Blue Sky Presentation

Welcome to Blue Sky Properties : 

Welcome to Blue Sky Properties Investor Presentation

Why we are here : 

Why we are here Since you are all here by invitation, you know that the main focus of tonight is to share with you an opportunity to take advantage of investing in local area real estate though our company, Blue Sky Properties.

Overview : 

Overview Who we are What we do How we do it How do we find properties? What is our exit strategy? Example Property An example Surprise How your investment works An example Investment How to get started

Who we are : 

Who we are Blue Sky Properties A Limited Partnership investing in residential real estate short term for a profit. We purchase and resell homes! Founded by Ed Curtis and Blair Warner Our team Ed Curtis – Principal - Finance Blair Warner – Principal - Marketing Leigh Edwards – Office Manager Dennis Martin – General Contractor

What we do : 

What we do We buy houses at a significant discount off of market value, rehab and/or update if needed, and sell quickly for a profit. In some cases, it is highly beneficial to hold them and rent/lease to own for cash flow.

How we get our properties : 

How we get our properties Distressed Properties Pre-foreclosures (foreclosure list) Short Sales Bank foreclosures – REO’s Realtors FSBO’s (Fore Sale by Owner) Referrals

Foreclosures : 

Foreclosures 5 steps in the foreclosure process Delinquency – Borrower delinquent making payments, makes no arrangements with lender for forbearance. Notice to cure – In Texas, borrower has 20 days to cure delinquency. Default Notice and Posting – Borrower sent formal notice of default and intent to sell property at foreclosure. In Texas, foreclosure sales occur on the first Tuesday of the month, 21 days after notice and posting Foreclosure sale – If borrower is unable to cure default, property is sold at auction on courthouse steps. Active Foreclosure Inventory – Properties acquired by lenders at foreclosure sales are held in their “REO”, Real Estate Owned inventories and are marketed through real estate agents like any other property. Total time to court house steps is 3-4 months. Foreclosure lists come out 21-25 days prior to auction.

Our Profit Model : 

Our Profit Model After Repair Value (ARV) Maximum Allowable Offer (MOA) = 70% ARV MOA = Proposed purchase price + estimated repair costs.

Exit strategies : 

Exit strategies 1. For Sale Flat fee listing with Realtors Advertise Realtor email list 5-day Sale Event marketing Open Houses Multiple directional signs 2. Lease-to-own Ex: 4026 Silverhill 3. Owner financing

Example Property : 

Example Property 1209 Marlee Ln. - Arlington Pre-foreclosure Bought for payoff $68,000 Paid seller $1600 for equity Re-hab costs $8000 Sold 2 months later for $104,000 Net Profit: $26,400

Surprises?? : 

Surprises?? What if things don’t go as planned? Example: 6922 Pemberton, Dallas Bought it for $400,000 After repair value $ 625,000 Remodel costs $85,000 Potential profit over $100,000

Surprise!!! : 

Surprise!!! Yikes! It burned down! Insurance settlement Sold “As Is” All obligations and investors will be paid Still made $30,000 profit because we had bought it “right”!

Bottom line : 

Bottom line We may not always make as much profit as we projected (we don’t have a crystal ball), but we are poised in the best position possible to profit – often netting even more than expected.

Our portfolio : 

Our portfolio 5 rehab projects 5 rental investments 1 available investment Seeking commitments for future investments Pursuing “hard money lending” opportunities

How Can you be involved? : 

How Can you be involved? Be a private lender Lend to us at 12% interest No commission or “sales load” deducted No early withdrawal fee Low LTV Promissory note given

Example Investment : 

Example Investment

4310 Fawnhollow, Dallas : 

4310 Fawnhollow, Dallas Brought to us by a realtor – Karl Frankl Foreclosure purchase from Wells Fargo Purchased at 60% ARV Proven upscale N. Dallas neighborhood Rehab is cosmetic – No permits needed Will sell below market value for quick turnaround Ready for summer season!

Another Option : 

Another Option Joint Venture Partnerships with Blue Sky (A topic of future presentations. However, if you are interested in learning more about this opportunity please contact Blair or Ed)

Little known Option : 

Little known Option Real estate investment through your own self directed IRA with Equity Trust Company. Ask for more details.

Why Invest in Real Estate? : 

Why Invest in Real Estate?

Is There Really A Housing Bubble? : 

Is There Really A Housing Bubble? Housing Bubble? FDIC definition: 30% increase over 3 year period. DFW Housing data Prices vs. Income - 72% can afford a median priced home in Dallas vs. 16% in San Diego. Months inventory under 6 months. 1990-92, inventory on the market averaged 15 months. Conclusion: There is not an oversupply. According to the PMI Mortgage Insurance Corporation, Dallas ranks low with a PMI risk index of 9%. This is the probability of a decline during the next 2 years. Boston 55%, San Diego 53%, Detroit 30% to name a few. According to National Association of Realtors, median home prices rose 33% nationwide from 2002-2005. Texas saw an increase of 14.7%, North Texas only 4.9%. El Paso was at 19.5%. In 2005, among the largest cities in the country, Dallas ranked 50th in the rate of home appreciation at 4.5%, less than ½ the national average of 13.4%. With all of this, Texas ranked 12th among all states in terms of personal income growth which means the economy is growing strongly while real estate prices have not!

How to get started : 

How to get started Please fill out Investor Commitment Form See promissory note in the presentation binder Talk with Blair or Ed afterwards