Raul sanchez de varona and his team at TSG

RealEstateOpportunity
DistressedProperties
ThePremierWholesalerofDistressedProperties

This is a confidential memorandum intended solely for your own limited use to determine whether you wish
to participate in theTSG Distressed Properties Purchase Program.
This document is not a public offering. It contains brief information regarding the business model prepared
by TSG Realty and The Solution Group Corp. It has been developed based on information developed by the
company. It does not purport to be all-inclusive nor does it contain all the information which a prospective
buyer may desire. Neither TSG, nor any of its members, directors, managers or employees make any
representation or warranty, expressed or implied, as to the accuracy or completeness of this memorandum
or any of its contents, and no legal liability is assumed or is to be implied by any of the aforementioned with
respect thereto.
The information in this memorandum has been gathered from sources that are deemed reliable, but neither
the promoter nor any of its members warrant or represent that the information is true and correct.
Prospective buyers are advised to verify the information independently. TSG reserves the right to change
any information in this memorandum or withdraw the properties from the market at any time, without notice.
This memorandum, is not be construed as an offer or as any part of a contract to invest in any properties or to
acquire any equity interest in the promoter thereof.
By you reading this presentation, you agree that it and the information contained herein is of a confidential
nature and that you will not disclose this memorandum or any part of the contents to any person, firm, entity
without the prior written authorization of the developer.
If you do not wish to pursue this matter, kindly return this confidential memorandum to The Solution Group
Corp.
Photocopying or other duplication is not authorized.
CONFIDENTIALITY AGREEMENT
www.thesolutiongroup.net
THE PREMIER WHOLESALER OF DISTRESSED PROPERTIES

INDEX
01
02
03
04
05
06
07
TSG Track Record
Market Trends Analysis
News
Business Process
Properties
Property Map
Portfolio Analysis

728
Distressed properties acquired
by TSG by foreclosure
programs in Miami-Dade, Broward
& Palm Beach Counties.
Debt amount acquired
by TSG in the last 16 months.
44.7%Average price of TSG properties
that last less than 60 days in the market.
38
The average time that TSG
properties take before being
delivered to the commercial
department.
All remodeled properties
by TSG are delivered with
the best standards for rent.
382
The number of properties analyzed
by TSG’s acquisition department during the last year.
U$110,340,180
52,220
01
TSG is a vertically integrated company which has identified a unique opportunity within the US housing
market crisis and has developed a unique program to take advantage of it, particularly in South Florida.
Through this Distressed Assets Program, TSG, after diligent inquiry and analysis, acquires "distressed"
properties, defined as residential real estate which either have been acquired by foreclosing mortgage
lenders, or are REO's and Short Sales. After acquisition, TSG rehabilitates the properties, rents and
stabilizes them and then packages them for sale individually or in groups.
With a multidisciplinary team with over 50 years of collective experience, TSG identifies submarkets where
to participate, taking into account the median household income, the demand of the market and its potential
appreciation. Having identified the opportunity, TSG proceeds to the acquisition and stabilization of the
property.
TSG's Construction Division administers and supervises the rehabilitation process, pursuant to established
standards and upon completion delivers the properties to the Leasing Division which is responsible for
renting them.
Once the properties are sold by TSG Realty, the company's Property Management Division provides
property administration services to its customers.

São Paulo – De um lado, o
estouro da bolha imobiliária
na crise de 2008 provocou
uma queda vertiginosa no
preço dos imóveis em
Miami. De outro, a
valorização do real nos
A ideia é que o investidor vire proprietário de imóveis já alugados,
conseguindo faturar por duas frentes. De imediato, será possível embolsar o
valor do aluguel pago pelo inquilino norte-americano, um retorno anual
líquido de 7% a 8% sobre o preço do imóvel, superior ao rendimento da
poupança no Brasil. No longo prazo, a expectativa é que as casas também
se recuperem do desconto sofrido com a crise de 2008, ficando até 45%
mais caras.
Presidente do The Solution Group (TSG), incorporadora que atua na compra
e venda de casas subavaliadas, Camilo Lopez afirma que cerca de 50 mil
famílias em toda a Flórida passaram de donas a inquilinas desde a quebra
do Lehman Brothers. Apertada a torneira do crédito, muita gente optou por
entregar o imóvel ao banco, já que os preços derreteram, mas os
financiamentos permaneceram caros, com as parcelas acordadas no auge
da especulação imobiliária.
As famílias passaram a alugar e as incorporadoras entraram em cena,
garimpando achados no mercado e suprindo a nova demanda. Nos últimos
16 meses, a TSG adquiriu 628 propriedades, uma compra estimada em 90
Piscina em condomínio em Miami: preço das casas parte de 65 mil dólares
É possível comprar imóvel em Miami por 65
mil dólares
01

