Special Orlando Market Report Thank you for joining our Private Real Estate Investor Group. The purpose of this report is to give you an insider’s perspective of why we are aggressively investing in the Orlando Florida Market. As you will learn in this report, Orlando Florida is a very profitable market place for prudent investors, both veteran and novice looking to invest short term and long term. The opportunities are incredible, enabling investors to acquire many assets well below replacement costs. But this opportunity won’t last too long.
Why invest in Orlando? Tourism
the Animal Kingdom in 1998, with
There is not just one reason to buy
many smaller water parks opened in
in Orlando, but there are 55 million
between. Disney is breaking ground
reasons: between 50 and 60 million
on a new resort property in 2010.
people visit every year. Orlando
SeaWorld Orlando opened in 1973
is one of the world’s premier des-
and it is beautifully maintained and
tinations. Not only does the city
upgraded regularly. It offers amaz-
have many of the world’s best
ing attractions ranging from mind-
theme parks such as Disney, Sea
blowing roller coasters to the world
World and Universal, it is within
famous killer whale exhibitions with
an hour’s drive of Cape Canaveral
the ever-popular Shamu.
and either the east or west coast of the state where one can enjoy
Universal Studios which opened in
miles of gorgeous, sandy beaches. 2002 has quickly become a mustsee destination in Orlando. It has The parks are continually upgraded
things to do for all ages and is going
and updated and Orlando has
strong from morning, well into the
remained a premier destination
evening hours.
for tourists of all ages since Walt Disney World was first opened on
In addition to the top 3 parks men-
October 1, 1971. Disney has con-
tioned, Orlando has a plethora of
tinually added new parks, Epcot in
other tourist attractions, as well as
1982, MGM Studios in 1989 and
parks, museums, lakes and lots of
outdoor activities. Tourists who visit Orlando create and sustain jobs. Orlando is consistently ranked as one of the top vacation destinations in the world, and now boasts more theme parks and entertainment attractions than anywhere else in the world. This is the perfect time to follow the Buffett philosophy in the Orlando market. Warren Buffett seeks to acquire great companies trading at a discount to their intrinsic value, and to hold them for a long time. He will only invest in businesses that he understands, and always insists on a margin of safety. You can invest like Warren Buffett today. His Berkshire
Real Estate Market
Hathaway firm is looking for oppor-
At this time, Orlando prices are so low tunities to purchased distressed real that it would cost more to build than it
estate assets in the current market.
does to buy. When prices fall below
“When it’s raining gold, reach for a
their replacement costs, it is time to
bucket, not a thimble,” he said.
buy because they inevitably come up from there. We are looking at a his-
According to a March 1, 2010 article
torical opportunity to purchase luxury
by Andrew Frye of Bloomberg News,
units at low-income pricing.
“Within a year or so, residential
housing problems should largely be
was built as a luxury, high-amenity
behind us,” Buffett wrote Saturday in building that can now be had for the his annual letter to the shareholders
price of a low-income unit?
of his Berkshire Hathaway. “Prices will remain far below ‘bubble’ levels,
Real estate prices are rising again
of course, but for every seller or
in the metro area. We are finding
lender hurt by this there will be a
that the prices we are paying banks
buyer who benefits. Indeed, many
to purchase directly from them have
families that couldn’t afford to buy
risen 10% this month compared to
an appropriate home a few years ago
last month. Investors are coming
now find it well within their means.”
back into the Orlando market in a big way. Yet, we have an edge be-
And you also might consider the
cause we have built and cultivated
advice from Baron Rothschild, an
relationships across the city with
18th-century British nobleman and
financial institutions, Realtors and
member of the Rothschild banking
have teams in place to create a true
family, who is credited with saying
turn-key opportunity for our investors.
that “the time to buy is when there’s blood in the streets.”
