000 jobs over 5 years
•Source – The Chamber of Commerce – Chipley
ECONOMIC BOOM
THE BOTTOM LINE
The Florida Affordable Housing
Commission stated there is a
significant demand for over 32,000
single family housing units in the
Panama City / Bay County
DEVELOPER LEASEBACK*
NO PAYMENTS until 12 months after completion!
Built in Equity is approximately 10% of sales price**
Build time is 2-3 months (No money out of pocket
during)
Developer leaseback covers 12 months of P.I.T.I
(principle, interest, taxes and insurance)
Vacant Developer Leaseback
You can work with our property management firm to rent
your property for PURE POS. CASH FLOW ($1100/
month)*
THE TIME TO BUILD YOUR PERSONAL NET WEALTH IS
NOW!
* Leaseback is an incentive provided by the developer directly to the client. CRG has no responsibility in this incentive whatsoever.
** All data based on present market value. NO expenses or gains are guaranteed
Factors Mitigating Risk
Instant Equity of 10%+*
14% Projected
Appreciation (according to
CNN Money)
5% Conservative
Appreciation
Developer Leaseback
Large demand for
affordable housing
with limited supply
*All figures are based off of market data
available. There is NO guarantee of returns
or costs
INVESTMENT OVERVIEW
SUNNY HILLS – PANAMA CITY – 2-YEAR ROI
PURCHASE INFO
Appraised Value
$ 195,000
Walk-In Equity
$ 12,000
Purchase Price
$ 183,000
10% Down (Interest Only)
$ 18,300
Loan Amount (90% LTV)
$ 164,700
ESTIMATED EXPENSES
Mortgage Interest (7.5%)
$ 24,720
($ 1030 / month)
Property Tax (24 months)
$ 3,195
(Yr-1 $450 / Yr-2 $2745)
Homeowner’s Insurance
$ 3,000
($ 125 / month)
Property Management (8%)
$ 2,024
(23 months)
Total Expenses
$ 32,939
*All figures are based off of market data available. There is NO guarantee of returns or costs
INVESTMENT OVERVIEW
SUNNY HILLS – PANAMA CITY – 2-YEAR ROI
PROJECTED INCOME
Guaranteed Leaseback
$ 13,000
Rental Income ($1100/mo)
$ 25,300
Total Income
$ 38,300
Total Pos. Cash Flow (24 mos)
$ 5,361
PROJECTED RESALE VALUE
Projected Resale Value (5%/yr)
$ 214,988
7% Seller Costs (commission)
( $15,049 )
Return Cash Out-of-Pocket
( $12,939 )
Loan Payoff
( $164,700 )
Tax Depreciation (34% tax bracket)
$ 3,783
NET Profit to Seller
$ 26,083
2 Year ROI:
202%
*All figures are based off of market data available. There is NO guarantee of returns or costs
FINANCING
NO MI
NO Credit Pull
NO Bull
FINANCING
• 7.5% Interest-only 3/1 ARM, with option to
extend for 3 more years
• Asset-based, NO Credit Check Conducted
• Need to show an additional 10% liquidity (All
Assets Verified)
• NO Mortgage Insurance
• No Pre-Pay penalty
• Stated Income OR Full Documentation OK
• Construction to Permanent Loan – One Time
Close
• Interest Reserve, No payments during
Construction
• Closing Costs are financed in the loan amount
HOW TO RESERVE THIS
OPPORTUNITY
1. Make out a $5000 Escrow Check payable to JPO Title
2. Fill Out Pre Qualification information Tonight
3. Developer will provide contract within 3-5 business
days
4. Prepare to be a proud owner of an Affordable Home in
North Florida
DISCLOSURE
AS WITH ANY REAL ESTATE OWNERSHIP, PRECONSTRUCTION PURCHASES INVOLVE A
SIGNIFICANT 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. COZZA INVESTMENT
GROUP, 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 COZZA INVESTMENT GROUP,INC WILL NOT BE
LIABLE FOR ANY LOSSES, CLAIMS OR DAMAGES ARISING OUT OF OR RELATED TO ANYSUCH
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 THOUGHAFFILIATES OF COZZA INVESTMENT GROUP, INC., AND/OR SOME OF
ITS AGENTS, AND COZZA INVESTMENT GROUP, 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 COZZA INVESTMENT GROUP, INC. FOR ANY
SERVICE OR PROPERTY WHICH MAY BE PROVIDEDBY ANY OTHER PERSON OR ENTITY, WHETHER
OR NOT AFFILIATED IN ANY MANNER WITH COZZA INVESTMENT GROUP, INC., EACH SUCH
PERSON OR ENTITY BEING SOLELY RESPONSIBLE FOR THEIR ORITS OWN ACTS AND OMISSIONS.
COZZA INVESTMENT GROUP, 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.
PRESENTS:
POSITIVE CASH FLOW EMERGING MARKET
Affordable Workforce Housing in Panama City, Florida with
Exclusive Stated Financing
For More Info Contact www.cozzarealtygroup.com
©2008 Cozza Realty Group, Inc.
866.720.1200 – Email [email protected]