Tennessee Real Estate Opportunity

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Tennessee Real Estate Opportunity
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SEYMOUR, TENNESSEE

• 100 Financed New Construction Program

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Purpose Disclaimer

• This presentation was created to assist you,
  the investor, in understanding the steps involved
  in procuring an investment property. It is
  intended to be a model of the investment process,
  subject to change without notice, and is only to
  be used as a guide during this process. Nothing
  in this presentation should be considered to be a
  guarantee of results or market conditions.

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Low Cost, High Return

• Among the various investment programs we offer,
  the highest return, lowest risk investment we
  offer is a 100 Financed New Construction Loan
  for Single-Family Spec Homes. Thats right, no
  money out of pocket and a 10-20 conservative
  estimated return on the loan amount based off
  historical returns.
• Our services include finding the lot, preparing
  the contract with the builder, and getting you in
  touch with the mortgage specialists that handle
  these loans. We can also list this property for
  you when it comes time to sell, or manage the
  property as a rental property.
• We offer a 4-6 month Construction Loan Program
  that basically gives you, the investor, 6 months
  to sell your investment home at market value, or
  place renters in to the home before ever assuming
  the mortgage. Exit and hold strategies are
  currently in place to assist investors in the
  best chances for success for renting or selling
  the property at the completion of construction.

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Leverage to Increase Your Returns

• How the program works
• Normally, if you partake in a construction loan
  in other markets, you generally put 10 down, pay
  for closing costs, and pay monthly construction
  interest payments.
• A few lenders can and will finance investors at
  the 100 level. How is this done?
• The lend off 90 of the appraised value of the
  land plus improvements.
• If there is enough difference in the total cost
  compared to the appraised value, the lender will
  allow you to wrap in the lot price, all the
  closing costs, construction interest, the
  construction, upgrades, etc.
• Because we have negotiated a below market build
  price with a volume builder, there is enough
  immediate equity to allow investors to include
  all costs except 1000-2000 in out of pocket
  expenses.
• The timeline for building this spec home is 4-6
  months and the mortgage we help you obtain allows
  for 6-12 months.
• Total cost of construction interest reserve is
  based on a 6 month build time

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How do I get started?

• Please read the following steps involved to get
  started!
• STEP 1 As an investor, it is necessary for the
  preferred mortgage company to determine your
  financial history and financial qualifications
  for this opportunity. This company will need to
  obtain a complete residential mortgage
  application, which will include information
  provided by three independent credit reporting
  agencies, asset and income information, work, and
  residential history, and other necessary
  information.
• STEP 2 Upon review of the application, if
  satisfactory to meet the lenders criteria for
  financing, Cash Flow Bargains will then assist in
  providing the investor with a list of available
  lots and and house models.

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Get Pre-Approved to be assigned a lot! First
Come, First Served.

• MOUNTAIN VIEW LOTS ARE IN HIGH DEMAND!
• STEP 3 Once the appropriate lot and model is
  chosen, a contract for land purchase is drawn and
  sent to the investor to be signed. The realtor
  will provide expertise relative to the lots
  location and estimated value.
• STEP 4 Once the bid is accepted and both the
  Sellers and the Buyers signatures are on the
  contract, the time clock has begun. Depending on
  the lots location, a deposit is required to be
  sent to the title company within 5 days or less.
• STEP 5 At this point, the investor will
  determine which home model to build, along with
  selecting any available upgrades to the model
  home.
• STEP 6 The Builder, will review the home and
  the listed upgrades to determine if acceptable
  and if so, the price for the building of the
  home. Once a contract is agreed upon, the
  selected mortgage company will seek to obtain
  mortgage financing for the Investor.

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Construction Begins in 45 Days or Less from
Pre-Approval

• STEP 7 An appraisal will be done, which is one
  of the only up front expenses (approximately
  400). Appraised Values are expected at 225,000
• STEP 8 The Broker will obtain a construction
  loan for the lot, home, and improvements.
• STEP 9 During the construction period of 4-6
  months, the investor should be aware of market
  conditions and changes and prepare for the
  appropriate exit strategy, whether it be selling
  the home or holding onto the property as a rental
  property.
• The above steps provide a reasonable estimate of
  the investment process. However, each particular
  transaction is unique, especially since every
  investor is unique- based on credit history and
  market conditions. We do not guarantee any
  specific time frame, costs incurred, quality of
  services provided, or results from this
  investment.

