Smart Real Estate investments start here

Transcription

1 Welcome to GHG Your address for real estate investments in the U.S Smart Real Estate investments start here

2 Intro GHG is a real estate boutique investment group, specializing in acquisitions of bank owned assets in the U.S. and specifically in SE Florida We offer a complete investment package allowing a safe and convenient solution for real estate investments away from home GHG-AM a subsidiary asset management company provides top of the line management services for GHG and investor properties

3 Business Opportunity Smart Real Estate investments start here Low Property Prices - Bank owned properties are priced at approximately 25-50% of today s construction and land costs. Strong Rental Demand - high demand with good returns. Favorable Exchange Rate - makes prices even lower for foreigners. Low Interest Rates - will enable comfortable financing in the future. Professional Asset Management - our asset management company provides the best available services in managing your overseas investment. Peace of mind while your investment works for you. Window of Opportunity for R/E investments

4 Business Opportunity - continued Housing Affordability Index The relationship between home prices, mortgage interest rates and family income is the most favorable since tracking began in A value of 100 means that a family with the country's median income has exactly enough income to qualify for a mortgage on a median-priced existing single-family home. The higher the index, the better housing affordability is for buyers. Record High in property affordability for the average citizen National Association of Realtors

5 Business Opportunity - continued Miami Home price Index A 51% decrease from the peak of December 2006 Prices Prices are are still still at at an an all all time time low low - Market Market maintains maintains stability stability S&P/Case-Shiller Home Price Index

6 Business Opportunity - continue There is a significant difference between foreclosure sales price and market sales price Bank owned properties being sold for approximately 30% less than their normal market prices RealtyTrac Inc

7 Important facts about Miami Favorable business environment Florida has no State Tax One of the largest business centers in the U.S. International banking, airlines, tourism and more The U.S. Riviera National and international center for tourism conventions and culture Ideal climate Warm weather all year long Airport third largest traffic volume in the U.S. Sharp increase in house sales 25 consecutive months of increase in the number of sales CNN chose Miami as the best city to buy a house in the U.S.A

8 GHG Business Strategy Purchasing assets: apartment buildings, condo units, townhouses, and single family homes mostly from banks at prices ranging from 40k to 120K U.S.$ per unit, according to the following guidelines: Communities quality and in high demand Detailed examination of every asset condition of asset, location, vacancy rate, population, supply and demand, sales comparables, rental price comparables Cash purchase Foreclosed assets are purchased at 100% equity Asset Inspection by a certified inspector Managing the renovations immediate renovations and / or repairs to prepare asset for rent or resale Rent complete management of the asset while rented Sale various options, as a single asset / as part of a bulk deal GHG commits to the purchase of all assets prior to presentation to the investor GHG commits to the purchase of all assets prior to presentation to the investor

9 Sample Deals Property location Date of purchase General data Size Purchase price Renovation costs Total costs Annual rent income Property tax Maintenance + Insurance Annual net return Date of sale Sale price Net profit 801 Meridian Avenue, Miami Beach, Florida 01/2009 Typical building, 1 Bed, 1 Bath, 1 Parking 620 sq.ft. $61,000 (Price at Peak was $230,000) $15,000 (New kitchen, new tiles, new appliances, new closets, paint) $76,000 $13,200 $3,000 $3, % 06/2009 $137,000 67% in 5 months

10 Sample Deals Property location Date of purchase General data 2280 E Preserve Way, Miramar, Florida 03/2010 Luxury complex with many amenities, 2 Bed, 2 Bath and parking Size 1,010 sq.ft. Purchase price $65,400 (Price at Peak was $220,000) Renovation costs $3,500 (New tiles, carpet cleaning and paint) Total costs $70,402 ($757 per sq.ft.) Annual rent income $14,400 Property tax $2,169 Maintenance + Insurance $4,140 Annual net return Date of sale Sale price Net profit 10.09% 07/2010 $108,350 44% in 4 months

11 Investment model - Partnership Purchasing the property in partnership with GHG, without paying any management fees or real estate commissions (GHG collects at exit) GHG performs the full process of purchasing, renovating and management of the property GHG investor GHG 5% LLC Limited liability company Investor 95% GHG acts as a managing partner with shared goals

12 Investment model Partnership continued Rental income profit sharing - 95% to investor and 5% to GHG (quarterly) Selling proceeds distribution - 85% to investor and 15% to GHG LLC bank account investor receives the login information (user I.D. and password) to access the account online Investor s purchase option of GHG s share: the investor has a purchase option, to buy GHG s share of the asset (15%) at any given time according to the higher of - total investment or the last purchase offer received GHG s selling Options: First two years should there be a purchase offer which generates a 30% annual return to the investor, and the investor is not interested in selling, GHG will have the right to exercise its selling option and force the investor to purchase its share (15%) at the purchase offer price. From the third year GHG will have the right to exercise its option and force purchase at any offer which will generate positive return to the investor.

