South Florida LoftsCommuter Living at its BEST!

Team Feasibility Analysis Presentation Michael Joe

Cornely

Grigory

Shershukov

Ahmed Hassan

Saika Joseph

SOUTH FLORIDA LOFTS

S.F.LoftsIsn't it time you moved out of the dorms and got your

own bathroom?

Macro-Level Market

Analysis

Powerful Buyers | Low Threat

Powerful Suppliers | High Threat

Rivals | Low Threat

Miami, Florida

2 Bedroom 2 Bathroom $959

4 Bedroom 4 Bathroom $ 864

Comparable Amenities

Substitutes | Low Threat

New Entrants | Low Threat

HUGE Capital InvestmentCostly

Real Estate Licensing Barriers

Industry AnalysisVRIO:

Valuable

Rarity

Imitability

Organization

South Florida Lofts is shaped in its specfic hierarchal way to take advantage of the student housing market

* is successfully shaping the competitors to be complements & Strategic

Allies.

Business-Level Strategy

Our business-Level strategy is Focused Differentiation. S.F. Lofts aims at a student segment of tenants and builds upon their desire to pay less for a better accommodation. We are focused to satisfy our customer needs and preferences to increase our reputation among students of all years and gain recognition for prospective students.

Strengths

Lower housing prices;

Safe environment;

All-inclusiveness;

Shuttles to universities

Weaknesses

High cost of finance;

Limited housing options;

Vulnerability to local economic conditions;

Universities might not want to work with us

Opportunities

Fewer competition in specific industry,

targeted at students;

Attraction of students with affordable

accommodation;

Flexibility in housing options;

Large target market

Threats

Other rental agencies;

Private rentals;

Fluctuating interest rates;

Unreliable tenants, chance of them not paying

Marketing● Web-page● Google searches● Social networks● Promotional Flyers● Target greek clubs● Word of mouth

Marketing“Dorm? No, thank you...” “Loft? Tell me more!”

you

The South Florida Lofts Management TeamInternal Resources

Property manager Property manager assistant Maintenance Coordinator 2 Full time Leasing Agents (commission based)Full time handyman

External Resources

Cleaning Contractor (common areas and tenant turnover)Security ContractorLaw Firm on RetainerAdvertising Firm (cost plus)Landscaping Contractor

Come live where all you need to worry about is that paper for MBA on Tuesday.

S.F.LoftsRent a great apartment

without the stress of renting an apartment.

Apartments are rented by room not by the 2 or 4 bedroom spacious amenity filled floor plans.

Let SF Lofts handle the rest.

2 Bedroom Unit at the SF Lofts $699.99Each Room has its own lock,

bathroom, desk, bed and closet.

●Community kitchen shared with only suitemates

●All utilities and equipment managed and maintained

●Apartment comes with basic furnishings couch, stools tv stand.

1

2

4 Bedroom Unit at the SF Lofts $599.99Each Room has its own lock,

bathroom, desk, bed and closet.

●Community kitchen shared with only suitemates

●All utilities and equipment managed and maintained

●Apartment comes with basic furnishings couch, stools tv stand.

4

21

3

Forecasted Income PLANBREAK EVEN

REFI AND PASSIVE INCOME TO PAY OFF

Grow EquityDon't lose money

Use Equity to RefinanceLower Mortgage/Overhead Reinvest profits

PAY OFF AND THE JOY OF OWNERSHIP

Step 1.

Step 2.

Step 3.

Opportunity to Seek investors for PAY OFFLower Mortgage/Overhead Reinvest profits

Step #1 Initial Investment (tiny 3mil please)

Step #2 Equity and Refinance. Profit put towards loan Balance

Step #3 Ownership / Management & 40 year inspection

Calculation DetailsFinancing Calculations do not account for rent raise only the higher future higher interest rates making our calculations more acceptable to investors.

Tax Rates are variable. Calculations use 1.4% not rising. Basis for not using all of revenues to reinvest into loan repayment because tax rates are volatile.

Renting by room greatly lowers monthly holding cost. Less empty rooms more income.

Rental rates not based on any priority, only standard price scheduling. In the future if we find areas in the bldg are more preferable we can raise rental rates.

Allows for raises in fixed costs and salaries in 55 month increments (4.5 years)

Final Payoff AUG 2038

The Largest risk to property owner is units unoccupied. Renting by room mitigates this risk greatly. We make up for the downsides of renting by room with built in amenities.

S.F.LoftsRent a great apartment

without the stress of renting an apartment.

Apartments are rented by room not by the 2 or 4 bedroom spacious amenity filled floor plans.

Let SF Lofts handle the rest.