America's Hottest Real Estate Investment Market - Mississippi

8/14/2019 America's Hottest Real Estate Investment Market - Mississippi

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Your Premier Source For Real Estate Investments

Bayside Park Waveland, Mississippi

Equity, Cash-Flow and Appreciation

REAL ESTATE INVESTMENT GUIDE

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HHoouussiinngg MMaarrkkeettGet Positive Cash Flow withMassive Tax Advantages!


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TABLE OF CONTENTS

INTRODUCTION ........................................................................................................................................... 3

INVESTMENT HIGHLIGHTS ........................................................................................................................ 4THE CURRENT OPPORTUNITY ................................................................................................................. 6EXECUTIVE SUMMARY .............................................................................................................................. 7BENEFITS OF THE GO ZONE .................................................................................................................. 9GULF COAST REAL ESTATE MARKET .................................................................................................... 10TARGET AREA ........................................................................................................................................... 12POPULATION AND DEMOGRAPHICS .................................................................................................... 14MISSISSIPPI ECONOMY AT A GLANCE .................................................................................................. 16ECONOMIC FORECAST (2006 2008) ................................................................................................... 17MISSISSIPPI COAST EMPLOYMENT ....................................................................................................... 18MISSISSIPPI COAST CASINO NEWS ....................................................................................................... 20LOCATION MAPS ....................................................................................................................................... 22BAYSIDE PARK .......................................................................................................................................... 23

A PROPERTY MANAGERS VIEW ............................................................................................................ 25CASH-FLOW ANALYSIS ............................................................................................................................ 26FINANCING................................................................................................................................................. 28MODEL ELEVATION .................................................................................................................................. 29FLOOR PLAN ............................................................................................................................................. 30HOME FEATURES ..................................................................................................................................... 31PHOTOS ..................................................................................................................................................... 32NEWS ARTICLES ....................................................................................................................................... 33ADDITIONAL INFORMATION .................................................................................................................... 39CONCLUSION ............................................................................................................................................ 40HOW DO I GET STARTED? ....................................................................................................................... 41

DISCLAIMER NOTICE

The materials and information contained in this document are provided on an AS IS basis and ASAVAILABLE basis, without representations or warranties of any kind. Norada Real Estate expresslydisclaims any and all such representations and warranties, either expressed or implied, including withoutlimitation warranties of title, non-infringement, or implied warranties of merchantability or fitness for aparticular purpose. Norada Real Estate does not warrant the accuracy or completeness of theinformation, text, graphics, links or other items contained within these materials. Norada Real Estate maymake changes to this material at any time without notice. While Norada Real Estate strives to keep theinformation in these materials accurate and current, Norada Real Estate cannot guarantee the accuracy,completeness or timeliness of the information. Information within these materials may contain technical

inaccuracies or typographical errors. Norada Real Estate reserves the right to make changes, correctionsand/or improvements to the information contained within these materials at any time, without notice. Thisis not an offering for securities.

We are in a market with rapidly changing interest rates. A steady rise in interest rates could alter yourcash flow. As with any large purchase, it is highly recommended that you perform your own duediligence. There are no guarantees made and your returns could be higher, lower, or you could losemoney. The length of time to build your property can vary depending on weather, city inspections, etc.


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INTRODUCTION

THE MISSISSIPPI GULF COAST

Our intensive research has shown that this area is Americas new hot housing market.

Heres why:

Hurricane Katrina devastated theentire Mississippi Gulf Coast,destroying over 64,000 homes andtens of thousands of rentalproperties. This has created a

critical need for new affordablehome construction.

Booming Casino Industry is drivingincredible growth across the entireregion. In Biloxi, 11 casinos are upand running... several more areplanned, including Jimmy BuffettsMargaritaville resort and casino... a$750 million project!

We Create Value by rebuilding the

area and upgrading neighborhoods.

Government Financial Incentivesand tax breaks encourage growthand create an attractive investmentenvironment. In fact, you may beable to deduct 50% of the cost of thebuilding from your tax liability in thefirst year.

Expanding Military Installations ofKeesler Air Force Base, StennisSpace Center, and Atlantic FleetSeabee base mean huge demandfor home rentals and purchases.

Were building the new Bayside Park.

Our latest residential development,Bayside Park, is located in HancockCounty, Mississippi.

This area, almost completely wipedoff the map by Hurricane Katrinahas perhaps the most urgent needfor affordable new homes.

Be a part of it.

To invest in real estate, you need acareful plan: a comprehensivestrategy to maximize your goals.Our investment strategies, such asthe Bayside Park development,have served hundreds of clients.We are here to help you invest in aconvenient, well-researched, wealthbuilding investment.

Real Estate Investing Made Easy.


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INVESTMENT HIGHLIGHTS

THE CURRENT OPPORTUNITY

Katrina was our nations worst natural disaster referred to as the 100 Year Storm.

Hurricane Katrina destroyed 64,000 homes and 47,000 rental properties. 30,000 families still live in FEMA trailers. 40,000 families are living with friends & family. Changes in gaming laws have created a casino boom.

EXECUTIVE SUMMARY

As of the fall of 2006, a total of 100,000 families were still displaced. The true rebuilding of single family homes in the area has only recently commenced. Demand for affordable housing has created significant growth in the housing market. The real estate boom has only started and may run for the next 3 to 5 years. The Mississippi Gulf Coast is one of the best real estate markets in the country.

BENEFITS OF THE GO ZONE Get a 50% bonus depression in your first year (per property). Claim the bonus depression against the taxes youve paid over the last 5 years. Claim the bonus depression against any taxes paid over the next 10 years.

GULF COAST REAL ESTATE MARKET

100,000 homes needed right NOW. 300,000 more homes needed over the next 5 years. 95% of displaced persons have returned home and only 7,000 homes have been rebuilt. 30,000 families still live in FEMA trailers. 40,000 families are living with friends & family.

TARGET MARKET The Mississippi Gulf Coast Counties were experiencing tremendous growth pre-Katrina. Hancock County is the target market offering the greatest opportunity for investors. The average household size was 2.52 and the average family size was 2.99. Racial makeup was 90.2% White, 6.8% Black/African American, 1.8% Hispanic/Latino.

POPULATION & DEMOGRAPHICS

Hancock County had a 46.6% population growth from 1990 to 2005. The population has greatly rebounded from the decline suffered directly after Katrina. Projections by the State of Mississippi show the population will continue to increase. Increase in baby-boomers moving to the area as well as additional demand for workers

in the Casino, and Aerospace & Defense industry are positive factors supporting growth.

MISSISSIPPI ECONOMY AT A GLANCE

Per capita income has increased at twice the national average. Retail sales have increased 61%. Average price of homes currently available in the market are too high: $200,000 and up! Gaming revenues and gaming employment are now at record levels. The Post Katrina construction boom should spark an acceleration of economic growth.


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MISSISSIPPI COAST EMPLOYMENT

Current casinos employ over 18,000 people. 11 more casinos in 2008 will employ 22,000 more people. Stennis Space Center, Ingalls Shipbuilders and Keesler AFB employ over 35,200 people Almost every industry has experienced wage increases from construction to fast food.

Employment opportunities in the area are strong and growing.

MISSISSIPPI COAST CASINO NEWS

Each casino employs 1,600 to 2,000 locals. Employees drive up to 2 hours each way to work. Casinos are housing employees at a cost of $250+ per night. 11 new casinos are planed resulting in 22,000 more employees with nowhere to live. Local casinos currently generate over $235,000,000 in revenue per month. The Gulf Coast is now Americas second largest gaming destination.

BAYSIDE PARK

Located in Waveland, Mississippi. Bayside Park is a perfect bedroom community.

5,000 buildable lots. We control 1,500 of those lots. Lot prices appreciated from $1,500 to $15,000 during the last 6 months.

A PROPERTY MANAGERS VIEW

High demand for rental housing now. Phone will not stop ringing once housing becomes available. There has been quite a bit of expansion already and more is expected. The construction industry alone will drive the rental market in Hancock County for

several years to come.

