Paul Forsberg Presents:

SW Florida Commercial Real Estate Market Newsletter

This Publication Presented by Paul Forsberg Income Property Specialist & Broker HG Real Estate Services.

As a real estate professional, I strive to keep in touch with my clients and provide them with information that I hope they will find useful. This newsletter is an opportunity to let you know about the state of the market and current trends. It may even touch on ways that could enhance your investment value. I hope the market data and articles will help you understand real estate today and help you with your real estate decisions. If you have any questions, please do not hesitate to contact me. ____________________ VOLUME IV Issue 11 May, 2013 North Port, FL ____________________

Commercial Real Estate In Florida Making a Robust Rebound!

Reuters News recently reported South Florida Commercial Real Estate Market Shows Slow and Steady Improvement. They wrote about South Florida, and neglected to report on SW Florida. What the SW Florida Commercial Real Estate Market is seeing is what I believe is much better than slow and steady improvement. Based on my research, the SW Florida Commercial Real Estate Market is experiencing rapid improvement. (Check out the Trends and Graphs on page 5) Vacancies are lessening, rents are increasing, Commercial Inventory is diminishing, and professional office space is renting up! It is my Opinion .. The Florida Real Estate market is doing well because Gov. Rick Scott is a businessman and is doing a fantastic job of slashing stupid liberal spending, cleaning up waste and abuse,

Inside This Issue:

Money Saving Insurance Tips .2 Deal of the Month ..3 Pauls Rant you love this one! more .4 Market Statistics ...5 Rip Off The IRS . 7 Public Announcement 8 Ultimate Marketing System ..... 9

How to: Legally Rip Off The IRS Increase Cash Flow & Decrease Your Tax Bill
Why would you want to needlessly send money to the political criminals in Washington so they can piss it away and buy votes.

Florida has added 230,000 new people to the state in 2012.

and attracting businesses. Florida has SLASHED its unemployed workers by HALF

Florida is now the #1 position in the United States

for economic development. job growth.

Me and Dick Morris before the event

Florida is now #2 position in the United States for Florida is competing on a daily basis with Texas for the #1 position.
I was at a dinner recently with Governor Rick Scott and Dick Morris and other optimists. The governor revealed so much good information about what is happening in Florida so fast, I couldnt take notes fast enough, and the room was so packed I couldnt get close enough to the podium to record it. Check out the Trends and Graphs on page 5 1

The Information is PRICELESS Page 7

FIVE GENERATIONS!
Can you believe it? Last week, my daughter Melissa and her two boys came over the west coast for a visit. Every time we get together we take a 5 generation picture. Grandma is now 93 and still kicking ! We lost grandpa a few years ago and Nan lives with my mom. Im the oldest grandson and am blessed with the opportunity to help her out in her later years. She was more like a mom to me while growing up because mom was busy with my sister and younger brother. She also ran the books for the family business. Dad was and still is a fisherman and he is still gone almost all the time. At 75 he still outworks 30 year olds! I followed in his footsteps and was an offshore fisherman just like him until I reached 35 years old. Needless to say, my kids didn't know me very will until I got off the boats and to my mind, the single best thing I could have done. Now I have 3 grandchildren Mark, Matt and Selah. Mark and Matt live in Melbourne, FL so I shoot over there when I can for a visit. Selahs dad (my oldest son) is in Navy Special

Money Saving Tips for Insurance

If youre anything like me, you hate paying insurance and want to keep payments to a minimum and still have coverage. I was interviewing an Insurance Agent who Specializes in Commercial Property Insurance the other day for a building one of my clients entered into contract with and she gave me a few pointers I wanted to pass along. 1) Require your tenants to add you as additional named insured and to pr ovide you with evidence of insurance including the additional insured endorsements. 2) Require the tenants policy to include a waiver of subrogation. 3) Require everyone working on the property to be insured and provide you with recently dated evidence of insurance. 4) Have your own general liability policy in addition to being named additional insured on your tenants policy. Liability Claim Prevention: To keep liability and other insurance rates down, you should take precautions. Keep high standards for: Property Maintenance: If you maintain the property yourself, be vigilant and fix building and parking lot issues early. Dont let them go. If you hire a professional management company, expect and demand periodic inspections to be done and get periodic reports. Authorize repairs promptly. Tenant Operations: Be vigilant in your super vision of the property and its use by your tenant. Establish a customer relationship with them. If they are a retail business, secret shop them from time to time. This way you can spot potential trouble and do something to protect your property and your financial interest.

