Dallas Presentation

DALLAS Presented By

Texas Cash Cow Investments

Why Invest In Dallas?

Dallas continues to remain among the leaders the United States in employment and population growth despite the overall economic state of the nation. Dallas is one of the only markets where you can still purchase a “better than new” home for under $140,000 and be in a positive cash flow situation.

Dallas is still one of the most undervalued real estate markets in the nation.

Texas State Fair

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Star’s Hockey

There’s America’s Team

The Dallas Museum of Art

Why do people want to live in Dallas?

Texas Motor Speedway And who could forget this guy…

THE EXPERTS AGREE ON TEXAS “Texas Housing prices are holding up.” “27% of all US jobs created in 2008 were in Texas.” “Energy activity is strong and exports are decreasing.” Mine Yucel / Federal Reserve Bank of Dallas “5-year forecast for the Dallas Market – 25% to 40% gain.” “Improving economy in the second half of 2008.” Lawrence Yun, PhD / Chief Economist National Association of REALTORS “Texas ranked No 1 in US job growth for 2008.” Susan Combs / Texas Comptroller of Public Accounts “Decline in housing starts is near the bottom.” “Favorable corporate profits and Oil prices are leveling out.” “Predicts economic recovery by early 2009.” Mark Dotzour / Chief Economist Real Estate Center Texas A&M

Dallas Real Estate Investing Facts… • The most recent Case-Shiller data shows Dallas as the strongest housing market of the top 20 markets! • Wells Fargo Economics estimates that Dallas median home prices will increase 3.0 percent in 2009! • Median home price $143,000. Median Family income $90,000. • Dallas/Ft Worth The local economy continues to show good relative performance compared to the rest of the country. Dallas Business Journal, March 2009 • The Dallas-Fort Worth market ranks second in a new survey of “America’s Top 100 Places to Live for 2009.” RelocateAmerica.com • Dallas ranked in the top 5 as most recession proof cities in America Fortune magazine’s April 29, 2008

Dallas Real Estate Investing Facts… • Overall cost of living is 7.06% below the national average! • No state income tax! • Unemployment rate in Dallas is below US average, 7.30 percent (U.S. avg. is 8.50%) • Dallas home prices are defying the odds by growing, while other areas across the U.S. are experiencing significant home price declines Dallas-Plano-Irving area grew 1.23 percent over the course of the past 12 national housing prices overall have fallen 12.2 percent in the 12-month period (Thursday, April 23, 2009 Dallas Business Journal)

• Dallas, Fort Worth Top Cities For Real Estate Investments (NBC Dallas-Fort Worth January 17, 2009)

• 52.55% of the DFW population rents, (National average is 28%) • It's unlikely that we'll see fewer than 3 million U.S. households in foreclosure in 2009. This amount of inventory, plus tax incentives and interest rates of 5.5 percent or less make the market a once-in-a-lifetime opportunity for people in a position to buy. RealtyTrac | Published: 1/01/2009

ome Prices Declining in Many Marke

Texas Job Growth Much Faster than U.S.

Although Cooling, the Dallas Economy remains Hottest in the Nation 

TX Foreclosure Rate Stabilizing

FOR SALE 136 Cliff Heights $117,000 Sales Price 20% Down Payment $526.00 First Year Monthly Cash Flow

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6229 Balcony Lane $113,000 Sales Price 20% Down Payment $519.00 First Year Monthly Cash Flow

FOR SALE

For Sale 1120 NE 5th Terrace $115,000 20% Down Payment $516.00 First Year Monthly Cash Flow!

Overview • Purchase distressed real estate properties at fraction of value via cash sale. • Appraisal of property is performed to ensure viable equity on investment. • Improvements are performed on property to maximize value. • Property is leased at maximum market rate. • Financing SECURED by in-house mortgage co. • Property is sold to investor with guaranteed positive cash flow. • Property management company in place for continued service and minimal effort on investors behalf.

Business Cycle Purchase

Property Management

Sold

Improvements

Lease

Financing

Business Model • We have built relationships with individuals that supply foreclosure and pre-foreclosure lists prior to being released to the general public. • Pricing is set at bottom dollar, no bidding, no cost to financial institutions for selling, advertising, etc. • Deals are in cash only, immediate closings, which financial institutions prefer. • Proprietor also owns a construction and supply company which greatly decreases rehab cost, thus maximizing equity. • Business Model is proven and functioning. • Savings are passed along to customers.

