Residential Real Estate Investor with Arc Styles
    • A residential real estate investment, design and renovation company, headquartered in Phoenix, Arizona.

Strategic Investment
Buy equity, and sell cash flow.
   • The business model is to purchase property below replacement costs (buy equity), refurbish and stabilize, and sell
      the yield to a long term investor or an end user (sell the cash flow).
   • Retain the property as a long term investor.
   • The Company principals have extensive experience and provide property acquisition, designing, rehabilitating, and 
      leasing residential properties in the greater Phoenix area.

Current Market
Short Sales, Pre-foreclosures, and REO’s are the buzz words of the real estate market today. Working with distressed properties can be an advantage for Arc Styles, but a big challenge for most of the industry. Now more than ever it is “buyers beware”. Typically homes are sold “as is” and have short inspection periods. Often the distressed properties harbor surprises that can be costly for an uninformed buyer. Risk is always a factor in buying real estate. Market knowledge, timing, negotiating, real estate and construction experience are all very useful and help minimize the risk.

The real estate market is cyclical, with periods of growth and contraction. The point of equilibrium is the cost of construction of new buildings. If we know where we are in the current cycle, and where we have been, we can accurately predict where we are headed. Now the market is in the recession phase of the cycle. The timing is perfect to reap rewards in the future. When the market is down, below the cost of new construction, the only direction it can go is up.

Value Added Investing - In Our Current Market
We search for residential acquisitions where value can be greatly enhanced by making small design changes to the property’s physical structure, and by adding some unique quality features.

MANAGEMENT TEAM:
  DAVID W. DENURE
    • Arizona General Contractor B-2 License ROC 242004
    • Licensed real estate agent for over 30 years in Arizona.
    • Past (NCE) National Council of Exchangers -1031 property exchange
    • Residential exterior design specialist
    • Owner of Arc Styles L.L.C. - www.arcstyles.com

  JUDITH (JUDY) A. DENURE
    • Property management business since 1969 with a Las Vegas firm that managed 1500 apartments and 300 single
      family homes.
    • Real Estate Broker in Arizona, Managing Broker for a property management company in Phoenix Arizona that
      manages over 900 single family homes.

THE SAN DIEGO CONNECTION:
  DICK DENURE E.E.D.
    • President of the East San Diego County Association of Realtors, and have been California Real Estate Brokers  
      since 1981.
    • Owner of East County Realty that specializes in residential investment property.
    • Sold over $250 million in California Real Estate.
    • 1031 exchange specialists.

We will be seeking long term residential property investors from the San Diego Market to reinvest in the Phoenix Residential Market.


ARCHITECTURAL DESIGN AND RENOVATION MANAGEMENT:
  MARK LEWIS
    • Partner in the Collaborative Group Architects. An architectural design firm.
    • Key designer for several of the top production builders in Arizona.
    • Mark will be directing the design program and the on-site project manager.

Here’s an Example of How it Works:
INVESTOR PARTNER QUALIFY FOR THE NEW LOAN
    ► Property Acquisition Cost......................................$ 130,000.00
    ► Fix-up Arc Styles..................................................$   15,000.00
    ► Down payment Investor Partner..............................$   26,000.00

    Refurbished Home offered through MLS.......................$ 199,900.00
    Home Sells to new long term investor..........................$ 195,000.00

    Initial investment including down payment and fix-up.....$ 145,000.00
    6% sales commission to selling Agents...................... $  11,700.00
    Carrying costs, finance, and closing fees.....................$    4,500.00
    Total costs of the initial investment............................. $ 161,200.00
    Investor Partners projected profit.................................$   33,800.00

If the investor partner makes the decision to retain the property under management, the sales commission of $11,700.00 would become additional equity.

Defining our target area:
• We target quality neighborhoods in Northwest and West Phoenix.
• Our target neighborhoods provide the greatest potential for our success.
• We purchase homes that will sell near the median selling price of the neighborhood. By definition that is where most people buy.
• We search the multiple listings (MLS) and key neighborhoods for distressed properties that are Lender Owned or  Pre Foreclosures.

Determining our Selling Price:
We do a CMA on the prospective property.

We analyze our potential purchase property and identify the improvements required:
• Estimated improvement costs.
• Account for quiet costs. (Buying, holding, money, selling.)
• Set a minimum profit with the investor partner.

Seller accepted our offer:
We set up escrow, and arrange for a property inspection, request a copy of our settlement costs, confirm financing, review the title report, arrange for property insurance, sign closing documents, and prepare for the improvements.

Marketing Program for Property:
1. Absentee single family home investment owners in the East San Diego and Phoenix area. This includes owners of second homes, vacant homes, and investment rentals.

2. First time home buyers are the secondary sales market.
   First time home buyers get a credit of $8,000.00 on their primary home.
   • Real Estate Agents are directing their prospective buyers away from the short sales and bank owned properties 
     because of deferred or neglected home maintenance. Disenchanted past home owners have vandalized AC unites,
     copper wiring, appliances, electrical fixtures, and more have been removed. This makes the typical FHA property   
     sale difficult.
   • The seller’s property disclosure statements (SPDS) are not available to buyers of bank owned or short sale
       properties.

First Time Home Buyers and Small Investors represent the Majority of Our Current Market
Our Team will sell (delayed exchange) the prospects property owned in Phoenix, or San Diego. The proceeds will be used as a down payment on our renovated property. We market to prospective investors currently owning investment properties in Phoenix, and San Diego.

The Benefits:

■ This program provides the exchange prospect an upgraded rental, and obtains a much better cash flow than they receive from their current rental property.

■ Portfolio diversification (selling one a large property to acquire numerous smaller properties at today’s prices)

■ Relocating investment properties to another state (i.e., Southern Calif. to Phoenix, AZ) to gain faster appreciation.

■ Exchange raw land, which produces no income, for an improved property, which can be rented to create a positive cash flow.

■ Exchange into a property that can be used professionally (for example exchanging a single family rental property for one that can accommodate their business.

■ Exchange from fully depreciated property into a higher valued property that can be depreciated further.

■ Exchanging to obtain a better fixed interest rate. Now! At a low for single family homes.

The property we sell to the long term investor (through a 1031 exchange) will be improved. The long term investor desires to recapture depreciation. Section 1250 of the internal revenue code requires that depreciation be recaptured at the rate of 25%. This is higher than the long-term capital gains rate. For this reason the ability to defer the recapture of deprecation makes a 1031 exchange very attractive. Leveraging the cash that would otherwise be forfeited in capital gains taxes and depreciation recapture makes considerable sense, and the 1031 exchange is the vehicle to get it done.

Selling the Property and Evaluating Your Results
Our target is to sell each property upon completion. The acquisition/renovation formula allows for each participating investor/partner to receive a minimum profit of $10,000.00 per transaction. We are anticipating that each investor/partner will complete a minimum of 4 transactions per year.

This is an excellent time to focus on the acquisition of property in Phoenix Arizona.

To find out more information please contact:
Dave DeNure
Arc Styles LLC
ddenure@cox.net

(623) 581-5062 Office
(602) 410-6179 Cell
(623) 582-1402 Fax
www.arcstyles.com