ARE Investments Brief

www.AmericanRealEstateInvestments.com [email protected]

American Real Estate Investments is your direct

source to some of the best real estate investments in the world. We buy distressed properties from several

sources: tax sales, courthouse steps, foreclosure sales, reo agents, asset

managers, private sellers and the multiple listing service. Once we acquire

the properties our workmen complete a full renovation. We install new

paint, trim, flooring, updated kitchens and baths, new pex plumbing,

HVAC and water tanks brand new or less than 5 years old with certification of good working order. Roofs and

drain lines replaced new as needed, updated electrical with new wiring and fixtures throughout. We renovate our

properties to the highest standards and cover all of our work with a 3 month, full coverage warranty.

After renovation, we lease each one of our properties to pre-screened tenants

and turn them over to our property management team. These cash producing, turn-key units are then quickly

sold as they´re sent out to our many brokers and buyers all over the world. Because we own every property

outright, we´re able to maintain strict quality standards, deliver the lowest price, the best service, and the highest

returns.

Our Markets as real estate investors ourselves we understand the needs of other

investors. Our business is driven

solely by client demand. As such,

we’ve set up operations in a few

US cities where the opportunities

are ideal to serve a wide range of

investment needs.

• Kansas City, MO

• St Louis, MO

• Indianapolis, IN

• Phoenix, AZ

• Atlanta, GA


Kansas City, St. Louis, and Indianapolis: These cities represent very similar markets with respect to real estate investments. We consider these three cities

to be one Midwest market, as they’re relatively close geographically with similar size, demographics, and real

estate prices. These cities, in the heart of America, provide three of the

most stable and consistent real estate markets in the US. While mostly

known for high cash flow yields, these markets offer a wide range of

investment opportunity. There are

two main models we produce from

these markets. With our highest

cash flow investments and some of our best equity deals. The high cash

flow model is low-mid priced, sees average net yields of 15-19% and

average equity at settlement of

10-20%. The high equity model is slightly higher priced than our high

cash flow model, seeing average net yields of 8-12% and average equity at

settlement of 30-50%.

Phoenix, in the state of Arizona, was one of the

fastest growing and most rapidly appreciating US cities before the economic downturn. This southwestern US

city has since been one of the hardest hit and most affected real estate markets. Values have taken a sharp dive

in the last few years. Our fully

rehabbed and tenanted “turnkey”

properties are selling for roughly

35% of their high selling price and

65% of the current replacement

cost. The value in Phoenix is in the

extremely low comparative prices

relative to replacement cost and

past sales data, combined with the

popularity and attractiveness of this


city. The population growth figures over the past 20 years shows a massive demand for people who want to live

and work in this city. There is huge capital appreciation potential in Phoenix and we’re seeing the early stages of

that growth happening right now. Cash buyer investment transactions have increased dramatically over the past

6-9 months and we’re starting to see that ripple effect turn into price stability and slight increases throughout

most of the city. Due to the high volume of wholesale investor transactions and while prices begin to stabilize, it’s

become difficult to attain a true market value that has much significance. The margin for error when determining

current value is larger in this market than almost every other market in America. We produce two main models

in Phoenix. One we refer to as our Buckeye model and one we call our Maryvale model. The Buckeye model

is generally a larger, newer home located in neighborhoods traditionally dominated by owner occupants. This

model produces average net yields of 10-12% and is generally sold at 40% of their previous high values. The

Maryvale model is generally an older property in mixed use owner/tenant neighborhoods, is at a slightly lower

price point, produces net yields of 11-14%, and are normally sold at 30% of their previous high values. Both

models provide decent cash flow with excellent appreciation potential.

Atlanta, in the state of Georgia, is located in the

southeastern part of the US and the real estate market is a perfect hybrid of the higher cash flow KC, STL, Indy

markets and Phoenix markets. Atlanta is one of the largest and most highly populated cities in America. Its mild

climate and hospitable culture make

it an attractive place for people to

migrate for school, work or leisure.

With Atlanta being supported by a

diverse local economy, the currently


low real estate prices and high

rental demand have recently shown

this city to be a healthy investment

market where quality and value can

be found. The average net yields on

our turnkey Atlanta stock is 13-15%

with slightly higher equity positions

than our KC/STL high cash flow

model. The future appreciation

forecast is not quite as good as Phoenix, but we do expect the appreciation rate to surpass that of KC/STL.

Overall, Atlanta is a great market for residential property investment and our clients continue to be very eager to

invest in this city.

Summary

• We have the best reputation for consistent, quality, turnkey properties and top of class support

during and after the sale. We’re one of the top wholesale suppliers in the entire USA.

• We service the needs of all types of investors with our ability to draw from several major US markets.

• We own our stock with cash purchases and control the entire leasing and settlement process.

• We deliver fully rehabbed/leased “Turnkey” property

• We use the best renovation practices with the investor in mind. All materials from the plumbing to

the flooring are installed for low ongoing maintenance resulting in higher net returns.

• We provide a full 3 month warranty on every property we sell.

• Your experience with us will be top class, and you’ll soon see the difference between American

Turnkey Investments, and all the other guys.

American Real Estate Investments