13 Investment model - Sole Ownership Investor is sole owner of asset with a 10% broker fee to GHG the investor will be accompanied by GHG throughout the whole process of purchasing to title ownership Investor is the sole decision m a k e r r e g a r d i n g h i s investment, renovation, rent, etc. Investors have the option of using our asset management services at a rate of 10% from gross rent Investor 100% Investor LLC Limited liability company

14 Additional costs Detail State of Florida - LLC Renewal Accountant(corporate) - LLC annual tax return Accountant(personal) - personal (investor) tax return Property Management Co. - management of asset Realtors Commissions - new tenant placement Realtors Commissions - existing tenant lease renewal Annual costs $138 $450 $250 8%of gross rent One month s rent Half month s rent One time cost New corporation establishment & legal documents fee Realtors commissions - upon selling an asset $ 1,000 6%

15 Founders Oded Yehoshua, Miami U.S.A Guy Goldberg, Toronto Canada Oded Israeli Yehoshua, business Miami man living U.S.A in Israeli business Israeli business man living man in Miami living for the in past Miami 15 for years, the has past acquired 15 years, numerous has contacts Toronto with for banks the and past brokers. 15 years Oded has acquired broad numerous knowledge and contacts experience with in the dividing field. his time between Toronto banks and brokers. Oded has and M i ami. G uy has broad Shai broad Yitzhaki, knowledge Tel and Aviv experience Israel in Shai has knowledge vast experience and experience in finance, Miami capital markets, the field. analytical research and strategy, with R/E 13 and years numerous of senior close positions contacts in the Israeli capital market: C.E.O of Tamir Fishman with Underwriting banks and brokers. (subsidiary of Royal Bank of Canada), Deputy C.E.O of Analyst Underwriting, and senior manager at Shai Yitzhaki, Tel Aviv Israel Hapoalim Capital Markets. Shai has vast experience in Ilan Bahry, Tel Aviv Israel f i nance, c apital markets, Ilan has vast experience in real Guy analytical Goldberg, research Toronto and strategy, Canada Israeli estate business and marketing, man living with in Toronto 5 years for the with past 13 years 15 years of senior dividing positions his time between s pecia Toronto lizing and Miami. i n build Guy has i ngs broad knowledge in the Israeli and experience capital market: in Miami R/E designated and numerous for close conservation, contacts with banks C.E.O and of brokers. Tamir Fishman primarily in the main business Underwriting (subsidiary of Royal center of Tel Aviv which has the Ilan Bank Bahry, of Canada), Tel Aviv Deputy Israel C.E.O Ilan has greatest vast experience number in of real International estate and marketing, of Analyst with Underwriting, 5 years specializing and in buildings style buildings designated worldwide. for conservation, primarily senior manager in the main at business Hapoalim center of Tel Aviv which has the greatest number of International style buildings worldwide. Capital Markets.

16 GHG s management services LLC establishment Lien placement in favor of the investor (upon request) Execution of all property closing stages Complete renovations and ongoing repairs Finding and management of tenants, rent collections Arranging payment of HOA dues, property tax, insurance, etc. Submission of quarterly income and expense reports to investors with regular updates Profit distribution to investors accounts A to Z Asset Management Services A to Z Asset Management Services

17 Why GHG? GHG invests in every asset at the same terms as the investors (partnership model) GHG does not charge commissions nor fees until the selling of the asset (partnership model) GHG is fully committed to the purchase of the asset prior to presenting it to the investors Full transparency investor receives all closing documents, lease agreements and other relevant documents Option to place a lien in favor of investor giving complete security Property management is handled by a company owned and controlled by GHG The decision to sell a property is solely up to the investor GHG - ideal solution to R/E investments in the U.S with complete peace of mind GHG -ideal solution to R/E investments in the U.S with complete peace of mind

18 Thank you Please contact usin the US for any additional information Realtor Associate ILANA KRAUSS +1(305) Global Horizons Group LLC 14 E 1st Ave Suite 1111 Miami, FL Important note: The information in this presentation, including quotes, charts and news are provided by various independent information sources; not related with GHG. The content provided in this presentation is intended for informational purposes only and is not intended to constitute financial, accounting, legal, or tax advice. Many factors unknown to us may affect the applicability of any statement or comment that we make in our presentation to your particular circumstances. You should consult directly with a GHG professional, or your other advisers before acting on any information in this presentation.