MODEL & FLOOR PLAN

3 Bedrooms, 2 Bath, 1,457 sq ft home. $126,900 complete with lot. Leases for $1,225 per month.

INVESTMENT HIGHLIGHTS

5% to 10% total down payment. Positive Cash-Flow. Government incentives. Accelerated 50% depreciation (potentially a $18,450 tax refund)* Revitalization = High appreciation potential.

Strong need for affordable rental homes. Excellent jobs market. Growing vacation destination. Second largest gaming destination in the USA (Las Vegas is first).

* The estimated GO Zone net cash benefit in Year 1 (50% special accelerated depreciation) assuming $123,000 home value, $61,500 in depreciation, and a 30%tax bracket is $18,450!!! To better understand all the special benefits available (and important restrictions that may apply) in this unique opportunity, we stronglysuggest you consult with your professional tax or financial advisor.


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THE CURRENT OPPORTUNITY

HIGHLIGHTS

Katrina was our nations worst natural disaster referred to as the 100 Year Storm.

Hurricane Katrina destroyed 64,000 homes and 47,000 rental properties. 30,000 families still live in FEMA trailers. 40,000 families are living with friends & family. Changes in gaming laws have created a casino boom.

Norada Real Estate in collaboration withits partner builders has acquired 1500platted and R-1 zoned lots in BaysidePark Mississippi. Bayside Park is locatedin Western Mississippi just south of I-10and US-90 and is a 30-45 minute drivefrom the booming Gulfport / Biloxi

Casino area and a 30-45 minute drivefrom New Orleans.

Our development is located inside theGulf Opportunity Zone (The GO Zone)which offers investors incentives forbuilding and operating rental properties.The Governor of Mississippi recentlyannounced there is an immediate need for 100,000 new affordable homes to be built withinthe next 12 months. There are currently 101,000 people living in FEMA trailers due to thedevastation of hurricane Katrina. Many of the people have been in the trailers since 2005 dueto the severe housing shortage and many are still living in tents. There are other factors

contributing to the demand as well, including the booming Casino/entertainment industry,Kessler AFB, the Stennis Space Center expansion, the growing aerospace corridor,shipbuilding, growing international trade zones, and general business climate.

Norada Real Estate is offering homes at wholesale prices starting in the mid $120s, includingthe lot, exclusively to our investors to meet the housing needs of the hard working families inthis area. The lender's appraiser valued our current 3-bedroom, 2-bath offering at over$149,000. Our investors wholesale pricing is only $126,900. Lot's that were $1,500 only 6months ago are now selling at $13,000.

As with all investment opportunities timing is everything. We feel this is a great investmentopportunity for those that get involved at this early stage. Prices are going to be raised in

the near future so we encourage those interested to lock in at todays pricing to gain maximumbenefit from their investment.

Norada Real Estate is offering a turn-key investor package that includes financing, construction,property management, lawn service and on site liquidation service.


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EXECUTIVE SUMMARY

HIGHLIGHTS

As of the fall of 2006, a total of 100,000 families were still displaced.

The true rebuilding of single family homes in the area has only recently commenced. Demand for affordable housing has created significant growth in the housing market. The real estate boom has only started and may run for the next 3 to 5 years. The Mississippi Gulf Coast is one of the best real estate markets in the country.

Prior to hurricane Katrina, the MississippiGulf Coast real estate market wasshowing significant strength due to theexpanding Casino market, expandingdefense industry and baby-boomerslooking for more affordable Gulf Coast

living. In many respects it offered peoplea more affordable life style than Florida,at substantially lower costs. WhenKatrina struck the Gulf Coast, growthcame to an abrupt halt, as Casinos weredestroyed, businesses were damaged,and residents were made homeless. Inthe first year after the hurricane, thehousing market was surprisingly slow to recover. During this period there were only 1,463 newsingle family housing permits and 28 new multifamily housing permits that were drawn. Asperplexing as this may seem, there are several plausible reasons why this occurred.

Following Katrina, many construction firmsconcentrated on the immediate clean up andrepair work in the local area. Second, manyof the builders were given lucrativeconstruction contracts to repair and rebuildCasinos. Contractors were hired to workaround the clock to meet tight deadlines ongetting the casinos up and running. Just afterKatrina, Mississippi changed its gaminglaws and now the Casinos are able tobuild 800 feet onshore. See Casino Newselsewhere in this guide. Builders obviously

went with the large lucrative contracts, andpaid little attention to the housing needs of

the community. Because of these factors, the true rebuilding of single family homes in thearea has only recently commenced. Keep in mind that as late as the fall of 2006, 5,000 to10,000 people were still living in tents, another 30,000 to 40,000 families where in FEMA trailersand a total of 100,000 families were still displaced.


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Recent economic studies show that the Gulf Coast area is recovering. Statewide, gross stateproduct and employment have surpassed pre-Katrina levels and a reconstruction boom isanticipated for the next five years. Post Katrina employment growth in the state more thanoffset jobs that were lost due to Katrina. Retail sales in the twelve months after Katrina are 19%above pre-storm levels, indicating further strengthening in the economy.

Because of the recovering economy in the coastal counties and the desire for residents to returnto the area, affordable housing has become the major issue effecting sustainable growth in thearea. The recent demand for affordable housing has created significant growth in thelocal housing market. In October of 2006 MSNBC reported that the effects of Katrina mayspout a Real Estate boom in Mississippi. Now it is late 2007 and many builders and developersare beginning to enter the market for what looks to be a significant growth market. Many of thedevelopers are focusing on buying up whole blocks of destroyed homes South of I-10 to makeroom for Casinos, condos and entertainment complexes.

Other developers are focusing on land north of I-10 that has higher elevation than most coastalareas and has no lingering effects from the hurricane. The Mississippi Real Estate CommissionVice Chairman was recently quoted as saying that the Mississippi Gulf Coast is one of the

best real estate markets in the country. Investors believe that Katrina is only one of thefactors that should lead to an excellent real estate opportunity in the years to come. Otherfactors are the continuing expansion of the Casinos, jobs created by the expanding defenseindustry and the migration of baby boomers to warm weather spots near the Gulf. Most expertsagree that the real estate boom has only started and may run for the next 3 to 5 years.

As an added inducement to investors, the State of Mississippi is offering significant taxincentives to invest in the area that were hardest hit by hurricanes. The combination of a highgrowth area, with the opportunity for appreciation and added tax incentives, make investing inMississippi a very attractive alternative for real estate investors.


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BENEFITS OF THE GO ZONE

HIGHLIGHTS

Get a 50% bonus depression in your first year (per property).

Claim the bonus depression against the taxes youve paid over the last 5 years. Claim the bonus depression against any taxes paid over the next 10 years.

WHAT IS THE GO ZONE

The Gulf Opportunity Zone Act of 2005, signed into law by President Bush on December 21,2005, contains significant economic incentives to rebuild the Gulf Coast, as well as to attractnew investments to the affected areas. Modeled after the Liberty Zone incentives created afterthe 9-11 disaster, these incentives are intended to stimulate private investment within the GulfOpportunity Zone (GO Zone) within the window of time provided.

These economic incentives are so significant that any person considering an investment inthe GO Zone should consider how to employ these incentives to the fullest extent possible.

The most significant incentives in the GO Zone Act include:

50% Bonus Depreciation 5-Year Net Operating Loss (NOL) Carryback Tax-exempt financing GO Zone incentives coupled with state incentives 100% First-Year Equipment Expense Deduction for Small Businesses Special Incentives for Employers Expensing of Demolition and Cleanup Charges

The benefit of the GO Zone for real estate investors is the first year 50% Bonus Depreciation.The following examples are not to be considered tax or legal advice. Please consult your taxprofessional as your personal circumstances will vary. (IRS Publication 4492)

50% BONUS DEPRECIATION EXAMPLE

This special deduction equals 50% of the qualified property's depreciable basis in the first year.

