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(800) 611-3060
www.NoradaRealEstate.com
Your Premier Source For Real Estate Investments
Bayside Park – Waveland, Mississippi
Equity, Cash-Flow and Appreciation
REAL ESTATE INVESTMENT GUIDE
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Get Positive Cash Flow with
Massive Tax Advantages!
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TABLE OF CONTENTS INTRODUCTION ........................................................................................................................................... 3 INVESTMENT HIGHLIGHTS ........................................................................................................................ 4 THE CURRENT OPPORTUNITY ................................................................................................................. 6 EXECUTIVE SUMMARY .............................................................................................................................. 7 BENEFITS OF THE “GO ZONE” .................................................................................................................. 9 GULF COAST REAL ESTATE MARKET .................................................................................................... 10 TARGET AREA ........................................................................................................................................... 12 POPULATION AND DEMOGRAPHICS .................................................................................................... 14 MISSISSIPPI ECONOMY AT A GLANCE .................................................................................................. 16 ECONOMIC FORECAST (2006 – 2008) ................................................................................................... 17 MISSISSIPPI COAST EMPLOYMENT ....................................................................................................... 18 MISSISSIPPI COAST CASINO NEWS ....................................................................................................... 20 LOCATION MAPS ....................................................................................................................................... 22 BAYSIDE PARK .......................................................................................................................................... 23 A PROPERTY MANAGER’S VIEW ............................................................................................................ 25 CASH-FLOW ANALYSIS ............................................................................................................................ 26 FINANCING................................................................................................................................................. 28 MODEL ELEVATION .................................................................................................................................. 29 FLOOR PLAN ............................................................................................................................................. 30 HOME FEATURES ..................................................................................................................................... 31 PHOTOS ..................................................................................................................................................... 32 NEWS ARTICLES ....................................................................................................................................... 33 ADDITIONAL INFORMATION .................................................................................................................... 39 CONCLUSION ............................................................................................................................................ 40 HOW DO I GET STARTED? ....................................................................................................................... 41
DISCLAIMER NOTICE
The materials and information contained in this document are provided on an “AS IS” basis and “AS AVAILABLE” basis, without representations or warranties of any kind. Norada Real Estate expressly disclaims any and all such representations and warranties, either expressed or implied, including without limitation warranties of title, non-infringement, or implied warranties of merchantability or fitness for a particular purpose. Norada Real Estate does not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. Norada Real Estate may make changes to this material at any time without notice. While Norada Real Estate strives to keep the information in these materials accurate and current, Norada Real Estate cannot guarantee the accuracy, completeness or timeliness of the information. Information within these materials may contain technical inaccuracies or typographical errors. Norada Real Estate reserves the right to make changes, corrections and/or improvements to the information contained within these materials at any time, without notice. This is not an offering for securities. We are in a market with rapidly changing interest rates. A steady rise in interest rates could alter your cash flow. As with any large purchase, it is highly recommended that you perform your own due diligence. There are no guarantees made and your returns could be higher, lower, or you could lose money. The length of time to build your property can vary depending on weather, city inspections, etc.
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INTRODUCTION
THE MISSISSIPPI GULF COAST Our intensive research has shown that this area is America’s new hot housing market. Here’s why:
� Hurricane Katrina devastated the entire Mississippi Gulf Coast, destroying over 64,000 homes and tens of thousands of rental properties. This has created a critical need for new affordable home construction.
� Booming Casino Industry is driving incredible growth across the entire region. In Biloxi, 11 casinos are up and running... several more are planned, including Jimmy Buffett’s Margaritaville resort and casino... a $750 million project!
� We Create Value by rebuilding the area and upgrading neighborhoods.
� Government Financial Incentives and tax breaks encourage growth and create an attractive investment environment. In fact, you may be able to deduct 50% of the cost of the building from your tax liability in the first year.
� Expanding Military Installations of Keesler Air Force Base, Stennis Space Center, and Atlantic Fleet Seabee base mean huge demand for home rentals and purchases.
We’re building the new Bayside Park.
� Our latest residential development,
Bayside Park, is located in Hancock County, Mississippi.
� This area, almost completely wiped off the map by Hurricane Katrina has perhaps the most urgent need for affordable new homes.
Be a part of it.
� To invest in real estate, you need a
careful plan: a comprehensive strategy to maximize your goals. Our investment strategies, such as the Bayside Park development, have served hundreds of clients. We are here to help you invest in a convenient, well-researched, wealth building investment.
Real Estate Investing Made Easy.
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INVESTMENT HIGHLIGHTS THE CURRENT OPPORTUNITY
� Katrina was our nation’s worst natural disaster – referred to as the “100 Year Storm”. � Hurricane Katrina destroyed 64,000 homes and 47,000 rental properties. � 30,000 families still live in FEMA trailers. 40,000 families are living with friends & family. � Changes in gaming laws have created a casino boom.
EXECUTIVE SUMMARY
� As of the fall of 2006, a total of 100,000 families were still displaced. � The true rebuilding of single family homes in the area has only recently commenced. � Demand for affordable housing has created significant growth in the housing market. � The real estate boom has only started and may run for the next 3 to 5 years. � The Mississippi Gulf Coast is one of the best real estate markets in the country.
BENEFITS OF THE “GO ZONE”
� Get a 50% bonus depression in your first year (per property). � Claim the bonus depression against the taxes you’ve paid over the last 5 years. � Claim the bonus depression against any taxes paid over the next 10 years.
GULF COAST REAL ESTATE MARKET
� 100,000 homes needed right NOW. � 300,000 more homes needed over the next 5 years. � 95% of displaced persons have returned home and only 7,000 homes have been rebuilt. � 30,000 families still live in FEMA trailers. 40,000 families are living with friends & family.
TARGET MARKET
� The Mississippi Gulf Coast Counties were experiencing tremendous growth pre-Katrina. � Hancock County is the target market offering the greatest opportunity for investors. � The average household size was 2.52 and the average family size was 2.99. � Racial makeup was 90.2% White, 6.8% Black/African American, 1.8% Hispanic/Latino.
POPULATION & DEMOGRAPHICS
� Hancock County had a 46.6% population growth from 1990 to 2005. � The population has greatly rebounded from the decline suffered directly after Katrina. � Projections by the State of Mississippi show the population will continue to increase. � Increase in baby-boomers moving to the area as well as additional demand for workers
in the Casino, and Aerospace & Defense industry are positive factors supporting growth. MISSISSIPPI ECONOMY AT A GLANCE
� Per capita income has increased at twice the national average. � Retail sales have increased 61%. � Average price of homes currently available in the market are too high: $200,000 and up! � Gaming revenues and gaming employment are now at record levels. � The Post Katrina construction boom should spark an acceleration of economic growth.
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MISSISSIPPI COAST EMPLOYMENT
� Current casinos employ over 18,000 people. � 11 more casinos in 2008 will employ 22,000 more people. � Stennis Space Center, Ingalls Shipbuilders and Keesler AFB employ over 35,200 people � Almost every industry has experienced wage increases from construction to fast food. � Employment opportunities in the area are strong and growing.
MISSISSIPPI COAST CASINO NEWS
� Each casino employs 1,600 to 2,000 locals. � Employees drive up to 2 hours each way to work. � Casinos are housing employees at a cost of $250+ per night. � 11 new casinos are planed resulting in 22,000 more employees with nowhere to live. � Local casinos currently generate over $235,000,000 in revenue per month. � The Gulf Coast is now America’s second largest gaming destination.
BAYSIDE PARK
� Located in Waveland, Mississippi. � Bayside Park is a perfect “bedroom community”. � 5,000 buildable lots. We control 1,500 of those lots. � Lot prices appreciated from $1,500 to $15,000 during the last 6 months.
A PROPERTY MANAGERS VIEW
� High demand for rental housing – now. � Phone will not stop ringing once housing becomes available. � There has been quite a bit of expansion already and more is expected. � The construction industry alone will drive the rental market in Hancock County for
several years to come. MODEL & FLOOR PLAN
� 3 Bedrooms, 2 Bath, 1,457 sq ft home. � $126,900 complete with lot. � Leases for $1,225 per month.
INVESTMENT HIGHLIGHTS
� 5% to 10% total down payment. � Positive Cash-Flow. � Government incentives. � Accelerated 50% depreciation (potentially a $18,450 tax refund)* � Revitalization = High appreciation potential. � Strong need for affordable rental homes. � Excellent jobs market. � Growing vacation destination. � Second largest gaming destination in the USA (Las Vegas is first).
