StrategicPassiveInvestments.com

The Process of Flipping

Flipping Wells (Oil & Gas)

Why Savannah + Past Examples

How to Get Started

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Strategic not only has an A+ Rating, We are also an Accredited

Introduction…

SPI is a full-service investment group with over 25 years of experience. We have served nearly 1,000 individual investors worldwide, creating customized investment strategies to help diversify the portfolios of the novice all the way to the seasoned investor.

25 Years

Over 25 years of experience.

- Winner of the Five Star Institute

SPI does not offer a pooled investment opportunity; rather, each acquisition is purchased in the investor’s / entity’s name and will remain 100% in their ownership throughout the entire process. SPI is a performance-based company, which means the better an investor does, the better we potentially can do. One of our core competencies is simplicity and we have gotten it down to a science. With over 2 decades of experience, we have created what could be referred to as the most passive way to invest. Consistently producing conservative high-yield returns. Did someone say passive investing…

PASSIVE’s our middle name!

Georgia

The power of social media and the internet has made this once not so familiar investment, one of the most popular for new investors. Along with its popularity comes an equal amount of compe;;on, making this once very profitable opportunity a craps shoot.

SPI has been inves;ng in tax distressed real estate for more than two decades. At one ;me, this was a lucra;ve investment strategy in nearly every state in the country. Now, most states have moved to an online plaDorm for their auc;ons and rather than have 50 bidders buying at the courthouse steps, you have more than 50,000. These buyers have flooded the markets and are willing to accept a 0% bid rate, which is essen;ally a free giI to the property owner and has destroyed the opportunity tax sales once brought to entry level investors. Regardless of the popularity and loss of opportunity, there is no shortage of coaching programs offering to sell you $45,000 coaching programs to !train you” on how to take advantage of tax sale investments. At SPI, we offer a beOer op;on – ;me managed consul;ng for every state in the country. Rather than spending $45k to then throw away more hard-earned money on a bad investment, you have access who have done it na<onwide for nearly 30 years. We also offer investments in those states that have not gone online, or are in secondary markets, where bid rates are reasonable and investments in tax distressed property makes sense.

The penalty paid upon redemption is 20% of the purchase price, in 1-year, or fraction thereof.

Property Value: Back Tax Due: Sold For: Penalty 20% Cost to Redeem

$110,000 $887.79 $60,000 $12,000 $72,000

Property Value: Back Tax Due: Sold For: Penalty 20% Cost to Redeem

$7.5MM $76,972.20 $4.5MM $900,000 $5.4MM

209 Baker St. Savannah GA.

La Quinta Inn Savannah GA.

Fix& Flips Flips

The ever so popular fix and flip! Everyone wants to be a tv star and nobody really has a clue what they are doing. Long before the phrase became a thing, we were flipping houses – a LOT of houses! We flip about 80 homes a year and although we used to cover a few different markets, we have moved all our resources into one area to streamline our processes.

Most of you have probably succumbed to the flipping bug and while some of you have made money, most of you have failed. Why? Because reality tv is a far cry from actual reality! Flipping houses for a margin that makes it worth your time and trouble takes a lot of hard work and even more stress.

When investors and our partners first come to us, they look at our profit margins and have a tough time believing it and with good reason. There is a method to the madness, which requires a lot of experience to learn and finesse to keep on track. It starts with the market you are investing in and making sure you aren’t competing with the hedge funds in the same game. As we say, it is not how you sell the property, it is how you buy the property. Yes, upgrades are an important part of the process as well, but if you overpaid for the property in the first place, game over.

Strategic investors and partners quickly realize why we are in the market we are in. They understand that we are the big dog at the park in our market and have the finesse to balance acquisitions with an understated level of upgrades, so as to not squeeze out your profits. Our bathrooms may look like they cost a fortune, when in reality we have been stacking $15 tile we picked up for 50 cents months earlier. When you work with SPI, cost of goods are not the same as they are for Joe Smith, who is flipping 3 homes a year.

Before

After

Each client becomes 100% owner of their very own Real Estate project while remaining 100% passive throughout the lifetime of the investment.

The Fix and Flip is our most popular investment by far! This strategy yields conservative, yet consistent double-digit returns. Minimum 16% ROI (annualized)

Different methods of funding:

Cash

Self- Directed IRA

Leveraging Hard-Money

POWER IN NUMBERS!