Welcome Steve To Our Office From Dust Storms to Florida Sunshine! This guy comes walking in to the office one day asking a million questions and looking to buy a house. For the next couple weeks, he is in and out of the office about a million times asking questions, going home and doing research, coming back, asking more and more questions, etc. He seems to be a compulsive learner and really detail oriented, so one day, I ask him what his plans are once he gets settled into his new house. Long story short, I suggested he get his real estate license because he has the necessary skills of research, asking questions, and best of all, a Work Ethic! See New Agent Page 4

Mark, 4yr old - Matt, 2yr old - and Selah, just turned 1.

forces and lives in San Diego - I dont get to see her too often. I made Nan (aka grandma) a grandmother when she was 39 years old. Mom was 19 when I was born. My mom is a second daughter and 5 years younger than her sister - So . Granny started early! She and my grandfather were married 79 years before he passed away. Grandpa (I called him Pop) was a fisherman and worked until he was 82! He used to say it aint woik - its what I do and Im gonna keep doin it till my legs give out (he had a heck of a Brooklyn accent). Continued page 4

How to Own Your Own Your Own High Return - High Cash Flowing Commercial Property in Florida In The Next 77 Days With No Management or Experience Necessary!
How would you like to Own Your Very Own High ReturnHigh Cash Flowing Commercial Property Within The Next 77 days, With No Management Headaches, No Maintenance, No Bookwork, and Without Experience? You know how some people always seem to make money in real estate? They seem to have the Midas touch? Have you ever wondered if it is just luck, or is there some secret sauce formula that makes it happen? Well there is a formula - it is a brain-dead simple formula I call the 10-7-3 plan. We locate decent properties with sub-standard management. Buy the property based on current NOI. Then we raise the occupancy, lower the expenses, and then raise the rents. Thus, raising the NOI its that simple! Im going to go into exactly how it works below and share with you a deal we are currently working on. Scenario: Building is 69,732sf and sits on 9.11 acres of land in Bradenton, FL. It is in relatively good shape and only needs a little sprucing up. The property is currently 80% occupied, when NOTE:
The above investment is an actual deal we are currently working on. My investor/partners are coming to the table with the money and I bring the negotiated investment opportunity the management and everything else. I do all the leasing, maintenance and virtually all the day to day operations of the property. Monthly operating statements are mailed to all partners. Dividends are paid quarterly along with a detailed P&L statement.

the surrounding area is 90%-95% occupied. Rents have a 3% to5% annual increase built into the leases. Owner manages the property himself and it shows because he is never there. We are buying the property at a 10% Cap, or $4,620,000.
Current Gross Rent Current Operating Exp. Current NOI $614,570 $153,224 $461,346

Once we have control of the property, we will immediately implement the 10-7-3 strategy and within 12 months, the numbers will look like this: Rent 90% Occupied Operating Exp. 7% less Rent Increase on current leases NOI Cash Flow Increase $676,027 $142,500 $18,437 $551,964 $90,618

Continued on page 6 High Cash Flow

If you would like to learn more about How You Can Own Your Own Your Own High Return - High Cash Flowing Commercial Property in Florida In The Next 77 Days With No Management or Experience Necessary
Call me at 941-584-7400 We can review your investment criteria, wants and needs, and get you into a high cash flowing investment property in Florida without any management.