Orlando Section 8 rents allowable for a 3 bedroom unit are $1,317 a
Now is the time to buy in the Orlan- month, or $15,804 a year. Should do markets. The purchase prices
you choose to become a section 8
are very low, but the rents remain
landlord, Florida is well known for
relatively stable. Even if people are
having a very well-run section 8 pro-
losing their homes to foreclosure,
gram. People have to wait for years
they still need somewhere to live.
to get in the program and if they
Why not a 3 bedroom condo in what
should not comply with the terms
of the lease, the landlord can file a
unit at certain times of the year, yet
complaint and get the people kicked
maintaining an income from it as
out of the section 8 program.
well. Many luxury condo buildings were built to be hotel/condos in
Should landlords choose not to be
Orlando’s recent boom, so often do
a part of the section 8 program,
not require any modification. On-
there are different rental options in
site management is even available.
Orlando than you find in most cities
Rental prices for such units fluctuate
in the US because Orlando is such
based on how close they are to the
a huge tourist destination. Yes, a
major parks and what season it is.
landlord certainly has ample opportunity to rent to a tenant in the tra-
Employment
ditional manner. The average rent
Orlando has hit the bottom of the
in Orlando for a 3 bedroom condo is
market and is moving up. For
$1,191 a month, or $14,292 a year.
instance, employers in Orlando
Clearly, our expert team of manag-
will be cutting 1,000 jobs this year
ers will determine the right amount
which is a .1% decline. This might
to charge to get the best tenant for
sound bad until you consider that
each unit.
more than 50,000 positions were eliminated during each of the past 2
There is also an entire submarket
years. So, the number of jobs lost
in Orlando for vacation rentals.
has slowed dramatically. Orlando’s
These incur higher management
current unemployment rate is a
costs because they require a lot
gasp-worthy 11.9% after all these
more management for nightly or
losses, yet, employers see signs
weekly tenants. However, it gives
of economic revival and have a
the owner the option of using their
brighter outlook for the future.
Disney is opening a new resort, Art of
67%, have current job openings. In
Animation, which is expected to cre-
September of 2009, only 45% were
ate approximately 800 construction
hiring. That’s a huge difference
jobs. After it opens, it will also create
in only 5 months. As a matter of
lots of jobs in the hospitality sector.
fact, for the first time in 27 months, companies are becoming optimistic
Other employers are looking to hire
again about their hiring projections.
in Orlando in 2010 as well, which is
Folks, we’ve reached the bottom of
a big difference from 2009. According the market. With hiring in Orlando on to the 2010 Employment Outlook for
the rise, the demand for housing will
Central Florida Survey, completed
only increase.
February 22, 2010. The survey interviewed 112 companies who represent
Construction is one industry where
118,995 employees based in Central
they aren’t seeing a recovery. Only
Florida. 76 of the companies, or
950 apartment units will be completed in 2010, compared to 2,176 in 2009 and more than 3,700 the year before. When so few new units are being put on the market, existing units are in more demand and prices start to rise.
City initiatives Since 1994, the City of Orlando has provided citizens and residents with the Mayor’s matching grant program. It provides funds to neighborhood
associations, schools and non-profits with businesses to bring in new for projects t hat address neighbor-
jobs. They are building a better
hood needs, improve education, and infrastructure to support the populabuild community pride. Visit their
tion, which is over 2,000,000 people
website here: C ity O f O rlando
in the metro area. They are hosting summits in cooperation with
Strengthen Orlando is an extremely
the Disney Entrepreneur Center to
well-organized website that has
teach people how to create their
links for everything from family
own businesses. They are provid-
assistance to business assistance
ing incentives to businesses to help
to homeowner and rental assistance.
them to grow and succeed. So,
Clearly the City of Orlando is trying to
while Orlando’s current unemploy-
do something to help the people who
ment rate hovers around 11%, the
live there. Visit their website here:
city is working to bring in new jobs,
Strenghten ORLANDO
keep the jobs it has and to make Orlando better than ever.
The city of Orlando is spending $80 million in public works projects over
“We must do everything possible to
the next year. Additionally, there are ensure that our City comes out of $365 million in bid opportunities for
this recession stronger and remains
public projects that involve aviation
on course to
and utilities in process. Orlando is
fulfill our shared
going to come out of this recession
vision of Orlando
with an amazing infrastructure to
as the next great
support the city.
American city.� - Orlando Mayor
Orlando gets it. They are working
Buddy Dyer
Why Invest with our Group? Turnkey Solution People love working with us because our Private Fund offers investors a complete Turnkey System. Our existing and direct relationships with banks and brokers enable us to dominate the market and buy properties well below market prices.
