Have the Government Make a 30% Down-Payment towards your GO Zone Property Which In Turn Will Save You Thousands of Dollars on Your Income Taxes!!



An Exclusive Luxury Development in Oceans Springs, MS
“Designed and built by Mississippi residents for Mississippi residents” #1 Emerging Market in the United States for 2008


- Predicted by CNN money to average 5% annually in appreciation for the next 5 years

- Only 4 miles from the Biloxi Casino strip

- On-site property management

- Proven system with over 70 successes in the first round of the Small Rental Assistance Program

- High natural elevation of 36' on average that did not get wet during Katrina

- Positive Monthly Cash Flow

- Unmatched on-site amenities in the Gulf Coast (Ask any other developer if they have a pool, day care center, club house, bbqs, play ground, walking trails, landscaping and broadband Internet throughout the community)

- Over 50% of homes in community dedicated towards owner occupants!

- Sound planned exit strategy

- Highly rated public school systems within 1 mile

Why Invest in Mississippi, especially the Ocean Springs market?

While most of the U.S. housing market is in a correction, investors need a emerging market with sound economics to invest in.  Areas like Southern California, Las Vegas and Florida, are NOT YET attractive to invest in due to their horrible price-to-rent-ratios. 

There are several factors that contribute to the Biloxi, Mississippi area as one of the best emerging markets in the country.  HousingPredictor.com has ranked it the #1 market with 4.9% estimated appreciation in 2008.  This market is moving in the opposite direction of other U.S. housing markets, because it has less supply than demand.    

After 15 months and thousands of hours of due diligence we have chosen an area in Ocean Springs as our target market  We have done many investor tours over the past year with real estate investors from all over the country and they have told us time and time again:

"If I was going to move to Mississippi, then Ocean Springs is where I'd want to live".  It's not just the out of state investors that feel this way, it is also the preferred location by the locals.  Given the choice, shouldn't you invest in an area where you would actually want to live?  By investing in the high-end area of the Biloxi region, you will position yourself nicely for future appreciation, exit strategy, and overall return on investment.

Aren't There a lot of Good GO Zone Qualified Developments Out There?

The short answer to the question is an emphatic NO!  There are many GO Zone Qualified Developments, but none we would deem "a good investment".  There are many other real estate groups pitching over-priced condos that have horrible price-to-rent-ratios that negate the tax benefits offered by the government, then there are other groups selling homes in bad neighborhoods where it's going to be very challenging to get quality tenants.

Because there is a shortage of developers with money, what has happened in this market, is scattered lot development.  After Katrina, this area had a 16% appreciation and local land went from dirt to gold.  To get a true full blown development (like ours) in this area, you need to spend millions of dollars and take the time to develop and build real infrastructure.  A very small percentage of developers have the money, resources, and knowledge to put a development like this together.  Instead, they buy lots from land holding companies once they have a buyer in contract and get you to sign a construction agreement with them.  Your home could be located anywhere and next to anything. It is obviously crucial to choose the right area for your GO Zone investment.  Although other developers are building nice homes, you have to really consider the neighborhood in which they are being built.  A house like this could end up being your neighbor.

Do You Have More Information on the Area's Demographics and Statistics?

Yes, here are 3 different sources that have the demographics and statistics for the Ocean Springs market and their highly rated public school systems.

Ocean Springs Community Profile   Ocean Spring statistics   Ocean Spring Stats

Tell Me More About the Development

Our Ocean Springs development is sitting on 260 acres that is owned and designed by a local Ocean Springs developer and resident.  The development is built with the end user in mind.  Of the 779 total lots available, only 330 will be available to investors.  218 of which are luxury duplexes and 112 are brick single family homes with various floor plans and designs.  Our local commercial broker, who lives in Ocean Springs, has a town house exit strategy designed for the duplexes to maximize investors return on investment.  This means that you will be selling individual units, opposed to a multi-family unit.  It is also important to note, that our broker is local, so finding an agent to assist in your exit strategy is already set up for you!


Duplex Floorplan


Duplex Floor Plan


Single Family Home Floor Plans

What am I looking at for my monthly Cash Flow?

