WHY WHY MINNEAPOLIS / MINNEAPOLIS / ST.PAUL?ST.PAUL?

The Perfect Storm of a Buyer’s Market, Low Rates, andPlentiful Renters

MINNEAPOLIS / ST. PAUL, MINNEAPOLIS / ST. PAUL, MNMN

Minnesota is one of the most undervalued markets throughout all of the country.

Knowing that over 40% of the population rents, the cities have become an attractive destination for investors seeking stable appreciation with positive cash flow. With the tremendous tax advantages associated with real estate, the opportunity Minnesota has to offer is second to none.

The main difference between the Twin Cities real estate market and other cities across the country is that here in Minnesota you can buy and renovate a property in the $60,000 range that will rent for $1,000 per month and appraise for $100,000.

Not only does this mean positive cash flow, but it also shows the tremendous opportunity the Minnesota real estate investing market has to offer.

5 C’S of REAL ESTATE INVESTING5 C’S of REAL ESTATE INVESTING

Competence - do you have a basic understanding of real estate investing or are you working with a person that does and is educating you?

Control - Are you in control of your emotions?  Make sure you are level headed and react from a standpoint of knowledge and not emotion.

Comprehension - Do you understand the market you are investing in, the exit strategies you are going to use and how those interact?

Consistency - Are you being consistent with your goals?  This is a common problem for some investors.  They begin to get “hooked” - almost like a chemical reaction and pretty soon they are buying properties based on completely different criteria than the ones they first set out.

Character -  Do things the right way – do not be afraid to stand your ground – and remember we are not in this to make friends, we are here to make money - every time!  An investor committed to excellence and with strong character, will be successful.

You see, when a person decides to invest in real estate they have to make sure that the motive is understood, the goals are clear and the exit strategy is in place.  Any place can be a fantastic city to invest in, but it is also a fantastic city in which one can lose money when you do not exhibit self control, and a solid comprehension of the area.  I am being totally honest when I say that if you do not have a level of competency that allows you to understand the basic concepts of investing or the fortitude of character to stay on the right path and not listen to others - then you shouldn’t be investing in real estate in the first place.  

MINNEAPOLIS / ST PAUL, MINNEAPOLIS / ST PAUL, MNMN

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The following are from the Urban Land Institute’s presentation of Emerging Trends for Real Estate in 2011, which pointed out several facts about the residential investment market in Minnesota.

1. Minnesota continues on a steady growth cycle in both job creation, new development and property value. The metropolitan area does not take wild rises or dips in these areas - just fairly steady growth and slight dips.

2. Minnesota is home to some of the country's great corporations including, United Health Group, Target Corp., Best Buy, 3M, Medtronic and US Bancorp. It's central location also makes Minneapolis / St. Paul a great business hub for many small to medium sized companies. It's easy access to rail lines, ports and world class airport make it the distribution capital of the mid-west which means a continued supply of quality jobs.

3. The Twin Cities area is once again at the top #1 of Market Watch’s list of best metro areas for business. The cost of housing ranks among the most affordable in the nation and well below national average. Minneapolis is ranked the #1 city to buy in from Trulia.com.

4. Vacancy rates continue to stay below the national average, while the percentage of Minnesotans renting their dwelling continues to grow. With over 40% of the cities population renting, the opportunity to keep an investment property occupied with a quality tenant remains high.

MINNEAPOLIS / ST. PAUL, MINNEAPOLIS / ST. PAUL, MNMNThe single biggest piece of information to come from the ULI's

presentation pertained to the way investors conduct their business in today's market.

It was clear that they wanted investors to know it was time to get back to basics “ Americana SFH / less is more”.

Building a strong internal team of investors and companies to work with will be key in the coming years. Building your own new investment company is paramount to the success of the individual investor .

New investment models are needed as old models have left the investors in properties with adjustable rate mortgages and management companies stripping there properties equity.

MINNEAPOLIS / ST PAUL, MINNEAPOLIS / ST PAUL, MNMN

Largest cities in Minnesota 16th largest in the nation with a

metro population of 3.2 Million There are 21 Fortune 500

companies in the state, including some of the world’s most recognized brands and firms

Recognized as one of the country’s most vibrant transportation & distribution centers.

