SEVIERVILLE Investment2

Tennessee Real Estate Opportunity: 

Tennessee Real Estate Opportunity

SEVIERVILLE, TENNESSEE: 

SEVIERVILLE, TENNESSEE 100% Financed New Construction Program

Purpose & Disclaimer: 

Purpose & Disclaimer This presentation was created to assist you, the investor, in understanding the steps involved in procuring an investment property. It is intended to be a model of the investment process, subject to change without notice, and is only to be used as a guide during this process. Nothing in this presentation should be considered to be a guarantee of results or market conditions.

Low Cost, High Return: 

Among the various investment programs we offer, the highest return, lowest risk investment we offer is a 100% Financed New Construction Loan for Single-Family Spec Homes. That’s right, no money out of pocket and a 10-20% conservative estimated return on the loan amount based off historical returns. Our services include finding the lot, preparing the contract with the builder, and getting you in touch with the mortgage specialists that handle these loans. We can also list this property for you when it comes time to sell, or manage the property as a rental property. We offer a 4-6 month Construction Loan Program that basically gives you, the investor, 6 months to sell your investment home at market value, or place renters in to the home before ever assuming the mortgage. Exit and hold strategies are currently in place to assist investors in the best chances for success for renting or selling the property at the completion of construction. Low Cost, High Return

Leverage to Increase Your Returns: 

Leverage to Increase Your Returns How the program works: Normally, if you partake in a construction loan in other markets, you generally put 10% down, pay for closing costs, and pay monthly construction interest payments. A few lenders can and will finance investors at the 100% level. How is this done? The lend off 90% of the appraised value of the land plus improvements. If there is enough difference in the total cost compared to the appraised value, the lender will allow you to wrap in the lot price, all the closing costs, construction interest, the construction, upgrades, etc. Because we have negotiated a below market build price with a volume builder, there is enough immediate equity to allow investors to include all costs except $1000-2000 in out of pocket expenses. The timeline for building this spec home is 4-6 months and the mortgage we help you obtain allows for 6-12 months. Total cost of construction interest reserve is based on a 6 month build time

How do I get started?: 

How do I get started? Please read the following steps involved to get started! STEP 1: As an investor, it is necessary for the preferred mortgage company to determine your financial history and financial qualifications for this opportunity. This company will need to obtain a complete residential mortgage application, which will include information provided by three independent credit reporting agencies, asset and income information, work, and residential history, and other necessary information. STEP 2: Upon review of the application, if satisfactory to meet the lender’s criteria for financing, Cash Flow Bargains will then assist in providing the investor with a list of available lots and and house models.

Get Pre-Approved to be assigned a lot! First Come, First Served.: 

Get Pre-Approved to be assigned a lot! First Come, First Served. MOUNTAIN VIEW LOTS ARE IN HIGH DEMAND! STEP 3: Once the appropriate lot and model is chosen, a contract for land purchase is drawn and sent to the investor to be signed. The realtor will provide expertise relative to the lot’s location and estimated value. STEP 4: Once the bid is accepted and both the Seller’s and the Buyer’s signatures are on the contract, the time clock has begun. Depending on the lot’s location, a deposit is required to be sent to the title company within 5 days or less. STEP 5: At this point, the investor will determine which home model to build, along with selecting any available upgrades to the model home. STEP 6: The Builder, will review the home and the listed upgrades to determine if acceptable and if so, the price for the building of the home. Once a contract is agreed upon, the selected mortgage company will seek to obtain mortgage financing for the Investor.

Construction Begins in 45 Days or Less from Pre-Approval: 

Construction Begins in 45 Days or Less from Pre-Approval STEP 7: An appraisal will be done, which is one of the only up front expenses (approximately $400). Appraised Values are expected at $250,000+ STEP 8: The Broker will obtain a construction loan for the lot, home, and improvements. STEP 9: During the construction period of 4-6 months, the investor should be aware of market conditions and changes and prepare for the appropriate exit strategy, whether it be selling the home or holding onto the property as a rental property. The above steps provide a reasonable estimate of the investment process. However, each particular transaction is unique, especially since every investor is unique- based on credit history and market conditions. We do not guarantee any specific time frame, costs incurred, quality of services provided, or results from this investment.

