Special Real Estate Equity Participation Program

The Opportunity

• The well publicized slowdown in the US residential property market is now coming to a close in some areas. In the stronger residential markets there are now clear signs of recovery.
• Baby boomers are buying retirement and second homes in the warmer states notably Florida, Arizona, Nevada and the Carolinas.
• In Florida, the recovery is projected to gather force in the Gulf Coast markets of Sarasota, Manatee and Charlotte counties.

Benefits for investors:

• Projected Return to investors in excess of 15% per annum
• Opportunity to purchase executive residential property at tremendous discounts
• Capital is backed by real estate purchased at super low price to reduce risk

Program Strategy

The program will focus on acquiring residential property throughout the USA including Florida and other markets with strong growth potential. The properties will include raw land, second home and principal residences. Properties under construction will also be targeted, particularly in locations that are projected to have good capital appreciation.

Equity Participation Structure

Investors will receive a preferred interest return of 9% annually on all funds loaned to acquire the real estate plus a 25% equity interest in all real estate acquired.

Participation Term
On a case by case basis, but generally not less than $500,000.

Amount
3 to 5 Years

The Principals

Principal #1 is a CPA and Attorney with extensive experience and contacts in Florida properties. Principal #2 is the owner of a Mortgage company who specializes in investment property and project syndication.

The buying opportunities

• Investors holding inventory with high debt levels willing to sell at low prices to defray future holding costs.
• Homebuilders willing to sell in bulk, to maintain cash flow and workforce retention pending the market recovery.
• Developers willing to sell low to achieve targets for finance arrangements with Banks.
• Homeowners with high loan payments relative to income facing foreclosure.
• Banks with foreclosed inventory willing to reduce their liabilities.

Objectives

The objective is to achieve an overall pre-tax return to investors in excess of 15% per annum during a five year period or less. The return will be derived through capital appreciation and rental income from varied portfolio of residential properties.

Strategy

Properties acquired will be actively managed to maximize rental income and be cost effectively maintained until it is considered time to sell to maximize the return on equity invested. Proceeds of sale will be reinvested in new projects until the project managers determine the optimum time to sell.

Summary

The program will be able to take advantage of relatively cheap buying opportunities in the current market and position itself to build on sustained medium term price growth. By investing at this point in the cycle, Investors will be able to benefit from this double advantage.

Please contact
Paul Liang at 800-250-7595
or email him at paul@fortunegroup.us for additional information.