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Income Properties International
Investing in
Apartments for
Income & Stability
Disclaimer Statement
IMPORTANT INFORMATION: This communication is for information purposes only and is not, and under no circumstances is to be
construed as, an invitation to make an investment in Income Properties International. Investing in RE Units involves significant risks. A
return on an investment in RE Units of Income Properties International is not comparable to the return on an investment in a fixed-income
security. The recovery of an initial investment is at risk, and the anticipated return on such an investment is based on many performance
assumptions. Although Income Properties International intends to make regular distributions of its available cash to Unitholders, such
distributions may be reduced or suspended. The actual amount distributed will depend on numerous factors, including Income Properties
International financial performance, debt covenants and obligations, interest rates, the occupancy rates of Income Properties International RE
properties, working capital requirements and future capital requirements. In addition, the market value of the RE Units may decline if Income
Properties International is unable to meet its cash distribution targets in the future, and that decline may be material. It is important for an
investor to consider the particular risk factors that may affect the industry in which it is investing and therefore the stability of the distributions
that it receives. There can be no assurance that income tax laws and the treatment of fund trusts will not be changed in a manner which
adversely affects Income Properties International.
Investing in RE Units can involve significant risks and the value of an investment may go down as well as up. There is no guarantee of
performance. An investment in RE is not intended as a complete investment program and should only be made after consultation with
independent investment and tax advisors. Only investors who do not require immediate liquidity of their investment should consider a potential
purchase of Units. The risks involved in this type of investment may be greater than those normally associated with other types of investments.
Please refer to the RE Offering Memorandum for a further discussion of the risks of investing in RE.
The RE Units are not “deposits” within the meaning of the Canadian Deposit Insurance Corporation Act (Canada) and are not insured under
the provisions of that act or any other legislation.
Income Properties International
860 W. 59th
Ave.
Vancouver, BC.
V6P 1X7
www.incomepropint.com
Contact:
Carl Mazur
(604) 839-7729
cmazur@incomepropint.com
Additional Information
*Income Properties International: LLLP, LLC, Land Trust.
Property Manager: Precision Real Estate Group.
*currently filing for registration.
Executive Summary
Today’s active urban families want to live in communities that not only meet their housing
needs but also offer the convenience of local entertainment, activities and a place to simply
unwind with their family and friends. Multi-family properties in growing urban areas
represent excellent investment opportunities when they are purchased at discount prices.
Our business strategy is focused on identifying multi-family properties that are in need of
attention due to previous mismanagement and / or neglect. We purchase these properties at
below market prices and redevelop the communities to their full potential. The
redevelopment of properties to their full potential is achieved through both renovations of
the buildings as well as creating vibrant communities to live in. Vibrant communities are
nurtured by assisting to organize the community around social / sporting activities and the
celebration of local and national holidays. Our proven model of converting mismanaged
multifamily residences into desirable communities is a business model which transforms non-
performing assets into profitable ventures. We are proud to provide stable and inflation
hedged investments for our investors while improving the standard of living of stable urban
communities.
Table of Contents
1) Introduction: Investing Challenges & Solutions
2) Investing in Real Estate: the Benefits
3) Who we are: Income Properties International
4) Overview: Income Properties International
5) Summary
Income and stability from investing in Apartments
Challenges: Volatile Markets & Low Interest Rates
Riskier asset classes volatile / GIC rates barely cover inflation
Needs: Investment Income & Portfolio Stability
Capital preservation: the top priority for conservative investors
Retired income-oriented investors
desire:
 Reliable monthly distributions
 Tax-advantaged income1
 Capital preservation
Conservative investors (pre-retirees)
desire:
 Moderate growth
 Capital preservation
 Tax-advantaged income1
Tax Consideration Lifestyles are based on after-tax income
Solution: Consider investing in Real Estate.
Investing in Apartments for reliable Income & Stability
Income generating multi-family properties are one of the safest sectors within the real
estate market.
