Tel: +852 31 017 075

Web: www.ovginvest.com
Email: rebecca.smith@ovginvest.com
 Investment opportunity
It's no secret that Detroit was hit hard by the recession.
Massive job losses meant people could not pay their mortgages and
foreclosures were at a record high.
As a result house prices have fallen to their lowest since 1993.

Today, even when people can afford a mortgage, banks are too scared
to lend.
So these people are forced to rent.
This means there is a huge demand for high quality rental homes in
good areas.

Now is the time to take advantage...

Detroit is starting to recover.
Unemployment rates are falling.
House prices are rising.
But prices are still at their lowest since 1993.
And because they are so low, you can achieve rental yields of 16% and
often more.
Big business is now investing millions of dollars in Detroit.
Once banks start to lend again - prices will rise quickly and this
opportunity will be gone.

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 Investment opportunity
What is on offer?

Today you can buy 3-bedroom homes in middle-class areas of Detroit for
a fraction of what they sold for just a few years ago.

These are completely refurbished, tenanted properties. With rental

yields in excess of 16% nett.

This is an easy to manage, hassle free investment.

As an experienced management company looks after everything for you.

Key Points:

Homes from US$ 31,000

Already tenanted
Yields of 16% plus
Prices at their lowest since 1993
High capital gains
Newly refurbished
High quality, 3-bedroom, brick built homes meeting government
standards
Turn-key, hassle free investment
Experienced management team take care of everything for you

Page 2 of 23
 Investment opportunity (cont.)
High Rental Yields
The high number of foreclosures and lack of mortgage financing has
resulted in a large demand for rental properties.
The average rent for a 3 bedroom home in a middle-class area of Detroit
is US$ 900 a month.
With house prices as low as US$ 31,000 - yields are around 16%, often
more.
That is net - after management fees, property taxes and insurance.
All properties have tenants in place.
You earn an income from day one.

Strong Capital Growth

House prices are already rising.
According to the National Association of Realtors, in the last 12 months
the average price of property in Metro Detroit has risen by 7.7% to
US$ 70,000.
This is still far below the 2005 average of US$ 172,000 - so it leaves you
plenty of room for capital growth.
In November 2011 multiple listing service Realcomp II Ltd. reported
property sales in Metro Detroit rose for the fourth month in a row:
"After four months of consecutive gains in the local housing market, we
can probably say it's the start of a recovery," said Realcomp CEO Karen
Kage.
In September, sales increased by 8.2% over 2010.
And in October 4,176 homes were sold compared to 3,983 in 2010. A
rise of 4.8%.
As the economy improves and banks start to lend again, demand will
increase considerably.
This means you will benefit from high capital appreciation and have a
large target market to sell your property to when you are ready.

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 Investment opportunity (cont.)
Easy to manage, hassle free investment
These properties have been completely refurbished often with new
roofs, re-wiring and plumbing.
They are certified to meet current Government health and safety
regulations.
This means you dont need to worry about any costly repairs or
maintenance bills in the next few years.

How can you be sure your investment is being looked after?

A top Detroit management company with many years of experience
looks after everything for you.
They will find you new tenants if you need them.
Theyll make sure your house is well maintained.
They will even collect your rent and pay your money into your bank
account.
On top of that, you get access to a 24 hour help line - so you can call
anytime.
You also get your own website login where you can access your monthly
account statements, signed contracts with tenants, your property tax
receipts, maintenance quotations and bills, a copy of your management
agreement and inspection reports for your property.
Your rent is paid directly into your nominated bank account. This can be
in the US or anywhere in the world.

Location, Location, Location...

As with any city there are good and bad areas.
The properties we offer are all in middle-class suburbs of Detroit.
They are close to major highways, good schools and amenities in
desirable areas where respectable families want to live.
We can provide the address for every property we offer so you can see
the location for yourself, thanks to Google Street View.

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 What type of property can you buy?
Ohio Street, Bagley, North West Detroit - Price US$ 49,500
Previous sale price US$ 87,955
This 3 bedroom, 1 bathroom property is typical of the type of house you
can buy.
It has recently been refurbished, including a new roof, new plumbing,
re-wiring, interior painting and re-finishing.

The Location
The house is in Bagley - a middle-class area of Detroit.
It has access to major roads including McNichols Road and
Lodge Freeway.
And its within walking distance of Mumford High School and
Marygrove College.
The Detroit Public Library is a short drive away.

Previous Price
The house was last sold on 2nd January 2007 for US$ 87,955
(Source: Detroit Department of Public Records).
Today you can buy it for just US$ 49,500 - saving you
US$ 38,455.