Minneapolis International Airport is the 13th busiest airport in the world!!

Minneapolis/St Paul is ranked the cleanest and most literate city to “live in” in the United States.

Numerous suburbs of Minneapolis / St Paul are repeatedly ranked as the best places to live in the country.

Minneapolis / St Paul is a major center for medicine, biomedical engineering, biomedical research & pharmaceuticals.

Minnesota is home to 81 Universities and Colleges

Home to the Minnesota Vikings, Timberwolves, Twins and Wild sports Franchises.

Home to the Mall of America, Walker Art Center, Metro dome, Graves 601 Hotel, Museums, Minneapolis State Fair, some of the countries best lakes (over 11,000) and parks and is known as the cultural arts center of the mid-west.

Minneapolis / St Paul is indeed a city on the move with over 600,000 in population increases every year!

Minnesota Real Estate Minnesota Real Estate MarketMarket The #1 City to live in the United States! (CNNMoney.com) This fabulous city is proud to be rated year after year as one of the

top cities to live in the entire U.S., this based on economics, safety and cleanliness.

The #1 City where to buy – and where to rent (CNNMoney.com) The 3rd most undervalued metropolitan market in the U.S.

(CNNMoney.com) Almost every suburb, is ranked amongst Top 100 cities in America

in previous years(CNNMoney.com) A revitalization to many parts of Minneapolis / St. Paul, i.e.

Downtown, Up-Town, Calhoun Square, Lake Harriett, River Walk, and other inner city areas are enjoying above average appreciation

One of the lowest cost of living of all major cities (FORTUNE magazine)

Surrounding cities support continued manufacturing development with Minneapolis / St. Paul as the distribution hub

Recent Subprime foreclosure market has resulted in a tremendous Renter Pool

HERE’S AN EXAMPLE…HERE’S AN EXAMPLE…

This is a great house that was purchased for $20,000 and rehabbed for $35,000. This house now appraises at $100,000 and would sell on the open market for that price. It has 3 bedrooms and 2 full baths with 1600 sq. ft. of living space. Rent is $1100 per month.

VERY HOT RENTAL MARKET W/ 3 BEDROOMSVERY HOT RENTAL MARKET W/ 3 BEDROOMS

Here’s a 3Br/2BA with a 1 car garage. The property is currently for sale at $14,000. This is in a great rental area! Rehab will cost around $35,000 top to bottom. Average rent for this property will run around $1000 per month.

ANOTHER ONEANOTHER ONE

This 3Br/2Ba that is currently listed for $17,900 and rents for $1095/m. This home is in St. Paul, MN and has great schools and great appreciation.

HERE ARE AVERAGE RENTS AS OF 01/06/2011HERE ARE AVERAGE RENTS AS OF 01/06/2011

Jan 6 - $1200 / 4br - Section 8 Approved - Big 4 Bedroom Duplex - Near Busline - Cats Ok - (St Paul) img

Jan 6 - $1350 / 3br - 3br, 3ba Update Townhouse - (St Louis Park) pic

Jan 6 - $950 / 3br - Cats Welcome in this Cozy 3 Bedroom Duplex - Section 8 Approved - (St Paul) img

Jan 6 - $1125 / 3br - Rent me I am really cute! - (Saint Paul - Beaver Lake/Sunray) img

Jan 6 - $1150 / 4br - Pets Welcome - MOVE IN SPECIAL - 4 Br HOUSE - Hardwood Floors - (N Mpls) img

Jan 6 - $950 / 3br - 3 Bedroom Duplex with Off Street Parking - Move In Special - Cats Ok - (N Mpls) img

Jan 6 - $850 / 4br - Great Opportunity!!! Contract for Deed or Rent to Own ONLY !!! - (3618 Queen Avenue N) img

Jan 6 - $1050 / 3br - 3 Br HOUSE - Fenced Yard - Section 8 Ok - Pets Welcome - (N Mpls) img

Jan 6 - $1294 / 3br - Patio Home on the Marsh - (Hopkins)

