Bullseye Investments Presentation 8 2011


Published on

Bullseye Investment Group Presentation

Published in: Economy & Finance, Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • Less than 16,000
  • Doesn’t work in my area Right Strategies and right cycle
  • Doesn’t work in my area Right Strategies and right cycle
  • Doesn’t work in my area Right Strategies and right cycle
  • Doesn’t work in my area Right Strategies and right cycle
  • Bullseye Investments Presentation 8 2011

    1. 1. Investing In The USA Bullseye Investment Group B.I.G.
    2. 2. What We’ll Cover <ul><li>Who Is Bullseye Investors Group B.I.G </li></ul><ul><li>Why Now Is The Best Time to Invest in </li></ul><ul><li>The USA </li></ul><ul><li>Why Multi-Family and Commercial Properties </li></ul><ul><li>Market Cycles </li></ul>
    3. 3. Bullseye Investment Group Kal S. Takhar Principal
    4. 4. Who’s Kal Takhar? <ul><li>Completed the acquisition, development </li></ul><ul><li>and sale of single family home </li></ul><ul><li>communities of nearly 1,000 units. </li></ul><ul><li>20+ years of Real Estate Development </li></ul><ul><li>California Real Estate Broker license 1995 </li></ul>
    5. 5. Started Small…..
    6. 6. Then Got B.I.G.
    7. 7. Why The USA? <ul><li>Shrinking Dollar </li></ul>
    8. 8. Dollar Bottoms at 7.5 Year Historic Fluctuation
    9. 9. Why The USA? <ul><li>America is Having a 50% Off Sale!! </li></ul><ul><li>Val Sklarov </li></ul>Historically Low Interest Rates
    10. 10. Economic Crisis
    11. 11. Association of Foreign Investors in Real Estate <ul><li>“ The United States is one of the most “stable and secure” countries for RE Investment and one of the best opportunities for appreciation” </li></ul>
    12. 12. Why Multi-Family Regardless of the housing bubble bursting, housing is always needed. 2nd quarter of 2011 shows sharp declines in national vacancies at 6% (Reis), the lowest since 2008 and compared with 7.8% a year earlier. Income, rental units are in high demand and that means higher occupancy and higher rents. Vacancy rates are falling fast (the excess supply is being absorbed). A record low number of multi family units will be completed this year (2011) and production of these new units will not be completed until 2012 or 2013, so vacancy rates will probably decline at least the rest of the year. Upcoming construction most likely will remain limited due to financing available and exceptionally high governmental agency fees to construct units. Both occupancy and rental rates are increasing. The more money a property makes the more it is worth.
    13. 13. Why Multi-Family Cash Flow Can provide a substantial positive cash flow. A well-chosen multifamily property can be a long-term positive cash-flow investment. These cash flows create comfortable lives, retirements, and ongoing income for the entire holding period. As value increases over time, the owner is also paying down the mortgage. This increases equity, and some investors borrow against it for leverage and more investments.
    14. 14. Why Multi-Family Quality Management If you choose a full service package you can have complete peace of mind as your management service collects rents, maintains the property, handles emergencies of all sorts and can generally run your property as if it is their own. They will even pay your property taxes, pay the mortgage payment and prepare your annual budget as well as giving you reports at agreed-upon intervals. They can screen your prospective tenants for you, checking their credit and the references so that you can be sure you have the most reliable and stable renters or leasers and weeding out prospects that could cost you money instead of being an asset to your property. They will handle maintenance requests by residents as well as maintaining your grounds, your units and your equipment. Property management services vary in their fees; some have a set charge per unit while others take a percentage of the rent. Property management services offer as much service or as little as you wish. 
    15. 15. Why Multi-Family Value Add Value Added is a strategy to purchase an apartment and enhance returns through increasing income. Like most groups seeking Value Added opportunities, Bullseye looks for properties where spending additional capital to make physical improvements can make a significant difference in the rent levels that can be obtained. Opportunities to cosmetically refresh or reposition the living experience (interior or exterior) to obtain additional income and enhance returns.
    16. 16. Why Multi-Family Less Risk Apartment investments offer relatively low risk combined with the ability to keep pace with or lead inflation through short-term leases. This allows for the potential for increasing income as the market rises. The latest Quarterly Survey of Apartment Market Conditions by the National Multi Housing Council (NMHC) confirms the general sense of strength in the apartment market. “Demand for apartment residences continues to rise, even as the overall economy remains hampered by the aftermath of the housing bubble,” said NMHC chief economist Mark Obrinsky in a statement accompanying the release of the report. All four survey measures by the NMHC of apartment market health in the second quarter of 2011 are quite strong. That is, markets are tighter, debt and equity capital are more available, and sales volume is rising. In fact, all four indexes were at or above 70—50 or above being the indication of improving conditions. Such sunny conditions have been fairly uncommon since the survey began in 1999, since this is only the fourth time ever that all the indexes have been above 70, and three of those instances have been since July 2010.