Being Savannah, Georgia’s largest rehabber has its perks. One of our favorites (and sure to be yours as well!) is that fact that we have a huge influence on what the current market value is.

As you can see on the “Power in Numbers” map, we are buying up block by block. After we renovate we end up listing 4-5 properties at a time that are less than a mile away. We can value these properties at a 10% - 20% increase. With this amount of volume the increased value becomes the new standard! Talk about Power in Numbers!

DON’T

FOR A

“WE

WAIT

STRONG MARKET… WE CREATE IT!”

H RIVATE

Essentially hard money and private lending are one in the same and odds are, you have never heard of it, or how powerful it can be in your investment deals. We are often asked, “why don’t I just go to a bank and get a conventional loan for a flip? The answer is very simple, you can’t. Banks typically don’t lend on distressed property, regardless of the condition. Even if it was a perfectly clean property you grabbed at a foreclosure auction, they aren’t lending on it right away.

For sake of this quick lesson, we are going to refer to Hard Money as the institutions who lend capital for fix and flips and other alternative projects. Private Lending is essentially you are being that institution.

Hard Money works similar to a conventional loan, except you pay a higher rate and you are paying interest only on the loan. You identify the property, it goes through a typical appraisal process, it is funded through a closing attorney and so on. You make repairs and then you are able to draw on your loan for those repairs once you made them. Some people feel leveraging capital is expense, due to the higher than conventional loan interest rates. Look at it this way, if you had $100k to invest would you want to put it all in one property, or be able to leverage hard money and put into three $100k investments at the same time?

H RIVATE

Where do hard money lenders get their capital to loan to us as investors? From investors like you! These are hedge funds and institutions offering private investors low, but safe terms on their capital – typically 4%-7% a year if they leave it in for 3-5 years. Well, the pandemic changed this game as well. There was a point in the beginning, no hard money lenders were lending during covid. This was obviously extremely detrimental to institutional flippers like Strategic.

The solution to the crisis of no hard money, was to skip hard money lenders all together and go after their investors (like you). Rather than 4%-7%, we can offer Private Lenders as much as 15% on their loans to us. They get the same security/collateral a hard money lender requires – First position lien against the subject property. What we get in return are rates close enough to hard money, it is better to pay it to a Private Lender and avoid all the hassles and hoops they come with.

Leverage your Cash

When you Leverage your cash in a partnership with SPI, you not only gain a team of professionals working around the clock to ensure a successful and profitable investment… but so much more!

Better Loan Rates

More Bang For Your Buck!

Passive & Transparent

Due to the volume of investments we handle we have a very close relationship with the private money lenders that we work with. Because of this relationship we are able to get you a much better loan rate, stretch your capital — use less upfront but invest in more, and like everything we do, it always remains completely passive and transparent to you!

64.8%

Private Lending

Why not get a conventional loan?

If you are a seasoned investor that has been leveraging through private lending, you already know the answer to this question. For the rest of you, there are a multitude of reasons, such as; buying power, impact on personal and business credit lines, value of time vs. cost, etc.

LOCATION - Hilton Head Island, SC

TERMS - 12% Cash on Cash over 8 months

PAYMENTS - Monthly payments of $1500 on $100k investment

PRINCIPAL - Principal paid through escrow at closing

COLLATERAL - Security Deed against property

Each Investment starts with our due diligence process. In addition to researching each individual property, we also evaluate the neighborhoods in which they are located. We focus on what is currently on the market, what previously sold in the area, the cost of repairs that will be needed for renovations, and calculate the value of the property after all the renovations take place. Such due diligence helps ensure we buy and sell right, creating a predictable atmosphere with high-yield returns.

Due Diligence Acquisition

After performing the due diligence process, once we are confident in the numbers, it’s time to buy. The acquisition of each property may vary. Whether it’s via a foreclosure, auction, listed on the MLS, a condemned property, or even an off-market property that was brought to us from our vast network of Realtors or wholesalers, they share this common characteristic: All are under-valued, distressed properties in need of renovations that can be sold for an average 20% return.

After the acquisition of the property we are ready for the renovations. Already having our budget amount calculated from the due diligence process and our established list of contractors and specialist, we get started right away. Due to the volume of investments we perform each year, this enables us to purchase materials in bulk. Performing similar repairs in each property, using the same style of windows, doors, colors of paint, etc. We can streamline the process. Minimizing the time it takes to renovate and maximizing the profits.