It was important for us to find a development, where investors could not only be in a highly desirable location, but also produce positive cash flow.  We have worked closely with our property manager, local bankers, insurance agents and government agencies to get these numbers as accurate as possible. 


Duplex with SRAP
Sample Proforma 

Single Family Home

Duplex Sample Proforma  

Single Family Home
Sample Proforma

What is this 50% Bonus Depreciation and will I qualify?

The 50% Bonus Depreciation is one of the best tax shelters in our lifetime for the average investor.  In order to attract the real estate investment community, the government created the GO Zone legislation, which rewards real estate investors who put rental property into service.  In return for helping to create affordable housing, investors are allowed to depreciate 50% of the improvement in the first year! 

How much is this?

The math is pretty simple.  Lets say that the improvement to the property is $100,000 (this has the land subtracted, as land is never considered depreciatable). 

$100,000 * 50% = $50,000

In addition to the $50,000, you also get 50% of your normal straight line depreciation:

$100,000/27.5 = $3,637 *50% = $1,819

So your first year depreciation is $51,819. 

This is ($51,819 - $3,637)= $48,182 MORE THAN YOU WOULD NORMALLY GET!


Since we started this project, I have had thousands of one on one conversations.  It still amazes me how many people are interested in the GO Zone for incentives, but over look the easiest one to get, which is the 50% Bonus Depreciation for the tax benefits.  I think many investors feel that they will not qualify for the tax benefits, because they see section 4492 in the IRS tax code, which states that you must be a real estate professional.  People do not know that there are sub levels to a real estate professional and do one of two things.  1) Automatically throw it out the window or 2) Ask their CPA who hasn't spent the time to look it up and tells them not to bother, as they will not qualify.  As stated at the beginning of this landing page, making a sound economic decision on a property before considering the tax benefits is crucial, but a good property can be made a great property by the 50% bonus depreciation. 

I wanted to show the benefits of the GO Zone 50% bonus depreciation, especially since taxes will probably go up in the following years.  No matter who gets into the White House, it is difficult for me to believe that any taxes will be cut when we have an outrageous deficit, expensive war and rough financial markets.  Smart investors position themselves to take advantage of large tax benefits and emerging markets.  I broke down the following scenarios for married couples and single tax payers to see how much they could have saved by purchasing $270,000 of GO Zone qualified real estate in 2007. 

These numbers are close, but not exact.  We have a CPA on staff, who is happy to do a FREE one on one consultation for you, to determine exactly if and how much you will benefit.  He is especially knowledgeable in using self directed IRAs and 401Ks to make real estate purchases.  CPA services are also extremely useful when maximizing your Internal Rate of Return and minimizing your capital gains and recapture if you chose not to 1031 exchange with in the GO Zone.

(All income is adjusted gross income)
2007 Tax brackets for Singles:
Adjusted Gross Income:    Tax without GO Zone:         Tax with GO Zone:          Savings:
$30,000                                 $5,282.50                            -$10,917.50                       $16,200.00
$60,000                                 $19,386.25                          -$7,613.75                         $27,000.00
$80,000                                 $26,786.25                           $7,858.75                         $30,240.00
$165,000                               $93,598.75                           $57,958.75                       $35,640.00
$350,000                               $223,969.00                         $186,169.00                     $37,800.00

2007 Tax brackets for Married Couples:
Adjusted Gross Income:   Tax without GO Zone:           Tax with GO Zone:          Savings:
$30,000                                $6,065.00                              -$10,135.00                      $16,200.00
$65,000                                $25,022.50                            -$1,977.50                        $27,000.00                               
$130,000                              $66,373.00                             $36,133.00                      $30,240.00
$200,000                              $109,831.00                           $74,191.00                      $35,640.00
$350,000                              $217,101.00                           $179,301.00                    $37,800.00



Do These Units Qualify for the Small Rental Assistance Program (SRAP)?

We work closely with program officials and agencies to ensure our knowledge of the program, we feel these factors give you the best opportunity to be approved. Our developer received 70 approvals in the first round of the Small Rental Assistance Program. We can not guarantee your approval, as your individual financial situation and other criteria are important in the point-based-system process, but your chances are maximized with us, as we have a proven property and process so you can get your share of the allocated $262,500,000 for this program.

