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HANOVER COMPANIES GO ZONE REAL ESTATE INVESTING

Go Zone Presentation

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Get educated and empower your tax dollars! Don\'t give them away

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Page 1: Go Zone Presentation

HANOVER COMPANIESGO ZONE REAL ESTATE INVESTING

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Notice

Investment goals and tax liabilities differ for everyone. We make no representation as to an individual’s eligibility to receive GO Zone benefits and/or incentives. You must consult a tax professional to ensure your eligibility for GO Zone bonus tax deductions or other incentives. All information contained herein is deemed reliable but it is not guaranteed. The information is subject to errors, omissions, prior sale, changes and withdrawals without notice.

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AGENDA

Overview Of Hanover

GO Zone

Market

Presentation of Opportunity

Questions & Answers

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About Hanover

Our Members have over 40 years of experience as real estate investors, fund advisors, property managers and developers.

Our members have successfully converted over 11,000 multi-family residential apartments to condominium ownership.

Our Members have directed Operations for the Management of over 60,000 operating apartments in more than 250 multi family residential communities in 7 states.

We specialize in residential property acquisitions and sales in the Gulf Opportunity Zone [GO Zone], one of the hottest real estate markets in the U.S. today.

The largest direct seller of GO Zone real estate in the country.

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What Is The GULF OPPORTUNITY ZONE ACT OF 2005?

In 2005, The U.S. Congress passed a bill titled, "The Gulf Opportunity Zone Act." The purpose of The GO Zone Act is to help revitalize and stabilize regions of the U.S. that were affected by hurricanes Rita, Katrina, and Wilma.  As part of this effort, The GO Zone Act allows qualified real estate investors to take a 50% bonus depreciation incentive upon the purchase of qualified GO Zone property.

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Obama Extends Go Zone!

On December 17th 2010 President Obama signed the tax extension bill which extended GO Zone. “Tax Relief,

Unemployment Insurance Re-authorization, and Job Creation Act” Section 765.

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The Experts Are Hot OnThe Mississippi Go Zone

“Today, when it comes to

housing markets, the Biloxi-

Gulfport metro area is the jewel of the bayou.”

“one of the top 10 fastest

growing small metro areas”

On Biloxi/Gulfport

“Biggest home price increase

projected in 2014: Gulfport-Biloxi metro area”

Gulfport / Biloxi Ranked #1 Risk Adjusted Market by Moody’s.

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Why Is Gulfport –Biloxi Booming?

The Go Zone lost 65,000 homes and11,000 short-term

rental options in ONE DAY!

Most United States housing markets have a surplus of housing. In the Go Zone,

demand is expected to vastly exceed the supply for the next

5 to 7 years.

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Bloomberg Article

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GAMINGNew law enacted after Hurricane Katrina allows casinos to be LAND BASED and up to 800 feet from the mean high tide water mark

Gulfport-Biloxi is currently the No. 2 gaming center in the nation and its growing at record numbers.

More gaming visitors than Atlantic City, and is redefining itself a regional destination for travelers looking for multiple casino-resort offerings.

Two casino’s just passed site approval and are set start construction in 2011:

Can-Can Casino & Jimmy Buffet’s Margaritville on Biloxi’s Back Bay.

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CASINOSThese 11 Casinos Employ

over 17,000 People

• Beau Rivage Casino & Resort

•Hard Rock Hotel & Casino

•IP Casino Resort & Spa

•Boomtown Casino

•Island View

•Treasure Bay

• Palace Casino & Resort

• Hollywood Casino

• Silver Slipper

• Biloxi Grand

• Isle Of Capri

Beau Rivage Casino &Resort is an MGM Property.It is largest completed and opencasino in Biloxi. Twin sister andspitting image of Bellagio (Las Vegas),1,740 rooms95 Suites, and employsover 4,000 people.

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PORT OF THE FUTURE“This port [expansion] is an economic gold mine for all of South

Mississippi”~ Haley Barbour, Mississippi Governor

Mississippi Business Journal, July 20, 2009

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PORT FACTS• July 2009 Kicked off a $1.6 BILLION expansion that will transform the Port of Gulfport into one of the largest in the US.

• Will create 6,500 direct, 8,400 induced and 1,700 indirect jobs with a $10 billion annual payroll with an overall economic impact that extends into the tens of billions. 

• This economic driver is only poised to grow.  The Panama Canal is currently undergoing an ambitious project to greatly widen it.  The super-canal will be completed in 2014.

• Port leaders in Mississippi say the expansion of their port coupled with the increased in freight traffic through Panama’s new super-canal will create economic synergy on massive scale.