Staying private
corporate
in the
popular Income Trust Category
Safest sectorsOne of the 2
in
Real Estate and IncomeTrusts
Often generates more
stable revenue; lower volatility3
Primary Income Solution1
2
3
Apartment Real Estate investing
Private Real Estate advantages
Primary Advantages Monthly distributions / moderate growth / capital preservation
Solution: Investing in Apartments for Income & Stability
One of the safest sectors within the real estate market – income producing multi-family
holdings.
Key Features
 Monthly distributions
 Tax-advantaged income1
 Capital growth potential
 Private apartment Real Estate
 Low correlation to other income
sectors and asset classes 4
Key Benefits:
 Regular reliable income to meet
investors’ financial needs
 More after tax income (vs. other income
sources)1
to afford a better lifestyle
 Moderate capital growth potential to help
offset inflationary concerns
 Stable, rational pricing. Lower volatility 3
 Real estate can diversify a portfolio and
reduce portfolio volatility 4
Diversification
Multi-family properties can increase diversification and provide
income from your portfolio
Benefits of Investing in Multi-family Properties
Apartment Real Estate Advantages
Income: The tenant base provides stable and predictable income
Investment growth: Real assets appreciate over time
Lower volatility: Impacted by fewer short-term market forces
when compared to other asset classes
Capital preservation: A fundamental staple with downside protection
(Varies by asset class)
Hedge against Inflation: Investors are consistently protected against
the destruction of wealth caused by inflation.
1
2
3
4
5
Quick Overview
Real Estate Sub Sectors
 Single Family Homes
 Condominiums
 Retail
 Services
 Apartments
 Commercial
 Industrial
Real Estate sub sectors do not perform the same
Above sub sectors will react differently to various market forces
(i.e., economic boom/bust, financial crisis, interest rates, currency, unemployment rates)
Comparing Asset Class Performance
Real Estate Investment
Real Estate Investment RE offers income-producing, diversified investment. It is one of
the most popular options to add to any investor’s portfolio.
Consider Apartments: The most conservative investors invest only in apartments. Proven
over time to be the least volatile2 mainly because they do not suffer from anchor tenant risk,
namely that no individual tenant leaving an apartment building can materially affect rents in the
same way that a big box chain could in, say, a shopping centre commercial RE investment.
 Non Listed Property Ownership**: +3.7% Non Listed Apartment Property**: +6.4%
** Source IPD (2008 Edition); Note: Non listed property ownership is similar to a Private REIT
Publicly-traded REITs tend to exhibit Stock Market volatility & may be correlated
Growth of $10,000 invested: past 25-year period as at March 31, 2013 (annual update)
1987 1997 1998 2000/02 2008/09
Calendar Returns
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
S&P/TSX Composite
Index TR (%)
S&P/TSX Capped
REITs Index TR (%)*
11.1 21.4 -14.8 12.0 -1.4 32.5 -0.2 14.5 28.3 15.0 -1.6 31.7 7.4 -12.6 -12.4 26.7 14.5 24.1 17.3 9.8 -33.0 35.1 17.6 -8.7 7.2 3.4
– – – – – – – – – – -8.5 14.8 21.4 29.9 7.4 25.9 14.0 25.3 24.7 -5.7 -38.3 55.3 22.6 21.7 17 1.7
Black
Monday
Crash
Asian
Financial
Crisis
Russian
&LTCM
bailout
InternetBubble
Bursts
&9/11
Global
Financial
Crisis
$10,000invested 31-1997)(Dec
S&P/TSXCappedREITsIndexTR 6
S&P/TSXCompositeIndexTR
For Directional Purposes Only (the starting points
of the two indices cannot be the same for the period shown*)
$10,000invested 31-1985)Dec(
$71,400
$20,000
$60,000
$40,000
$80,000
6
Inception date for the S&P/TSX Capped REITs Index was Oct.15, 2002, however, the back calculation pricing is available starting Dec.31,1997. Source: Morningstar Research
Inc. as at Mar. 31, 2013. This chart is included to show the volatility of stock market indices in general, the historic correlations between the S&P/TSX Capped REIT index TR
and the S&P/TSX Composite Index TR and the performance of these indices during major market corrections during this time frame.
