Date post: | 26-May-2015 |
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Real Estate |
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Real Estate InvestmentReal Estate Investment
with Suviswith Suvis
We are not just another real estate company, we help you We are not just another real estate company, we help you maximize return on investmentmaximize return on investment
ContentContent
�� Current USA Real Estate MarketCurrent USA Real Estate Market
�� Why invest with SuvisWhy invest with Suvis
�� Business ModelsBusiness Models
�� Overview of the modelsOverview of the models
�� Detail informationDetail information
�� Our Contact InformationOur Contact Information
ContentContent
�� Current USA Real Estate MarketCurrent USA Real Estate Market
�� Why invest with SuvisWhy invest with Suvis
�� Business ModelsBusiness Models
�� Overview of the modelsOverview of the models
�� Detail informationDetail information
�� Our Contact InformationOur Contact Information
Why Invest in USAWhy Invest in USA
Countries provide the Countries provide the best opportunitybest opportunity for for Capital AppreciationCapital Appreciation
1.1. USA (37% vote)USA (37% vote)
2.2. Brazil (16% vote)Brazil (16% vote)
3.3. ChinaChina
4.4. U.K. U.K.
Countries providing the Countries providing the most stable and securemost stable and secure real estate investmentsreal estate investments
1.1. USA (56% vote)USA (56% vote)
2.2. Germany & Switzerland (11.3% vote)Germany & Switzerland (11.3% vote)
3.3. Australia & Canada (4.8% vote) Australia & Canada (4.8% vote)
Based on AFIRE 2008 Global Real Estate Study, USA continue to be the BEST country to invest in.
House Price Index of USA Major Cities
0
50
100
150
200
250
300
350
1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009
Year
Ho
me
Pri
ce
In
de
x
San Diego
Chicago
Phoenix
Las Vegas
Seattle
San Francisco
A lot of undervalued houses in the market.
IT IS TIME TO INVEST
USA Investment OpportunityUSA Investment OpportunityBetter than EVERBetter than EVER
More CA Real Estate DataMore CA Real Estate Data
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
1965 1970 1975 1980 1985 1990 1995 2000 2005
Year
Me
dia
n P
ric
e
•7.5% CAGR from 1968 to 1999
•Using 30 year CAGR: median price in 2008 should be $418k
•Median Price 2008 = $350k
•Good Time to Buy!
Where, When, & How to Invest?Where, When, & How to Invest?
-18%
-16%
-14%
-12%
-10%
-8%
-6%
-4%
-2%
0%
Depreciation
Rate
SanDiego
Chicago Phoenix Seattle Miami LasVegas
Location
Depreciation Rate in the Past 12 MonthsDepreciation Rate
Suvis has done the analysis to maximize
your return on investment
WE CAN HELP
ContentContent
�� Current USA Real Estate MarketCurrent USA Real Estate Market
�� Why invest with SuvisWhy invest with Suvis
�� Business ModelsBusiness Models
�� Overview of the modelsOverview of the models
�� Detail informationDetail information
�� Our Contact InformationOur Contact Information
Suvis=Max (ROI)Suvis=Max (ROI)
Regular Real Estate
companies
- Main business model is to buy and
sell properties.
- Show properties in any city
-They are paid on purchase price
- Service ends at house closing- It is up to the clients on what to
do with the property after
purchase
- They are not investors
Suvis
Property Investment Company
- Business model: help clients to invest
properties.- We find great undervalued
INVESTMENT properties - House closing is the only the beginning
of our business
- We help you to manage the property- We are investors. We will help you
to select your property like how we
pick our own
Key Property MetricsKey Property Metrics
LOCATION!! LOCATION!!
Rent to Own Ratio
Neighborhood
Demographics
Clientele Source
Return on Investment
Renovation Cost
Suvis will do all the research required to ensure
your ROI
Recent PurchasesRecent Purchases
Jul 09Jul 09May 09May 09Nov 08Nov 08Purchase DatePurchase Date
Prop #3Prop #3Prop #2Prop #2Prop #1Prop #1
ReturnReturn
Value Today*Value Today*
Purchase PricePurchase Price
18%18%14%14%27%27%
132k132k80k80k127k127k
112k112k70.5k70.5k100k100k
*Zillow.com
SuvisSuvis Returns Using Historical Returns Using Historical
DataData
�� Payout model is applied to historical data to determine gain in Payout model is applied to historical data to determine gain in past 28 years.past 28 years.
�� XX--axis shows quarter of initial investmentaxis shows quarter of initial investment
�� YY--axis shows cumulative gain after 5 yearsaxis shows cumulative gain after 5 years
�� Last data point assumes your initial investment in Q1 2004 and cLast data point assumes your initial investment in Q1 2004 and cashing out in ashing out in
Q1 2009: 16% return over 5 years. Q1 2009: 16% return over 5 years. –– EVEN IN A DOWN MARKET!!!!EVEN IN A DOWN MARKET!!!!
Gain vs Time
0%
20%
40%
60%
80%
100%
120%
140%
160%
1975 Q
1
1976 Q
4
1978 Q
3
1980 Q
2
1982 Q
1
1983 Q
4
1985 Q
3
1987 Q
2
1989 Q
1
1990 Q
4
1992 Q
3
1994 Q
2
1996 Q
1
1997 Q
4
1999 Q
3
2001 Q
2
2003 Q
1
Qtr of investment
Gain
aft
er
5 y
ears
Average = 54% Return
Comparison to Dow/Comparison to Dow/NasdaqNasdaq
�� Calculated 5Calculated 5--year return for a portfolio year return for a portfolio
containing Dow and containing Dow and NasdaqNasdaq
components (index investing). components (index investing).
