 FROM THE DESK OF PHYLLIS ROCKOWER… Just got back from the GoZone (the Gulf Coast of Mississippi to be more accurate…), and boy, it was just unbelievable - miles and miles of beach emptiness - they’re really hurting down there. However, the US and Mississippi State Governments have done some very smart things, ie: approved major casino expansion and given a fabulous tax break to investors… I looked at several projects there which I really liked and am doing some serious “horse trading” to negotiate some HOT DEALS for REIC Members; in fact, I’ve purchased a brand new 3bd/2ba SFR myself in a subdivision called Pebble Creek in GulfportMS (click on HOT DEALS for Pebble Creek details…) for only $169,900 (a far cry from prices out West here, huh?) with a first-year rental guarantee in place which nets me $200+/month in positive cashflow (this is the first time I’ve filled out a #1003 Loan Application in years – ugh…) - you know me, I never invest in anything I have not seen and never talk about an investment that I am not willing to put my money where my mouth is, so stay tuned for further UPDATES and ARTICLES on the area and, from time to time, check out my BLOG on our website at www.RealEstateClubLA.Com for continuing developments… And I got a 5.2% fixed rate for 30 years!! I’m aware that many of you have – or are considering - investing in areas “Away From Home”, in many cases without sufficient research and/or info on the area or the investment itself (don’t get sold a bill of goods by some slick on-line salesman…), and certainly without ever going there in person - and I’ve also heard my fair share of your “horror stories”… By now you all know that I NEVER invest in – or recommend – something that I have not seen with my own eyes; this GoZone trip was not my first trip looking at real estate investment opportunities “Away From Home” and outside of my own comfort zone – but I certainly plan to continue doing so as there as some real “make-sense” deals out there… ARTICLES - HOT DEALS - UPDATES And as many of you are not familiar w/GoZone – or the State/Federal ‘incentives’ available for investing there – I’ve had a ‘Special GoZone Report’ prepared for you – read on…   
A ’GO-ZONE REPORT’ prepared especially for REIC-LA
WHAT? IS THE GO-ZONE Hurricanes Katrina and Rita that hit the country in the middle of 2005 were considered the most devastating natural disasters this country has ever had. These calamities really had a huge impact on the affected states’ economy. Due to this, Congress approved House Bill HR 4440 on December 16, 2005 which was signed by President Bush five days later. HR 4440, otherwise known as the Gulf Opportunity Zone Act of 2005 - or the GoZone Act - offers several tax benefits to properties built and “placed into service” in the GoZone region after the hurricanes. The incentives are being offered by the government to help bring back life once again to some of the affected areas of Alabama, Louisiana and Mississippi and to rebuild the economies of these states. GoZone legislation in some areas has since been extended to December 2010…
WHERE? IS THE GO-ZONE
WHY? INVEST IN THE GO-ZONE The GoZone Act allows for a significant acceleration of the normal depreciation deduction by allowing a bonus depreciation deduction in the first year “qualified” GoZone Property is “placed into service…” equal to 50% of its cost in addition to the normal depreciation deduction for the balance of such costs. Not only must the property itself be “qualified” for the GoZone bonus depreciation, but so must the Buyer/Owner be “qualified” – Contact us for details… The 50% bonus depreciation is available for both costs incurred on new projects as well as rehabilitation costs. Disclaimer: We are neither tax attorneys nor advisors, and the information contained in this article is for educational purposes only. Please consult your appropriate legal/tax advisor for details…
BUT! PLEASE REMEMBER... Investing simply for the tax incentive is NOT the only reason we’re here – it’s just the “cream” on the investment pie - first and foremost, we’re looking for good “make-sense” investments wherever they may be found, and we’re recommending that you stay in the “blue-collar” price ranges, preferably under $200,000 for construction/casino employee housing (the real first “wave” of workers expected back into the area in any serious numbers…) as we feel that high-end Condo and ‘CondoTel’ projects are VERY premature in that the types of rental-income requirements needed to support financing of any sort for these types of properties do not yet exist in the area and are not likely to be met for (at least…) another year or two – or more – and only when the area is better suited to these types of investments and the tourist/vacation/visitor industries pick up sufficiently to allow for these sorts of investments… Maybe by late 2009 or early 2010….
WHY? THE MISSISSIPPI GULF COAST
AS OPPOSED TO "OTHER" AREAS Because the Mississippi Gulf Coast is America’s hottest new housing market! Because Hurricane Katrina devastated the entire Mississippi Gulf Coast, destroying over 64,000 homes and 47,000 rental properties - the need for new construction is critical - and not just to simply replace the “hurricane-lost” housing, but additional housing which is needed to keep up with the rapid growth and (re)development occurring throughout the area – the Mississippi Power Company estimates that the Mississippi Gulf Coast area will need 80,000 new affordable housing units in just the next 3 years (and only about 3,500 new units were built in all of 2007…). And Federal ‘GoZone’ legislation can give you accelerated depreciation And substantial tax advantages for investment in new home construction And the State of Mississippi is authorized to provide “other” financial incentives to invest in the region and create housing (and jobs) via it’s ‘Small Rental Assistance Program’ (more on the ‘SRAP Program’ to follow – watch for the SRAP UPDATE…) - what better investment climate could you possibly hope for? And I bet you thought there were no more “no-brainer” investor-deals out there in the real world… GAMING
www.mgc.state.ms.us/ STEEL
http://blog.nola.com/times-picayune/ 2007/05/alabama_lands_german_steel_mil.html AEROSPACE
www.nasa.gov/centers/stennis/home/index.html SHIPBUILDING
www.mscoastshipbuilding.com/index.html SCIENCE & TECHNOLOGY
www.partners.ms/marketing%20brochure%20041907.pdf And click HERE for the MISSISSIPPI GULF COAST 2-YEAR REPORT
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ARTICLES - HOT DEALS - UPDATES
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