The developer has allocated a limited number of properties, that we can write contingent upon SRAP approval. To the lucky few investors who reply immediately and qualify for this limited block of contingent contracts you will ensure your investment is as close to bulletproof as possible!

Their are some eligibility requirements for this limited pool of units as well as some holding requirements to take full advantage of the forgivable grant program. Call now to see if you qualify and be immediately put on our priority waiting list. With the objective being to close upon approval and put yourself in a position to take advantage of this one of a kind Government program. Here is an approval letter from the first round.

Recently, the Mississippi Development Authority posted the following warning to all applicants who wish to participate in the Small Rental Assistance Program. Upon reading you will see it is of the up-most importance to work with reputable developers when applying for this program. For more information please read the Fraud Misinformation (PDF document). For detailed information on the Second Round of the Small Rental Assistance Program you can download the Mississippi Development Authority Official Guidebook.

Is it Mandatory that I Apply for the Small Rental Assistance Program (SRAP)?

Absolutely NOT!  In certain circumstances some of our investors are choosing NOT to apply.  As part of the SRAP program investors are required to have certain holding periods along with mandated slightly below market rental rates. For certain investors the turn-key nature of this investment, the #1 Emerging Market in the country, coupled with the tremendous Bonus Depreciation benefits on their taxes are choosing to not participate in the program. Call for a consultation to best evaluate your situation!



I do not live in Mississippi and I have never owned real estate away from where I live

No worries, 99% of the investors we work don't either.  The majority of our investors thus far are live in California, New York, Florida, Texas, Illinois and overseas.  Property management is a huge part of your investment and that is a major reason you should be working with us.  The on-site property management team understands the development inside and out.  Do yourself a favor and pull up local property managers on the Internet or in the phone book.  Call them, and let me know how successful you are with them.  We did that as part of our due diligence here 15 months ago and still haven't been called back by most.  A lot of them take on more than can handle and in return, your investment suffers.  Here is a list of questions answered by our local, on-site property manager. 

1.    Are you, available for investors to speak with? If so, how do I contact you?

A.    Yes, I am available to answer questions and to be used as a resource for each of the investors.  Prior to closing, Skyler Moore can also be used as a resource. Skyler and I work closely together and you will find either of us available to help answer questions you may have not covered here. Our contact information is as follows: To speak with Nicole, contact Skyler at 561-404-7375.           

2.  Tell me what I need to know about rent. How are rents being calculated? What happens if I want to negotiate my rent to make it different than other units?

A.    The rents are calculated based on market surveys and MDA rent restrictions.  The SRAP base rent for one level should not exceed $964.00 while the remaining needs to be set at $1150.00.  This is only for the first lease term of 6 months to one year.  These rent numbers require the tenant to pay utilities.  Unless you tell me otherwise, the tenants will pay their own utility bills. These rent rates with the tenant paying their own utility bill is in full compliance of the MDA's SRAP program.

The higher priced level can legally be rented by an individual earning less than 120% of the medium income at a rental rate of up to $1,496. I suggest again that to begin with we charge the rents I have outlined. However, if anyone would like to offer their unit at a different rental, I will address this on an individual basis.

3.  What do I need to expect for maintenance issues?

A.    On tenant issues, such as sinks leaking, tubs stopped up, etc. I am looking at hiring someone to be available on-site.  I can approach this in two different ways;

(1) Each duplex will pay for an available maintenance person who will be on-call for basic labor and maintenance issues.  This maintenance person would also provide the labor on a/c filter changes monthly along with battery changes for smoke detectors bi-annually. This option will provide basic maintenance at approximately $40 monthly.

(2) All maintenance issues will be covered by vendors and on-site management.  Charges will vary based on job and time. 

Both of these are ideas and will be discussed further as time progresses. Each duplex, as per the management agreement, will have $500.00 reserve paid by the developer at closing.  This money will be used to repair and maintain the duplex and will be replenished when needed.

Any damages caused by tenants will be addressed and billed to tenants on a case by case basis.  I will pursue legal action against persons who damage your investment and will bill each tenant individually.

