Special Orlando Market Report

Page 1



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.


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.