Nd oil boom_-_housing-55_a-_don

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educational in nature only. Any financial information presented here is for
example purposes only.
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The presenter is not an attorney, tax expert, or investment advisor. If you
have any legal or tax questions about this information you should consult
an attorney, tax expert, or your investment advisor.
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obtained from reliable sources but there is no guarantee as to its accuracy
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advised to do your own due diligence and seek appropriate council. There
are no guarantees of returns expressed or implied.

Presenting . . .
The Biggest Housing Shortage in the U.S.
Creates Huge Opportunity for Investors.

We are going to show you how
you can position yourself for
Financial Gain and Wealth
Building in the fastest growing
area in the U.S.
Real Estate
A lot of wealth has been created in real
estate by those that put themselves in
the path of high growth early on in a
market with explosive potential.

Williston is 20 miles from Montana and 50 miles from Canada.

Many jobs cannot be filled do to a shortage of workers.
Bureau of Labor Statistics: North Dakota is #1 with the lowest
unemployment in the country . . . 2.6% as of Dec. 2013 compared
to U.S. unemployment of 6.7%.
Help-wanted signs are everywhere!

SHORT TERM FIX – Modular
Housing, Mobile Homes, Campers,
and Man Camps.
There are more jobs than there are homes
in the rapidly expanding Bakken region.

A temporary solution to a huge problem
WILLISTON, N.D. (AP) — Officials in a northwest
North Dakota county have extended a
moratorium on "man camps" in the area. The
Williams County Commission voted 3-2 on
Friday to extend the moratorium indefinitely on
new applications for temporary housing.
ND county extends ban of 'man camps'
March 03, 2012
The Williams County Commission
extended the moratorium on man
camps in the county.
Feb 13, 2014
Man camp moratorium extended

North Dakota wants you:
Seeks to fill 20,000 jobs
Thanks to the oil boom, North Dakota has thousands of jobs to fill.
NEW YORK (CNNMoney) by Blake Ellis March 18, 2014
Looking for a job? North Dakota wants you.
In a new recruiting campaign to be rolled out in May, the North Dakota Economic
Development Foundation is aiming to fill more than 20,000 jobs -- ranging from truck drivers
and oilfield workers to receptionists and food servers.
North Dakota's huge oil boom has spurred thousands of job seekers to flock to the state for
years now. In some cities, the population has quadrupled.
Yet, the growth continues and companies are still so desperate for workers that the state is
teaming up with oil giant Hess Corp. (HES, Fortune 500) to launch an $800,000 campaign to
attract new talent.
"It is being developed to target people in states with chronic unemployment, and people in
industries that are high-demand in North Dakota, including: engineering, healthcare, energy,
skilled trades, transportation and information technology," the foundation said in a statement.
The push will include a website, marketing efforts and recruiting events.
The state is also trying to convince potential employees that North Dakota is not only a good
place to get a job, but a great place to live, dubbing it the "Find the Good Life in North Dakota"
campaign.

“Federal Housing Secretary Shaun Donovan is visiting
Williston today to get a firsthand look at western North
Dakota's housing shortage.”
“Gov. John Hoeven, Senator Kent Conrad and Representative
Earl Pomeroy are accompanying Donovan on his tour late
Monday. Conrad said most of the new housing is going to
have to come from private developers.”
By The Associated Press Aug 23, 2010
Federal & State Officials
Assess Housing Shortage

Largest Home
Shortage in the U.S.
The highest migration in the U.S. has caused an unprecedented
massive shortage of housing in this area of North Dakota. Many
workers and their families have nowhere to live!
Investors have the opportunity
to help provide housing and
profit handsomely for doing it.People are living in Wal-Mart Parking Lots.
Hotels have no vacancies,
apartment complexes are full,
and RV parks are popping up.
Most of the RV spots around here run $1,000 to $1,200.
That's $1,000 a month, just for a parking space!

A new black gold rush is under way, this time in North Dakota. The
potential payoff is huge -- up to 100 billion barrels of oil. That’s twice
the size of Alaska’s reserves. The Kiplinger Letter - March 17, 2008
The Energy Information Administration (EIA) estimates that there is
503 billion barrels of oil in the Bakken Basin.