4.  Do I have to pay for putting a new tenant into the unit? When the tenant moves out, how much will be charged to re-lease the unit? Who pays for the initial account setup, initial advertisement and upfront fees?

A.    No. The owner will not pay for putting a new tenant into the unit, there is also no charge for re-leasing, and there is no initial account setup, initial advertisement or upfront fee cost.  This is all covered by the management agreement, which is between 8% and 9% of monthly rent.

5.  What kind of vacancy rate can I expect?

As I have been working to gather a data base of perspective tenants, I can not pre-lease any units without knowing when the unit is coming available. I really need to stress the importance of communications.  If you would like to have your unit pre-leased then I need to be contacted as soon as you are ready to close.  At that time I will work to find your tenant.  I will be leasing units in the order in which they come available.  I would expect to have a 4.25% vacancy. This number is derived from a 15 day per unit vacancy and is based on current market studies.

6.  Can you tell me how the application process will work?  Is there an application packet that I can see?  What is the screening criteria going to be?

A.    The application process is as follows:
1.    Complete MDA Application
2.    Verified Employment and income
3.    Rent to income ratio can not exceed 25% in most cases-rent to income ratio will not exceed 50% in any case.
4.    Good prior rental history
5.    No evictions-no exceptions
6.    Good housekeeping habits
7.    Sufficient credit check and credit reference
8.    Sufficient criminal history
9.    Head of household must be 21
10.  Must comply with occupancy standards
11.  We must have the following within 48 hours of deposit:
A.    A MDA complete application from each prospective resident
B.    $50 application fee per applicant
C.    A copy of applicant's photo ID

Changes can be made to individual owners by request.  I encourage everyone to review the credit and criminal retrieval website found at www.e-renter.com. This will also include Social Security Number verification, Evictions, Liens and Judgments along with a Bankruptcy Report.  The cost to the owner is $34.95.  The cost to the tenant is $50. Different credit reports can be run for less if desired.

7.  What is the pet policy?

A.    Pets may be restricted by individual owners.  Currently, I have been advertising the following:
(1) one pet: $400.00 nonrefundable and an additional $20 monthly
(2) two pets:$800.00 nonrefundable and an additional $40 monthly

8.  How much is the security deposit?

A.    Recommended Security Deposit Graduated Scale:

Level of Acceptance    Rental Amount    Deposit
High                               $964                      $200
Low                                $964                      $400
Conditional                   $964                      $964
Decline*                        $964                      $1928
High                               $1150                    $200
Low                                $1150                    $400
Conditional                   $1150                    $1150
Decline*                        $1150                    $2300

High-favorable credit rating
Low-good credit rating
Conditional-low credit rating
Decline*-unfavorable credit rating (only accepted with owner approval)
*All residents will be required to pass the same criminal background check.

9.  Will I be receiving documentation from you regarding tenant's income and rent so that I am able to assure that my units are in compliance with the SRAP requirements for my MDA loan?

A.    I will send any information requested concerning renters.  I want everyone to feel comfortable with our decision in renters.  This is also an important part of meeting material participation, which John our CPA can go over with you. 

10. Will you keep me in compliance with the SRAP requirement for my MDA loan?

A. Yes.  My company will submit to the MDA, all of the required paperwork needed under the current guidelines of the MDA to keep you in compliance. I will keep a copy of all correspondence with the MDA on your behalf as well as send you a copy of all correspondence with the MDA. I ask you to do the same. Your files will be kept up to date in our office. The MDA reporting services are included in your management fee with Stone Oak Management for the current level of required reporting. Anyone needing additional reporting or copies of their files can contact me directly.

Anticipated Monthly Distribution Projection

*INCOME PROJECTIONS                      Rent                      $ 2114.00

**EXPENSES        ***Taxes                                                   $ 392.00
                                 ***Insurance                                           $ 200.00
                                 ****POA Fee                                            $ 30.00
                                 Management Fee                                   $ 170.00
                                 Lawn Care                                               $  24.00

Total Anticipated Monthly Distribution $1,298.00.

$1,282 x 12 equals annual distribution of $15,576.00.