Apartment returns are not guaranteed, their values can change frequently and past performance is no guarantee of future results.
Private Apartment Property Index exhibits steady growth
Source: REALPac/IPD Canada Annual Property Index as at Dec. 31, 2012. This index is referenced as it is the longest direct property data series that Income Properties
International has found that is commonly used by institutional real estate investors. Income Properties International believes that it the best available series to demonstrate the
long term cash flow, capital growth and volatility characteristics of apartments as an asset class.
It is an unlevered index. PAST PERFORMANCE MAY NOT BE REPEATED.
Real Estate investments are not guaranteed, their values can change frequently and past performance is no guarantee of future
results.
Above ICREAM / IPD Index only available with annual data points versus indices on previous slide shown with quarterly data. It is an unleveraged index.
Real Estate is an ideal choice for many investors
Investor Needs
 Stable & consistent income
 Help offset inflation with moderate growth
 Capital preservation
Private Apartment Real Estate Benefits
 Proven history of regular tax advantaged income1 distributions
 Potential for capital growth in addition to regular income
 Low volatility 3 and low correlation to other asset classes4
Investor Suitability
- Long-term investors focusing on regular income and have a moderate risk tolerance
- There are certain risks inherent in an investment in Real Estate, including risks related to liquidity/
Timing of redemptions and general real estate property ownership
- Please read the Offering Memorandum / Prospectus from Income Properties International.
Acquisition and hybrid “Disposition / Partial-
Hold” option.
Income Properties International acquires undervalued apartment buildings with a minimum of 20
units. In some cases, these buildings are rehabilitated and 50% of the units may be sold within 10
quarters (5% per quarter) thereby retaining the remaining 50% of the units for ongoing rental income.
50% of the units sold within the first 10 quarters provide profits which are utilized to reduce the loan
burden for each property and to provide distributions for investors.
Selling 50% of the units in each property also creates a sustainable and balanced mix of owner
occupiers and renters in each property.
Focused, Experienced, Disciplined
Focused
 Dedicated to investing and managing multi-unit residential properties
Primarily apartments
Experienced
 Investing in Multi-family real estate since 1992.
 Depth of real estate investment and management experience
Disciplined
 Proven,process-driven investment methodology to manage risk and
uncover opportunities to maximize steady income from properties
Executive Ownership
Clients: Private placement investors
The Management Team
Three fundamental strategies working together
Focus on Apartments
Apartments have proven to be the least risky asset class of real estate
investment2
(apartments are a basic needs industry and tend not to be as impacted by
anchor tenant risk as other real estate investments).
Focus on undervalued US properties
Solid economy, stable and fiscally responsible government, strong
innovative sectors = growing environment to invest in.
Benefit of Private Real Estate
Stable, rational pricing with lower volatility3
and lower correlation4
to the major equity markets
1
2
3
We Aren’t Trendy . . .
. . . we offer stable income and have growth potential
 Unrecognized value
 Untapped income potential
We concentrate on communities with strong low vacancy levels and strong population
demographics. These hidden gems are appealing when we do the financial analysis
What we look for:
ForForfor:
Monthly Distributions
Growth Potential
Tax Efficient1
Min.$50,000
Summary: Income Properties International
People
 Carl Mazur,, President
Karen Abinet, VP, Operations
 Experienced & dedicated
Process
 Managed to deliver:value-oriented 2-step strategyProven,
Regular income, Low volatility, Moderate capital growth and
Capital preservation.
Performance
 Focused on providing regular income distributions to investors.
Portfolio
 Apartment Real Estate can help diversify portfolios overweight in equities
With its Low correlation4 To major asset classes and Lower volatility 3
Real Estate
EIT
for yield  Apartment Focused for stable income  Private for lower volatility
1. “Tax Advantaged” Income means that due to the general ability of real estate owners to deduct capital cost allowances against income, that
current taxes can often be reduced and/or deferred whereas with an interest bearing instrument such as a bond or deposit no such offset from
capital cost allowances are available. 100% of distributions are treated as return of capital (Box 42 on a T3 Form) for tax purposes. There is no
guarantee that this will be the case in the future.