Residential Division: Our Fund’s Portfolio consists of 90% “Affordable Housing” and 10% “Luxury Assets”
Why Invest with our Group?
Affordable
Housing We offer investors a portion of our existing inventory with a Complete Turnkey Solution. Our Fund Will: • Purchase bulk properties at steep discounts • Fix the properties up quickly • Put a great tenant in each property • Provide a management company to our buyers • Sell a wonderful investment property at below-market prices • Rinse and Repeat
Luxury Assets For luxury level properties, which are 10% of our fund, we have a proven system in place to: • Purchase each property at a deep, deep discount • Fix the properties up to their million-dollar condition • Sell a fabulous luxury home in a beautiful community at below-market prices • Again, rinse and repeat
Our tried and tested system helps
work. I use the word family because
us to “Wow” our investors over and
His Real Estate Network has made us
over again.
so comfortable in the transition from sitting around wishing we were in
“I work for the City of Anaheim and
Real Estate to actually being an In-
purchased a great property that had
vestor in Real Estate.
built in equity right at closing. HIS was very professional and gave de-
My husband and I live on the Outer
tailed explanation throughout every
Banks of North Carolina. My husband
step of the transaction. It is my first
is a General Manager in the Salvage
time purchasing an investment prop- Industry and I am in the Accounting erty and I never thought it would be
field, but we have always been very
this easy!” Luis J (Anaheim CA)
interested in Real Estate. I can’t tell you how many times we have dis-
“His Real Estate Network makes invest- cussed investing in Real Estate only ing pleasant and easy. They skillfully
to let it pass from lack of just knowing
guide step by step through the invest-
how to get started. I have to tell you
ment process and make themselves
I would never have guessed our first
readily available to nswer questions
deal would be four states away!!
and follow up. We are very pleased be part of HIS Network and their affiliates
To the team at His Real Estate Net-
as we add to our real estate portfolio.”
work, we can’t say enough about how
Jan and Dale (Florida)
honored and excited we are to know and be a part of your company. We feel
“I’m writing this letter to thank you for
so fortunate to have closed our 1st deal
helping my family to become part of
because of your professionalism and
your family at His Real Estate Net-
help, every step of the way. We are still
amazed that we bought an investment
property is $125,400. Do you think
house with built in equity, in a growing
the investor who bought that property
area. The integrity of your company
is happy? Well, wouldn’t you be?
stands alone with all the professional help you and your office gave us in the
Every community that meets our pur-
way of financial advisors, attorneys, in-
chasing criteria has a strong HOA and
vestors, bankers, website material and
excellent amenities. Whether it’s a
so much more.
truly high end property that you’re getting at an amazing discount (like
Just knowing that His Real Estate Net-
the property that sold for $2.9 mil-
work wants us to succeed as bad as we lion recently which we purchased for do is a great feeling. We thank you very less than $400,000), or if it’s an inmuch for everything you did for us.”
vestment property that is priced like
Durene & Butch (North Carolina)
affordable housing, you can rest assured that these properties are some
Carefully Vetted Communities
of the best in Orlando. And, that they reside in communities where you will
Our acquisition team diligently checks be proud to own. out communities where we buy properties. These were formerly proper-
The developers poured tens of mil-
ties sold at luxury prices as recently
lions of dollars into the amenities of
as 2007. For example, one condo
the communities where we purchase
we purchased earlier this year sold
the properties that we sell to our in-
for $432,000 in 2007. We purchased
vestors. While housing prices have
it, fixed it up and sold it with a renter
fallen, the amenities are still there
and property management in place for – these remain great communities in $59,900. The current tax value on the desirable areas.
Great prices, ability to purchase many properties Each property is sold considerably below market price. Obviously, our $5,000,000 fund only makes money when we are able to purchase, fix-up and sell properties quickly. We have a reputation to maintain in the community‌ a reputation for providing the best properties to our investors, no matter how small or large they may be. Whether you buy one property from us or many, we want you to be rabid fans. We have the system in place to move dozens of properties each month. We will have what you need when you are ready for it. Of course, the best prices are going to go to those who move quickly, since we are currently seeing an uptick in the prices we are paying to purchase.