They come here from all over the
country. Many cannot find work in
their home state, but here there is a
job for everyone here who is willing to
work with starting salaries topping
$100,000 per year in the oil fields.

Western North Dakota
and
Eastern Montana
Billions of Barrels of
Oil trapped in Bakken
Shale Rock for millions
of years can now be
freed up and brought
to the surface as a
result of recently
developed technology.

Bakken Shale Formation – Williston Basin
The Bakken Formation covers parts of
Montana, North Dakota, and Saskatchewan.
Bakken oil production started
over 50 years ago with a few
vertical wells until the 1980's
when horizontal technology
became available.
Production really took off in
2008 when horizontal wells
were combined with hydraulic
fracturing technology.
Williston, North Dakota
The Bakken is a shale oil play.
It is conventional light-sweet
crude oil trapped within shale
rock 10,000 feet below the
surface of the earth.

Core oil economic activity
Bakken oil producing area
Rough extent of the Bakken
Formation, a layer of oil-
bearing shale more than a
mile below the surface
Oil producing area outside
the Bakken Formation

Named after North Dakota farmer Henry Bakken, who owned
the land where the formation was initially discovered.
The formation is huge, spanning 200,000 square miles of subsurface in
Western North Dakota, Eastern Montana, and Southeastern Saskatchewan.
North Dakota was 2nd
to Texas in terms of oil
production in 2012.
To put that into perspective, the state of
Texas is 262,000 square miles in size.

How Bakken Oil is Produced
Bakken Shale Formation is
8,000 to 11,000 feet underground. ~ 2 miles.
5,280 ft. = 1 mile
Bakken is a layer cake,
with 5 oil-bearing
layers amongst 9 total
layers. The top 2 oily
layers, the Middle
Bakken and Three
Forks 1, currently
account for most of
the Bakken's oil
production.

Bakken Formation Zones
Upper Bakken (Shale)
Middle Bakken (Sandstone/Dolomite)
Lower Bakken (Shale)
Three Forks 1 (Sand)
Goldman Sachs sees production rising as producers tap into deeper oil-bearing shale formations, known as Three
Forks 2, 3, and 4. So far wells drilled into these deeper layers have been mostly exploratory, but there have been
some successes, especially from Three Forks 2. This bodes well for at least some deeper Bakken production.

“U.S. to Be Top Oil Producer by 2015 on Shale”
By Grant Smith Nov 12, 2013
The U.S. will overtake Russia, currently
the biggest oil producer, in 2015 as it
taps rock and shale layers in North
Dakota and Texas with the use of
horizontal drilling and hydraulic
fracturing.
The U.S. will surpass Russia and Saudi Arabia as the
world’s top oil producer by 2015, and be close to
energy self-sufficiency in the next two decades, amid
booming output from shale formations, the IEA
(International Energy Agency) said.
Crude prices will advance to $128 a barrel by 2035
with a 16 percent increase in consumption.
U.S. oil production will rise to 11.6 million barrels a day
in 2020, from 9.2 million in 2012, as it taps rock and
shale layers in North Dakota and Texas with the use
of horizontal drilling and hydraulic fracturing,
according to the IEA, a Paris-based adviser to 28
energy-consuming nations.
“Places like Williston, ND are the reason why.”

Who’s in the Bakken?
These companies have excellent locations in productive
oil fields and they will be producing oil profits for years.
Continental Resources is the largest
producer of oil and one of the region's
most active and experienced explorers.
7 Strong Companies in the Bakken Oil Play
Oil wildcatter Harold Hamm built Continental Resources into
the most powerful company in North Dakota’s Bakken Shale.

Who Else is in the Bakken?
 American Oil & Gas Inc.
 Anschutz
 Apache
 Arsenal Energy Inc.
 Concho
 Credo
 Denbury (Sold Bakken To Exxon)
 Earthstone Energy
 Enerplus
 EOG Resources
 1st NRG Corp (Non-op)
 Geo Resources
 Halcon Resources
 MDU Resources Group, Inc. (fidelity)
 Newfield
 Norstra Energy
 Northern Oil & Gas Inc.
 Oasis
 Occidental Petroleum (Oxy)
 PDC
 Peak North Dakota LLC (PND)
 Penn Virginia Corporation
 Petro-Hunt
 Petro-quest
 Prima Exploration
 Questar
 Red Arrow Energy LLC
 Resolute Energy
 Sandridge
 Samson
 Slawson Exploration
 SM Energy (St. Mary Land & Exploration)
 Statoil (Brigham)
 Stetson
 Triangle Petroleum
 US Energy
 Voyager
 WPX Energy
 XTO
 Yuma
Other active companies in the Bakken Shale play:

