InvestIngCommercial

Residential &

S p r i n g E d i t i o n 2 0 1 3

Signature Project:

Kilcooley Abbey Estate Tipperary IrelandLocated in South Tipperary, Killcooley Abbey Estate has oc-cupied a pictured & storied location among the Slieveardagh Hills with commanding views of over 1250 acres of wooded mature parkland, Tipperary & Kikenny. This majestic estate mansion was built by Sir William Barker in 1790 and passed on to his nephew Chambre Brabazon Ponsonby serving as home to the Ponsonby family from 1770 until 2008.

A vast portion of the Estate was built between 1967 and 1976 to re-house people displaced from inner city areas of Belfast. While the main house is a stunning 18th century mansion, the property also comprises a traditional stable yard with stables, a 9.8 acre lake, boathouse, extensive lawns, a walled garden, old Cistercian abbey as well as a number of dwellings dispersed among the forestry lands. Rebuilt in the 1830s due to a fire and subsequently refur-bished in 1910 and 1935. The house is approached by a long driveway, which passes through shady woodland and leads to a wide forecourt with stone steps leading up to the front door. The residence boasts an impressive 25,000 square feet on two stories. An amazing front entrance hall with a soaring ornate plaster ceiling greets you, along with a large oak fireplace, glazed dome and carved oak walls. The hall is floored in oak parquet tiles.

Highlights

• 1250 Acres in parkland setting• 53 rooms, 7 reception areas, 11 baths,• 2 kitchens, utility area & basement.• 15 stables, tack rooms, groom quarters• Medieval fortified abbey & old stone buildings• 9.8 acre lake, boathouse & forestry lands

The Abbey is located just 500 yards from the house and it was founded in 1182 by DonalMor O’Brien. It burnt down in 1445 and rebuilt and today it is a National Monument close to the ancient pilgrim route to Cashel and full of interesting carvings.

Foreclosed properties are at record levels and the opportunity for private and institutional investors to capitalize in the market conditions are ideal. The analysis of a residential

real estate markets can be tricky, especially when a great number of both institutional and private investors are flooding the market with multiple offers on the already low real estate inventory driving up prices and creating uncertain market evaluations throughout the country. So, how do you really know if you are getting a good deal when you purchase? What do you need to be looking out for when you analyze your real estate markets? Well, we put together a list of the most important aspects of a real estate market analysis for anyone to consider before purchasing a single-family investment. Buying residential real estate, especially income producing properties has many advantages and should be considered especially if you as an investor are aware of the management responsibilities. There are several important factors to consider in any residential real estate market in order to minimize your risk and exposure to market changes. You should never make any investment without really understanding the nature of the risks involved. And it’s important to avoid the mistake of today’s bias, which leads to buying yester-day’s winners at high prices and selling yesterday’s losers at low prices. To avoid that error, you have to know both the historical evidence and actual evidence that leads you to make an informed investment decision.

Real House Prices.

One of the most intriguing questions at the moment is how to determine the real house prices before making an offer for a resi-dential real estate investment. Like everything else, house prices are set by supply and demand; but clearly, the supply situation in 2013 is very different that how it was in 2007. Real estate inventory for residential housing is very low regardless of the high foreclosure rates throughout the country. Banks are keeping the inventory at hand in order to avoid flooding the marketplace with excess of properties driving demand low and prices along with them so they must artificially manage the inventory that makes it to the market place in order to avoid another housing catastrophe. Make sure you take a look at the supply and demand conditions of the market

that you are considering investing. If you are planning to buy, fix and flip you must look at the demand in order to understand what your exit price will be. You also need to look at the supply and how much inventory is available in order to understand the likelihood of your offers being accepted. If your strategy is to buy and hold, then you have other factors such as price to rent ratios to consider before making an offer.

Price to Rent Ratios

This mathematical calculation is utilized to calculate the total cost of homeownership with the total cost of renting a similar prop-erty. We use this index to determine if the areas we are investing are worth purchasing today. When considering the total cost of homeownership the ratio includes, mortgage principal and interest payments, property taxes, insurance, closing costs, HOA dues if applicable and mortgage insurance costs. Tax advantages for own-ing are also an important factor to consider as part of total home ownership. The total cost of renting includes actual rent, renter’s insurance as the total cost of renting. These ratio uses the average list price with the average rent on a a similar property. The price to rent ratio is then calculated by dividing the average list price by the average yearly rent price, as follows. Price to rent ratio = Average list price / (Average rent * 12).