Rental Yield
The house has tenants paying US$ 950 per month. The rental
yield is 16.1% net - after all management fees and taxes.

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 The Bottom Line...
Your Rental Yield

Ohio Street, Detroit Purchase Price US$ 49,500

Annual Rental Income US$ 11,400
Annual Property Tax and Insurance US$ 2,300
Management Fee US$ 1,140
Net Annual Income US$ 7,960
Net Return 16.1%

Average rental yields are 16% and above.

That is net - after management fees, property tax and insurance.
All properties are sold with tenants in place.

How is your income paid?

Your rental income is paid into your nominated bank account every month.
This can be a bank account anywhere in the world.
We would recommend a US Dollar account to avoid currency fluctuations.
But the choice is yours.

Experienced Management
Your property will be looked after by an experienced Detroit management
company.
They will:
Collect and manage rental payments
Pay your rent into your chosen bank account
Advertise for and screen new tenants
Provide maintenance and call out services
Supply online property management accounts, so you can track your
investment at all times
Carry out regular property inspections and produce reports based on
these

Page 6 of 23
 The Bottom Line (cont.)
Ownership
Ownership is freehold.

Payment Terms
A reservation fee of US$ 5,000 secures your property.
The balance is payable on transfer of title deeds - usually within 21 days.

Finance
Finance is not currently available.

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 Why should I buy now?
Its a sellers market.
Well not quite - but it wont be long before it gets that way.
According to data from Real Estate One - Michigans largest real estate
company - at the end of June 2011 there was a 5 month supply of homes
in the Detroit Metropolitan area.
That compares with an 18.9 month supply at the end of 2007 when the
area was awash with foreclosures.
To give you an idea - in good times the US housing market usually has
between 3 and 6 months supply.
More than 6 months supply and it is a buyers market.
Less than 3 months is considered a sellers market.
So you could say Detroit is close becoming a sellers market.
Houses are being snapped up faster than the national average and
property is typically on the market only 67 days before it is sold.
When the US banks start lending again house prices will rise fast.
That is when you should be looking to sell.
And remember, you will get a 16% rental yield on average - often more.
So you stand to get ALL your money back in rental returns in just over 6
years.
And you will still own the property.

How do we have access to these properties?

We work with a major Detroit company who has been investing in
foreclosures for the last 3 years.
They buy the properties directly from the banks.
Then they refurbish them, find tenants and sell the properties on to
investors like you.

Page 8 of 23
 Why should I buy now? (cont.)
A Shortage of good quality homes
According to local Detroit estate agents there is a big shortage of good
quality houses in good neighbourhoods.
This is causing a bidding war on some properties.
"As soon as anything [good] hits the market, it's a stampede to get
there," said Realtor Andy Hargreaves. "It's not uncommon for us to see
five to eight offers on a good home."
Why?
Because many of the homes available are poor quality or badly main-
tained.
Foreclosures too badly damaged by their previous owners who could
not afford to keep up with repairs.
Or, they are owned by people with negative equity who won't sell be-
cause they simply can't afford to.
So any quality homes which do come onto the market are snapped up
fast.

Case Studies
Rob and Kim Draper spent a year looking for a house in metro Detroit
travelling from Chicago on weekends to search.
"With the economy being bad, I just thought there would be a lot more
houses," Kim Draper said. "I was surprised with how fast they were sell-
ing."
Another buyer, Matt Accivatti thought it was a buyer's market when he
started looking for a house last year, but after getting beat on four
offers, he realised things had changed.
Accivatti was outbid on a foreclosure and a short sale, both in New Ha-
ven, and on two privately owned homes in Algonac. He finally beat six
offers to buy a three-bedroom, 1 1/2 bath house for US$ 115,000.
The home was bought by an investor last year, gutted and fixed up to
flip. "The basement is finished, it has new siding and everything was
done," Accivatti said.
Stories like this are common in the Detroit Metropolitan area.

Page 9 of 23
 Why Detroit?
Detroit is the largest city in the state of Michigan.
The metropolitan area of Detroit is made up of 6 counties and is the
11th largest in the USA. It has a population of 4,403,437 .
The city is probably best known for the motor industry.