5 Generationscontinued from page 2 He lived by a Code and the Code was this: You only have to tell the truth once, and treat others the way you want to be treated. Avoid confrontation to the best of your ability, but if confrontation is inevitable, hit first, hit hard, and keep hitting until the other guy cant get up for a long time. He passed it along to me and it is the Code I live by. Pop taught me a lot - he taught me to shoot, skin animals, splice rope, fillet fish, salt and smoke cure meat and fish, and pretty much live off the land - he also taught me the importance of life, and I hope to be remembered by my grandchildren the same way I remember my grandpa. Back when I was a fisherman, it began to be woik so I invested in a mobile home park and got into real estate. A short time later I sold out of the fishing business completely and have been involved in real estate one way or another since the late 1980s. I love this business and do it with the same Code as grandpa passed on to me. Total honesty, high integrity, and I treat everyone the way I expect to be treated. ####
I have been a real estate developer /investor for over 40 years. Over my entire career doing real estate projects in Germany, Canada and the United States. I have only come across 3 people with an understanding of the business and work ethic that has made me a very wealthy individual. The first two were older gentlemen who are now retired. The third is Paul. He is a hard working honest man with integrity. I trust him and expect to be doing business with him until the day I retire. People like Paul are few and far between and I highly recommend him. G Kirchberger - Toronto CN & Port Charlotte, FL

Pauls Rant .. Off With Their Heads!

I need to do a little ranting and raving about some of the incompetence, lies, deceptive practices and just plain stupidity of many commercial real estate agents and brokers. Its bad enough you have to deal with a multitude of incompetence in the residential field, however when those agents move into commercial, they should have attained a level of professionalism because they wanted to move forward. Unfortunately it doesnt seem to be the case, because I find way too many deceptively marketed properties. Whats even worse, is from time to time, I get a property APOD (Annual Property Operating Datasheet) with completely made up numbers! (Is it Deception or Incompetence??) I am astonished these idiots remain in business because the truth ALWAYS comes out! (not going to go into politics here but do idiots in Washington really think they can with-hold the truth??) I mean what in the world are they thinking when the invent an APOD! Do they assume the buyer or buyers broker isnt going to perform Due Diligence and get copies of the leases, call and personally visit the tenants to vet the information?? Goodness Gracious I guess they think ah- well Ill get the listing, get my sign on the property and go from there. You know what I think? I think once a call is made, the listing agent gets tagged an idiot and never gets a call from the buyer or agent ever again thats what I think in fact, thats what I know because I, and other credible agents I know wont either. Its a small world in this business and we share information on who in the business is credible and who isnt. Years ago, when I was in the residential side of the business and tried my hand at selling houses, (it didnt last long I hated it) my broker told me the best way to get a listing is to ask the seller how much money they wanted for the house, list it at that price, get it in the MLS system and get a sign in the yard. He said it didnt matter what price you put on the house because you would get buyer calls and then you could sell them another house. He went on to say, after 3 months or so, I could always go back to the seller and get them to lower the asking price of the house and then put a reduced price sign on the house and get more buyer calls. Continued Page 7
New Agent from page 2 Now you may be thinking oh-no another snowbird who knows Jack you know what about Florida, but the truth is, Steve graduated high school from Ocala Florida, so he is somewhat of a Florida Cracker. Before retiring, Steve put in a whole lot of years at Pacific Bell and Nevada Bell. He also had a very successful car dealership in Nevada for a while, till the great correction and decided to come back home to Florida. I am thrilled to have Steve in the office working with me in the Commercial Real Estate Business, and he is learning the ropes and earning his wings working alongside me. And I gotta tell yait sure is a pleasure having someone who can add on his feet, multi-task and likes to work. Welcome Aboard Steve! 4

It is what separates the men from the boys and the rich from the broke.

Next Issue: Three of the Most Important Words in Real Estate. Without Them Nothing Else Matters .. To Avoid Using Them Is A Short Cut to Financial Catastrophe. The Information is PRICELESS -

Spreadsheets and graphs dont lie!