* The estimated GO Zone net cash benefit in Year 1 (50% special accelerated depreciation) assuming $123,000 home value, $61,500 in depreciation, and a 30% tax bracket is $18,450!!! To better understand all the special benefits available (and important restrictions that may apply) in this unique opportunity, we strongly suggest you consult with your professional tax or financial advisor.
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THE CURRENT OPPORTUNITY HIGHLIGHTS
� Katrina was our nation’s worst natural disaster – referred to as the “100 Year Storm”. � Hurricane Katrina destroyed 64,000 homes and 47,000 rental properties. � 30,000 families still live in FEMA trailers. 40,000 families are living with friends & family. � Changes in gaming laws have created a casino boom.
Norada Real Estate in collaboration with its partner builders has acquired 1500 platted and R-1 zoned lots in Bayside Park Mississippi. Bayside Park is located in Western Mississippi just south of I-10 and US-90 and is a 30-45 minute drive from the booming Gulfport / Biloxi Casino area and a 30-45 minute drive from New Orleans. Our development is located inside the Gulf Opportunity Zone (The GO Zone) which offers investors incentives for building and operating rental properties. The Governor of Mississippi recently announced there is an immediate need for 100,000 new affordable homes to be built within the next 12 months. There are currently 101,000 people living in FEMA trailers due to the devastation of hurricane Katrina. Many of the people have been in the trailers since 2005 due to the severe housing shortage and many are still living in tents. There are other factors contributing to the demand as well, including the booming Casino/entertainment industry, Kessler AFB, the Stennis Space Center expansion, the growing aerospace corridor, shipbuilding, growing international trade zones, and general business climate. Norada Real Estate is offering homes at wholesale prices starting in the mid $120s, including the lot, exclusively to our investors to meet the housing needs of the hard working families in this area. The lender's appraiser valued our current 3-bedroom, 2-bath offering at over $149,000. Our investor’s wholesale pricing is only $126,900. Lot's that were $1,500 only 6 months ago are now selling at $13,000. As with all investment opportunities timing is everything. We feel this is a great investment opportunity for those that get involved at this early stage. Prices are going to be raised in the near future so we encourage those interested to lock in at today’s pricing to gain maximum benefit from their investment. Norada Real Estate is offering a turn-key investor package that includes financing, construction, property management, lawn service and on site liquidation service.
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EXECUTIVE SUMMARY HIGHLIGHTS
� As of the fall of 2006, a total of 100,000 families were still displaced. � The true rebuilding of single family homes in the area has only recently commenced. � Demand for affordable housing has created significant growth in the housing market. � The real estate boom has only started and may run for the next 3 to 5 years. � The Mississippi Gulf Coast is one of the best real estate markets in the country.
Prior to hurricane Katrina, the Mississippi Gulf Coast real estate market was showing significant strength due to the expanding Casino market, expanding defense industry and baby-boomers looking for more affordable Gulf Coast living. In many respects it offered people a more affordable life style than Florida, at substantially lower costs. When Katrina struck the Gulf Coast, growth came to an abrupt halt, as Casinos were destroyed, businesses were damaged, and residents were made homeless. In the first year after the hurricane, the housing market was surprisingly slow to recover. During this period there were only 1,463 new single family housing permits and 28 new multifamily housing permits that were drawn. As perplexing as this may seem, there are several plausible reasons why this occurred.
Following Katrina, many construction firms concentrated on the immediate clean up and repair work in the local area. Second, many of the builders were given lucrative construction contracts to repair and rebuild Casinos. Contractors were hired to work around the clock to meet tight deadlines on getting the casinos up and running. Just after Katrina, Mississippi changed its gaming laws and now the Casinos are able to build 800 feet onshore. See Casino News elsewhere in this guide. Builders obviously went with the large lucrative contracts, and paid little attention to the housing needs of
the community. Because of these factors, the true rebuilding of single family homes in the area has only recently commenced. Keep in mind that as late as the fall of 2006, 5,000 to 10,000 people were still living in tents, another 30,000 to 40,000 families where in FEMA trailers and a total of 100,000 families were still displaced.
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Recent economic studies show that the Gulf Coast area is recovering. Statewide, gross state product and employment have surpassed pre-Katrina levels and a reconstruction boom is anticipated for the next five years. Post Katrina employment growth in the state more than offset jobs that were lost due to Katrina. Retail sales in the twelve months after Katrina are 19% above pre-storm levels, indicating further strengthening in the economy. Because of the recovering economy in the coastal counties and the desire for residents to return to the area, affordable housing has become the major issue effecting sustainable growth in the area. The recent demand for affordable housing has created significant growth in the local housing market. In October of 2006 MSNBC reported that the effects of Katrina may spout a Real Estate boom in Mississippi. Now it is late 2007 and many builders and developers are beginning to enter the market for what looks to be a significant growth market. Many of the developers are focusing on buying up whole blocks of destroyed homes South of I-10 to make room for Casinos, condos and entertainment complexes. Other developers are focusing on land north of I-10 that has higher elevation than most coastal areas and has no lingering effects from the hurricane. The Mississippi Real Estate Commission Vice Chairman was recently quoted as saying that the Mississippi Gulf Coast is one of the best real estate markets in the country. Investors believe that Katrina is only one of the factors that should lead to an excellent real estate opportunity in the years to come. Other factors are the continuing expansion of the Casinos, jobs created by the expanding defense industry and the migration of baby boomers to warm weather spots near the Gulf. Most experts agree that the real estate boom has only started and may run for the next 3 to 5 years. As an added inducement to investors, the State of Mississippi is offering significant tax incentives to invest in the area that were hardest hit by hurricanes. The combination of a high growth area, with the opportunity for appreciation and added tax incentives, make investing in Mississippi a very attractive alternative for real estate investors.
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BENEFITS OF THE “GO ZONE” HIGHLIGHTS
� Get a 50% bonus depression in your first year (per property). � Claim the bonus depression against the taxes you’ve paid over the last 5 years. � Claim the bonus depression against any taxes paid over the next 10 years.
WHAT IS THE “GO ZONE” The Gulf Opportunity Zone Act of 2005, signed into law by President Bush on December 21, 2005, contains significant economic incentives to rebuild the Gulf Coast, as well as to attract new investments to the affected areas. Modeled after the Liberty Zone incentives created after the 9-11 disaster, these incentives are intended to stimulate private investment within the Gulf Opportunity Zone (GO Zone) within the window of time provided. These economic incentives are so significant that any person considering an investment in the GO Zone should consider how to employ these incentives to the fullest extent possible. The most significant incentives in the GO Zone Act include:
� 50% Bonus Depreciation � 5-Year Net Operating Loss (NOL) Carryback � Tax-exempt financing � GO Zone incentives coupled with state incentives � 100% First-Year Equipment Expense Deduction for Small Businesses � Special Incentives for Employers � Expensing of Demolition and Cleanup Charges
The benefit of the GO Zone for real estate investors is the first year 50% Bonus Depreciation. The following examples are not to be considered tax or legal advice. Please consult your tax professional as your personal circumstances will vary. (IRS Publication 4492) 50% BONUS DEPRECIATION EXAMPLE This special deduction equals 50% of the qualified property's depreciable basis in the first year. $126,400 (Approximate new home purchase price in the GO Zone) - $ 10,000 (Approximate land value, not depreciable) $116,400 (Total improvement for depreciable basis)
$ 58,200 (1st year 50% Bonus Depreciation per property) NOTE: Please consult your tax professional for advice related to your specific tax situation.
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GULF COAST REAL ESTATE MARKET HIGHLIGHTS
� 100,000 homes needed right NOW. � 300,000 more homes needed over the next 5 years. � 95% of displaced persons have returned home and only 7,000 homes have been rebuilt. � 30,000 families still living in FEMA trailers. � 40,000 families are living with friends and family.
