dallas presentation

Upload: jetventures

Post on 30-May-2018

217 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/14/2019 Dallas Presentation

    1/32

    DALLAS

    Presented By

    Texas Cash Cow

    Investments

  • 8/14/2019 Dallas Presentation

    2/32

    Why Invest In Dallas?

    Dallas is one of the only markets where

    you can still purchase a better than new

    home for under $140,000 and be in a

    positive cash flow situation.

    Dallas is still one of the most

    undervalued real estate markets

    in the nation.

    Dallas continues to remain among the

    leaders the United States in

    employment and population growthdespite the overall economic state of

    the nation.

  • 8/14/2019 Dallas Presentation

    3/32

    Why do people want to live in Dallas?

    Theres Americas Team The

    DallasMuseumofArt

    Texas State Fair

    Ran

    gersB

    aseb

    all

    StarsHo

    ckey

    And who could forget this guy

    Texas Motor Speedway

  • 8/14/2019 Dallas Presentation

    4/32

    THE EXPERTS AGREE ON TEXAS

    Texas Housing prices are holding up.27% of all US jobs created in 2008 were in Texas.

    Energy activity is strong and exports are decreasing.

    Mine Yucel / Federal Reserve Bank of Dallas

    5-year forecast for the Dallas Market 25% to 40% gain.

    Improving economy in the second half of 2008.Lawrence Yun, PhD / Chief Economist National Association of REALTORS

    Texas ranked No 1 in US job growth for 2008.

    Susan Combs / Texas Comptroller of Public Accounts

    Decline in housing starts is near the bottom.

    Favorable corporate profits and Oil prices are leveling out.

    Predicts economic recovery by early 2009.

    Mark Dotzour / Chief Economist Real Estate Center Texas A&M

  • 8/14/2019 Dallas Presentation

    5/32

    The most recent Case-Shiller data shows Dallas as the strongest housing marketof the top 20 markets!

    Wells Fargo Economics estimates that Dallas median home prices will increase

    3.0 percent in 2009!

    Median home price $143,000. Median Family income $90,000.

    Dallas/Ft Worth The local economy continues to show good relativeperformance compared to the rest of the country. Dallas Business Journal, March 2009

    The Dallas-Fort Worth market ranks second in a new survey of Americas Top100 Places to Live for 2009. RelocateAmerica.com

    Dallas ranked in the top 5 as most recession proof cities in AmericaFortune magazines April 29, 2008

    Dallas Real EstateInvesting Facts

  • 8/14/2019 Dallas Presentation

    6/32

    Dallas Real EstateInvesting Facts

    Overall cost of living is 7.06% below the national average!

    No state income tax!

    Unemployment rate in Dallas is below US average, 7.30 percent (U.S. avg. is 8.50%)

    Dallas home prices are defying the odds by growing,while other areas across the U.S. are experiencing significant home price declines Dallas-Plano-Irving area grew 1.23percent over the course of the past 12 national housing prices overall have fallen 12.2 percent in the 12-month period(Thursday, April 23, 2009 Dallas Business Journal)

    Dallas, Fort Worth Top Cities For Real Estate Investments (NBC Dallas-Fort Worth January 17,2009)

    52.55% of the DFW population rents, (National average is 28%)

    It's unlikely that we'll see fewer than 3 million U.S. households in foreclosure in2009. This amount of inventory, plus tax incentives and interest rates of 5.5 percent or less make the market a

    once-in-a-lifetime opportunity for people in a position to buy. RealtyTrac | Published: 1/01/2009

  • 8/14/2019 Dallas Presentation

    7/32

    me Prices Declining in Many Mark

  • 8/14/2019 Dallas Presentation

    8/32

    Texas Job Growth MuchFaster than U.S.

  • 8/14/2019 Dallas Presentation

    9/32

    Although Cooling, the Dallas Economyremains Hottest in the Nation

  • 8/14/2019 Dallas Presentation

    10/32

    TX Foreclosure Rate Stabilizing

  • 8/14/2019 Dallas Presentation

    11/32

    136 Cliff Heights

    $117,000 Sales Price20% Down Payment$526.00 First YearMonthly Cash Flow

    FOR SALE

  • 8/14/2019 Dallas Presentation

    12/32

    6229 Balcony Lane

    $113,000 Sales Price

    20% Down Payment

    $519.00 First Year

    Monthly Cash Flow

    FOR SALE

  • 8/14/2019 Dallas Presentation

    13/32

    1120 NE 5th Terrace

    $115,00020% Down Payment$516.00 First YearMonthly Cash Flow!

    For Sale

  • 8/14/2019 Dallas Presentation

    14/32

    Overview

    Purchase distressed real estate properties atfraction of value via cash sale.

    Appraisal of property is performed to ensure viableequity on investment.

    Improvements are performed on property tomaximize value.

    Property is leased at maximum market rate.

    Financing SECURED by in-house mortgage co.

    Property is sold to investor with guaranteed positivecash flow.

    Property management company in place for

    continued service and minimal effort on investorsbehalf.

  • 8/14/2019 Dallas Presentation

    15/32

    Business Cycle

    Improvements

    Lease

    Purchase

    Sold

    PropertyManagement

    Financing

  • 8/14/2019 Dallas Presentation

    16/32

    Business Model

    We have built relationships with individuals thatsupply foreclosure and pre-foreclosure lists prior tobeing released to the general public.

    Pricing is set at bottom dollar, no bidding, no cost tofinancial institutions for selling, advertising, etc.

    Deals are in cash only, immediate closings, whichfinancial institutions prefer.