Motor City
It is no secret that the recession hit the motor industry hard and left the
three largest car manufacturers, Ford, Chrysler and General Motors, in
deep financial trouble.
Ford set aside US$ 25 billion before the recession began and survived
without any financial assistance.
General Motors went bankrupt. The company is now 61% owned by the
US Government. The Canadian government, a health care trust for the
United Auto Workers union and bondholders own the balance.
Chrysler were bailed out by Fiat, who now own 20% of the company.
All of this had a massive impact on Detroit.
Between them these three companies employed around one fifth of the
city's work force - 80,500 people.
Many were laid off and as a result lost their homes.
But today things are on the up and up.
In April 2011 Ford reported profits of US$ 2.6 billion - its highest since
1999.
In October 2011 Chrysler reported third quarter net income of US$ 212
million and raised its profit forecast to US$ 600 million for the year.
And in February 2011 General Motors announced profits of US$ 4.7
billion - the highest in over a decade.

Page 10 of 23
 Why Detroit? (cont.)
Economy and Employment
In 2010 the metropolitan area of Detroit reported a gross product of
US$ 197.6 billion.
According to Simplyhired.com Detroit Trends data, the number of
Detroit, Michigan jobs has increased by 34% since March 2010.
The motor industry, which today employs around 75,000 workers in the
city, have announced they are hiring again.
According to Sean McAlinden, chief economist at the Center for
Automotive Research, car manufacturers will hire about 36,000 workers
by 2015 to meet rising demand.
In April 2011 in a speech at Wayne State University in Detroit, he said
employment at General Motors Co. (GM), Ford Motor Co. and Chrysler
Group LLC will rise to about 137,000 in 2015.
Were at such record productivity that any additional production
requires new hiring.
Aside from the motor industry, firms in the Detroit Metropolitan area are
involved in emerging technologies including biotechnology,
nanotechnology, information technology, and hydrogen fuel cell
development.
Fortune 500 companies headquartered in Detroit include General
Motors, auto parts maker American Axle & Manufacturing and DTE
Energy.
The law firm of Miller, Canfield, Paddock & Stone, one of the largest in
the U.S., also has offices in Detroit.

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20
 Why Detroit? (cont.)
Big business is investing
Billions of dollars are being pumped into the Detroit economy.
But, importantly it's not Government money - it is money from industry
and business.
In August 2010, Quicken Loans, the biggest mortgage broker in USA
moved its 4,000 employees to Detroit.
Dan Gilbert, Founder and Chairman of Quicken, said of the move, "Words
do not express the excitement we all feel about moving to downtown
Detroit. Detroit is in the infancy stage of becoming a hotbed of new
economy technology, Internet and entertainment-based entrepreneurial
growth companies. Detroit 2.0 is under way. The only questions left are:
How big will it grow and how fast can you get down here."
Compuware, a Fortune 500 company which provides IT services to
thousands of customers across the world, also has its corporate
headquarters in Downtown Detroit.
Detroit Medical Center (DMC) together with partners Vanguard and
Blackstone Operations have recently committed to investing US$ 1.2
billion to improve healthcare in Detroit.
This is the single largest private investment in Detroit history.
It will create 12,000 new jobs by expanding and upgrading the five main
Detroit hospitals.

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20
 Why Detroit? (cont.)
Hollywood in Detroit
In 2008 Detroit introduced the Film Incentive Package.
This gives huge tax credits (40%) for any movies filmed in the city and has led to
a large increase in the number of Hollywood blockbusters being made in Detroit.
Some recently titles include:
Scream 4 (2011) with Neve Campbell, Courteney Cox and David Arquette
Laughing Out Loud (2011) with Miley Cyrus and Demi Moore
Real Steel (2011) with Hugh Jackman
The Double (2011) with Odette Yustman, Martin Sheen, Richard Gere
The Mechanic (2010) with Donald Sutherland and Ben Foster
Vamps (2011) with Alicia Silverstone and Sigourney Weaver

Casinos
Casinos generate a huge amount of income tax for Detroit.
In 2010, the three Detroit casinos made a total income of US$ 1.38 billion,
generating over US$ 99.2 million in taxes for the city.
In 2009 two of the major casinos, Greektown and Book Cadillac Hotel were
renovated at the cost of US$ 425 million and US$ 200 million respectively.

Page 13 of 23
 Why Detroit? (cont.)
Investment in infrastructure
Detroit is an important transportation hub.
The city has three international border crossings; the Ambassador Bridge; De-
troit-Windsor Tunnel; and Michigan Central Railway Tunnel, linking Detroit to
Canada.
The Ambassador Bridge is the single busiest border crossing in North America,
carrying 27% of the total trade between the U.S.A. and Canada.

Rail
The U.S. Department of Transportation announced in October 2011 that it has
awarded the state of Michigan a US$ 196.5 million federal grant to build a high-
speed passenger railway between Detroit and Chicago.
"Investing in rail service will spark economic development in communities along
a corridor linking Detroit and Chicago, two vital Midwest cities. A faster, reliable
passenger rail system is a priority for younger generations and vital to Michigan's
ability to compete globally as businesses look to locate or expand." commented
Michigan Governor Rick Snyder.