 503 Billion Barrels of Oil in the Bakken Basin.
“A resource base worth more than $5.3 trillion.”
 The Bakken is considered to be one of the largest
(possibly the largest) continuous hydrocarbon
accumulations in the world.
Capital is coming from all around the world, even Europe and Asia.

 Took off in 2008. ~ 150,000 Barrels of Oil Per Day
(BOPD) was being produced back then.
 By 2011, North Dakota was pumping 618,000 BOPD
from approximately 3,000 producing wells.
 Do the math: Oil production increased 412% in
about three to four years.
Fadel Gheit, an energy analyst at Oppenheimer, calls
Bakken's crude "one of the purest oil plays“ because it is
comprised of 90 percent oil and 10 percent natural gas.
Total # of
North Dakota
producing wells:
2005 – 219
2011 – 3,275
2013 – 6,824
Goldman Sachs expects the Bakken to peak at 2 million Barrels of
Oil per Day (BOPD) but not until 2023. To get there, they figure the
annual production growth will average 130,000-210,000 BOPD.

Analysts expect some 33,000
wells will be drilled over the
next 20 years, with more than
5,000 coming by 2015.
Total new wells 2005 to 2011 = 2,797

This is the beginning of a major growth cycle
for cities strategically located in the Bakken.
North Dakota towns are benefiting from Bakken shale oil.
Billions of $’s are flowing into them bringing rapid growth:
 Tens of thousands of newcomers
 Thousands of new jobs
 New tax revenues
 Soaring real-estate prices

Newly constructed housing rents quickly.
Housing is so scarce that one-bedroom
apartments rent for $2,394 per month.
As a result, many workers arrive with
their own housing, parking their
campers and RVs on empty lots.

Business Insider - Feb. 13, 2014
These 10 cities topped the list, with average monthly rents
for entry-level apartments:
1. Williston, ND ($2,394)
2. San Jose-Sunnyvale-Santa Clara, CA ($1,881)
3. San Francisco-Oakland-Fremont, CA ($1,776)
4. Dickinson, ND ($1,733)
5. Key West, FL ($1,640)
6. Boston-Cambridge-Quincy, MA-NH ($1,537)
7. New York-Northern New Jersey-Long Island, NY-NJ-PA ($1,504)
8. Los Angeles-Long Beach-Santa Ana, CA ($1,411)
9. Oxnard-Thousand Oaks-Ventura, CA ($1,387)
10. Santa Barbara-Santa Maria-Goleta, CA ($1,346)
A 700 ft2, 1 bedroom apartment in Williston
rents for an average of $2,394 a month!
The Associated Press

July 7, 2012
MANDAN, N.D. — “The economy is so good in North
Dakota, it’s almost like being in another country.
Although Friday’s lackluster national jobs report lackluster
may have intensified the already deep anxiety among voters
about the sluggish state of the economy, here in the nation’s
northern reaches, the concerns are exactly the opposite:
how to build roads and schools and houses fast enough to
keep up with an astounding population boom that has
sprung up alongside the country’s most roaring state-level
economy.”
“Good years for North Dakota farming, a new technology
sector and — most significant — a dramatic oil rush in the
state’s west and north have combined to produce an
economic explosion that is the envy of the rest of the
country — a 2.6% unemployment rate and rising
household incomes and state revenue.”

Bakken Shale is making millionaires out of land, mineral owners, and investors.
“How long will it last?” - The world’s leading oil industry firms are here to stay,
given estimates there’s at least a 30-year window of prosperity.
A Bakken oil well has an average life of 29 years and
generates $22 million in net profit over its lifetime.
Major Oil Companies are Investing Billions of $’s Into Bakken Shale.
Dr. Mark J. Perry is a full professor of
economics at the Flint campus of The
University of Michigan.
“Bakken oil boom in North Dakota might last for 100 years”,
according to the AEI (American Enterprise Institute) in 2013.