SEVIERVILLE, TENNESSEESUMMARY ILLUSTRATION: 

SEVIERVILLE, TENNESSEE SUMMARY ILLUSTRATION Typical Lot (varies) = $47,000 Typical Model Price = $158,000 Net Home Price = $205,000 Closing Cost on Loan = $9,200 Construction Interest = $6,000 Total Costs to Build = $220,000 Total Loan Amount = $220,000 (90% LTV) Appraisal = $250,000 Total out of pocket = $1000-$1700 Approximate Equity at Closing = $30,000 Annual Appreciation if @ 10% = $25,000* Estimated Equity in 12 Months = $55,000* With $1000 upfront and $4200 expenses for 1st year = $5200 total, unless sold upon completion Yields a Cash on Cash Return of Approx. 450% Deer Creek Model - Sevierville, Tennessee

SEVIERVILLE, TENNESSEE EXIT STRATEGY: 

SEVIERVILLE, TENNESSEE EXIT STRATEGY Option 1:Sell Upon Completion (Certificate of Occupancy) Appreciation rate based on current rates = 10% over next 12 months. Possible future value of home upon completion = $262,500* Possible equity position = 42,500* (future value - cost of home) Premier Mountain Realty located directly in Sevierville, TN has been lined up to list and market homes for sale upon completion *All prices, building costs, interest rates, and appreciation rates are subject to change without notice. We are not responsible for losses, damages, or changes in the market conditions. All information is deemed reliable but not guaranteed. EXIT and HOLD STRATEGIES

SEVIERVILLE, TENNESSEEHOLD STRATEGY: 

SEVIERVILLE, TENNESSEE HOLD STRATEGY Option 2:Rent Property upon Completion (Certificate of Occupancy) Achieve Tax Benefits for holding property longer than 12 months Appreciation rate based on current rates = 10% over next 12 months Possible future value after 12 month hold = $275,000* Possible equity position = $55,000* (future value - cost of home) PITI Payment = $1475 (based on 7.50% APR 30 yr fixed) Rental Rate = $1,400* (based on average current rate for comparable Cash Flow = -$75/ month or -$600/ year Annual Appreciation = $25,000+ at 10% appreciation *All prices, building costs, interest rates, and appreciation rates are subject to change without notice. We are not responsible for losses, damages, or changes in the market conditions. All information is deemed reliable but not guaranteed.

SEVIERVILLE, TENNESSEE HOLD STRATEGY: 

SEVIERVILLE, TENNESSEE HOLD STRATEGY Option 3:Lease/ Option upon Completion (Certificate of Occupancy) Property Management Firm in place. Achieve Tax Benefits for holding property longer than 12 months Lessee Deposit, or Consideration, plus typical higher rent rates minimizes potential negative cash flow. Potential Seller Held Financing can achieve much higher “rent” rate Potential equity gain if lessee defaults Premier Mountain Realty will aid investors with local lease options upon request. *All prices, building costs, interest rates, and appreciation rates are subject to change without notice. We are not responsible for losses, damages, or changes in the market conditions. All information is deemed reliable but not guaranteed.

SEVIERVILLE, TENNESSEEADDITIONAL SOLUTIONS EXCLUSIVELY FOR OUR INVESTORS: 

SEVIERVILLE, TENNESSEE ADDITIONAL SOLUTIONS EXCLUSIVELY FOR OUR INVESTORS *All prices, building costs, interest rates, and appreciation rates are subject to change without notice. We are not responsible for losses, damages, or changes in the market conditions. All information is deemed reliable but not guaranteed. Cash Flow Bargains has formed a special relationship with Herocare, Inc. Herocare, Inc. is a specialized company which provides housing and financial solutions for teachers, firefighters, police and medical personnel and government employees in various markets around the United States. Herocare is currently working in the Knoxville Metro Market with the local hospitals, school systems, local unions and other entities Local Community Heroes needing housing for rent or purchase will be informed on many levels of the Sevierville opportunities our investors are building. The Herocare Network provides an EXTRA layer of exit strategy

About Herocare, Inc.: 

About Herocare, Inc. With our local Director and Affiliates, Herocare™ teams with the leadership of public sector employers, unions, local and state governments and Human Resource (HR) departments to offer Herocare’s suite of services as a no-cost add-on to their member or employee benefit packages. iCARE™, Herocare’s proprietary strategy is a culmination of company values and services and acts as a QC and follow-up vehicle to guarantee that each hero has a Wow! Experience while providing them solid housing solutions. Herocare’s network of trusted expert affiliates harness a host of services, education and resources that opens doors to public sector employers who are looking to add high value at low cost.