    17. 17. Why Multi-Family Highest Demand The apartment sector shines as the healthiest commercial real estate property type. Forecasters expect multifamily property revenues to climb throughout 2011, thanks to moderate job growth and accelerating household creation. The U.S. apartment vacancy rate topped out at 8% in the fourth quarter of 2009, but fell to 7.1% in the third quarter of 2010, and now 6% according to Reis. Look for rent growth and absorption to gain momentum in 2011 and beyond, say researchers. And, even though job growth has been relatively unimpressive as the U.S. has emerged from the recession, young adults, who tend to be renters rather than home buyers, are capturing a disproportionately larger share of the job additions. More specifically, the NMHC’s Market Tightness Index, which examines vacancies and rents, came in at 82, down from a record 90. This is the sixth straight quarter the index has topped 50. Though down slightly from last quarter’s record level, two-thirds of respondents noted tighter markets—meaning lower vacancies or higher rents or both—compared with three months earlier.
    18. 18. Why Multi-Family Changing Attitudes From 1965 to 2005, homeownership rates grew steadily. In 2005, however, homeownership rates not only stopped growing, they reversed. Had homeownership rates by age remained at 2005 levels, net renter household growth from 2005 to 2010 would have been just under 370,000. Instead, renter household growth surged by nearly 4 million over this period, and the net dissolution of renter households over age 30 was just 1.8 million — fully 3 million less than expected. Housing experts say that Americans are less interested in owning a home. They're worried about paying, more than ever, too much and then suffering negative equity. And, those worries are compounded by a lack of confidence about their own financial position and lingering high unemployment rates. Moreover, stricter lending standards now require larger down payments, and for the past several years, Americans have spent rather than saved. As a result, they don't have the funds to make a down payment, so they rent. A survey commissioned by the National Apartment Association conducted in May 2010 found that 76 percent of consumers prefer renting to ownership, a 5 percent increase from 2008. “Very few households are exiting the apartment sector to make first-time home purchases,” says Greg Willett, vice president of MPF Research, a national firm that tracks apartment performance.
    19. 19. Why Multi-Family Economies of Scale That is where true wealth will be achieved for those willing to pursue it. Compared to single family homes, multi-family or apartment buildings are far superior in terms of cash flow, but also far lower risk. Multi-family investments benefit from economies of scale, which results in lower expenses per unit and higher overall cash flow. The more units in a complex the greater the economies of scale (up to a point), so in larger apartment investments the per unit expenses are lower leaving more income available for you. There is a greater reward for the perceived risk of investing in apartment buildings. Because they are at a higher price point than single family home, more dollars in value are generated in multi-family investments through appreciation. In a market appreciating at 10% per year a $150,000 single family home will go up in value $15,000, whereas a $2,000,000 apartment building in that same market will go up in value $200,000 during the same period of time.
    20. 20. 5 Steps to Success <ul><li>Attract the Deals </li></ul><ul><li>Analyzing </li></ul><ul><ul><li>Deals </li></ul></ul><ul><ul><li>Market </li></ul></ul><ul><li>Creating Offers </li></ul><ul><li>Management Company </li></ul><ul><li>Exit Strategy </li></ul>
    21. 21. Commercial Real Estate <ul><li>Crash is Happening </li></ul><ul><li>Opportunities for the Next Few Years </li></ul><ul><li>We Haven’t Seen For Decades </li></ul>
    22. 22. Market Cycles <ul><li>Seller Market I </li></ul><ul><li>Rent rates in market have risen to the point that can support new construction </li></ul><ul><li>Local investors are convinced good times are here to stay </li></ul><ul><li>Demand for investment properties are at their highest of any particular stage of the market </li></ul><ul><li>As demand increases, the supply of investment properties for sale begins to dwindle </li></ul><ul><li>Construction becomes rampant </li></ul><ul><li>Bidding wars start to take place as properties come on the market </li></ul><ul><li>Buyers start offering above asking price </li></ul><ul><li>Speculation is in full swing </li></ul><ul><li>Employment continues to increase, wages continue to increase, construction at it’s height </li></ul>
    23. 23. Market Cycles <ul><li>Seller Market II </li></ul><ul><li>Seller’s Market Phase II is the riskiest phase of all four phases </li></ul><ul><li>At beginning of this phase, time properties stay on the market starts to increase </li></ul><ul><li>Gone are the days when multiple offers are presented to properties as they come on the market </li></ul><ul><li>Investors are waiting longer for buyers in the beginning stages of this phase </li></ul><ul><li>Land is still being purchased for speculation and the amount of construction becomes excessive </li></ul><ul><li>As investors realize market is changing they begin to put more and more on the market </li></ul><ul><li>Number of days on market continues to increase and sellers begin to lower prices </li></ul><ul><li>This fuels the downward trend, which causes investors to put more and more on the market </li></ul><ul><li>Job growth becomes stagnant </li></ul><ul><li>Oversupply of properties available for sale </li></ul>