$126,400 (Approximate new home purchase price in the GO Zone)- $ 10,000 (Approximate land value, not depreciable)

$116,400 (Total improvement for depreciable basis)

$ 58,200 (1st year 50% Bonus Depreciation per property)

NOTE: Please consult your tax professional for advice related to your specific tax situation.


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GULF COAST REAL ESTATE MARKET

HIGHLIGHTS

100,000 homes needed right NOW.

300,000 more homes needed over the next 5 years. 95% of displaced persons have returned home and only 7,000 homes have been rebuilt. 30,000 families still living in FEMA trailers. 40,000 families are living with friends and family.

Prior to Katrina, the Mississippi Gulf Coast real estate market was showing significant strengthdue to the expanding Casino market, expanding defense industry and baby-boomers looking formore affordable Gulf Coast living. In many respects it offered people a more affordable life stylethan Florida, at substantially lower costs. When Katrina struck the Gulf Coast, growth came toan abrupt halt, as Casinos were destroyed, businesses were damaged, and residents weremade homeless. In the first year after the hurricane, the housing market was surprisingly slow

to recover. During this period there were only 1,463 new single family housing permits and 28new multi-family housing permits that were drawn. As perplexing as this may seem, there areseveral plausible reasons why this occurred.

Following Katrina, many construction firms concentrated on the immediate clean up and repairwork in the local area. Second, many of the builders were given lucrative construction contractsto repair and rebuild Casinos. Contractors were hired to work around the clock to meet tightdeadlines on getting the casinos up and running. Builders obviously went with the largelucrative contracts, and paid little attention to the housing needs of the community. Because ofthese factors, the true rebuilding of single family homes in the area has only recentlycommenced. Keep in mind that as late as the fall of 2006, 5,000 to 10,000 people were stillliving in tents, another 30,000 to 40,000 in trailers and a total of 100,000 families were still

displaced.

Because of the recovering economy in the coastal counties and the desire for residents to returnto the area, affordable housing has become the major issue effecting sustainable growth in thearea. The recent demand for affordable housing has created significant growth in the localhousing market. In October of 2006 MSNBC reported that the effects of Katrina may spouta Real Estate boom in Mississippi. Many builders and developers are beginning to enter themarket for what looks to be a significant growth market. Many of the developers are focusing onbuying up whole blocks of destroyed homes South of I-10 to make room for Casinos, condosand entertainment complexes. Other developers are focusing on land north of I-10 that typicallyhas higher elevation and has no lingering effects from the hurricane. Mark Cumbest theMississippi Real Estate Commission Vice Chairman was recently quoted as saying that

the Mississippi Gulf Coast is one of the best real estate markets in the country.

Investors believe that Katrina is only one of the factors that should lead to an excellent realestate opportunity in the years to come. Other factors are the continuing expansion of theCasinos, jobs created by the expanding Aerospace & Defense industry and the migration ofbaby boomers to lower cost warm weather spots near the Gulf. Most experts agree that the realestate boom has only started and may run for the next 3 to 5 years. As an added incentive toinvestors, the State of Mississippi is offering significant tax incentives to invest in the area thatwere hardest hit by hurricanes. The combination of a high growth area, with the opportunity for


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appreciation and added tax incentives, make investing in Mississippi an attractive alternative forreal estate investors.

According to the OFHEO.gov House Price Index report of Quarter 1, 2007, Biloxi-Gulfport wasthe sixth greatest appreciating market in the country for year over year appreciation,appreciating 15.16%. Last quarter alone, Biloxi-Gulfport appreciated 4.77%.

BAYSIDE PARK

One area of high ground that is south of 1-10 is now getting much attention from developers.Our builder has acquired 1,500 platted and zoned lots in Bayside Park. This area isexperiencing double digit appreciation and offers the investor a great opportunity for ROI.Lot's in Bayside Park that were $1,500 only 6 months ago are now listed at $15,000.

Where others have been building homes in the $250,000 plus range north of I-10, we areoffering investors homes starting in the mid $120,000 to meet the overwhelming demand foraffordableworkforce housing.

Timing is everything with all investment opportunities. The same is true here. We feel this isa great investment opportunity for those that get involved at this stage. To gain maximumbenefit from this investment opportunity we encourage those interested to lock in today.

Dont overlook the fact that Income Property owners can qualify for the GO Zone Incentivesincluding the 50% accelerated depreciation incentive that translates into a substantial taxwindfall. This investor incentive can be carried back 5 years and forward 10 years.


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TARGET AREA

HIGHLIGHTS

The Mississippi Gulf Coast Counties were experiencing tremendous growth pre-Katrina.

Hancock County is the target market offering the greatest opportunity for investors. The average household size was 2.52 and the average family size was 2.99. Racial makeup was 90.2% White, 6.8% Black/African American, 1.8% Hispanic/Latino.

The target market we have identified for investors are the Mississippi Gulf Coast Counties ofHancock, Harrison and Jackson. These counties were some of the hardest hit by hurricaneKatrina and offer the greatest opportunity for investing in the recovery process. In additionthese counties, pre-Katrina, were experiencing tremendous growth associated with theexpansion of Casinos and defense industries. The Gulf Coast counties encompass a 1,795square mile area, more than 40 miles of beaches, about 360,000 people and 11 unincorporatedcities. Listed below is a short description of our target county:

Hancock County, Mississippi

Hancock County is the southernmost county of the U.S. state of Mississippi, situated along theGulf of Mexico and the state line with Louisiana. As of 2000, the population was 42,967. Itscounty seat is Bay St. Louis. The area is also home to the John C. Stennis Space Center,NASAs largest rocket engine test facility.

The county was severely damaged from Hurricane Katrina on August 28-29, 2005 causingcatastrophic effects.

Geography

According to the U.S. Census Bureau, the county has a total area of 1,431 km (553 mi). 1,235km (477 mi) of it is land and 196 km (76 mi) of it (13.69%) is water.

Major Highways

Interstate 10 U.S. Highway 90 Mississippi Highway 43 Mississippi Highway 53

Adjacent Counties

Pearl River County (north) Harrison county (east) St. Tammany Parish, Louisiana (west)


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Demographics

As of the census of 2000, there were 42,967 people, 16,897 households, and 11,827 familiesresiding in the county. The population density was 35/km (90/mi). There were 21,072 housingunits at an average density of 17/km (44/mi). The racial makeup of the county was 90.19%White, 6.83% Black or African American, 0.60% Native American, 0.88% Asian, 0.04% Pacific

Islander, 0.33% from other races, and 1.14% from two or more races. 1.80% of the populationwas Hispanic or Latino of any race.

There were 16,897 households out of which 31.50% had children under the age of 18 living withthem, 53.90% were married couples living together, 11.30% had a female householder with nohusband present, and 30.00% were non-families. 24.70% of all households were made up ofindividuals and 9.20% had someone living alone who was 6 years of age or older. The averagehousehold size was 2.52 and the average family size was 2.99.

In the county the population was spread out with 25.10% under the age of 18, 7.30% from 18 to24, 28.00% from 25 to 44, 25.60% from 45 to 64, and 14.00% who where 65 years of age orolder. The median age was 38 years. For every 100 females there were 98.30 males. For

every 100 females age 18 and over, there were 95.50 males.

The median income for a household in the county was $35,202, and the median income for afamily was $40,307. Males had a median income of $32,229 versus $22,066 for females. Theper capita income for the county was $17,748. About 11.20% of families and 14.40% of thepopulation were below the poverty line, including 17.90% of those under age 18 and 10.30% ofthose ages 65 or over.

Cities and Towns

Bay St. Louis Waveland Diamondhead Kiln Pearlington Shoreline Park Clermont Harbor Lakeshore Bayou Caddy


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POPULATION and DEMOGRAPHICS

HIGHLIGHTS

Hancock County had a 46.6% population growth from 1990 to 2005.