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SEYMOUR, TENNESSEESUMMARY ILLUSTRATION
Deer Creek Model - Seymour, Tennessee

• Typical Lot (varies) 42,000
• Typical Model Price 149,000
• Net Home Price 191,000
• Closing Cost on Loan 9,000
• Construction Interest 6,000
• Total Costs to Build 206,000
• Total Loan Amount 204,300 (90 LTV)
• Appraisal 227,000
• Total out of pocket 1000-1700
• Approximate Equity at Closing 22,000
• Annual Appreciation if _at_ 10 23,000
• Estimated Equity in 12 Months 45,000
• With 1000 upfront and 4200 expenses for
• 1st year 5200 total, unless sold upon
  completion
• Yields a Cash on Cash Return of Approx. 420

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SEYMOUR, TENNESSEE EXIT STRATEGY
EXIT and HOLD STRATEGIES

• Option 1Sell Upon Completion (Certificate of
  Occupancy)
• Appreciation rate based on current rates 15
  over next 12 months.
• Possible future value of home upon completion
  236,000
• Possible equity position 34,000 (future value
  - cost of home)
• Premier Mountain Realty located directly in
  Seymour, TN has been lined up to list and market
  homes for sale upon completion

All prices, building costs, interest rates, and
appreciation rates are subject to change without
notice. We are not responsible for losses,
damages, or changes in the market conditions. All
information is deemed reliable but not guaranteed.
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SEYMOUR, TENNESSEEHOLD STRATEGY

• Option 2Rent Property upon Completion
  (Certificate of Occupancy)
• Achieve Tax Benefits for holding property longer
  than 12 months
• Appreciation rate based on current rates 10
  over next 12 months
• Possible future value after 12 month hold
  249,000
• Possible equity position 46,000 (future value
  - cost of home)
• PITI Payment 1650 (based on 7.50 APR 30 yr
  fixed)
• Rental Rate 1,300 (based on average current
  rate for comparable
• Cash Flow -350/ month or -4200/ year
• Annual Appreciation 23,000 at 10 appreciation

All prices, building costs, interest rates, and
appreciation rates are subject to change without
notice. We are not responsible for losses,
damages, or changes in the market conditions. All
information is deemed reliable but not guaranteed.
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SEYMOUR, TENNESSEE HOLD STRATEGY

• Option 3Lease/ Option upon Completion
  (Certificate of Occupancy) Property Management
  Firm in place.
• Achieve Tax Benefits for holding property longer
  than 12 months Lessee Deposit, or Consideration,
  plus typical higher rent rates minimizes
  potential negative cash flow.
• Potential Seller Held Financing can achieve much
  higher rent rate
• Potential equity gain if lessee defaults
• Premier Mountain Realty will aid investors with
  local lease options upon request.

All prices, building costs, interest rates, and
appreciation rates are subject to change without
notice. We are not responsible for losses,
damages, or changes in the market conditions. All
information is deemed reliable but not guaranteed.
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SEYMOUR, TENNESSEEADDITIONAL SOLUTIONS
EXCLUSIVELY FOR OUR INVESTORS

• Cash Flow Bargains has formed a special
  relationship with Herocare, Inc.
• Herocare, Inc. is a specialized company which
  provides housing and financial solutions for
  teachers, firefighters, police and medical
  personnel and government employees in various
  markets around the United States.
• Herocare is currently working in the Knoxville
  Metro Market with the local hospitals, school
  systems, local unions and other entities
• Local Community Heroes needing housing for rent
  or purchase will be informed on many levels of
  the Seymour opportunities our investors are
  building.
• The Herocare Network provides an EXTRA layer of
  exit strategy

