Bullseye Investments Presentation 8 2011

Investing In TheInvesting In TheUSAUSA

Bullseye Investment Group

B.I.G.

What We’ll CoverWhat We’ll Cover

Who Is Bullseye Investors Group B.I.GWho Is Bullseye Investors Group B.I.G Why Now Is The Best Time to Invest in Why Now Is The Best Time to Invest in

The USAThe USA Why Multi-Family and Commercial Why Multi-Family and Commercial

PropertiesProperties Market CyclesMarket Cycles

Bullseye Investment GroupBullseye Investment Group

Kal S. Takhar Principal

Who’s Kal Takhar?Who’s Kal Takhar?Completed the acquisition, developmentCompleted the acquisition, development

and sale of single family home and sale of single family home communities of nearly 1,000 units.communities of nearly 1,000 units.

20+ years of Real Estate Development 20+ years of Real Estate Development

California Real Estate Broker license 1995California Real Estate Broker license 1995

Started Small…..

Then Got B.I.G.Then Got B.I.G.

Why The USA?Why The USA?

Shrinking DollarShrinking Dollar

Dollar Bottoms at 7.5 Dollar Bottoms at 7.5 Year Historic FluctuationYear Historic Fluctuation

Why The USA?Why The USA?

America is Having a 50% America is Having a 50% Off Sale!!Off Sale!!

Val SklarovVal Sklarov

Historically Low Interest Rates

Economic CrisisEconomic Crisis

Association of Foreign Association of Foreign Investors in Real EstateInvestors in Real Estate

““The United States is one of the most The United States is one of the most “stable and secure” countries for RE “stable and secure” countries for RE Investment and one of the best Investment and one of the best opportunities for appreciation”opportunities for appreciation”

Why Multi-FamilyWhy Multi-FamilyRegardless of the housing bubble bursting, housing is always needed.

2nd quarter of 2011 shows sharp declines in national vacancies at 6% (Reis), the lowest since 2008 and compared with 7.8% a year earlier. Income, rental units are in high demand and that means higher occupancy and higher rents.

Vacancy rates are falling fast (the excess supply is being absorbed). A record low number of multi family units will be completed this year (2011) and production of these new units will not be completed until 2012 or 2013, so vacancy rates will probably decline at least the rest of the year. Upcoming construction most likely will remain limited due to financing available and exceptionally high governmental agency fees to construct units. Both occupancy and rental rates are increasing. The more money a property makes the more it is worth.

Why Multi-FamilyWhy Multi-Family

Cash Flow

Can provide a substantial positive cash flow. A well-chosen multifamily property can be a long-term positive cash-flow investment.

These cash flows create comfortable lives, retirements, and ongoing income for the entire holding period.

As value increases over time, the owner is also paying down the mortgage. This increases equity, and some investors borrow against it for leverage and more investments.


Quality Management

If you choose a full service package you can have complete peace of mind as your management service collects rents, maintains the property, handles emergencies of all sorts and can generally run your property as if it is their own. They will even pay your property taxes, pay the mortgage payment and prepare your annual budget as well as giving you reports at agreed-upon intervals. They can screen your prospective tenants for you, checking their credit and the references so that you can be sure you have the most reliable and stable renters or leasers and weeding out prospects that could cost you money instead of being an asset to your property. They will handle maintenance requests by residents as well as maintaining your grounds, your units and your equipment.

Property management services vary in their fees; some have a set charge per unit while others take a percentage of the rent.

Property management services offer as much service or as little as you wish.


Value AddValue Added is a strategy to purchase an apartment and enhance returns through increasing income. Like most groups seeking Value Added opportunities, Bullseye looks for properties where spending additional capital to make physical improvements can make a significant difference in the rent levels that can be obtained.

Opportunities to cosmetically refresh or reposition the living experience (interior or exterior) to obtain additional income and enhance returns.


Less RiskApartment investments offer relatively low risk combined with the ability to keep pace with or lead inflation through short-term leases. This allows for the potential for increasing income as the market rises. The latest Quarterly Survey of Apartment Market Conditions by the National Multi Housing Council (NMHC) confirms the general sense of strength in the apartment market. “Demand for apartment residences continues to rise, even as the overall economy remains hampered by the aftermath of the housing bubble,” said NMHC chief economist Mark Obrinsky in a statement accompanying the release of the report. All four survey measures by the NMHC of apartment market health in the second quarter of 2011 are quite strong. That is, markets are tighter, debt and equity capital are more available, and sales volume is rising. In fact, all four indexes were at or above 70—50 or above being the indication of improving conditions. Such sunny conditions have been fairly uncommon since the survey began in 1999, since this is only the fourth time ever that all the indexes have been above 70, and three of those instances have been since July 2010.