By reviewing the graphs here, you can see without a doubt the commercial real estate market hit the bottom and began a rebound back in the last quarter of 2012 in all sectors but multifamily. The multi family sector began a rebound back in last 2011.
Looking for a Speaker at your Club or Rotary Group about the real estate market? Paul is a wealth of knowledge and an entertaining and informative presenter. He is also an EXPERT when it comes to the local real estate market. He will speak for FREE - All you need to do is feed him! 5

High Cash Flow Continued from page 3

A Ninety Thousand Six Hundred Dollar ($90,600) increase in annual income is nothing to sneeze at, and it is not a pie in the sky fairy dust projection. It is an easily attainable and realistic number. At a 10% CAP rate, the same as we bought it at, we increased the value of the property by a little over Nine Hundred Six Thousand Dollars! ($906,000). At all cash purchase it reflects a

We leave approximately $500,000 into the property and sell it in 5 years. Below are snippets of the spreadsheet with annual returns over 5 years and sale proceeds broken down into before tax and after tax proceeds. DONT FORGET we get MOST of our money back out of the deal in 12 months and back into whatever miserable return we were making until we find another opportunity like this one. Take a look at the Before Tax and After Tax Cash Flows for years 1 to 5 and the net sale proceeds after we cash out in year 5. The best part of this investment is

19.48% 11.95%

Return on Investment Year One Cash on Cash Return BEFORE annual rental increases!

How is your IRA and CDs performing? Are you seeing returns like this? I wasnt going to go into the numbers if we apply leverage on the deal because we are buying this project for all cash. However, in a years time, it will be up and operating with higher occupancy, lower expenses and higher rents, so we will apply leverage, pull cash out and be in a position of power as an all cash buyer when the next opportunity comes along, so lets work through the numbers and see the projected 5 year hold after we apply financing and take a look at the IRR. (Internal Rate of Return). For ease of use, I am going to assume a 12 month holding period before applying financing, and the hold time will be a 6 year hold. We will be distributing all cash flow from the property on a quarterly basis on all shareholders will have a predictable cash flow We have it leased up at the average of 90% occupancy
(Our marketing is much more efficient and systematized, so we will be always be above average occupancy, but we need to keep it simple and conservative.)

We can see, touch, feel, smell and shop at the investment. No fake stock market spin, no chance of a Bernie Murdock or Enron Ponzi Scheme. The numbers are real on the way in the numbers during the holding period are conservative, and the anticipated sale price is also conservative. One more thing, because we are holding the property in the form of an LLC, (Limited Liability Corp) the investors can sell their shares at any time and cash out at any quarterly dividend because fair market value of each share is calculated at that time.

The property has a NOI of $551,964 at a 10% Cap Rate, it will have a value of $5,519,640 (call it $5,500,000). We should be able to re-finance it at 75% LTV and pull $4,120,000 out. (look at that almost all of our cash back!)

Youve go to admit a return like this is a whole lot better than having cash sitting in a CD or saving account, or risking it in the stock market with an unscrupulous stock broker!

Want in on a deal like this? Shoot me an email to Paul@FLACRE.com

HIGHER RETURN ON INVESTMENTS! As a full time Real Estate investor, I wouldn t use anyone BUT Paul. The extra money I save in commissions help me maximize my return on investment. Not only that, but he notifies me right away when a hot property comes up on the market that Im looking for. Any smart investor would use his services for higher returns! ~Anthony GralaMyrtle Beach, SC

How to Legally Rip Off The IRS, Increase Your Cash Flow, Decrease Your Tax Bill and Depreciate a Building in 15 years instead of 39.5!
Invest in a Restaurant Property! Yep - a very successful client of mine is looking at specific types of restaurant properties for his portfolio. For obvious reasons I cant go into specifics, but any restaurant property qualifies. Here is a quick overview of the IRS Code:
A Qualified restaurant property is any section 1250 property that is a building placed in service after December 31, 2008. Also, more than 50% of the building's square footage must be devoted to preparation of meals and seating for on-premises consumption of prepared meals. If this is the case then you can use 15 year depreciation More depreciation may be allowed under bonus rules and section 179 rules. (That is for appliances, kitchen utilities, fans, etc. Stuff you would most likely want to tenant to provide anyway IRC Section 168(e)(6)).

Lets do a quick comparison between a restaurant property and an office building at a sale price of $1,000,000, with 80/20 land/ improvement valuation.

$800,000 depreciable 39.5 years for the office building, you get $20,253 per year write off. $800,000 depreciable 15 years for the restaurant, you get $53,333 per year write off! An additional $33,000 deduction from your taxes!
Interesting little tidbit of information isnt it!! If this interests you and you would like to explore investing in a restaurant and Legally Rip Off The IRS, Increase Your Cash Flow, and Decrease Your Tax Bill
Call your Accountant and verify what you just read, then shoot me an email at Paul@FLACRE.com and Ill do what I can to helpI just happen to know of a landmark restaurant building in North Port for saleBuilding and business!