2. Source: REALpac/IPD Canada Property Investors Digest: Long Term Series total unleveraged returns between 1985 and 2010 comparing
Retail, Office, Industrial and Residential properties on an unlevered basis. The Residential sector experienced the highest compounded returns,
the highest average annual simple returns, had the lowest standard deviation of annual simple returns of all these sectors and was the only
sector to never have had a negative year on a total return basis. PAST PERFORMANCE MAY NOT BE REPEATED.
3. “Rational pricing with lower volatility” means that property values are based on a methodical process involving a number of highly skilled
professionals that must opine on and thus impact upon value including a) knowledgeable and professional buyers and sellers b) third party
appraisers and c) financial institutions (that will be restricted in loan to value ratios and debt service ratios and other financial covenants).
Valuation methods would follow standard valuation guidelines used in the industry and third party appraisers would be accredited professionals.
Further, buyers and sellers are not casual participants in the marketplace and are risking substantial capital in a transaction given that the
average equity required for a purchase would be substantially larger than that required to buy a few shares of stock in a publicly listed company.
Whereas regular stock market investors need to have no specific skills, industry knowledge, infrastructure, substantial capital, substantial capital
at risk in a single investment and relationships that would otherwise serve to exclude them from the marketplace, direct property investors must
have these at a minimum. The participation of knowledgeable buyers, and the limitations imposed by lenders for debt service and leverage
further act to constrain valuation parameters which constraints may not apply on a traded stock. This rational pricing means that in the absence
of changes in property net operating income (which ceteris paribus tend to move with inflation) or capitalization rates, that valuations tend to
move slowly over time in comparison to how stocks can move constantly and with great volatility over the course of the day (or any other
investment horizon). As such, rational pricing would tend to be associated with lower volatility.
4. Source: Canadian Investment Review, Spring 2001. “Canadian Real Estate and Inflation” by Victor W.K. Li
Disclaimer Statement
IMPORTANT INFORMATION: This communication is for information purposes only and is not, and under no circumstances is to be
construed as, an invitation to make an investment in Income Properties International. Investing with Income Properties International involves
significant risks. A return on an investment in Income Properties International is not comparable to the return on an investment in a fixed-income
security. The recovery of an initial investment is at risk, and the anticipated return on such an investment is based on many performance
assumptions. Although Income Properties International intends to make regular distributions of its available cash to investors, such distributions
may be reduced or suspended. The actual amount distributed will depend on numerous factors, including Income Properties International’s
financial performance, debt covenants and obligations, interest rates, the occupancy rates of Income Properties International properties, working
capital requirements and future capital requirements. In addition, the market value of the Real Estate may decline if Income Properties International
is unable to meet its cash distribution targets in the future, and that decline may be material. It is important for an investor to consider the particular
risk factors that may affect the industry in which it is investing and therefore the stability of the distributions that it receives. There can be no
assurance that income tax laws and the treatment of fund trusts will not be changed in a manner which adversely affects Income Properties
International.
Investing in Income Properties International can involve significant risks and the value of an investment may go down as well as up. There is no
guarantee of performance. An investment in Real Estate with Income Properties International is not intended as a complete investment program
and should only be made after consultation with independent investment and tax advisors. Only investors who do not require immediate liquidity
of their investment should consider a potential purchase Real Estate properties through Income Properties International. The risks involved in
this type of investment may be greater than those normally associated with other types of investments. Please refer to the Offering Memorandum
for a further discussion of the risks of investing in investing with Income Properties International.
Investments in Income Properties International properties are not “deposits” within the meaning of the Canadian Deposit Insurance Corporation
Act (Canada) and are not insured under the provisions of that act or any other legislation.
Morningstar Research Inc. is an independent research firm. Except to the extent otherwise specifically required by law, neither Morningstar nor
its affiliates nor their third party content providers shall be responsible for any trading decisions, damages or other losses resulting from, or related
to, this information, data, analyses or opinions or their use. Past performance is no guarantee of future results.
Income Properties International
860 W. 59th
Ave.
Vancouver, BC.