Roads
Six major roads serve the Detroit Metropolitan area.
There is also an extensive expressway system.
The Interstate 75 and Interstate 96 connect Detroit to Kings Highway 401 and to
major Southern Ontario cities such as London, Ontario and the Greater Toronto
area.

Air
There are long term plans to build the Worlds largest airport in Detroit -
The Aerotropolis.
Detroit currently has two international airports; Wayne County and Coleman A.
Young.
Wayne Country Airport is the main hub for Northwest Airlines and Spirit Airlines.

Page 14 of 23
 Why Detroit? (Cont.)
Re-generation
In 2008 The city of Detroit announced a US$ 300 million stimulus plan to
create jobs and revitalise neighbourhoods.
The money came from sales of city bonds and tax revenues originating at
Detroits casinos.
As a result blighted neighbourhoods were demolished and prime
neighbourhoods are in the process of being upgraded and restored.

The 9th wealthiest city in the US

In July 2011 Detroit was ranked as the 9th wealthiest city in the USA.
An extract from the Capgemini Report of Top Ten Wealthiest US Cities
reads:
"Post-recession growth in the auto industry has driven Detroit to
Capgeminis No. 9 ranking. Detroits population of wealthy individuals
grew 3.4% to 92,000 in 2010 from 89,100 in 2009 - and that compares
with a 15.9% drop to 79,500 individuals during the financial crisis of
2008."

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 The opportunity...
Today you can buy high quality, 3-bedroom homes in middle-class areas
of Detroit for a fraction of what they sold for just a few years ago.
These are completely refurbished, tenanted properties, with rental
yields in excess of 16% nett.
That is after all management costs, taxes and fees.
The key points again:

Homes from US$ 31,000

Already tenanted
Yields of 16% plus
Prices at their lowest since 1993
High capital gains
Newly refurbished
High quality, 3-bedroom, brick built homes meeting government
standards
Turn-key, hassle free investment
Experienced management team take care of everything for you

Page 16 of 23
20
 The opportunity...(cont.)
Are there any other costs?
Legal fees for due diligence
A title company, similar to a lawyer, will perform due diligence and
check that your property is free from debt.
They check the sale and purchase contracts and provide you with a full
break down of costs and fees.
Their typical fees are US$ 360 per property.
Title companies are heavily regulated by Federal Law and any payments
you make are securely held in escrow until completion of the sale.

Management fees
Management fees are 10% of your rental income.
These are deducted before the rental income is paid into your bank
account.

Property tax
Property tax is paid twice yearly in January and August.
It pays for the local town council to collect rubbish collection, maintain
roads and for street lighting.
The average cost of property tax is US$ 2,000 per year.

Insurance
Buildings insurance is required if you are renting your property.
The average cost is US$ 600 per year.

Tax on rental income

Under US law you need to pay 10% tax on your rental income.
This is paid to the Inland Revenue Service (IRS) once a year.

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20
 The opportunity (cont.)
Your exit strategy
For best results you should view this as a mid to long-term investment
(5 to 10 years).
House prices are already starting to rise in the Detroit metropolitan
area.
Plus, there is a shortage of good quality housing in some areas.
As the housing market and economy recovers it is likely there will be an
increasing demand for good quality housing in these areas.
Remember, you will get a rental return of 16% or more.
So you will get all your money back in just over 6 years.
And you will still own your property.

Lease-to-own
Another option is to offer your property to your tenants on a Lease-to-
own basis.
This is an agreement between you and your tenants to sell them your
house at a fixed price in five years time.
Over five years they make additional monthly payments towards the
price of the house.
At the end of five years, a balloon payment is made for the balance of
the agreed purchase price.
If the tenants cannot make this payment, any money they have already
paid towards the house is legally retained by you.

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 The next steps...
1. Choose your properties
Please contact Rebecca for an up-to-date list of the properties currently
available.
You can give her a call or send her an email. Her details are below.

2. Complete the reservation form attached

If you need any assistance please dont hesitate to ask.

3. Pay your deposit

A US$ 5,000 reservation fee is paid directly to the title company (your
lawyer) into an escrow account.
Any funds paid to the title company are completely secure as they are
held in escrow until closing.

4. The title company (lawyer) will do due diligence

Your title company carry out due diligence and confirm everything is in
order.

