introducing ts reis revised 08 26 2016
TRANSCRIPT
Investment Opportunity Structures
TS REIS provides Alternative Investment in Real Estate for investors who would like to passively diversify into Real Estate
Equity Investor (Ownership Interest) Historical Performance (Typical Annualized Return)
Private Equity Funds (PPO), Limited Partner - CLOSED 15%+ (Fund 5 Year Average)
Direct Property LLC, Member 0-30%+
Debt Note Investor / Hard Money Loan Historical Performance (Typical Annualized Return)
Fixed Rate Note - 3 Year Term 5.00%
Investment products are: Not a Deposit • Not FDIC Insured • Not Insured by any Federal Government Agency • Not Guaranteed by a Bank • May Go Down in Value. Past performance is not a guarantee of future results.
1. Geographical Focus
w Upper Midwest.
w Concentrated inside 250 mile radius ofOmaha, NE
w Expanding to 500 mile radius of Omaha, NE.
2. Property Type
w Size: 100 units or larger.
w Specialty
» Manufactured (Mobile) HomeCommunities
» Apartment Buildings
» Ag Land
w Experience in Storage Facilities, Car Washes, RV Parks, Parking Garages, Strip Centers, and Residential
Investment Property Types
1. We “make our return” at the time of acquisition,not when we sell.
w We are not “market appreciation” driven buyers.
w We buy undervalued, mismanaged or undermanaged, and ‘capital starved’ property.
2. Long-term minded
w We will buy property that “does not work” on day1 or day 365. (The first year or two we may not expect to cash flow, as we improve the asset by injecting appropriate management and financial capital.)
w We invest with the long-term in mind, but keep an open-mind to the quick turn opportunity.
3. Live by 4 of the 5 ways to make money in realestate investing:
w Cash Flow - Capital is king, Cash Flow is master of the universe.
w Amortization - Tenant pays the loan.
w Positive Leverage - Responsible use of debt financing to leverage returns.
w Tax Benefit - Use IRS rules to maximize tax deferral or avoidance. (Depreciation, 1031, Capital Gains Rate, Interest Expense, etc.)
w Appreciation - Market Driven
Investment Strategy - Foundational Principles
1. Phase I - Turn Around Period: (Year 1-2)
w Focused on actions to create long-term value.
w Injecting appropriate monetary capital andmanagement expertise.
2. Phase II – Harvest Return: (Year 3 or before)
w Hold for ongoing income generation, or
w Explore short-term velocity opportunity:
» Monetize value increase through sale.
» Monetize value increase throughleveraging property’s new value.
Investment Strategy - Actionable Principles
Assets Under Management
AUM: $50,000,000+
1500 Acres - Iowa Ag Land
300 Lease Parking Spaces
200+ Apartment Doors
1300+ lots in Manufactured Home Communities
10 Commercial Buildings (70,000 SqFt)
Property Examples
Property Description
Location Aquisition Date
Price Per Unit Purchase Info Annual Income Occupancy Status Sale Info
144 Unit Apartment Complex
3 City, Western Iowa
1Q 2015 $13,500 Receivership at Sealed Bid Auction $780,000 85% Recent Purchase$1,940,000
Operating
315 Lot Mobile Home Community
Metro Area, Kansas
3Q 2015(Pending)
$8,387.00 Absentee Owner in 70s, Mismanaged for 10+ Years
$480,000 50% (Peaked at >90%)
Under Contract/Due Diligence
Closing end of June 2015
212 Lot MHP Eastern Nebraska25K Pop Community
2007 $10,967 Purchase through 1031 Exchange $710,000 95% Long Term Hold Operating
45 Lot MHP Des Moines, IA Suburb
2012 Purchased for $83,000
Bank Owned Real Estate $62,000 Gain 65% Short Term Velocity Sale
Sold in 11 months for $62,000 Gain + operating cash flow
Western Estates MHP
Brookings, SD 2016 Bank Owned Property $401,640 90% Long Term Operating
Residential Duplex Park, 30 units
Central Iowa 2013 Purchased for $2,400,000
Private Property $300,000 95% Low Performer Sold 12 months later for $2,800,000, Positive cash flow during holding period
300 space Parking Garage
Omaha, NEMSA
2013 Purchased for $150,000
Abandoned/Condemned Property, (New Construction cost $2.5-3.0MM) Rehab for $500,000
$78,000 Low Performer Negative annual return in year 2 operating, rent count is still increasing and will make net cashflow at sale of property.
