US Property Investments The Facts

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The FBC Group source comprehensive investment opportunities for positive cash flow investment options, to best suit your circumstances and maximise your positive cash flow return. We are leaders in and passionate about equity development, mortgage minimisation and wealth creation. We have secured various options as the best cash flow positive strategies available in today’s investment market to assist you to attain your financial goals.

Operating from head office on Queensland’s Sunshine Coast - Australia, the FBC Group provides a range of specialised services and a network of investment professionals in South Africa, Australia and New Zealand, as well as China in the near future. We don’t just claim to do a bit of this and a bit of that, the strength of our company lies within the united services we provide our clients. Our advice has both credentials and a successful track record. We offer expert advice and professionally researched options in all aspects of investing.

We will explain the benefits of positive cash flow investing as opposed to the standard practice of negative gearing and we will educate you on why

positive cash flow investing is a more powerful and appropriate approach to your financial future.

If you wish to escape the everyday lifestyle of financial struggle. If you would like to reduce your debt, minimise your mortgage, grow your wealth

or just plan for a brighter and secure future, then contact us today and we will help you achieve those goals.

Alistair McCreathInternational Property Specialist

CONTENT

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04 WHY OFFSHORE PROPERTY

06 WHY CHOOSE FBC? WHY DO FBC GROUP SPECIALISE IN DETROIT

08 THE BENEFITS

09 OFFSHORE PROPERTY INVESTMENTS

10 THE SECTION 8

12 ABOUT DETROIT | A CITY UNDER RENOVATION SPECIFICALLY WHY METRO DETROIT?

14 MEET OUR TEAM

15 TESTIMONIALS

16 9 COMMON INVESTMENT MISTAKES... TO AVOID

17 COMMON QUESTIONS

18 TESTIMONIALS

20 CAPITAL PROTECTED INVESTMENTS

20 PROPERTY DETAILS EXAMPLE

24 CONTACTS

While every effort has been made by FBC Group to ensure the accuracy of the details contained within this booklet at the time of printing, contact should be made directly with FBC Group to confirm all up to date facts and figures. The details in this booklet are intended to be a guide only and should not be relied upon as final contract figures. Figures may vary in time due to elements such as rising property prices or fluctuating currencies.

All figures contained within this booklet are listed in US dollars.

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2012 Issue

Why Offshore Property Investment ?Investment property which provides immediate equity is an exciting one and the investment opportunities being presented to us in the USA as a result of the current markets are astounding.

Investors seeking long term investments see this as an opportunity to generate

a positive cash flow and welcome the inevitable prospect of capital growth once

property market values return. But where have those precious home owners gone?

Well they have now become renters and there is now a high demand for rental

properties, which in turn has created a great opportunity for the landlords/investor

market.

As a result, these home owners have had to foreclose on their properties, increasing

the foreclosure market and giving savvy investors the opportunity to purchase real

estate at heavily discounted prices.

The key to optimum profitability is recognising the low point in house prices and

investing as soon as possible. As a result of the GFC, real estate prices in the

USA have crashed causing some property owners to now owe more on their

mortgage, than their home is actually worth on the property market.

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Why Offshore Property Investment ?

Choosing a property where the rental demand is high is nothing new when it comes to investing. However, America is fortunate enough to have a Government backed rental program called ‘The Housing Choice Voucher Program’ also known more commonly as ‘Section 8’, which is there to help supplement American citizens in times of hardship.

With the rental market being flooded, landlords now have the option of

being choosy when it comes to selecting tenants as well as the level of

rent they receive (within reason) on their rental property.

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The FBC Group are not just real estate agents. We are International Property

Specialists and have been trading in the American property market since

November 2009. Under the one roof, you’ll find answers and qualified guidance

through all aspects of international property investment. With the opening of

our international branches, we can now offer our international investors the

same rewarding investment opportunities we offer here in Australia.

Our goal isn’t to sell you a quick property, it is to grow your wealth through

careful planning and clever, well structured investment strategies. If you want

to retire wealthy through strong, stable investments, we’ll guide you every

step of the way.