Slide15: 

Purpose Statement In the passionate pursuit of transforming our community, Herocare™ celebrates the service, appreciates the sacrifice, recognizes the needs and empowers our local heroes to achieve their dreams of homeownership and financial stability.

SEVIERVILLE, TENNESSEEGEOGRAPHIC LOCATION: 

SEVIERVILLE, TENNESSEE GEOGRAPHIC LOCATION Where is Sevierville? Knoxville, TN: 22 Miles Greenville, SC: 138 Miles Atlanta, GA: 196 Miles Nashville, TN: 221 Miles Louisville, KY: 286 Miles Birmingham, AL: 297 Miles Cincinnati, OH: 297 Miles Indianapolis, IN: 400 Miles Memphis, TN: 431 Miles Richmond, VA: 435 Miles Washington, DC: 488 Miles Jacksonville, FL: 517 Miles St Louis, MO: 525 Miles Jackson, MS: 535 Miles Chicago, IL: 582 Miles Miami, FL: 862 Miles

SEVIERVILLE, TENNESSEE: 

SEVIERVILLE, TENNESSEE

SEVIERVILLE, TENNESSEE: 

SEVIERVILLE, TENNESSEE

SEVIERVILLE, TENNESSEE: 

SEVIERVILLE, TENNESSEE

SEVIERVILLE, TENNESSEEAREA: 

SEVIERVILLE, TENNESSEE AREA Gatlinburg Gateway to Smoky Mountain National Park Key West with Flannel Shirts Mountain town with over 400 shops, live entertainment, dining Popular Walking Malls Pigeon Forge & Sevierville (previously. “Severe Ville”) 10 Mile Strip called the Parkway – the “new” International Drive Outlet Malls, Go-Kart tracks, Mini Golf, Dollywood, Themed Shopping Vegas-Style Family and Religious Oriented Dinner Shows & Theaters (Dixie Stampede, Miracle, others). Sevier County is within a days drive of 50% of the US population.

SEVIERVILLE, TENNESSEETOURISM: 

SEVIERVILLE, TENNESSEE TOURISM Over 13 Million Visitors per year, often returning 2-4 times per year 50% of visitors travel up to 500 miles 33% of visitors stay between 4 and 7 Nights The Average couple spends $1,800 per trip Top Feeder Markets Cincinnati, OH / Birmingham, AL / Nashville, TN / Indianapolis, IN / Knoxville, TN / Greenville-Spartanburg, Asheville, NC / Atlanta, GA / Bristol, Kingsport, Johnson City, TN / Louisville, KY / Dayton, OH ~ $1.2 Billion in Travel Expenditures in 2005.

SEVIERVILLE, TENNESSEEATTRACTIONS: 

SEVIERVILLE, TENNESSEE ATTRACTIONS Great Smoky Mountains National Park 9 Million Visitors Per Year, spending over $652MM in the surrounding areas Most of which arrive through Sevier County #1 Attraction in Tennessee Dollywood 2.4 Million Visitors Per Year #2 Attraction in Tennessee Ripley’s Aquarium of the Smokies 2 Million Visitors Per Year Most Visited Aquarium in the U.S. Outlet Malls 4 Complexes (Tanger, Belz, PFFO) 1,141,030 Sqft of Shopping

Slide23: 

Mortgage Loan Summaries Purchase Details Investment Illustrations 18 Month Exit Outlook

SEVIERVILLE, TENNESSEESUMMARY OF FEATURES: 

SEVIERVILLE, TENNESSEE SUMMARY OF FEATURES Immediate Equity of 10% even with 100% financing! Triple-Digit Cash on Cash Returns Multiple Hold Strategies Resale Exit Strategy with 30-60 days avg Days on Market Low Risk of $1000 out of pocket Total Out of Pocket for full 18 months less than $5000 while appreciating easily $10k+/year Investing in Emerging Market Strong Demand Dynamics in Place