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Sun Herald Article

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Keesler Air force Base& Medical Center

Keesler currently employs 11,200 people, including nearly 7,600 military positions. In addition, the base's presence created more than 3,500 local and contract jobs.  As one of the Air Force's major training centers, on any given day more than 3,500 students train at Kessler in more than 460 courses in technical subjects such as communication-electronics, medical, personnel, airfield management, weather forecasting and air traffic control.

Keesler Medical Center, is the second largest Air Force medical center in the United States.

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Aerospace &Defense Industry

Aerospace and defense industry jobs abound and are continually expanding in the Gulfport market area.

While the national job market is struggling, the Gulfport market is already stabilizing and growing.

The area is now home to major aerospace players like Lockheed Martin, Pratt & Whitney, Northrop Grumman, Rolls Royce among others.

The aerospace infrastructure also includes federal and university funded research units, aerospace parks, military aviation bases, technology transfer offices and test ranges.

The numerous military bases in the area employ tens of thousands of people and produce good tenants who need rental housing.

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Mississippi Gulf Coast Aerospace Snap-shot

Major Aerospace Companies:

• BAE Systems• Lockheed Martin • Northrop Grumman• Pratt & Whitney• Rolls-Royce

Aerospace Research:

• Center of Higher Learning• Enterprise for Innovative Geospatial Solutions• Joint Airborne• Lidar Bathymetry Technical Center of Expertise• SSC Engineering and Science Directorate

Aerospace Parks:

• Aerospace Technology Park • Aviation Technology Park• Sunplex Light Industrial Park• General Aviation Industrial Park • Stennis International Airport• Mississippi Ammunition Plant Complex• Stennis Technology Park

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Sun Herald Article

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Gulfport – Biloxi Airport EXPANSION

o Gulfport-Biloxi is the Mississippi Gulf Coast’s Commercial Airport.      

o Post Katrina $51 million dollar airport expansion adding a total of 9 airlines.

o New FAA Federal Air Tower Opened September 2010.

o Million Air opening new Fixed Based Operation hanger April 2011.

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What’s The Best Reason To Buy Now?

Qualifying buyers have the option of using the Go Zone

bonus depreciation towards the last five years of filed taxes.

GO Zone incentives in Mississippi are available until the end of 2011 but demand

created by the tax benefits and the success of the Biloxi Market has left little supply of qualifying

properties.

The time to buy is NOW!

**PLEASE SEE YOUR ACCOUNTANT OR TAX ADVISOR REGARDING YOUR INDIVIDUAL TAX CONSIDERATIONS AND

QUALIFICATIONS.

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After purchasing your property, you can leaseit (buyers option) to Hanover as your corporatetenant for up to 24 full months.

During the lease term, the rent you receive foryour unit will exceed:

Your monthly principal and interest paymentsYour monthly homeowner association feesYour monthly real estate tax payments

Your corporate tenant also pays:

Utilities (electricity, gas, water and sewer)Maintenance and repairsAppliance replacement (if necessary)

HANOVER’S CORPORATE LEASING PROGRAM

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GO ZoneBonusDepreciationExample

Purchase Price $250,000

Land (Non Depreciable) 10%

Non Depreciable Amount $25,000

Total Basis for Depreciation $225,000

GO Zone BONUS Depreciation for first year $112,500

Buyers Assumed Tax Bracket 35%

Bonus Depreciation Benefit $35,375

Straight Line Basis for Depreciation $112,500

Straight Line Amount (1/27.5) $4,091

Buyers Assumed Tax Bracket 35%

Straight Line Depreciation Benefit $1,432

Total * Potential Depreciation in Year ONE $116,591

Total *Potential Depreciation Benefit in Year ONE $40,807

***All items shown on this page are for illustration purposes only. No amount is meant to be specific to any individual buyer and every buyer should consult their own accountant and tax advisor as to whether Go Zone bonus depreciation is appropriate for their individual needs and whether they (as buyers) are specifically qualified as defined within the current federal tax rules and regulations. This slide is for discussion purposes only and is not intended to represent any incentives or benefits to be received by an individualbuyer from the purchase of a Hanover property.***

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QualifyingGO Zone Buyer

ScenarioBuyer has AGI of 150,000 tax federal rate of 35% Buyer owes IRS $52,500

Buyer purchases $250K GO Zone Property from Hanover

Buyer gets a $116,591 write off in YEAR ONE

Buyer’s new AGI is $33,409, taxable liability is now 20%·        

Buyer now owes IRS $6,682

OVER $45,000 in tax dollars that the buyer gets to preserve and create long term wealth and cash flow

Remember, you’re going to write a check, either to the IRS or by purchasing GO Zone from Hanover with the potential of saving thousands!

*** This slide is for discussion purposes only and is not intended to represent any incentives or benefits from the purchase of a Hanover property.***

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Some Thingsto consider...

