Preleased Duplex Presentation Web

Turn-Key Positive Cash Flow

Real Estate Investments

Presenting:

NEW CONSTRUCTION PRE-LEASED DUPLEX HOMES IN

FORT SMITH, ARKANSAS

PRESENTER / SELLING AGENT:

Chris Runyan ~ Keller Williams Realty of NWA•Member Arkansas, National, & Local REALTOR Assoc.•8 Years Investment Property Experience•Lifelong Arkansas Resident•Over $20 Million in Transactions to Out of State Buyers

TONIGHT’S GOALS

YOU WILL LEARN ABOUT:

THE GREATER FORT SMITH ARKANSAS REGION

THE FUTURE OF THE REGION

WHY THE TIME IS RIGHT FOR: PRE-LEASED POSITIVE CASH FLOW PROPERTY

Why the area is a safe haven for real estate investors

What Makes a Great Area to Own Property?

• Population Growth

= • Increased Housing Demand

= • Less Available Land

= • Increase in Property Values


Why Does Population Grow?

•JOBS!

• Desirable Climate

• Educational Opportunities

• Recreation

• Affordable Living

• Medical Facilities

= HIGH QUALITY OF LIFE

DEFINING THE REGION

CENTRALIZED LOCATIONWHERE IS? FORT SMITH, ARKANSAS

HIGH QUALITY OF LIFE

WHAT DEFINES REGION TODAY?

DEFINING THE REGION

•LOW COST OF LIVING ~ 26% BELOW NATIONAL AVG.FORBES RECENTLY RANKED #1

•AFFORDABLE HOUSING ~ $176K AVG.

•RANKED #6 INCOME GROWTH IN US~FORBES



•AVERAGE COMMUTE ONLY 18 MINUTES US AVERAGE OF 28 MINUTES

DEFINING THE REGION

•DESIRABLE CLIMATE ~ 200 DAYS OF SUNSHINE74 AVG HIGH – 44 AVG LOW

•ABUNDANCE OF OUTDOOR RECREATIONSURROUNDED BY OZARK & OUACHITA MOUNTAIN RANGES


DEFINING THE REGION

•NEW 4 YEAR UNIVERSITYThe University of Arkansas-Fort Smith

•REGIONAL HUB for MEDICAL SERVICES

•ACTIVE MILITARY TRAINING BASE


PRO-BUSINESS ENVIRONMENT


•#6 LOW COST OF DOING

BUSINESS IN US~FORBES

•TOP 25 SMALL CITY FOR

DOING BUSINESS~ INC MAGAZINE

DEFINING THE REGION

TOP MAJOR EMPLOYERSArkansas Best Freight – 1,000

Sparks Medical – 2,150

St. Edwards Medical – 1,800

Baldor Electric – 1,800

Whirlpool Corporation – 3,000

University of Arkansas-Fort Smith – 800

Rheem Air – 1,800

OK Industries – 4,800

DEFINING THE ECONOMY ~ JOBS

DEFINING THE REGION

http://pma.sparks.org/sparkslogo.gif

•CURRENTLY HIGHEST ACTIVE LABOR FORCE EVER

•CURRENTLY HIGHEST EMPLOYMENT EVER

•4.5% UNEMPLOYMENT ~ US AVG 5%

•PROJECTED TO ADD OVER 10,000 NEW JOBS NEXT 6 YEARS~ARKANSAS DEPARTMENT OF LABOR

THE ECONOMY ~ GOOD NEWS!

•DISCOVERY OF FAYETTEVILLE SHALE-NATURAL GAS RESERVE

DEFINING THE REGION

•$100 MILLION IN ADDITIONAL DOWNTOWN INVESTMENTS

•7 NEW MANUFACTURING PLANT ANNOUNCEMENTS IN THE LAST 6 MONTHS

DEFINING THE REGION

•I-49 PLANNEDCONNECTING CHICAGO & CANADA TO GULF OF MEXICO AND MEXICO

•10,000 NEW RESIDENTS IN LAST 18 MONTHS

THE ECONOMY ~ GOOD NEWS!

THE FORT SMITH ARKANSAS REGION

DEFINING THE REGION

A Safe Haven for Real Estate Investors..

•STEADY AND PREDICTABLE

Buy Property Here If You Desire:

•5% Vacancy RateFort Smith Property Managers Association – 4QTR 07

•HIGH OCCUPANCY

•5-7% APPRECIATION ANNUALLY(OFHEO)•40% of Population Rents

•SUBPRIME WOES

•RENTAL MARKET WILL CONTINUE TO THRIVE

DEFINING THE FUTURE HOUSING

•LESS PEOPLE CAN AFFORD TO BUY HOMES

•CHANGING LENDING REQUIREMENTSMORE MONEY OUT OF POCKET TO OWN HOME

•JOB GROWTH = HOUSING DEMAND

DEFINING THE REGION


POPULATION GROWTH!

•JOBS!

• Desirable Climate

• Educational Opportunities

• Recreation

• Affordable Living

• Medical Facilities

= THE FORT SMITH REGION!

What Makes a Great Property to BUY?