* Income based on one duplex with rental rates of $964 and $1150 monthly.
** Expenses based on operating without maintenance and debt services.
*** Taxes are based on numbers provided the Tax Assessors Office and are estimates which are subject to change.  Insurance numbers are based on current group policy rates and are subject to change.
**** POA Fees are subject to change based on amenities coming online. 

What is my insurance going to cost?

Insurance is a large concern among investors, especially since we have seen what mother nature is capable of.  Future hurricanes are also a concern, and that is why we have chosen a development that did expereince a storm surge during Katrina.  Wind insurance is what is expensive for property owners on the Gulf Coast.  The only way to get wind insurance is through the state wind pool, and as more people add in, the overall cost will be reduced. 

Our developer understands the importance of affordable insurance and paid the first $100,000 to reduce the insurance policy to around $200 a month per duplex.  This down payment also covers the general liability and builder's risk during construction.  After all of the units are sold in the first year, the HOA will look to negotiate the policy to even better terms on behalf of the individual owners (strength in numbers approach).  We have made it a priority to get the best insurance rates possible for owners.  This policy does not include flood, which is not required, due to our high elevation.  Our local commercial broker does not feel it is necessary for owners to pay the extra cost, but any owner is welcome to add flood insurance for an extra few hundred dollars per year.

What kind of financing is available?
We have teamed up with a local bank that loans local money.  What that means, is that we can get things done that a lot of big banks can not.  Most builders here in the coast, are not developers as we mentioned.  They can not put themselves at risk and have you as the investor, bear the risk with a construction loan, which is also more costly due to two closings.  On top of that, construction money has been difficult to find and as a result, brings expensive hard money products to the table, which most builders add/build in to the price.  They know most investors would not do a deal if they were paying 6%-10% origination for the construction money alone! 

Our developer builds the properties on his dime!  He is the one at risk for performance, NOT you!  There is one closing on an end loan (30 year fixed product), which saves you money in closing costs.  We have several financing options for investors to customize to their requirements.  To set up an appointment with our banker, as these financing options do change, contact Skyler at 561-404-7375.

Duplex Good Faith Estimate

Single Family Good Faith Estimate

Duplex Good Faith Estimate
Single Family Good Faith Estimate

How is the job market?

The casinos create a huge economic impact on the Biloxi market.  After the storm, casinos were allowed to move on shore, opposed to being only allowed on water, which has created a gambling boom for years to come.  The entire Gulf Coast learned a valuable lesson from Katrina.  They understood, that they needed to change their future construction methods to withstand future storms and the casinos are no exception.  When you visit the casinos you will notice that there isn't much on the first floor.  The new casinos are designed to sustain minimal damage in future hurricanes and keep their revenue centers on high ground.  Due to this layout, minimal damage is done to the casinos and can reopen as quickly as possible when a storm does occur. 

With the investment of billions into the casino industry, record revenues have already been recorded with the first half of 2007 bringing in $653 million!  The payroll alone in the first quarter of 2007 exceeded 97 million!  Each casino employs 3,000 people on average.  This is the large income pool that is looking to rent and own homes!  Our location in Ocean Springs is 4 miles from the Biloxi strip!  There are currently 11 casinos that are open and operating in the Biloxi region.  With there to be an expected 22 within the next 5 to 7 years, this industry provides a strong attraction of vacationers, retirees and employment. 

Here is a list of current casinos that are open or scheduled for 2008 in and around the Biloxi area.

-    Beau Rivage
-    Boomtown Biloxi
-    Grand Casino Biloxi
-    Hard Rock
-    Isle of Capri
-    Imperial Palace
-    Palace Casino
-    Treasure Bay
-    Hollywood Casino
-    Silver Slipper
-    Island View

Casinos are not the only source of employment or revenue that positions Biloxi as an emerging market.  Military and private industry bring a strong presence to this area and provide thousands and thousands of jobs.  It is important to note that investors are not the only one who are eligible for the 50% bonus depreciation.  Companies also qualify and take full advantage, which allows them to accelerate the depreciation on their buildings and equipment, which significantly boosts their profits.  The airport is currently under a large expansion to accommodate for future tourism to the area.