5. Closing costs are calculated

Closing costs, including property taxes, are calculated and a specific
closing date is scheduled. Contracts are then prepared and issued to
you for your approval.

6. Final Payment
The title company will request the payment of the balance plus closing
costs and fees.
This is typically 14 to 21 days from your initial reservation.
Once the sale is completed the title company will send all documents
and your property title to you.

7. Start receiving your money

Your rent (less management fees) is paid directly into your nominated
bank account every month.

For assistance you can contact Rebecca directly on +66 86 266 7032
Or if you prefer you can email Rebecca directly at:
rebecca.smith@oceanvillasgroup.com

Read on to see what previous investors think...

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 Investor opinions
"I was introduced to the opportunities for property investment in Detroit
some four months ago. I was impressed and ended up purchasing two
units. Im now collecting my monthly rents without any problems." - Alan
Johnson

"Having already built a medium size UK buy to let portfolio, I can say
that I have never seen rental yields such as those being achieved on my
US investments. - Anjat Munir

"We purchased our US property to provide us with an additional monthly

income and to counter the very low rates our cash was returning us
whilst sitting in the bank. Wouldnt hesitate to recommend this
investment." - Peter and Anna Hopskiss

"We travelled to Detroit on a property inspection trip. The whole trip was
excellent, informative and eye opening, we were happy to buy and are
looking to purchase a second property in the near future." - Kevin Deans
and Tricia Williams

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 Inspection Trips
If you would like to see Detroit and the properties for yourself we can
arrange a two night, three day inspection trip.
During your visit you will be able to see examples of homes for sale
before and after refurbishment; meet with the property management
company and take advantage of their expert local knowledge.

If you would like more details you can call Rebecca directly on:
+66 (0) 86 266 7032
Or if you prefer you can email Rebecca directly at:
rebecca.smith@oceanvillasgroup.com

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20
 Reservation form
A single reservation form must be completed for every property sold even for bulk purchases.

Full name (purchaser) Date and place of birth

Nationality
Address
Date of Issue

Postcode Issuing authority

Telephone number Email

Sales executive
Property address

Primary source
Property description
Email address
Contract price (USD)
Passport number

Deposit
Driving licence number

Reservation procedure
1. This reservation represents a pre contract agreement and is subject to the issue of a full contract.

2. This reservation payment will secure withdrawal of the property and freeze the price.

3. This reservation payment is non-refundable, subject to confirmation of clean and clear property title.

4. As the purchaser you must be fully aware of your obligations to make the final stage completion payment as mentioned in this reservation
agreement.

5. If this property has been purchased for investment there are no guarantees that it will be resold within a specific time scale and projected capital
growth can only ever be estimated.

6. Exclusion of Liability: Both the Buyer and the Vendor Expressly exclude Ocean Villas Group or its employees and agents from any liability of
whatever nature arising from breach of this agreement. The value of property can rise or fall and past performance is not a guarantee of future
returns. No guarantee can be given that a property can be resold at a profit within a specific timeframe.

FEES TO BE PAID TO: JPMorgan Chase Bank, N.A., 620 S Capitol, 3rd Floor, Lansing, MI 48933, USA

Routing/ABA/Transit number 021000021

Account number: 960336816

For credit to account: Escrow & Title Services Inc.,

d/b/a Bell Title Agency,
32826, 5 Mile Road,
Livonia, MI 48154, USA

Signed purchaser How has your experience of working with us been so far?

Date

Signed Ocean Villas Group

Date

Page 22 of 23
 About the author
About the author
Rebecca Smith has 22 years of experience in
real estate sales and development.
Originally from Leeds in the UK, she is also a
prolific property investor.
Rebecca says; Research into any real estate
market is crucial. You cannot simply follow the
hype.
It is essential to have a long term plan - especially in todays market.
Her motto is:
I will never recommend anything I would not buy myself.
Rebeccas other publications include:
The Investors Guide to UK Student Property
The Definitive Guide to buying property in Thailand
10 simple ways to slash your marketing costs and sell more property

You can contact Rebecca directly on rebecca.smith@ovginvest.com

Copyright
The contents of this guide are original copy.
The author would like to state that she is extremely happy for
individuals to distribute this guide to anybody they feel will enjoy and
benefit from its contents.
Just please be sure not to alter it in any way, or claim that its yours -
that is just not cricket.

Disclaimer
The contents of this guide are for a general overview only and should
not be taken as an authoritative statement of international law and
practice.
Neither the author nor the publisher is responsible for the results of
actions taken on the basis of information contained in this summary, nor
for any errors or omissions.
This text is not intended to provide legal, accounting or tax advice.

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