Zero Money Down Condo Investments


	Developer Projects 1090% 5 Year Return on Investment

Please note that developer has provided these figures. These figures - particularly asset appreciation - are not a guarantee of future financial performance. There are no guarantees for Investment in real estate and all investments entail a degree of risk. All buyers are encouraged to perform their due diligence prior to making an investment decision. Total Cash Out of Pocket to Buy: $23,500 Positive Cash Flow: $51,510 (including depreciation) Asset Appreciation: $ 204,746 (based on an assumed 7.5% annual appreciation) Total Projected 5 Year Return: $ 51,510 + $204,746 = $256,256 Return on Investment = $256,256 /$23,500 = 1,090%* This ROI is based on a number of assumptions and is not a guaranteed result. The area’s appreciation has been 10% to 15% annually for three straight years but there is no guarantee that it will continue at this rate for the next five years
These ROI computations are based on a number of assumptions and are not a guaranteed result. The area’s appreciation has been 10% to 15% annually for three straight years but there is no guarantee that it will continue at this rate for the next five years RENTAL PROGRAM • Resort Cabin Owner share is 60% • Property Management share is 40% Complete HASSLE FREE OWNERSHIP!!!!! Cabin Expenses HOA: $100/mo. (includes cable & water) Will be $150 - $200/month upon completion of Pool and Gas Lighting. Gas: $75/Mo. Grill, Heat, Fireplace, Water Heater - Electric: $75/Mo. Taxes: $1,500/yr. Insurance: $1,500/yr. Misc. Maintenance: $1,000/yr. Occupancy & Rental Projections Year 1: 70% to 78% Target Occupancy (Guaranteed leaseback year) Year 2 to 5: 78% to 84% Target Occupancy 60% Actual Occupancy Rate for the Resort in February 2007 (One of the slowest months of the year) INVESTOR INCENTIVES Builder pays all Closing Costs Construction Interests Paid By Builder $0 Carrying Costs During Construction Turn-Key Rent Ready Cabins Including: Luxury Furnishings & Accessories High-End TV’s & Electronics Gas Grill Hot Tub Billiards Pool Table Arcade Style Video Games 1st Year Developer Lease-Back Guarantee & Much More Total out of pocket $’s to purchase a log cabin is only 5% of Sales Price. Built in equity is approximately 5% of Sales Price. Planned price increases in each subsequent phase of the development. Build Time is 3 to 4 months (no out of pocket $’s during this time). 1st Year Lease Back by Builder figured at 70% occupancy and designed for investor to break even from a cash flow standpoint. Average Annual Occupancy Levels above 85% are a real possibility once building the resort is complete. That means there is significant upside positive cash flow potential. After 1st Year your log cabin is in the rental program and fully managed for you. You get 60% of the gross income and the management company gets 40%. It is a truly passive investment. Strong appreciation for the area means there is lots of upside equity potential for the log cabins in this resort. Developer Lease Back Example Example - Montana (2 Bedroom) • Target Gross Revenue Year 1 (at 70% Occupancy): $63,500 • Target Net Revenue Year 1 after Management Fees: $38,100 • Target Monthly Expenses: $3,103 (HOA, Utilities, Taxes, Insurance, Maintenance, Mortgage Interest) • Monthly Lease Back Paid By Developer ($38,100 / 12) $3,175 • Target Cash Flow Per Month (at 70% Occupancy): $72 STEPS: 1. Customer Closes on Construction 2. NO Customer Expenses during construction 3. Cabin Completed – First Quarterly Payment of $9,525 ($3,175 x 3) Paid to Customer. Leaseback calculated at 70% Occupancy. 4. Subsequent $9,525 payments made each quarter for 3 quarters. Pricing includes: Turn Key Rent Ready Cabin. Luxury Furniture & Accessories, Gas Grill, Hot Tub, Pool Table, Stand Up Video Game, Linens, TV’s & Electronics. Setup to be a PASSIVE, HASSLE FREE Investment Resort Amenities Putt Putt Golf Onsite Management & Check In Day Spa Restaurant & Convention Center Wedding Chapel with Mountain Views Indoor Pool Pool Amenities The New Orlando? Gatlinburg Gateway to Smoky Mountain National Park Popular Walking Malls, Key West with Flannel Shirts Mountain town with over 400 shops, live entertainment, dining Pigeon Forge & Sevierville 10 Mile Strip called the Parkway – the new “International Drive” Outlet Malls, Go-Kart tracks, Mini Golf, Dollywood, Themed Shopping Vegas-Style Family and Religious Oriented Dinner Shows & Theaters (Dixie Stampede, Miracle, others). Sevier County is within a days drive of 50% of the US population. Major Tourist Attractions Great Smoky Mountains National Park 9 Million visitors / year, spend over $652 Million in the surrounding areas Most of which arrive through Sevier County #1 Attraction in Tennessee Dollywood (Dolly Parton’s Entertainment Mega-Plex) 2.4 Million visitors / year #2 Attraction in Tennessee Ripley’s Aquarium of the Smoky Mountains 2 Million visitors / year Most visited aquarium in the U.S. Outlet Malls 4 Complexes with a total of 1,141,030 sq. ft. of shopping Weddings are Big Business More weddings than Las Vegas! Visitor Statistics Over 13 Million visitors per year, many returning 2 to 4 times per year 50% of visitors travel up to 500 miles 33% of visitors stay between 4 and 7 nights The average couple spends $1,800 per trip ~ $1.2 Billion in Travel Expenditures in 2005


	Smoky Mountains Area

9 million visitors a year spend over $650 million in the surrounding areas of Gatlinburg The Great Smoky Mountains are the number 1 attraction in Tennessee and are the number 1 visited park in the U.S. The Great Smoky Mountains national park is a hiker's paradise with 800 miles of trails, along with car camping, fishing, picnicking, wild life viewing and auto touring are just some of the activities available. With over 1600 bears, most people come to the mountains hoping to see a bear in the wild. Onsite Management Dedicated Onsite Management Setup to be a “Passive” Investment Management Company Provides: Advertising, bookings, distribution of keys, customer billings Supervision of cleaning, maintenance and general inspections Linens and towels and the laundry and cleaning service Disposable items such as bath soap, dish soap, dishwasher detergent, paper towels, toilet paper, light bulbs and trash bags Garbage disposal & pest control Cleaning and chemical maintenance of hot tubs Coordinate annual and seasonal maintenance Monthly statements and payments 40% of Rental Income for Management Fees (Standard for Industry) Most Resorts DO NOT have onsite management