STEP 1 -
IDENTIFY THE OPPORTUNITY
BILOXI AND THE MISSISSIPPI GULF COAST POWER COMPANY ESTIMATES that the
...This is America’s new hot housing Mississippi Gulf Coast area will need
area...here’s why. 80,000 new affordable housing units in
the next three years.
HURRICANE KATRINA devastated the
entire Mississippi Gulf Coast...destroying
“Yet amid primitive living conditions, promising
over 64,000 homes and 47,000 rental
signs of Mississippi’s comeback are emerging.
properties. The need for new construction is
Federal money to help homeowners rebuild is
critical.
pouring in, bridges are being replaced and hotel
casinos reopened. Schools are ready for children to
Affordable Houses Address Gulf Needs
return.”
January 16, 2006 — Since Katrina’s surge...
-USA TODAY, June 25, 2006
wiped out whole neighborhoods in...Gulfport and
Biloxi...the charette participants recognized two
FEDERAL “GULF OPPORTUNITY ZONE”
urgent needs...fast, affordable replacement shelter...
INCENTIVES...can give you accelerated
and a way to reconnect with their town’s distinct
d e p r e c i a t i o n and s u b s t a n t i a l t a x
character.”
advantages on your investment in new home
- Mississippi Renewal Forum
construction. In fact, you may be able to
deduct 50% of the cost of the building
FEMA PROGRAMS ARE ENDING...evicting
from your tax liability in the first year!
over 30,000 families from temporary trailers
where they have been living since the YOU HAVE SEVERAL EXCELLENT OPPORTUNITIES
hurricane disaster. to invest in the growth of this region.
Affordable housing may be a prudent,
GROWTH AT STENNIS SPACE CENTER.
well-considered way to capitalize on the
This major NASA facility now employs 4,500
recovery of this important area...and help
people, and is expected to double by the
people who are desperate to rebuild their
year 2010. It is located right next to Bayside
lives. The area is even more attractive when
Park.
you consider the enormous investment now
MORE THAN 101,000 Mississippians still being made by the resort and entertainment
live in government trailers, and over 40,000 industry. Please consult with your tax advisor
families live in temporary housing with to understand if this type of program meets
family or friends. your investment needs.
THE CASINO INDUSTRY
It’s the key to new growth and prosperity
along the Mississippi Gulf Coast. The extensive
rebuilding after Hurricane Katrina has “Biloxi’s casinos reported March 19, $86.2 million
encouraged the growth of this important in gross gaming revenue in February, the largest
economic asset. February in city’s gaming history, according to
LARGE SCALE CASINO EXPANSION is now figures released by the mayor’s office.”
taking place. After Katrina, laws were -Gulf Coast News - May 19, 2007
changed allowing casinos to
be built on dry land instead of “Harrah’s Entertainment and
barges. Currently 11 casinos world-renowned singer-songwriter
are open and operating in Jimmy Buffett unveil plans for
Biloxi, Gulfport, and along the Margaritaville Casino & Resort, a
Gulf Coast, with 7 more either $700-million-plus investment that
under construction or proposed. The represents the single largest investment in
casinos employ thousands of people who Mississippi since Hurricane Katrina.”
will need affordable housing. Currently - Gulf Coast News - May 19, 2007
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.