The Heart & Soul of Bakken Oil
Production is Williston, ND.
Welcome to Williston, N.D.
Home of an oil boom and the nation's highest rents.

Renowned for two things:
1. Legendary NBA Coach Phil Jackson grew up
there, where he played basketball for Williston
High School and led the team to two state titles.
2. It's ground zero for America's energy renaissance,
home of the Bakken Shale Formation.

The Oil Industry
Drives this Town.
This truck is filled with potassium carbonate for fracking.
Williston Mayor E. Ward
Koeser Displays Jar Containing
Bakken Crude Oil.Williston, ND
Williston has skipped the recession entirely.
As of Dec. 2013 unemployment was 0.6%.
U.S. was 6.7%.
"We actually have probably
between 2,000 and 3,000
job openings in Williston
right now," Koeser says.
San Francisco was built
during the Gold Rush, as
was Sacramento, CA.

Williston: Small Town to Large City
Williston is braced
to expand from
12,000 residents
to an estimated
90,000 in 15 years.
2010 Population = 14,700
2013 Population = 26,700
This almost doubling of the population in 3
years has caused serious housing problems.
“We’re growing as fast as
you can grow,” according to
Lee Lusht, president of the
Williston Chamber of
Commerce. “We’ve built
2,500 units of housing this
year.“ Nearly $350 million
in building permits was
issued in 2013 in Williston,
on everything from
businesses to apartment
buildings to single family
homes.

Oil Industry Pays High Wages
U.S. Census Bureau
Medium Household Income
Williston: $69,559
2012
“In Williston home prices have more than
tripled and rent there is currently the
highest in the nation. Even though many
employees are now raking in six-figure
salaries, they are essentially homeless,
living in their cars in parking lots, in other
peoples' basements, in RVs or even in
churches.” CNNMoney 3/18/14

Williston: Population Explosion

New
Housing
Permits
City of Williston Data
85% of these are
Apartment Units
and 15% are Single
Family Homes (11%
are manufactured
homes and only 4%
are stick built.

 It was a quiet community of 12,500, founded by German and Norwegian immigrant farmers.
 It had 7 Lutheran churches, a grain elevator, and aging brick buildings downtown.

 Now, Williston tops lists of the nation’s fastest- growing small cities.
 Its population has nearly doubled in the past three and a half years.
 More than 1,000 multi-family/apartment units are under construction.
 To alleviate congestion (traffic on Williston’s main thoroughfare has
tripled) a bypass is being built to route heavy trucks around the city.

New Restaurants
Opened in Williston

• McDonalds
• Subway
• Pizza Hut
• Domino’s Pizza
• Taco John’s
• Hardee’s
Williston Fast Food Eateries

A 200 acre retail lifestyle shopping district
featuring big box stores, and a 17 screen
movie theatre, as well as other retail,
restaurant and motel ventures.
Hwy 2 & 32nd Street, Williston, ND
The hardware giant officially signed
its contract for
the Sand Creek
Town Centre.
A large master planned community with retail shopping and single/multifamily homes.
Coming: a nail salon, women’s clothing boutique, large jewelry store,
high-end clothing store for teens and young adults, and a coffee shop or
deli with a drive up window. Many other retailers will be opening soon.
Stores are just beginning to open.

This all adds up to a
timely OPPORTUNITY!
For those that understand what is
going on in this area of the country.

How Can You Participate & Profit?
Windsong Country Estates is a premier
housing development of quality “stick
built” homes located just 6 minutes
north of downtown Williston; close
enough for shopping and schools, yet far
enough to enjoy a quiet, peaceful
neighborhood.
By purchasing a POSITIVE CASH
FLOWING asset in Williston, ND that
will put money in your pocket every
month and create wealth over time.

Wednesday, Feb. 26, 2014
Wealth Triple-Play: Stocks, Gold & Oil
Investors need both real assets like gold, oil, and real estate, as well
as financial assets like stocks. Each has its own purpose.
• Real assets protect the purchasing power of your money, while
• Solid stocks help create wealth.
Here we have a real estate asset (house) in a market
that is in a booming economy as a result of the
Bakken Shale Oil that is fueling the fastest growing
economy in the U.S.
This asset has the ability to preserve the purchasing
power of your money and create wealth while it is
generating a nice positive monthly cash flow for you.