• High Occupancy or Tenants In Place

+ • Low Maintenance

+ • Location

+ • Experienced Property Management

+ POSITIVE CASH FLOW +

+ SELLER INCENTIVES +

+ DISCOUNTS +

THE TIMING IS RIGHTINVESTMENT OPPORTUNITY

TURN-KEY

NEW CONSTRUCTION

PRE-LEASED DUPLEX HOMES

WITH POSITIVE CASH FLOW

INVESTMENT OPPORTUNITY

BUILDER/DEVELOPER

•30 YEARS EXPERIENCE IN MARKET

•DANNY MEADOWS CONSTRUCTION

•PROVEN TRACK RECORD

•HANDS ON BUILDER


NEW CONSTRUCTION PRE-LEASED DUPLEXES

TENANTS LOVE ‘EM!

•LAWN MAINTENANCE PROVIDED

•NEAR JOBS, SHOPPING, ENTERTAINMENT, & SCHOOLS

•SUBDIVISION LOCATED AMONG NEW SINGLE FAMILY HOMES

•TRIED AND TESTED LARGE FLOOR PLANS

•FENCED-IN BACKYARDS

•LESS RENTS PER MONTH BUT SAME BENEFITS OF HOME RENTAL


NEW CONSTRUCTION PRE-LEASED DUPLEXES

INVESTORS LOVE ‘EM!

•POSITIVE CASH FLOW WITH 10% DOWN

•DESIGNED FOR LOW MAINTENANCE COSTS

•NEW CONSTRUCTION(2007 OR NEWER)

•TURN-KEY OWNERSHIPPRE-LEASED

BUILDER ALSO OWNS PROPERTY MANAGEMENTEASY TO HANDLE WARRANTY ITEMS & MAINTENANCE NEEDS

•10% UNDER APPRAISED & SELLER INCENTIVES


SOUTH MEADOWS ESTATES


SOUTH MEADOWS ESTATESAMENITIES

•80% BRICK

•FULLY SODDED & LANDSCAPED

•2 CAR GARAGES

•PRIVACY FENCED

•DISHWASHER, STOVE & RANGE, MICROWAVE, BLINDS INCLUDED


SOUTH MEADOWS ESTATES3 FLOOR PLANS

•2,600-2,900 SQ FT

•(2) 3 BEDROOM 2 BATH 2 CAR GARAGE UNITS (2,600-2,800 SQ FT)

•(2) 2 BEDROOM 2 BATH 2 CAR GARAGE UNITS (2,600 SQ FT)

•HYBRID (1) 3 BEDROOM 2 BATH 2 CAR GARAGE UNIT AND (1) 2 BEDROOM 2 BATH 2 CAR GARAGE UNIT (2,900 SQ FT)


SOUTH MEADOWS

ESTATES DUPLEXES

LOCATION

LOCATION

LOCATION



SELLER INCENTIVES

•SELLER PAYS 2% OF PURCHASE PRICE •DISCOUNTED PROPERTY MANAGEMENT

•DISCOUNTED 10% OFF RECENT APPRAISALS ($20,000)•ONE YEAR BUILDER’S WARRANTY


SOUTH MEADOWS ESTATESFINANCIAL PROFORMA – 6 BEDROOM PLAN

PURCHASE PRICE

$198,500

DOWN PAYMENT 10%

$19,850

TOTAL FINANCED

$178,650



DEBT SERVICE

10% DOWN, 30 YEAR FIXED,10 YEARS I/O,

SELLER PAID 2PT BUYDOWN

INTEREST RATE AS OF 5/18/2008 = 6.375%

MONTHLY PAYMENT ESTIMATE:

$1,374 INCLUDES MI

FINANCIAL PROFORMA – 6 BEDROOM PLAN


SOUTH MEADOWS ESTATESFINANCIAL PROFORMA

ESTIMATED EXPENSESTAXES $150 /MOINSURANCE $50 /MOMANAGEMENT FEES $95 /MO

TOTAL EST. EXPENSES $1374/MO

ACTUAL GROSS RENTS $1,590 /MO

DEBT SERVICE $1079 /MO

TOTAL ESTIMATED EXPENSES $1374 /MO

MINUS

ESTIMATED AFTER TAX CASH FLOW +$523/MO

ESTIMATED CASH FLOW +$216/MO


SOUTH MEADOWS ESTATESFINANCIAL PROFORMA

GROSS ANNUAL RENTS

$19,080

ANNUAL ESTIMATED NET INCOME BEFORE TAXES

$2,592

IN SUMMARY

FORT SMITH IS A GREAT AREA TO INVEST IN

SOUTH MEADOWS ESTATES ARE A GREAT PROPERTY TO OWN

THE TIMING IS RIGHT


WHAT IS NEXT?

•CALL NREI CLUB AT 925-846-2582 or

•EMAIL NREI CLUB AT

[email protected]

•REFERENCE: FORT SMITH DUPLEXES

First Come, First Serve Basis

TO RESERVE:

Preleased Duplex Presentation Web

Economy & Finance

Transcript of Preleased Duplex Presentation Web