BILOXI, MISSISSIPI IS AN EMERGING GROWTH AREA

Biloxi MI was one of the best performing cities in the country in 2006 with Biloxi logging its highest appreciation rate since the OFHEO price index was created for the area with a 12 month price increase of 15.7%

CNN Money categorized Biloxi a bust free market.

Biloxi and the Mississippi Gulf Coast is currently a growth area for housing

Hurricane Katrina devastated the entire Mississippi Gulf Coast, destroying over 65,000 homes and 47,000 rental properties.

The need for affordable and habitable housing is critical.

Affordable Houses Address Gulf Needs
January 16, 2006 - Since Katrina's surge...wiped out whole neighborhoods in...Gulfport and Biloxi...the charette participants recognized two urgent needs...fast, affordable replacement shelter...and a way to reconnect with their town's distinct character."
- Mississippi Renewal Forum

Rental Market
- 80,000 people are still living in 23,000 FEMA trailers on the Mississippi Gulf Coast
- 30% of Mississippi residents are renters
- Current Rental rates for single family homes range from $1,000 to $1,300 per month

Mississippi Economy
- Economy finally starting to recover after Katrina
- As of late 2006, 5,000 to 10,000 living in tents, 30k-40k in trailers, 100,000 families displaced
- Gross state product and employment have surpassed pre-Katrina levels
- Reconstruction boom anticipated for the next 5 years


The need for affordable and habitable housing is critical & the Govt has made $260 million available to encourage investors

FEMA programs are ending... evicting over 30,000 families from temporary trailers where they have been living since the hurricane disaster.

GOVERNMENT ASSISTANCE can help builders and investors develop new properties. Currently over $260 million is available to encourage the construction of affordable rental housing.

MORE THAN 101,000 Mississippians still live in government trailers, and over 40,000
families live in temporary housing with family or friends.



"Yet amid primitive living conditions, promising signs of Mississippi's comeback are emerging. Federal money to help homeowners rebuild is pouring in, bridges are being replaced and hotel casinos reopened. Schools are ready for children to return."
-USA TODAY, June 25, 2006



Estimated Cash Flows - Bayside Park, Mississippi

Rental Income $15,000
Mortgage Payments (I/O, 7.50%) ($ 9,577)
Property Management Fee (10%) ($ 1,500)
Real Estate Taxes ($ 1,200)
Insurance ($ 2,400)
Cash Flow $ 323

Cash Flows
Bayside Park, Mississippi $135,880 FOR HOUSE/LOT TURN-KEY

Current Appraisal Price = $161,000

Reservation: $4,500
Down Payment at Contract : $8,500 (due in approx 30 days)
$13,000 Total Cash Required

Builder will contribute $2,000 toward interest payments during construction,
and up to $2,600 toward closing costs.50% forecasted appreciation over the next 5 years for Biloxi/Gulfport by Forbes

GO Zone Depreciation Benefit

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!!!

Please consult your accountant to make sure you can qualify for go zone depreciation credits as everyone's tax situation is unique. The governmental rental credit has to be applied for and approval is required.

Investment Cash Flow

Our recommended strategy is to hold this property for 3-5 years to get the benefits of full community development and accompanying potential appreciation.

The above analysis is not a guarantee of your results. Your returns could be higher, lower, or you could lose money. The length of time to build your house can vary depending on weather, city inspections, etc. Interest rates can go up or down affecting the type of loan you have. Rents could be higher or lower. Appreciation could be greater or prices could be lower. Your application for rental credit may not be approved. This forecast is based on reasonable assumptions and is not to be considered a guarantee or assurance of any kind that the scenario above will transpire.

Casinos driving a rebirth of the once ravaged region

The extensive rebuilding after Hurricane Katrina has encouraged the growth of this important economic asset. LARGE-SCALE CASINO EXPANSION is now taking place. After Katrina, laws were changed allowing casinos to be built on dry land instead of barges. Currently 8 casinos are open in Biloxi, with 4 under construction... and 8 more are proposed.

Casinos are also open and operating in Hancock County, Bay St. Louis, and Gulfport. The casinos employ thousands of people - on average 2200 per casino - who will need affordable housing.