V6P 1X7
www.incomepropint.com
Contact:
Carl Mazur
(604) 839-7729
cmazur@incomepropint.com
Income Properties International
Thank you!
Investing in
Apartments for
Income & Stability
Notavailableforreproduction

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IPI overview 2014

  • 1. Income Properties International Investing in Apartments for Income & Stability
  • 2. Disclaimer Statement IMPORTANT INFORMATION: This communication is for information purposes only and is not, and under no circumstances is to be construed as, an invitation to make an investment in Income Properties International. Investing in RE Units involves significant risks. A return on an investment in RE Units of Income Properties International is not comparable to the return on an investment in a fixed-income security. The recovery of an initial investment is at risk, and the anticipated return on such an investment is based on many performance assumptions. Although Income Properties International intends to make regular distributions of its available cash to Unitholders, such distributions may be reduced or suspended. The actual amount distributed will depend on numerous factors, including Income Properties International financial performance, debt covenants and obligations, interest rates, the occupancy rates of Income Properties International RE properties, working capital requirements and future capital requirements. In addition, the market value of the RE Units may decline if Income Properties International is unable to meet its cash distribution targets in the future, and that decline may be material. It is important for an investor to consider the particular risk factors that may affect the industry in which it is investing and therefore the stability of the distributions that it receives. There can be no assurance that income tax laws and the treatment of fund trusts will not be changed in a manner which adversely affects Income Properties International. Investing in RE Units can involve significant risks and the value of an investment may go down as well as up. There is no guarantee of performance. An investment in RE is not intended as a complete investment program and should only be made after consultation with independent investment and tax advisors. Only investors who do not require immediate liquidity of their investment should consider a potential purchase of Units. The risks involved in this type of investment may be greater than those normally associated with other types of investments. Please refer to the RE Offering Memorandum for a further discussion of the risks of investing in RE. The RE Units are not “deposits” within the meaning of the Canadian Deposit Insurance Corporation Act (Canada) and are not insured under the provisions of that act or any other legislation.
  • 3. Income Properties International 860 W. 59th Ave. Vancouver, BC. V6P 1X7 www.incomepropint.com Contact: Carl Mazur (604) 839-7729 cmazur@incomepropint.com Additional Information *Income Properties International: LLLP, LLC, Land Trust. Property Manager: Precision Real Estate Group. *currently filing for registration.
  • 4. Executive Summary Today’s active urban families want to live in communities that not only meet their housing needs but also offer the convenience of local entertainment, activities and a place to simply unwind with their family and friends. Multi-family properties in growing urban areas represent excellent investment opportunities when they are purchased at discount prices. Our business strategy is focused on identifying multi-family properties that are in need of attention due to previous mismanagement and / or neglect. We purchase these properties at below market prices and redevelop the communities to their full potential. The redevelopment of properties to their full potential is achieved through both renovations of the buildings as well as creating vibrant communities to live in. Vibrant communities are nurtured by assisting to organize the community around social / sporting activities and the celebration of local and national holidays. Our proven model of converting mismanaged multifamily residences into desirable communities is a business model which transforms non- performing assets into profitable ventures. We are proud to provide stable and inflation hedged investments for our investors while improving the standard of living of stable urban communities.
