Asia Bankers Club July 2012

International Survey Why Invest in Florida ? Key Locations Vacation Rental v Residential Rental Associated Costs Asset Protection Tax Consequences

Established 1993 Central Florida (Orlando) Based One Stop Shop Purchase & Sale Mortgage Financing Property Management Tax Services / Accounting Asset Protection

Chris Wilson
Mortgage Specialist (Foreign Nationals) Real Estate Agent Property Manager Community Association Manager Accountant

Richard Butler
Real Estate Broker Real Estate Speaker Asset Management Specialist Property Manager Community Association Manager

Foreign Buyers

$12.7 Billion

Total USA Florida

$41 Billion

Total Florida Sales

$12.7 Billion (25%)

Total Florida Foreign Buyers

$48.8 Billion

25% of all sales are to Foreign Buyers Nearly all sales are cash transactions Foreign buyers purchase high end homes Median price - $174,700 (resident median - $136,500) Florida seen as being on sale ! Total US home sales declined 31% 2005 to 2010 Prices declined 21% in same period Florida sales declined 31% 2005 to 2010 Florida prices declined 42% in same period

Property Type
4%

Detached Single Family

39%

Townhouse Condo

49%

Other
8%

Attractive Destination Desirable Vacation Location Central Florida Attractions / Golf / Watersports Profitable Investment Secure Investment Favorable Exchange Rates Good Rental Demand Good Infrastructure

Market Area
Miami / Fort Lauderdale
23% 31%

Orlando / Daytona Tampa / St Pete

18% 17% 11%

Cape Coral / Naples

Other

Vacation or Residential Rental Use Does Owner Wish to Stay in Property ? Property Zoning Rental Restrictions Location Property Management

Central Florida Attractions Area Some Beach Resorts Mainly Single Family Pool Homes Golf Course Locations Furnished Homes Property Management + Bookings European Season (Apr Oct) Domestic Season (Nov Apr) Inconsistent, but Higher Rental Rates

7 or 12 Month Leases Maximum Demand low end homes Condos or Single Family Homes Consistent Monthly Income Unfurnished Homes Booming Current Demand

Condo :
Higher Association Fees No Exterior Maintenance Assessments Lower Rental Demand Beach Resorts Higher Insurance Costs Type of Ownership Lifestyle Choice Covenants, Conditions & Restrictions

Single Family Home

Lower Association Fees (sometimes no fees) Greater Maintenance Fees Fewer (if any) Assessments Higher Rental Demand Golf Resorts / Urban Fee Simple Ownership Private Pools

Fewer Restictions

Luxury
Higher Capital Appreciation Higher Property Taxes / Insurance Higher Running Costs Much Lower Rental Demand Lower ROI (Rental Use) Larger Properties Superior Locations

 Miami Beach Location 750 ft of Oceanfront Beach State-of-the-Art Spa Facility Beauty Salon Fitness Center Health & Healing Center 4 Pools Concierge Services

$360,000 (1/1 950 sf) - $3.35 m ( 3/3 2670 sf)

Disney Connection Walt Disney World Resort resident Services Family Resort Living Private Clubhouse Four Seasons Resort (Opens 2014) Four Neighborhoods Prices start at $1.5m

Median Priced
Lower Capital Appreciation Lower Property Taxes / Insurance Lower Running Costs Very High Rental Demand Higher ROI (Rental Use) Average Size Properties Fewer Upscale Locations

Purchase
Legal Costs / Title Insurance Prepaid Expenses Recording Fees Association Fees Total 2-3% of purchase price

Sale
Legal Costs / Title Insurance Realtor Commission Recording Fees Transfer Taxes Total 7-10% of sales price Capital Gains Tax

Ongoing Running Costs

Property Taxes Insurance Association Fees Maintenance Property Management Leasing Fees Utilities (vacation home only)

Pool & Yard service (vacation home only)

Purchase in Entity (LLC) Deed Property into Land Trust Privacy (Remove Name From Public Records) Probate Protection (Establish US Will) Avoid Law Suits (Hide Assets) Trustee, Director & Beneficiary are Defined

No Double Taxation Establish US Business / Tax Return (if renting) Be Actively Involved Full Write Offs 10-20% Capital Gains (Long Term) - 2013

Please note that we are not providing professional tax advice and that each individual should seek competent Legal council.

Flipping Properties Buying & Selling with Owner Finance Commercial Hard Money Loans FLORIDA IS ON SALE !!

Thank You
Available for Private Consultation