2. Table of contents
- Meet the MG Investing Team
- Competitive Advantage
- Your Two Projected Ways of Making Money
- Why Apartments?
- Investment Strategy
- Market Strategy
- Roles
- 10-step Process
- Q & A
- Next Steps
4. Meet the MG Investing Team
Joe Fairless, Advisory Board Member
- Controls over $21,000,000 in real estate
- Includes a 168-unit apartment community in
Cincinnati and a 250-unit in Houston
- Host of popular podcast,Best Real Estate Investing
Advice Ever podcast
Maurice Graham
- Awarded Multiple National Top 10 Sales Awards with a
Fortune 100 Company
- Led Sales Teams in Georgia and South Florida on
behalf of a Fortune 100 Company
- Worked with Promove LLC who is the largest and most
prominent apartment locating service in Metro Atlanta
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6. Our Competitive Advantage Equals Unparalleled Market
Knowledge
● Worked with Promove LLC,the largest apartment service
in Metro Atlanta
● Met and toured properties with the On Site Management
teams
● Born and Raised in Atlanta,Georgia
● Placed residents personally into communities through
out Metro Atlanta
● Top Sales Agent in Sandy Springs Office and Top 10 in the
State of Georgia
● Extensive study and future projections of population and
job market growth through out Atlanta Metro in order to
ensure proper placement of residents
● Extensive resident interviews of past communities to
track the progression of particular markets inside of
Atlanta Metro
8. The two ways you are projected to make money
Preferred return
- Preferred return which will be paid out in quarterly payments
Equity in the deal
- Upside potential based on % ownership in the deal
18. Underperforming Properties with Value-Add Component
Our focus is to identify underperforming properties that have a value add-component.
It could be implementing a RUBS program, putting in professional management, investing
money into units to generate market rent, improving landscaping or any number of other
tactics.
20. Evaluation Criteria
1. Unemployment rate less than national average
2. Population of 250k or more in MSA
3. Diverse job industry
4. Recreational activites for families
5. Affordable cost of living
6. Landlord friendly laws
7. Natural resources injecting cash into economy
8. Thriving or emerging downtown
9. Trusted and experienced local team members
10. Favorable absorption and rent projections
21. 2015 METRO ATLANTA
FORTUNE 1000 HQs
Metro employment is projected to grow 2.7% in 2016 with 71,000
new workers. Construction payrolls will expand with approximately
5,000 jobs at the Atlanta Braves SunTrust Park development.
Another 5,000 workers will be added through corporate expansions
from State Farm, Mercedes-Benz, Kaiser Permanente, Stefanini and
Sage Group over the next several years. The aggressive hiring will
push down vacancy 50 basis points this year.
22. Atlanta Rental Vacancy Rate
The rental vacancy rate in Atlanta
peaked in 2009 at 13.96%. Since
then it has fallen by 4.74% to
9.22%.Asking rents are expected
to rise 4.7% to $1,090 per month.
The favorable conditions will
continue to attract investors in
2016.
23. New Construction
1125 Peachtree, a 50 story mixed-
use tower being built as part of the
12th & Midtown development, just
north of the Lowes Hotel.
Mercedes-Benz Stadium is the name of an
under-construction retractable-roof, multi-
purpose stadium in Atlanta, Georgia, that will
serve as the home of the Atlanta Falcons of
the National Football League and Atlanta
United FC of Major League Soccer.
99 14th St is a dynamic development
with towers of 60 floors, 57 floors, and a
39 floor tower. There will be90,000 sf of
retail along 14th street and on two other
levels.
27. Questions + answers
Who owns the property?
Our LLC will own the property. You will have XX% ownership and I will have XX% ownership of
the LLC.
Who manages the property?
I will oversee a property professional management company.
What happens if the project fails?
While I don’t anticipate any failures I can’t guarantee success. There’s risk involved with any
business including real estate. So, if there is a failure, we’ll sell the property and get what we
can. This will be outlined in our operating agreement.
Where will the roles and responsibilities be listed?
The roles and responsibilities will be listed out in detail in the LLC agreement.
28. Questions + answers
Am I guaranteeing a specific return on your investment?
By law, I can’t guarantee any type of return. The next best thing I can give you is what’s called
a “preferred” return. A preferred return is a promise to pay you, the investor, first before any
money comes to me. Paying you is my first priority. If there is nothing to be had for me after I
pay you, then so be it. And that’s all stated in the paperwork you’ll be reviewing and signing.
What happens if I can’t make the quarterly cash flow payment as planned? Will I get
paid double next time?
I don’t anticipate that happening, but if it does, I will do my best to catch up. And if I can’t,
then the money owed will be accrued and paid later, the latest being when the property is
sold. Our accountant will keep track until the very end.
If you are the owner in the property, are you also entitled to tax benefits?
Since you are what the IRS calls a “passive investor”, you do not qualify for tax write-offs
directly from the property. And since every one of my investors are in different categories tax-
wise, I suggest you get tax advice from a tax professional.