Prior to Katrina, the Mississippi Gulf Coast real estate market was showing significant strength due to the expanding Casino market, expanding defense industry and baby-boomers looking for more affordable Gulf Coast living. In many respects it offered people a more affordable life style than Florida, at substantially lower costs. When Katrina struck the Gulf Coast, growth came to an abrupt halt, as Casinos were destroyed, businesses were damaged, and residents were made homeless. In the first year after the hurricane, the housing market was surprisingly slow to recover. During this period there were only 1,463 new single family housing permits and 28 new multi-family housing permits that were drawn. As perplexing as this may seem, there are several plausible reasons why this occurred. Following Katrina, many construction firms concentrated on the immediate clean up and repair work in the local area. Second, many of the builders were given lucrative construction contracts to repair and rebuild Casinos. Contractors were hired to work around the clock to meet tight deadlines on getting the casinos up and running. Builders obviously went with the large lucrative contracts, and paid little attention to the housing needs of the community. Because of these factors, the true rebuilding of single family homes in the area has only recently commenced. Keep in mind that as late as the fall of 2006, 5,000 to 10,000 people were still living in tents, another 30,000 to 40,000 in trailers and a total of 100,000 families were still displaced. Because of the recovering economy in the coastal counties and the desire for residents to return to the area, affordable housing has become the major issue effecting sustainable growth in the area. The recent demand for affordable housing has created significant growth in the local housing market. In October of 2006 MSNBC reported that the effects of Katrina may spout a Real Estate boom in Mississippi. Many builders and developers are beginning to enter the market for what looks to be a significant growth market. Many of the developers are focusing on buying up whole blocks of destroyed homes South of I-10 to make room for Casinos, condos and entertainment complexes. Other developers are focusing on land north of I-10 that typically has higher elevation and has no lingering effects from the hurricane. Mark Cumbest – the Mississippi Real Estate Commission Vice Chairman was recently quoted as saying that the Mississippi Gulf Coast is one of the best real estate markets in the country. Investors believe that Katrina is only one of the factors that should lead to an excellent real estate opportunity in the years to come. Other factors are the continuing expansion of the Casinos, jobs created by the expanding Aerospace & Defense industry and the migration of baby boomers to lower cost warm weather spots near the Gulf. Most experts agree that the real estate boom has only started and may run for the next 3 to 5 years. As an added incentive to investors, the State of Mississippi is offering significant tax incentives to invest in the area that were hardest hit by hurricanes. The combination of a high growth area, with the opportunity for
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appreciation and added tax incentives, make investing in Mississippi an attractive alternative for real estate investors. According to the OFHEO.gov House Price Index report of Quarter 1, 2007, Biloxi-Gulfport was the sixth greatest appreciating market in the country for year over year appreciation, appreciating 15.16%. Last quarter alone, Biloxi-Gulfport appreciated 4.77%. BAYSIDE PARK One area of high ground that is south of 1-10 is now getting much attention from developers. Our builder has acquired 1,500 platted and zoned lots in Bayside Park. This area is experiencing double digit appreciation and offers the investor a great opportunity for ROI. Lot's in Bayside Park that were $1,500 only 6 months ago are now listed at $15,000. Where others have been building homes in the $250,000 plus range north of I-10, we are offering investors homes starting in the mid $120,000 to meet the overwhelming demand for affordable workforce housing.
Timing is everything with all investment opportunities. The same is true here. We feel this is a great investment opportunity for those that get involved at this stage. To gain maximum benefit from this investment opportunity we encourage those interested to lock in today. Don’t overlook the fact that Income Property owners can qualify for the ”GO Zone Incentives” including the 50% accelerated depreciation incentive that translates into a substantial tax windfall. This investor incentive can be carried back 5 years and forward 10 years.
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TARGET AREA HIGHLIGHTS
� The Mississippi Gulf Coast Counties were experiencing tremendous growth pre-Katrina. � Hancock County is the target market offering the greatest opportunity for investors. � The average household size was 2.52 and the average family size was 2.99. � Racial makeup was 90.2% White, 6.8% Black/African American, 1.8% Hispanic/Latino.
The target market we have identified for investors are the Mississippi Gulf Coast Counties of Hancock, Harrison and Jackson. These counties were some of the hardest hit by hurricane Katrina and offer the greatest opportunity for investing in the recovery process. In addition these counties, pre-Katrina, were experiencing tremendous growth associated with the expansion of Casinos and defense industries. The Gulf Coast counties encompass a 1,795 square mile area, more than 40 miles of beaches, about 360,000 people and 11 unincorporated cities. Listed below is a short description of our target county: Hancock County, Mississippi Hancock County is the southernmost county of the U.S. state of Mississippi, situated along the Gulf of Mexico and the state line with Louisiana. As of 2000, the population was 42,967. Its county seat is Bay St. Louis. The area is also home to the John C. Stennis Space Center, NASA’s largest rocket engine test facility. The county was severely damaged from Hurricane Katrina on August 28-29, 2005 causing catastrophic effects. Geography According to the U.S. Census Bureau, the county has a total area of 1,431 km² (553 mi²). 1,235 km² (477 mi²) of it is land and 196 km² (76 mi²) of it (13.69%) is water. Major Highways
• Interstate 10 • U.S. Highway 90 • Mississippi Highway 43 • Mississippi Highway 53
Adjacent Counties
• Pearl River County (north) • Harrison county (east) • St. Tammany Parish, Louisiana (west)
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Demographics As of the census of 2000, there were 42,967 people, 16,897 households, and 11,827 families residing in the county. The population density was 35/km² (90/mi²). There were 21,072 housing units at an average density of 17/km² (44/mi²). The racial makeup of the county was 90.19% White, 6.83% Black or African American, 0.60% Native American, 0.88% Asian, 0.04% Pacific Islander, 0.33% from other races, and 1.14% from two or more races. 1.80% of the population was Hispanic or Latino of any race. There were 16,897 households out of which 31.50% had children under the age of 18 living with them, 53.90% were married couples living together, 11.30% had a female householder with no husband present, and 30.00% were non-families. 24.70% of all households were made up of individuals and 9.20% had someone living alone who was 6 years of age or older. The average household size was 2.52 and the average family size was 2.99. In the county the population was spread out with 25.10% under the age of 18, 7.30% from 18 to 24, 28.00% from 25 to 44, 25.60% from 45 to 64, and 14.00% who where 65 years of age or older. The median age was 38 years. For every 100 females there were 98.30 males. For every 100 females age 18 and over, there were 95.50 males. The median income for a household in the county was $35,202, and the median income for a family was $40,307. Males had a median income of $32,229 versus $22,066 for females. The per capita income for the county was $17,748. About 11.20% of families and 14.40% of the population were below the poverty line, including 17.90% of those under age 18 and 10.30% of those ages 65 or over. Cities and Towns
• Bay St. Louis • Waveland • Diamondhead • Kiln • Pearlington • Shoreline Park • Clermont Harbor • Lakeshore • Bayou Caddy
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POPULATION and DEMOGRAPHICS HIGHLIGHTS
� Hancock County had a 46.6% population growth from 1990 to 2005. � The population has greatly rebounded from the decline suffered directly after Katrina. � Projections by the State of Mississippi show the population will continue to increase. � Increase in baby-boomers moving to the area as well as additional demand for workers
in the Casino, and Aerospace & Defense industry are positive factors supporting growth. The Mississippi Gulf Coast Region is a diverse area including both urban and rural development. The largest cities are clustered along the coastline in Harrison and Jackson Counties. This region experienced moderate to strong growth leading up to Katrina’s impact producing a sizeable population base of 465,000. A strong regional economy and affordable cost of living attracted residents from across the South. Population historically has been clustered near major employment centers in Harrison and Jackson Counties, but significant growth has occurred in the four smaller population base counties since 1990. The table below shows the population growth from 1990 to 2005 by county, with a comparison to state and national levels.
POPULATION GROWTH, 1990-2005
12.9%
19.2%
28.2%
46.4%
15.1%16.9%
35.3% 35.9%
0%
10%
20%
30%
40%
50%
Mississippi U.S. George Hancock Harrison Jackson Pearl River Stone
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POPULATION PROJECTED BY COUNTY Population projections furnished by the state of Mississippi show the Gulf Coast area population will continue to increase. The increase in baby-boomers moving to the area as well as the additional demand for workers in the Casino and Aerospace & defense industry are all positive factors supporting growth.
CURRENT 2010 2015 2020
Hancock 46,711 49,548 51,805 54,294
Harrison 193,810 197,103 200,028 204,914
Jackson 135,940 140,832 145,132 148,645
Despite the devastating impacts of Katrina, the Mississippi Gulf population has greatly rebounded from the population decline suffered directly after the hurricane. Some of the population had shifted to northern counties as rebuilding was taking place in the Gulf Counties. As more affordable housing is created, residents will return to the Gulf Communities which are closer to the employment base and the Gulf beaches. GULF COAST DEMOGRAPHICS 2005 Considerable ethnic diversity exists within the Gulf Region, particularly given its geography and population density. While Caucasians amount for 77% of the area’s population, other racial and ethnic groups are growing quickly. The African American community is the second largest racial group and amount for 19% of the population, and the Asian community now account for 2% of the population. Similar to the track with the rest of the nation, the Hispanic community is one of the fastest growing ethnic groups and account for 2% of the local population.