Highest DemandThe apartment sector shines as the healthiest commercial real estate property type. Forecasters expect multifamily property revenues to climb throughout 2011, thanks to moderate job growth and accelerating household creation.

The U.S. apartment vacancy rate topped out at 8% in the fourth quarter of 2009, but fell to 7.1% in the third quarter of 2010, and now 6% according to Reis. Look for rent growth and absorption to gain momentum in 2011 and beyond, say researchers. And, even though job growth has been relatively unimpressive as the U.S. has emerged from the recession, young adults, who tend to be renters rather than home buyers, are capturing a disproportionately larger share of the job additions. More specifically, the NMHC’s Market Tightness Index, which examines vacancies and rents, came in at 82, down from a record 90. This is the sixth straight quarter the index has topped 50. Though down slightly from last quarter’s record level, two-thirds of respondents noted tighter markets—meaning lower vacancies or higher rents or both—compared with three months earlier.

Why Multi-FamilyChanging Attitudes

From 1965 to 2005, homeownership rates grew steadily. In 2005, however, homeownership rates not only stopped growing, they reversed.

Had homeownership rates by age remained at 2005 levels, net renter household growth from 2005 to 2010 would have been just under 370,000.

Instead, renter household growth surged by nearly 4 million over this period, and the net dissolution of renter households over age 30 was just 1.8 million — fully 3 million less than expected. Housing experts say that Americans are less interested in owning a home. They're worried about paying, more than ever, too much and then suffering negative equity. And, those worries are compounded by a lack of confidence about their own financial position and lingering high unemployment rates. Moreover, stricter lending standards now require larger down payments, and for the past several years, Americans have spent rather than saved. As a result, they don't have the funds to make a down payment, so they rent. A survey commissioned by the National Apartment Association conducted in May 2010 found that 76 percent of consumers prefer renting to ownership, a 5 percent increase from 2008. “Very few households are exiting the apartment sector to make first-time home purchases,” says Greg Willett, vice president of MPF Research, a national firm that tracks apartment performance.

Why Multi-FamilyWhy Multi-FamilyEconomies of ScaleThat is where true wealth will be achieved for those willing to pursue it.

Compared to single family homes, multi-family or apartment buildings are far superior in terms of cash flow, but also far lower risk.

Multi-family investments benefit from economies of scale, which results in lower expenses per unit and higher overall cash flow. The more units in a complex the greater the economies of scale (up to a point), so in larger apartment investments the per unit expenses are lower leaving more income available for you. There is a greater reward for the perceived risk of investing in apartment buildings. Because they are at a higher price point than single family home, more dollars in value are generated in multi-family investments through appreciation. In a market appreciating at 10% per year a $150,000 single family home will go up in value $15,000, whereas a $2,000,000 apartment building in that same market will go up in value $200,000 during the same period of time.

5 Steps to Success5 Steps to Success

1)1) Attract the DealsAttract the Deals2)2) Analyzing Analyzing

2 DealsDeals2 MarketMarket

Creating OffersCreating Offers Management CompanyManagement Company Exit StrategyExit Strategy

Commercial Real EstateCommercial Real Estate

Crash is HappeningCrash is Happening

Opportunities for the Next Few YearsOpportunities for the Next Few YearsWe Haven’t Seen For DecadesWe Haven’t Seen For Decades

Market CyclesMarket Cycles Seller Market ISeller Market IRent rates in market have risen to the point that can support new constructionRent rates in market have risen to the point that can support new construction

Local investors are convinced good times are here to stayLocal investors are convinced good times are here to stay

Demand for investment properties are at their highest of any particular stage of the marketDemand for investment properties are at their highest of any particular stage of the market

As demand increases, the supply of investment properties for sale begins to dwindleAs demand increases, the supply of investment properties for sale begins to dwindle

Construction becomes rampantConstruction becomes rampant

Bidding wars start to take place as properties come on the marketBidding wars start to take place as properties come on the market

Buyers start offering above asking priceBuyers start offering above asking price

Speculation is in full swingSpeculation is in full swing

Employment continues to increase, wages continue to increase, construction at it’s heightEmployment continues to increase, wages continue to increase, construction at it’s height