Purchased for $3,750,000
Company ProfileTS REIS, Inc., an affiliate of the TS Banking Group, was
established in 2009 as a Total Solutions Company for real estate investors. TS REIS provides investors the opportunity to add real estate exposure to their investment portfolio, through a range of investment structures, while affording the investor the luxury of remaining a passive investor as we manage the entire investment process from acquisition to sale, financing to property management, and everything in between. Including investment analysis, acquisition, financing (debt/equity), asset protection, property management, accounting, operations, as well as the marketing and sale of the property.
With the founding partners combined 40 years of experience in real estate (acquirer and property manager) and financial services (owned and operated financial institutions) along with their growing team of property managers, operations, and accounting staff, TS REIS is fully equipped to meet the specific needs of each unique investment.
Our investments encompass a wide spectrum of real estate types, with the company’s niche being focused in apartments, manufactured/mobile home communities, and agricultural property.
TS REIS Inc.
Vision
• To financially partner with investors for superior risk-reward opportunities.
• To provide investors passive diversified exposure to real estate.
• To revitalize communities through real estate investing.
Mission
• We financially partner with investors by providing different investment structures to accommodate their risk and return appetite, while specializing in the real estate sectors of apartments, manufactured/mobile home communities, and agricultural property.
• We provide investors passive diversified exposure to real estate investing by handling the management of the full spectrum of activity related to investing and managing real estate property.
• While partnering with investors, we also are committed to revitalizing communities, by often investing in and rehabbing distressed or non-performing properties.
Scott Simpson Founding PartnerScott serves as President for TS REIS and is a founding partner. He joined the TS Banking Group in 2008, after selling a Mortgage Company into the Group, and then partnering to launch TS REIS, Inc. Scott has been in the real estate business for 25 years, starting with Principal Financial Group.
Scott’s real estate experience ranges from mortgage underwriting to investing in and managing various classes of real estate.
With a 25 year proven investment track record of achieving success across various property types, sizes, and geographies; Scott has demonstrated his investment and property management comes down to disciplined skills and practices and leaves very little to “luck”. Scott has mastered the skills required to do turnaround management of distressed and underperforming properties, and has been involved in owning and managing over 3000 units (apartment doors, park home lots, etc.) of property.
Scott holds a BS in Business Administration from Drake University and has been through Master level real estate and finance training. Scott’s skills for hunting extends beyond real estate to also include big and small game in a variety of hunting and fishing destinations.
Partners & Managers
Joshua Guttau Founding PartnerJosh is CEO and Owner (Third Generation) of the TS Banking Group, and acts in the role of CEO for TS REIS. Joining the TS Banking Group in 2003, Josh has led the expansion of the group (20-115 FTE, banking assets $50-$550mm, WM&T assets $10-$300mm), launched a multi-bank acquisition
strategy, and is a Founding Partner of TS REIS and TS Capital.
TS Bank earned national rankings for performance (#1 2009, #3 2010-2011), received Fiserv’s Proven Performers Award (Top 300 for 5 years, 2014), Model Technology Bank Award (2009, 2010), and Iowa Small Business Top Workplaces (2011-2014, #1 in 2012).
In 2007, the Group began allocating 10% of profit to community reinvestment. In 2009 the “TS Institute: Financial Literacy for the Future” launched (K-12 school district pilot project) and now serves multiple school districts and consults with agencies at the state and national level on financial literacy.
Josh possesses an MBA in Finance & Strategic Planning, Iowa State University; Professional Masters of Banking, Louisiana State University; teaches at Graduate School of Banking Colorado; and uses his BS degree in Animal Science/Agronomy to start the family’s 400hd cow/calf ranch in the hills of western Iowa.