Seminar

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Make The Best Real Estate Profit Riding On The Biggest Oil Boom!!

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Seminar (Draft)

Transcript of Seminar

Page 1: Seminar

Make The Best Real Estate Profit

Riding On The Biggest Oil Boom!!

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The Path Of Discovery

CONNECTION

SUMMIT

RESEARCH

OPPORTUNITY OF A LIFETIME

The Black Gold Rush Discovery

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The Path Of Discovery

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ABOUT EAGLE BRIDGE

EAGLE BRIDGE TEAMFOCUSED ON NORTH DAKOTA

CHINESE MARKET

MARKETING APPROACH

Unique Wholesale Representation

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Narrowing Down

Builder & Developer Screening

50 6 2

Attractiveness

Readiness

Retail Market

Reliability

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The Chosen Exclusive

• Property Horizon & Buffalo Hills• Danny Hogan & Scott Bocci

• The Mini Studios Single Family Homes

WINNERS!! 1: Best Project Award 2: Most Reliable Support 3: True Turnkey Operation

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$54,950 North Dakota Mini Hotel

Highest Rental Yields In The Nation

Largest Retail MarketInvestment On The Market (1000+ Units)

Permit Ready&True TurnkeyComplete Investment Package

TOO GOOD TO BE TRUE, BUT TRUE!!

Weakness1: Projected Income

2: 1st Commercial Project

Strength

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$244,900 North Dakota Mini Hotel

Highest Rental Yields For Brand New Homes

Developer Aggressive Involvement

Turnkey Investment

Rental Income Delivered

Complete Investment Package

TOO GOOD TO BE TRUE, BUT TRUE!!

StrengthWeakness1: Lower Rental Yields

2: Property Management

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Newspaper InterviewThe Epoch Time

• What about the single family project with Buffalo Hills Subdivision?• The sales of the Single Family Homes did not take off until mid April 2013 when one

of our agent visited the Buffalo Hills Subdivision in North Dakota, bringing back the 1st person confidence of what was happening in North Dakota. A weeks later, through word of mouth, 8 houses were purchased. Most of the buyers are bay area engineers, some even from China.

•We made National News a month later with the Baffulo Hills Project Pormotion!

•And Chinese investors are ready to pour in more than $2 million for a planned housing community called Buffalo Hills in the burgeoning town of Watford City 45 miles south of Williston, according to Donna Zhao, CEO of an investment firm in San Jose, Calif. Even more confidence “This new government report was huge news and gives confidence,” she said by telephone. “Things are catching fire, and we had $800,000 in commitments in one day from Chinese investors wanting to buy in as the news spread by word-of-mouth.” read article

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The Technology Create The Boom

Oil and gas production are near record levels as a result of hydraulic fracturing or fracking, a drilling technique that frees trapped hydrocarbons

by injecting water, sand and chemicals into shale rock.

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What Is Happening Now?

Unemployment level of 1% while the rest of the country is averaging around 8.5%. Ranked No. 1 for job growth

$1.4 billion in surplus in the state’s fund

2000 New Millionnaires are created yearly in North Dakota.

It is predicted that North Dakota will experience 40% growth in the next 2-3 years.

It is projected that this oil drilling boom will last 30 Years.

Average $80.000-$100,000 Annul Salary

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The Technology Create The Boom

Energy Independence Forecast by 2030

In 2012, the energy boom supported 2.1 million jobs, added almost $75 billion in federal and state

revenues, contributed $283 billion to the gross domestic product and lifted household income by more than $1,200, according to the report released today from IHS CERA.

The United States will overtake Saudi Arabia to become the world's biggest oil producer before 2020, and will be energy independent 10 years later, according to a new forecast- The International Energy Agency.

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The Biggest Oil Producer By 2020

Boom remakes US energy, economy

The International Energy Agency predicts the US will surpass Saudi Arabia to become the world's biggest oil producer by 2020 and that North America will be a

net exporter of oil around 2030.

The boom in 2012 added nearly 500,000 direct jobs. by research firm HIS

IHS estimates that in 2012, the industry generated nearly $75 billion in federal and state tax revenue and contributed $283 billion to the

US gross domestic product. These figures are expected to rise by 50 percent by 2020.

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Hong Long Will It Last?