Market CyclesMarket Cycles Seller Market IISeller Market IISeller’s Market Phase II is the riskiest phase of all four phasesSeller’s Market Phase II is the riskiest phase of all four phases

At beginning of this phase, time properties stay on the market starts to increaseAt beginning of this phase, time properties stay on the market starts to increase

Gone are the days when multiple offers are presented to properties as they come on the marketGone are the days when multiple offers are presented to properties as they come on the market

Investors are waiting longer for buyers in the beginning stages of this phaseInvestors are waiting longer for buyers in the beginning stages of this phase

Land is still being purchased for speculation and the amount of construction becomes excessiveLand is still being purchased for speculation and the amount of construction becomes excessive

As investors realize market is changing they begin to put more and more on the market As investors realize market is changing they begin to put more and more on the market

Number of days on market continues to increase and sellers begin to lower pricesNumber of days on market continues to increase and sellers begin to lower prices

This fuels the downward trend, which causes investors to put more and more on the marketThis fuels the downward trend, which causes investors to put more and more on the market

Job growth becomes stagnantJob growth becomes stagnant

Oversupply of properties available for saleOversupply of properties available for sale

Market CyclesMarket Cycles Buyers Market IBuyers Market IMarket is oversupplied -commercial properties – supply is one of the key forces that change a marketMarket is oversupplied -commercial properties – supply is one of the key forces that change a market

New construction will be overpriced and stagnantNew construction will be overpriced and stagnant

Local economy is on the back side of its own economic cycle. The dynamics of the market changeLocal economy is on the back side of its own economic cycle. The dynamics of the market change

Retail receipts are lower, office space becomes abundant, apartments start to see higher vacanciesRetail receipts are lower, office space becomes abundant, apartments start to see higher vacancies

It begins to take longer and longer to fill these spaces and pricing becomes softIt begins to take longer and longer to fill these spaces and pricing becomes soft

Unemployment will reach its height and investment property values will decline to the lowest levelsUnemployment will reach its height and investment property values will decline to the lowest levels

Bank foreclosures have risen to their highest levelsBank foreclosures have risen to their highest levels

Latter stages of this market is the competition for these bank owned properties becomes fierceLatter stages of this market is the competition for these bank owned properties becomes fierce

National & local investors now realize there is money to be made in this market & new investors begin National & local investors now realize there is money to be made in this market & new investors begin to invest in real estate for the first timeto invest in real estate for the first time

Market CyclesMarket Cycles Buyer Market IIBuyer Market IIMarket starts to absorb its oversupply as unemployment decreasesMarket starts to absorb its oversupply as unemployment decreases

Rental spaces begin to fill up and time on market for properties begins to declineRental spaces begin to fill up and time on market for properties begins to decline

Existing properties are being bought by investors who rehab and put them on marketExisting properties are being bought by investors who rehab and put them on market

More jobs accelerates this processMore jobs accelerates this process

At this stage there is little to no construction. Oversupply just starting to get absorbed At this stage there is little to no construction. Oversupply just starting to get absorbed

Competition for labor begins to increase, because of this, salaries begin to rise. Competition for labor begins to increase, because of this, salaries begin to rise.

More disposable income to be reinvested in to the community as purchase of goods and services fromMore disposable income to be reinvested in to the community as purchase of goods and services from

the community is on upward track.the community is on upward track.

A cycle of prosperity has begunA cycle of prosperity has begun

Buyer Market I

Seller Market II

Buyer Market II

Seller Market I

Buyer Market I

Market Cycle

Millionaire Maker!!Millionaire Maker!!

Proven knowledge and track Proven knowledge and track record of market placerecord of market place

Consistently Hit Our NumbersConsistently Hit Our Numbers

Higher Returns than most Higher Returns than most investmentsinvestments

Consistently CommunicateConsistently Communicate

Why Invest With B.I.G.?

Investment StrategyInvestment Strategy Focus on the repositioning or redevelopment of assets that are underperforming Focus on the repositioning or redevelopment of assets that are underperforming

due to their physical deterioration, functional obsolescence and/or operational due to their physical deterioration, functional obsolescence and/or operational constraints. Our investment objective is two fold. constraints. Our investment objective is two fold.

The first is to realize cash-flows from operations that provide annual cash The first is to realize cash-flows from operations that provide annual cash distributions to investors. distributions to investors.

