HOUSINGINVESTMENT PRESENTATION
OVERVIEW
OUR MODEL
3CURRENT HOUSING
MARKET
2
PROFIT STRUCTURE
5
DESIGN & RENOVATION PROCESS
4
ABOUT US
1
Executive Summary
We acquire small homes on big lots in good neighborhoods. We add square footage to the home.
Then we sell the home for a profit.
Our Company
Corporate PhilosophyTo identify investment strategies that systematically and
predictably produce healthy returns.
Corporate Highlights• Over 28 years of real estate transactional experience• Over 40 years of architectural experience• Over 30 years of construction experience
OUR TEAMKwame Granderson - President
• Harvard Law educated Real Estate Attorney• Nationally recognized speaker on structuring deals & asset protection• Structured more than a $1 billion worth of real estate transactions
Norberto Nardi- Vice President
• Masters Degrees in Architecture from National University of Cordoba, Argentina and Urban Design from Columbia University• Award winning residential and commercial designer of projects in the US, Italy, Spain and Germany as well as more than 20 projects in China.
Key Players
• Jeremy Granderson—General contractor over 30 years• Paoblo Nardi—General contractor specializing in high-end finishes 15 years• Carla Buigues-Washington—San Gabriel Valley Realtor over 20 years
Hedge funds are bidding up properties being sold at trustee sales.
CURRENT HOUSING MARKET
Banks are hiring appraisers to value properties before approving shortsales thereby reducing potential
discounts.
PROBLEM: Saturated market with shrinking profit margins.
Total number of foreclosures shrinking as the market slowly begins to rebound.
ABOUT US
Identify a niche strategy that…
2. Does not rely on artificially depressed pricing and is therefore viable over the long term.
SOLUTION
3. Does rely on an experienced team with sophisticated skill sets and is therefore harder to
compete with.
1. Does not rely on competing for distressed property in a saturated market.
Put simply…
1. We buy small houses on big lots in good neighborhoods.
OUR MODEL
CURRENT HOUSING MARKET
2. We expand them to slightly bigger houses on big lots and create additional value.
ABOUT US
3. We then sell the house for a profit.
“Small House” means a house at least 40% smaller than the median house in the area (e.g., 1000 sq. ft. house in an area where the median home is 1800).
Small Houses On Big Lots
Peachtree Lane
1000 sq. ft.
6000 sq. ft.
1800 sq. ft.
6000 sq. ft.
1800 sq. ft.
6000 sq. ft.
Small Houses On Big Lots
Peachtree Lane
“Big Lot” means a lot where the house sits on no more than 16% of the lot (e.g., 1000 sq. ft. house on a 6000 sq. ft. lot or bigger)
1000 sq. ft.
6000 sq. ft.
Slightly bigger house means increasing the house to the size of the median house in the area. We don’t exceed the median house size to ensure that it is not overbuilt for the neighborhood. In the example below, it would mean adding 800 sq. ft.
Slightly Bigger House on Big Lot
Peachtree Lane
1800 sq. ft.
6000 sq. ft.
1800 sq. ft.
6000 sq. ft.
1800 sq. ft.
6000 sq. ft.
Our profit results from the difference between (1) Cost to expand AND
(2) New value of the home
Sell the House for a Profit
Cost to ExpandAdditional 800 sq. ft.
@ $100 per sq. ft. equals$80,000 of construction costs
New value of the home is determined by the price per square foot in the neighborhood.
Add 800 sq. ft. @$300 per square foot and the home value increases $240,000.
PROFIT
Sell the House for a Profit
$80,000 of construction costs
MINUS
$240,000 of additional value
Why? Foreign investors are buying aggressively in this area making it easier sell quickly once renovation is complete.
Sample Market—San Gabriel Valley
Our proprietary formula allows us to determine the right projects to pursue in the right areas.
Proprietary Formula
CURRENT HOUSING MARKET
OUR MODEL
DESIGN & RENOVATION PROCESS
We have three goals:
ABOUT US
1. Maintain architectural integrity
2. Create open, contemporary living areas
3. Create overall appeal with attractive finishes and landscaping
Before After
Sample Kitchen (Hancock Park, CA)
Before After
Sample Bathroom (Long Beach, CA)
Before After
Sample Front Exterior (Hollywood, CA)
Before After
Sample Expansion (Arcadia, CA)
Expansion
Sample Expansion (Arcadia) 600 sq. ft.
(A) Covered Porch A
B
C
(B) Family Room
(C) Master Bedroom
DESIGN & RENOVATION PROCESS
In areas that demand higher end finishes our team has the experience to deliver…
Clean lines
Minimalist design
and Urban elements
That will increase saleability
NEW HOMES PROGRAM
WHY MANUFACTURED HOMES?
OUR MODEL
PROFIT STRUCTURES
ABOUT US
Our deals are structured as joint ventures with one of three profit structures:
• Security Maximizer• Security Optimizer• Profit Maximizer
We distribute profit at the end of each deal.
1 Year Term10% Preferred Return
15% Upside Return$100,000 - $249,000 Minimum Requirement
SECURITY MAXIMIZER
1 Year Term12% Preferred Return
20% Upside Return$250,000 - $499,000 Minimum Requirement
SECURITY OPTIMIZER
No Minimum Term50% Profit Split with Managing Partner
$500,000 Minimum Requirement
PROFIT MAXIMIZER
Research and Acquisition
Design andRenovation
Total Time Frame
Time
3 to 5 Months**Depending on number
of homes
3-6Weeks
6-12Weeks
Our Process Timeline
Marketing and Sale
3-6Weeks
d
Process Summary
Customized search strategy to target specific homes.
Pay all cash to achieve favorable terms. Acquire
Sell at a competitive
price point to move quickly.
Contemporary designs that
preserve architectural of
the home.
Design &Renovate
SellResearch
Thank You
Legal DisclaimerThis presentation contains forward looking statements and other expressions which are predictions of future events and trends. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which
may cause the actual results to differ from the anticipated future results expressed or implied by such forward-looking statements. Expected returns are not a guarantee of future returns and prospective investors must be cognizant of this fact in making their investment decision. Investors are advised to consult their own financial
advisors, lawyers or tax advisors as appropriate prior to making a decision.
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