Casino locations 15 18
Present and future 10 49 6 9
8
Existing Casinos Planned Casinos 13
D’Iberville 7
10
Gulfport 12 Biloxi 14 1 5 11
15 17
Long Beach
St Louis Bay 90
3
16
4 White Harbor
Pass Christian
43
90
Henderson Point
Bay St Louis
Gulf of Mexico
2
Bayside Park
(For more information on the revival of the post-Katrina casino industry, visit
www.gulfcoastnews.com and click on “Current Casino Plans”)
1 BEAU RIVAGE RESORT & CASINO - 14 BROADWATER - $1 billion project
opened August 2006 under design including casino, golf
2 SILVER SLIPPER - opened course, 3,375 condominiums, 1,900
November 2006 hotel rooms
3 ISLAND VIEW - opened August 2006 15 HARRAH’S - acquisition of old Casino
Magic Resort
4 HOLLYWOOD CASINO - opened
August 2006 16 COPA CASINO - Owners have purchased
site and remaining assets of Grand
5 BILOXI GRAND - opened August 2006 Casino Gulfport and intend to build a
6 IP CASINO RESORT AND SPA - new, larger facility
opened December 2005 17 MARGARITAVILLE CASINO & RESORT -
7 ISLE OF CAPRI - opened Singer Jimmy Buffet will make a $700
December 2005 million investment in a new resort on
Casino Row, now under construction
8 PALACE CASINO RESORT - opened next to the Hard Rock.
December 2005
18 BAYVIEW CASINO RESORT - Under
9 BOOMTOWN CASINO - opened design, to be located next to
June 2006 Boomtown on the Back Bay. Resort to
10 TREASURE BAY - opened summer 2007 include 55,000 square feet of gaming
11 HARD ROCK HOTEL AND CASINO - space and a 500-room hotel.
opened July 2007 PLUS - several casinos listed above are
12 ROYAL D’IBERVILLE CASINO expanding their facilities to include
AND HOTEL - approved for convention space, ballrooms, and other
construction facilities.
13 BACARAN BAY CASINO RESORT - THOUSANDS OF PEOPLE will be working at
$500 million project scheduled these hotels, and other tourist attractions.
for Fall 2008 They have to live somewhere...and they
have to be able to afford their homes!
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 • Keesler Air Force Base provides over
area of Biloxi, and near four of the new or $1.2 billion in economic impact per
proposed casinos year in our area
...9,000 military retirees live within 50 miles
• 45-minute drive from rapidly-rebuilding
...7,900 military and civilian personnel live
New Orleans
off the base
• Perfect area for service personnel working ...almost 86,000 military/civilian employees
in the tourist/casino industry...I-10 creates and families live in the surrounding areas
an easy commute
“Officials have approved ambitious plans for a
• Excellent housing opportunities for
live-work complex along the Jourdan River, signaling
families who don’t want to live in the
continued recovery from Hurricane Katrina and
center of the casino activity.
the largest multistory residential development in
• River Walk project approved in nearby city history.”
Bay St. Louis - 1,650 riverfront residential -Bay St. Louis SunHerald, April 10, 2007
units and commercial shopping area...
investor confidence is high. • In the works: a casino, hotel, and marina
• Casinos and nearby military base form a complex on the west side of St. Louis
strong economic base for growth and Bay, a short way from Bayside Park
expansion. • Government-approved architectural
patterns available for the construction of
affordable new homes in the area
STEP 2 -
Build What the Market Demands
HOW DO WE KNOW
what type of housing this devastated area
needs and wants? We’re following the
guidelines of the Mississippi Renewal
Forum.Their “Pattern Book for Gulf Coast
Neighborhoods” specifies the exact
architectural styles, sizes, and character
of all new housing in the area. More
importantly, as your home will be built in
a GO Zone, you will qualify for significant
tax advantages and possible other
government subsidies.
The Jasmine is one of several styles we
will develop in Hancock County’s Bayside
Park. A short drive from the casinos and
hotels of Biloxi and Gulfport, this county Square Footage
is likely to become a major center of Living Space 1,320 sq. ft.
affordable housing for workers in the Porch 137
tourist industry. Total Under Roof 1,457 sq. ft.
