Snowbird Vacation Properties-New

Snowbird Vacation Properties : 

Snowbird Vacation Properties …an investment for tomorrow you can enjoy today

US Housing Market : 

US Housing Market Worst decline in decades Not forecast to improve until after 2010 Sub Prime Mortgages have many in over their heads Foreclosures at record levels

Canadian Dollar : 

Canadian Dollar Strongest it’s been in decades Not forecast to decline Alberta Oil not forecast to decline Albertans uniquely positioned to profit

Opportunity is knocking… : 

Opportunity is knocking… Now is the time to invest in US real estate Exchange rate is in our favor Real Estate market is in our favor Snowbird lifestyle has never been more attainable

So…why isn’t everyone doing it? : 

So…why isn’t everyone doing it? Too far away Not enough time Too difficult to manage I want to…it makes sense…but I just haven’t got around to it.

What if…. : 

What if…. You could invest in a home without the hassle of buying the home You could invest as little as $50,000.00 It were managed for you You could stay at different properties You wouldn’t have to pay US taxes You have the same potential to make money as if you bought a home

The Plan : 

The Plan Snowbird Properties Limited Partnership (SPLP) will acquire properties in desirable vacation destinations preferably in gated communities and make them available to investors. SPLP is uniquely positioned to negotiate a lower price based on its experience, contacts, and resources than perhaps an individual investor could achieve on his own. SPLP believes it can acquire properties between 10 and 35 percent below current market value.

The Plan…cont’d : 

The Plan…cont’d Snowbird Properties a California Limited Partnership will acquire the property and hold the property on behalf of the limited partner’s - unit holders and capture all the costs associated with acquiring and owning the property. These costs will include but are not limited to legal fees, commissions, inspections, repairs and upgrades, insurance, appraisal fees, airfare and lodging, re-imbursement of time spent, finders fees, furnishing costs, security and other costs and fees as incurred by SPLP.

The Plan…cont’d : 

The Plan…cont’d SPLP will furnish the property so as to make the property suitable to be rented to the general public. This will include appliances, living room furniture, at least one TV, kitchen items (pots, pans, utensils, dishes, glassware, etc), beds, linens, lamps, tables, chairs, and any other items that are deemed necessary. Our estimate is that furnishing costs will range between $15000-$20000 per property depending on the size of the property and number of rooms requiring furnishing.

The Plan…cont’d : 

The Plan…cont’d Transitioning the Property to Investor Ownership Investors will contribute a minimum of $50,000.00 CAD. Snowbird Vacation Properties (SVP) is the General Partner and Managing Partner and will determine how much ownership it will make available to investors for each property and SVP will retain ownership equal to the amount not sold to investors. SVP will determine the transfer value at which the property will be valued for ownership transfer purposes. The following example explains in simple terms how that value will be established for an individual property purchased by SPLP. Purchase Price including closing costs $250,000.00 Furnishing costs $ 20,000.00 ---------------- Total Transfer Value $270,000.00

The Plan…cont’d : 

The Plan…cont’d Transitioning to Investor Ownership (cont’d) In the above scenario SVP – General Partner may choose to make $200,000.00 of ownership equity for this property available to investors. SVP would then retain ownership of the remaining $70,000.00. Snowbird Properties Limited Partnership holds title to the property.

The Plan…cont’d : 

The Plan…cont’d Transitioning to Investor Ownership (cont’d) Investors will be a partner in SPLP and therefore a partner in all properties currently owned or purchased in the future by SPLP. Investors will enter into a Limited Partnership agreement with Snowbird Properties that explicitly states their ownership percentage and ownership rights of each of the properties owned by SPLP. As an example, assume SPLP owns three properties with a combined value of $834,000 and an investor contributes $50,000. The investor would then have an ownership of 6% of each of the three properties. ($50,000/$834,000 = 6%)

The Plan…cont’d : 

The Plan…cont’d Ownership Rights/Risks Investors will own a proportionate share of all the financial activity associated with each of the properties according to how much capital they have contributed in relation to the total transfer value. They will share in costs of ownership, rental revenues, capital gains/losses upon disposal, and any tax liabilities incurred from rental and/or disposition of any of the properties. Investors will receive a quarterly statement of the financial activities for each of the LPLP properties including the investor’s share. Investors will have input as to when a property will be offered for sale and at what price it will be offered. There is no guarantee that a property can/will be sold for a profit.

The Plan…cont’d : 

The Plan…cont’d Investor Occupancy Privileges An investor can book time at any property, without fees, according to the percent ownership. For example, based on the previous example of 6% ownership in each of the three properties, the investor has a total of approximately nine weeks (6% of 52 weeks = 3 weeks for each property) of free booking which can be used at any of the properties or split between any of the properties. There are some guidelines on booking time during peak season (Oct. – Apr.) to allow for maximizing revenue for all partners. If an investor books for time during peak season there are some revenue adjustments for that investor unless the booking occurs 0 to 2 months in advance for a property that has unused time.

The Plan…cont’d : 

The Plan…cont’d Management Fees SVP as General Partner will charge a management fee for administration costs, collecting and distributing rental revenue, collecting and disbursing funds toward operating costs, repairs and maintenance, insurance, property taxes, property inspections and to market the property. The fee will be adjusted annually if costs change.

The Plan…cont’d : 

The Plan…cont’d Income Distribution SVP will collect all rental revenues associated with the property and administer the payment of commissions/finders fees associated with these revenues. Each investor can choose to either receive his proportionate share of rental revenue as a cash payment at the end of the year or have the amount applied toward the following years Management Fees.

The Plan…cont’d : 

The Plan…cont’d Length of Term An Investor is locked in until one of the following occurs: The property is sold The investor sells his interest in the property to someone else SVP retains the first right of refusal for any investor interest put up for sale

The Plan…cont’d : 

The Plan…cont’d Dispositioning the Property When a property is sold, SPLP will capture all the proceeds and costs associated with the disposition of the property. The investor will receive his proportionate share of the Net proceeds upon disposition and will be responsible for reporting any income or capital gains/losses resulting from the closing out of his investment. Investors are welcome to use their proceeds to re-invest in other properties that SVP may be offering at that time.

The Plan…cont’d : 

The Plan…cont’d Tax Benefits Net income distributions or capital gains from the limited partnership must be declared as part of the foreign or domestic tax filings of the individual partner personally or corporately. Personal US Estate tax issues are avoided as a result of the limited partnership umbrella. Our research indicates that this structure provides the best possible tax strategy for foreign alien investors participating in the US real estate market and avoiding potential excessive taxation.

Summary : 

Summary Profit from the eventual recovery in the US real estate market Become a Snowbird for as little as $50,000 invested Flexibility – you choose where to stay Leave the management to us Tax benefits

Uniqueness : 

Uniqueness Investment financing options available through SVP Investment value is based on the value of the property (or portion thereof) that you own You are not buying time, your investment has intrinsic real estate value There is a clear exit strategy

Snowbird Vacation Properties : 

Snowbird Vacation Properties …an investment for tomorrow you can enjoy today