1974 10 billion barrels estimated

2006 Bakken Oil Boom began

2008 U.S. Geological Survey estimated 3 billion to 4.3 billion barrels of oil

2010 Climbed to be the 4th in the nation

2012 The 2nd largest oil producer in the country after Texas APR2013 U.S. Geological Survey reported last week that more than 7 billion barrels

Others Estimate 100 Year Oil Play

According to some estimates, the Bakken boom might last for 100 years, and is being driven by new, breakthrough drilling technologies,

Leigh Price, a United States Geological Survey geochemist concluded 13 years ago that the Bakken might hold as much as 503 billion barrels of oil

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Hong Long Will It Last?

• A week ago: Continental Resources estimates 903 billion barrels of oil under the Bakken’s surface, an increase of 57% in less than three years.

A five-layer reservoir instead of two-layer reservoir

Potentially stretch the duration of the already massive Bakken play

Officials from the North Dakota Department of Mineral Resources and industry experts are finding the oil-producing cake to be deeper and more layered all the time.

"We expect our reserves and production to triple over the next five years." The U.S. is on path to overtake Saudi Arabia as the largest oil producer in 2017

No one is more responsible for that resurgence than Mr. Hamm, the president of Continental Resources. He was the original discoverer of the gigantic and prolific Bakken oil fields of Montana and North Dakota that have already helped move the U.S. into third place among world oil producers.

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Hong Long Will It Last?

•.Oil production in North Dakota has increased

more than 600%The success rate of drilling is at

99% compared to previous 30%

There are 50,000 Wells In The Bakken and Each

Well is expected to produce for about 30 Years!

Oil Production Will Last More Than 30 Years At Least!

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Oil Production

There are about 40,856

petroleum industry jobs in North Dakota

There are an estimated 18,000 indirect jobs supporting the

petroleum industry

An economic impact study in 2005 estimated that the oil boom had a $4.4 billion impact on North Dakota’s economy, but that has increased now by almost 600% to $34.4 billion

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Hong Long Will It Last?

•.North Dakota’s Oil Production will double in

2017 1.6million Barrels

Goldman Sachs is bullish on Bakken North Dakota’s Bakken shale formation will Surprise investors & Wall Street

There are 50,000 Wells In The Bakken and Each

Well is expected to produce for about 30 Years!

Oil Production Will Last More Than 30 Years At Least!

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What Is Happening Now?

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What Is Happening Now?

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Job Creation

According to job projection numbers, every drilling rig creates 120 jobs. And of those jobs, 25 percent are for truckers hauling water, while 36.6 percent of the jobs are

trucking related.

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Housing Crisis

NORTH DAKOTA IN THE NEWS

1

•Ranks No. 1 in the nation for housing shortages and rent inflation.

2

•The most expensive housing in the USA, higher than Manhattan.

3

•U.S. Senator Heidi Heitkamp today kicked off a series of discussions around North Dakota focused on finding solutions to the state’s housing crisis.

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Desperately seeking workers

A Scarcity Of Housing

Employee Hard To Come By

Demand

for workers

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Rental Increase

One/two bedroom apartments Price

Increase

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Housing ChrisisPrairie Business

Report

• “Those existing on the market are gone within an hour or two,” he says. “Three to five years ago you would put a house up for sale and it would take two years to sell.”- Curt Moen, building planner for Watford City, says right now there are No Homes Available.

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North Dakota Real Estate Boom

Going up up & up

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The Housing Appreciation

Market appreciation is increasing 1.5 percent to 2 percent monthly. The

average home five years ago was between $90,000 and $95,000. Today, the average sales price that is reported is $161,000, Cymbaluk says.

“Housing prices have gone up at such a fast pace that it is difficult in the real estate market for appraisers and lenders,” he says. PB

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Why Watford City? –The Next Williston

Watford City is the County Seat of McKenzie County and the largest city.

The Next Williston

Major players in the Bakken

Important Oil Rigs Under

• Strategic Location• Great DevelopmentsWatford

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Watford City –The Next Williston

Rapid growth in Watford City due to the continued development of the Bakken Shale reserves.

2,000 wells a year will be drilled in northwestern North Dakota for the next 18 to 20 years. And McKenzie County will be a major hub of that drilling activity.