01

02 Análisis de
tendencias del mercado
01

S&P/Case-Shiller U.S. National Home Price Index
The chart shows the index levels for the 10-City and 20-City Composite Indices. As of July 2011,
average home prices across the United States are back to the levels where they were in the
summer of 2003.
200
180
160
140
120
100
80
60
20%
15%
5%
0%
-5%
-10%
-15%
-20%
-25%
1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
10%
US National, index level (left)
US National, %chya (right)
Nationally, home prices are back
to their 2003 levels
Record low decline of 18.9% in
2009 Q1 (solid line)
02

Real Estate Cycle
02
Optimism
Sales Rate Increase
Speculation
2006
Sales Rate Decrease
Uncertainty
Recession Sales Rate Increase
Optimism
Recovery
2011
Real Estate Cycle
MINIMUM
OPPRORTUNITY
MAXIMUM RISK
MINIMUM
OPPRORTUNITY
MAXIMUM RISK
As shown in the graph, the real estate market is now at its moment of most certainty and
the risk-opportunity rate is at its optimum peak.

Apartment Rent and Vacancy Trends
AverageEffectiveRent
VacancyRate
Effective Rent
Vacancy Rate
$700
$800
$900
$1,000
$1,100
11**10*090807060504030201
2%
4%
6%
8%
10%
Employment Growth Chart
-7%
-5%
-3%
1%
3%
2008
Miami Fort Lauderdale West Palm Beach
-1%
2009 2010 2011
Asking Rent
$1,000
$1,060
$1,080
$1,120
$1,140
2008
Miami Fort Lauderdale West Palm Beach
$1,100
2009 2010 2011
$1,040
$1,020
$85,500
$14,000
$7,373 $6,627
$-
$50,000
$100,000
$150,000
$200,000
$250,000
Annual Net Rent
2010 - 2011 Properties Portfolio Example
$220,000
$8,300 $3,340
$-
$50,000
$100,000
$150,000
$200,000
$250,000
Property Value Annual Gross RentAnnual Maintenance
Costs
Annual Net Rent
2003 - 2006 Properties Portfolio Example
2006–2007 ANNUAL RETURN
2,50%
7.75%
2010–2011 ANNUAL RETURN
Property Price Decline
Rent Increases
Property Value Annual
Gross Rent
Annual
Maintenance Costs
$11,640
02
Graph information acquired by the “2011 National Apartment Report” by Marcus & Millichap
Income producing properties' price drops and rent increases have improved substantially
net returns. In the case of the preselected income producing portfolio rent has been
multiplied by a factor of 3 increasing from 2.5% to a very attractive 7.75%.

03
The crisis of 2008 led developers to having to sell their inventory
below replacement costs. However, we are starting to see signs later
this year that the market begins to recover.

03
South Florida is the default capital of the country. Here in Miami-Dade
County, one out of five households with mortgages is in foreclosure.
Home sales in the metropolitan area during the first half of the year
rose 16 percent from 2010 for the best spring since 2007, according to
the research firm DataQuick, far outpacing the negligible growth in the
rest of the country. Two-thirds of the sales were all cash.
As a result, the balance between supply and demand in South Florida is
shifting. In late 2008, as the financial crisis was peaking, there were
108,000 properties for sale and hardly any buyers. The region became a
symbol of excess. Buyers abandoned their deposits and reneged on
deals, buildings went bankrupt and squatters moved in. Now there are
fewer than 48,000 properties for sale, Condo Vultures said. And with
supply diminished, homes have value again.
Prices, after a brutal drop, are firming up or even increasing. During
the first six months of the year, there were 439 sales for at least $2
million, up 13 percent from last year. Experts say people thought it
would take at least a decade to get back to this point.