Racial and Ethnic Demographics in the Gulf Region
(U.S. % in Parenthesis)
African
American,
19% (12%)
Asian, 2% (4%)
Caucasian 77%
(61%)
Other, 3% (8%)
Hispanic 2%
(15%)
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MISSISSIPPI ECONOMY AT A GLANCE HIGHLIGHTS
� Per capita income has increased at twice the national average. � Retail sales have increased 61%. � Average price of homes currently available in the market are too high: $200,000 and up! � Revenues and gaming employment are now at record levels. � The Post Katrina construction boom should spark an acceleration of economic growth.
After the devastating impact of Katrina that struck the Gulf Coast on August 29th, 2005, the economy in the area has continued to recover at an increasing pace. Statewide, gross product and employment have surpassed pre-Katrina levels and a reconstruction boom is anticipated for the next five years. Post Katrina employment growth in the state more than offset the approximately 22,000 jobs that were lost due to Katrina. Retail sales in the twelve months after Katrina are 19% above pre-storm levels, indicating further economic strengthening. Much of the economic base in the three Gulf Coast counties (Hancock, Harrison, and Jackson) is tied to the Casino and Aerospace & Defense industries. Casinos on the coast that were destroyed by Katrina have staged a remarkable comeback. Just after Katrina, Mississippi changed their gaming laws that allowed the Casinos to be built 800 feet inland from open water. Revenues and gaming employment are now at record levels. Additional Casinos are under construction and many other casinos are in the planning stage thus making the Casino industry a large and dependable employer for years to come. For updated gaming information visit http://www.mgc.state.ms.us. The Post Katrina construction boom should spark an acceleration of economic growth in the state over the next three to five years as the numbers in Economic Forecast below show. Gross state product is expected to grow 2.9% in real terms in 2006, with a slightly higher growth rate forecast for 2007 as reconstruction effects push the growth rate higher. While activity levels will remain high in 2008, the growth rate is expected to slow somewhat at 2.8%. Employment growth which has been under 1.0% in 2006, will increase to 1.3% in 2007 and 1.2% in 2008 as the number of persons employed on the coast reaches and exceed pre-Katrina levels. The current and future economic outlook for the area looks promising but there are some major challenges that need to be overcome. The overwhelming majority believe that the key factor that will impact future rebuilding efforts will be affordable housing.
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ECONOMIC FORECAST (2006 – 2008) Percent Change
Mississippi 2006 2007 2008
Gross State Product 5.8 5.2 4.6 Real Gross State Product 2.9 3.1 2.8 Price Level 2.8 2.1 1.7 Establishment Employment 0.8 1.3 1.2 Unemployment Rate 7.7 6.6 6.3 Personal Income 7.1 6.0 5.4 Consumer Price Level-South 3.3 2.1 2.1 United States
Gross Domestic Product 6.3 4.6 5.1 Real Gross Domestic Product 3.3 2.4 3.1 Price Level 2.9 2.2 1.9 Establishment Employment 1.4 1.1 1.3 Unemployment Rate 4.6 4.8 4.9 Personal Income 7.2 5.4 5.3 Consumer Price Level-South 3.3 2.1 1.9 SOURCE: Center for Policy Research and Planning, Mississippi Institutions of Higher Learning, November, 2006.
Global Insight November, 2006.
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MISSISSIPPI COAST EMPLOYMENT HIGHLIGHTS
� Current casinos employ over 18,000 people. � 11 more casinos in 2008 will employ 22,000 more people. � Stennis Space Center, Ingalls Shipbuilders and Keesler AFB employ over 35,200 people � Almost every industry has experienced wage increases from construction to fast food. � Employment opportunities in the area are strong and growing.
The Mississippi Gulf Coast has a wide array of large employers representing industries from tourism to manufacturing. These employers are industry leaders such as Northrup Grumman, Chevron, Dupont, Triton Systems, GE Plastics, the Southern Company, Hatter Marine, Fried Goldman, Oreck, and the Coast’s casinos. Since 1941, a strong military presence on the Mississippi Gulf Coast has also contributed significantly to the economy. More recently, legalized dock side gambling has fueled growth, not only in the tourism industry, but all segments of the economy. The Casino industry is one of the largest employers on the Gulf Coast. The Mississippi Gulf Coast “Go Zone” story has been dominated by the massive influx of the Gaming and Hospitality industry. But that is only part of the story. South Mississippi's Aerospace & Defense industry includes federal and university research units that focus on propulsion, remote sensing, visualization and scientific computing. It also has aerospace parks, military aviation bases, technology transfer offices and test ranges. Let’s take a look at the short list of companies in the “Go Zone” that populate the Mississippi Gulf Coast Aerospace Corridor; BAE Systems, Pratt & Whitney Rocketdyne Rocket Engine Assembly Facility, Applied Technologies, General Dynamics, ITT Industries Inc., Lockheed Martin, Northrop Grumman, Rolls-Royce Naval Marine Inc. South Mississippi has leading-edge research and practical experience with composites that go into aircraft; it has the plants that use composites to make fixed-wing and rotary unmanned aircraft; it builds the next generation of warships that will launch robot aircraft; it has a weapons maker working with lasers; it has the satellite makers whose high-flying craft and remote sensors are key to command and control as well as surveillance; it has the companies that build the engines that power aircraft and spacecraft; it has the engine testing facilities. As a result of fewer available employees for hire, labor rates in the area have increased significantly. Almost every industry throughout the region has experienced wage increases from construction outfits to fast food restaurants. While most of the wage increases can be attributed to lack of housing and labor shortages, some of the pay increases have resulted from the need to compete with the hourly rates required by government contracts.
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High paying federally funded jobs related to the recovery effort are driving up the pay scale on other jobs. As a result, businesses have had to pay higher wages to keep (and attract) employees. In summary, although many businesses in the area have seen some shortage of employees, employees are moving back to the area. The employment opportunities in the area are strong and opportunities for employment are growing. A significant number of employees will be needed for the expanding Casino industry and support employees for the vast number of baby boomers flocking to the Gulf beaches. EMPLOYMENT BOTTOM LINE Although the Casino industry is adding tens of thousands of good paying jobs to the area, it is not the only industry that is thriving along the Gulf Coast of Mississippi. We have not even touched on the infrastructure business and general service industry that is booming. We can tell you from being actively involved in this market that it is about to explode. From single family homes in Waveland being lovingly rebuilt by church volunteers, to north county subdivisions where dozens of houses will soon rise, to Bayside Park. “People are really starting to pick up the pace,” says Mickey Lagasse, the county’s chief building official. “I think we’re going to see a huge boom in construction in the next few years.” Two years after Katrina there is still a major workforce affordable-housing shortage.
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MISSISSIPPI COAST CASINO NEWS HIGHLIGHTS
� Each casino employs 1,600 to 2,000 locals. � Employees drive up to 2 hours each way to work. � Casinos are housing employees at a cost of $250+ per night. � 11 new casinos are planed resulting in 22,000 more employees with nowhere to live. � Local casinos currently generate over $235,000,000 in revenue per month. � The Gulf Coast is now America’s second largest gaming destination.
Biloxi Officials Report Gaming Revenues at Record Levels
Biloxi’s casino industry reported all-time record business last month, with casinos generating $97.3 million in gross gaming revenue. In all, nine of the past 11 months have set records in one fashion or another in Biloxi.
“This is certainly great news,” Mayor A.J. Holloway said, “but at the same time it’s a double-edged sword. We don’t want the rest of the country getting the idea that we’re back in business and all is well here in Biloxi and along the Mississippi Gulf Coast.”
Holloway pointed out thousands of residents are still living in temporary quarters along the Gulf Coast, and Biloxi still has a long way to go in rebuilding the dozens of municipal facilities either destroyed or heavily damaged by the storm. (More Here)
Construction on Bacaran Bay and Margaritaville Casinos Underway
Work has begun on two new Biloxi casinos, Bacaran Bay, located just northeast of the IP Casino and Resort, and the new Margaritaville Casino on the beach on the former Grand Casino property. Both properties are scheduled to open in 2010 after construction is completed. The projects represent over $1.3 billion in additional casino investment in Biloxi with more to come.
Hard Rock Casino in Biloxi Opens Ahead of Schedule
6/26/07 – Officials with Biloxi's Hard Rock Casino opened Saturday, May 30th, a week ahead of their announced Grand Opening set for July 7th. For months the Hard Rock has said they would be opening on July 7th, capitalizing on the 7/7/7 date, but officials say they are ready to get started.