Blue Oak Construction, LLC
Bayside Park Jasmine Home Features @ $125,900
Updated 12/19/07
General Construction Electrical Items
• Permitting and Impact Fees* • 200 AMP service at meter
• Monolithic slab on grade** • Electric as per code
• Builder’s Risk insurance • Pre-wired for 2 phone jacks and
2 cable outlets per plan
Surveys and Lot Preparation
• Boundary stakes
OUR • Smoke detectors by code
• Foundation and final DEVELOPER’S • Exterior receptacles per plan
• Bathroom exhaust fans vented
Structural and Construction HOME IS A to outside
• All recessed can fixtures as per plan
Features and Materials
• Concrete footings
BETTER HOME. • Ceiling fan prewire per plan
• Steel reinforcement for footings
as per engineering
HERE’S WHY! • Light fixtures by Builder
• 30 year mildew resistant Plumbing
• Site Clear, Hauling, and Fill • Schedule 40 PVC drain, waste & vents
Allowance up to $4,500*** dimensional roof shingles
• 15 Seer high efficiency • 40 gallon quick recovery water heater
• Termite treatment
air conditioning unit • Exterior hose bib(s) per plan
• Wood framing
• All ceilings and walls knock • Elongated water closets in all
• Tie-down straps (wind load) down drywall finish bathrooms (white) by Builder
per engineered drawings
• Up to 450 sq. ft. allowance for • Fiberglass tub and/or shower
• Pre-engineered roof trusses units per plan by Builder
concrete driveway and walk***
• Ridge vent for roof • Moen Chateau fixtures in
• All appliances are manufactured
• Oversized galvanized by General Electric and are chrome throughout by Builder
metal flashing Energy Star rated • 50/50 kitchen sink with Moen faucet
• Framing lumber culled • Wood grain kitchen/bathroom
and crowned for straightness Bathroom Features
cabinets with solid surface • Decorator type vanities with
• R-30 blown insulation in ceiling countertops from Builder full sized mirrors
• R-13 insulation on exterior supplied choices
• Mirrored medicine cabinets
framed walls • High grade paint in flat finish,
• R-19 insulation in knee walls high grade 35 year silicone caulk, Floor Coverings
• 1/2”” drywall on all ceilings and interior trim in semi-gloss enamel • All living areas to be tiled from
walls (screwed) • 4,000 sq. ft. of sod with choices supplied by Builder
• Stucco and/or cement board initial fertilization*** • Bedrooms and closets to be carpeted
exterior walls with decorative from choices supplied by Builder
• Window coverings by Builder
shutters and/or brick facing Additional Features of Your Home
• Vented white aluminum or vinyl • Metal Insulated Entry doors
soffit and fascia • Deadbolt locks on all exterior doors
• Culvert pipe and installation as required • White single hung aluminum or vinyl windows throughout
Water System • 2-1/4” colonial casing and 3-1/4”
• Complete well water system and connection to sewer colonial base, mitered cut base trim
• 6-panel 6’8” interior doors
Kitchen Components and Cabinetry • Landscaping package by Builder
• 21 cubic ft. refrigerator with icemaker, range, • Attic access
dishwasher, garbage disposal, and range hood
• Front porch under truss with concrete floor
• Ventilated closet shelving by Builder
• Mailbox and house numbers by Builder
• Storage Shed
Blue Oak Construction, LLC reserves the right to
substitute materials of similar value. Features are All pricing includes a 5,000 sq. ft. standard lot in
subject to change without notice. Bayside Park.
* Permit and Impact Fees are calculated at rates provided as of 12/1/07. 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.
STEP 3 -
PROVIDE OUR CLIENTS WITH
“LESS STRESS” FINANCING
Well before we begin to develop an area of opportunity, we investigate all sources of
financing for our investors. Interviewing and evaluating many mortgage companies, we
compile a list of those lenders who offer the best rates and most attractive terms.
Here is a sample of a typical funding formula. Of course, your numbers will be
different, based on the price of your investment home, down payment, credit scores, and
other factors.