Price to rent ratios of 1 to 15 = much better to buy than rentPrice to rent ratios of 16 to 20 = typically better the rent than buyPrice to rent ratio of 21 or more= much better to rent than buyZillow has introduced the “breakeven horizon” which shows how

many years of homeownershp it would take before owning a home becomes more financially advantageous than renting the same home. It incorporates all possible costs and benefits associated with buying and owning a home as well as those for renting the same homes. HIS Capital Group has been investing in 4 out of the 5 markets with the lowest breakeven horizons and lowest price to rent ratios.

Plenty of experts are quick to throw a simple rent vs. buy index and tell you that if you live in, San Francisco, you should be rent-ing, while if you live in Detroit, buying makes more sense. Indices that look only at monthly rents and compare them to mortgage payments for similar units or homes are only looking at a tiny part of the overall picture. When you analyze a market place, you need to capture everything potential buyers, tenants and other investors will also consider.

Time horizon: How long you plan to stay in the home is one of the most important factors to consider when making rent vs. buy decisions and is a factor that is forgotten by many analyses using the simple price-rent ratios.

Future prices and rents: Look at the demand for ownership and the demand for rental housing. If there is a high number of foreclosures and default mortgages in the area, these homeowners will need a place to live which will drive rental housing up. Buying usually becomes more attractive as home prices are starting to stabilize (at least artificially) but with high foreclosures now rents are still going through the roof.

Tax deductions, Maintenance costs & transaction costs: Tax benefits are not the only reason for purchasing a home mortgage interest and property taxes are still a deduction when filing for federal and state taxes. There has been a lot of speculation over how the current administration may stop the tax benefit of mortgage inter-est payments but as of 2013 tax deductibility is a very nice perk. Homeownership is a “for better or sores” relationship. When you buy your house, you inherit all the good and the bad that comes with it. You are responsible for all the repairs and maintenance for your own place but on the good note, you are also entitled to paint your house, fix your yard, make holes in the walls and remodel as you wish. Homeownership also incurs additional expenses such as down payment, closing costs, escrow and title fees and other costs associated with your mortgage such as mortgage insurance. These factors should also be considered when you compare rent vs. buy options.

Our investment objectives take all of these factors and more into consideration when we move into a new market place. If you would like to learn more about our real estate investments and how to be part of the market opportunities, contact our office at info@hiscapitalgroup.com.

The More Things Change….Referrals are the life blood of most businesses, in fact they account for 65% of all new business generated. Over the past 10 years the HIS family of companies has relied on word of mouth as well as a host of strategic alliances to grow our business. Leveraging each other’s knowledge and resources, while encouraging and fostering growth in others.

Throughout the course of the year we will introduce you to some of our special referral partners and associates. These groups or individuals have a firm commitment to paying it forward, providing value and offer a variety of portals for others to learn, grow, and share techniques and strategies. This issue we feature a unique investment group which is quickly becoming the first stop for international investors seeking to invest not only in Florida but internationally. Our guest contributor: the Palm Beach Investors Association. THE MORE THINGS CHANGE…..BY ROBERT J. NOSEL, EXECUTIVE DIRECTORTHE PALM BEACH INVESTORS ASSOCIATION

We live in an era where technology has changed the landscape for investors all over the world. With the advent of smart phones, Cloud based servers, and a litany of other forms of media and communications, the investment possibilities are endless as well as potentially overwhelming. However, many strategies and methods used to acquire & protect our assets have remained the same. Strategies which have stood the test of time and continue to serve the savvy investor. Here is one such concept:

LAND TRUSTS

One such technique we use successfully is the LAND TRUST. A land trust is a revocable, living trust used specifically for holding title to real estate. The Land Trust consists of 3 parts:

BY ROBERT J. NOSEL, EXECUTIVE DIRECTORTHE PALM BEACH INVESTORS ASSOCIATION

1) The name of the trust holding fee simple title similar to an LLC or similar entity.

2) THE TRUSTEE or MANAGER is paid a fee to do business on behalf of the trust and can be as low as the parties set forth.

3) The BENEFICIARY who is the actual owner

There are several reasons we use land trusts but the ones that are important to us are: 1) Privacy – the trust agreement is not public record. 2) Protection from Liens - Real estate titled in a trust name is not

subject to liens against the beneficiary, trustee or manager of the trust. If real property titled into a land trust is sold, any personal judgments or liens of against the beneficiary, trustee or manager will not attach to the property. This effectively separates the owner or seller from the property.

3) Discouraging Litigation – We live in a litigious society where people tend to only sue others who appear to have money. Attorneys who work on contingency are only likely to take cases which they can not only win, but collect, since their fee is based on collection. If the property is not in your personal name and you are hard to locate, it affords you another layer of protection. Even if a potential party thinks you have assets, the difficult prospect of finding and attaching these assets will discourage litigation against you.