Think Tank Demand Institute: Uneven
Housing Recovery to Linger 5 Years
Wednesday, 26 Feb 2014
“The U.S. housing sector is likely to experience an uneven recovery over the next
five years, with some local markets bouncing back faster than others, according to
a study released on Wednesday.
By 2018, the median price of single-family homes will be close to the peak
reached in 2006 before the national market cratered, according to the study from
the Demand Institute, a nonprofit think tank operated by The Conference Board
and Nielsen.
Among the 50 largest metropolitan areas where housing prices are expected to
appreciate between 2012 and 2018, the top five will see rises on average of 32
percent, while the bottom five will average gains of only 11 percent.”

Turnkey Investment
This is a turnkey investment with
property management and financing
in place for you.

Satellite View of Williston
Warren Buffett's Berkshire Hathaway
is rumored to be buying up land and
making a substantial investment in
the area around Epping.
Major Growth Area
Windsong Country Estates
Williston

Satellite View of Windsong Country Estates

This is how things looked in the Summer of 2013.
Highway 2 (main artery in and out of Williston)

Shop
Construction Office
The Development covers 162 acres.

Shop
Construction Office
Mike created an
operational “BASE”
for construction of
the 112 homes.
He can house 40
workers onsite + he
installed hookups
for 12 campers.
The Construction
Office is a 5,500 ft2
7 bedroom and 4
bathroom ranch
style house that
Mike built. It is a 2
level home with
2,000 ft2 on each
level + a 1,500 ft2
garage.
Mike and Project Managers stay here.
Workers stay here.
Mike Dolbec lives onsite at the Development.
The Shop is 40’ x
80’ and has living
quarters, showers,
washer & dryer,
bathrooms +++.
When the Development is completed everything here will be gone except the Construction Office.
Temporary housing for workers:
Campers, Job Trailers, etc.

The Windsong Development – Ready to Build 112 Homes
This is how things look now. All the infrastructure is in place.
162 acres

The Developer / Builder
The attention to detail and quality of construction sets
WCE apart from any other home builder in the area.
Mike Dolbec
Windsong Country Estates LLC
 Windsong Country Estates LLC (WCE) partners have vast global construction experience.
 Mike is the Business and Operations Manager of the WCE partnership.
 He developed and built thousands of multi and single family housing projects in the U.S. and Internationally.
 He developed and built many commercial projects in the Northeast and Northwest parts of the U.S.
 He has 28 years of experience in manufacturing management and process development domestically
and internationally with a focus on ISO 9000 manufacturing certification and Six Sigma accreditation.
 His focus and passion is in developing, implementing, and managing processes that streamline
construction and makes all stages of building a home efficient and on time.
 WCE’s Construction Project Management and General Contractor team have been building homes in the
New England, Carolinas and Northwest part of the U.S. for decades.
 WCE’s on site construction team has built thousands of homes over the past 22 years and are part of the
“Finnish Construction Trade Group”.
Exceptional Talent in all aspects of New Housing Construction

Finnish Construction Trade Group
 This is a close knit group of workers whose family roots go back to Finland.
 There are many brethren/direct family members that work together on
large scale projects like WCE.
 This family group has done the construction work on tens of thousands of
single family homes and many commercial projects throughout the U.S.
 This group of highly skilled craftsman all work under the same umbrella for
each stage of construction, which ensures efficient high quality work and
loyalty, as well as a commitment to finishing the WCE homes on time and
within budget.
Mike has an EXCLUSIVE with them for the state of
North Dakota for any construction project.

Mike’s Home
Bismarck North Dakota
Mike lives here with his wife and 3 children.
He built this house.

Windsong Country Estates currently may be the only stick
built rural housing development under way in Williams
County.
Quality Stick Built Homes
Stick Built Homes
Modular Homes

Plat Map of
Subdivision
Lots for 112 Homes
162 acres

3 Models
1. Buchanan (Ranch) 2896 ft2 Living Area on 2 Levels + 896 ft2 Garage
2. Jewel (Split Foyer) 2610 ft2 Living Area on 2 Levels + 896 ft2 Garage
3. Johnson (2 Story) 2880 ft2 Living Area on 3 levels + 896 ft2 Garage
Main Floor, Basement, and 3 Car Garage
Main Floor, 2nd Floor, Basement, and 3 Car Garage
6 Bedrooms + 3 Baths
Price = $438,952
Main Floor, Basement, and 3 Car Garage
Price = $422,428
Price = $438,553
Note: The developer chooses the elevation and the home
color to make the subdivision look as good as possible.