Established on Queensland’s Sunshine Coast,

the FBC Group comprises a staff of qualified

Real Estate Agents, Market Analysts and

a network of investment professionals.

Our advice is substantiated by our

credentials and successful track

record.

Through extensive research,

testing and sheer initiative, we’ve

developed a system called “The

Wealth Accelerator”. Tried and

tested over the years, the success

rate is undeniable. Gradually

transforming a client’s property

portfolio tenfold can be achieved

with a starting point of no more than a little equity in one property, and the right

advice.

We source the right property for you, manage the rentals (USA), guide your

finances and most importantly...Grow your wealth.

W h y c h o o s e F B C ?

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We have conducted thorough research on all of the major cities in

America and have concluded that Detroit has the most to offer in terms

of capital growth and potential. In addition the city itself is growing

rapidly, aided by structural support and backing of the government.

W H Y D O F B C G R O U P S P E C I A L I S E I N D E T R O I T ?

Home to the three major automobile companies in the world, Detroit is

also known for its large shipping trade. As such we believe that this city

will be the most profitable to investors and to support this we have our

own office in Detroit, and have constant access to all the services that

other companies have to outsource. This ensures that we are constantly

in touch with local development.

With a very strong investment history spanning throughout Australia, Asia

and South Africa, FBC Group are just the ally you need to ensure the

profitability and ongoing support of your investment.

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CASH FLOW POSITIVE

Homes fully renovated to USA Government Code

Fully tenanted

Government backed rental system on many houses

Use your income to fully repay your loan in approx 7 years

High return/Low risk

A selection of investment homes to choose

T H E B E N E F I T S

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Offshore Property Investment

R E N O VAT E P R O P E R T Y

Renovations, taxes & legals included

in purchase price

R E N T O N T H E O P E N M A R K E T

(very high demand)

AV E R A G E R E N TA L R E T U R N

Approx $850USD/m

Return of Approx

12+%P.A

=

P U R C H A S E I N V E S T M E N T

P R O P E R T YCost $60,000USD(Average price of

house)

Not every property is worth buying because it is priced low. At FBC the quality control is second to none. We only purchase homes that have passed extensive checks including quality of the property, its location, past history and the surrounding neighbourhood. Many homes that have been offered for consideration have been rejected as they didn’t meet our strict requirements to ensure quality and long term profitability for our investors.

We specialise in properties with highest rental demand being 3-4 bedroom freehold homes either single family or multi family homes in safe and appealing neighbourhoods. Each property is then fully renovated to meet the high USA Government standards with the renovation costs completely covered in the purchase fee.

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The Section 8G O V E R N M E N T G U A R A N T E E ( S E C T I O N 8 T E N A N T S )The US government offers a dream opportunity for landlords of eligible properties, commonly referred to as Section 8. All properties presented by FBC are eligible for and targeted to Section 8 tenants, strengthening the rental security of the investment.

In many localities, the PHA waiting lists for Section 8 vouchers may be thousands of families long. Waits of three to five years to access vouchers are common, meaning the demand is extremely high for eligible properties. This also means that families are determined to care for the properties to ensure that they do not lose their benefits.

S P E C I F I C D E TA I L S / B E N E F I T S O F S E C T I O N 8The Housing Choice Voucher Program is a type of Federal assistance provided by the United States Department of Housing and Urban Development (HUD) dedicated to sponsoring subsidised housing for low-income families and individuals. It is more commonly known as Section 8.

Under the voucher program, individuals or families with a voucher find and lease a unit of their choice, which may or may not equate to the full voucher value. (eg: The voucher may be $850 in value and the rent may be $950. The tenant will therefore pay a co-payment of $100). The PHA pays the landlord the remainder of the rent over the tenant’s portion.

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The government pays the majority of the rent, not to the renter but directly to the landlord.

SECTION 8 BENEFITS TO LANDLORDS

Combining high property demand by tenants, government guaranteed

rent and an increased tenant willingness to care for the property, the

benefits create overwhelming security for the investor.