Casino industry expected to require 40,000 employees, 12 Casinos within 30 miles, will be 3rd largest casino industry in the U.S.
- Tourism expanding due to Baby Boomers and Casinos
- Defense industry infrastructure repaired and growing, significant military presence in the area
- Long term outlook is promising, but some challenges remain
- Rental absorption far exceeds inventory
- Large employers in the area include Northrup Grumman, Chevron, Dupont, Triton Systems, GE Plastics

NASA adding a research facility, shipyard coming in with several thousand jobs

1 BEAU RIVAGE RESORT & CASINO - opened August 2006
2 SILVER SLIPPER - opened November 2006
3 ISLAND VIEW - opened August 2006
4 HOLLYWOOD CASINO - opened August 2006
5 BILOXI GRAND - opened August 2006
6 IP CASINO RESORT AND SPA - opened December 2005
7 ISLE OF CAPRI - opened December 2005
8 PALACE CASINO RESORT - opened December 2005
9 BOOMTOWN CASINO - opened June 2006
10 TREASURE BAY - opens summer 2007
11 HARD ROCK HOTEL AND CASINO - scheduled to open July 2007
12 ROYAL D’IBERVILLE CASINO AND HOTEL - approved for construction
13 BACARAN BAY CASINO RESORT - $500 million project scheduled for Fall 2008
14 BROADWATER - $1 billion project including casino, golf course, 3,375 condominiums, 1,900 hotel rooms
15 Harrah’s - acquisition of old Casino Magic Resort
16 Proposed - Casino Resort & golf course
17 Proposed - Casino Condo/Hotel & Marina
PLUS - several casinos listed above are expanding their facilities to include convention space, ballrooms, and other facilities.

THOUSANDS OF PEOPLE will be working at these hotels, and other tourist attractions. They have to live somewhere...and they have to be able to afford their homes!

Currently the shortage of such housing is acute.  This translates into a great opportunity for those who understand the future housing and property market of the Biloxi area.

"Biloxi's casinos reported March 19, $86.2 million in gross gaming revenue in February, the largest February in city's gaming history, according to figures released by the mayor's office."
-Gulf Coast News - May 19, 2007

"Harrah's Entertainment and world-renowned singer-songwriter Jimmy Buffett unveil plans for Margaritaville Casino & Resort, a $700-million-plus investment that represents the single largest investment in Mississippi since Hurricane Katrina."
- Gulf Coast News - May 19, 2007

(For more information on the revival of the post-Katrina casino industry, visit
www.gulfcoastnews.com and click on "Current Casino Plans")

Our Gulf Coast Target Area: Bayside Park in Hancock County

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

· Perfect area for service personnel working in the tourist/casino industry...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
...9,000 military retirees live within 50 miles
...7,900 military and civilian personnel live

off the base ...almost 86,000 military/civilian employees and families live in the surrounding areas

"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 SunHerald, April 10, 2007

· In the works: a casino, hotel, and marina complex on the west side of St. Louis Bay, a short way from Bayside Park

· Government-approved architectural patterns available for the construction of
affordable new homes in the area

• We Offer Go Zone Turnkey Investment Programs With Lease Option Tenants that Want to Buy The Home From You

• 1st year 50% bonus depreciation tax benefit translates to zero cost of ownership plus significant cash back

• Rental market demand far exceeds supply

• 50,000 displaced renters after Katrina, their credit is weak, by assisting renters in repairing their credit, you give back to the community and help renters become homeowners

• Growing Casino Industry - 15 new Casinos in permitting

• Immediate Equity - Homes appraising 15-20% above purchase price

• Growing economy, manufacturing, military, gaming, construction

• Roll Closing Costs into the loan amount, Low Money Down

• Hurricane Katrina destroyed over 55,000 homes. 46,000 of those were rental properties. 12,000 have been rebuilt or are in permitting stage.

• Rental Market
  - 80,000 people are still living in 23,000 FEMA trailers on the Mississippi Gulf Coast
  - 30% of Mississippi residents are renters
  - Current Rental rates for single family homes range from $1,000 to $1,300 per month

• Mississippi Economy
  - Economy finally starting to recover after Katrina
  - As of late 2006, 5,000 to 10,000 living in tents, 30k-40k in trailers, 100,000 families displaced
  - Gross state product and employment have surpassed pre-Katrina levels
  - Reconstruction boom anticipated for the next 5 years
  

• Casino industry expected to require 40,000 employees, 12 Casinos within 30 miles, will be 3rd largest casino industry in the U.S.
  - Tourism expanding due to Baby Boomers and Casinos
  - Defense industry infrastructure repaired and growing, significant military presence in the area
  - Long term outlook is promising, but some challenges remain
  - Rental absorption far exceeds inventory
  - Large employers in the area include Northrup Grumman, Chevron, Dupont, Triton Systems, GE Plastics
  

• NASA adding a research facility, shipyard coming in with several thousand jobs

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Next: Biloxi Gulfport Casino Revenues - Click Here

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Go Zone Investments Real Estate Click Here

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Click for Biloxi Mississippi Go Zone Industry & Market Review

Current Rental Shortage in Mississippi
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