    Proprietor also owns a construction and supplycompany which greatly decreases rehab cost, thus

    maximizing equity.

    Business Model is proven and functioning.

    Savings are passed along to customers.

  • 8/14/2019 Dallas Presentation

    17/32

  • 8/14/2019 Dallas Presentation

    18/32

    Why Purchase?

    Properties are in better than new condition.

    Properties are leased and cash flowing in most cases.

    Property Management Company in place.

    Direct contact with owners.

    One year home warranty included on every property.

    Construction company to help with future maintenance.

    Referral Program.

  • 8/14/2019 Dallas Presentation

    19/32

    INCENTIVE

    PROGRAMS1 year FREE property

    Management!

    Home Warranty with0 deductible for 1st

    year!

  • 8/14/2019 Dallas Presentation

    20/32

    In-House MortgageProgram

    Providing Mortgage Lending Services since 1998.

    Dedicated and Committed to building relationships andproviding superior customer service.

    Specialized in financing investment properties.

    Thousands of California/Texas investment transactionscompleted.

    In-house funding, processing, underwriting and closing ofloans.

    Various products for primary and investment properties.

    FHA approved Lender.

    Average transaction can be completed within 10 days.

    Competitive rates.

  • 8/14/2019 Dallas Presentation

    21/32

    Economic Forecast

    Job growth in 5 sections oil and gas,

    construction, manufacturing, health andprofessional service jobs.

    Job growth is directly proportionate to thedemand for real estate.

    DFW area added 91,000 jobs in last twelvemonths.

    Interest rates are likely to stay at low levelsuntil the end of the year.

    Strong investment demand for real estate.

    DFW will lead the state in economicprosperity throughout next three decades.

  • 8/14/2019 Dallas Presentation

    22/32

    Texas Investments

    Fact:

    On a National Average,

    Dallas/Fort Worthranks #1 in highest

    rate of return forinvestors on rental

    properties.

  • 8/14/2019 Dallas Presentation

    23/32

    Why Be an Investor

    Most people spend their lives imprisoned by financialignorance. It shows in their faces and in theirattitudes, especially as they grow older. They beginto look like wild lions trapped in their cages, pacingback and forth while they mull over what happened

    to the life they once knew.

    \Robert T. Kiyosaki

    author Rich Dad Poor Dad

  • 8/14/2019 Dallas Presentation

    24/32

    Why Be an Investor

    Intelligent Real Estate Investing is probably thegreatest wealth creation vehicle of all time.

    Real Estate investing can be one of the most stable

    ways to generate passive and stable cash flow, so youcan retire. Technically speaking, to retire you need apassive income stream that will replace your current

    job or business income.

    Real Estate investing, when performed well, after goodeducation and good mentors, can provide that lowstress lifestyle many dream of having yet few achieve.

  • 8/14/2019 Dallas Presentation

    25/32

    Why should You becomea Real Estate Investor?

    5 of 6 people attribute financial success to real estate.

    Grow Net Worth: Increased Cash Flow.

    Reduction of liabilities and debt.

    Appreciation - Increase in the property value.

    Real Estate Investing is the Cornerstone of most multi-millionaires net worth, cash generation and cash flow.

    Tax Advantages.

    Minimal Investment, Maximum Profit. Allow tenant to pay off YOUR investment for you!

  • 8/14/2019 Dallas Presentation

    26/32

    FINANCING INVESTMENT

    PROPERTIES

  • 8/14/2019 Dallas Presentation

    27/32

    Investment PropertyFinancing

    Maximum number of loans allowedfor Investors

    As of February 6th, Fannie Maeannounced that as of March 1st

    they will open up the financing forInvestment properties back to 10total financed!

  • 8/14/2019 Dallas Presentation

    28/32

    Investment PropertyFinancing

    What type of loans are availablefor investors?

    30, 20, 15, Year Fixed Rates

    20 and 25 percent down options.

  • 8/14/2019 Dallas Presentation

    29/32

    Cash Flow/Profits

    Net operating incomeNet operating income

    minus debt serviceminus debt service

    equals net Cashequals net Cash

  • 8/14/2019 Dallas Presentation

    30/32

    Landlords/Management

    Companies

    Properly Managing yourProperly Managing your

    investment is the key to increasinginvestment is the key to increasing

    your bottom line and maximizingyour bottom line and maximizingPROFITSPROFITS..

  • 8/14/2019 Dallas Presentation

    31/32

    Landlords/ManagementCompanies

    What distinguishes a professional property manager from otherlandlords?

    They know all of the landlord/tenant laws for your city, state and federalgovernment.

    They know rent values, vacancy factors and time on the market in your area.

    They have rental application and consistent screening policies that meet all ofyour legal obligations.

    They take the time to perform thorough move-in/move-out written inspectionsand routine property inspections.

    They personally know reputable painters, electricians, roofers, etc who arelicensed, affordable and reliable.

    They effectively confront and negotiate with the tenant and enforce the termsof your rental agreement.

    They have the ability to recover NSF checks, evict tenants and collect baddebts.

  • 8/14/2019 Dallas Presentation

    32/32

    Landlords/ManagementCompanies

    For those investors who are considering self management.

    The first thing you should advise your investor is to thinktwice about managing their investment propertiesthemselves and consider using an experienced managementcompany.

    Most investors have a full time career and usually do nothave the time to baby-sit tenants. All it takes is one problem

    renter to convince them to use a professional.

    For those investors that insist on managing themselves, youas an agent can also help them with finding a renter for theirproperty. You can list the property in MLS.

    If they do not want to use your services, remind them of therates for cost of advertising and if house isnt rented money