All subsidised units must meet Housing Quality Standards

inspections, thus ensuring that the family has a healthy and safe

place to live (All FBC properties pass these requirements).

Prompt regular payment from the Public Housing Agency for its share

of the rent. A perceived higher quality of tenants, since tenants can be

permanently removed from the Section 8 program if they damage the

rental unit or fail to pay their share of the rent.

A large available pool of potential renters (the waiting list for new Section 8

tenants is usually very long)

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About Detroit

C O U N C I L TO R E P L A C E 1 0 , 0 0 0 D E R E L I C T H O M E S W I T H PA R K S , FA R M I N G P L O T S A N D M O D E R N I N F R A S T R U C T U R E .

The Detroit mayor has committed to completing this project within four years. The impact will be enormous, not only changing the face of the region, but moving people from run down homes generating demand for existing, quality homes such as the investment properties selected by FBC Group.

$ 5 8 0 M I L L I O N U P G R A D E TO M E D I C A L FA C I L I T I E S

An enormous expansion and improvement to the region’s medical facilities will be a huge boost for local families.

The US government has contributed (and allocated continued funding injections of) almost $100 billion into the local workforce.

Known as the city under renovation, Detroit is also the beneficiary of massive new industry injections and infrastructure upgrades. These changes are expected to drastically boost the economy and the image of the city in the years to come, ensuring long term benefits for investors.

With government funding providing enviable security in the ongoing workforce, plus a massive contingency of government guaranteed rental demand, Detroit is a very safe investment.

M O D E R N I S E D S C H O O L I N G S Y S T E M

The next ten years will see the replacement of many existing schools with up to 70 modernised and better equipped schools, creating a benefit for both families now and the long term economy.

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N E W I N D U S T R I E S TO C H A N G E T H E W O R K I N G C U LT U R E O F D E T R O I TWhile Detroit boasts one of the largest manufacturing industries in the world, it is time to introduce more variety for the future. The variety and sheer size of the new industry introduction already underway has the economy bracing for a vibrant new future, with a stronger and more diverse workforce. The Aerotropolis alone is poised to create 64,000 new jobs.

S O W H Y M E T R O D E T R O I T ?

Media has painted a stereotype of Detroit by focusing on inner city issues. But look beyond the city to Metro Detroit and you’ll discover an entirely different world. Close enough to access the city if desired, but far enough away to have individual city centres with rolling parklands, stable industries and be detached from inner city issues.

W H AT T H I S A L L M E A N S F O R D E T R O I T ’ S F U T U R EWhile some cities are waiting for their economies to improve, Detroit is possibly the most pro-active city in the USA, making drastic changes to create a brighter future. If you could look forward ten years and see all of these government and industry projects completed, you would discover a drastically renovated Detroit reaping the benefits of change. For those who invest in Detroit now, the future looks extremely bright.

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Jennifer Shepherd - General ManagerJennifer Shepherd, the operations manager of our U.S. office, is a licensed Realtor in the State of Michigan. Obtaining properties, real estate closings, overseeing the rehabilitation of the properties, screening and placing tenants, property maintenance and bookkeeping are just some of her responsibilities. Her knowledge in the real estate business is the direct result of working 17 years with an Attorney who then opened a Michigan Title Company in 1994.

FBC Realty USA, LLC and FBC Property Management, LLC staff are local Detroit experts with many years of local experience and you can rest assured that any matter which needs to be dealt with in the USA is done so with total professionalism and thorough detail. From regular inspections, through to scheduling property maintenance, screening potential tenants and every other service you expect from a property manager. These services are all controlled and arranged by FBC Group to meet your needs, but handled locally to give you the on hand support that you need.

To ensure a quality in international property service, FBC has offices in chosen regions, to provide true local knowledge and on the ground support.

Jim Carbary - BuilderJim Carbary is our qualified builder, with 18 years of experience he is abreast of all the government building codes of the USA. Jim inspects each house before we make an offer to buy, to ensure that the “bones” of the property are structurally sound. After the property has been purchased by the investor, Jim then goes back in and completes the renovation work that is required to bring the property up to the strict building codes set by the USA Government.