EXTERIOR:
 2x6 Exterior Construction Living Area
 Insulation R21 Walls R49 Ceilings
 Fiberglass Front Door
 30 year Architectural Roofing
 Low-E Argon Filled Vinyl Windows Grids in Front
 Seamless Gutters with Down Spouts
 20’ Concrete Apron in front of Garage
INTERIOR:
 Stainless Steel Appliances with Refrigerator
 Vaulted Ceilings In Living Room & Kitchen
 Self Cleaning Smooth Top Range & Dishwasher
 Built in Microwave Hood fan
 Stainless Steel Kitchen Sink
 Tile Backsplash in Kitchen
 Laminate Counter Tops
 Walk in Pantry with 5 Shelves (per plan)
 Nickel / Oil Rubbed Bronze Door Knobs
 Nickel / Oil Rubbed Bronze Lighting Fixtures
 Brushed Nickel Plumbing Fixtures
 Ceiling fan in Living Room
 Upper Cabinets with Crown Molding
 Laminate Kitchen and Dining Flooring
 6 # Carpet Pad
 Tub/Shower Combo
 Elongated Toilets (all baths)
 Garage Door Openers
 Insulated Overhead Garage Door
 Built in Wood Stack Shelving in all Closets
 Full Wood Wrap Windows & Doors in Living Area
 White Painted Woodwork with Accented Wall Color
 Central Air Conditioning and Forced Air High Efficient Heating
Standard Features in Each Home
Quality homes with all the features
you would expect in them.

Investor Configured Quality Homes
3 Models include:
 6 Bedroom 3 or 4 Bath Home
 3 Car Garage
 3 Car Extra Parking Pad (Gravel 36’ x 24‘)
 Central Air Conditioning and Forced Air High Efficient Heating
 Back Patio Cement (10’x12’) or Synthetic Deck (10’x12’) on Jewel
 Oversized Infiltrator type Septic System with Grinder Pump
 ICF Concrete Forms, Added Insulation in Lower level
 Vinyl Siding (.44 thick) with 50 Year Color Warranty
 Washer and Dryer
 Grass Seeded on Excavated Areas
 Membership to Williams Rural Water District
 4 Years worth of Membership Dues Paid to Windsong Country
Estates HOA for Road Snow Removal and Road Maintenance
Upgraded Extras for Investor Home:
 Separate Garage Entry Steps to Basement
(Garage expands from 24' deep to 28' deep)
 Rear or Side entry door out of Garage with Cement Pad
 Separate Electrical Plug for 3 Vehicles
 Wet Bar, full size Refrigerator and Microwave in Basement
Time to Build Home: 90 Days

Buchanan
 Main Floor
 Full 8’ Basement
 3 Car Garage
 6 Bedrooms
 3 Baths
Price: $ 438,952
Size: 2896 ft2 + 896 ft2 Garage
Ranch Design
with 2 Levels
1 Acre Lot

Buchanan: Basement
With steps from the garage + wet bar

Cash Flow Analysis - Buchanan
Buchanan
Purchase Price $438,952 Comments
Down Payment 65,843 15%
Finance Amount 373,109 85% LTV
Closing Costs* 3% - 2% 4,390 Less 2% for using preferred lender
Rental Income* (Monthly) 5,000 Estimated rent range: $5K to $6K
Mortgage Payment 2,089 5.375% @ 30 Years - 5.48% APR
Property Management Fee 350 7%
Property Taxes* 310
PMI* 212 .68% Factor
Insurance* 75
Maintenance* 28
Vacancy Allowance 250 Assumed to be 5%
Monthly Positive Cash Flow 1,686
1 Annual Positive Cash Flow 20,232
Annual Debt Service 25,072
Less: Interest 19,929
2 Principal Reduction (Annual) 5,142
Net Operating Income 45,300
Less: Total Depreciation 14,366
Total Taxable Income 11,005
Tax Bracket 33% Assumed to be 33%
3 Total Tax Paid (Annual) 3,632
Appreciation* 4%
4 Appreciation Amount 17,558
* Estimated

