Sabaneta, A Classic Case of Gentrification and a Path of Progress. Your first and last chance to get in while you still can

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1 Sabaneta, A Classic Case of Gentrification and a Path of Progress Your first and last chance to get in while you still can

2 Sabaneta For many years the preferred destination for foreigners has been El Poblado. But now many investors and renters are looking for neighborhoods that offer better values and a more local living experience yet with all the comforts of a stratus six neighborhood like El Poblado. Thus the migration south from El Poblado through Envigado and now Sabaneta, the southernmost barrio of Medellin, where the Metro begins and opportunities abound. Sabaneta is blessed with many excellent restaurants and a thriving nightlife. Its Parque Sabaneta is considered by many to be the best Parks in all of Medellin to hang out and enjoy an authentic Colombian life style experience.

3 Sabaneta But Sabaneta is undergoing a major development boom which can be easily seen by its many new high rises particularly in the eastern and southern parts of Sabaneta. Modern and new buildings are springing up yet not enough to dampen the quality of life and local lifestyle. In northern Sabaneta, the Mayorca Mall has just doubled its size making it the newest and largest mall in Medellin. Investors can enjoy all of these great benefits while realizing lower real estate prices and operating costs of about 25-30% less than El Poblado. Getting in early in a Path of Progress like Sabaneta means realizing superior investment returns over time as gentrification matures and prices climb upward. It happened in El Poblado and Envigado and now it is happening in Sabaneta. Path of Progress real estate investments most often are a Path to Profits!

4 Sabaneta Is not only a very cool place to hang out and mix with the locals, you can also find excellent nightlife options as well a great variety of restaurants and shopping, so it is also a great spot for tourists looking for something different than the El Poblado neighborhood. This is an EXCELLENT investment opportunity for: Real estate appreciation in a rapidly developing suburb Cash-flow rental income (furnished tourism market) Second get-away home Retirement full time living Click on this video to explore the neighbourhood

5 Location Your Investment is located here Mall, restaurants & bars area Sabaneta Main Plaza Main Street towards El Poblado (20-25mins)

6 Location Parque Sabaneta: Best Park in all of Medellin to Experience a Relaxed Sunday or any of the many Colombian holidays, it is still a small town feel without leaving the City and gives the real authentic look and feel of being in a pueblo. It is an experience that many foreigners are looking for. Any tourists looking to get a feel for the local culture will love these units and never want to go back to the overly touristy El Poblado. Retirees may find this area much more attractive vs El Poblado as it is easy to navigate without a car and very safe, and NO HILLS for walking.

7 Investment Opportunity $ USD R.O.I: 9.7 % Projected R.O.I First American Realty TIPS (Turnkey Investment Properties) presents this real estate package including: Full purchase price Selected renovation Professional interior design Furnishing Closing costs Legal fees Professional photo shoot Designed to make the perfect rental or home to live in.

8 Investment Tips Great rental properties with both Income and appreciation potential Great neighbourhood feel, fun place to hang out on vacation Path of progress, the next big boom area Flat and great walking options Massive development going on (much more than Envigado and possibly more than the El Poblado - based on the community size) Great selection of restaurant and bars Tourism (lots of locals go to Sabaneta for day trips)

9 Key Points Top exchange rate in the last 10 years 9.7% projected R.O.I excellent cash flow Selected renovation upgrades All new appliances New furnishing & professional interior decoration

10 The Building Small Building, Corner Location Low Utilities Low Taxes No HOA fees Short Term Rental Option Small balcony with great view

11 Apartment Photos

12 Apartment Photos Wood ceilings and cabinets Peekaboo balcony with views Two Stories with Loft Style Feel Ready for total remodelling

13 FARM Upgrades A/C added to both bedrooms Space re-design and enhancement based on architect recommendations Living room window will be upgraded with balcony style design Convert extra bedroom into a large master bathroom Paint entire apartment and common areas and wall repair touch ups All work will be managed by professional architects and designers Unit design will offer local flavor with modern and clean upgrades

14 FARM Upgrades Unit# 401 : SABANETA s House 401, Level 3-4 Size: 75 Sq mtrs 2 Bedrooms 2.5 Bathrooms Open Loft Feel Balcony style window overlooking street Tall ceilings in living area Large master bathroom added

15 Investment Process FARM has located the apartment Deed of the property will be directly transferred from the seller to your personal name FARM will manage the Construction Management process during the renovation FARM has already given the seller an 80,000,000 pesos non-refundable deposit on the property FARM will fund the renovation and furnishing upgrades to make the unit 100% rental ready FARM will select all finishing materials on your behalf

16 Investment Process % FARM will fund and coordinate the purchase and installation of all furnishings, appliances, art and decorations FARM will coordinate the set up of all utilities at the unit on your behalf On completion of the project, you will have a 100% turnkey apartment ready for cash flow income On completion of the renovation and furnishing you will receive a Free Premium Photo Package to be used for marketing and rental purposes The new Valorization Tax will be covered as part of this investment

17 Rental Income and ROI Projections Furnished Rental Rates (daily) $62 Annual Rental Income $22,320 Apartment Investment Amount $95,000 Annual Rental Income (with 65% occupancy) $14,508 Furnishing and Appliances Included in package Expenses (Manage fees, utilities, prop tax, cleaning, maintenance) 35% Total Investment (As Furnished Rental) $95,000 Net Annual Income $9,430 Estimated Annual R.O.I 9.7%

18 Reminder! $ USD As this is a turn-key investment in Colombia, the fixed amount due is 319,280,000 Pesos. $95,000 USD is a REFERENCE PRICE based on an exchange rate of 3,380 pesos to dollar, using the exchange rate on Jan. 29 th Note: Final amount due in Pesos (319,280,000) not Dollars.

19 Fees Included Your Turn-Key Investment for this Package is: $ USD This amount includes: Property Costs The purchase of the unit The renovation costs to the unit The furniture, appliances and decoration for the unit The payment of assessed Valorization Tax for the property Free Premium Photos Package Closing Costs All realtor fees and commissions All closing costs and commissions All legal fees related to the purchase process (Promesa, Title Study) Funding Process Cost of the F4/F5 Forms: These forms are required for the government to register your funds properly, these costs apply for each transaction (every time you wire funds). Only the first transaction is covered in the TIPS package price, if for any reason the investor needs to send funds using additional transactions, the additional costs for F4/F5 forms are the investor s responsibility.

20 Fees NOT Included During the investment process there will be other costs NOT included to consider. The investor will be responsible for: Funding Process Fees: Any positive or negative change in the exchange rate International Wire Fees Currency Conversion Fees Additional F4/F5 forms needed for multiple transfers Government 4x1000 Tax on local transfers Legal Fees: Power of Attorney if you will not personally be in Colombia for the closing process (if required) Power of Attorney for funds registration (if required) Colombian Visa options (if required) Additional Fees LLC: any additional costs due to investment via a US LLC IRA: any additional costs due to investment via a US IRA SAS: any additional costs due to investment via a Colombian SAS Official translations required Additional Authentications required All holding costs from the purchase date such as property taxes, utilities and HOA fees

21 Timeline Jan Jun 22nd Months Month Weeks 2016 DEPLOY DEPLOY Closing is scheduled on Jan 22 nd, 2016 (Funds due ten business days before) The renovation process will take approximately three months from the day of closing The furnishing and decoration efforts will take approximately one month after the renovation is complete Cleaning, inventory professional photo package and marketing will take approximately 2 weeks The unit will be ready for rental purposes in Jun, 2016

22 INVESTMENT BONUS Interested in obtaining a Colombian Visa? Depending on your situation, this investment may help you qualify!!!