Eddie Patel, President
Action Investment Services, Inc.

Apartment Building Program

Real estate has consistently been a proven winner for many of the most successful investors. At Action Investment Services, we are pleased to offer an exclusive real estate investment opportunity that we believe will be one of this year's best performers to our preferred customers. We are the only Chicagoland Advisory Firm with access to this program.

Economic downturns and rising interest rates have led to higher rates of unemployment and mortgage foreclosures. While this is not good news in general, it does have a direct positive consequence on the rental markets. Because of this situation, large apartment buildings in moderately priced areas, such as the midwest, offer potentially good returns with little downside risk.

As of early 2008, it is possible to buy a large apartment building (via a partnership agreement) at a reasonable price. Here's why the purchase of an apartment building may be advantageous for today's investors.

Let's review the numbers on our most recent apartment building purchase:

Facts at a Glance

Purchase value:	$30 million
Rental income at full occupancy:	20% of purchase value annually (about 600 units at $875/mo.)
Expected annual expenses:	10% of the purchase value annually (80% loan financed at 7% - largest annual expense).
Value of apartment per unit:	$50,000
Value of comparable condos:	$120,000

View the 2006-2007 Comparative Income Statement

Reasons we liked it…

1) Positive cash flow from day one. Some larger buildings at full occupancy can take in close to 20% of the property value in rents annually. The expenses may only be around 10%.

2) Increasing Rental Prices. With less people getting loans (sub-prime lending reduced or eliminated), rental prices are increasing. ( View the article on Chicago Rental Markets)

3) Increasing Population. There were 200 million US residents 35 years ago. Now there are over 300 million US residents.

4) Low Unit Value Relative to Condos. The value of an apartment unit is very low relative to condos. The complex we just bought had 600 units for 30 million dollars translating into $50,000 per unit. Very inexpensive in suburban Chicago relative to condos which are selling for $120,000. So converting to condos is another method to make money.

5) Interest rates are at near lows. It is likely they will rise from here. Of course, the higher the interest rates are, the more expensive the purchase of a home and the more likely the appeal of an apartment.

In keeping with our "Advanced Planning" approach, this seems to be an asset that has little downside and enormous upside. Remember due to leveraging, investors put down only 20% so a 20% rise in the value of a building (only 4% per year over 5 years), doubles your equity. Furthermore, even with an 80% loan, you have positive cash flow from day one.

An apartment building may be an ideal purchase at this time.

Action is the exclusive Chicagoland Advisory Firm with access to this program. Please contact us for an initial consultation and our requirements about becoming an investor.