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THE PREMIER WHOLESALER OF DISTRESSED PROPERTIES
CONFIDENTIALITY AGREEMENT This is a confidential memorandum intended solely for your own limited use to determine whether you wish to participate in the TSG Distressed Properties Purchase Program. This document is not a public offering. It contains brief information regarding the business model prepared by TSG Realty and The Solution Group Corp. It has been developed based on information developed by the company. It does not purport to be all-inclusive nor does it contain all the information which a prospective buyer may desire. Neither TSG, nor any of its members, directors, managers or employees make any representation or warranty, expressed or implied, as to the accuracy or completeness of this memorandum or any of its contents, and no legal liability is assumed or is to be implied by any of the aforementioned with respect thereto. The information in this memorandum has been gathered from sources that are deemed reliable, but neither the promoter nor any of its members warrant or represent that the information is true and correct. Prospective buyers are advised to verify the information independently. TSG reserves the right to change any information in this memorandum or withdraw the properties from the market at any time, without notice. This memorandum, is not be construed as an offer or as any part of a contract to invest in any properties or to acquire any equity interest in the promoter thereof. By you reading this presentation, you agree that it and the information contained herein is of a confidential nature and that you will not disclose this memorandum or any part of the contents to any person, firm, entity without the prior written authorization of the developer. If you do not wish to pursue this matter, kindly return this confidential memorandum to The Solution Group Corp. Photocopying or other duplication is not authorized.
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THE PREMIER WHOLESALER OF DISTRESSED PROPERTIES
INDEX
01
TSG Track Record
02
Opportunity
03
Business Process
04
Properties
05
Property Map
06
Analysis
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01 TSG
Track Record
TSG is a vertically integrated company which has identified a unique opportunity within the US housing market crisis and has developed a unique program to take advantage of it, particularly in South Florida. Through this Distressed Assets Program, TSG, after diligent inquiry and analysis, acquires "distressed" properties, defined as residential real estate which either have been acquired by foreclosing mortgage lenders, or are REO's and Short Sales. After acquisition, TSG rehabilitates the properties, rents and stabilizes them and then packages them for sale individually or in groups. With a multidisciplinary team with over 50 years of collective experience, TSG identifies submarkets where to participate, taking into account the median household income, the demand of the market and its potential appreciation. Having identified the opportunity, TSG proceeds to the acquisition and stabilization of the property. TSG's Construction Division administers and supervises the rehabilitation process, pursuant to established standards and upon completion delivers the properties to the Leasing Division which is responsible for renting them. Once the properties are sold by TSG Realty, the company's Property Management Division provides property administration services to its customers.
44.7%
Average price of TSG properties that last less than 60 days in the market.
U$201,570,190 Debt amount acquired by TSG in the last 24 months.
1,028
Distressed properties acquired by TSG by foreclosure programs in Miami-Dade, Broward & Palm Beach Counties.
582
38
The average time that TSG properties take before being delivered to the commercial department.
75,223
The number of properties analyzed by TSG’s acquisition department during the last year.
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All remodeled properties by TSG are delivered with the best standards for rent.
02 Opportunity
Historic Opportunity
The fundamentals of the real estate industry have never aligned themselves the way they have done so, with properties selling for less than their replacement value; rent values going up, low unemployment indexes and the best forecast for market rebound and prices regaining value again.
THE PREMIER WHOLESALER OF DISTRESSED PROPERTIES
S&P/Case-Shiller U.S. National Home Price Index
200
20% US National, index level (left) US National, %chya (right)
15%
180 10% 160 5%
140
0%
Nationally, home prices are back to their 2003 levels
120
-5%
-10% 100 -15% 80 -20%
Record low decline of 18.9% in 2009 Q1 (solid line) 60 1988
-25% 1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
The chart shows the behavior of house values over time, based on the 10-City and 20-City Composite Indices. As of July 2011, average home prices across the United States are back to the levels where they were in the summer of 2003.
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0 Business Process
THE PREMIER WHOLESALER OF DISTRESSED PROPERTIES
Property yields between an estimated return of 6% to 8%
Foreclosed, REO and Short Sale Properties
TSG MANAGEMENT TEAM
TSG is responsible for: Ÿ
TSG Leases the property
Ÿ Ÿ Ÿ
Rent collection Expense payments Supervise potential repairs Prepare annual reports
TSG selects the best properties after an extensive analysis Property ready for sale
EQUIPO DE RENTA TSG
Clean Title
Renovated Property with clean title
TSG’s Financial Analyist Team
TSG Financial Analyst Team
TSG assembles a diversified portfolio
TSG se encarga de: Ÿ Ÿ Ÿ Ÿ Ÿ
Take possession of property Change of locks Removal of any illegal tenant Remodeling Secure the property
Properties
Property 1
COURT / BANK
G
TS
Property 2
Property 6
Property 3
Property 7
Property 4
Property 8
Property 5
Property 9
TSG ACQUIRES THE PROPERTY
TSG Construction Team
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0 Properties
Real Estate Opportunity Completely Renovated
TYPE: CONDO Breeze of Galloway 2 Bed / 2 Bath Sq. Ft. 991
20930 SW 87 AVE #202 Cutler Bay FL 33189
Sales Price:
$ 107,000
$200,000
$195,000 $163,515
$150,000
$115,000
$100,000
$107,000
$50,000 $25,000 $0
Estimated Monthly Rent:
$
1,150
Estimated R/P Taxes/Mth:
$
114
HOA’s:
$
240
Property Management:
$
80
NOI:
$
716
CAP:
Historic High
Replacement Value
Fair Market Value
8.03%
TSG Sales Price
Equal Housing Opportunity. Oral representations cannot be relied upon as correctly stating representations of the developer. For correct representations, reference should be made to the documents required by section 718.503, Florida Statutes, to be furnished by the developer to a buyer or leasee. Not an offer where prohibited by state statutes.