The population has greatly rebounded from the decline suffered directly after Katrina. Projections by the State of Mississippi show the population will continue to increase. Increase in baby-boomers moving to the area as well as additional demand for workers

in the Casino, and Aerospace & Defense industry are positive factors supporting growth.

The Mississippi Gulf Coast Region is a diverse area including both urban and ruraldevelopment. The largest cities are clustered along the coastline in Harrison and JacksonCounties. This region experienced moderate to strong growth leading up to Katrinas impactproducing a sizeable population base of 465,000. A strong regional economy and affordablecost of living attracted residents from across the South. Population historically has beenclustered near major employment centers in Harrison and Jackson Counties, but significant

growth has occurred in the four smaller population base counties since 1990. The tablebelow shows the population growth from 1990 to 2005 by county, with a comparison to stateand national levels.

POPULATION GROWTH, 1990-2005

12.9%

19.2%

28.2%

46.4%

15.1%16.9%

35.3% 35.9%

0%

10%

20%

30%

40%

50%

Mississippi U.S. George Hancock Harrison Jackson Pearl River Stone


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POPULATION PROJECTED BY COUNTY

Population projections furnished by the state of Mississippi show the Gulf Coast area populationwill continue to increase. The increase in baby-boomers moving to the area as well as theadditional demand for workers in the Casino and Aerospace & defense industry are all positivefactors supporting growth.

CURRENT 2010 2015 2020

Hancock 46,711 49,548 51,805 54,294

Harrison 193,810 197,103 200,028 204,914

Jackson 135,940 140,832 145,132 148,645

Despite the devastating impacts of Katrina, the Mississippi Gulf population has greatlyrebounded from the population decline suffered directly after the hurricane. Some of thepopulation had shifted to northern counties as rebuilding was taking place in the Gulf Counties.

As more affordable housing is created, residents will return to the Gulf Communities which arecloser to the employment base and the Gulf beaches.

GULF COAST DEMOGRAPHICS 2005

Considerable ethnic diversity exists within the Gulf Region, particularly given its geography andpopulation density. While Caucasians amount for 77% of the areas population, other racial andethnic groups are growing quickly. The African American community is the second largest racialgroup and amount for 19% of the population, and the Asian community now account for 2% ofthe population. Similar to the track with the rest of the nation, the Hispanic community is one ofthe fastest growing ethnic groups and account for 2% of the local population.

Racial and Ethnic Demographics in the Gulf Region(U.S. % in Parenthesis)

African

American,

19%(12%)

Asian, 2%(4%)

Caucasian77%

(61%)

Other, 3%(8%)

Hispanic2%

(15%)


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MISSISSIPPI ECONOMY AT A GLANCE

HIGHLIGHTS

Per capita income has increased at twice the national average.

Retail sales have increased 61%. Average price of homes currently available in the market are too high: $200,000 and up! Revenues and gaming employment are now at record levels. The Post Katrina construction boom should spark an acceleration of economic growth.

After the devastating impact of Katrinathat struck the Gulf Coast on August 29th,2005, the economy in the area hascontinued to recover at an increasingpace. Statewide, gross product andemployment have surpassed pre-Katrina

levels and a reconstruction boom isanticipated for the next five years.Post Katrina employment growth in thestate more than offset the approximately22,000 jobs that were lost due to Katrina.Retail sales in the twelve months afterKatrina are 19% above pre-storm levels,indicating further economic strengthening.

Much of the economic base in the three Gulf Coast counties (Hancock, Harrison, and Jackson)is tied to the Casino and Aerospace & Defense industries. Casinos on the coast that weredestroyed by Katrina have staged a remarkable comeback. Just after Katrina, Mississippi

changed their gaming laws that allowed the Casinos to be built 800 feet inland from open water.Revenues and gaming employment are now at record levels. Additional Casinos are underconstruction and many other casinos are in the planning stage thus making the Casinoindustry a large and dependable employer for years to come. For updated gaminginformation visit http://www.mgc.state.ms.us.

The Post Katrina construction boom should spark an acceleration of economic growth inthe state over the next three to five years as the numbers in Economic Forecast below show.Gross state product is expected to grow 2.9% in real terms in 2006, with a slightly higher growthrate forecast for 2007 as reconstruction effects push the growth rate higher. While activity levelswill remain high in 2008, the growth rate is expected to slow somewhat at 2.8%. Employmentgrowth which has been under 1.0% in 2006, will increase to 1.3% in 2007 and 1.2% in 2008 as

the number of persons employed on the coast reaches and exceed pre-Katrina levels.

The current and future economic outlook for the area looks promising but there are some majorchallenges that need to be overcome. The overwhelming majority believe that the key factorthat will impact future rebuilding efforts will be affordable housing.


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ECONOMIC FORECAST (2006 2008)

Percent Change

Mississippi 2006 2007 2008

Gross State Product 5.8 5.2 4.6Real Gross State Product 2.9 3.1 2.8Price Level 2.8 2.1 1.7Establishment Employment 0.8 1.3 1.2Unemployment Rate 7.7 6.6 6.3Personal Income 7.1 6.0 5.4Consumer Price Level-South 3.3 2.1 2.1

United States

Gross Domestic Product 6.3 4.6 5.1Real Gross Domestic Product 3.3 2.4 3.1Price Level 2.9 2.2 1.9Establishment Employment 1.4 1.1 1.3Unemployment Rate 4.6 4.8 4.9Personal Income 7.2 5.4 5.3Consumer Price Level-South 3.3 2.1 1.9

SOURCE: Center for Policy Research and Planning, Mississippi Institutions of Higher Learning, November, 2006.Global Insight November, 2006.


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MISSISSIPPI COAST EMPLOYMENT

HIGHLIGHTS

Current casinos employ over 18,000 people.

11 more casinos in 2008 will employ 22,000 more people. Stennis Space Center, Ingalls Shipbuilders and Keesler AFB employ over 35,200 people Almost every industry has experienced wage increases from construction to fast food. Employment opportunities in the area are strong and growing.

The Mississippi Gulf Coast has a widearray of large employers representingindustries from tourism to manufacturing.These employers are industry leaderssuch as Northrup Grumman, Chevron,Dupont, Triton Systems, GE Plastics, the

Southern Company, Hatter Marine, FriedGoldman, Oreck, and the Coasts casinos.Since 1941, a strong military presence onthe Mississippi Gulf Coast has alsocontributed significantly to the economy.More recently, legalized dock sidegambling has fueled growth, not only inthe tourism industry, but all segments ofthe economy. The Casino industry is one of the largest employers on the Gulf Coast.

The Mississippi Gulf Coast Go Zone story has been dominated by the massive influx of theGaming and Hospitality industry. But that is only part of the story. South Mississippi's Aerospace

& Defense industry includes federal and university research units that focus on propulsion,remote sensing, visualization and scientific computing. It also has aerospace parks, militaryaviation bases, technology transfer offices and test ranges.

Lets take a look at the short list of companies in the Go Zone that populate the MississippiGulf Coast Aerospace Corridor; BAE Systems, Pratt & Whitney Rocketdyne Rocket EngineAssembly Facility, Applied Technologies, General Dynamics, ITT Industries Inc.,Lockheed Martin, Northrop Grumman, Rolls-Royce Naval Marine Inc.

South Mississippi has leading-edge research and practical experience with composites that gointo aircraft; it has the plants that use composites to make fixed-wing and rotary unmannedaircraft; it builds the next generation of warships that will launch robot aircraft; it has a weapons

maker working with lasers; it has the satellite makers whose high-flying craft and remotesensors are key to command and control as well as surveillance; it has the companies that buildthe engines that power aircraft and spacecraft; it has the engine testing facilities.

As a result of fewer available employees for hire, labor rates in the area have increasedsignificantly. Almost every industry throughout the region has experienced wageincreases from construction outfits to fast food restaurants. While most of the wageincreases can be attributed to lack of housing and labor shortages, some of the pay increaseshave resulted from the need to compete with the hourly rates required by government contracts.


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High paying federally funded jobs related to therecovery effort are driving up the pay scale onother jobs. As a result, businesses have had topay higher wages to keep (and attract) employees.