The soft opening also benefits the casino in getting services and employees up to speed for what will surely be a huge crowd on the Grand Opening.
Escatawpa's 3 Doors Down will open the 1,400-seat Hard Rock Live July 5, with Kid Rock playing on July 7.
The Hard Rock Casino includes The Rock Spa, Merge Salon
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with three Coast stylists, a fitness center, beach pool with underwater music, shops and five restaurants, including Hard Rock Cafe.
Hard Rock's original opening was delayed when hurricane Katrina slammed into the Coast August 29, 2005, just days from the planned original opening of the property, located just next door to the towering Beau Rivage. More information is available by visiting Hard Rock's website at www.hardrockbiloxi.com.
Treasure Bay Opens New Casino and Hotel
Treasure Bay Casino in Biloxi opened its new hotel and casino Monday, July 2, marking the return of almost all of Biloxi's casinos that were damaged or destroyed by Hurricane Katrina. Treasure Bay, whose former pirate ship barge became a Katrina devastation poster child, has finished a complete rebuild and remodel of their hotel site north of the highway. The casino has an entirely new theme, no longer the pirate ship look.
Casinos that are not returning are the President and Casino Magic. The President's location at the former Broadwater Resort has new owners and Casino Magic was purchased by Harrah's and will become part of a huge casino complex near the new Margaritaville Casino that is planned to begin construction soon.
Harrah's, Buffett Unveil Plans for $700M Margaritaville Casino & Resort in Biloxi
Harrah’s Entertainment and world-renowned singer-songwriter Jimmy Buffett joined Mayor A.J. Holloway and Gov. Haley Barbour May 15 to unveil plans for Margaritaville Casino & Resort, a $700-million-plus investment that will be on Casino Row in Biloxi and represents the single largest investment in Mississippi since Hurricane Katrina. The company expects this to be the first phase of a development that may cost more than $1 billion.
Construction of Margaritaville is expected to begin this summer with a target completion date of Spring 2010. The project is to be constructed on the former Grand Biloxi and Casino Magic property south of U.S. 90 on the Biloxi Beach. (More Here)
Biloxi Mayor Details Casino Industry Status at 2007 Gaming Summit Casinos Expanding Footprint in City
Casino resorts in Biloxi have acquired more than 175 acres in Biloxi in the 20 months since Hurricane Katrina. Biloxi Mayor A.J. Holloway told a Southern Gaming Summit audience meeting in Biloxi early in May that the city will continue to see extraordinary growth without compromising quality of life… (Much More Here)
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LOCATION MAPS
Bayside Park is centrally located Between Biloxi/Gulfport and New Orleans.
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BAYSIDE PARK HIGHLIGHTS
� Located in Waveland, Mississippi. � Bayside Park is a perfect “bedroom community”. � 5,000 buildable lots. We control 1,500 of those lots. � Lot prices appreciated from $1,500 to $15,000 during the last 6 months.
Bayside Park is a ready-for-development area meeting all our carefully researched standards for growth and creation of value.
� 30-minute drive from the main casino area of Biloxi, and near four of the new or proposed casinos.
� 45-minute drive from rapidly-rebuilding New Orleans. � Perfect area for service personnel working in the tourist/casino industry... Interstate I-10
creates an easy commute. � Excellent housing opportunities for families who don’t want to live in the center of the
casino activity. � River Walk project approved in nearby Bay St. Louis – 1,650 riverfront residential units
and commercial shopping area... investor confidence is high. � Casinos and nearby military base form a strong economic base for growth and
expansion. � Keesler Air Force Base provides over $1.2 billion in economic impact per year in our
area: o 9,000 military retirees live within 50 miles o 7,900 military and civilian personnel live off the base o 86,000 military/civilian employees and families live in the surrounding areas
� In the works: a casino, hotel, and marina complex on the west side of St. Louis Bay, a
short distance from Bayside Park. � Government-approved architectural patterns available for the construction of affordable
new homes in the area.
“Officials have approved ambitious plans for a live-work
complex along the Jourdan River, signaling continued
recovery from Hurricane Katrina and the largest
multistory residential development in city history.”
Bay St. Louis Sun Herald, April 10, 2007
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BAYSIDE PARK
Streetscape of Bayside Park
All lots are platted and recorded. All roads, services and utilities are in.
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A PROPERTY MANAGER’S VIEW HIGHLIGHTS
� High demand for rental housing – now. � Phone will not stop ringing once housing becomes available. � There has been quite a bit of expansion already and more is expected. � The construction industry alone will drive the rental market in Hancock County for
several years to come. IS THERE DEMAND? “According to ‘FEMA Housing Unit Damage Estimates as of February 2006’ of the 16,897 occupied housing units in Hancock County (Bay St. Louis) 90% had damage, 70% had serious damage or were destroyed, of the 3,513 seriously damaged renter occupied units, 76% were single family units." As of 5/2007 FEMA travel trailers and mobile homes currently in use in south Mississippi 24,448. Over 20% of the pre-Katrina population of Hancock County were renters. I can assure you these people are not all in FEMA trailers because that's where they want to be. Is there demand for rental property in Hancock County, Mississippi… YES!” HOW LONG DOES IT TAKE TO RENT? “If I gave you a set time frame I would not be the person you would want to manage your investment! I will tell you that once housing becomes available or availability dates can be advertised, my phone will not stop ringing. I am stopped every day by former tenants wanting to know when I will have somewhere for them. I have prior residents who have not wanted their Security Deposits back from before the storm so that they can stay on a list for available housing. The local Section 8 office will not give out current vouchers because there is no housing for the 1,500 pre storm vouchers that are in limbo. I would prefer to have a unit pre-leased prior to completion date and hope to be able to work closely with the builders so this is possible.” IS THERE GROWTH? “Yes sir there is. There has been quite a bit of expansion already and more is expected. The Bayside Park area, where I think you are interested in, is west of Waveland. This area is where there is proposed casino development; it is close to the Stennis Test Site (NASA facility) and is less than 45 minutes from New Orleans. The Port of Bienville, an industrial port facility, is very close by. Stennis is developing a new Research and Development Center which is expected to bring in several new high tech companies. The construction industry alone will drive the rental market in Hancock County for several years to come.”