Pre-Construction Home Pricing
Jasmine
Bayside Park, Mississippi
$125,900 FOR HOUSE/LOT TURN-KEY
Current Appraisal Price = $152,000
Total Cash Required $16,800 to $21,600
(depends on financing option chosen and credit score)
$4,500 Initial builder and lot deposit
$ 495 Loan application (approximate)
The developer will contribute $3,750 toward closing costs.
Our developer’s homes are so well constructed that they qualify for a reduction
in windstorm insurance premiums of up to 55%. This reduction in premium can
amount to a yearly savings of up to $1,000.
“Go Z
Estimated Cash Flows 1st yeaone”
deduc r tax
Jasmine to
$58,0i0 n of
Bayside Park, Mississippi
0
Rental Income $14,700
Mortgage Payment ($8,760)
Property Management Fee ($1,470)
Real Estate Taxes ($1,200)
Insurance ($1,800)
Projected Annual Cash Flow $1,470
The estimated GO Zone net cash benefit in Year 1 (50% special accelerated
deprecation) assuming $116,000 home value, $58,000 in deprecation, and a
35% tax bracket is $20,300!!! 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.
Our developer will contribute $3,750 toward closing costs.
Our recommended strategy is that you hold the property for 3 - 5 years to best
take advantage of appreciation.
We are in a market with rapidly changing interest rates. A steady rise in interest
rates could alter your cash flow to a larger negative cash flow. As with any large
purchase, it is highly recommended that you perform your own due diligence.
The above 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.
Insurance amounts will vary based on your credit score and other factors. To obtain an accurate insurance quote, please
contact an insurance provider. Our research has found that the best rates can be obtained from Mattina Insurance Company
(228-832-1100).
STEP 4 -
MONITOR THE PROCESS
AND EXIT STRATEGY
As part of our commitment to you, we provide
customer service, communication, and feedback
throughout the real estate investment process. To
further streamline this, we’ve custom designed a
web site where you can check the progress of your
property 24 hours a day. We want you to be able
to have all the information you need when you
need it.
We will also provide you with a Customer Handbook
outlining contact information, an explanation of the
stages of construction, our exit
strategy procedures, a guide to
using our website, and FAQ’s.
Our current recommendation
for your real estate purchase in
Mississippi is to hold the
property for at least three
years. We will facilitate this
process for you by interviewing
several property management companies in the
Mississippi Gulf Coast area and provide you with
some recommendations prior to the completion of
your home. Please note, however, that you are free
to choose any property management company
All houses in Mississippi will be built with wood frame construction,
you wish. not concrete block.
Given that you will sell your property at some future date, we will also interview several
real estate companies in the area and provide you with recommendations. As with
the property management firms we will recommend, please note that you are free to
choose any real estate office you wish.
To maximize the opportunity for a favorable www.mississippi.gov
outcome of your investment, we have www.mississippi.org
conducted extensive research into the www.gulfcoastnews.com
affordable housing market in the Biloxi and www.sunherald.com
Mississippi Gulf Coast region. www.mississippirenewal.com
www.southmississippi.biz
However, there is no substitute for doing
www.governorbarbour.com
your own due diligence. The more you know,
the more wisely you will invest. We strongly http://www.iht.com/articles/
urge you to verify the information we present 2007/01/24/business/insure.php
by visiting independent third-party sources. www.governorscommission.com
Fortunately, the reconstruction efforts in this www.mscoast.org
area are so extensive, and the investment www.mswestcoast.org
environment so vast, that there is a wealth www.hancockcountyms.org
of information for you to access. We www.hancockcountyms.gov
recommend that you visit some or all of the www.hancockchamber.org
following web sites to acquire a better www.mississippicasinos.com
understanding of the opportunities we offer.
Also see any of the web sites for individual
casinos in the Biloxi-Gulfport area. We wish
you the best success with your real estate
investment program.
Insurance amounts will vary based on your credit score and other factors. To obtain an accurate insurance quote, please
contact an insurance provider. Our research has found that the best rates can be obtained from Mattina Insurance Company
(228-832-1100).