Business Plan Presentation

04/09/2304/09/23

CHOICE Investments CHOICE Investments LLCLLC

Our MissionOur MissionTo provide the community with quality housing andTo provide the community with quality housing and

ethical business standards while building stable assets for our ethical business standards while building stable assets for our family.family.

04/09/2304/09/23 22

CHOICE Investments LLCCHOICE Investments LLC

CHOICE Investments is a limited liability CHOICE Investments is a limited liability company established March 28, 2001. company established March 28, 2001. The sole owners are Tanyika N. Lewis The sole owners are Tanyika N. Lewis and Antre T. Lewis.and Antre T. Lewis.

04/09/2304/09/23 33


1. 3815 Gwynn Oak Ave., 21207

REHABBED – RENTED – RETAILED

Purchase date: July 5, 2001Purchase price: $26,000Renovation costs: $25,000Rent amount:

4roomsx$100/wk/rm = $1600/moPositive cashflow: $400/moSale price: $90,000Holding costs: $14,000Net profit: $25,000

OUR EXPERIENCE…

BEFORE

AFTER

04/09/2304/09/23 44


2. 1652 Poles Road, 21221

LEASE OPTIONED – ASSIGNED

Purchase date: September 11, 2002

Option price: $73,600

Renovation costs: $500

Lease amount: $800/mo($5000 upfront option fee) x 3 tenants

Carrying costs: $600/mo

Positive cashflow: $200/mo

Assignment fee: $1200

04/09/2304/09/23 55


3. 3935 Chesterfield Ave., 21206REHABBED – RETAILED

Purchase date: October 18, 2006Purchase price: $48,000

Renovation costs: $32,000

Holding costs: $23,000

Sale price: $130,000

Net Profit: $27,000

04/09/2304/09/23 66


BEFORE

04/09/2304/09/23 77


AFTER

04/09/2304/09/23 88


OUR GOALS… OUR GOALS… What we are achieving!What we are achieving!March 2001 - PresentMarch 2001 - Present • RentalsRentals• Lease optionsLease options• Assignments/WholesalingAssignments/Wholesaling• Rehab to retail Rehab to retail

Next 12 MonthsNext 12 Months • Acquire, rehab and retail six residential propertiesAcquire, rehab and retail six residential properties• Turnaround time of 3-4 months from acquisition to retailTurnaround time of 3-4 months from acquisition to retail• Average net profit of $30K per dealAverage net profit of $30K per deal

Months 13 – 24Months 13 – 24• Acquire, rehab and retail six residential propertiesAcquire, rehab and retail six residential properties• Commercial REI research/study for expansion in year threeCommercial REI research/study for expansion in year three

04/09/2304/09/23 99


OUR CRITERIAOUR CRITERIA… Ensuring Consistent Acquisitions!… Ensuring Consistent Acquisitions!

AcquireAcquire• Purchase properties at 70% of ARV, less repairsPurchase properties at 70% of ARV, less repairs• Holding and sales costs average 15% of ARVHolding and sales costs average 15% of ARV• Net profits average 15% of ARVNet profits average 15% of ARV• Deals found through our marketing and networking effortsDeals found through our marketing and networking efforts• Purchase in zones 3 through 5 neighborhoodsPurchase in zones 3 through 5 neighborhoods

RehabRehab• Rehab to top of market conditionsRehab to top of market conditions• Bring all systems up to dateBring all systems up to date• General contractors are licensed, insured and bondedGeneral contractors are licensed, insured and bonded• Contractors have a proven track record of top quality workContractors have a proven track record of top quality work

RetailRetail• Team of accomplished agents dedicated to maximize our ROITeam of accomplished agents dedicated to maximize our ROI• Target communities typically attract the first time homebuyerTarget communities typically attract the first time homebuyer

04/09/2304/09/23 1010

CHOICE Investments LLCCHOICE Investments LLC OUR ORGANIZATIONOUR ORGANIZATION… Getting it done!… Getting it done!