CASH FLOW and EQUITY ACCUMULATION
Summary Acquisition Information Purchase Parameters and Assumptions Annual Increases (%)
Current Market Value: $150,000 Current Market Value: $150,000 Gross Monthly Rent: $1,225 Appreciation: 5.0%
Purchase Price: $126,400 Purchase Price: $126,400 Vacancy Factor: 5.0% Rent Increase: 2.5% Total Loan Amount: $120,000 Down Payment: 5.1% Initial Vacancy (months): 0
First Loan: $120,000 Monthly Property Tax: $100 Property Tax: 1.0% Closing Costs: $10,350 Loan Interest Rate: 7.375% Monthly Insurance: $150 Insurance: 1.0% Down Payment: $6,400 Second Loan: $0 Monthly HOA: $0 HOA: 2.0% Reserve Account: $0 Loan Interest Rate (2nd): 0.000% Monthly Lawn Care: $0 Lawn Care: 2.0% Buyer Credits: $3,750 Closing Costs: 0.0% Property Management: 10% Water/Sewer: 2.0% Total Investment: $13,000 PMI Mortgage Insurance: $0.00 Income Tax Rate: 36% Depreciation: 27.5
CASH-FLOWYEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 10 YEAR 15 YEAR 20
Gross Rental Income $14,700 $15,068 $15,444 $15,830 $16,226 $18,358 $20,771 $23,500Initial Vacancy Rental Impact $0 - - - - - - - Vacancy Factor ($735) ($753) ($772) ($792) ($811) ($918) ($1,039) ($1,175)
Total Operating Income $13,965 $14,314 $14,672 $15,039 $15,415 $17,440 $19,732 $22,325
Property Taxes $1,200 $1,212 $1,224 $1,236 $1,249 $1,312 $1,379 $1,450Insurance $1,800 $1,818 $1,836 $1,855 $1,873 $1,969 $2,069 $2,175Property Management $1,397 $1,431 $1,467 $1,504 $1,541 $1,744 $1,973 $2,233Other: Lawn Care $0 $0 $0 $0 $0 $0 $0 $0Other: PMI $0 $0 $0 $0 $0 $0 $0 $0Other: Water/Sewer/Trash $0 $0 $0 $0 $0 $0 $0 $0
5.1% Down Payment Model
Other: Water/Sewer/Trash $0 $0 $0 $0 $0 $0 $0 $0Other: HOA Dues $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expense ($4,397) ($4,461) ($4,527) ($4,595) ($4,663) ($5,025) ($5,422) ($5,857)
Loan Payments (738) ($8,113) ($8,850) ($8,850) ($8,850) ($8,850) ($8,850) ($8,850) ($8,850)
CASH FLOW (Before Tax) $1,456 $1,003 $1,294 $1,594 $1,901 $3,565 $5,461 $7,618
Value of negative operating cash flows - 0 0 0 0 0 0 0 0Depreciation $3,677 $3,677 $3,677 $3,677 $3,677 $3,677 $3,677 $3,677Loan Interest $8,113 $8,850 $8,850 $8,850 $8,850 $8,850 $8,850 $8,850
Subtotal $11,790 $12,527 $12,527 $12,527 $12,527 $12,527 $12,527 $12,527Taxable Income ($2,221) ($2,674) ($2,383) ($2,083) ($1,776) ($112) $1,783 $3,941
Tax Bracket Savings $800 $963 $858 $750 $639 $40 ($642) ($1,419)
CASH FLOW (After Tax) $2,256 $1,965 $2,152 $2,344 $2,541 $3,606 $4,818 $6,199
EQUITY ACCUMULATIONYEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 10 YEAR 15 YEAR 20
Property Value $157,500 $165,375 $173,644 $182,326 $191,442 $244,334 $311,839 $397,995
Total Equity (Value - Loan Balance) $37,500 $45,375 $53,643 $62,326 $71,442 $124,334 $191,839 $277,994
Less Investment ($13,000) ($13,000) ($13,000) ($13,000) ($13,000) ($13,000) ($13,000) ($13,000)
Increase in Equity $24,500 $32,375 $40,644 $49,326 $58,442 $111,334 $178,839 $264,995
TOTAL EQUITY / WEALTH $37,500 $45,375 $53,643 $62,326 $71,442 $124,334 $191,839 $277,994
Capitalization (Cap) Rate 7.6% 7.8% 8.0% 8.3% 8.5% 9.8% 11.3% 13.0%
Internal Rate of Return (IRR) 1,123% 263% 143% 99% 76% 69% 40% 31%
Annual Return on Investment 188% 21% 18% 16% 15% 10% 8% 7%
Total Return on Investment 188% 249% 313% 379% 450% 856% 1,376% 2,038%
CASH FLOW and EQUITY ACCUMULATION 5.1% Down Payment Model
188%
450%
856%
1,376%
2,038%
0%
500%
1,000%
1,500%
2,000%
2,500%
1 2 3 4 5
TOTAL RETURN ON INVESTMENT (ROI)(20 years)
$277,994 $300,000
TOTAL EQUITY(20 years)
188%
249%
313%
379%
450%
0%
50%
100%
150%
200%
250%
300%
350%
400%
450%
500%
1 2 3 4 5
TOTAL RETURN ON INVESTMENT (ROI)(5 years)
$71,442
$80,000
TOTAL EQUITY(5 years)
ASSUMPTIONS
This model is based on an INTEREST ONLY first loan.
Rent increase is 50% of the Appreciation.
Assessed Tax Value is based on 80% of the purchase price.
Loan rates vary based on many factors. Consult your lender.
Insurance rates vary widely. Consult your carrier.
Personal income tax rates vary. Consult your CPA.
v 3.3
$37,500
$71,442
$124,334
$191,839
$0
$50,000
$100,000
$150,000
$200,000
$250,000
1 2 3 4 5
$37,500
$45,375
$53,643
$62,326
$71,442
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
1 2 3 4 5
DISCLAIMER: The information in this "Cash Flow and Equity Accumulation" worksheet is for estimation purposes only. All information should be independently verified. Consult a licensed tax advisor and/or attorney before making any
purchase or sale decision. All figures are projections unless otherwise indicated. No guarantee is made as to its accuracy or reflection of performance.
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FINANCING
$126,400 TOTAL FOR TURN-KEY HOUSE AND LOT
$4,500 Builder deposit (includes $500 lot deposit) *
495 Mortgage application (with builder’s lender)
8,005 Balance due at close (approximately 30 to 45 days)
$13,000 Total cash required (depends on Personal Credit Profile) * Return with your completed Purchase Pack.
Cash required includes a $1,000 discount by having your completed package returned within 1 week.
State Income and Full Doc loans available through builder’s lender.
Credit score of 680+ required.
As always, please remember that lending guidelines and program availability are subject to change.
Builder pays $2,250 of closing costs!
Builder pays up to $1,500 of interest!
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MODEL ELEVATION HIGHLIGHTS
� 3 Bedrooms, 2 Bath, 1,457 sq ft home. � $126,900 complete with lot. � Leases for $1,225 per month. � Positive cash-flow.
Elevation A
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FLOOR PLAN HIGHLIGHTS
� 3 Bedrooms, 2 Bath. � 1,457 total sq ft under roof. � Open floor plan.
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HOME FEATURES Construction
♦ Permitting and Impact Fees * ♦ Monolithic slab on grade ** ♦ Builder’s Risk insurance Surveys and Lot Preparation
♦ Boundary stakes ♦ Foundation and final Structural and Construction Features and Materials ♦ Concrete footings ♦ Steel reinforcement for footings as per engineering ♦ Site Clear, Hauling, and Fill Allowance up to $4,000 *** ♦ Termite soil pre-treatment ♦ Wood framing ♦ Tie-down straps (wind load) per engineered drawings ♦ Pre-engineered roof trusses ♦ 30 year mildew resistant dimensional roof shingles ♦ Ridge vent for roof ♦ Oversized galvanized metal flashing ♦ Framing lumber culled and crowned for straightness ♦ 15 Seer high efficiency air conditioning unit ♦ R-30 blown insulation in ceiling ♦ R-13 insulation on exterior framed walls ♦ R-19 insulation in knee walls ♦ ½” drywall on all ceilings and walls (screwed) ♦ Moisture resistant board (green board) in tub/shower areas ♦ All ceilings and walls knock down drywall finish ♦ Vinyl siding and decorative shutters ♦ Vented white aluminum or vinyl soffit and fascia ♦ Aluminum or vinyl gutters and downspouts, where required
by code ♦ Culvert pipe and installation as required ♦ Up to 550 sq. ft. allowance for concrete driveway & walk *** Kitchen Components and Cabinetry
♦ All appliances are manufactured by Whirlpool with white finish and are Energy Star rated
♦ 21 cubic ft. refrigerator with icemaker, range, dishwasher, garbage disposal, and range hood
♦ Wood grain kitchen cabinets with Wilsonart laminate countertops from Builder supplied choices
Electrical Items ♦ 200 AMP service at meter ♦ Electric as per code ♦ Pre-wired for 2 phone jacks and 2 cable outlets per plan ♦ Smoke detectors by code ♦ Exterior receptacles per plan ♦ Bathroom exhaust fans vented to outside ♦ All recessed can fixtures as per plan ♦ Ceiling fan prewired per plan ♦ Light fixtures by Builder .
Plumbing
♦ Schedule 40 PVC drain, waste & vents ♦ 40 gallon quick recovery water heater ♦ Exterior hose bib(s) per plan ♦ Elongated water closets in all bathrooms (white) by
Builder ♦ Fiberglass tub and/or shower units per plan by Builder ♦ Moen Chateau fixtures in chrome throughout by Builder ♦ Stainless steel 50/50 kitchen sink with chrome Moen
faucet Bathroom Features
♦ Decorator type vanities with full sized mirrors ♦ Wood grain cabinets with Wilsonart laminate
countertops ♦ Mirrored medicine cabinets Floor Coverings
♦ Standard wet areas to be tiled from choices supplied by Builder
♦ Bedrooms, closets, great room, and dining room carpeted from choices supplied by Builder
Water System
♦ Complete well water system and connection to sewer Additional Features of Your Home ♦ Metal Insulated Entry doors ♦ Deadbolt locks on all exterior doors ♦ White single hung aluminum or vinyl windows
throughout ♦ 2 ¼” colonial casing and 3 ¼” colonial base, mitered
cut base trim ♦ 6 panel 6’8” interior doors ♦ High grade paint in flat finish, high grade 35 year
silicone caulk, interior trim in semi-gloss enamel ♦ 4,000 sq. ft. of sod with initial fertilization*** ♦ Landscaping package by Builder ♦ Attic access ♦ Front porch under truss with concrete floor ♦ Ventilated closet shelving by Builder ♦ Window coverings by Builder ♦ Hurricane shutter package where required by code ♦ Mailbox and house numbers Pricing based on a 5,000 sq. ft. standard lot in Bayside Park. The builder reserves the right to substitute materials of similar value. Features are subject to change without notice.