In summary, although many businesses in the

area have seen some shortage of employees,employees are moving back to the area. Theemployment opportunities in the area arestrong and opportunities for employment aregrowing. A significant number of employees willbe needed for the expanding Casino industry andsupport employees for the vast number of babyboomers flocking to the Gulf beaches.

EMPLOYMENT BOTTOM LINE

Although the Casino industry is adding tens of thousands of good paying jobs to the area,it is not the only industry that is thriving along the Gulf Coast of Mississippi. We have not eventouched on the infrastructure business and general service industry that is booming.

We can tell you from being actively involved in this market that it is about to explode. Fromsingle family homes in Waveland being lovingly rebuilt by church volunteers, to north countysubdivisions where dozens of houses will soon rise, to Bayside Park. People are really startingto pick up the pace, says Mickey Lagasse, the countys chief building official. I think weregoing to see a huge boom in construction in the next few years.

Two years after Katrina there is still a major workforceaffordable-housing shortage.


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MISSISSIPPI COAST CASINO NEWS

HIGHLIGHTS

Each casino employs 1,600 to 2,000 locals.

Employees drive up to 2 hours each way to work. Casinos are housing employees at a cost of $250+ per night. 11 new casinos are planed resulting in 22,000 more employees with nowhere to live. Local casinos currently generate over $235,000,000 in revenue per month. The Gulf Coast is now Americas second largest gaming destination.

Biloxi Officials Report Gaming Revenues at Record Levels

Biloxis casino industry reported all-time record business last month, with casinos generating $97.3 million in grossgaming revenue. In all, nine of the past 11 months have set records in one fashion or another in Biloxi.

This is certainly great news, Mayor A.J. Holloway said, but at the same time its a double-edged sword. Wedont want the rest of the country getting the idea that were back in business and all is well here in Biloxi and alongthe Mississippi Gulf Coast.

Holloway pointed out thousands of residents are still living in temporary quarters along the Gulf Coast, and Biloxistill has a long way to go in rebuilding the dozens of municipal facilities either destroyed or heavily damaged by thestorm. (More Here)

Construction on Bacaran Bay and Margaritaville Casinos Underway

Work has begun on two new Biloxi casinos, Bacaran Bay, located just northeast of the IP Casino and Resort, and the

new Margaritaville Casino on the beach on the former Grand Casino property. Both properties are scheduled to openin 2010 after construction is completed. The projects represent over $1.3 billion in additional casino investment inBiloxi with more to come.

Hard Rock Casino in Biloxi Opens Ahead of Schedule

6/26/07 Officials with Biloxi's Hard Rock Casino openedSaturday, May 30th, a week ahead of their announced GrandOpening set for July 7th. For months the Hard Rock has saidthey would be opening on July 7th, capitalizing on the 7/7/7date, but officials say they are ready to get started.

The soft opening also benefits the casino in getting servicesand employees up to speed for what will surely be a hugecrowd on the Grand Opening.

Escatawpa's 3 Doors Down will open the 1,400-seat HardRock Live July 5, with Kid Rock playing on July 7.

The Hard Rock Casino includes The Rock Spa, Merge Salon


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with three Coast stylists, a fitness center, beach pool with underwater music, shops and five restaurants, includingHard Rock Cafe.

Hard Rock's original opening was delayed when hurricane Katrina slammed into the Coast August 29, 2005, justdays from the planned original opening of the property, located just next door to the towering Beau Rivage. Moreinformation is available by visiting Hard Rock's website at www.hardrockbiloxi.com.

Treasure Bay Opens New Casino and Hotel

Treasure Bay Casino in Biloxi opened its new hotel andcasino Monday, July 2, marking the return of almost all ofBiloxi's casinos that were damaged or destroyed byHurricane Katrina. Treasure Bay, whose former pirate shipbarge became a Katrina devastation poster child, hasfinished a complete rebuild and remodel of their hotel sitenorth of the highway. The casino has an entirely newtheme, no longer the pirate ship look.

Casinos that are not returning are the President and CasinoMagic. The President's location at the former BroadwaterResort has new owners and Casino Magic was purchasedby Harrah's and will become part of a huge casino complexnear the new Margaritaville Casino that is planned to beginconstruction soon.

Harrah's, Buffett Unveil Plans for $700M Margaritaville Casino &Resort in Biloxi

Harrahs Entertainment and world-renowned singer-

songwriter Jimmy Buffett joined Mayor A.J. Holloway andGov. Haley Barbour May 15 to unveil plans forMargaritaville Casino & Resort, a $700-million-plusinvestment that will be on Casino Row in Biloxi andrepresents the single largest investment in Mississippi sinceHurricane Katrina. The company expects this to be the firstphase of a development that may cost more than $1 billion.

Construction of Margaritaville is expected to begin thissummer with a target completion date of Spring 2010. Theproject is to be constructed on the former Grand Biloxi andCasino Magic property south of U.S. 90 on the BiloxiBeach. (More Here)

Biloxi Mayor Details Casino Industry Status at 2007 Gaming SummitCasinos Expanding Footprint in City

Casino resorts in Biloxi have acquired more than 175 acres in Biloxi in the 20 months since Hurricane Katrina.Biloxi Mayor A.J. Holloway told a Southern Gaming Summit audience meeting in Biloxi early in May that the citywill continue to see extraordinary growth without compromising quality of life (Much More Here)


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LOCATION MAPS

Bayside Park is centrally located Between Biloxi/Gulfport and New Orleans.


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BAYSIDE PARK

HIGHLIGHTS

Located in Waveland, Mississippi.

Bayside Park is a perfect bedroom community. 5,000 buildable lots. We control 1,500 of those lots. Lot prices appreciated from $1,500 to $15,000 during the last 6 months.

Bayside Park is a ready-for-development area meeting all our carefully researched standardsfor growth and creation of value.

30-minute drive from the main casino area of Biloxi, and near four of the new orproposed casinos.

45-minute drive from rapidly-rebuilding New Orleans. Perfect area for service personnel working in the tourist/casino industry... Interstate I-10

creates an easy commute. Excellent housing opportunities for families who dont want to live in the center of the

casino activity. River Walk project approved in nearby Bay St. Louis 1,650 riverfront residential units

and commercial shopping area... investor confidence is high. Casinos and nearby military base form a strong economic base for growth and

expansion. Keesler Air Force Base provides over $1.2 billion in economic impact per year in our

area:o 9,000 military retirees live within 50 mileso 7,900 military and civilian personnel live off the baseo 86,000 military/civilian employees and families live in the surrounding areas

In the works: a casino, hotel, and marina complex on the west side of St. Louis Bay, ashort distance from Bayside Park.

Government-approved architectural patterns available for the construction of affordablenew homes in the area.

Officials have approved ambitious plans for a live-work

complex along the Jourdan River, signaling continued

recovery from Hurricane Katrina and the largest

multistory residential development in city history.

Bay St. Louis Sun Herald, April 10, 2007


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BAYSIDE PARK

Streetscape of Bayside Park

All lots are platted and recorded. All roads, services and utilities are in.


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A PROPERTY MANAGERS VIEW

HIGHLIGHTS

High demand for rental housing now.

Phone will not stop ringing once housing becomes available. There has been quite a bit of expansion already and more is expected. The construction industry alone will drive the rental market in Hancock County for

several years to come.

IS THERE DEMAND?

According to FEMA Housing Unit Damage Estimates as of February 2006 of the 16,897occupied housing units in Hancock County (Bay St. Louis) 90% had damage, 70% had seriousdamage or were destroyed, of the 3,513 seriously damaged renter occupied units, 76% weresingle family units." As of 5/2007 FEMA travel trailers and mobile homes currently in use in

south Mississippi 24,448. Over 20% of the pre-Katrina population of Hancock County wererenters. I can assure you these people are not all in FEMA trailers because that's where theywant to be. Is there demand for rental property in Hancock County, Mississippi YES!