  • 5. Table of Contents 1) Introduction: Investing Challenges & Solutions 2) Investing in Real Estate: the Benefits 3) Who we are: Income Properties International 4) Overview: Income Properties International 5) Summary Income and stability from investing in Apartments
  • 6. Challenges: Volatile Markets & Low Interest Rates Riskier asset classes volatile / GIC rates barely cover inflation
  • 7. Needs: Investment Income & Portfolio Stability Capital preservation: the top priority for conservative investors Retired income-oriented investors desire:  Reliable monthly distributions  Tax-advantaged income1  Capital preservation Conservative investors (pre-retirees) desire:  Moderate growth  Capital preservation  Tax-advantaged income1 Tax Consideration Lifestyles are based on after-tax income
  • 8. Solution: Consider investing in Real Estate. Investing in Apartments for reliable Income & Stability Income generating multi-family properties are one of the safest sectors within the real estate market. Staying private corporate in the popular Income Trust Category Safest sectorsOne of the 2 in Real Estate and IncomeTrusts Often generates more stable revenue; lower volatility3 Primary Income Solution1 2 3 Apartment Real Estate investing Private Real Estate advantages
  • 9. Primary Advantages Monthly distributions / moderate growth / capital preservation Solution: Investing in Apartments for Income & Stability One of the safest sectors within the real estate market – income producing multi-family holdings. Key Features  Monthly distributions  Tax-advantaged income1  Capital growth potential  Private apartment Real Estate  Low correlation to other income sectors and asset classes 4 Key Benefits:  Regular reliable income to meet investors’ financial needs  More after tax income (vs. other income sources)1 to afford a better lifestyle  Moderate capital growth potential to help offset inflationary concerns  Stable, rational pricing. Lower volatility 3  Real estate can diversify a portfolio and reduce portfolio volatility 4 Diversification Multi-family properties can increase diversification and provide income from your portfolio
  • 10. Benefits of Investing in Multi-family Properties Apartment Real Estate Advantages Income: The tenant base provides stable and predictable income Investment growth: Real assets appreciate over time Lower volatility: Impacted by fewer short-term market forces when compared to other asset classes Capital preservation: A fundamental staple with downside protection (Varies by asset class) Hedge against Inflation: Investors are consistently protected against the destruction of wealth caused by inflation. 1 2 3 4 5
  • 11. Quick Overview Real Estate Sub Sectors  Single Family Homes  Condominiums  Retail  Services  Apartments  Commercial  Industrial Real Estate sub sectors do not perform the same Above sub sectors will react differently to various market forces (i.e., economic boom/bust, financial crisis, interest rates, currency, unemployment rates)
  • 12. Comparing Asset Class Performance Real Estate Investment Real Estate Investment RE offers income-producing, diversified investment. It is one of the most popular options to add to any investor’s portfolio. Consider Apartments: The most conservative investors invest only in apartments. Proven over time to be the least volatile2 mainly because they do not suffer from anchor tenant risk, namely that no individual tenant leaving an apartment building can materially affect rents in the same way that a big box chain could in, say, a shopping centre commercial RE investment.  Non Listed Property Ownership**: +3.7% Non Listed Apartment Property**: +6.4% ** Source IPD (2008 Edition); Note: Non listed property ownership is similar to a Private REIT
  • 13. Publicly-traded REITs tend to exhibit Stock Market volatility & may be correlated Growth of $10,000 invested: past 25-year period as at March 31, 2013 (annual update) 1987 1997 1998 2000/02 2008/09 Calendar Returns 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 S&P/TSX Composite Index TR (%) S&P/TSX Capped REITs Index TR (%)* 11.1 21.4 -14.8 12.0 -1.4 32.5 -0.2 14.5 28.3 15.0 -1.6 31.7 7.4 -12.6 -12.4 26.7 14.5 24.1 17.3 9.8 -33.0 35.1 17.6 -8.7 7.2 3.4 – – – – – – – – – – -8.5 14.8 21.4 29.9 7.4 25.9 14.0 25.3 24.7 -5.7 -38.3 55.3 22.6 21.7 17 1.7 Black Monday Crash Asian Financial Crisis Russian &LTCM bailout InternetBubble Bursts &9/11 Global Financial Crisis $10,000invested 31-1997)(Dec S&P/TSXCappedREITsIndexTR 6 S&P/TSXCompositeIndexTR For Directional Purposes Only (the starting points of the two indices cannot be the same for the period shown*) $10,000invested 31-1985)Dec( $71,400 $20,000 $60,000 $40,000 $80,000
  • 14. 6 Inception date for the S&P/TSX Capped REITs Index was Oct.15, 2002, however, the back calculation pricing is available starting Dec.31,1997. Source: Morningstar Research Inc. as at Mar. 31, 2013. This chart is included to show the volatility of stock market indices in general, the historic correlations between the S&P/TSX Capped REIT index TR and the S&P/TSX Composite Index TR and the performance of these indices during major market corrections during this time frame. Apartment returns are not guaranteed, their values can change frequently and past performance is no guarantee of future results.