FBC REALTY USA, LLC OFFICEST. CLAIR SHORES | DETROIT | MICHIGAN

PROPERTYUSA, LLC

MANAGEMENT

MEET OUR DETROIT TEAM

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Donald Williams - Property ManagerDonald Williams is a Real Estate professional with over 20 years experience as a property manager, investor, and note buyer. Donald has worked for several Metro Detroit Management companies where he has managed portfolios with up to 100 properties. Donald is very innovative when it comes to marketing, tenant screening, collections and evictions.

Richard A. De Arment - Real Estate BrokerRichard A. De Arment is the “official” Broker for FBC Realty USA LLC and is the broker/owner of Metro Detroit Real Estate LLC. He has been the backbone to identify and qualify the hundreds of investment opportunities available to investors. Richards 20+ years experience in Detroit and surrounding properties and rentals has made him one of the highest sought after Brokers in the area. Richard proudly asserts his knowledge of Detroit, and his excitement about Detroit is also evident.

James P. Babcock - Attorney at Law

Nicole Lannuci -Administration Assistant

Suzanne Gerth -Reception & Accounts

Linda M. Maue - CPA

PROPERTYUSA, LLC

MANAGEMENT

9 Common investment mistakes...to avoid

1 . W H O TO T R U S T ? - There are lots of different aspects to consider when investing offshore. This means that you need to both like and trust your buying agent and know that they have researched and specialised in every aspect of the market in which you are purchasing. Whilst there are many companies out there all selling USA properties, you will want to know how much knowledge they have of the areas they are selling and the standard of personalised service they can also offer to suit your circumstances.

2 . A E S T H E T I C S - A successful property investor leaves all emotions at the door. It is not the aesthetics of a property that is important but rather aspects such as:

• Is the property in a sought after location?

• Is the property in a safe neighbourhood?

• What type of amenities are close by?

• Does the property suit the demographic you are trying to attract?

Most importantly, is the property placed for growth potential?

3 . I N V E S T M E N T T E R M - Investors should always consider their property portfolio as a medium to long term option (7-10 Years). By purchasing in the foreclosure market you need to allow time for the market to recover. The profit you make will depend on the point at which you entered.

4 . Y O U R G O A L - You should always be aware of what your goal is and what you would like to achieve as an end result. Does this investment suit your goal? Will it get the return you are looking for? Do you need a strong passive income now or are you looking for a profitable outcome for your future? Speak to your financial planner and have a clear picture of where you are headed from the start.

5 . B U Y I N G A P R O P E R T Y R E A L LY C H E A P - It has happened! If you are considering investing in the USA market and handling all aspects yourself to save a little money - Be Careful. You can pick up a property for a few thousand dollars, BUT

how much is this property going to cost you after that? It will need a major renovation, meaning you will then have to find a builder. Can you be certain of that builder’s

credentials? Or the quality of work that will result? You will need lawyers to put through your paperwork, accountants to handle your tax and the list goes on. And that is all before you even think about hiring a property manager and suitably tenanting the property!

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9 Common investment mistakes...to avoid

6 . L E G A L I T I E S A N D O N G O I N G S U P P O R T - There are many parties involved to ensure the purchase process is a success (apart from your buying agent, lawyers, accountants, qualified trades people, property managers etc... that will all be involved). Make sure your agent is knowledgeable on all of these aspects, has established a working relationship with all of the people involved, and can offer you ongoing support after the purchase.

7 . R E S E A R C H - Research will be your best friend. Make sure you are educated on the area you are looking to invest in. The property market in the USA is very different from the Australian market so don’t assume the purchase process is the same. Time frames, costs and the process itself are very different. Don’t just take your agents word for it. Conducting your own research will lead you to ask more questions.