    24. 24. Market Cycles <ul><li>Buyers Market I </li></ul><ul><li>Market is oversupplied -commercial properties – supply is one of the key forces that change a market </li></ul><ul><li>New construction will be overpriced and stagnant </li></ul><ul><li>Local economy is on the back side of its own economic cycle. The dynamics of the market change </li></ul><ul><li>Retail receipts are lower, office space becomes abundant, apartments start to see higher vacancies </li></ul><ul><li>It begins to take longer and longer to fill these spaces and pricing becomes soft </li></ul><ul><li>Unemployment will reach its height and investment property values will decline to the lowest levels </li></ul><ul><li>Bank foreclosures have risen to their highest levels </li></ul><ul><li>Latter stages of this market is the competition for these bank owned properties becomes fierce </li></ul><ul><li>National & local investors now realize there is money to be made in this market & new investors begin to invest in real estate for the first time </li></ul>
    25. 25. Market Cycles <ul><li>Buyer Market II </li></ul><ul><li>Market starts to absorb its oversupply as unemployment decreases </li></ul><ul><li>Rental spaces begin to fill up and time on market for properties begins to decline </li></ul><ul><li>Existing properties are being bought by investors who rehab and put them on market </li></ul><ul><li>More jobs accelerates this process </li></ul><ul><li>At this stage there is little to no construction. Oversupply just starting to get absorbed </li></ul><ul><li>Competition for labor begins to increase, because of this, salaries begin to rise. </li></ul><ul><li>More disposable income to be reinvested in to the community as purchase of goods and services from </li></ul><ul><li>the community is on upward track. </li></ul><ul><li>A cycle of prosperity has begun </li></ul>
    26. 26. Buyer Market I Seller Market II Buyer Market II Seller Market I Buyer Market I Market Cycle Millionaire Maker!!
    27. 27. <ul><li>Proven knowledge and track record of market place </li></ul><ul><li>Consistently Hit Our Numbers </li></ul><ul><li>Higher Returns than most investments </li></ul><ul><li>Consistently Communicate </li></ul>Why Invest With B.I.G.?
    28. 28. Investment Strategy <ul><li>Focus on the repositioning or redevelopment of assets that are underperforming due to their physical deterioration, functional obsolescence and/or operational constraints. Our investment objective is two fold. </li></ul><ul><li>The first is to realize cash-flows from operations that provide annual cash distributions to investors. </li></ul><ul><li>The second is, providing year-after-year gains in value, allowing for additional cash distributions from either disposition or refinance. </li></ul><ul><li>In general, B.I.G. takes a buy and hold approach to investing. However, the duration that we hold an asset is typically driven by the previously described market cycles. The investment period can be anywhere from 3 to 5 years or more. </li></ul><ul><li>We remain acutely aware of the market conditions in the areas that we invest and are always looking for the next emerging market for our network of investors.  </li></ul>
    29. 29. How do I invest? <ul><li>B.I.G. does not gather up capital and then proceed to acquire assets to where your investment is part of a pool or syndication. </li></ul><ul><li>Instead, properties are identified in advance of your investment. This is achieved by B.I.G. constantly seeking opportunities so that there are generally ample investments to choose from in varying investment size. </li></ul><ul><li>B.I.G. can then provide you alternatives so that you can choose your investment individually at which time your equity ownership of the asset is negotiated and established prior to acquisition versus being a part of a large pool of funds. </li></ul><ul><li>B.I.G. finds this to be more advantageous to the individual investor from standpoint of knowledge of potential return on investment as well as being able to identify the asset into which the investor has specifically invested for tax purposes, etc. </li></ul><ul><li>You must complete a simple Accredited Investor Disclosure Form (sample on next slide) and submit to us prior to further discussing your investment. </li></ul><ul><li>Shortly after submission of the Accredited Investor Disclosure Form we can meet and discuss your investment goals. We then commence providing you with investment opportunities. </li></ul>
    30. 30. Accredited Investor Disclosure Form <ul><li>Name _____________________________________________________________________________ </li></ul><ul><li>Street _____________________________________________________________________________ </li></ul><ul><li>City State Zip _________________________________________ Phone   ______________________ </li></ul><ul><li>Net Worth Certification I am a natural person whose individual net worth, or joint net worth with my spouse, at this time excluding the value of my primary residence exceeds $1,000,000. </li></ul><ul><li>Income Certification I am a natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with my spouse in excess of $300,000 in each of those years and I have a reasonable expectation of reaching the same income level in the current year. </li></ul><ul><li>Certification of Accredited Investor Status I have read and understand the meaning of &quot;accredited investor&quot; as described above and certify that I meet at least one of the requirement shown above as defined in Regulation D of the Securities & Exchange Commission. </li></ul><ul><li>Certification of Information Submitted I certify that all the information submitted is true and correct. </li></ul><ul><li>I am interested in information on the Investment . Please Contact Me </li></ul><ul><li>_________________________________________ ______________________ </li></ul><ul><li>Signature Date </li></ul>
    31. 31. Who Invests With B.I.G <ul><li>High Net Worth Individuals </li></ul><ul><li>Institutions </li></ul>