The final stage in the process of fixand-flips is off-loading the property. With an already established network of Realtors and other investors who are looking for buy - and - hold opportunities, this process can happen rather quickly. The entire process from due diligence all the way through to off-loading has an average timeline of 9-12 months and an average annualized return of 20%. Each client retains 100% ownership throughout the investment. And because SPI is a performance-based company, this is the stage at which we receive our payment.

LAND DEVELOPMENT

This isn’t just your average land development project. As our name suggests, this is strategic land development in markets either soaring in appreciation, or are about to. We also offer our land development in project stages. You could buy a lot, before it is subdivided and appreciates. You could buy at the pre-construction stage, build the home and profit off the sales, or rents. You could even buy the home post construction and rent ready, as again, our projects are strategic and appreciation infinite. Currently, we are developing in the 6th fastest growing county in the country, which will see an influx of job growth of more than 15,000 new jobs in the next 3 years. This is an area that currently has next to no housing.

Our investments in land projects are strategic as well. You can be an all cash investor, you can work with a conventional loan, or one of our favorites, you can work with a private lender. The following examples show you what our customers are seeing today in their investments, both cash and conventional.

Bryan County is the Fastest growing county in GA and the 6th fastest county in the nation

LAND DEVELOPMENT

Hyundai Motor Group has recently invested $5.54 Billion into an Electric Vehicle Facility, located in Bryan County (The 6th fastest growing county in the country!)

Lots Today August 2023

25% Annualized

Lots Subdivided August 2023

10% Annualized

$55,000 $68,750 $62,000 $68,200

Build to Rent — All Cash

Lot + House: Gross Rent: Gross Profits:

$165,000 $20,400/yr

12.36%

National Average rent 8.4%

Build to Rent — With Leverage

Lot + House:

Monthly Payment:

Gross Rent:

- Mortgage: Gross Profit:

$165,000 $20,400/yr

12.36% $9,024

79.32%

• * Will buy back, or pre-sell to end user once construction on the homes begins

Build to Flip — All Cash

Build to Flip — With Leverage

16 Acres = 130 homes

We recently acquired 16 acres no less than 5 miles away from Hyundai’s mega site! This land is the perfect location to build a new community for future workers of the largest development project in Ga ’s history!

Short Term Vacation Rentals

S ACATION

Short-term vacation rentals (“STVRs”) have obviously been around for decades, but the game-changer came with the pandemic. As parents became stay at home teachers and the options to stay in hotels dwindled, the STVR market exploded. Families chose to homeschool at the beach, rather than cooped up in their Manhattan apartments. Those who traditionally stayed in hotels for vacation were forced to try something a little different and discovered the incredible value in STVRs. To put it more simply, the pandemic changed the way Americans vacation and the profit margins for STVRs can be mind boggling. The explosion in this industry has been such that municipalities are working in earnest to try and figure out how to create occupation “certifications” in many markets. These certifications are meant to slow the growth, but more importantly, figure out a way to get some revenues out of owners. Obviously with the switch from resorts to a property owner, there is a tremendous amount of revenues lost in hospitality taxes. Literally anything can be converted into an STVR these days and just about everything is. Boats, planes, trains, and even a missile silo – if you can think of it, somebody has probably turned it into an STVR. Why not yachts? Along with traditional STVRs, term yacht charters exploded during the pandemic and have remained that way. After all, the operations are nearly identical to a traditional STVR, but it just has more maintenance – it also has a lot more profitability. With Strategic all our STVRs are available with fractional ownership, so you can have a piece of luxury without having to own all of it.

Short Term Vacation Rentals

Partial or 100% Ownership Options Available For as little as $50,000, or as much as $5,000,000

15% Annualized Return or Better!

Y A C H T C H A R T E R S

S.

T. V. R.

SHORT-TERM VACATION RENTALS

OAS

WELL FLIPPING

KOPX is a branded category of Oil and Natural Gas exploration and production partnerships created for accredited investors to achieve MPI (Monthly Passive Income), a multiple on invested capital, and significant tax savings.

Acquire: OG lease assets are acquired in proven fields across multiple basins located in the central region of the U.S. Assets are under-developed and often in a distressed leaseholder position. This acquisition strategy is critical in mitigating risk historically associated to OG investing.

Develop: Development is all about creating scalable value in 2 ways: optimization and workovers on existing, producing wells, and drilling new horizontal wells. This approach is designed to make valuable returns scalable, more quickly for investors.