Jan 6 - $1775 / 4br - 4BR/2BA "HISTORICAL UPDATED HOME" - (Chaska) img

Jan 6 - $3250 / 6br - 6BR/4BA "GORGEOUS HOME" on the 14th hole of Olympic Hills! - (Eden Prairie) img

Jan 6 - $1250 / 3br - Great NE Mpls Duplex Rent to Own or Contract for Deed Only - (2309 6th Street NE, Minneapolis) img

Jan 6 - $1395 / 3br - 3BR/2BA "SPACIOUS TOWN HOME" - (Minneapolis) img

Jan 6 - $1250 / 5br - Lovely 5 Bedroom House - Deck - Laundry Area - Pets Welcome - (St Paul) img

Jan 6 - $950 / 3br - Great Location - 3 & 4 Bedrms - Section 8 Approved - Cats Welcome - (St Paul) img

Jan 6 - $1950 / 4br - 4BR/2BA "FANTASTIC HOME" on Large Corner Lot - (Cottage Grove) img

Jan 6 - $675 / 3br - [[[[[3 bedroom house]]]]] - (faribault area) pic

Jan 6 - $1450 / 3br - Large executive townhome, 3BR, 3BA, prime location, updates throughout - (97XX Belmont Lane, Eden Prairie) pic

Jan 6 - $1150 / 3br - 3 Bedroom/2 Bath Twin Home - (Oakdale/North St. Paul/ Maplewood) pic

Jan 6 - $1275 / 3br - Beautiful West St Paul 3BR 1.5BA home, large fenced back yard 2 car g - (17xx Charlton Street West) pic

Jan 6 - $1150 / 4br - Cats Welcome - Nice House 4 br 1 1/2 baths - Section 8 Ok - (St Paul) img

Jan 6 - $1575 / 3br - 3BR/2BA "VINTAGE 2-STORY HOME" - (St. Louis Park) img

Jan 6 - $1350 / 3br - 3 BR home in a great location - Minnehaha Creek - (St. Louis Park, MN) pic

WHO CAN BENEFIT FROM WORKING WITH WHO CAN BENEFIT FROM WORKING WITH US! US!

Individuals with liquid cash to inject into immediate purchases

Investors with Cash, IRA or other Investment funds

Financial planners that have clients looking for better returns on investment

Entrepreneurs looking to grow a non retail business

WHO WE ARE LOOKING TO WORK WITH AND WHO WE ARE LOOKING TO WORK WITH AND MINIMUM REQUIREMENTSMINIMUM REQUIREMENTS

We are looking to work with Individuals that have access to liquid cash.

We are looking to work with individuals that are prequalified for financing.

Minimum *partner cash injection is $190,000 for first set of three homes.

Minimum investor single purchase is $70,000 per home.

Common Questions and AnswersCommon Questions and AnswersNote: These are general answers based on questions received. We will address all direct questions based on prequalification of

individual investor. Please respect the fact that we are here to work with investors to make money together. We are not here to teach any group or individual “How To” do what we do. If you do not have money or prequalified credit please refrain from contact.

1. If I partner with the company What happens with my initial investment of $190,000?: * Note: Initial Investment will be for three houses and renovation at the same time. Not one at a time until sold. We purchase in groups of three to maximize the savings from purchasing and worker renovations. But also so that we have multiple projects going during the 90 day period to maximize the Buyer / Investor / Rental / Real Estate Company interests in our homes. We will project 3 homes per quarter “90 Days” Bought / Renovated / Rented or Sold for conservative use and partnership projections.

2. What is the average purchase price of a house? Average Purchase price is $20,000 USD. Some houses will be more or less based on the condition. But buying three at a time allows us to keep the price points on the lower side. Also as the Real Estate agency we are paid commissions from the selling bank at an average of $1,000-2,000 per home.

3. What is the cost of renovation per home? Average cost runs $40,000 USD per home, but again will be more or less but not to exceed $40,000 per unit max totaled over the three units. The pay outs for the renovations are based on the project completion stages, when work is completed; documented and inspected the construction companies will receive payment from us within 7 days. Average for three homes completely renovated from start to finish should not exceed 45 – 60 days as the construction companies based on areas assigned will be able to perform back to back work without delays that would happen if just working on one home. (Example: Plumbers, Electricians, Drywallers, Siding, Roofing, Windows, Doors, Carpeting, Cabinets and Painters will rotate between the three houses at different stages.)

