USA Dakota Opportunity - 25% Rental Guarantee for 4 Years

8/2/2019 USA Dakota Opportunity - 25% Rental Guarantee for 4 Years

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Hands free, passive, high income opportunity

Located in the Bakken oileld, North Dakota, USA, which

has more oil and gas than Saudi Arabia

Small window of opportunity to take advantage right now

Huge projected rental yields of 38% or oponal 25% rent-

al guarantee for 4 years

Invest from just $47,000

Another Property Horizons Exclusive:

Invest In Massive Yielding PropertyIn The USAs Largest Oileld Now

With Oponal 4 Year, 25% Rental Guarantee

New, Oponal

25%Rental

GuaranteeFor 4 Years


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Contents

Investment Summary 3

Locaon 4

The Development 5

Financials 6

Financial - Summary of Costs 7

Reassurances and Security 8

Purchase Process 9

FAQs 10


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Investment SummaryA unique opportunity

The world we live in connues to be dictated by the supply and demand for commodies and there are few commodies

that are more important in the world than oil.

As the worlds largest consumer of oil, the USA is in an incredibly fortunate posion to have discovered one of the largestoilelds ever, known as the Bakken Formaon in North Dakota and it is all over the news; BBC, CNN and Time magazine to

name but a few have covered this story.

This is new and current and causing waves across the USA as engi-

neers, oil workers, and labourers ood to the area in search of jobs

and opportunies where even manual labourers are paid as much

as $150 / hour. Of course it goes without saying that the large oil

companies such as Exxon Mobil, Chevron and Halliburton are al-

ready involved heavily.

However currently due to the extremely new opportunity and re-mote locaon of the Bakken Formaon oil elds in North Dakota,

USA, there is currently an incredible shortage of accommodaon for

15,000 of these oil workers which means that thousands are having

to sleep in tents or else sleep in their cars in sub zero temperatures.

This is where we come in! By oering low cost, technologically

advanced and high end mini hotels this provides a high quality

accommodaon opon where the rental income Is supported by

some of the largest oil companies in the world.

Investment Highlights

Massive annual rental returns year on year of up to 40%

OR 4 year rental guarantee at 25%

15,000 oil workers with no accommodaon and rising!

Full managed, hands free and passive investment

Rental income supported by mulnaonal oil companies

Realisc rental returns of 90%+

Fabricaon of the mini hotel is done o site allowing it to be built faster and achieve returns sooner

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The Locaon - Wealthy Williston, North Dakota

At the heart of the Bakken Formaon oil elds is a small town called Williston which is defying the laws of economics in the

current US recession. With more oil in reserves than Saudi Arabia and the UAE combined, the pressures from this rapid

growth are evident. According to recent reports there could be as much as 24 billion barrels of oil in the Bakken Formaon.

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As a result of this incredible prosperity and

with money ooding the area, North Dakota

has one of the lowest unemployment rates in

all of the USA and land prices are rising dra-

macally.

Currently only a ny fracon of the 15,000

and rising oil workers have suitable accommo-

daon and as such the vast majority are

sleeping in their cars, tents and trailer parks.

This is totally unsustainable especially when

you consider the locaon being just south of

Canada, the weather can be extremely coldand is causing health and safety issues for the

mulnaonal oil companies who have to en-

sure the safety and welfare of their sta.

This is why there is an incredible untapped

opportunity to provide accommodaon in

this area.

With wells drilled in the

Bakken during the past threeyears, there is signicant new

geological informaon. With

ever-advancing producon

technologies, this could mean

more oil could potenally be

recovered in the formaon.

Ken Salazar

USA Secretary of the Interior


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The Development - Using Advanced Technology

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Each mini hotel block contains 20 self-contained, fully-

furnished ensuite rooms. Investors may purchase individ-

ual rooms, or a block of 20. Each mini hotel comes with

full, dedicated and professional management in place to

provide a passive, hands free income for investors.

The following specicaons are all included in the inves-

tor purchase price. Small items, such as crockery and lin-

en etc, are covered for the rst 12 months aer whichthe investor/owner may be required to contribute to-

wards replacements.

Two double, queen, or king bedsSing room / bedroomEn suite, fully-ed bathroomCarpeng and ooringCeiling fans

Drapery hardware

Aached lighng xtures

Two nightstands

Coee maker

Microwave

Two sets of crockery

Bed linen

Flat screen TV and cable

Wi internet ready


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Financials - Providing a passive, annual income of 40%

1. This is very conservave, current accommodaon in the area are achieving 95-98% occupancy and rates of $110 to $140 per night per room.

2. Full closing and purchasing costs are esmated at $1,850 for a single room/unit and $17,000 for a 20 room mini hotel block.

3. The rental guarantee is oponal and investors must indicate if they want to take advantage of this upon point of reservaon.

3. Investors will receive 55% of the room revenue, with an addional cost being adversing for your single unit room (at $450 per year) or 20

room 'mini hotel' block (at $2,000 per year) via internet adversing and personal contacts with the relevant organisaons and companies.

