New Construction Deals

[Nene Properties 0]

Aloha fellow investors!

 

An article from the Honolulu Star Bulletin about investment opportunities in the Biloxi, MS area below. We purchased one investment home there after doing our own reasearch and are looking to do 3 more this year. Already have $40,000 in equity because it is a new construction home. That also means everything in the home is under warranty! This article is another positive indicator this is a very good investment location.

 

Email me for the developer's contact information at jeff@neneproperties.com. You can also get excellent investment property tax breaks in this "GO ZONE" area. This is an AWESOME opportunity, especially for investors just getting started. Why not have a very positive first experience? Also, investment properties in this area get families out of FEMA trailers and hotel rooms and back into homes that otherwise wouldn't be available. Our property has 7 families applying as of 22 Feb 08. Only one can get in but that's one less family living in a trailer and why we're going to buy more investment properties there.

 

From Island Homes, StarBulletin.com/classifieds 29 July 2007 on-line at:

http://m.b5z.net/i/u/6116570/i/Star-Bullet...ly_29__2007.pdf

 

 

....recently traveled to the area and reviewed various projects that are proceeding with infusions of capital both from government agencies and private investors. The group met with Biloxi Mayor A. J. Holloway who welcomes outside investment to expedite rebuilding the city and surrounding areas that are attracting major resort and casino operators. The State of

Mississippi has authorized onshore casino gambling with the goal of becoming one of the nation’s top three gaming destinations, behind Las Vegas and Atlantic City. "I believe property values can only rise in this area, which has the natural advantage of good beaches to support its resort ambitions. New construction is everywhere and it’s totally hurricane-conscious. One investment we are buying into is being designed with offices above 100 feet of parking levels to minimize the possibility of water damage, since flooding in the area reached a high of eighteen feet during Hurricane Katrina. Homes are being constructed to withstand hurricane force winds...those that had been hurricane hardened prior to Katrina sustained noticeably less damage."

 

Mazzella’s choice of the Mississippi Gulf Coast for investment takes into account that the area has qualified for the GO Zone Act, which, among other provisions, allows a qualified

investor to take fifty percent depreciation in the first year. According to IRS criteria, investors must work a given number of hours over the course of a year to qualify.

"Our group of ten people bought 32 properties on our recent trip in June, primarily condos, duplexes, and single family homes in the process of being built," Mazzella said. "In some

cases, developers are still putting financing together and looking for investors since they need to have a certain number of units pre-sold in order to obtain financing for the entire

project. Because they know they are dealing with experienced investors who are prepared to buy multiple units, they will often reduce the down payment from twenty to ten

percent...the idea is to go into the deal with the least amount of money out of pocket. The fact that we operate as a group puts us in a stronger negotiating position. "Generally we can buy these pre-construction properties for well under the public price. What also makes them attractive is the long build-out time, enabling us to accumulate more appreciation. I make sure the prices are locked in, so the developer cannot raise them during the build-out phase, that there are no anti-investor clauses specifying that the units must be owner occupied on completion, and that the prices are affordable based on local demographics so there are more potential renters or buyers on the back end when I want to sell and cash in on the deal.

 

"While my team and I were in the research phase of the Mississippi Gulf Coast market, we discovered that other savvy investors from different parts of the country were also

researching this same area. I deemed that to be good news, and we were able to exchange information to the mutual benefit of everyone involved...in other words, to 'piggy-back' on

each other's research. In the same way, team members can now piggy-back on our collective research, although I emphasize that we all need to do our own research as well."....