EQUITY RESIDENTIAL
Apartment landlord enjoys 3.3 percent rise in funds
-Bloomberg News
By Oshrat Carmiel
Equity Residential, the largest publicity traded U.S. Apartment landlord, said
second-quarter funds from operations rose 3.3 percent as the nations rents climbed
and vacancies declined.
FFO, which gauges a property company’s ability to generate cash, rose to $180.7
million from $174.9 million a year earlier. On a per share basis, FFO was
unchanged at 58 cents, the Chicago based real estate investment trust said
Thursday in a statement.
The compnay was expected to have FFS of 60 cents a share, the average estimate of
21 analysts in a Bloomberg survey.
U.S. apartment rents climbed 5.2 percent in the 12 months through June, as a weak
homebuying market fuled demand for leasing, according to Axiometrics, a
Dallas’based research company. REIT landlords are benfiting from a limited
supply of apartments and better job propects for recnet college graduates,
according to Anthony Paolone, an analyst with JPMorgan Chase in New York.
Eqity Residential sold more than $1 billion of apartment properties in the second
quarter, according to Real Capital Analytics, taking advantage of investor demand
amid the promise of rent growth.
FFO, used by REITs, doesn’t conform to generally accepted accounting principals.
Equity Residential reported so called normalized FFO of 60 cents a share,
compared with 58 cents a year earlier. Normalized FFO excludes items that are not
comparable from perido to period, such as asset impairments of penalties for early
payment of debt the company said
03
U.S. apartment rents climbed 5.2 percent in the 12 months through June, as a weak
homebuying market fueled demand for leasing, according to Axiometrics Inc., a
Dallas-based research company. REIT landlords are benefiting from a limited supply
of apartments and better job prospects for recent college graduates, according to
Anthony Paolone, an analyst with JPMorgan Chase & Co. in New York.

03

04
TSG
TSG selects the best properties
after an extensive analysis
Property yields
between an estimated
return of 7% to 8%
Property ready
for sale
Clean
Title
TSG Leasing Team
TSG Leases
the property
TSG MANAGEMENT TEAM
Renovated Property
with clean title
TSG ACQUIRES THE PROPERTY
TSG Construction Team
TSG’s Financial
Analyst Team
Property 1
Property 2
Property 3
Property 4
Property 5
Property 6
Property 7
Property 8
Property 9
TSG Financial Analyst Team
TSG assembles a
diversified portfolio
Properties
Foreclosed, REO and Short Sale
Properties
COURT / BANK
TSG Ensures:
Ÿ Take possesion of property
Ÿ Change of locks
Ÿ Removal of any illegal tenant
Ÿ Remodeling
Ÿ Secure the property
TSG is responsible for:
Ÿ Rent Collection
Ÿ Expense Payments
Ÿ Supervise potential repairs
Ÿ Prepare annual reports

05
Properties

TSG REF: TDP 5
La Hacienda
18308 NW 68 AVE No. J Miami Lakes, FL 330151 Bed / 1 Bath
$ 81,620
Sq. Ft. 715
$
$
$
$
$
950
95
176
75
604
8.89%
$200,000
$150,000
$100,000
$50,000
$25,000
$0
$165,000
$81,620
$155,135
$117,975
$89,500
05
to the documents required by section 718.503, Florida Statutes, to be furnished by the developer to a buyer or leasee. Not an offer where prohibited by state statutes.
Equal Housing Opportunity. Oral representations cannot be relied upon as correctly stating representations of the developer. For correct representations, reference should be made
TYPE: CONDO
Sales Price:
Completely Renovated
Prop. Man:
Estimated Monthly Rent:
Estimated R/P Taxes / Mth:
HOA’s:
NOI:
CAP:
Historic
Value
Judgement
Amount
Replacement
Value
Fair Market
Value
TSG Sales
Price

TSG REF: TBB 1
Lakeview South Condo
5275 NW 10th Court #307 Plantation, FL 333131 Bed / 1 Bath
$ 67,500
Sq. Ft. 957
$
$
$
$
$
799
50
230
75
444
7.89%
$200,000
$150,000
$100,000
$50,000
$25,000
$0
$160,000
$67,500
$157,905 $155,991
$75,000
05
TYPE: CONDO
Sales Price:
Prop. Man:
HOA’s:
NOI:
CAP:
Historic
Value
Judgement
Amount
Replacement
Value
Fair Market
Value
TSG Sales
Price