1. Did you do a ROTH Conversion in 2010? 2011?·       

2. This works for W2 and 1099’d*

3. How much have you paid in taxes the last 5 years? 

4. Using your 401k to loan yourself down payment        

5. Hanover has owner financing on select properties!

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Why Buy With Hanover In The Go Zone?

1. One of the Nation’s #1 emerging markets

2. Depreciation + Appreciation + Cash Flow + Timing

3. ALL Hanover’s Properties are located within the GO

Zone and are qualified for Tax Incentives.

4. You’re going to write a check, do you want to write it

to the IRS or would you like an appreciate asset?

5. Hanover’s Corporate Total Leasing Program

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The VillageThe Village is located in a upscale bedroom community, Ocean Springs, the demand for housing in this area is high.  The development is located right down the street from the new Ocean Springs High School which is set to open in 2011.  Ocean Springs has some of the top rated schools in the state.  The development is a couple miles off of highway 90 which is located to all the shopping corridors and employment centers [Northrup Grumman and Chevron].  These are stick build homes with finishes found in custom homes,  4 brick sided with finishing touches all around, crown molding, granite, custom ceilings.

Special Circumstances: GO Zone EligibleLocation: A+ City: Ocean SpringsState: MississippiType: Single Family HomesStories: 1Bedrooms: 3-4Bath: 2-3Home Size: 1500-1900 sq feet

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South BreezeSouth Breeze is located in a upscale bedroom community, Ocean Springs, the demand for this type housing in this area is high.  The development is a brand new with streets, water and sewer finished at the end of 2010.  We currently have 2 high end model style homes underway.  The development will feature all features of any upscale development.  The lots are set up with garages facing an alley way for a very clean neighborhood feel.  These are custom stick build homes with finishes found in custom homes,  4 brick sided with finishing touches all around, crown molding, granite, custom ceilings, walk in closets, etc.

 Property Name: South BreezeSpecial Circumstances: GO Zone EligibleLocation: A+ City: Ocean SpringsState: MississippiType: Single Family HomesStories: 1-2Bedrooms: 3-4Bath: 2-3Home Size: 1400-2200 sq feet

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Orleans placeOrleans Place is located in a upscale bedroom community, Ocean Springs, the demand for this type housing in this area is high.  This development is perfect for any investor looking for a great return on investment.   Located just off of Washington Avenue with a vast amount of employers, easy access to Interstate 10.  The development has all the features including, pool, grounds management and security on site, balconies, with a true New Orleans style feel.   The properties are stick build with close attention to all finishes, units include 2 car parking in front  Property Name: Orleans PlaceSpecial Circumstances: GO Zone EligibleLocation: A+ City: Ocean SpringsState: MississippiType: DuplexesStories: 2Bedrooms: 3Bath: 2Home Size: 1400 per side, 2800 total

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Adam’s Road

Adams Road is located in the one of the hottest towns in Gulfport – Biloxi Metro, D’iberville.  D’iberville is located just North of Biloxi off the I-110 bridge.  D’iberville has been going through an economic boom since 2005.  This particular development is located just around the bend from the new Promenade Shopping Center with all of the big box stores we have all come accustom to having.  2 new casino’s are approved slated to begin construction in D’iberville this year.  The units have a nice open floor plan with 2 beds, 2 baths, tile floors for easy maintenance.  Easy access to parks, shopping, employers and Interstate 10.     Property Name: Adam’s Road Special Circumstances: GO Zone EligibleLocation: A+City: D’ibervilleState: MississippiType: Four UnitStories: 2Bedrooms: 2Bath: 2Home Size: 1000 per door, 4,000 total

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Gulf havenGulf Haven is located in a upscale tucked away area of Gulfport, the possibility of finding rental housing in this area before was low but demand for it is high.  About an 8 min drive from the Interstate 10 and Hwy 49 Corridor.  We currently have high end model style homes underway.  The development is flanked by upscale horse and cattle ranch estates.  These are custom stick build homes with finishes found in custom homes,  4 brick sided with finishing touches all around, crown molding, granite, custom ceilings, walk in closets, etc.  Property Name: Gulf HavenSpecial Circumstances: GO Zone EligibleLocation: A+City: GulfportState: MississippiType: Single Family HomesStories: 1-2Bedrooms: 3-4Bath: 2-3Home Size: 1300-2200 sq feet

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Meadows of Gulfport

The Meadows is a  Family Community designed for convenience, comfort and safety.  Located off of Highway 49 close to all local attractions, schools, restaurants and fast growing employment centers.  Right across the street from Gulfport Sports Complex.  Located between Navy CB Base and Keesler Air Force Base.  Units include central air conditioning, heating and appliances with indoor, in unit laundry.   Property Name: Meadows of GulfportSpecial Circumstances: GO Zone EligibleLocation: A+City: GulfportState: MississippiType: DuplexStories: 2Bedrooms: 3Bath: 2Unit Size: 2400 per building [1200 per 3 bed, 2 bath individual living level] 