We could write an entire book about the companies here and the economic impact they have on the area, but this landing page is intended to highlight the area.  Here is a break down of the MAJOR companies listed by industry in the area.  There are a large number of smaller companies and businesses, but these are the major players. 

Manufacturing and Distribution:
ANI Pharmaceuticals, Inc.
Bay Technical Associates, Inc.
Blacklidge Emulsions, Inc.
Boeing-Rocketdyne Propulsion & Power
Stennis Space Center
Chevron USA, Inc.
Fansteel Hydro Carbide
F.E.B. Distributing Company, Inc.
FedEx Ground Distribution Center
First Chemical Corporation
Future Pipe Industries
Goldin Industries, Inc.
Gulf Coast Pre-Stress, Inc.
Gulf Ship L.L.C.
Hartson-Kennedy Cabinet Top Company, Inc.
John Fayard Moving & Warehousing
Keith Huber, Inc.
Mississippi Phosphates Corporation
Northrop Grumman Ship Systems
Rex Distributing Company, Inc.
Pascagoula / Stennis Space Center
Seemann Composites
Soprema, Inc.
Sun Herald
Taber Extrusions L.P., Mississippi Division
Trinity Yachts
Triton Systems
United States Marine, Inc.
Wellman, Inc. - Pearl River Plant

Call/Data Centers:

Crossroads Shopping Center
Edgewater Mall
Prime Outlets
The Home Depot

H. Gordon Myrick Inc.
Roy Anderson Corporation
W.G. Yates & Sons Construction
Wink Companies LLC
Woodward Design + Build
Casinos in Operation:
Beau Rivage Resort & Casino
Boomtown Casino
Grand Casino Biloxi (Harrah's Entertainment)
Hard Rock Hotel & Casino
Hollywood Casino Bay St. Louis
IP Hotel & Casino
Island View Casino Resort
Isle of Capri Casino Resort
Palace Casino Resort
Silver Slipper
Bayou Caddy, Hancock Co.
Treasure Bay Casino

Biloxi Public Schools
Gulfport Public Schools
Harrison County School District (includes D'Iberville)
Long Beach Public Schools
Pass Christian Public Schools

Colleges and Universities:
Mississippi Gulf Coast Community College
Tulane University – Mississippi Campus
University of Southern Mississippi- Gulf Park Campus
Virginia College
William Carey University

Health Care:
American Medical Response
Biloxi Regional Medical Center
Cedar Lake Surgery Center
Garden Park Medical Center
Gulf Coast Medical Center
Keesler Medical Center
Hancock Medical Center
Memorial Hospital at Gulfport
Ocean Springs Hospital
Singing River Hospital
VA Gulf Coast Veterans Health Care System

Military / Federal:
Keesler Air Force Base
Mississippi Air National Guard
Mississippi Army National Guard
Naval Construction Battalion Center
NASA's Stennis Space Center

Blossman Gas Inc. – Propane Gas
Cable One
CenterPoint Energy-Natural Gas
Coast Electric Power Association
Mississippi Power Company
Singing River Electric Power Association


What if I am considering working with another Developer?

We recognize that there are many "opportunities" being promoted in the GO Zone (Hancock, Harrison & Jackson counties) by many developer and real estate agents.  We highly encourage you visit the competition first and then visit our development, because we are confident you will immediately see the difference .  We realize however that unfortunately many investors, due to the limited window of opportunity for these units may not be able visit the area.  If that is the case then you need to ask your developer the following questions when comparing the opportunities.

Ask Your Developer:

Do you have a model finished that I can look at ?
Can they provide you proof of lot ownership, via warranty deeds?
Will the developer build your investment property on their line of credit, or will they force you into a costly construction to perm loan?
Does the Development have On-Site Property Management?
Does the Development have highly desired amenities like on-site Daycare, Pool, & Broadband Access for the entire community?
Does the Development have Sidewalks? ( you will be really surprised at this one more often than not )
Can the Developer Prove that they have 1st round Small Rental Assistance Program (SRAP) Approvals?

After asking these questions to the competition, stacking the numbers sided by side, getting your FREE One-on-One Tax Consultation and talking to our on-the-ground GO Zone experts you will be 100% ready to move forward with this unique opportunity. Call now to reserve your unit and schedule a consultation!