TSG REF: SCP 1
Waterways Taheri
1211 Imperial Lake RD West Palm Beach, FL 334132 Bed / 2 Bath
$ 125,000
Sq. Ft. 1,384
$
$
$
$
$
1,200
147
100
75
878
8.43%
$300,000
$250,000
$200,000
$150,000
$100,000
$0
$260,000
$125,000
$256,052
$228,360
$130,000
05
TYPE: Townhome
Sales Price:
Prop. Man:
HOA’s:
NOI:
CAP:
Historic
Value
Judgement
Amount
Replacement
Value
Fair Market
Value
TSG Sales
Price

TSG REF: SCD 6
Venetia Gardens
2911 SE 13 Ave #102-49 Homestead FL 330352 Bed / 2 Bath
$ 65,000
Sq. Ft. 822
$
$
$
$
$
755
64
229
75
407
7.51%
$200,000
$150,000
$100,000
$50,000
$25,000
$0
$165,000
$65,000
$140,944
$135,630
$77,500
05
TYPE: CONDO
Sales Price:
Prop. Man:
HOA’s:
NOI:
CAP:
Historic
Value
Judgement
Amount
Replacement
Value
Fair Market
Value
TSG Sales
Price

TSG REF: SCD 3
Bluewaters
24386 SW 109 CT #24386 Homestead FL 330323 Bed / 2 Bath
$ 115,000
Sq. Ft. 1,447
$
$
$
$
$
1,200
308
105
75
712
7.43%
$300,000
$250,000
$200,000
$150,000
$100,000
$0
$305,000
$115,000
$289,122
$238,755
$125,000
05
TYPE: Townhome
Sales Price:
Prop. Man:
HOA’s:
NOI:
CAP:
Historic
Value
Judgement
Amount
Replacement
Value
Fair Market
Value
TSG Sales
Price

TSG REF: SCB 1
Verano
8002 SW 21st CT Miami, FL 330252 Bed / 2 Bath
$ 105,000
Sq. Ft. 1,000
$
$
$
$
$
1,100
76
218
75
731
8.35%
$250,000
$200,000
$150,000
$100,000
$50,000
$0
$225,000
$105,000
$184,808
$165,000
$109,000
05
TYPE: CONDO
Sales Price:
Prop. Man:
HOA’s:
NOI:
CAP:
Historic
Value
Judgement
Amount
Replacement
Value
Fair Market
Value
TSG Sales
Price

TSG REF: NGP 1
Kensington of Royal Palm Place
350 Crestwood Cir #105 Royal Palm Beach FL 334112 Bed / 2 Bath
$ 99,500
Sq. Ft. 1,177
$
$
$
$
$
1,150
118
339
75
618
7.45%
$250,000
$200,000
$150,000
$100,000
$50,000
$0
$245,000
$99,500
$236,678
$194,205
$110,000
05
TYPE: CONDO
Sales Price:
Prop. Man:
HOA’s:
NOI:
CAP:
Historic
Value
Judgement
Amount
Replacement
Value
Fair Market
Value
TSG Sales
Price

TSG REF: NGD 1
Caribbean Isles Villas
2733 NE 3rd Court #106 Homestead, FL 330333 Bed / 2 Bath
$ 87,000
Sq. Ft. 1,194
$
$
$
$
$
979
161
249
75
494
6.82%
$300,000
$250,000
$200,000
$150,000
$100,000
$0
$257,000
$87,000
$209,884
$197,010
$89,900
05
TYPE: CONDO
Sales Price:
Prop. Man:
HOA’s:
NOI:
CAP:
Historic
Value
Judgement
Amount
Replacement
Value
Fair Market
Value
TSG Sales
Price