The second is, providing year-after-year gains in value, allowing for additional The second is, providing year-after-year gains in value, allowing for additional cash distributions from either disposition or refinance. cash distributions from either disposition or refinance.

In general, B.I.G. takes a buy and hold approach to investing. However, the In general, B.I.G. takes a buy and hold approach to investing. However, the duration that we hold an asset is typically driven by the previously described duration that we hold an asset is typically driven by the previously described market cycles. The investment period can be anywhere from 3 to 5 years or market cycles. The investment period can be anywhere from 3 to 5 years or more.more.

We remain acutely aware of the market conditions in the areas that we invest and We remain acutely aware of the market conditions in the areas that we invest and are always looking for the next emerging market for our network of investors. are always looking for the next emerging market for our network of investors.

How do I invest?How do I invest? B.I.G. does not gather up capital and then proceed to acquire assets to where your B.I.G. does not gather up capital and then proceed to acquire assets to where your

investment is part of a pool or syndication.investment is part of a pool or syndication.

Instead, properties are identified in advance of your investment. This is achieved by B.I.G. Instead, properties are identified in advance of your investment. This is achieved by B.I.G. constantly seeking opportunities so that there are generally ample investments to choose constantly seeking opportunities so that there are generally ample investments to choose from in varying investment size.from in varying investment size.

B.I.G. can then provide you alternatives so that you can choose your investment individually B.I.G. can then provide you alternatives so that you can choose your investment individually at which time your equity ownership of the asset is negotiated and established prior to at which time your equity ownership of the asset is negotiated and established prior to acquisition versus being a part of a large pool of funds.acquisition versus being a part of a large pool of funds.

B.I.G. finds this to be more advantageous to the individual investor from standpoint of B.I.G. finds this to be more advantageous to the individual investor from standpoint of knowledge of potential return on investment as well as being able to identify the asset into knowledge of potential return on investment as well as being able to identify the asset into which the investor has specifically invested for tax purposes, etc.which the investor has specifically invested for tax purposes, etc.

You You mustmust complete a simple complete a simple Accredited Investor Disclosure FormAccredited Investor Disclosure Form (sample on next slide) and (sample on next slide) and submit to us prior to further discussing your investment.submit to us prior to further discussing your investment.

Shortly after submission of the Shortly after submission of the Accredited Investor Disclosure FormAccredited Investor Disclosure Form we can meet and discuss we can meet and discuss your investment goals. We then commence providing you with investment opportunities. your investment goals. We then commence providing you with investment opportunities.

Accredited Investor Disclosure FormAccredited Investor Disclosure Form

NameName _____________________________________________________________________________ _____________________________________________________________________________

StreetStreet _____________________________________________________________________________ _____________________________________________________________________________

CityCity StateState ZipZip _________________________________________ _________________________________________PhonePhone ______________________ ______________________

Net Worth CertificationNet Worth Certification I am a natural person whose individual net worth, or joint net worth with my spouse, I am a natural person whose individual net worth, or joint net worth with my spouse, at this time at this time excludingexcluding the value of my primary residence exceeds $1,000,000. the value of my primary residence exceeds $1,000,000.

Income CertificationIncome Certification I am a natural person who had an individual income in excess of $200,000 in each of the I am a natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with my spouse in excess of $300,000 in each of those years and I have a two most recent years or joint income with my spouse in excess of $300,000 in each of those years and I have a reasonable expectation of reaching the same income level in the current year. reasonable expectation of reaching the same income level in the current year.

Certification of Accredited Investor StatusCertification of Accredited Investor Status I have read and understand the meaning of "accredited investor" I have read and understand the meaning of "accredited investor" as described above and certify that I meet at least one of the requirement shown above as defined in Regulation as described above and certify that I meet at least one of the requirement shown above as defined in Regulation D of the Securities & Exchange Commission. D of the Securities & Exchange Commission.

Certification of Information SubmittedCertification of Information Submitted I certify that all the information submitted is true and correct. I certify that all the information submitted is true and correct.

I am interested in information on the Investment . I am interested in information on the Investment . Please Contact Me Please Contact Me

__________________________________________________________________________________ ____________________________________________ SignatureSignature DateDate

Who Invests WithWho Invests WithB.I.GB.I.G

High Net Worth IndividualsHigh Net Worth Individuals

InstitutionsInstitutions

Economy & Finance

Bullseye Investments Presentation 8 2011