Brownstone Realty Group LLC Lessons in Rehabbing – BAREIA Meeting, February 2013 Brownstone Realty Group LLC * 302 Broadway Raynham MA *

Agenda Introductions The Opportunity History & Experience Case Studies Moving Forward Question & Answer

Brownstone Realty Group LLC * 302 Broadway Raynham MA * Introductions The Brownstone Team ◦Christopher Coute ◦Attorney Tom Ramondetta ◦Kim Harrington ◦Melissa Ryan ◦Kim Kelliher

Brownstone Realty Group LLC * 302 Broadway Raynham MA * The Opportunity REOs and short sales made up nearly 33% of sales in 2012 ◦This % should increase in 2013 due to high shadow inventory and REO numbers Prices and confidence are on the rise

Brownstone Realty Group LLC * 302 Broadway Raynham MA * History and Experience Full time agents and investors since 2005 Facilitated over $40 million in deals 21 rehabs in 2012 On track to do 33 rehabs in 2013

Brownstone Realty Group LLC * 302 Broadway Raynham MA * Keys To A Successful Rehab Know your market Build an all-star team (trust, competence) ◦Contractors/trades people ◦Agents ◦Attorneys ◦Funding sources Personally verify the license and insurance of contractors Price the finished product a bit under market value

Lombard Street Plymouth, MA BeforeAfter Brownstone Realty Group LLC * 302 Broadway Raynham MA *

Lombard Street Details Source – Short sale via personal referral Outcome – Multiple offers, first week What Went Well – Sold above asking price Key Learning Concept – Verify contractors pull permits, and have your GC attend the home inspection with your agent upon resale of the property

Sewell Street Brockton, MA BeforeAfter Brownstone Realty Group LLC * 302 Broadway Raynham MA *

Sewell Street Details Source – Short sale via direct marketing Outcome – Multiple offers, first week on MLS What Went Well – Sold above asking price Key Learning Concept – Contribute toward the liens on a short sale to get the deal done when needed

South Elm W. Bridgewater, MA BeforeAfter Brownstone Realty Group LLC * 302 Broadway Raynham MA *

South Elm Street Details Source – REO Outcome – Light rehab What Went Well – 45 people at first OH Key Learning Concept – light rehab vs. full rehab

Lucy Lane, Brockton MA BeforeAfter Brownstone Realty Group LLC * 302 Broadway Raynham MA *

Lucy Lane Details Source – REO, paid above asking price Outcome – Sold by word of mouth What Went Well – Sold before placed on market Key Learning Concept – Location! Location! Location!

Poole Street Ludlow, MA BeforeAfter Brownstone Realty Group LLC * 302 Broadway Raynham MA *

Poole Street Details Source – Short sale via referral Outcome – Sold after 140 days What Went Well – seller was eager to move on and worked with us very well Key Learning Concept – when to use local real estate agents

Cooper Street, Agawam MA BeforeAfter Brownstone Realty Group LLC * 302 Broadway Raynham MA *

Cooper Street Details Source – Short sale via agent referral Outcome – Sold in 45 days on MLS What Went Well – Restoring historical details of the home Key Learning Concept – Pool issues

Lincoln Street, Stoughton MA BeforeAfter Brownstone Realty Group LLC * 302 Broadway Raynham MA *

Lincoln Street Details Source – Short sale via agent referral Outcome – Sold on MLS What Went Well – Large rehab, 2 nd floor addition Key Learning Concept – Listed too high, experienced but slow contractor

Brownstone Realty Group LLC * 302 Broadway Raynham MA * Highland Street Details Source – Short sale via referral Outcome – Sold by word of mouth marketing prior to rehab completion What Went Well – Rehab done based on buyers choices Key Learning Concept – male/female perspective

Meadow Street, Athol MA BeforeAfter Brownstone Realty Group LLC * 302 Broadway Raynham MA *

Meadow Street Details Source – Wholesale deal Outcome – Sold on MLS What Went Well – Purchased at a very low LTV Key Learning Concept – Make sure rehab is 100% complete before listing

Cannon Lane, Orange MA BeforeAfter Brownstone Realty Group LLC * 302 Broadway Raynham MA *

Cannon Lane Details Source – Short sale via agent referral Outcome – Sold 1 st week on MLS What Went Well – Beautiful garage added tremendous value Key Learning Concept – Trust the local expert

Floral Street, Taunton MA BeforeAfter Brownstone Realty Group LLC * 302 Broadway Raynham MA *

Floral Street Details Source – REO Outcome – Sold for full price, first week on MLS What Went Well – Multiple offers Key Learning Concept – Work your sphere

Montello Road, Chicopee MA BeforeAfter Brownstone Realty Group LLC * 302 Broadway Raynham MA *

Montello Road Details Source – Short sale via agent referral Outcome – Sold on MLS What Went Well – Quick Sale Key Learning Concept – The importance of educating real estate agents on the short sale process, etc.

Sandwich Street, Plymouth MA BeforeAfter Brownstone Realty Group LLC * 302 Broadway Raynham MA *

Sandwich Street Details Source – Short sale via referral Outcome – Sold on MLS What Went Well – Quick sale to cash buyer Key Learning Concept – How bankruptcy can affect a short sale

Pearl Street, Brockton MA BeforeAfter Brownstone Realty Group LLC * 302 Broadway Raynham MA *

Pearl Street Details Source – REO Outcome – Sold before listing on MLS What Went Well – Quick sale Key Learning Concept – Protect your copper!

Lee Terrace, Hanson MA BeforeAfter Brownstone Realty Group LLC * 302 Broadway Raynham MA *

Lee Terrace Details Source – Elderly sale Outcome – Sold on MLS What Went Well – Quick sale (2 weeks) Key Learning Concept – Don’t be bullied by buyers

Colonial Ave, Springfield MA BeforeAfter Brownstone Realty Group LLC * 302 Broadway Raynham MA *

Colonial Avenue Details Source – Short sale via agent referral Outcome – Wholesaled quickly What Went Well – Quick sale (2 weeks) Key Learning Concept – You can make money without a lot of rehab

Willette Street, Chicopee MA BeforeAfter Brownstone Realty Group LLC * 302 Broadway Raynham MA *

Willette Street Details Source – Short sale via agent referral Outcome – Sold on MLS What Went Well – Quick sale (3 weeks) Key Learning Concept – Sometimes easier to give a credit than do repairs

Brownstone Realty Group LLC * 302 Broadway Raynham MA * Moving Forward We currently have 16 properties in process, goal of 33 completed by year end Fewer short sales, more REOs and ‘distressed with equity’ sales Joint venture partnership opportunities – let’s work together!

Brownstone Realty Group LLC * 302 Broadway Raynham MA * Questions? Contact Information Christopher Coute Kim Harrington Kim Kelliher