All prices, building costs, interest rates, and
appreciation rates are subject to change without
notice. We are not responsible for losses,
damages, or changes in the market conditions. All
information is deemed reliable but not guaranteed.
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About Herocare, Inc.
With our local Director and Affiliates, Herocare
teams with the leadership of public sector
employers, unions, local and state governments
and Human Resource (HR) departments to offer
Herocares suite of services as a no-cost add-on
to their member or employee benefit packages.
iCARE, Herocares proprietary strategy is a
culmination of company values and services and
acts as a QC and follow-up vehicle to guarantee
that each hero has a Wow! Experience while
providing them solid housing solutions.
Herocares network of trusted expert affiliates
harness a host of services, education and
resources that opens doors to public sector
employers who are looking to add high value at
low cost.
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Purpose Statement In the passionate pursuit of
transforming our community, Herocare celebrates
the service, appreciates the sacrifice,
recognizes the needs and empowers our local
heroes to achieve their dreams of homeownership
and financial stability.
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SEYMOUR, TENNESSEEGEOGRAPHIC LOCATION

• Where is Seymour?
• Knoxville, TN 22 Miles
• Greenville, SC 138 Miles
• Atlanta, GA 196 Miles
• Nashville, TN 221 Miles
• Louisville, KY 286 Miles
• Birmingham, AL 297 Miles
• Cincinnati, OH 297 Miles
• Indianapolis, IN 400 Miles
• Memphis, TN 431 Miles
• Richmond, VA 435 Miles
• Washington, DC 488 Miles
• Jacksonville, FL 517 Miles
• St Louis, MO 525 Miles
• Jackson, MS 535 Miles
• Chicago, IL 582 Miles
• Miami, FL 862 Miles

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SEYMOUR, TENNESSEE
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SEYMOUR, TENNESSEE
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SEYMOUR, TENNESSEE
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SEYMOUR, TENNESSEEAREA

• Gatlinburg
• Gateway to Smoky Mountain National Park
• Key West with Flannel Shirts
• Mountain town with over 400 shops, live
  entertainment, dining
• Popular Walking Malls
• Pigeon Forge Sevierville (previously. Severe
  Ville)
• 10 Mile Strip called the Parkway the new
  International Drive
• Outlet Malls, Go-Kart tracks, Mini Golf,
  Dollywood, Themed Shopping
• Vegas-Style Family and Religious Oriented Dinner
  Shows Theaters (Dixie Stampede, Miracle,
  others).
• Sevier County is within a days drive of 50 of
  the US population.

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SEYMOUR, TENNESSEETOURISM

• Over 13 Million Visitors per year, often
  returning 2-4 times per year
• 50 of visitors travel up to 500 miles
• 33 of visitors stay between 4 and 7 Nights
• The Average couple spends 1,800 per trip
• Top Feeder Markets
• Cincinnati, OH / Birmingham, AL / Nashville, TN /
  Indianapolis, IN / Knoxville, TN /
  Greenville-Spartanburg, Asheville, NC / Atlanta,
  GA / Bristol, Kingsport, Johnson City, TN /
  Louisville, KY / Dayton, OH
• 1.2 Billion in Travel Expenditures in 2005.

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SEYMOUR, TENNESSEEATTRACTIONS

• Great Smoky Mountains National Park
• 9 Million Visitors Per Year, spending over 652MM
  in the surrounding areas
• Most of which arrive through Sevier County
• 1 Attraction in Tennessee
• Dollywood
• 2.4 Million Visitors Per Year
• 2 Attraction in Tennessee
• Ripleys Aquarium of the Smokies
• 2 Million Visitors Per Year
• Most Visited Aquarium in the U.S.
• Outlet Malls
• 4 Complexes (Tanger, Belz, PFFO)
• 1,141,030 Sqft of Shopping

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Mortgage Loan Summaries
Purchase Details
Investment Illustrations
18 Month Exit Outlook
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SEYMOUR, TENNESSEESUMMARY OF FEATURES

• Immediate Equity of 10 even with 100 financing!
• Triple-Digit Cash on Cash Returns
• Multiple Hold Strategies
• Resale Exit Strategy with 30-60 days avg Days on
  Market
• Low Risk of 1000 out of pocket
• Total Out of Pocket for full 18 months less than
  5000 while appreciating easily 10k/year
• Investing in Emerging Market
• Strong Demand Dynamics in Place