This proposal outlines a collaboration between real estate developers in South Florida to purchase distressed properties at below-market prices. The collaboration would pool financial resources to make higher bids than individual developers currently can. They plan to use a data-driven approach to identify and quickly acquire 15 promising properties by January 15th, 2009, with the goal of profiting from the increased value of real estate expected in 2011. Members would take on specified duties and the proposal minimizes risks by allowing members to withdraw support on any individual property purchase.

1. -Collaboration Proposal-
Statement of Intent
This proposal is a solicitation and effort to bring together a collaboration of a few distinct South
Florida players in the real estate market. The following will describe the details, risks, and plan
of action. If you so decide to participate, attached is an Articles of Organization form which by
typing your name into the Members column, save, and email the form back you certify your
acceptance to participate.
We have chosen the name Harvard Real Estate Development, LLC because many of us are
associated to the university and the familiarity of the name is associated with high quality and
prestige.
Executive Summary
The majority of offers on properties in the market are continuously being ‘low-balled’ until one
in several is accepted because of unique circumstances. The theory is that repetitive attempts will
deliver at least one good deal. This demonstrates a trivial success rate because much time can
elapse before a substantially low offer is accepted buy a seller.
This proposal is to create a more realistic approach to bids where a minimal 12% hurdle rate can
be settled for instead of 40 cents to the dollar. Then combine a financial pool from the involved
parties to be able to acquire several properties or multi-property bulk discounts to either sell for
just a little more to a bargain hunter or hold as deemed fit. Even though each property represents
little profit the theory here is that the sum of them will be significantly lucrative and we would be
able to compete with some of the larger developers in South Florida for bigger assets. Like
Biscayne Development Partners LLC doing Midtown, Forrest City’s Gulfstream, or Kite Realty
Group’s Delray Beach Marketplace.
In the market we are starting to see more transactions going to closing faster and the gap
narrowing between prices offered and sought for properties. Capital gains taxes are expected to
increase in either 2009 or 2010 and many buyers/investors are beginning to put their boots on.
To begin to acquire several properties we need to collaborate. Collaboration is the key to
success, by sharing knowledge, learning and building consensus. When a team or individual
lacks a certain trait or discipline, then the other collaborative party may be well versed in the
deficient area. Collaboration does not require leadership and can sometimes bring better results
through decentralization and egalitarianism. In particular, teams that work collaboratively can
obtain greater resources, recognition and reward when facing competition for finite resources.
Plan of Action

2. To find the best deals in the market, we will begin to look into some of the $400 Billions of loans
that are expected to expire in 2009 and find which have the option to extend or not. We will
acquire the names of the lenders who have those loans then find what asset class and size to
better depict the feasibility. Some management/advisory fees from the lenders may also be
garnered to fund our endeavor.
We will create a convention-line template to take in and spit out countless deals in hopes of
filtering out a select few that show the most potential. “You cant steal in slow-motion,” in other
words we will be financially prepared to close deals fast.
As soon as we have determined the partners for this venture we will form the operating budget
and outline individual involvement based on what you feel you would be most beneficial in.
Risk Factors
As with any project all the risk is held upfront and reduces as the project nears the end. In this
case, there is no risk until a property is to be decided for purchase. If a decision bid or pass is not
unanimous, anyone with a legitimate reason will be able to step out of the venture at any time.
There are no good statistics or concrete evidence on the amount of offers below asking
price or by what percent, but from asking a couple of local brokers and lenders it seems it is
around 60% of offers are less than 40% the asking price, and 8% of those are actually accepted.
Market Overview
Florida accounts for approximately 15% of all the distressed properties in the U.S. There are
currently 621,813 Pre-foreclosures, 173,596 Auctions and 107,773 REOs, which adds up to a
total of 903,182 distressed properties. These are only the ones that are known and in the public
records. By some experts estimates, the number of troubled households is probably double that if
not more. (Sources: foreclosures.com.)
Florida’s Economic Climate ranks No.1 in the U.S., according to Forbes’s Best States for
Business. Ranking 8th overall, Florida also scored among the Top 5 in the Labor and Growth
Prospects categories. (Forbes, August 2008)
Florida has the #1 Workforce in the nation, according to CNBC’s America’s Top States for
Business. Florida also ranked high in Technology & Innovation and Access to Capital. (CNBC,
July 2008)
The time to act is now as Real Estate is expected to recover in 2011. (Real Estate Investor, Aug.
2008)

3. Time Line
Jan 1st 2009:
Have a team organized and specified duties to each member with deadlines.
Jan. 15th 2009:
A list of 15 properties will be evaluated from the banks to begin to acquire the prime few.
Conclusion
We will undoubtedly be successful when working together with the team that has been hand
chosen. To begin the ball rolling just confirm with your name on the Articles of Organization
and a quick statement of what you could do to aid the team.
Any questions comments or concerns are encouraged in order to evolve any inefficiency.
Thank you.
Scott L. Podvin, Managing Director
The Crest at Waterford Lakes, LLC
Miami Ofc: (305) 665-3970
cell: (786) 229-8977
spodvin@post.harvard.edu
Kelvin Xuna, CEO
Logical Real Estate, LLC
Cell: (720)937-9103
kxuna@post.harvard.edu