Divest: After value is created, often in stages, assets become attractive for larger OG producers to acquire. The assets are positioned for sale as quickly as it makes sense for maximum economic return to investors within context of matching the right buyers. This is how a multiple on exit is designed to be achieved.

Live Where you Want Invest Where it

A OTTEST

Throughout this booklet we have hinted at secondary markets, markets with astounding appreciation, the 6th fastest growing county in the country and for the last 8 years, we have called this market recession proof. America’s hottest market is Savannah, GA and it continues to break the records of every projection it sets for itself.

There is literally too much to list about Savannah’s growing economy and infrastructure. A market whose home values doubled in the last three years and will remain that way. A market that had a median home value increase after all the rate hikes of 2022 and part of 2023. A 340% increase in tourism in the last 4 years! Savannah is truly recession proof and our investors and partners have been enjoying the ride with us in this city for the last 8 years and will continue to do so for the next 10, as the city revitalizes itself.

Like Charleston, Savannah is following the same patterns and urban renewal/revitalization models. Charleston went through its economic boom during the last recession and came out with performance similar to what Savannah is doing today. What’s the difference? We have so much more economic infrastructure in place, or coming soon, Savannah will be even bigger and better.

- Savannah’s Market Appreciation has been 12.7 year over year for the past 5 years!

- Rent in Savannah has grown by as much as 33% in the past 3 years! (Nearly triple the states average)

- Since 2020 Savannah has transported more containers through its port then any other port in the country!

- This is part of the port expansion project — Projecting to increase population by 37% by 2033.

-Amazon!, This fulfillment center is bringing over 1000 jobs on its huge 380 acre lot!

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- Amazon’s investments in Georgia have contributed $3.2 billion into the economy

- Time Magazine has labeled Savannah as one of the Greatest Places in the world for 2021

- Also labeled #4 best small cities by Conde Nast & 20th on Forbes best places to retire in 2021.

- GA has taken over Hollywood to become the largest film producing market in the world! Mostly thanks to Atlanta, however Savannah has filmed over 45 movies since the popular Forest Gump movie in 94’

- Since the pandemic, tourism is up 340%, with 3.5mm visitors in 2022 vs. 1.5mm in 2019.

- Demand for rooms increased 34.1% in 2021 while the supply of available rooms increased 10% to 18,220.

- SCAD has 16,000 students across three campuses and contributes $577 million a year to Savannah's economy

- SCAD owns over 120 properties throughout the city.

Gulfstream Aerospace has unveiled plans to continue the expansion of its aircraft and wing manufacturing facilities in Savannah, Georgia.

The 262,000 Sqft expansions, is an investment of $150.7mm

- Hyundai is Developing a $5.5 Billion Electric car factory! This new factory will employ 8100 new workers.

- Home values in Savannah have increased by 29% in the past 12 months.

- Median Home Values are up an average of $50,000 in just the last 6 months

- Part of a Southeast Region consisting of 60 Market “centers” between GA, TN & AL. Although competing with larger populous cities like Nashville, or Atlanta, Savannah was the second largest city for sold properties in 2021/22.

- First sustainable soundstage in the world being built in Savannah $40mm initial investment.

- Project leaders estimate it will contribute $265 million annually to the local economy.

Before

Before After After

Total Investment: $ 150,663.84

Sold For: $ 182,001.12

Net Profit: $ 31,337.28

Annualized Return Investment length 7 months

Before

Before After After Total Investment: $ 85,648.66

Sold For: $ 113,927.85

Net Profit: $ 28,279.19

Annualized Return

Investment length 10 months

Before

Before After After Total Investment: $ 110,023.08

Sold For: $ 124,966.11

Net Profit: $ 14,943.03

Annualized Return

Investment length 3 months

Before

Before After After

Total Investment: $ 2,544,267.45

Sold For: $ 3,248,519.29

Net Profit: $ 704,251.84

Annualized Return Investment length 11 months

GET STRATEGIC WITH HOW YOU INVEST

When you invest with SPI, you build wealth with confidence. We offer a wide range of investment strategies all which are 100% passive to the investor. See below for some of our most popular investments.

How To Get Started

1 Select which investment strategy is right for you. (Not 100% sure? Reach out and we will provide more information)

2 Contact us: Let us know what strategy you selected and how much you want to invest.

3 Sit back and wait for the Passive Returns. Seriously. It’s the simple! Scan here to get