TSG REF: SCD 4
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Real Estate Opportunity Completely Renovated
TYPE: CONDO Lakewood at Emerald Hills 1.5 Bed / 1 Bath Sq. Ft. 749
3700 N 56 Ave #1013 Hollywood, FL 33021
Sales Price:
$ 79,900
$200,000 $188,556
$150,000 $123,585
$100,000
$90,884 $79,900
$50,000 $25,000 $0
Estimated Monthly Rent:
$
950
Estimated R/P Taxes/Mth:
$
93
HOA’s:
$
234
Property Management:
$
80
NOI:
$
543
CAP:
Historic High
Replacement Value
Fair Market Value
8.15%
TSG Sales Price
Equal Housing Opportunity. Oral representations cannot be relied upon as correctly stating representations of the developer. For correct representations, reference should be made to the documents required by section 718.503, Florida Statutes, to be furnished by the developer to a buyer or leasee. Not an offer where prohibited by state statutes.
TSG REF: HCB 1
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Real Estate Opportunity Completely Renovated
TYPE: Townhome Villas del Campo
3 Bed / 2 Bath Sq. Ft. 1,298
10921 SW 244 Terr #10921 Miami, FL 33032
Sales Price:
$ 129,000
$300,000
$304,428
$250,000 $214,170
$200,000 $150,000
$146,733
$
1,189
Estimated R/P Taxes/Mth:
$
143
HOA’s:
$
119
Property Management:
$
80
NOI:
$
847
$129,000
$100,000 $0
Estimated Monthly Rent:
CAP:
Historic High
Replacement Value
Fair Market Value
7.88%
TSG Sales Price
Equal Housing Opportunity. Oral representations cannot be relied upon as correctly stating representations of the developer. For correct representations, reference should be made to the documents required by section 718.503, Florida Statutes, to be furnished by the developer to a buyer or leasee. Not an offer where prohibited by state statutes.
TSG REF: HCD 15
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05 Real Estate Opportunity Completely Renovated
TYPE: Townhome Mandarin Lakes 2 Bed / 2.5 Bath Sq. Ft. 1,580
14045 SW 272 St #14045 Homestead FL 33032
Sales Price:
$ 105,000
$250,000
$245,282
$240,700
$200,000 $150,000 $100,000
$108,585
$105,000
$50,000 $0
Estimated Monthly Rent:
$
1,100
Estimated R/P Taxes/Mth:
$
145
HOA’s:
$
239
Property Management:
$
80
NOI:
$
636
CAP:
Historic High
Replacement Value
Fair Market Value
7.27%
TSG Sales Price
Equal Housing Opportunity. Oral representations cannot be relied upon as correctly stating representations of the developer. For correct representations, reference should be made to the documents required by section 718.503, Florida Statutes, to be furnished by the developer to a buyer or leasee. Not an offer where prohibited by state statutes.
TSG REF: BVD 14
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Real Estate Opportunity Completely Renovated
TYPE: CONDO Caribbean Isles Villas 3 Bed / 2 Bath Sq. Ft. 1,194
2733 NE 3rd Court #106 Homestead, FL 33033
Sales Price:
$ 89,500
$250,000 $200,000
$211,212 $197,010
$150,000 $100,000
$101,803 $89,500
$50,000 $0
Estimated Monthly Rent:
$
949
Estimated R/P Taxes/Mth:
$
161
HOA’s:
$
249
Property Management:
$
80
NOI:
$
459
CAP:
Historic High
Replacement Value
Fair Market Value
6.16%
TSG Sales Price
Equal Housing Opportunity. Oral representations cannot be relied upon as correctly stating representations of the developer. For correct representations, reference should be made to the documents required by section 718.503, Florida Statutes, to be furnished by the developer to a buyer or leasee. Not an offer where prohibited by state statutes.
