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Potential profits from north dakota oil boom

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Page 1: Potential profits from north dakota oil boom
Page 2: Potential profits from north dakota oil boom

The purpose of the information is educational in nature only. Any financial information presented here is for example purposes only.

The ideas and opinions expressed in this presentation are those of the presenter only. The presenter is not an attorney, tax expert, or investment advisor. If you have any legal or tax questions about this information you should consult an attorney, tax expert, or your investment advisor.

Every attempt has been made to present factual information. However, there is risk associated with investments and you are advised to do your own due diligence and seek appropriate council. There are no guarantees of returns expressed or implied.

Page 3: Potential profits from north dakota oil boom

The Bakken Shale deposit has been known and even tapped on occasion for decades. But technological improvements

in the past two years have taken what was once a small, marginally profitable field and turned it into one of the

fastest-growing oil-producing areas in the U.S.

Page 4: Potential profits from north dakota oil boom

Why Should You Listen To Me, Donald Loyd?

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Page 5: Potential profits from north dakota oil boom

Why Should You Listen To Me, Donald Loyd?

President & CEO of Crown Tree Marketing, Inc.

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Page 6: Potential profits from north dakota oil boom

Why Should You Listen To Me, Donald Loyd?

President & CEO of Crown Tree Marketing, Inc.

Buying, Selling and Developing Real Estate for 38 years

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Page 7: Potential profits from north dakota oil boom

Why Should You Listen To Me, Donald Loyd?

President & CEO of Crown Tree Marketing, Inc.

Buying, Selling and Developing Real Estate for 38 years

Author of Four Books on Real Estate Investing

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Page 8: Potential profits from north dakota oil boom

Why Should You Listen To Me, Donald Loyd?

President & CEO of Crown Tree Marketing, Inc.

Buying, Selling and Developing Real Estate for 38 years

Author of Four Books on Real Estate Investing

Written Hundreds of Articles on Real Estate

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Page 9: Potential profits from north dakota oil boom

Why Should You Listen To Me, Donald Loyd?

President & CEO of Crown Tree Marketing, Inc.

Buying, Selling and Developing Real Estate for 38 years

Author of Four Books on Real Estate Investing

Written Hundreds of Articles on Real Estate

Managing Real Estate Broker for 20 years

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Page 10: Potential profits from north dakota oil boom

Why Should You Listen To Me, Donald Loyd?

President & CEO of Crown Tree Marketing, Inc.

Buying, Selling and Developing Real Estate for 38 years

Author of Four Books on Real Estate Investing

Written Hundreds of Articles on Real Estate

Managing Real Estate Broker for 20 years

Have “Boots on the Ground” Experience in ND Real Estate and Building

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Page 11: Potential profits from north dakota oil boom

Why Should You Listen To Me, Donald Loyd?

President & CEO of Crown Tree Marketing, Inc.

Buying, Selling and Developing Real Estate for 38 years

Author of Four Books on Real Estate Investing

Written Hundreds of Articles on Real Estate

Managing Real Estate Broker for 20 years

Have “Boots on the Ground” Experience in ND Real Estate and Building

Teach Real Estate Investing Principles in Live Classes

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Page 12: Potential profits from north dakota oil boom

Don’s Investment Philosophy:

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Page 13: Potential profits from north dakota oil boom

Don’s Investment Philosophy:

1. There is risk in investing money - avoid get rich

quick scams

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Page 14: Potential profits from north dakota oil boom

Don’s Investment Philosophy:

1. There is risk in investing money - avoid get rich

quick scams

2. There is also risk in doing nothing

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Page 15: Potential profits from north dakota oil boom

Don’s Investment Philosophy:

1. There is risk in investing money - avoid get rich

quick scams

2. There is also risk in doing nothing

3. Limit the risk by spreading investment dollars and doing due diligence

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Page 16: Potential profits from north dakota oil boom

Don’s Investment Philosophy:

1. There is risk in investing money - avoid get rich

quick scams

2. There is also risk in doing nothing

3. Limit the risk by spreading investment dollars and doing due diligence

4. Know going in what the costs is & estimate possible returns

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Page 17: Potential profits from north dakota oil boom

Don’s Investment Philosophy:

1. There is risk in investing money - avoid get rich

quick scams

2. There is also risk in doing nothing

3. Limit the risk by spreading investment dollars and doing due diligence

4. Know going in what the costs is & estimate possible returns

5. Create an exit strategy

17

Page 18: Potential profits from north dakota oil boom

Don’s Investment Philosophy:

1. There is risk in investing money - avoid get rich

quick scams

2. There is also risk in doing nothing

3. Limit the risk by spreading investment dollars and doing due diligence

4. Know going in what the costs is & estimate possible returns

5. Create an exit strategy

6. Build a team that will get you where you want to go

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Page 19: Potential profits from north dakota oil boom

Don’s Investment Philosophy:

1. There is risk in investing money - avoid get rich

quick scams

2. There is also risk in doing nothing

3. Limit the risk by spreading investment dollars and doing due diligence

4. Know going in what the costs is & estimate possible returns

5. Create an exit strategy

6. Build a team that will get you where you want to go

7. Develop a Plan

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Page 20: Potential profits from north dakota oil boom

Don’s Investment Philosophy:

1. There is risk in investing money - avoid get rich

quick scams

2. There is also risk in doing nothing

3. Limit the risk by spreading investment dollars and doing due diligence

4. Know going in what the costs is & estimate possible returns

5. Create an exit strategy

6. Build a team that will get you where you want to go

7. Develop a Plan

8. Work Your Plan

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Page 21: Potential profits from north dakota oil boom

This approach leads to

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Page 22: Potential profits from north dakota oil boom

Don’s Personal System: Ask Four Basic Questions

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Page 23: Potential profits from north dakota oil boom

Don’s Personal System: Ask Four Basic Questions

R – Return? – How much wealth does this property create for me today?

