Equity Investment Offering January 2009
<ul><li>Certain statements contained in this presentation may constitute “forward-looking statements”. All statements, oth...
<ul><li>Executive Summary   4 </li></ul><ul><li>Key Management  __________________________________________________________...
Executive Summary: Part 1 of 4 <ul><li>Introduction </li></ul><ul><li>Global Estate Investment LP (GEILP) proposes the pur...
<ul><li>Merits of purchasing properties in Phoenix </li></ul><ul><li>Real estate purchases in bulk: </li></ul><ul><ul><li>...
<ul><li>Transaction Details </li></ul><ul><ul><li>GEILP </li></ul></ul><ul><ul><ul><li>$25,000,000 purchase </li></ul></ul...
<ul><li>assumes $20,000,000 in mortgage debt </li></ul><ul><li>operates all aspects of the limited partnership </li></ul><...
<ul><li>Scott Seguin, CEO </li></ul><ul><li>Mr. Seguin is currently the President and CEO of Core Materials Inc.  Since 19...
Phoenix – Metro Area
<ul><li>Buying Criteria: </li></ul><ul><ul><li>Locations: </li></ul></ul><ul><ul><ul><li>Phoenix </li></ul></ul></ul><ul><...
<ul><li>Phoenix is a desirable location; it’s beautiful and, most importantly, its cost of living is very reasonable.  Thi...
<ul><li>Assumptions </li></ul><ul><ul><li>Total Purchases: $25,000,000 </li></ul></ul><ul><ul><li>Average unit list price:...
<ul><ul><li>Projected housing price cycle in Phoenix Metro area, based on a average residential single family home with a ...
Historical data- Part 1 of 5 West Valley Maricopa County House Sales <ul><ul><li>House sales continue to stay strong in We...
Historical data- Part 2 of 5 East Valley Maricopa County House Sales <ul><ul><li>House sales continue to stay strong in Ea...
Historical data- Part 3 of 5 West Valley Maricopa County Leasing <ul><ul><li>The number of properties leased out in West V...
Historical data- Part 4 of 5 East Valley Maricopa County Leasing <ul><ul><li>The number of properties leased out in East V...
<ul><ul><ul><li>* Stats from the U.S. Census Bureau and www.phoenix.gov </li></ul></ul></ul>Historical data- Part 5 of 5 P...
Risk Assessment <ul><ul><li>Phoenix housing market </li></ul></ul><ul><ul><ul><li>When will the market begin the long-term...
<ul><li>Scott Seguin </li></ul><ul><ul><li>(403) 510-2461 </li></ul></ul><ul><ul><li>[email_address] </li></ul></ul><ul><l...
<ul><ul><li>Income Statement Projections </li></ul></ul><ul><ul><li>Cash Flow Projections </li></ul></ul>Appendix Listing
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Phoenix Pp Rev7

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Phoenix Pp Rev7

  1. 1. Equity Investment Offering January 2009
  2. 2. <ul><li>Certain statements contained in this presentation may constitute “forward-looking statements”. All statements, other than statements of historical fact, in this presentation that address activities, events or developments that Global Estate Investment Limited Partnership (“GEILP” or the “LP”) or a third party expects or anticipates will or may occur in the future, including the LP’s future growth, results of operations, performance and business prospects and opportunities, and the assumptions underlying any of the foregoing, are forward looking statements. These forward-looking statements reflect the LP’s current beliefs and are based on information currently available to the LP and on assumptions the LP believes are reasonable. Actual results and developments may differ materially from results and developments discussed in the forward looking statements as they are subject to a number of significant risks and uncertainties. Certain risks and uncertainties are beyond the LP’s control. Consequently, all of the forward-looking statements are qualified by these cautionary statements, and there can be no assurances that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effect on, the LP. These forward-looking statements are made as of the current date and the LP assumes no obligation to update or revise them to reflect subsequent information, events or circumstances unless otherwise required by applicable securities legislation. </li></ul><ul><li>This presentation may also contain financial measures that are used by the LP from time to time but that do not have any standardized meaning prescribed by Canadian or US generally accepted accounting principles (“GAAP”). Therefore, these financial measures may not be comparable to similar measures presented by other issuers. Investors are cautioned that these measures should not be construed as an alternative to net earnings or to cash flow from operating, investing, and financing activities determined in accordance with Canadian GAAP or US GAAP as indicators of the LP’s performance. These measures are provided to assist investors in determining the LP’s ability to generate earnings and cash flow from operations and to provide additional information on how these cash resources are used. These financial measures are identified and defined as follows: EBITDA is defined as earnings before interest, taxes, depreciation and amortization. </li></ul>Disclaimer