Exit Strategies

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25% Rental Guarantee From 1st February Cost per Block (20)

nvestor Price $47,000 $47,000 $900,000

ross Total Rent

N/A

$32,850

$657,000

ental To Investor $11,750 $18,068 $361,350

Markeng Costs N/A $450 $2,000

ET Annual Income $11,750 $17,618 $359,350

% Annual Return 25% 38% 40%

1. Long term hold

Compared to the yields and returns

oered by bank accounts and the

volality with stocks and shares, a

passive, consistent rental income

of up to 47% makes a tremendous

return to hold for the long term.

2. Sell to investor / fund

As a performing property asset

achieving a massive yield and with

an eecve management companyin place, this would be an extreme-

ly aracve sale to other investors

or funds.

2. Buy a whole 20 unit mini

hotel then convertWhilst you would need to buy an

enre 20 room mini hotel or come

to an arrangement with the otherowners, these units could be con-

verted into spacious apartments

with high capital growth potenal.


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Financials Summary of costs

CLOSING COSTS

See below for the closing costs per unit detail. This has now been reduced dramacally to $1,850 rather than $3,500

ON-GOING COSTS

1. $450 p/annum markeng fee

This fee is used to buy and place signage, adverts in the local papers around the county, direct markeng to oil compa-

nies and the website. The website will be an online management tool as well as a booking and payment site. Add to

this the markeng of rooms and a portal to resell your unit shouldan investorwish to do so at any me during their

ownership period.

2. $5.00 per night hold back ($1825 p/annum)**

This will be used to pay for the investors insurance policy each month (this policy will be a house hazard policy with

contents and personal liability), as well as the general upkeep of the property such as grass mowing, snow removing

and gravel replacement, that comes with heavy winter snow removals. Decorang will be needed every few years. The

hold back will be on a per block basis and held in the blocks account.It will be accounted for and receipted. Any funds

remaining in the hold back will be the property of the owners of the units in the block. If a shortage occurs the follow-

ing month will top o the fundor the owners will pay the amount in. This should be a very rare occurrence but should

be Stated. ** not included in the nancial on page 6

TAXES

Independent tax advise should be sought, however we can advise that state and federal tax will be circa 10% aer de-

ducble costs and lling fees, we ancipate an approx. gure of $1,000 USD p/annum.

Cost of Unit

Amount

Title docs $47,000.00 $740.00

Legal Management agreement $47,000.00 $555.00

Corp Formaon $200.00

Title ins $355.00

$ 1,850.00

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Single Owner

Married Couple

Income $17,618 $17,618Less Depreciaon $1,709 $1,709Less Tax Filing Fees $256 $256Net Income $15,653 $15,653Less Tax Free Income $3,650 $7,300Net Taxable Income $12,003 $8,353Tax to Pay approx. $1,201 approx. $840


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Reassurance and Securityproviding peace of mind

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Rental Income Supported By Internaonal Oil Companies

t is common for large oil companies such as ExxonMobil, Chevron, Halliburton, Shell and BP to pro-

vide a housing and accommodaon allowance for its workers and in many cases pays the owner

direct. This is considered one of the perks of working on site on an oil eld. This provides investors

with safe and consistent rental income for the long term.

A Professional, Legal Purchase Using Escrow Accounts

All investor funds are held in a client escrow account and released to the developer only when they

have reached each stage of the building of the mini hotels. This ensures safety and security of your

funds at all mes.

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15,000 Workers Without Property Accommodaon And Rising

With such as huge amount of workers not being able to nd suitable accommodaon and sleeping

n tents, trailer parks and even their own cars, there is a incredible demand for good quality, fur-

nished accommodaon which we are looking to meet with this unique investment. At the moment

other developers are having a very dicult me building in the area because as soon as they send

workers to build the site, their sta are poached by the oil companies who are able to oer them 3-

6 mes higher salaries! By using cung edge building technology, the developer is able to build

the main structure osite in Canada and simply assemble the mini hotels very quickly on site thus

eliminang this problem. This not only ensures high occupancy rates but an almost compleon

free opportunity for long term rental income for investors.

The Largest Oil Field In The USA

With an esmated 24,000,000,000 barrels of oil available and more than Saudi Arabia and the UAE

combined, this will bring incredible wealth to the area and provide long term job opportunies for

20-40 years as a minimum. This means your investment will provide long term passive income.


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Purchase Process - A safe and transparent process

The purchase process is designed to provide a seamless, safe and secure transparent process to ensure that

investors funds are held securely in an escrow account unl they are released to the developer upon com-

pleon of the stages outlined below.

Copies of passport / ID and proof of address would be required at point of reservaon.

Complete reservaon form, provide copy of pass-

port and recent ulity bill showing home address

and pay reservaon fee to escrow account (as

specied on the reservaon form) as well as Prop-

erty Horizons Finders fee.

The developer will then issue you with a receipt.

If purchasing a block, you should be sent your

contract within a week or two of receipt of the

reservaon deposit and relevant paperwork as

requested. If purchasing a single unit, or mulple

units less than a mini hotel block of 20 rooms,

reservaon fees are held in escrow unl thewhole block has been sold/reserved.

