1. Emerging Real Estate Markets

2. Objectives
Recognize and Profit From Emerging Markets Value Add Through Micro Repositioning Other Factors

3. In The Beginning……
3 - 6 Families in Boston Emerging Markets Northeastern U – Economics Harvard Business School – OPM Portfolio of 8,000 Plus Units Largest Residential Deal In Texas ,220 Units

5. The Real Estate Market Cycle
Seller’s Market II
Buyer’s Market I
Buyer’s Market I
Seller’s Market I
Buyer’s Market II

6. BMI
SMII
SMI
BMI
BMII
BMII

7. The Real Estate Market Cycle
Seller’s Market II
Buyer’s Market I
Buyer’s Market I
Seller’s Market I
Buyer’s Market II

8. The Real Estate Market Cycle
Seller’s Market II
Buyer’s Market I
Buyer’s Market I
Seller’s Market I
Buyer’s Market II

9. Sellers Market Phase I Supply of Property Dwindles
Foreclosures start to decrease in number
Properties Sell Fast
Unemployment Low
Prices/Rent Rising
Speculation in full swing
Construction starts accelerate – Condo Converters
Existing properties changed to highest and best use/tear downs
Demand At It’s Highest

10. Sellers Market Phase I
Key Strategy Buy and Hold Flip

11. The Real Estate Market Cycle
Seller’s Market II
Buyer’s Market I
Buyer’s Market I
Seller’s Market I
Buyer’s Market II

12. The Real Estate Market Cycle
Seller’s Market II
Buyer’s Market I
Buyer’s Market I
Seller’s Market I
Buyer’s Market II

13. Sellers Market Phase II
Time On Market Increases
# of Properties Increases
Rent become stagnant
Still Getting Inflated Prices
Potential for overbuilding
Investment properties are bought on speculation/not cash flow
Demand for construction and materials are still rising
Foreclosures remain low but steady
Business/Jobs Begin To Slow

14. Sellers Market Phase II
Key Strategy Sell Off Inventory Flip

15. The Real Estate Market Cycle
Seller’s Market II
Buyer’s Market I
Buyer’s Market I
Seller’s Market I
Buyer’s Market II

16. Buyers Market Phase I Price/Rents Falling Unemployment Highest
Excess supply
Time on market/longest
No Speculation
Existing inventory sitting idle, in need of repair
Foreclosures sharply increase
Construction – overpriced and stagnant
Inv Prop At Lowest Levels
Demand At Lowest Point

17. Sellers Market Phase I
Key Strategy Buy and Hold For Cash Flow

18. The Real Estate Market Cycle
Seller’s Market II
Buyer’s Market I
Buyer’s Market I
Job Fulfillment
Seller’s Market I
Buyer’s Market II
Job Growth
Job Construction

19. The Real Estate Market Cycle
Seller’s Market II
Buyer’s Market I
Buyer’s Market I
Seller’s Market I
Buyer’s Market II

20. Buyers Market Phase II Time On Market Decreases Absorbing Oversupply
Job Growth Increases
Prices Slowly Increase
Demand begins to increase
Very Little Speculation
Existing Properties Being Rehabbed
Foreclosure – competition fierce as numbers decline
Rents Begin To Slowly Rise

21. Buyers Market Phase II
Key Strategy Buy and Hold!!

22. Emerging Markets
Large Markets Markets – Late Innings Dallas Austin San Francisco Anaheim Atlanta Oakland Cape Coral Denver Orlando

23. Emerging Markets Santa Rosa, CA Port St Lucie, FL Boise Knoxville, TN
Money In Secondary Markets!
Fort Collins, CO Columbia, SC
Santa Rosa, CA Port St Lucie, FL
Boise Knoxville, TN
San Antonio Waco, TX
Richmond, VA Montgomery, AL
Daytona Beach Jacksonville, FL
Chattanooga, TN Dayton, OH
Manchester, NH
Akron, OH
St Louis
Reno

24. Micro Repositioning
86 – 90% Occupancy B Property/A-B Area Upgrade Exterior - Landscaping, Parking Lot, Signage, Leasing Office, Minor Ext Repairs, Paint Exterior, Common Areas Interior – Carpet Cleaning, Paint, Spray Counter Tops, Lighting Package Total Cost - $1500/3,500 per door Complete Time – 2/4 Months 18 Month Refinance Into Long Term Debt/ Equity Return

25. Senior Living Facilities

26. Free Gift From
Wilson Conferences!