  3. 3. <ul><li>Executive Summary 4 </li></ul><ul><li>Key Management ____________________________________________________________ 8 </li></ul><ul><li>Phoenix Metro Area Map 9 </li></ul><ul><li>Buying Criteria 10 </li></ul><ul><li>The City of Phoenix__ __________________________________________________________ _11 </li></ul><ul><li>Market Assessment 12 </li></ul><ul><li>Projected Housing Price Cycle 13 </li></ul><ul><li>Historical Data___________________ 14 </li></ul><ul><li>RRSP Information 19 </li></ul><ul><li>Risk Assessment 20 </li></ul><ul><li>Appendix </li></ul>Table of Contents
  4. 4. Executive Summary: Part 1 of 4 <ul><li>Introduction </li></ul><ul><li>Global Estate Investment LP (GEILP) proposes the purchase of up to $25,000,000 of REO and short sale properties in the Phoenix Metro Area of Arizona. </li></ul><ul><li>GEILP will raise $5,500,000 US as the cash component for the real estate purchases. </li></ul><ul><li>Our team includes strategic personal within financial institutions, mortgage companies, realtor agencies, property management companies, and renovating organizations. </li></ul><ul><li>GEILP is proposing on offering lease back options to current home owners, or using our experienced property management team to rent out the properties. </li></ul><ul><li>A positive cash flow will be maintained for a period of 3 to 5 years - when housing prices are speculated to return to peak levels. At the end of this period the properties will be listed and sold. </li></ul>
  5. 5. <ul><li>Merits of purchasing properties in Phoenix </li></ul><ul><li>Real estate purchases in bulk: </li></ul><ul><ul><li>Buying several homes as a group will help an individual diversify and reduce the risks associated with owning only one house. </li></ul></ul><ul><ul><li>Economies of scale will be achieve with discounts on property management, realtor fees, landscape maintenance, etc. </li></ul></ul><ul><li>Phoenix market: </li></ul><ul><ul><li>Sustainable economy </li></ul></ul><ul><ul><ul><li>The Phoenix metro area continues to grow in population </li></ul></ul></ul><ul><ul><ul><li>Job growth continues to be strong in Arizona </li></ul></ul></ul><ul><ul><ul><li>Desirable retirement location for baby boomers in Canada and US </li></ul></ul></ul><ul><li>Purchasing properties in mid 2009: </li></ul><ul><ul><li>There is a large volume of foreclosure properties in GEILP’s target communities. </li></ul></ul><ul><ul><li>Discounts of up to 30% off current market values. </li></ul></ul><ul><ul><li>History of the Arizona market shows a peak in housing prices every 7-8 years, which would indicate the next peak to be in 2015-2016. </li></ul></ul>Executive Summary: Part 2 of 4
  6. 6. <ul><li>Transaction Details </li></ul><ul><ul><li>GEILP </li></ul></ul><ul><ul><ul><li>$25,000,000 purchase </li></ul></ul></ul><ul><ul><ul><li>$20,000,000 debt </li></ul></ul></ul><ul><ul><ul><li>$5,000,000 cash </li></ul></ul></ul><ul><li>Projected Revenue and Returns </li></ul><ul><li>Based on sale of properties after Year 4, the annual return for unit holders will be 40%.          </li></ul>Executive Summary: Part 3 of 4 <ul><ul><li>* Details in Appendix A </li></ul></ul>
  7. 7. <ul><li>assumes $20,000,000 in mortgage debt </li></ul><ul><li>operates all aspects of the limited partnership </li></ul><ul><li>provides legal and tax requirements for the limited partners        </li></ul>Executive Summary: Part 4 of 4 <ul><li>contributes $5,500,000 in cash   </li></ul><ul><li>receives 65% of all income after principal payback </li></ul>General Partner Limited Partners GEILP has retained the services of McLeod & Co LLP in Calgary, Alberta; and YCS&T Services LLC/Young Conaway Stargatt & Taylor, LLP in Wilminton, Delaware for legal services and advice. Additionally, GEILP has retained the services of Deloitte in Calgary, Alberta for tax consulting, auditing and tax return services.