Why Purchase? • Properties are in better than new condition. • Properties are leased and cash flowing in most cases. • Property Management Company in place. • Direct contact with owners. • One year home warranty included on every property. • Construction company to help with future maintenance. • Referral Program.

INCENTIVE PROGRAMS 1 year FREE property Management! Home Warranty with “0” deductible for 1st year!

In-House Mortgage Program • Providing Mortgage Lending Services since 1998. • Dedicated and Committed to building relationships and providing superior customer service. • Specialized in financing investment properties. • Thousands of California/Texas investment transactions completed. • In-house funding, processing, underwriting and closing of loans. • Various products for primary and investment properties. • FHA approved Lender. • Average transaction can be completed within 10 days. • Competitive rates.

Economic Forecast • Job growth in 5 sections – oil and gas, construction, manufacturing, health and professional service jobs. • Job growth is directly proportionate to the demand for real estate. • DFW area added 91,000 jobs in last twelve months. • Interest rates are likely to stay at low levels until the end of the year. • Strong investment demand for real estate. • DFW will lead the state in economic prosperity throughout next three decades.

Texas Investments Fact: On a National Average, Dallas/Fort Worth ranks #1 in highest rate of return for investors on rental properties.

Why Be an Investor “ Most people spend their lives imprisoned by financial ignorance. It shows in their faces and in their attitudes, especially as they grow older. They begin to look like wild lions trapped in their cages, pacing back and forth while they mull over what happened to the life they once knew.” \ Robert T. Kiyosaki author “Rich Dad Poor Dad”

Why Be an Investor Intelligent Real Estate Investing is probably the greatest wealth creation vehicle of all time. Real Estate investing can be one of the most stable ways to generate passive and stable cash flow, so you can “retire”. Technically speaking, to retire you need a passive income stream that will replace your current job or business income. Real Estate investing, when performed well, after good education and good mentors, can provide that low stress lifestyle many dream of having yet few achieve.

Why should You become a Real Estate Investor? 

5 of 6 people attribute “financial success” to real estate.

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Grow Net Worth: Increased Cash Flow.

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Reduction of liabilities and debt.

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Appreciation - Increase in the property value.

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Real Estate Investing is the Cornerstone of most multimillionaire’s net worth, cash generation and cash flow.

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Tax Advantages.

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Minimal Investment, Maximum Profit.

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Allow tenant to pay off YOUR investment for you!

FINANCING INVESTMENT PROPERTIES

Investment Property Financing Maximum number of loans allowed for Investors

As of February 6th, Fannie Mae announced that as of March 1st they will open up the financing for Investment properties back to 10 total financed!

Investment Property Financing What type of loans are available for investors? 30, 20, 15, Year Fixed Rates 20 and 25 percent down options.

Cash Flow/Profits

“Net operating income minus debt service equals net Cash

Landlords/Management Companies

“Properly Managing your investment is the key to increasing your bottom line and maximizing PROFITS.”

Landlords/Management Companies What distinguishes a professional property manager from other landlords? They know all of the landlord/tenant laws for your city, state and federal government. They know rent values, vacancy factors and time on the market in your area. They have rental application and consistent screening policies that meet all of your legal obligations. They take the time to perform thorough move-in/move-out written inspections and routine property inspections. They personally know reputable painters, electricians, roofers, etc who are licensed, affordable and reliable. They effectively confront and negotiate with the tenant and enforce the terms of your rental agreement. They have the ability to recover NSF checks, evict tenants and collect bad debts.

Landlords/Management Companies For those investors who are considering self management.

The first thing you should advise your investor is to think twice about managing their investment properties themselves and consider using an experienced management company. Most investors have a full time career and usually do not have the time to baby-sit tenants. All it takes is one problem renter to convince them to use a professional. For those investors that insist on managing themselves, you as an agent can also help them with finding a renter for their property. You can list the property in MLS. If they do not want to use your services, remind them of the rates for cost of advertising and if house isn’t rented money is lost for the vacancy.