  • 15. Private Apartment Property Index exhibits steady growth Source: REALPac/IPD Canada Annual Property Index as at Dec. 31, 2012. This index is referenced as it is the longest direct property data series that Income Properties International has found that is commonly used by institutional real estate investors. Income Properties International believes that it the best available series to demonstrate the long term cash flow, capital growth and volatility characteristics of apartments as an asset class. It is an unlevered index. PAST PERFORMANCE MAY NOT BE REPEATED. Real Estate investments are not guaranteed, their values can change frequently and past performance is no guarantee of future results. Above ICREAM / IPD Index only available with annual data points versus indices on previous slide shown with quarterly data. It is an unleveraged index.
  • 16. Real Estate is an ideal choice for many investors Investor Needs  Stable & consistent income  Help offset inflation with moderate growth  Capital preservation Private Apartment Real Estate Benefits  Proven history of regular tax advantaged income1 distributions  Potential for capital growth in addition to regular income  Low volatility 3 and low correlation to other asset classes4 Investor Suitability - Long-term investors focusing on regular income and have a moderate risk tolerance - There are certain risks inherent in an investment in Real Estate, including risks related to liquidity/ Timing of redemptions and general real estate property ownership - Please read the Offering Memorandum / Prospectus from Income Properties International.
  • 17. Acquisition and hybrid “Disposition / Partial- Hold” option. Income Properties International acquires undervalued apartment buildings with a minimum of 20 units. In some cases, these buildings are rehabilitated and 50% of the units may be sold within 10 quarters (5% per quarter) thereby retaining the remaining 50% of the units for ongoing rental income. 50% of the units sold within the first 10 quarters provide profits which are utilized to reduce the loan burden for each property and to provide distributions for investors. Selling 50% of the units in each property also creates a sustainable and balanced mix of owner occupiers and renters in each property.
  • 18. Focused, Experienced, Disciplined Focused  Dedicated to investing and managing multi-unit residential properties Primarily apartments Experienced  Investing in Multi-family real estate since 1992.  Depth of real estate investment and management experience Disciplined  Proven,process-driven investment methodology to manage risk and uncover opportunities to maximize steady income from properties Executive Ownership Clients: Private placement investors The Management Team
  • 19. Three fundamental strategies working together Focus on Apartments Apartments have proven to be the least risky asset class of real estate investment2 (apartments are a basic needs industry and tend not to be as impacted by anchor tenant risk as other real estate investments). Focus on undervalued US properties Solid economy, stable and fiscally responsible government, strong innovative sectors = growing environment to invest in. Benefit of Private Real Estate Stable, rational pricing with lower volatility3 and lower correlation4 to the major equity markets 1 2 3
  • 20. We Aren’t Trendy . . . . . . we offer stable income and have growth potential  Unrecognized value  Untapped income potential We concentrate on communities with strong low vacancy levels and strong population demographics. These hidden gems are appealing when we do the financial analysis What we look for: ForForfor:
  • 21. Monthly Distributions Growth Potential Tax Efficient1 Min.$50,000 Summary: Income Properties International People  Carl Mazur,, President Karen Abinet, VP, Operations  Experienced & dedicated Process  Managed to deliver:value-oriented 2-step strategyProven, Regular income, Low volatility, Moderate capital growth and Capital preservation. Performance  Focused on providing regular income distributions to investors. Portfolio  Apartment Real Estate can help diversify portfolios overweight in equities With its Low correlation4 To major asset classes and Lower volatility 3 Real Estate EIT for yield  Apartment Focused for stable income  Private for lower volatility
  • 22. 1. “Tax Advantaged” Income means that due to the general ability of real estate owners to deduct capital cost allowances against income, that current taxes can often be reduced and/or deferred whereas with an interest bearing instrument such as a bond or deposit no such offset from capital cost allowances are available. 100% of distributions are treated as return of capital (Box 42 on a T3 Form) for tax purposes. There is no guarantee that this will be the case in the future. 2. Source: REALpac/IPD Canada Property Investors Digest: Long Term Series total unleveraged returns between 1985 and 2010 comparing Retail, Office, Industrial and Residential properties on an unlevered basis. The Residential sector experienced the highest compounded returns, the highest average annual simple returns, had the lowest standard deviation of annual simple returns of all these sectors and was the only sector to never have had a negative year on a total return basis. PAST PERFORMANCE MAY NOT BE REPEATED. 