HOW LONG DOES IT TAKE TO RENT?

If I gave you a set time frame I would not be the person you would want to manage yourinvestment! I will tell you that once housing becomes available or availability dates can beadvertised, my phone will not stop ringing. I am stopped every day by former tenants wanting toknow when I will have somewhere for them. I have prior residents who have not wanted theirSecurity Deposits back from before the storm so that they can stay on a list for available

housing. The local Section 8 office will not give out current vouchers because there is nohousing for the 1,500 pre storm vouchers that are in limbo. I would prefer to have a unit pre-leased prior to completion date and hope to be able to work closely with the builders so this ispossible.

IS THERE GROWTH?

Yes sir there is. There has been quite a bit of expansion already and more is expected. TheBayside Park area, where I think you are interested in, is west of Waveland. This area is wherethere is proposed casino development; it is close to the Stennis Test Site (NASA facility) and isless than 45 minutes from New Orleans. The Port of Bienville, an industrial port facility, is very

close by. Stennis is developing a new Research and Development Center which is expected tobring in several new high tech companies. The construction industry alone will drive the rentalmarket in Hancock County for several years to come.


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CASH FLOW and EQUITY ACCUMULATION

188%

450%

856%

0%

500%

1,000%

1,500%

2,000%

2,500%

1 2 3

TOTAL RETURN ON INV(20 years

$300,000

TOTAL EQ(20 year

188%

249%

313%

379%

450%

0%

50%

100%

150%

200%

250%

300%

350%

400%

450%

500%

1 2 3 4 5

TOTAL RETURN ON INVESTMENT (ROI)(5 years)

$71,442

$80,000

TOTAL EQUITY(5 years)

ASSUMPTIONSThis model is based on an INTEREST ONLY first loan.Rent increase is 50% of the Appreciation.Assessed Tax Value is based on 80% of the purchase price.

Loan rates vary based on many factors. Consult your lender.Insurance rates vary widely. Consult your carrier.Personal income tax rates vary. Consult your CPA.v 3.3

$37,500

$71,442

$124,3

$0

$50,000

$100,000

$150,000

$200,000

$250,000

1 2 3

$37,500

$45,375

$53,643

$62,326

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

1 2 3 4 5

DISCLAIMER: The information in this "Cash Flow and Equity Accumulation" worksheet is for estimation purposes only. All information should be independently verified. Consult a licensed t

purchase or sale decision. All figures are projections unless otherwise indicated. No guarantee is made as to its accuracy or reflection of performance.


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FINANCING

$126,400 TOTAL FOR TURN-KEY HOUSE AND LOT

$4,500 Builder deposit (includes $500 lot deposit) *

495 Mortgage application (with builders lender)

8,005 Balance due at close (approximately 30 to 45 days)

$13,000 Total cash required (depends on Personal Credit Profile)

* Return with your completed Purchase Pack.

Cash requiredincludes a $1,000 discount by having

your completed package returned within 1 week.

State Income and Full Doc loans available through builders lender.

Credit score of 680+ required.

As always, please remember that lending guidelines and program availability are subject to change.

Builder pays $2,250 of closing costs!

Builder pays up to $1,500 of interest!


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MODEL ELEVATION

HIGHLIGHTS

3 Bedrooms, 2 Bath, 1,457 sq ft home.

$126,900 complete with lot. Leases for $1,225 per month. Positive cash-flow.

Elevation A


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FLOOR PLAN

HIGHLIGHTS

3 Bedrooms, 2 Bath.

1,457 total sq ft under roof. Open floor plan.


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HOME FEATURES

Construction Permitting and Impact Fees * Monolithic slab on grade **

Builders Risk insurance

Surveys and Lot Preparation

Boundary stakes Foundation and final

Structural and Construction Features and Materials Concrete footings Steel reinforcement for footings as per engineering Site Clear, Hauling, and Fill Allowance up to $4,000 *** Termite soil pre-treatment Wood framing Tie-down straps (wind load) per engineered drawings Pre-engineered roof trusses 30 year mildew resistant dimensional roof shingles Ridge vent for roof

Oversized galvanized metal flashing Framing lumber culled and crowned for straightness 15 Seer high efficiency air conditioning unit R-30 blown insulation in ceiling R-13 insulation on exterior framed walls R-19 insulation in knee walls drywall on all ceilings and walls (screwed) Moisture resistant board (green board) in tub/shower areas All ceilings and walls knock down drywall finish Vinyl siding and decorative shutters Vented white aluminum or vinyl soffit and fascia Aluminum or vinyl gutters and downspouts, where required

by code Culvert pipe and installation as required Up to 550 sq. ft. allowance for concrete driveway & walk ***

Kitchen Components and Cabinetry All appliances are manufactured by Whirlpool with white

finish and are Energy Star rated 21 cubic ft. refrigerator with icemaker, range, dishwasher,

garbage disposal, and range hood Wood grain kitchen cabinets with Wilsonart laminate

countertops from Builder supplied choices

Electrical Items 200 AMP service at meter Electric as per code Pre-wired for 2 phone jacks and 2 cable outlets per plan Smoke detectors by code Exterior receptacles per plan Bathroom exhaust fans vented to outside All recessed can fixtures as per plan

Ceiling fan prewired per plan Light fixtures by Builder.

Plumbing

Schedule 40 PVC drain, waste & vents 40 gallon quick recovery water heater

Exterior hose bib(s) per plan Elongated water closets in all bathrooms (white) by

Builder Fiberglass tub and/or shower units per plan by Builder Moen Chateau fixtures in chrome throughout by Builder Stainless steel 50/50 kitchen sink with chrome Moen

faucet

Bathroom Features Decorator type vanities with full sized mirrors Wood grain cabinets with Wilsonart laminate

countertops Mirrored medicine cabinets

Floor Coverings

Standard wet areas to be tiled from choices supplied byBuilder

Bedrooms, closets, great room, and dining roomcarpeted from choices supplied by Builder

Water System

Complete well water system and connection to sewer

Additional Features of Your Home Metal Insulated Entry doors Deadbolt locks on all exterior doors White single hung aluminum or vinyl windows

throughout 2 colonial casing and 3 colonial base, mitered

cut base trim 6 panel 68 interior doors High grade paint in flat finish, high grade 35 year

silicone caulk, interior trim in semi-gloss enamel 4,000 sq. ft. of sod with initial fertilization*** Landscaping package by Builder Attic access Front porch under truss with concrete floor Ventilated closet shelving by Builder Window coverings by Builder Hurricane shutter package where required by code Mailbox and house numbers

Pricing based on a 5,000 sq. ft. standard lot in Bayside Park.

The builder reserves the right to substitute materials of

similar value. Features are subject to change without notice.

* Permit and Impact Fees are calculated at rates provided as of 8/1/07. If any increase in fees occurs after this date, or if any new fees areput in place, Buyer will be responsible for any difference in additional fees.

** Increases in costs related to changes in specified construction materials or procedures, which are due to new codes and/orCity/County/FEMA requirements, will be the responsibility of the Buyer.

*** Amounts over any allowance will be the responsibility of the Buyer.


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PHOTOS

One of our models nearing completion. Interior framing stage.

Ceiling and duct work.


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NEWS ARTICLES

HOUSING BOOM ON THE HORIZONMSNBC Housing Boom - 05/03/07

WAVELAND, Miss. What sofar has been spotty progress inreplacing the thousands ofdwellings wiped out acrossHancock County by HurricaneKatrina appears poised to morphinto the bigges t residentialconstruction boom the countyhas ever seen.

From single homes in Wavelandbeing lovingly rebuilt by church

volunteers, to north countysubdivisions where dozens ofhouses will soon rise, Peopleare really starting to pick up thepace, says Mickey Lagasse, thecountys chief building official. Ithink were going to see a hugeboom in construction in the nextfew years.

For weeks and months after the storm, there was very little action as builders and owners of destroyed ordamaged homes waited for lots to be cleared, insurance companies to settle -- or not -- and new buildingrequirements to become clear.