�� Calculated 5Calculated 5--year return based on year return based on
housing index and payout according to housing index and payout according to
SuvisSuvis’ model.’ model.
�� SuvisSuvis offers portfolio with offers portfolio with
higher Sharpe Ratio* than higher Sharpe Ratio* than
the Dow & the Dow & NasdaqNasdaq
portfolio using data from portfolio using data from
the past 30+ yearsthe past 30+ years
*A ratio developed by Nobel laureate William F. Sharpe to measure risk-adjusted performance. The Sharpe ratio is calculated by subtracting the risk-free rate -such as that of the 10-year U.S. Treasury bond - from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns. The Sharpe ratio tells us whether a portfolio's returns are due to smart investment decisions or a result of excess risk. This measurement is very useful because although one portfolio or fund can reap higher returns than its peers, it is only a good investment if those higher returns do not come with too much additional risk. The greater a portfolio's Sharpe ratio, the better its risk-adjusted performance has been.
0.990.990.810.810.830.83Sharpe Sharpe
RatioRatio
36%36%81%81%54%54%St DevSt Dev
49%49%77%77%57%57%MedianMedian
54%54%84%84%64%64%AverageAverage
SuvisSuvisNasdaqNasdaqDowDow55--Year Year
ReturnsReturns
ContentContent
�� Current USA Real Estate MarketCurrent USA Real Estate Market
�� Why invest with SuvisWhy invest with Suvis
�� Business ModelsBusiness Models
�� Overview of the modelsOverview of the models
�� Detail informationDetail information
�� Our Contact InformationOur Contact Information
Business ModelsBusiness Models
you PURCHASE the property
we MANAGE it for you
partner with uswe INVEST for you
We do the research You pick
and invest
We manage You collect
the check
We do all the
work Worry-free investment for you
You invest
We buy/manage properties You CA$H
out after 5 years
Worry-free investment for you
We do all the
work
Which BusinessWhich Business Models is for you? Models is for you?
you PURCHASE the property
we MANAGE it for you
partner with us
we INVEST for you
�Have enough cash to outright
purchase the individual
properties
�Like to be involved in the
property selection process
�Like to keep the property for
personal use in long term
�Like to take advantage of the
market, but doesn’t have enough
cash to outright purchase
properties
�Like to minimize investment risk,
and receive guaranteed returns
�Does not want to be bothered
with the details, just want to see
the investment returns after 5
years.
youPurchase/weManage ModelyouPurchase/weManage Model
You tell us what type
of property you are
interested to invest
We will do the
research and find the
perfect match for
you
*Travel to USA to
see the property
We will manage the
property for you
You sit back and
relax and collect the
money every month
Investment ModelInvestment Model
Your Investment via
Suvis
Suvis Buys
Property
Suvis Rents /
Manages Property
Property Value
Increase
Suvis Sells Property
Investors cash
out in 5 years
�� Return at fixed interest rate over Return at fixed interest rate over
5 years5 years
�� Determine at time of investmentDetermine at time of investment
�� Depends on interest rate at time Depends on interest rate at time
of investment of investment
�� Returns tie to real estate median Returns tie to real estate median
price indexprice index
�� 10% as fees10% as fees
�� For property selling feeFor property selling fee
�� No gain, no feeNo gain, no fee
You are paid at the higher of the two scenarios
Investment Payout ModelInvestment Payout Model
Investment Payout Model Investment Payout Model -- ExampleExample2009
Median Home Prices = $100k
Interest Rate = 3%
2014
Median Home Prices = $150k*
*7.5% growth / year
5 years later
$5000
•$5k at 3% per year over 5
years
•$5k x (1.03)5 = $5797
•50% increase in median
price – 10% fee = 40%
•$5k x 140% = $7000
Since Scenario 2 pays higher, you will be paid $7k on 1/1/14
Payout Calculation in 2014Investment on 1/1/09
�� No expense ratio based on No expense ratio based on
investment valueinvestment value
�� Incentive alignmentIncentive alignment
�� We are paid only if you gainWe are paid only if you gain
�� Mutual fund mgrs are paid Mutual fund mgrs are paid
regardless of your lossregardless of your loss
�� Guaranteed ReturnsGuaranteed Returns
�� No downside riskNo downside risk
�� Management team with large Management team with large
equity stakeequity stake
�� ““Skin in the GameSkin in the Game””
�� ExperienceExperience
�� Over 6 years in real estateOver 6 years in real estate
�� Arizona, Texas, California, Arizona, Texas, California,
and Illinoisand Illinois
�� Combine 30+ Years of Combine 30+ Years of
experienceexperience
�� All founders with graduate All founders with graduate
degreedegree
�� MBA, MSMBA, MS
Why Invest via Suvis?Why Invest via Suvis?
Contact InfoContact Info
��Web: Web: www.suvisllc.comwww.suvisllc.com
��Email: Email: [email protected]@suvisllc.com
��Phone: +1 773Phone: +1 773--930930--43134313
THANK YOU