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Page 24: Potential profits from north dakota oil boom

Don’s Personal System: Ask Four Basic Questions

R – Return? – How much wealth does this property create for me today?

I – Investment? – How much money out of my pocket will this take?

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Page 25: Potential profits from north dakota oil boom

Don’s Personal System: Ask Four Basic Questions

R – Return? – How much wealth does this property create for me today?

I – Investment? – How much money out of my pocket will this take?

C – Cash Back? – If I put money in, when do I get it back? The goal is to get your money back as soon as possible so you can do more investing.

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Page 26: Potential profits from north dakota oil boom

Don’s Personal System: Ask Four Basic Questions

R – Return? – How much wealth does this property create for me today?

I – Investment? – How much money out of my pocket will this take?

C – Cash Back? – If I put money in, when do I get it back? The goal is to get your money back as soon as possible so you can do more investing.

H – Holding Income? – Does the property have cash flow coming back to me the investor?

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Page 27: Potential profits from north dakota oil boom

This is possible as a result of . . .

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Page 28: Potential profits from north dakota oil boom

The Bakken Formation - Located in North West North Dakota

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Williston, ND is the Center of “Boom” Activity

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WHY Williston, ND?

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Page 32: Potential profits from north dakota oil boom

Oil Industry Booms -- in North Dakota

State Is Riding High as Firms Develop Better Ways to Tap Huge Bakken Shale Deposit, Raising Hopes for U.S. Production

(continued)

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Page 33: Potential profits from north dakota oil boom

A massive oil reserve buried two miles underground has put North Dakota at the center of a revolution in the U.S. oil industry, a shift that has radically altered the fortunes of this remote area. . . . the past two years have taken what was once a small, marginally profitable field and turned it into one of the fastest-

growing oil-producing areas in the U.S. 33

Page 34: Potential profits from north dakota oil boom

The U.S. Is Poised to Hit a New Oil Gusher

Oil drillers have their eye on a vast oil field in and around North Dakota, which promises a steady flow of domestic crude for years. (continued)

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Page 35: Potential profits from north dakota oil boom

A new black gold rush is under way, this time in North Dakota. The potential payoff is huge -- up to 100 billion barrels of oil. That’s twice the size of Alaska’s reserves and potentially enough to meet all U.S. oil needs for two decades.

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Page 36: Potential profits from north dakota oil boom

6/27/2011

Tycoon Says North Dakota Oil Field Will Yield 24 Billion Barrels, Among World's Biggest Billionaire Harold Hamm is convinced thereʼs 24 billion barrels of oil to be coaxed from the Bakken field of North Dakota and Montana.

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September 25, 2011

New Boom Reshapes Oil World, Rocks North Dakota

“Two years ago, America was importing about two thirds of its oil. Today, according to the Energy Information Administration, it imports less than half. And by 2017, investment bank Goldman Sachs predicts the US could be poised to pass Saudi Arabia and overtake Russia as the world's largest oil producer. “Places like Williston are the reason why.”

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Page 38: Potential profits from north dakota oil boom

September 25, 2011

“Williston has skipped the recession entirely. Unemployment there is less than 2 percent. The population, the mayor estimates, has grown from 12,000 to 20,000 in the last four years. "We actually have probably between 2,000 and 3,000 job openings in Williston right now," Koeser says.”

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Here’s the challenge:

"All the workers. And then you have roads and trucks and pipelines. And then you have all the community services that have to be provided — law enforcement, education. So it turns into a real bonanza in terms of income. . . ."

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Page 40: Potential profits from north dakota oil boom

Here’s the norm:

"When we came up here, we were told housing was tough but not impossible," Featheringill says. He and his wife got lucky and borrowed an RV from a family friend. . . . Most of the RV spots around here run $1,000 to $1,200. That's $1,000 a month, just for a parking space. Is that not amazing?" Featheringill says. "And that's in a 70-mile radius. Just to park your RV."

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Page 41: Potential profits from north dakota oil boom

April 20, 2010

“North Dakota has a novel problem: plenty of jobs, but nowhere to put the people who hold them. [I]n this city rising from the long empty stretches of North Dakota, hundreds are sleeping in their cars or living in motel rooms, pup tents and tiny campers meant for weekend getaways in warmer climes. They are staying on cots in offices and in sleeping bags in the concrete basements of people they barely know.”

“And the problem is certain to worsen….”

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Page 42: Potential profits from north dakota oil boom

0 August 23, 2010

“Federal housing secretary Shaun Donovan is visiting

Williston to get a firsthand look at western North Dakota’s

housing shortage. Williston and other western towns don’t

have enough places to live for people who have come in to

work in the oil fields.

“Gov. John Hoeven, Sen. Kent Conrad . . . . said most of the

new housing is going to have to come from private

developers.”*

*emphases added

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Page 43: Potential profits from north dakota oil boom

Hotel Online

News for the Hospitality Executive

September 28, 2011

“.... Across cities in sparsely populated North Dakota and Montana, hotels have no vacancies, apartment complexes are full, and RV parks are popping up to catch the overflow of oil field workers pouring into the area…..”

“North Dakota continued to lead the country in June with lowest state jobless rate of 3.2% . . . . thanks to the increased oil drilling and exploration.

“Help-wanted signs are everywhere, and just like in the 1980s, oilfield workers are being hired on the spot.”

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How To Take Advantage of the Housing Shortage

Current real estate conditions in Williston area

Development land overview

Development process overview

Selling developed lots

Costs

Pricing

IRA opportunites

Q&A

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