By late April, eight months after the storm, Bay St. Louis had issued permits to replace or build onlyabout 14 or 15 homes, says Donna Billingsley of the building department. The pace of repair work hasbeen much more rapid, with a total of 2,065 permits issued, and Billingsley believes the town is about toexplode with residential construction because its been crazy lately with homeowners and buildersrequesting information.

Home-building in neighboring Waveland also got off to a slow start after Katrina, but 51 houses are nowunder construction with 16 more in the wings, says chief building official Otis Sharpe. Were blowing andgoing.

'I don't think I will be able to keep up'

Sharpe says he spends most of his week answering questions for homeowners and builders at the citysmakeshift complex of portable buildings at Coleman and Central avenues, helping them apply for permitsand fill out other paperwork. He checks plans and blueprints on the weekends. Soon, I dont think I willbe able to keep up, he says.

Dan McManus' home on Nicholson Avenue is among 51 houses now under construction in Waveland.County building officials also have been busy, says Lagasse, with 250 to 300 new homes started inunincorporated areas since the storm. Thats lower than the pre-Katrina average of permits for about 80

This home in Waveland is one of the few beachfront mansions rising from the ruins inHancock County. (Jim Seida / MSNBC.com)


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new homes and mobile homes a month, but Lagasse expects recent subdivision applications to makethat number shoot up.

And two giant multi-housing projects also could soon be under way, one bringing more than 1,000 newapartment units to the Lakeshore area and 1,200 condominiums to Bayou Caddy. The condos, to be builtnear the new Silver Slipper Casino, remain on hold while opponents appeal an adverse ruling on theirlawsuit.

Another big player in the new housing game will be Habitat for Humanity, which plans to help up to 1,000families in the hurricane zone build homes with its sweat-equity, interest-free-loan program.

The Christian-based nonprofit is just getting started in building homes on the more than 50 lots it hasacquired in Waveland and Bay St. Louis and hopes to buy a large parcel that could support up to 100homes in Bay St. Louis, according to local Habitat director Wendy MacDonald.

Expedited zoning process urged

MacDonald, itching to get Habitat clients out of FEMA trailers and into new homes as soon as possible, ishoping the planning and construction process can be speeded up in Bay St. Louis through more frequentmeetings of the citys zoning board, an idea she says the city council agreed to explore last week. The

current single monthly meeting means builders, including Habitat, have to plot some of their moves five toseven weeks in advance of picking up a shovel.

Across the storm area, builders say the biggest challenge to moving more quickly is not government redtape. Our problems are labor and materials, says Don Halle, secretary-treasurer of the Home BuildersAssociation of the Gulf Coast. Were looking at it right now like were not really into the full rebuild yet.

Halle, an owner of Gulf Construction Co. and a member of the state board of contractors, says work hasreally picked up for his firm in the last month or two, as owners of demolished homes have received theirinsurance settlements, signed up for grant money and pulled the trigger on rebuilding. Still, many peopleare still taking a wait-and-see attitude, especially along the beach. Theyre real unsure about whattheyre going to do, he says.

Despite that, Halles firm, which typically builds 50 homes a year but is quite capable of doubling that inthe coming year, is getting booked up like most other builders. If it gets any worse from here, its goingto take a long time to get a house built, he says, from an average of five to six months to eight or nine.

Watching over the push to rebuild in Bay St. Louis is Rhode Island architect Bill Dennis, who led theplanning process there as part of Gov. Haley Barbours Commission on Recovery, Rebuilding andRenewal.

'Some areas could be better than ... before'

With prodding from a core group of residents, land owners and builders to preserve the towns pre-Katrina charm and character, Dennis said after a recent trip to town, some of the areas could be betterthan they were before.

As to quickening the pace, Dennis has helped interested builders in the hurricane areas explorepossibilities for manufactured housing. And he too points to issues with insurance, codes and shortagesas hobbling efforts so far. He also expects many folks to wait through another storm season, which startsJune 1, before fully committing to rebuilding.

You will see a lot of thing start in October, November. I would expect by next spring, you will see a lotmore, Dennis says. I think right now people are planting bulbs and in the spring well see flowers.


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KATRINA DRIED UP RENTAL MARKETWednesday, May 2 by Mike Stuckey

WATCH VIDEO:http://risingfromruin.msnbc.com/2007/05/rentals.html (click on link)

WAVELAND, Miss. -- Thegolden years were looking goodfor Theresa James, 82, motherof three, grandmother of five,great-grandmother of four,widow, last surviving child ofnine and lifelong resident of theGulf Coast.

Her big house in ClermontHarbor sold, leaving her with atidy but sufficient monthlyincome rolling in. She was

happily at home in a $585-a-month apartment on ThirdStreet south of downtown BaySt. Louis.

There were a few ups anddowns with her health and such,but she was at the peak of anartistic career, painting colorful oils of jazz funerals, shrimp boats and cotton fields. Then came Katrina.The hurricane took all of her belongings and landed her in a 150-square-foot FEMA trailer on a friendsnewly vacant lot in Waveland.

Now this Toyota-driving, white-haired grand dame of the Hancock County Senior Center, sharp as a tackand sunny as an August afternoon in her native Galveston, is among tens of thousands of renters in thehurricane zone who lost their homes to the storm and whose prospects of finding new ones are generallyfar worse than residents who owned their homes.

Thats because while billions in federal dollars are being handed out to directly help rebuild single-familyhomes, almost none has been made available so far to replenish rental housing in the hurricane zone. InHancock County 20 months after the storm, not a single nail has yet been pounded to replace any of thehundreds of multi-family subsidized and market-rate rental units that were lost to the hurricane.

As a result, thousands of renters remain in FEMA trailers or other temporary housing as they doelsewhere in Mississippi and Louisiana. To add insult to injury, rents are skyrocketing on the few unitsthat have been renovated. Others, like Theresa James apartment, are being turned into condominiumsthat their former tenants have no hopes of buying.

'THE MOST POWERLESS GROUP'

Rental Katrina victims are essentially the most powerless group of all in trying to fashion a recovery,says Reilly Morse, an attorney with Mississippi Center for Justice, which advocates for racial andeconomic justice along the coast. They have to depend entirely on landowners and land developers tomake something happen.

The loss was staggering. In a state where nearly 30 percent of the residents are renters, 72,116 renter-occupied units were damaged or destroyed by Katrina, according to Gov. Haley Barbours office.

VIDEO: Reilly Morse, of the Mississippi Center for Justice, discusses the lack of rentalhousing available for Hurricane Katrina survivors on the Mississippi coast.


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In Hancock County, where the pre-Katrina number of renters ranged from 20 percent in the county as awhole to more than 35 percent in Bay St. Louis, there are no precise figures on how much rental housingwas lost. All 176 public housing units in Waveland and Bay St. Louis were destroyed or damaged beyondrepair. Hundreds of other apartment units were knocked out of commission either permanently ortemporarily. An untold number of additional rental units were among the thousands of single-familyhomes that were destroyed.

Of the $5.5 billion in federal Community Development Block Grants that the state is handing out to spurpost-Katrina rebuilding, a huge share has so far gone to homeowners. According to the states latestfigures, $869 million was distributed to 12,413 families in a first round of grants. Another 10,000homeowners will receive funds in a second round that will also distribute hundreds of millions.

When it comes to rentals, however, just $100 million has so far been allocated from the grant pool. It isgoing to five public housing authorities along the Gulf Coast, including the agencies in Waveland and BaySt. Louis that have been combined since the storm.

But that money, less than 2 percent of the $5.5 billion in federal grants, falls short of the $111 million inlosses suffered by the housing authorities. And it will likely be many months or years before constructionon replacement public housing units actually gets under way. Precise timetables were unavailable from

officials with the new Waveland-Bay St. Louis Housing Authority, who said they were too busyconsolidating offices to meet with reporters.