4) Transfer– Beneficiary’s interest can be transferred quickly without recording a deed. Partners can more easily continue a project if one dies or is divorced

This is one method we use to protect our assets, but REMEMBER….each of us is unique and what may apply to one investor or business might not be appropriate for another. AS ALWAYS, seek competent counsel.At The Palm Beach Investors Association, we wish you success in your investing world!Please visit us at www.palmbeachia.com.

******HIS and its family of companies urges all investors to consult with legal, financial and accounting professionals in your state before utilizing any acquisition strategy.

Progress ReportFew states were hit by the burst of real estate bubble

as significantly as Florida. Following the housing crisis over 323 thousand foreclosure notices were issued

in 2010 in this state alone. As a result, many families lost the roof above their heads and were robbed of their chance to pursue the American Dream. With foreclosure notices tainting the credit history of the newly displaced families, the search for replacement property became a nearly impossible feat. Banks and lenders, on the other hand, were left with vacant properties, most of which have remained so to this day.

In the midst of this despairing situation, certain prudent investment groups are forming alliances to capitalize on this historical window of opportunity. HIS Capital Group, LLC along with various strategic partners, have joining forces in an aggressive effort to revitalize Communities located in the Florida real estate market. Their plan is to firstly focus on the areas that were hit by the crisis the most - some of the locations identified in their research were counties such as Pasco, Hillsborough, Polk, Pinellas, Orange and Lee. The hope is to stimulate the communities while offering renovated affordable housing to residents in the area.

Though the company has been acquiring, renovating and leasing or retailing properties for some time now, HIS Capital Group, is launching a new campaign this 2013 that will offer a true “Win” “Win” opportunity to the community. This year HIS Capital Group is launching a true “Seller Financing” Program that will assist individu-als, that were affected by the real estate correction in 2008, to realize the “American Dream.”

HIS Capital Group is acquiring inventory, renovating these assets and putting them back on the market with a seller financing program. The unique value of our approach is that we offer ordinary people the oppor-tunity to:• Bad Credit OK: Qualify for financing on a house

without judging them based on bad credit.• True Credit Repair: Repair their credit! As they pay,

our servicing company reports good payments to the three major credit agencies.

Seller Financing Benefits:• Bad Credit OK: Though a credit report and background

check will be obtained, HIS Capital Group and its part-ners will not be concerned about bad credit ratings.

• True Credit Repair: Every month that the owner makes a payment on time, the servicing company will report the good standing payment to the three major credit agencies. This approach will empower people to rebuild their credit while already living the “American Dream.”

• No Short-Term Loans: The owner will be financed over 15 years with a 10 year balloon giving them a real chance to rebuild and refinance with lower rates. HIS Capital Group believes that this approach will not

only benefit the security and overall return of the inves-tors, but the end user will also have an opportunity that just is not available in the market place. More details and updates will be released by the end of the second quarter 2013. To learn more about HIS Capital Group, LLC and our real estate investment group, contact our office directly at (877) 452-6569.

Alex Lin

We have been fortunate to grow favorably, the last several years and much of this is due to our loyal client base and referral partners. As a way of showing our appreciation each quarter we will award a cruise for two to the individual. Who refers the most names of family, friends & colleagues by simply submit-ting the names & contact information of those you know, like yourself that want to make their money work hard & enjoy a generous return . We will take care of the rest, and update you along the way. For more details just call us at 877-452-6569 ext 118 or email us @ info@HIScapitalgroup.com.

The Bottom Line:

We provide everything you need!

www.HISCapitalGroup.com

We provide you the education, research, maps, data, tools, opportunities, process, due diligence checklists, and

contacts, along with personal, financial, and asset portfolio tracking and analysis to help you chose the right income-producing assets to add to your portfolio.

Our resource center is available for your support regarding investment state-ments OR online portfolio access. Feel free to give us a call at (877) 452-6569 Option 1 or email us at investor@hiscapitalgroup.com, our expert’s are available 24/7 for your HELP & SUPPORT.

LET OUR SERVICE SHINE

YOU COULd BE THE ONE . . .

Let us take your dreams to reality, if you are tired of earning low interest in CD’s, Stocks and Bonds? Let us show you how to make your money work for you safely through income producing real estate. Don’t hassle just call us at (877) 452-6569 Option 4 for the investor relation department or go to (877) 452-6569 Option 4. For more details please visit our web site support@hiscapitalgroup.com.

WE THINk BIg WITH YOUR dREamS