Rant from page 4 NEVER ONCE was I told to put the client first, deal with them honestly and tell them the truth about the price of the house. Not Once! And you wonder why 85% of real estate agents fail within the first 18 months. Real Estate professionals are in the business of selling real estate and solving our clients problems! That means if a person wants to sell a property there is a reason - SELL IT dont let it sit there! If you are working with a Buyer, for crying out loud, LISTEN to what the Buyer wants and go find it! Let me get back to commercial real estate if you want to sell a property, you need to have the numbers together. Commercial real estate is bought and sold based on the income it generates not the color of the roof, not the color of the building or anything else. There are only two reasons people buy commercial real estate and here they are: 1) Buy it as an owner/user. The person has a business and wants to own the building they are running the business out of. It could be a stand alone, are a multi tenant building where they can run the business and lease out other units for increased foot traffic and to offset their operating costs. 2) Buy the buildings as strictly investment property. The price they are going to pay is based on the income the building generates!!! There is no other reason to own commercial real estate anyway it is to operate a business out of, or for an investment that increases in value and kicks out cash.

What I find puzzling and somewhat troubling is most agents dont even think about who the end user is going to be or who is going to buy the property they have listed! Obviously, an owner/user will pay a little more for the property than an investor will, because they are looking at it with a completely different mind-set. Now when it comes to investment property, you would think the agent would have enough sense to put an APOD together, or at lease ask the seller for a copy of the Schedule E on their tax return. Heck any buyer with half a brain is going to request the information during the due diligence period anyway, so why not get it immediately and put a value on the property from the Schedule E! I could go on and on about this and I will in future issues of this newsletter. In fact, next issue I will go into where to get information on how to create and APOD and how to value the property based on locally established Cap Rate valuations. If you have a property listed and it is not selling, the reason it isnt is because you have it priced too high PERIOD. The Best Way to look at it this . Based on the numbers the property is kicking out, what would you be willing to pay for it and why. Once you come up with that number, you will have your answer.
I have a Free Consumer Report titled:
12 Questions You Need To Ask Before You Hire a Commercial Real Estate Agent Call 1-800-261-0454 Enter ID # 7045 And Get Your Report Mailed To You At No Cost or Obligation.

You Can Receive Free Recorded Information on Any Property Currently Listed For Sale WITHOUT Having to Speak With Anyone!
Simply Call 1-800-261-0454 and enter the 4 Digit ID # to listen to FREE recorded information. Call Anytime, 24 hours a day, 7 days per week!

Neighborhood Shopping Plaza $97,000 NOI (actual)

Hands Off $10% Return - CALL

Venice Office Park. Jacaranda Bvd. Close to I75 Great location Starting $7sf ID# 7462

North Port Office Building. Fully Leased in center of town.-

Bank Repo - MUST SELL 10,266sf finished office space.

ASKING $179,000

ASKING $629,000

Gas Station! Completely Re-Finished Motivated Seller - $750,000

Now Leasing! Placida Shopping Plaza. Great location, Growing Area

Starting $6sf. ID # 8120

Short Sale Flex-Warehouse space. 2 Units $60,000 Great Opportunity - Call Now!

BANK For Sale! Make them pay you rent - get even! $4,999,000

NOW LEASING! Toledo Blade Prof. Center. Office from 1,000-6,000 sf.

ID # 2555

Warehouse in North Port Work out of half and rent the other Tenants in place $290,000

Hands off income! 8% Cap Rate. Long Term and established National Tenants $18,250,000.

Dont See Anything you like?