4. How long is the delay before a house is rented or sold? When we are purchasing a home, part of the partnership is the immediate marketing for that property.

Rental: When a home is purchased for portfolio rental, we treat the property as we would any other. The difference is the home would be marketed for rent from the date of purchase to potential renters and buyers alike. A sign would immediately be placed in the front Yard advertising our company and services. The property would also be placed on the MLS (Multiple listing Service), Trulia and several other real estate listing sites. A rental advertisement would be created and placed on craigslist as well as through the section 8 and state low income housing sites. The goal is to have renters viewing the property while renovations are being completed to lock them into a rental contract before the renovations are done. But it could take additional time possibly, but this is doubtful as renters would be comparing our completely new property to older units throughout the area.

• Purchase for Resell: When a home is purchased for Resell, we treat the property as we would any other. The difference is the home would be marketed for sale from the date of purchase to potential investors and buyers alike. A sign would immediately be placed in the front Yard advertising our company and services. The property would also be placed on the MLS (Multiple listing Service), Trulia and several other real estate listing sites. The goal is to have buyers viewing the property while renovations are being completed to lock them into a purchase contract before the renovations are done. But it could take additional time possibly, but this is doubtful as buyers / investors would be comparing our completely new property to older units throughout the area. *Note: We will also be using these properties to brand our company and website to other investors for potential property sales and future growth of this business model.

5. How Long does it take to sell the homes? If you follow my blog you will know that it is a nationwide average of 66 days for completely renovated to new REO investment flip homes. Compared to regular for sale by owner, non renovated homes averaging 222 days.

We can reduce this number with our partnership by co branding the company Website, Renovation, Investment and Real Estate services as turnkey purchases to Investors, Note Buyers, Rent to own Buyers and the General public. This is why I am looking to launch the Real Estate office openings with the purchase of the first three MN homes. Immediately launching the two at the same time will allow for company branding, recruitment of new investors, buyers and agents for us. The name of the real estate firm we will be licensed under is www.nextageadvantage.com

6. How much do we rent the homes for? $1,100 USD per month

7. How much do we sale the homes for? $100,000 USD Average

8. What additional monthly charges would there be for a rental home? Property insurance (USD 900 / year), property taxes (USD 1,250 / year), utilities (USD 300 / year), maintenance (USD 360 / year), property management (USD 1,250 / year)

9. If I invest $190,000 only once, how many homes and how much would I really make? This answer is based on the fact of a one time cash injection and No dividend payments over a 15 year period.

You would have 40 SFH properties in your portfolio, These homes would generate $44,000 USD monthly, and an amount of USD 1,289,190 in cash is available at end of 2025 (year #15).

*Note: This does not account for equity in the properties or appreciation of the properties over the 15 year period. Average appreciation has been between 6-8% annually.

10. Can I make a monthly residual income with this investment opportunity? Yes as a partner you are entitled to 50% of all monthly rental income generated at any time. Every time a new rental property is added over time your monthly check increases. Simply open the mailbox on the 10th of every month.

Listed below is a breakdown of the house buying if invested by April 2011 till end of 2012:– Year 2011 (April) House 1, 2, 3 are bought / renovated. House 1 is rented / house 2 and 3 are

resold. Cash from sales is used to purchase 4, 5 and 6th house and start renovations in 2011.- Year 2012: house 1, 4 is rented out / house 7, 8 and 9 are bought / renovated and house 7 is rented

out / house 8 and 9 are sold. Cash from sales is used to purchase / renovate 10, 11 and 12th house. House 10 is rented / house 11 and 12 are resold. Cash from sales is used to purchase / renovate 13, 14 and 15th house. House 13 is rented / house 14 and 15 are resold.

And so on………every year after this

FOR POTENTIAL FOR POTENTIAL PARTNERSHIP:PARTNERSHIP:

Adam Boroughs

“Let’s Start Building our Business… Today!!”

For Adam Boroughs

mn.equityproject@gmail.comhttp://adamaboroughs.blogspot.com

http://www.linkedin.com/in/adamboroughsSkype: adamboroughs

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