TSG REF: NGB 2
Courtyards at Cimarron
850 E Commercial Blvd. 243 E, Oakland Park FL 333342 Bed /1 Bath
$ 79,000
Sq. Ft. 830
$
$
$
$
$
900
57
229
75
539
8.18%
$200,000
$150,000
$100,000
$50,000
$25,000
$0
$189,000
$79,000
$180,136
$136,950
$85,000
05
TYPE: CONDO
Sales Price:
Prop. Man:
HOA’s:
NOI:
CAP:
Historic
Value
Judgement
Amount
Replacement
Value
Fair Market
Value
TSG Sales
Price

TSG REF: HFD 2
Biscayne Beach Club
10500 SW 155 CT #1026 Miami FL 331961 Bed /1 Bath
$ 77,300
Sq. Ft. 747
$
$
$
$
$
925
115
236
75
499
7.75%
$250,000
$200,000
$150,000
$100,000
$50,000
$0
$235,000
$77,300
$231,414
$123,255
$85,000
05
TYPE: CONDO
Sales Price:
Prop. Man:
HOA’s:
NOI:
CAP:
Historic
Value
Judgement
Amount
Replacement
Value
Fair Market
Value
TSG Sales
Price

TSG REF: HCB 2
Villas at Lakeview
5200 NW 31st Ave #174 Fort Lauderdale, FL 333271 Bed / 1 Bath
$ 67,000
Sq. Ft. 702
$
$
$
$
$
795
64
202
75
454
8.13%
$200,000
$150,000
$100,000
$50,000
$25,000
$0
$155,000
$67,000
$141,527
$115,830
$78,000
05
TYPE: CONDO
Sales Price:
Prop. Man:
HOA’s:
NOI:
CAP:
Historic
Value
Judgement
Amount
Replacement
Value
Fair Market
Value
TSG Sales
Price

TSG REF: HCB 1
Lakewood at Emerald Hills
3700 N 56 Ave #1013 Hollywood, FL 33021
TYPE: CONDO
1.5 Bed / 1 Bath
$ 79,900
Sales Price:
Sq. Ft. 749
$
$
$
$
$
950
93
234
75
548
8.23%
Prop. Man:
HOA’s:
NOI:
CAP:
$200,000
$150,000
$100,000
$50,000
$25,000
$0 Historic
Value
$165,000
$79,900
$144,224
$123,585
$83,000
05
Judgement
Amount
Replacement
Value
Fair Market
Value
TSG Sales
Price

06
Palm Beach County
Miami Dade County
Broward County

$
$
$
$
$
$
$
$
$
$
$
$
$
$
07
$
$
$
$
$
$
$
$
$
$
140,676
(16,171)
(30,563)
(10,800)
83,141
7.93%
11,723
(1,348)
(2,547)
(900)
6,928
Rental Income (Annual)
Total
Rental Income
Taxes
HOA’s
Property Management
Total
CAP / (Ratio)
Per Unit
Number of Units
Area (Sq Ft)
Historic High
Sq Ft Value
Fair Market Value
Sq Ft Value
TSG Sales Price
Sq Ft Value
Discount over Historic Value
Sq Ft Value
Percentage
Discount over Fair Market Value
Sq Ft Value
Percentage
11,724
Total Per Unit
977
12
2,526,000
1,136,900
1,048,820
1,477,180
88,080
210,500
215.46
94,742
96.97
87,402
89.46
123,098
126.00
7.75%
7,340
7.51
58.48%

$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
Price Behavior Analysis
$0 Valor
Histórico
Deuda
Bancaria
Valor de
Reposición
Valor
del Mercado
Precio
de Venta
$2,526,000
$1,048,820
$2,327,879
$1,932,546
$1,136,900
100%
80%
60%
40%
20%
10%
Percentage Behavior Analysis
$0 Valor
Histórico
Deuda
Bancaria
Valor de
Reposición
Valor
del Mercado
Precio
de Venta
100%
42%
92%
77%
45%
$250
Sq. Ft. Behavior Analysis
Valor
Histórico
Deuda
Bancaria
Valor de
Reposición
Valor
del Mercado
Precio
de Venta
$215.46
$89.46
$198.56
$164.84
$96.97
$200
$175
$150
$125
$100
$75
$50
$25
$0
07

ThePremierWholesalerofDistressedProperties
TwoNE40thStreet
Suite204
Miami,FL33137
305.438.1259

Raul sanchez de varona and his team at TSG

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