Return On Investment (ROI) Analysis - Buchanan
Buchanan
Rates of Return Analysis
Return On Investment (ROI) with Appreciation 56%
Cash Flow Before Taxes + Principle Reduction - Tax Paid + Appreciation 39,300
Cash Invested 70,233
Return On Investment (ROI) without Appreciation 31%
Cash Flow Before Taxes + Principle Reduction - Tax Paid 21,742
Cash on Cash ROI 29%
Cap Rate 10%
Note that the resale value of the Buchanan Ranch model
will usually run 3 to 5% higher than the Jewel model.
Disclaimer: There were a number of assumptions made in this ROI Analysis and the previous Cash Flow
Analysis. These numbers were believed to be accurate at the time they were calculated based on the
assumptions made but are not guaranteed. Market factors can change, such as interest rates, rents, and
appreciation causing these rates of return to vary from what is shown here. They could be higher or lower.

Jewel
 Main Floor
 Basement
 3 Car Garage
 6 Bedrooms
 3 Baths
Split Foyer Design
with 2 Levels
1 Acre Lot
Price: $ 422,428

Jewel: Basement

Cash Flow Analysis - Jewel
Jewel
Property Taxes* 310
Insurance* 75
Maintenance* 28
Appreciation* 4%
* Estimated

Return On Investment (ROI) Analysis - Jewel
Jewel
Cash Flow Before Taxes + Principle Reduction + Tax Paid + Appreciation 39,482
Cash Flow Before Taxes + Principle Reduction + Tax Paid 22,584
Cap Rate 11%

Johnson
 Main Floor
 2nd Floor
 Basement
 3 Car Garage
 6 Bedrooms
 4 Baths
2 Story Design
with 3 Levels
1 Acre Lot
Price: $ 438,553

Johnson: Basement

Cash Flow Analysis - Johnson
Johnson
Property Taxes* 310
Insurance* 75
Maintenance* 28
Appreciation* 4%
* Estimated

Return On Investment (ROI) Analysis - Johnson
Johnson
Cash Flow Before Taxes + Principle Reduction + Tax Paid + Appreciation 39,844
Cash Flow Before Taxes + Principle Reduction + Tax Paid 22,302
Cap Rate 10%
Note that the resale value of the Johnson 2 Story model
will usually run 3 to 5% higher than the Jewel model.

Optional 3 Car Garage
Size: 1,008 ft2 (28’ x 36’) Price: $59,000

You can use Your
Self Directed IRA
and Greatly
Increase Your
Retirement
Funds.

Some financial planners recommend withdrawing 5% of your
retirement portfolio each month. This way a retiree is less
likely to outlive their income. For example:
$400K in an IRA x.05% = $20K/year or $1,667/month
Why not buy 2 Windsong Country Estates (WCE) homes at
$450K each with a portion of your SD-IRA. For example:
Based on a monthly gross rent of $5K minus taxes, debt
service, insurance, and property management fees you end
up with $2,300 net monthly passive income per property.
That’s $4,600 net monthly income with 2 WCE homes. That
sounds a lot better than $1,667 monthly!
But Wait!

2. If you have $400K in your SD-IRA, you can buy 2 WCE homes utilizing a Non-
Recourse loan to your SD-IRA. Use the monthly net cash flow to accelerate
and pay off the Non-Recourse Loans of $270K in slightly over 7 years. When
it’s time to retire at age 59.5 or older, the $450K WCE SD-IRA homes are fully
paid for!
Using the $5K monthly rent in this example, you can withdrawal about $9K of
monthly income for retirement! $4,600 x 2 = $9.2K
Current value of 2 WCE homes is $900K ($450Kx2). Assuming a 4%
appreciation rate, in 10 years this transaction would add $1.3 million
to your SD-IRA plus $9K/month Positive Cash Flow!
A number of assumptions have been made in this example. Results may vary from what is presented.
All figures are approximates. Consult a CPA or tax advisor regarding your particular circumstances.
Monthly net cash flow = $2,300
1. One $450K WCE home with a 40% down payment from your
SD-IRA with a 60% Non-Recourse Loan = $180K + $5k Closing Costs = $185K.