8 . S E RV I C E S P R O V I D E D - Some companies claim to provide you with a world of services. So you should be clear from the start on what services are actually included in the price. There is nothing more annoying than purchasing a property and then finding out that the little services they had mentioned, were all extra costs that now have to come out of your pocket.

9 . W H O W O U L D Y O U A S K ? - If you want to improve your investment knowledge, let’s take a quick look at the options of who you should ask and listen to in order to become a better educated investor.

Family? How many millionaires do you have in your family?

Friends? Are they financial experts? How much do they have?

Your Accountant or even your Lawyer? - Have these people become rich specifically by applying their own investment advice?

When recently reading the BRW Rich 200 List, you will find that there were no economists or stockbrokers in the Rich 200 List.

Over the years, it is fascinating how many people have the theoretical knowledge but very few have the right “mind-set” to take action.

It goes without saying that education is the key. Ask plenty of questions beforehand and you will minimise the risks when

investing.

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Common QuestionsW h a t i s t h e a v e r a g e r e n t a l p e r m o n t h f o r t h e D e t r o i t P r o p e r t i e s ?All properties sold will have an average monthly rental return between $750 to $1200 USD per month.

W h y i s D e t r o i t a g o o d p l a c e t o i n v e s t ?We can assure you that we only invest in safe neighbourhoods which are appealing to Detroit families. Whilst Detroit has experienced economic problems resulting in a slight population decline in the past, the US Government is footing the bill by pumping billions into the Detroit economy ensuring the survival of key industries and boosting employment sources. The current demand speaks for itself.

W h a t i s t h e r e n t a l m a r k e t l i k e i n D e t r o i t ?The rental market for landlords at the moment is buoyant and there are no shortages of tenants. There is always a good base of Section 8 tenants

with families waiting for good quality properties to rent.

W h a t s i z e h o u s e s a r e t h e e a s i e s t t o r e n t ?3-4 bedrooms with 1-2 bathrooms are the easiest to rent , which is why we sit in that market.

I n t e r m s o f i n s u r a n c e s , i s t h e l a n d l o r d l i a b l e t o t h e t e n a n t f o r p e r s o n a l i n j u r i e s ?No. Our management company look after all aspects of our Investors’ properties, making this a “hassle free” investment.

A r e p r i c e s f o r r e p o s s e s s i o n s i n c r e a s i n g ?Yes, they are. There has been a strong increase in demand for these properties as there are now some savvy investors, some very big names are getting into this market. This is increasing demand and pushing price up.

D o I h a v e t o p a y t a x e s i n t h e U S A a n d i n A u s t r a l i a ?The answer is NO. Australia and the USA reached a tax treaty some time back to ensure that individual were not double taxed. You will be expected to pay tax in the USA and any tax you pay will be classed as a foreign tax credit on your Australian return.

H o w d o I p u r c h a s e a p r o p e r t y ?Once you have contacted us, you will need to complete a reservation form (included at the back of this brochure). You would be required to pay a reservation deposit of $5000 USD (fully refundable if we can not find you a suitable property within 1 month). Once we have secured your property, we will require the balance of funds within 14 days.

“I won’t sell an investment that I wouldn’t

personally buy. The proof of this is simple.

I personally own many of these investment

properties and intend to buy more. This is

the best investment opportunity I’ve seen

for many years”

Alistair McCreath

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Testimonials

My wife and I are more than satisfied with the service that we have received from Alistair and the FBC team at FBC Group. We purchased a property in America as an Investment just recently, as well as refinancing loans. The team could not have been more supportive, personal and informative in aiding our decision when deciding the most appropriate investments for us as a family. They took into account our individual situation and tailored an investment package that was suitable for us. All of our questions and concerns were readily answered. We are both very satisfied with the services and advice that we have received. We live in Toowoomba, and with the service being at the Sunshine Coast, distance was not a disadvantage, we were easily able to communicate electronically and via the phone. We have no hesitation in highly recommending the services. Mr & Mrs K. | Toowoomba QLD

Restructuring our mortgage gave us access to equity within our home, enabling us to invest these funds which earns us a handsome income while allowing our mortgage to be paid off much faster.S. MCC. | Landsborough QLD