Join the Best Buy List and get all the new listings. ID# 7043

Call Now For Free Recorded Information and to Order Your FREE CONSUMER REPORTS (See Below) Call 1-800-261-0454 - Anytime 24 Hours a Day, 7 Days a Week. Or Call My Direct Line - Ask For Paul at 941-584-7400
Free Consumer Report 12 Questions You Need To Ask Before You Hire a Commercial Real Estate Agent 1-800-261-0454 Enter ID # 7045 Free Consumer Report Cash Flow Secrets of Commercial Real Estate Investors 1-800-261-0454 Enter ID # 7042 Free Consumer Report 3 Secrets To An Offer On Your Property Within 72 Hours 1-800-261-0454 Enter ID # 7024 Free Consumer Report 5 Steps to Full Occupancy and Higher Cash Flow 1-800-261-0454 Enter ID # 7033 Free Consumer Report Distress Sale Hot-List Free List of Bank Owned and Distress Sale Income Properties 1-800-261-0454 Enter ID # 7043

Free Consumer Report 7 Mistakes To Avoid When Selling a Commercial Property 1-800-261-0454 Enter ID # 7020

Free Consumer Report How To Get Top Dollar When You Sell a Commercial Property 1-800-261-0454 Enter ID # 7022

Free Consumer Report Find Out What Commercial Properties are Selling For 1-800-261-0454 Enter ID # 7034

Paul Forsberg

Phone 941-584-7400 Email: Paul@PBForsberg.com Www.FL-CommercialRealEstate.com

HG Real Estate Services

14385A Tamiami Trail North Port, FL 34287
Phone 941-584-7400

The Paul Forsberg Team Approach When Pauls Team Pulls The Trigger on Your Listing,
There Are Over 33 Key Systems That Get Activated To Get Your Property Sold or Leased Fast For Top Dollar
Listing Agreement Signed
Loopnet & Local MLS System

Internal Marketing to all Associates

Paul personally designs the marketing plan for your property

Paul PERSONALLY prepares the advertising and Marketing to EVERY client and every property sold by the team.

Synchronization to over 200 DIFFERENT Public WEBSITES

5 DIFFERENT Internet VIDEO Sites

Email and FAX to Paul's Proprietary Network of Agents and Investors

Paul personally writes ads and sales sheets for your property

Everything Shaded in Yellow at Right is Only Provided By Paul Forsberg.

We certainly include media in the marketing plan for your property that any Realtor does too, such as using the Multiple listing service. In fact, we do everything any other agent does.

Members Only Website over 550,000 active Real Estate Investors Nationwide (CI)

Newspaper & Glossy Magazine Ads Google Flickr Back-Page Craig's List vFlyer Facebook Twitter

Members Only Site over 10,000 active Real Estate Investors in FL (FIFI)

AGGRESSIVE MARKETING Begins via MULTIPLE MEDIA

But there are also things ONLY WE DO

Quarterly Newsletter Market Watch Commercial Newsletter

Paul in a TV interview with Investing Guru Carlton Sheets Paul Personally reviews every property listed and every mar-

Property Signs & Flyers

Direct Contact with our HUGE list of Buyers in Waiting who have registered their preferences for the properties they want to buy

keting plan with his team of exceptionally capable, successful agents to launch the marketing of each propertyand continues to PERSONALLY SUPERVISE every properties marketing.

Direct Mail Promo Just Listed Blog Promotions CIMLS MFCRE Total Commercial CCIM Commercial MLS Sites

Need Help or just want someone to talk with and bounce a few ideas back and forth? Call Paul 941-584-7400 & Schedule a No-Obligation Private & Confidential Consultation.

Members only Site Academy of Creative Real Estate Investors (ACRE)

Paul Forsbergs

Heres Free Advice And Services For My Friends And Clients To Help Save You Valuable Time And Money. Never Feel Obligated, Im Here To Help

Free Consumer Reports: (order one or all)

( ( ( (

) Special Report: 12 Questions YOU NEED TO ASK Before Hiring an Agent ) Special Report: Cash Flow Secrets of Commercial Real Estate Investors

) Special Report: 3 Secrets to an Offer On Your Property Within 72 Hours ) Special Report: 5 Steps To Full Occupancy and Higher Cash Flow

(
( (

) Special Report: 7 Mistakes To Avoid When Selling a Commercial Property

) Special Report: How To Get Top Dollar When You Sell a Commercial Property ) Special Report: How To Buy a U.S. Post Office, A Wal-Mart and a Home Depot With Your IRA

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