There are 195 drilling rigs within 60 miles of Watford City. • Strategic Location

• Great DevelopmentsWatford

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Watford City –The Next Williston

The recent discovery that wells drilled in northeastern McKenzie County have an

initial production that is five times the amount of an average Bakken well has caught the attention of the oil and gas industry as well as the state of North Dakota.

Northeastern McKenzie County happens to be the deepest part of the Williston Basin. It is the hottest and its layers are the thickest

The recent discovery that wells drilled in northeastern McKenzie County have

an initial production that is five times the amount of an average Bakken well has caught the attention of the oil and gas industry as well as the state of North Dakota.

• Strategic Location• Great DevelopmentsMcKenzie County

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Why Watford City The Mini Studios

• Most Recent Update• 12 modular housing units consisting of 72 studios has arrived

on site• 36-48 Studios are expected next week

• Operational 9/9/2013

• Selling Phase III• 150 Units Available In Watford City Location

• 150 Days For Delivery For Winter

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Where Does The Rent $$ Come From?

• To drill a new oil well in the Bakken costs about $10 million, and each well will

generate about $20 million in net profit Each well pays about $4.4 million in taxes, $7.6 million in

royalties, $1.6 million in salaries and wages.

Most Of the leases come from oil companies rather than individuals

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The Mini Studio ProjectIn Summary

NDD is building a name- brand operation

1000+ Units In Various Locations

Fashion after Target Logistic

Sold for $625 million

According to the survey, revenue per available room (RevPAR) is forecast to increase by 6-7% in the majority of the major US lodging markets, mainly due to limited supply growth. This will in

turn lead to rising profits, with net operating income forecast to increase by more than 10% between now and the end of 2015.

450 Sold

150 Phase

III

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ProjectsThe Mini Studios

• Most Recent Update• 12 modular housing units consisting of 72 studios has arrived

on site• 36-48 Studios are expected next week

• Operational 9/9/2013

• Selling Phase III• 150 Units Available In Watford City Location

• 150 Days For Delivery For Winter

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The Numbers The Mini Studios

• Most Recent Update• 12 modular housing units consisting of 72 studios has arrived

on site• 36-48 Studios are expected next week

• Operational 9/9/2013

• Selling Phase III• 150 Units Available In Watford City Location

• 150 Days For Delivery For Winter

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The Numbers The Mini Studios

• Most Recent Update• 12 modular housing units consisting of 72 studios has arrived

on site• 36-48 Studios are expected next week

• Operational 9/9/2013

• Selling Phase III• 150 Units Available In Watford City Location

• 150 Days For Delivery For Winter

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Full Service Hotel Management

• Most Recent Update• 12 modular housing units consisting of 72 studios has arrived

on site• 36-48 Studios are expected next week

• Operational 9/9/2013

• Selling Phase III• 150 Units Available In Watford City Location

• 150 Days For Delivery For Winter

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Award WinningDeveloper

• Most Recent Update• 12 modular housing units consisting of 72 studios has arrived

on site• 36-48 Studios are expected next week

• Operational 9/9/2013

• Selling Phase III• 150 Units Available In Watford City Location

• 150 Days For Delivery For Winter

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Full Service Hotel Management

• Most Recent Update• 12 modular housing units consisting of 72 studios has arrived

on site• 36-48 Studios are expected next week

• Operational 9/9/2013

• Selling Phase III• 150 Units Available In Watford City Location

• 150 Days For Delivery For Winter

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The Project Update The Mini Studios

FEATURE: Developing the Bakken

At 1,000 beds, the property represents a $70 million

investment, which will be funded by overseas investors. - See more

at: http://www.prairiebizmag.com/event/article/id/15817/group/Busin

ess/#sthash.B9Drwm7N.dpuf

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The Single Family ProjectIn Summary

Baffalo Hills Subdivision is the #1 Best Selling Community In Watford

City25+ Available For Purchase

Selling Phase II

One of the few Affordable Housing community In ND

Hugely Popular

85+ Sold

25Phase

II

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The Best Selling Project

In McKenzie County

Buffalo Hills Subdivision is the BEST SELLING

subdivision in McKenzie County.

"Buffalo Hills has sold more houses in 2013 than all other single family housing subdivisions combined".

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To Be Continued

More Coming Soon