Upon signing the purchase contract, the balance of

the purchase price (plus closing costs) is to be paid

into escrow and released to the developer upon

compleon of the following stages:

a) 35% (plus closing costs) on signing of purchase

contract.

b) 35% on conrmaon that the panels have been

released from the factory.

c) 30% on conrmaon that the building is com-

plete and ready for occupaon.

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FAQs

Q1. What am I actually purchasing?

A1. Investors are purchasing a fully furnished, high end en-suite room/unit in a mini hotel.

Q2. Is there a reservaon fee?

A2. Yes. The reservaon fee is $1000 USD for a single unit and $7,500 USD for a 20 room/unit mini hotel block.

This is held in escrow and credited against the total cost at compleon / closing. A culminaon minimum of 20

rooms/units must be purchased before any escrow funds are released.

Q3. Who owns the land that the mini hotels are built on?

A3. If you are purchasing the enre 20 room/unit mini hotel then you would be the freeholder of the land. If you

are purchasing less than any enre mini hotel, then you would own 1/20th share of the freehold.

Q4. Is planning permission needed to build the mini hotels?

A4. Provided that the construcon meets the North Dakota Building Code and the requirements set out by the ul-ity companies, which it does, then planning permission is not required.

Q5. Will there be any problems with ensuring that the units are connected to the full range of ulies?

A5. No, please see Q4 above, The units will be fully integrated with all ulies such as electricity, telephone, water,

sewage.

Q6. Who is responsible for managing the mini hotels and paying the rental income?

A6. The developer and their management company will handle all of the day to day running and management of

the mini hotel to ensure that this is a passive and hands free investment for you. Rental income for a given month

will be shared out equally amongst each investor and paid monthly direct into a bank account of your choice.

Q7. How realisc is the 90% occupancy rate.

A7. Extremely realisc! Current hotels and accommodaon in the area are achieving on average 95 -98% occupancy

rates with some achieving 100% for the last 6 months, so we feel this 90% occupancy rate gure is on the cauous

side. With 15,000 workers sll with no permanent accommodaon already and the number of workers exceeding

the number of rooms, there is tremendous unmet demand for accommodaon.

Q8. How achievable is the $100 a night rental rates?

A8. Again, this is very realisc. The majority of accommodaon and rooms available that are achieving the 95-98%

occupancy rates are charging and being booked at on average $110 to $140 a night. This means our gure of $100

should have no problem in aracng regular, long term and frequent tenants.

Q9. How do the workers pay for their rooms?

A9. In 95% of cases the large oil companies such as ExxonMobil, Chevron, Halliburton, Shell and BP provide a hous-

ing and accommodaon allowance for its workers and in many cases pays the owner direct. This is considered one

of the perks of working on site on an oil eld and provides investors with long term, stablerental income.

It is common for large oil companies such as ExxonMobil, Chevron, Halliburton, Shell and BP

to provide a housing and accommodaon allowance for its workers and in many cases Page 10


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Number of units purchased Finders Fees Per Unit (+VAT)

1 1,795

2-3 1,595

4-6 1,395

7-19 1,195

20 Unit Mini Hotel

895

FAQs

Q10. Who pays for the upkeep and maintenance of the building?

A10. An upkeep pool at a rate of $5 per night is required as an . This is accrued from rent paid to the management

company, not as an addional investor cost. Any external damage (such as from weather condions) is covered by

master policy; and any internal tenant damage is paid for by the tenant or oil company.

Q11. Does the developer have any compeon in the area for these kinds of buildings?

A11. Due to the developer being a specialist in this type of construcon and having specialist knowledge and manu-

facturing techniques, they currently have no compeon in this area. Tradional builders have signicantly higher

build costs and take signicantly longer to build their sites and have exceponally high wages that they have to pay

because there is a shortage of workers. The cung edge technology reduces overheads and costs and therefore en-

sures the returns are so large.

Q12. What are the other addional costs involved with purchasing?

A12. Closing costs are esmated at $1,850 for a single room/unit and $17,000 for a 20 room/unit mini hotel block.Investors purchasing mulple units, but not a whole block, may receive a discount on the closing costs as stated

above. Any over-payment of closing costs will be refunded. The property law in America requires that a fully -

itemised breakdown of closing costs is supplied upon compleon. Closing costs include: tle insurance; tle search;

aorney fees, escrow fees, notary fees, wire fees, courier fees, property inspecon, recording (local) fees, document

preparaon, appraisal fees, endorsements, transfer fees and property taxes.

Q13. What is your nders fee on this investment opportunity?

A13. We oer very compeve fees given the amount of me it has take to negoate and structure this unique in-

vestment opportunity for our valued clients. We reward larger purchasers by oering signicant discounts to our

fees, please see below:

Q14. Will I need a USA Lawyer / Aorney?

A14. Yes you will. We have sourced a professional and ecient one who will be acng for our clients interests and

manage the escrow account.

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USA Dakota Opportunity - 25% Rental Guarantee for 4 Years

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