PLAN TO BOLSTER RENTAL HOUSING UNVEILED

In late April, Gov. Barbour announced a new plan to bolster rental housing in the hurricane zone. Some$263 million in forgivable loans would be offered to owners of rental properties with four units or less. At$30,000 a unit, the state expects 5,000 rental housing units could be built or repaired under the program,and rented to tenants who meet certain income limits. But the program has yet to win final approval and itremains unclear if and when it could start.

So far, private developers have not shown much interest in building new apartment complexes. BuzOlsen, who currently oversees the Bay St. Louis building department, says no permits have yet been

issued in his city, although there have been some applications filed for tax-credit programs that couldeventually see about 450 units built. Again, that could be years away.

In Waveland, one developer has begun site preparations for four units on Nicholson Avenue and anotherhas gotten the green light to start work on a 100-unit complex at Waveland Avenue and Highway 90, saidbuilding official Otis Sharpe. Other than that, he has merely had a lot of inquiries about restoring anumber of heavily damaged complexes along Waveland Avenue.

No permits have been issued in unincorporated areas. Its all still on drawing table, said HancockCounty building official Anthony Cuevas.

DEMAND FAR OUTSTRIPS SUPPLY

The situation has created a rental market thats tighter than a Waffle House lobby on Sunday morning.Thousands of renters like Theresa James who is on a waiting list for a Catholic-operated seniorapartment and a Habitat for Humanity home -- are still waiting it out in FEMA trailers, according to Olsen.

Others, like welder Nathan Cranmer, 27, who grew up in Kiln and lost his $900-a-month rental home onSt. Charles Street in Bay St. Louis in Katrina, bunked in shelters, trailers and with relatives while lookingfor affordable new digs to rent. A year after the storm, he found one place, but moved out in disgust afterfive months of living under a leaky roof. Just recently, he was delighted to find a little bitty apartment inWaveland for $700 a month.


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The shortage concerns everyone here Olsen said. We are a blue-collar community as well as anupscale community. We dont have that affordable side.

The lack of urgency and government support to restore rental housing does not surprise Morse of theMississippi Center for Justice. Theres an inappropriate moral attitude about renters in some circles thatisnt justified, he said. In Gulfport and Biloxi in neighboring Harrison County, he pointed out, even whennew complexes have been approved through tax-credit financing schemes, they have been blocked bynot-in-my-backyard neighbors who fear that affordable housing will bring social problems that slashproperty values.

I do know that thats a problem, said Donna Sanford, disaster recovery director of the MississippiDevelopment Authority. She said the state has formed a team to work with local governments on some ofthe NIMBY issues. I think we are doing a lot of things, she said, touting grant money spent oninfrastructure that could also help foster construction of new rental housing.

In the meantime, Theresa James waits it out in her trailer, happy to have a roof over her head and herindependence. FEMA recently extended the time period that Katrina victims can use the trailers rent-freeand nobody expects tenants to be forced out of them any time soon.

James does her painting at the senior center in Bay St. Louis, so studio space is not an issue. But shes

afraid to use the propane stove and there are some things that she has no room for in the trailer.

I certainly do miss my recliner, she says.


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KATRINA: WHERE THINGS STANDHurricane Katrina Continues to Affect Mississippi's Gulf CoastAug. 29, 2007

It's been exactly two years since

Hurricane Katrina hit the GulfCoast, and there are many waysto measure progress -- fromcold, hard stats to the anecdotalstories you hear on the ground.But there are several hopefulsigns for the people who still callthis area home.

This year, 446,000 people live inthe six lower coastal Mississippicounties worst hit by Katrina.That's just 12,000 less thanbefore Katrina. But the signs ofstruggle are just as clear.

The devastation is easier to seewhen viewing the 80 miles ofcoastline in ruin from the air.

"We're like the hand of God thatwiped the Earth clean,"observed Biloxi Sun Herald publisher Ricky Matthews from the perspective of a helicopter.

Katrina destroyed 70,000 homes, just 10 percent of which have been rebuilt. Seventeen thousandtemporary trailers, half the number originally provided by FEMA, are still in use.

Smaller towns are banding together, still needing help, but really pulling themselves up.

Despite the obstacles, workers are returning. Eleven of Mississippi's 13 casinos are back, employing18,000 people -- 1,000 more than they did pre-Katrina. And the population on the Gulf Coast is up to 98percent of what it was two years ago.

Many of the smaller, hardest hit communities still rely on volunteers to get by, and they need moredoctors and nurses. In Pass Christian, Miss., hometown of "Good Morning America's" Robin Roberts,even the police and fire department still work out of temporary buildings, a reminder of how much needsto be done.

But among these special Gulf Coast residents the rebuilding spirit is still here.

"The most important thing we learned from Katrina was that buildings don't make a community, peopledo. Once you understand that, leaving was never a choice," Matthews said.

Hurricane Katrina destroyed 80 miles of Mississippi's Gulf coast. (Newscom)


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(800) 611-3060

ADDITIONAL INFORMATION

WEBSITES

www.mississippi.govwww.mississippi.org

www.gulfcoastnews.com

www.sunherald.com

www.mississippirenewal.com

www.southmississippi.biz

www.governorbarbour.com

http://www.iht.com/articles/2007/01/24/business/insure.php

www.governorscommission.com

www.mscoast.org

www.mswestcoast.org

www.hancockcountyms.org

www.hancockcountyms.gov

www.hancockchamber.org

www.mississippicasinos.com

APPRAISAL

Available upon request.

GOOD FAITH ESTIMATE


MISSISSIPPI SMALL RENTAL ASSISTANCE PROGRAM


MISSISSIPPI SMALL RENTAL ASSISTANCE APPLICATION



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(800) 611-3060

CONCLUSION

Hurricane Katrina had a devastating impact on the state of Mississippi and specifically theCoastal Counties. Over 60,000 homes were destroyed and almost half of the rental units that

existed in this area before the hurricane were completely destroyed and are now uninhabitable.Because of this, the single largest issue facing the state of Mississippi and the agenciesresponsible for the recovery effort is affordable workforce housing. Without affordable housingclose to the major center of employment, economic growth in the area will never reach itsprojected potential.

This point was recently raised by Brian Sanderson, president of the Gulf Coast BusinessCounsel to the US House of Representatives and more recently has been addressed by LauraDavis, President to the newly formed Mississippi Renaissance Corporation. The demand forskilled workers has never been greater, and their short supply is most often due to the lack ofaffordable housing within reasonable distance of work. Many of the over 10,000 workers whobuild the most advanced ships for our Navy and Coast Guard in the area have limited or nohousing options in the wake of Hurricane Katrina. As late as the fall of 2006, 5,000 to 10,000people were still living in tents, another 30,000 to 40,000 families in FEMA trailers and a total of100,000 families were still displaced.

Despite these events, revitalization is underway, homes are being built, insurance checks arebeginning to flow to homeowners and as of January 2007, officials in Mississippi wrote 11,827federal assistance checks to homeowners totaling $665 million dollars. The recovery which wasslow to start is moving forward bringing with it economic opportunities for those who want totake advantage of a potentially significant growth cycle.

Norada Real Estate in conjunction with its builder partners have investigated variousopportunities in select areas of the Go Zone. We seek to develop value by building projects oninexpensive land in the path of growth. Since we start our construction ahead of the curve, theintention is to create value and equity by developing new housing in select areas.

For information on how to invest in the area contact Norada Real Estate toll free: 800-611-3060.

Timing is everything with all investment opportunities. The same is true here. We feel this isa great investment opportunity for those that get involved at this stage. To gain maximumbenefit from this investment opportunity we encourage those interested to lock in today.

Dont overlook the fact that Income Property owners can qualify for the GO Zone Incentivesincluding the 50% accelerated depreciation incentive that translates into a substantial taxwindfall. This investor incentive can be carried back 5 years and forward 10 years.


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HOW DO I GET STARTED?

Call or email us to request your Investor Purchase Pack.

(800) 611-3060

[email protected]

Documents

America's Hottest Real Estate Investment Market - Mississippi