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May’s Place

May’s Place is located in a booming area of Gulfport with well known family neighborhoods surrounding the development.  Close to elementary and middle schools, a couple miles from Hwy 49 filled with new commercial development, restaurants and shopping.  About a 10 minute drive to fantastic Gulfport Outlet Shopping Center.  These are stick build homes with finishes found in custom homes,  4 brick sided with finishing touches all around, crown molding, granite, custom ceilings  Property Name: May’s PlaceSpecial Circumstances: GO Zone EligibleLocation: A+ locationCity: GulfportState: MississippiType: Single Family HomesStories: 1Bedrooms: 3-4Bath: 2-3Home Size: 1200-1900 sq feet 

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Mill Landing

Mill Landing is a gorgeous waterfront townhome development located on beautiful upscale Bayou View.  Each townhome comes with its own deeded boat slip.  These are custom crafted townhomes with finishes you would find in the multi million dollar homes surrounding the development.  2 car large garages, down stairs porch, upstairs balcony off the great room.  Elevator shaft included, either add the elevator or use the extra storage, great possibility for exit to baby boomer or snow birds.  Professionally designed and decorated.  Perfect for vacation rental or annual corporate tenant.  Property Name: Mill LandingSpecial Circumstances: GO Zone EligibleLocation: A+City: GulfportState: MississippiType: TownhomesStories: 3Bedrooms: 2Bath: 3Home Size: 1,400

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Old Town Gardens

Old Town Gardens is located heart of gorgeous Long Beach.. Old Town gives you the most for you value with a gorgeous pond right in the development for the pure joy of that relaxing down South living.  Just a short drive from Downtown Gulfport, Casinos and the Navy CB Base and Keesler Air Force Base, award winning schools and USM Gulf Coast Campus.  Old Town is close to the beach, fishing piers, boat launch an absolute renters paradise perfect for small to midsize families. The homes feature upgraded appliances, front porches, garages and fantastic finishes not found in homes, especially new construction at this price point.  Special Circumstances: GO Zone EligibleLocation: A+City: Long BeachState: MississippiType: Single Family HomesStories: 1Bedrooms: 3Bath: 2Home Size: 1100-1200 sq feet

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Sheildsboro

Sheildsboro is a charming new subdivision in upscale Bay St Louis.  The neighborhood is steps to the beach and has a family feel with sidewalks all around.  Located just down the street from Old Town, Bay St Louis with shopping and restaurants.  Family center, clubhouse and pool set to open early 2011.  Homes come with porches, 10 foot ceilings, wood floors, crown molding, stainless appliances, one even has an entire in law apartment that could be rented for extra income!   Property Name: SheildsboroSpecial Circumstances: GO Zone EligibleLocation: A+City: Bay St LouisState: MississippiType: Single Family HomesStories:1- 2Bedrooms: 3-5Bath: 3-4Home Size: 1,400-2,500 

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Carre Court

Carre Court Town homes are located blocks from the beautiful beach and boat launch at the mouth of the St Louis Bay.  The development includes a private pool, cabana and grilling patio.  You’ll love the quiet secluded area of Bay St Louis, just a couple blocks from Old Town as well with restaurants and shopping.  Amazing finishes throughout, 10 foot ceilings, crown molding, tile floors and highly energy efficient design.  Makes for a great portfolio of GO Zone properties.   Property Name: Carre Court Townhomes Special Circumstances: GO Zone EligibleLocation: A+City: Bay St LouisState: MississippiType: TownhomeStories: 2Bedrooms: 3Bath: 3Home Size: 1,500

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Oak Shores

Oak Shores is a fantastic development located a few hundred feet from the white sand beaches on the Gulf of Mexico.  The property is located within minutes from Keesler Air Force Base, Casinos and tons of local shopping and restaurants.  This property goes with the old tag line, location, location, location!  We have one and two story two bedrooms available.  The property includes 2 resort style pools, fitness center and on site park.  The finishes are immaculate with granite counter tops, tile floors and stackable washer and dryer included.  We have the ability to provide owner financing on a few units in this fabulous GO Zone project.  Perfect for vacation rental or military personal in the private-public partnership program.    Property Name: Oak ShoresSpecial Circumstances: GO Zone Eligible, Owner Financing AvailableLocation: A+City: BiloxiState: MississippiType: condos/2 story townhome styleStories: 1-2Bedrooms: 1-2Bath: 1-2Home Size: 600-1,000 

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CONTACT US TODAY

Preston M. Despenas, PartnerHANOVER COMPANIES

PHONE: 1(773) 305-1266WEBSITE: www.HanoverCompanies.com

EMAIL: [email protected]