TSG REF: NGD 1
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05 Real Estate Opportunity Completely Renovated
TYPE: CONDO Biscayne Beach Club 1 Bed /1 Bath Sq. Ft. 747
10500 SW 155 CT #1026 Miami FL 33196
Sales Price:
$ 79,900
$250,000
$250,000
$200,000 $150,000 $123,255
$100,000
$115,000
$
950
Estimated R/P Taxes/Mth:
$
115
HOA’s:
$
236
Property Management:
$
80
NOI:
$
519
$79,900
$50,000 $0
Estimated Monthly Rent:
CAP:
Historic High
Replacement Value
Fair Market Value
7.80%
TSG Sales Price
Equal Housing Opportunity. Oral representations cannot be relied upon as correctly stating representations of the developer. For correct representations, reference should be made to the documents required by section 718.503, Florida Statutes, to be furnished by the developer to a buyer or leasee. Not an offer where prohibited by state statutes.
TSG REF: HFD 2
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Real Estate Opportunity Completely Renovated
TYPE: CONDO Venetia Gardens 2 Bed / 2 Bath Sq. Ft. 822
2911 SE 13 Ave #102-49 Homestead FL 33035
Sales Price:
$ 67,300
$250,000 $235,000
$200,000 $150,000 $135,630
$100,000 $85,000 $67,300
$50,000 $0
Historic High
Replacement Value
Fair Market Value
Estimated Monthly Rent:
$
775
Estimated R/P Taxes/Mth:
$
64
HOA’s:
$
229
Property Management:
$
80
NOI:
$
402
CAP:
7.16%
TSG Sales Price
Equal Housing Opportunity. Oral representations cannot be relied upon as correctly stating representations of the developer. For correct representations, reference should be made to the documents required by section 718.503, Florida Statutes, to be furnished by the developer to a buyer or leasee. Not an offer where prohibited by state statutes.
TSG REF: SCD 6
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05 Real Estate Opportunity Completely Renovated
TYPE: Townhome Waterways Taheri 2 Bed / 2 Bath Sq. Ft. 1,384
1211 Imperial Lake RD West Palm Beach, FL 33413
Sales Price:
$ 129,000
$300,000 $250,000
$220,000
$228,360
$200,000 $150,000 $109,000
$100,000 $0
Estimated Monthly Rent:
$
1,150
Estimated R/P Taxes/Mth:
$
147
HOA’s:
$
162
Property Management:
$
80
NOI:
$
761
$129,000 CAP:
Historic High
Replacement Value
Fair Market Value
7.08%
TSG Sales Price
Equal Housing Opportunity. Oral representations cannot be relied upon as correctly stating representations of the developer. For correct representations, reference should be made to the documents required by section 718.503, Florida Statutes, to be furnished by the developer to a buyer or leasee. Not an offer where prohibited by state statutes.
TSG REF: SCP 1
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Real Estate Opportunity Completely Renovated
TYPE: CONDO La Hacienda 1 Bed / 1 Bath Sq. Ft. 715
18308 NW 68 AVE No. J Miami Lakes, FL 33015
Sales Price:
$ 81,620
$200,000 $150,000
$165,000
$117,975
$100,000
$89,500
$50,000
$81,620
$25,000
Estimated Monthly Rent:
$
950
Estimated R/P Taxes/Mth:
$
95
HOA’s:
$
176
Property Management:
$
80
NOI:
$
599
CAP:
Historic High
Replacement Value
Fair Market Value
8.81%
TSG Sales Price
Equal Housing Opportunity. Oral representations cannot be relied upon as correctly stating representations of the developer. For correct representations, reference should be made to the documents required by section 718.503, Florida Statutes, to be furnished by the developer to a buyer or leasee. Not an offer where prohibited by state statutes.
TSG REF: TDP 5
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0 Property Map
Location Location Location...
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THE PREMIER WHOLESALER OF DISTRESSED PROPERTIES
Jupiter
West Palm Beach Lake Worth Boynton Beach Delray Beach
Boca Raton
Pompano Beach
Fort Lauderdale Hollywood INTERSTATE
Hialeah
Miami
Biscayne Bay
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06 Analysis Total Number of Units
Per Unit
9
9,480
1,053
$ 2,022,093
$ 224,677
Area (Sq Ft)
Historic High
213.37
Sq Ft Value
$
Fair Market Value
934,845
Sq Ft Value
$
TSG Distressed Price
868,220
Sq Ft Value
$ 1,153,873
Discount over Historic Value
$ 103,872 $
98.64
$
96,469
$
91.61
$ 128,208 $
Sq Ft Value
121.76 57.06%
Percentage
$
Discount over Fair Market Value
66,6,25
Sq Ft Value
$
7,403
$
7.03 7.13%
Percentage
Annual Rental Income Estimated Rental Income Estimated Taxes Estimated HOS’s Estimated Property Management Total
Total
Per Unit
$ 109,956 $ (12,912) $ (22,605 $ (8,640 $ 65,796
$ 12,217 $ (1,435) $ (2,512 $ (960) $ 7,310.67
7.58%
CAP / (Ratio)
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