Acquisition &Rental ProgramThe Elite Team

National Median House Prices

Median House Price Explanation

• The previous chart estimates the market value of today's median-priced house over a 40-year period, thus controlling for the fact that housing sizes have changed over time. The thick red line represents real house prices. For those unfamiliar with economic terminology, "real" prices are prices that have been adjusted for inflation.

Financial & Housing StatsCape Coral Financial Statistics

Median household income(per year)

$47,345

Income change over time(increase since 1990)

+52.67%

Sales tax 6.00%

State income tax rate n/a

Cape Coral Housing Median home priceNational Median ($170,000)Home price gain(2-5 year gain)

$110,000

25.60%

Explanation of Cap Rate

The Cap Rate is short for capitalization rate. Cap rate is simply the rate at which an investment property earns money, depending on the value of the property. It is calculated by taking the net operating income – (gross rent minus expenses) – and dividing by the value of the property.

Cap Rate ExampleExample:A property is purchased for $100,000. This is the value of the property.The property brings in $1000 per month, or $12,000 annually.The property costs $400 per month to maintain, or $4800 for the year.Net Operation Income (NOI) is $600 per month, or $7,200 per year.$12,000 – $4,800 = $7200$7,200/$100,000 = .072 (7.2%). The cap rate of the property is 7.2%.

• Cap rate is an important calculation used when evaluating the financial performance of a property, and one that investors use frequently to give an “apples to apples” comparison of two properties. For example, properties can vary greatly in price and net operating income, but have the same cap rate, making them equivalent investments.

• Cap rates vary from market to market. A higher end investment (desirable area, better amenities) may have a lower cap rate than, say, a property in a less desirable area with less amenities. This is a premium the investor pays for a better quality property in a more desirable neighborhood.

• There are other factors, such as tax basis, cash on cash return and the debt service ratio, that can effect the Cap Rate.

• All which have been calculated on the Cash Flow Analysis that will be provided to you for each property that fits our model.

Important Info & Benefits aboutRental Management Services

• 97.3% occupancy rate in the last 12 months • Average tenant placement time 7-23 days • 24 hour Emergency Services• Prescreening service included with tenant placement• Online bill pay/direct deposit available to tenants• Direct deposit available to owners for monthly

payment• Complete accounting reports available online 24/7 • Complete snapshot of single property and portfolio

available online• Management Discounted fees for multiple property

portfolios

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Your Acquisition Team

2011 Most Affordable Housing Markets

Yahoo’s #1 Place to buy in 2012• 1. Cape Coral-Ft. Myers, Fla.

One-year change in home prices: 12.1% Median home price: $100,000 Change in price since peak: -63.4% Unemployment rate: 10.7%

Foreclosure rate: 1 of every 92 housing units (1.09%)

Yahoo continued• Cape Coral epitomized the housing boom and bust, so it's a

shocker to see it rank first among cities where prices have risen most. That's especially true given that the rates of unemployment and foreclosure remain high and distressed properties still constitute half of all sales in the metro area, which ordinarily would exert downward pressure on demand and prices.

• Sales in this appealing area, with its 400 miles of waterways and access to the Gulf of Mexico beaches, islands and fishing grounds, are steady (and traditionally rise with the arrival of winter snowbirds). The region has just four months' supply of homes for sale, but that figure varies greatly by locale and property type (for example, from less than a month's supply of single-family homes in Lehigh Acres to a year's supply of condos in Ft. Myers Beach). By Patricia Mertz Esswein, Kiplinger.com

Families are changing but still growing

• For 50 years, families with children drove America’s housing industry.• In this decade, renters could make up

half of all new household with more than seven million new renter households. • Because of these estimated emerging

housing needs, this means half of all new homes built or bought between now and 2020 should be rental units.

People are choosing Cape Coral

The Cape Coral/Fort Myers area was recently recognized as being one of the top 10 most affordable housing markets in the world, according to an international survey. The survey originated from Demographia Inc., which ranked Cape Coral/Fort Myers 10th in the nation.

View the full report.

“Rents on upward rise: Could Prices follow?”• With the bubble clearly gone, the future home price path

should follow the future rent growth path. That means home prices could also double in 14 to 20 years, though it is unclear when home prices will begin to catch up with rents. But long-term investors buying today are sure to catch some, if not most, of the upward ride.

• Rents rose at a better than 3.5 percent annualized rate in the fourth quarter of 2011, government data show, and private data sources imply even faster rent growth.

• http://realtormag.realtor.org/news-and-commentary/economy/article/2011/11/rent-s-upward-ride-could-prices-follow

Topretirements.com states "Fort Myers makes just about every one of our affordable places to retire lists." Babyboomer-magazine.com states "Another Baby Boomer turns 50 every 7 seconds."

Topretirements.com

• The magnetic nature of the Ft Myers/Cape Coral area as a retirement destination provides additional, long term, upside potential

Babyboomer-magazine.com

• As these "baby boomers" reach retirement age, looking for their place in the sun, they, in addition to the natural population grow expected, will provide an enormous pool of buyers and renters in our area that will translate to substantial gains in appreciation over the coming years.