* Permit and Impact Fees are calculated at rates provided as of 8/1/07. If any increase in fees occurs after this date, or if any new fees are put in place, Buyer will be responsible for any difference in additional fees. ** Increases in costs related to changes in specified construction materials or procedures, which are due to new codes and/or City/County/FEMA requirements, will be the responsibility of the Buyer. *** Amounts over any allowance will be the responsibility of the Buyer.
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PHOTOS
One of our models nearing completion. Interior framing stage.
Ceiling and duct work.
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NEWS ARTICLES HOUSING BOOM ON THE HORIZON MSNBC Housing Boom - 05/03/07 WAVELAND, Miss. – What so far has been spotty progress in replacing the thousands of dwellings wiped out across Hancock County by Hurricane Katrina appears poised to morph into the bigges t residential construction boom the county has ever seen. From single homes in Waveland being lovingly rebuilt by church volunteers, to north county subdivisions where dozens of houses will soon rise, “People are really starting to pick up the pace,” says Mickey Lagasse, the county’s chief building official. “I think we’re going to see a huge boom in construction in the next few years.” For weeks and months after the storm, there was very little action as builders and owners of destroyed or damaged homes waited for lots to be cleared, insurance companies to settle -- or not -- and new building requirements to become clear. By late April, eight months after the storm, Bay St. Louis had issued permits to replace or build “only about 14 or 15 homes,” says Donna Billingsley of the building department. The pace of repair work has been much more rapid, with a total of 2,065 permits issued, and Billingsley believes the town is about to explode with residential construction because “it’s been crazy lately” with homeowners and builders requesting information. Home-building in neighboring Waveland also got off to a slow start after Katrina, but 51 houses are now under construction with 16 more in the wings, says chief building official Otis Sharpe. “We’re blowing and going.” 'I don't think I will be able to keep up' Sharpe says he spends most of his week answering questions for homeowners and builders at the city’s makeshift complex of portable buildings at Coleman and Central avenues, helping them apply for permits and fill out other paperwork. He checks plans and blueprints on the weekends. “Soon, I don’t think I will be able to keep up,” he says. Dan McManus' home on Nicholson Avenue is among 51 houses now under construction in Waveland. County building officials also have been busy, says Lagasse, with 250 to 300 new homes started in unincorporated areas since the storm. That’s lower than the pre-Katrina average of permits for about 80
This home in Waveland is one of the few beachfront mansions rising from the ruins in Hancock County. (Jim Seida / MSNBC.com)
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new homes and mobile homes a month, but Lagasse expects recent subdivision applications to make that number shoot up. And two giant multi-housing projects also could soon be under way, one bringing more than 1,000 new apartment units to the Lakeshore area and 1,200 condominiums to Bayou Caddy. The condos, to be built near the new Silver Slipper Casino, remain on hold while opponents appeal an adverse ruling on their lawsuit. Another big player in the new housing game will be Habitat for Humanity, which plans to help up to 1,000 families in the hurricane zone build homes with its sweat-equity, interest-free-loan program. The Christian-based nonprofit is just getting started in building homes on the more than 50 lots it has acquired in Waveland and Bay St. Louis and hopes to buy a large parcel that could support up to 100 homes in Bay St. Louis, according to local Habitat director Wendy MacDonald. Expedited zoning process urged MacDonald, itching to get Habitat clients out of FEMA trailers and into new homes as soon as possible, is hoping the planning and construction process can be speeded up in Bay St. Louis through more frequent meetings of the city’s zoning board, an idea she says the city council agreed to explore last week. The current single monthly meeting means builders, including Habitat, have to plot some of their moves five to seven weeks in advance of picking up a shovel. Across the storm area, builders say the biggest challenge to moving more quickly is not government red tape. “Our problems are labor and materials,” says Don Halle, secretary-treasurer of the Home Builders Association of the Gulf Coast. “We’re looking at it right now like we’re not really into the full rebuild yet.” Halle, an owner of Gulf Construction Co. and a member of the state board of contractors, says work has really picked up for his firm in the last month or two, as owners of demolished homes have received their insurance settlements, signed up for grant money and pulled the trigger on rebuilding. Still, many people “are still taking a wait-and-see attitude, especially along the beach. They’re real unsure about what they’re going to do,” he says. Despite that, Halle’s firm, which typically builds 50 homes a year but is “quite capable of doubling that in the coming year,” is getting booked up like most other builders. “If it gets any worse from here, it’s going to take a long time to get a house built,” he says, from an average of five to six months to eight or nine. Watching over the push to rebuild in Bay St. Louis is Rhode Island architect Bill Dennis, who led the planning process there as part of Gov. Haley Barbour’s Commission on Recovery, Rebuilding and Renewal. 'Some areas could be better than ... before' With prodding from a “core group” of residents, land owners and builders to preserve the town’s pre-Katrina charm and character, Dennis said after a recent trip to town, “some of the areas could be better than they were before.” As to quickening the pace, Dennis has helped interested builders in the hurricane areas explore possibilities for manufactured housing. And he too points to issues with insurance, codes and shortages as hobbling efforts so far. He also expects many folks to wait through another storm season, which starts June 1, before fully committing to rebuilding. “You will see a lot of thing start in October, November. I would expect by next spring, you will see a lot more,” Dennis says. “I think right now people are planting bulbs and in the spring we’ll see flowers.”
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KATRINA DRIED UP RENTAL MARKET Wednesday, May 2 by Mike Stuckey WATCH VIDEO: http://risingfromruin.msnbc.com/2007/05/rentals.html (click on link) WAVELAND, Miss. -- The golden years were looking good for Theresa James, 82, mother of three, grandmother of five, great-grandmother of four, widow, last surviving child of nine and lifelong resident of the Gulf Coast. Her big house in Clermont Harbor sold, leaving her with a tidy but sufficient monthly income rolling in. She was happily at home in a $585-a-month apartment on Third Street south of downtown Bay St. Louis. There were a few ups and downs with her health and such, but she was at the peak of an artistic career, painting colorful oils of jazz funerals, shrimp boats and cotton fields. Then came Katrina. The hurricane took all of her belongings and landed her in a 150-square-foot FEMA trailer on a friend’s newly vacant lot in Waveland. Now this Toyota-driving, white-haired grand dame of the Hancock County Senior Center, sharp as a tack and sunny as an August afternoon in her native Galveston, is among tens of thousands of renters in the hurricane zone who lost their homes to the storm and whose prospects of finding new ones are generally far worse than residents who owned their homes. That’s because while billions in federal dollars are being handed out to directly help rebuild single-family homes, almost none has been made available so far to replenish rental housing in the hurricane zone. In Hancock County 20 months after the storm, not a single nail has yet been pounded to replace any of the hundreds of multi-family subsidized and market-rate rental units that were lost to the hurricane. As a result, thousands of renters remain in FEMA trailers or other temporary housing as they do elsewhere in Mississippi and Louisiana. To add insult to injury, rents are skyrocketing on the few units that have been renovated. Others, like Theresa James’ apartment, are being turned into condominiums that their former tenants have no hopes of buying. 'THE MOST POWERLESS GROUP' “Rental Katrina victims are essentially the most powerless group of all in trying to fashion a recovery,” says Reilly Morse, an attorney with Mississippi Center for Justice, which advocates for racial and economic justice along the coast. “They have to depend entirely on landowners and land developers to make something happen.” The loss was staggering. In a state where nearly 30 percent of the residents are renters, 72,116 renter-occupied units were damaged or destroyed by Katrina, according to Gov. Haley Barbour’s office.
VIDEO: Reilly Morse, of the Mississippi Center for Justice, discusses the lack of rental housing available for Hurricane Katrina survivors on the Mississippi coast.