We would like to thank Alistair and staff at FBC for their professionalism and commitment in refinancing our loan using the Wealth Accelerator Program. Alistair, thank you for your outstanding skills and negotiations. Now our financial future is secure. We have gone from owning two properties to a total of six properties, and furthermore early retirement is now on the plan. We highly recommend FBC for reliable financial advice and guidance and will continue our business with them. Mr & Mrs L. | Beerwah QLD

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Property Details Example

Property Details Example

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www.positivecashflowconcepts.com.au

P (within Australia) 1300 848 610

P (Internationally) +617 5326 1488

Email info@fbcgroup.com.au Fax +61 (0)7 5326 1447

PO Box 6263 Ι Maroochydore BC Ι QLD Ι 4558 | Australia

Head Office Suite 6 Dalton Centre Ι 1 Newspaper Place Ι Maroochydore Ι QLD Ι

4558 Ι Australia

Alistair McCreathInternational

Property Specialist

This is one of those opportunities that simply seems too good to possibly be true. However, there is no catch or hidden flaw, but if you wait around trying to find one, the only thing you will discover is that the opportunity has passed you by. Prices will rise soon, so if you wait you’ll miss out but if you get in early

those price rises will be your easy profits.

Discover more, contact FBC Group todayIt is that easy!

Part of the

RESERVE YOUR US FORECLOSURE PROPERTYOnce you have reviewed your property options with FBC Realty LLC,please complete the following form to reserve your chosen property at its advised price.

Purchaser details:Name(s) _____________________________________________________________________________________________________________

Address _____________________________________________________________________________________________________________

Mobile phone _________________________ Home Phone _________________________________Fax _______________________________

Email _______________________________________________________________________________________________________________

Passport Number __________________________________________ Country ____________________________________________________

**We will require a copy of your passport and one additional form of address verification less than 2 months old**

Property ChoicesClient Instructions: _____________________________________________________________________________________________________

For multiple properties please tick to confirm additional address sheet ____________________________________________________________

Payment Schedule, Agreement and DeclarationStage 1: $5000 USD per unit. Payable with Reservation/Order Form

Earnest Money Deposit: This payment is a commitment to purchase and is refundable. We will endeavour to allocate the property requested, as confirmed properties are allocated on a first come first served basis. In the instance that this property is not available, we will allocate a suitable and comparable alternative or will refund payment in full.

Every property will be sold as a US LLC (Limited Liability Company) that is at no additional cost to the investor, but for investor security. CPA’s recommended that there should be at least 2 parties to every LLC for future security of the investment but is not mandatory.Account Details:

Suncorp Metway: FBC Realty Pty Ltd BSB: 484799 Account Number: 453595285

Stage 2: Balance of the funds is due NOW.The balance of the purchase price is paid to FBC Realty Pty Ltd.If you have an ITIN, EIN and /or US Social Security Number, please provide. If you do not have an ITIN, EIN and/or US Social Security Number, you will need to apply for one, we can do this on your behalf.I/We agree for the property to be managed by the appointed management team.I/We agree to supply ID and address verification.I/We understand that I/we will be subject to US income taxes.I/We am aware and agree that time lines are approximate and due to unforeseen circumstances, may change.I/We have been advised that I will not receive official deed copies, LLC paperwork, etc until after settlement.If more than one buyer/investor, both must complete and sign. By signing, you are confirming that you have read the entire form and understand and agree to the content.

Buyer’s Signature ____________________________________________________ Date ______________________

Print Name __________________________________________________________

Buyer’s Signature ____________________________________________________ Date ______________________

Print Name __________________________________________________________

Head OfficeP +61 7 5326 1488 F +61 7 5326 1447 E info@fbcgroup.com.au W fbcgroup.com.auA Dalton Centre Ι 6/1 Newspaper Place Ι Maroochydore Ι QLD Ι 4558 Ι Australia PO Box 6263 Ι BC. Maroochydore Ι QLD Ι 4558 Ι Australia