  8. 8. <ul><li>Scott Seguin, CEO </li></ul><ul><li>Mr. Seguin is currently the President and CEO of Core Materials Inc. Since 1997, Mr.Seguin has owned and operated several successful businesses; including sporting goods retail, beverage distribution, and banking services. Mr. Seguin has a Bachelors degree in Mechanical Engineering from the University of Alberta and a Masters Degree in Business from the University of Calgary. </li></ul><ul><li>Chris Skidmore, COO </li></ul><ul><li>Mr. Skidmore has had a professional career in the field of real estate acquisition, development and renovation, which has led to numerous local and US raw land development options and inner-city projects . Chris lived in Phoenix from 1999 to 2005 and has developed an extensive network in the banking and real estate industries. Chris is currently focusing on the development of GEILP and is working closely with our current partners in Phoenix. </li></ul><ul><li>Victor Millington, VP finance </li></ul><ul><li>Mr. Millington has been a senior loan officer since 2001 for both Mortgage Banker and Mortgage Broker; and during this time has worked with over 185 different lenders. Since 2001, Victor has been a real estate agent in Maricopa County, Arizona with over 100 transactions to his credit. He has a Bachelor of Science degree from Michigan State University. Victor is also FHA and Ameridream Certified. </li></ul>Key Management
  9. 9. Phoenix – Metro Area
  10. 10. <ul><li>Buying Criteria: </li></ul><ul><ul><li>Locations: </li></ul></ul><ul><ul><ul><li>Phoenix </li></ul></ul></ul><ul><ul><ul><li>Scottsdale </li></ul></ul></ul><ul><ul><ul><li>Mesa </li></ul></ul></ul><ul><ul><ul><li>Glendale </li></ul></ul></ul><ul><ul><ul><li>Peoria </li></ul></ul></ul><ul><ul><ul><li>Chandler </li></ul></ul></ul><ul><ul><ul><li>Gilbert </li></ul></ul></ul><ul><ul><ul><li>Anthem </li></ul></ul></ul><ul><ul><ul><li>Tempe </li></ul></ul></ul><ul><ul><li>3 bedroom minimum </li></ul></ul><ul><ul><li>1 ¾ bathroom minimum </li></ul></ul><ul><ul><li>1300 sq. ft. minimum </li></ul></ul><ul><ul><li>$1,000 maximum in initial renovations (paint, landscape, etc.) </li></ul></ul><ul><ul><li>$160,000 to $200,000 </li></ul></ul><ul><ul><li>Built after 1987, with aim to purchase homes built in 2000 or newer </li></ul></ul><ul><ul><li>Homes without HOA/community fees </li></ul></ul><ul><ul><li>NOTE: The criteria above is GEILP ’ s starting criteria and may change from time-to-time in order to accommodate for changes in the real estate market. </li></ul></ul>Buying Criteria
  11. 11. <ul><li>Phoenix is a desirable location; it’s beautiful and, most importantly, its cost of living is very reasonable. This explains why Phoenix is an affordable choice for young families, and also the reason why its location is an asset to companies looking to attract new workers. </li></ul><ul><li>Warm weather is certainly a factor in the Valley's popularity. The sun shines more than 80 percent of the time on an annual average. The area receives about 7 inches of precipitation yearly, and the average annual daytime temperature is about 82 °F / 28 °C . Phoenix's climate is excellent, especially for those whom are used to having to deal with snow, the cold, and grey skies . </li></ul><ul><li>An incredible variety of sports action can be found in the Valley. Professional sports teams include the NBA’s Phoenix Suns, the NFL’s Arizona Cardinals, the NHL’s Phoenix Coyotes, the MLB’s Arizona Diamondbacks, and the WNBA’s Phoenix Mercury. </li></ul><ul><li>Arts and cultural activities are abound in Phoenix, with more than 20 museums in the metro area as well as numerous performing arts groups. A sampling of the museums include the newly renovated and expanded Phoenix Art Museum, which holds more than 13,000 works of art . </li></ul>The City of Phoenix