Cape Coral - Ft. Myers #5 on AOL’s“Cities People are Racing to Buy Houses”

CNN Money 10 Fastest Growing US Cites

• Cape Coral, Fl.

• Population: 530,920• Growth (2000-2010): 60.8%

http://money.cnn.com/galleries/2012/real_estate/1204/gallery.US-Cities/3.html

Home Prices Rise in Half of U.S. Cities as Markets

Stabilize• Bloomberg Magazine May 2012

• The best-performing metro area was Cape Coral, Florida, where prices increased 28.1 percent from a year earlier.

• http://www.bloomberg.com/news/2012-05-09/home-prices-rise-in-half-of-u-s-cities-as-markets-stabilize.html

FORBES Magazine

25 Best places to retire!

• http://www.forbes.com/pictures/mjf45gdef/cape-coral-florida/

• Published May 2012

Cape Coral VA Clinic is to be completed in April 2012

• The new Lee County VA Outpatient Clinic will be a comprehensive healthcare center designed to accommodate the changing needs of veterans in the region. The clinic will be a state-of-the-art primary and specialty care center also offering mental health, diagnostic radiology, and laboratory services.

VA Clinic continued• Approximately 25 percent of the Southwest Florida

population is made up of veterans and 68,000 veterans live in Lee County alone. Those numbers will continue to climb as more veterans retire to Florida or return home from Iraq or Afghanistan.

• Once constructed, Bayside VA Clinic will have greater capacity to provide healthcare to a population of over 202,000 veterans in southwest Florida.

• City Development expects the properties adjacent to the clinic to eventually house restaurants, hotels and shopping centers, all bringing jobs and commerce to Cape Coral and Lee County. Within a decade or more, it is expected that construction of an I-75 interchange off of Del Prado Boulevard, a project already included in the city's 20-year plan.

Acquisition and Rental Model

• Dominate market position in the $70-90k range to position for market rebound• Focus on move in ready properties at

affordable rental rates • Aggressively seek properties in desirable

and up and coming areas offering higher CAP rates and equity growth factors and positions• Contract properties with a positive equity

position offering immediate value and return on investment

Before Pictures: Property needed paint, carpets cleaned, general deep cleaning, window glass replaced

After Pictures:House was painted, window glass replaced,carpets cleaned, general cleaning.

Property Details

• Property was purchased for $71,500• Work total was $3200.00• Property rented in less than 10 days • 12 month lease signed for $850 a

month• 8.25% after repair and acquisition.• Current As-Is value $85,000

Property Pictures:

Property Details:• Purchased for $70,200• $1200.00 in repairs and updates• Renters were acquired with acquisition • Renters are paying $950 a month with 4 months

left on lease• Our property manager was able to renew a lease

for 12 months at the $950• Property is earning money at a 12% Cap Rate.

Property Pictures:

Property Details • Listed for $85,000• Purchased for $75,000• Repairs $3400.00 including individual water

meters • Tenants were month to month, property manager

was able to get one tenant to sign a 12 month lease with a $25 a month increase

• Second tenant moved out, however first tenant provided a new tenant the very next day for $50 more than original tenant was paying and new tenant will be providing lawn care.

• Property is earning money at 9.5% Cap Rate

Property Pictures:

Property Details:

• Property built in 2008• Purchased for $108,625• Repairs, cleaning, painting, freshening up $3500• Total cost of $112,125• Total Replacement Cost (on insurance dec page)

$193,000• Able to get a renter 6 days after repairs for a

total of 16 days at a monthly rate of $995.00 on a 12 month term.

• CAP Rate 7.5%

Property Pictures:

Property Details:

• Year Built 1983• Property Sales Price $73,000• Repairs, Cleaning Freshening up $700• Total cost of $73,700• Renter in Place 27 days after acquisition paying $850 with a tenant.• Cap Rate 9.5%

Lehigh Acres Fl.

Lehigh Acres Appreciation Rate

Lehigh Acres Information and Demographics

Lehigh Acres is a medium-sized city located in the state of Florida. With a population of 86,784 people and 12 constituent neighborhoods, Lehigh Acres is the 78th largest community in Florida. There's nothing like the smell of a brand new house, and in Lehigh Acres, you'll find that a large proportion of houses were recently built. New growth in residential real estate is an indication that people are choosing to move to Lehigh Acres, and putting down their money on brand new construction. Lehigh Acres’ real estate is, on average, some of the newest in the nation. Lehigh Acres does seem to be experiencing an influx of affluent people, because the median household income is $38,517.

Lehigh Acres Information and Demographics

continued Unlike some cities, Lehigh Acres isn’t mainly white- or blue-collar. Instead, the most prevalent occupations for people in Lehigh Acres are a mix of both white- and blue-collar jobs. Overall, Lehigh Acres is a city of sales and office workers, service providers and construction workers and builders. There are especially a lot of people living in Lehigh Acres who work in office and administrative support (17.14%), sales jobs (13.35%) and management occupations (6.59%).

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