3. “Rational pricing with lower volatility” means that property values are based on a methodical process involving a number of highly skilled professionals that must opine on and thus impact upon value including a) knowledgeable and professional buyers and sellers b) third party appraisers and c) financial institutions (that will be restricted in loan to value ratios and debt service ratios and other financial covenants). Valuation methods would follow standard valuation guidelines used in the industry and third party appraisers would be accredited professionals. Further, buyers and sellers are not casual participants in the marketplace and are risking substantial capital in a transaction given that the average equity required for a purchase would be substantially larger than that required to buy a few shares of stock in a publicly listed company. Whereas regular stock market investors need to have no specific skills, industry knowledge, infrastructure, substantial capital, substantial capital at risk in a single investment and relationships that would otherwise serve to exclude them from the marketplace, direct property investors must have these at a minimum. The participation of knowledgeable buyers, and the limitations imposed by lenders for debt service and leverage further act to constrain valuation parameters which constraints may not apply on a traded stock. This rational pricing means that in the absence of changes in property net operating income (which ceteris paribus tend to move with inflation) or capitalization rates, that valuations tend to move slowly over time in comparison to how stocks can move constantly and with great volatility over the course of the day (or any other investment horizon). As such, rational pricing would tend to be associated with lower volatility. 4. Source: Canadian Investment Review, Spring 2001. “Canadian Real Estate and Inflation” by Victor W.K. Li
  • 23. Disclaimer Statement IMPORTANT INFORMATION: This communication is for information purposes only and is not, and under no circumstances is to be construed as, an invitation to make an investment in Income Properties International. Investing with Income Properties International involves significant risks. A return on an investment in Income Properties International is not comparable to the return on an investment in a fixed-income security. The recovery of an initial investment is at risk, and the anticipated return on such an investment is based on many performance assumptions. Although Income Properties International intends to make regular distributions of its available cash to investors, such distributions may be reduced or suspended. The actual amount distributed will depend on numerous factors, including Income Properties International’s financial performance, debt covenants and obligations, interest rates, the occupancy rates of Income Properties International properties, working capital requirements and future capital requirements. In addition, the market value of the Real Estate may decline if Income Properties International is unable to meet its cash distribution targets in the future, and that decline may be material. It is important for an investor to consider the particular risk factors that may affect the industry in which it is investing and therefore the stability of the distributions that it receives. There can be no assurance that income tax laws and the treatment of fund trusts will not be changed in a manner which adversely affects Income Properties International. Investing in Income Properties International can involve significant risks and the value of an investment may go down as well as up. There is no guarantee of performance. An investment in Real Estate with Income Properties International is not intended as a complete investment program and should only be made after consultation with independent investment and tax advisors. Only investors who do not require immediate liquidity of their investment should consider a potential purchase Real Estate properties through Income Properties International. The risks involved in this type of investment may be greater than those normally associated with other types of investments. Please refer to the Offering Memorandum for a further discussion of the risks of investing in investing with Income Properties International. Investments in Income Properties International properties are not “deposits” within the meaning of the Canadian Deposit Insurance Corporation Act (Canada) and are not insured under the provisions of that act or any other legislation. Morningstar Research Inc. is an independent research firm. Except to the extent otherwise specifically required by law, neither Morningstar nor its affiliates nor their third party content providers shall be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. Past performance is no guarantee of future results.
  • 24. Income Properties International 860 W. 59th Ave. Vancouver, BC. V6P 1X7 www.incomepropint.com Contact: Carl Mazur (604) 839-7729 cmazur@incomepropint.com
  • 25. Income Properties International Thank you! Investing in Apartments for Income & Stability Notavailableforreproduction