  12. 12. <ul><li>Assumptions </li></ul><ul><ul><li>Total Purchases: $25,000,000 </li></ul></ul><ul><ul><li>Average unit list price: $115,000 </li></ul></ul><ul><ul><li>Discounted purchase price : $90,000 </li></ul></ul><ul><ul><li>Number of units: 180 </li></ul></ul><ul><ul><li>Average days before rented: 60 </li></ul></ul><ul><ul><li>Average rental rate per unit: $1,200 </li></ul></ul><ul><ul><li>Initial repair fee per unit: $2,500 </li></ul></ul><ul><ul><li>Monthly maintenance reserve per unit: $165 </li></ul></ul><ul><ul><li>Property management fee: 10% at the time of lease signing. </li></ul></ul><ul><ul><li>Average bank financing per house: $63,000 (70% LTV) </li></ul></ul><ul><ul><li>Average cash required per house: $27,000 </li></ul></ul>Market Assessment
  13. 13. <ul><ul><li>Projected housing price cycle in Phoenix Metro area, based on a average residential single family home with a current market value of $212,500. </li></ul></ul>Projected Housing Price Cycle
  14. 14. Historical data- Part 1 of 5 West Valley Maricopa County House Sales <ul><ul><li>House sales continue to stay strong in West Valley Maricopa County. The absorption of excess properties is continuing to decrease inventory. </li></ul></ul><ul><ul><ul><li>Note: Information supplied by the Multiple Listing Service. </li></ul></ul></ul>
  15. 15. Historical data- Part 2 of 5 East Valley Maricopa County House Sales <ul><ul><li>House sales continue to stay strong in East Valley Maricopa County. The absorption of excess properties is continuing to decrease inventory. </li></ul></ul><ul><ul><ul><li>Note: Information supplied by the Multiple Listing Service. </li></ul></ul></ul>
  16. 16. Historical data- Part 3 of 5 West Valley Maricopa County Leasing <ul><ul><li>The number of properties leased out in West Valley Maricopa County continues to increase as volume of rental property has constantly decreased over the past year. </li></ul></ul><ul><ul><ul><li>Note: Information supplied by the Multiple Listing Service. </li></ul></ul></ul>
  17. 17. Historical data- Part 4 of 5 East Valley Maricopa County Leasing <ul><ul><li>The number of properties leased out in East Valley Maricopa County continues to increase as volume of rental property has constantly decreased over the past year. </li></ul></ul><ul><ul><ul><li>Note: Information supplied by the Multiple Listing Service. </li></ul></ul></ul>
  18. 18. <ul><ul><ul><li>* Stats from the U.S. Census Bureau and www.phoenix.gov </li></ul></ul></ul>Historical data- Part 5 of 5 Population growth <ul><ul><li>Phoenix has seen substantial growth over the last decade and is also projected to see continued growth over the coming decade. </li></ul></ul><ul><ul><li>The 2005 population of Phoenix was estimated to be 1,512,597.* </li></ul></ul>
  19. 19. Risk Assessment <ul><ul><li>Phoenix housing market </li></ul></ul><ul><ul><ul><li>When will the market begin the long-term, upward trend? </li></ul></ul></ul><ul><ul><li>Foreclosure purchase price </li></ul></ul><ul><ul><ul><li>Are the purchase prices actually at the specified discount? </li></ul></ul></ul><ul><ul><li>Ability to rent and maintain a 95%+ occupancy rate </li></ul></ul><ul><ul><ul><li>Property management’s ability to rent-out acquired properties. </li></ul></ul></ul><ul><ul><li>Competition </li></ul></ul><ul><ul><ul><li>Large firms purchasing similar properties, creating competition for the rental and sales market. </li></ul></ul></ul>
  20. 20. <ul><li>Scott Seguin </li></ul><ul><ul><li>(403) 510-2461 </li></ul></ul><ul><ul><li>[email_address] </li></ul></ul><ul><li>Chris Skidmore </li></ul><ul><ul><li>(480) 789-1466 </li></ul></ul><ul><ul><li>[email_address] </li></ul></ul><ul><ul><li>11827 North 133 R d Way </li></ul></ul><ul><ul><li>Scottsdale, Arizona </li></ul></ul><ul><ul><li>85259 </li></ul></ul>Contact Information
  21. 21. <ul><ul><li>Income Statement Projections </li></ul></ul><ul><ul><li>Cash Flow Projections </li></ul></ul>Appendix Listing

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