Why Not Use a Lease-Option?
This market is perfect for using a Lease Option strategy.
Why?
1. Because there are a lot of workers making over $100K
annually who just moved into the area and can’t meet
a bank’s requirement for a loan to purchase a home.
2. But they can easily put down $10K to $15K on a Lease-
Option to purchase your Windsong Country Estates home.
3. You provide them a way to purchase a home when they
have no other way because the banks won’t help them.
4. A Lease-Option strategy significantly increases your rate
of return on the money you invest to purchase a home.
5. A Lease-Option Tenant/Buyer (TB) will take better care of
your home because they view it as their home.
TB

1. Home Model: Jewell
Purchase Price = $434,725
2. After closing you market the house
"For Sale" to a Lease-Option Buyer
(Tenant/Buyer) who signs a 1 or 2
year lease with an option to purchase agreement.
3. You sell the home at the end of the option
period to the TB for the current home price plus
appreciation of, lets say, 5% per year + $6,000 per
year (see #5), which equals:
 at the end of Year 1: $462,461 (sales price to TB)
 at the end of Year 2: $491,284 (Sales price to TB)
4. Option Consideration:
 $10,000 to $15,000
 The TB makes the Option Payment to you
and signs a Lease-Option Agreement. The Option
Payment is non-refundable and might qualify to be
Tax Deferred (check with your tax advisor).
How Does a Lease-Option Work?
Lease-Option Strategy Example
TB
You
Locked in Profit

5. TB makes a $6,000 monthly lease payment
and has the right to sublet. If the payment
is made by the 5th of the month, $500 for
that month will be credited towards the final
sales price of the home in #3. Note that in #3
we added $6,000 ($500/month x 12 months)
to the sales price of the home to the TB to
cover this amount and so it is a “wash”.
6. It is stipulated that all repairs up to $500 are
the responsibly of the TB.
7. Under this Lease-Option Agreement example
you would receive approximately $22,000 to
$27,000 in additional cash flow the first year.
8. A Lease-Option strategy significantly
increases the rate of return on your money.
Lease-Option Strategy Example - Continued
Note: This is only an example for which a number of assumptions
have been made. The results may vary and are not guaranteed.

1. Most TB’s have credit issues and a Lease-Option
Agreement gives them a chance to repair their
credit while they are executing a plan to purchase
a home.
2. In many cases it gives the TB time to get
established in the area in their new job.
3. It gives the TB time to save up a down payment.
4. TB gets instant occupancy and doesn’t have to
wait 30 days for a loan to close. They just
exercise the option and buy the home. They
already live there.
5. TB knows what the purchase price will be at the
end of the option period.
6. TB will realize any appreciation over the
stipulated purchase price.
Why would a Tenant Want a Lease Option?

What are the Steps to Purchase a Home(s)?
1. Complete Reservation Form: $6K fully refundable deposit placed in an escrow account and is
refundable up until you accept the home appraisal report.
2. Sign Purchase/Construction documents.
3. Contact lender: Apply for construction and/or long term loan. Lender will order an
appraisal (note: using one of the approved lenders will result in Windsong Country Estates
contributing 2% of the purchase price towards closing costs).
4. Contractor (Windsong Country Estates) provides all the documents required for the loan.
5. Review/accept appraisal value: Deposit amount is released and applied to price of home.
6. Construction begins: County Building Inspectors periodically review/approve construction.
7. Progress payments for construction work are approved by you and made to the Contractor.
8. Property Manager: Selected by you or you can use one that we recommend. Property Manager is
responsible for finding/screening a tenant for your home.
9. Construction of your home is completed and final building inspection made. Windsong Country
Estates provides you with a Certificate of Occupancy issued by the City of Williston.
10. Escrow closes.
11. You take possession of your home.
12. A lease is signed. Your tenant moves in.

Do You Have Any Questions?
Contact:
Don Loyd
503-707-9195
don@bakkenteam.com
Need More Information?
Interested in Purchasing a
Windsong Country Estates Home

Nd oil boom_-_housing-55_a-_don

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