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In Hancock County, where the pre-Katrina number of renters ranged from 20 percent in the county as a whole to more than 35 percent in Bay St. Louis, there are no precise figures on how much rental housing was lost. All 176 public housing units in Waveland and Bay St. Louis were destroyed or damaged beyond repair. Hundreds of other apartment units were knocked out of commission either permanently or temporarily. An untold number of additional rental units were among the thousands of single-family homes that were destroyed. Of the $5.5 billion in federal Community Development Block Grants that the state is handing out to spur post-Katrina rebuilding, a huge share has so far gone to homeowners. According to the state’s latest figures, $869 million was distributed to 12,413 families in a first round of grants. Another 10,000 homeowners will receive funds in a second round that will also distribute hundreds of millions. When it comes to rentals, however, just $100 million has so far been allocated from the grant pool. It is going to five public housing authorities along the Gulf Coast, including the agencies in Waveland and Bay St. Louis that have been combined since the storm. But that money, less than 2 percent of the $5.5 billion in federal grants, falls short of the $111 million in losses suffered by the housing authorities. And it will likely be many months or years before construction on replacement public housing units actually gets under way. Precise timetables were unavailable from officials with the new Waveland-Bay St. Louis Housing Authority, who said they were too busy consolidating offices to meet with reporters. PLAN TO BOLSTER RENTAL HOUSING UNVEILED In late April, Gov. Barbour announced a new plan to bolster rental housing in the hurricane zone. Some $263 million in forgivable loans would be offered to owners of rental properties with four units or less. At $30,000 a unit, the state expects 5,000 rental housing units could be built or repaired under the program, and rented to tenants who meet certain income limits. But the program has yet to win final approval and it remains unclear if and when it could start. So far, private developers have not shown much interest in building new apartment complexes. Buz Olsen, who currently oversees the Bay St. Louis building department, says no permits have yet been issued in his city, although there have been some applications filed for tax-credit programs that could eventually see about 450 units built. Again, that could be years away. In Waveland, one developer has begun site preparations for four units on Nicholson Avenue and another has gotten the green light to start work on a 100-unit complex at Waveland Avenue and Highway 90, said building official Otis Sharpe. Other than that, he has merely had “a lot of inquiries” about restoring a number of heavily damaged complexes along Waveland Avenue. No permits have been issued in unincorporated areas. “It’s all still on drawing table,” said Hancock County building official Anthony Cuevas. DEMAND FAR OUTSTRIPS SUPPLY The situation has created a rental market that’s tighter than a Waffle House lobby on Sunday morning. Thousands of renters like Theresa James – who is on a waiting list for a Catholic-operated senior apartment and a Habitat for Humanity home -- are still waiting it out in FEMA trailers, according to Olsen. Others, like welder Nathan Cranmer, 27, who grew up in Kiln and lost his $900-a-month rental home on St. Charles Street in Bay St. Louis in Katrina, bunked in shelters, trailers and with relatives while looking for affordable new digs to rent. A year after the storm, he found one place, but moved out in disgust after five months of living under a leaky roof. Just recently, he was delighted to find “a little bitty apartment” in Waveland for $700 a month.
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The shortage “concerns everyone here” Olsen said. “We are a blue-collar community as well as an upscale community. We don’t have that affordable side.” The lack of urgency and government support to restore rental housing does not surprise Morse of the Mississippi Center for Justice. “There’s an inappropriate moral attitude about renters in some circles that isn’t justified,” he said. In Gulfport and Biloxi in neighboring Harrison County, he pointed out, even when new complexes have been approved through tax-credit financing schemes, they have been blocked by not-in-my-backyard neighbors who fear that “affordable housing” will bring social problems that slash property values. “I do know that that’s a problem,” said Donna Sanford, disaster recovery director of the Mississippi Development Authority. She said the state has formed a team to work with local governments on some of the NIMBY issues. “I think we are doing a lot of things,” she said, touting grant money spent on infrastructure that could also help foster construction of new rental housing. In the meantime, Theresa James waits it out in her trailer, happy to have a roof over her head and her independence. FEMA recently extended the time period that Katrina victims can use the trailers rent-free and nobody expects tenants to be forced out of them any time soon. James does her painting at the senior center in Bay St. Louis, so studio space is not an issue. But she’s afraid to use the propane stove and there are some things that she has no room for in the trailer. “I certainly do miss my recliner,” she says.
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KATRINA: WHERE THINGS STAND Hurricane Katrina Continues to Affect Mississippi's Gulf Coast Aug. 29, 2007 It's been exactly two years since Hurricane Katrina hit the Gulf Coast, and there are many ways to measure progress -- from cold, hard stats to the anecdotal stories you hear on the ground. But there are several hopeful signs for the people who still call this area home. This year, 446,000 people live in the six lower coastal Mississippi counties worst hit by Katrina. That's just 12,000 less than before Katrina. But the signs of struggle are just as clear. The devastation is easier to see when viewing the 80 miles of coastline in ruin from the air. "We're like the hand of God that wiped the Earth clean," observed Biloxi Sun Herald publisher Ricky Matthews from the perspective of a helicopter. Katrina destroyed 70,000 homes, just 10 percent of which have been rebuilt. Seventeen thousand temporary trailers, half the number originally provided by FEMA, are still in use. Smaller towns are banding together, still needing help, but really pulling themselves up. Despite the obstacles, workers are returning. Eleven of Mississippi's 13 casinos are back, employing 18,000 people -- 1,000 more than they did pre-Katrina. And the population on the Gulf Coast is up to 98 percent of what it was two years ago. Many of the smaller, hardest hit communities still rely on volunteers to get by, and they need more doctors and nurses. In Pass Christian, Miss., hometown of "Good Morning America's" Robin Roberts, even the police and fire department still work out of temporary buildings, a reminder of how much needs to be done. But among these special Gulf Coast residents the rebuilding spirit is still here. "The most important thing we learned from Katrina was that buildings don't make a community, people do. Once you understand that, leaving was never a choice," Matthews said.
Hurricane Katrina destroyed 80 miles of Mississippi's Gulf coast. (Newscom)
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ADDITIONAL INFORMATION WEBSITES www.mississippi.gov
www.mississippi.org
www.gulfcoastnews.com
www.sunherald.com
www.mississippirenewal.com
www.southmississippi.biz
www.governorbarbour.com
http://www.iht.com/articles/2007/01/24/business/insure.php
www.governorscommission.com
www.mscoast.org
www.mswestcoast.org
www.hancockcountyms.org
www.hancockcountyms.gov
www.hancockchamber.org
www.mississippicasinos.com
APPRAISAL
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GOOD FAITH ESTIMATE
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MISSISSIPPI SMALL RENTAL ASSISTANCE PROGRAM
Available upon request.
MISSISSIPPI SMALL RENTAL ASSISTANCE APPLICATION
Available upon request.
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CONCLUSION Hurricane Katrina had a devastating impact on the state of Mississippi and specifically the Coastal Counties. Over 60,000 homes were destroyed and almost half of the rental units that existed in this area before the hurricane were completely destroyed and are now uninhabitable. Because of this, the single largest issue facing the state of Mississippi and the agencies responsible for the recovery effort is affordable workforce housing. Without affordable housing close to the major center of employment, economic growth in the area will never reach its projected potential. This point was recently raised by Brian Sanderson, president of the Gulf Coast Business Counsel to the US House of Representatives and more recently has been addressed by Laura Davis, President to the newly formed Mississippi Renaissance Corporation. The demand for skilled workers has never been greater, and their short supply is most often due to the lack of affordable housing within reasonable distance of work. Many of the over 10,000 workers who build the most advanced ships for our Navy and Coast Guard in the area have limited or no housing options in the wake of Hurricane Katrina. As late as the fall of 2006, 5,000 to 10,000 people were still living in tents, another 30,000 to 40,000 families in FEMA trailers and a total of 100,000 families were still displaced. Despite these events, revitalization is underway, homes are being built, insurance checks are beginning to flow to homeowners and as of January 2007, officials in Mississippi wrote 11,827 federal assistance checks to homeowners totaling $665 million dollars. The recovery which was slow to start is moving forward bringing with it economic opportunities for those who want to take advantage of a potentially significant growth cycle. Norada Real Estate in conjunction with its builder partners have investigated various opportunities in select areas of the Go Zone. We seek to develop value by building projects on inexpensive land in the path of growth. Since we start our construction “ahead of the curve,” the intention is to create value and equity by developing new housing in select areas. For information on how to invest in the area contact Norada Real Estate toll free: 800-611-3060.
Timing is everything with all investment opportunities. The same is true here. We feel this is a great investment opportunity for those that get involved at this stage. To gain maximum benefit from this investment opportunity we encourage those interested to lock in today. Don’t overlook the fact that Income Property owners can qualify for the ”GO Zone Incentives” including the 50% accelerated depreciation incentive that translates into a substantial tax windfall. This investor incentive can be carried back 5 years and forward 10 years.
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HOW DO I GET STARTED? Call or email us to request your Investor Purchase Pack.
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