Tanyika and Antre LewisTanyika and Antre Lewis ~ Owners ~ OwnersPatricia JacksonPatricia Jackson ~ Marketing assistant ~ Marketing assistantSteve CookSteve Cook ~ Investment Advisor ~ Investment AdvisorPete GiardiniPete Giardini ~ Investment Advisor ~ Investment AdvisorMicah RehnMicah Rehn ~ Renovation Coordinator ~ Renovation CoordinatorMark StewartMark Stewart (Precise Painting & Powerwash) ~ General contractor (Precise Painting & Powerwash) ~ General contractorMichael TaggMichael Tagg (Slavie Federal Savings Bank) ~ Banking lender (Slavie Federal Savings Bank) ~ Banking lenderLaura RandallLaura Randall (World Capital Lending) ~ Banking lender (World Capital Lending) ~ Banking lenderJulia BayneJulia Bayne (ReMax 1 (ReMax 1stst Choice) ~ Real estate agent Choice) ~ Real estate agentAlleck ResnickAlleck Resnick (RGS Fountainhead Title) ~ Title and settlement attorney (RGS Fountainhead Title) ~ Title and settlement attorneyLarry Hammond Esq.Larry Hammond Esq. (Hammond and Hammond) ~ Legal advisor (Hammond and Hammond) ~ Legal advisorJoseph Tringali, CPA (JRT CPA)Joseph Tringali, CPA (JRT CPA) ~ Accountant ~ AccountantDiane DecintDiane Decint (Business Information Consultants) ~ Bookkeeping advisor (Business Information Consultants) ~ Bookkeeping advisorGerard HarrisonGerard Harrison (Franklin Financial Group) ~ Financial advisor (Franklin Financial Group) ~ Financial advisor““The Club”The Club” ~ Investor associates ~ Investor associates

04/09/2304/09/23 1111


TYPICAL DEALTYPICAL DEAL… We profit when we buy!… We profit when we buy!

MarketingMarketing• Probate lettersProbate letters• Hauling companiesHauling companies• Postcards to our target areasPostcards to our target areas• Multiple listing serviceMultiple listing service• Networking with other investorsNetworking with other investors

Ensuring our profitsEnsuring our profits• Equity evaluationEquity evaluation

1.1. Department of Assessments and TaxationDepartment of Assessments and Taxation2.2. Drive-bysDrive-bys3.3. Comparables from RE agentComparables from RE agent

04/09/2304/09/23 1212


FINANCIAL PROFILESFINANCIAL PROFILES… We have the financial where-… We have the financial where-with-all to ensure our success! with-all to ensure our success!

– Combined Income exceeds $150,000Combined Income exceeds $150,000– Available cash $30,000Available cash $30,000– Net worth $170,000Net worth $170,000

04/09/2304/09/23 1313


MANAGING REHABSMANAGING REHABS – Preparing Our Product!– Preparing Our Product!

• Qualified contractorsQualified contractors• Average renovation costs of $40,000Average renovation costs of $40,000• High-quality renovations to top of market High-quality renovations to top of market

conditions ~ updating all systems, windows, conditions ~ updating all systems, windows, drywall, kitchens, baths, painting, carpet, etc.drywall, kitchens, baths, painting, carpet, etc.

04/09/2304/09/23 1414


MANAGING THE DETAILS! MANAGING THE DETAILS!

– Ensuring our survivalEnsuring our survival Purchase below market Purchase below market Maintain reserve balance of 20KMaintain reserve balance of 20K Experienced MentorsExperienced Mentors

– Automated systemsAutomated systems QuickBooks Pro 2007 QuickBooks Pro 2007 Marketing assistantMarketing assistant General contractorGeneral contractor Real estate agentReal estate agent

04/09/2304/09/23 1515


ESTABLISHING A RELATIONSHIP…ESTABLISHING A RELATIONSHIP…

– Establish business banking relationship which could include:Establish business banking relationship which could include:

Day-to-day bankingDay-to-day banking Working lines of credit for purchase and rehabWorking lines of credit for purchase and rehab Permanent financing/refinancingPermanent financing/refinancing Commercial projects Commercial projects

Business Plan Presentation

Business

purchase price

purchase properties

financial advisor

survival purchase

sales costs

neighborhoods rehab

average net profit

mo sale price