Multifamily Investments Northern California Bullseye Investment Group B.I.G.
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>Multifamily real estate? </li></ul><ul><li>Why Multi-Family real estate? </li></ul><ul><li>Why invest with B.I.G.? </li></ul>
Bullseye Investment Group Kal S. Takhar Principal
Who’s Kal Takhar? <ul><li>Completed the acquisition, development and sale </li></ul><ul><li>of single family home communities of nearly </li></ul><ul><li>1,000 units. </li></ul><ul><li>20+ years Real Estate Development/Construction </li></ul><ul><li>California Real Estate Broker license 1995 </li></ul>
Why now is the best time to invest in Multifamily Real Estate? <ul><li>Crash is Happening </li></ul><ul><li>“ Be fearful when others are greedy and greedy when others are fearful” </li></ul><ul><li>Warren Buffett </li></ul><ul><li>Opportunities for the next year or so that we haven’t seen for decades </li></ul>
Why Multi-Family 2nd quarter of 2011 shows the lowest vacancy rate since 2008 Rent rising to historic highs of 2000 & 2005 Record low production of new units 2011 Shifting favorable consumer sentiments toward renting versus homeownership
Why Multi-Family Cash Flow Can provide a substantial positive cash flow. Create comfortable lives, retirements, and ongoing income for the entire holding period. As value increases over time, the owner via tenants rent is also paying down the mortgage. This increases equity, and some investors borrow against it for leverage and more investments.
Why Multi-Family Quality Management You invest without having to “get your hands dirty” managing the asset You will not have to deal with tenants, change light bulbs or replace toilets Property management services offer as much service or as little as you wish.
Why Multi-Family Value Add Acquire value-add multi-family properties below replacement cost and projected stabilized value Perform property-appropriate capital expenditures focused on driving rental growth Complete lease-up of repositioned asset with increased rental rates Sell stabilized properties and provide short-term investor returns.
Why Multi-Family Less Risk Low risk combined with ability to keep pace with inflation through short-term leases. Demand for apartment residences continues to rise, even as the overall economy remains hampered by the aftermath of the housing bubble As of 2 nd quarter 2011, the markets are tighter, debt and equity capital are more available, and sales volume is rising.
Why Multi-Family Highest Demand Limited supply Growing demand Household creation continues Young adults tend to be renters and are capturing a disproportionately larger share of job additions. Eventually recession will end causing an even higher demand
Why Multi-Family Changing Attitudes In 2010 was the largest drop in homeownership in 70 years Americans are less interested in owning a home 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 Lack of consumer confidence in single family housing, their own financial position and lingering unemployment rates Very few households are exiting the apartment sector to make first-time home purchases due to fears of negative equity, stringent financing and lack of down payment funds
Why Multi-Family Economies of Scale Compared to single family homes, apartment buildings are far superior in terms of cash flow, but also far lower risk. Lower expenses per unit Higher overall cash flow. The more money your building makes the more it is worth
<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.?
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>
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>
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 "accredited investor" 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>
Who Invests With B.I.G <ul><li>High Net Worth Individuals </li></ul><ul><li>Institutions </li></ul>