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American Company Spotlight

 

Freshstart Properties, Inc. Website: Click Here

Exchange: Pink Sheets
 

Market Cap: 4.1 Million

Outstanding Shares: 40.1 Million

52 Low / High: $0.08 / $0.39

Price January 31, 2007: $0.10

FSPP Recent Stock Quote and News: Click Here

Information As Of January 31, 2007

The process of buying a real estate property and, after making modest improvements, selling it at an appreciable profit is called house flipping. Shows, such as "Flip This House" have made this form of investment a hugely popular and a very profitable one.


Overview

Freshstart Properties, Inc. is a publicly traded real estate company focused on purchasing pre-foreclosure, foreclosure, financially distressed and bank-owed residential properties at a discount to market. The company is uniquely positioned to take advantage of the real estate, whichever way it goes as the company buys, fixes and sells when prices are heading upwards and also buy, fix and hold when the market softens because the company is able to command much higher rental income. Their efforts are currently focused in and around the Pacific Northwest USA.


Investment Highlights

  • Seattle real-estate economist Matthew Gardner expects closer-in areas to appreciate about 10 percent over the coming year; farther out, 7 percent appreciation will be more the norm for single-family homes and for condominiums. (Source: Seattle Times. Dec. 30, 2006)
     
  • "In the past six months, the company acquired three homes in the booming Pacific NorthWest, these homes are currently leased in anticipation of long terms gains."
     
  • According to the December 30, 2006 Seattle Times article, between 2005 and 2006, real estate prices in the Seattle area jumped 18%, and real Estate experts are predicting that the Pacific Northwest’s real estate prices will increase again in 2007 while national real estate prices are pegged for a slowdown.
  • The same article predicts that in the 2007, rental market "Vacancies will fall from their current 4.7 percent to roughly 3.5 percent.”
     
  • Experienced management led by Nazir Maherali with over twenty-five year Real Estate experience spanning three continents. (Africa, United Kingdom, and North America).
  • A combination of an expanding foreclosure market forcing homeowners back into the rental market and a growing trend to convert apartments to condos (5,000 in the Puget Sound region in 2006) is pushing rental rates up. Daniel Hall of Gibraltar Investment Property Solutions predicts a 15% increase in rent over the next two years in the Pierce county area.
     
 
 

 

Profile

For the past ten years, Freshstart's management has been buying, renovating, leasing, and selling properties in the Northwest. In that time, the company has developed a network of contacts in the Seattle-Tacoma real estate market and earned a reputation for improving neighborhoods by providing safe and affordable residences. As a publicly traded entity with access to equity markets, Freshstart enjoys a competitive advantage over similar, privately-held entities operating in the same geographical market.
 

The process of buying a real estate property and, quickly soon after, selling it (after making modest improvements) at an appreciable profit is called house flipping. Shows such as "Flip This House" have made this form of investment a huge housing phenomenon and a very profitable one. Mr Maherali has employed this concept for over ten years and has resulting in strong gains both during and after the housing boom.
 

The foreclosure market in Tacoma is experiencing an increase, which provides the company an opportunity to aquire additional property for its rental portfolio. As apartments are being converted into condos the vacancy rates are decrease, thereby putting upward pressure on the rents, which increase the value of rental property.
 

Freshstart Properties is a company designed for investors who don't want to invest hundreds of thousands of dollars, and countless hours of renovating, to be part of this popular investment concept. The company's management, which is headed by Nazir Maherali spans twenty-five years and three continents. (Africa, United Kingdom, and North America). His current focus as well as the company's is the Pacific Northwest.


Strategy

 

Freshstart Properties' primary focus is on the acquisition and preservation of older residential neighborhoods in transition where market demand is on the rise and crime rates are falling. Specifically, Freshstart Properties targets neglected and abandoned homes and multiplexes with a high probability of producing better than average capital gains once renovations are complete.

Factors that Freshstart Properties considers when selecting a property include:

  • Cost of acquisition
  • Recent sales of comparable properties
  • Neighborhood demographics
  • Renovation expense
  • Resale or leasing potential
     
 

Strong Northwest Housing Market
 

* (Source: Seattle Times, Looking ahead: The sky isn't falling for the Puget Sound market, By: Elizabeth Rhodes. Dec. 30, 06.)

April 2006 statistics for King and Snohomish Counties reflect a real estate market that is in full bloom. The gloom and doom forecasts of last fall have been replaced with predictions of the 3rd strongest real estate market in history.

April 2006 sales prices in King County are up 18% or $39,424 over April 2005. Even though the number of sales are down from April a year ago by 15%. The average market time remains steady.

April 2006 statistics for Snohomish County show the same blossoming appreciation with sales prices up 17% or $50,037. Market times here are relatively unchanged, also, even though the number of homes that sold in April is down by 111.

Seattle real-estate economist Matthew Gardner expects closer-in areas to appreciate about 10 percent over the coming year; farther out, 7 percent appreciation will be more the norm for single-family homes and for condominiums.*

Bill Riss, CEO of Coldwell Banker Bain "thinks 2007 will probably be a copycat of 2006 in terms of inventory and the number of sales "unless there's something in the condo market that causes oversupply."*

Mike Scott, of Seattle's Dupre + Scott Apartment Advisors apartment investors, bullish on the Seattle area's economy, are busy buying up buildings. On average they're paying 15 percent more for them this year than in 2005.*

Many owners are planning to renovate their new purchases, Scott reported, and renters should "expect significant rent increases as a result." Taken together, these factors will cause apartment rents to jump about 8 percent next year, Scott predicted. Vacancies will fall from their current 4.7 percent to roughly 3.5 percent, he said.*

The national news has been full of stories about homebuilders cutting production and prices as the real-estate market cools. In November, for example, building permits nationwide fell to a nine-year low, according to a government report. "But that's the national news, not the local news," said Suzanne Britsch, senior analyst for New Home Trends, a construction-analysis and consulting firm in Mill Creek. "We still have job growth and a shortage of lots here, so we have just not had a problem with standing inventory."*
 


Recent News and Press Releases

Freshstart Properties, Inc. Announces Completion of Its Development Project (Jan 18, 2007)

Freshstart Properties, Inc. Seeks New Markets for Continued Growth (Jan 16, 2007)

Freshstart Properties Inc. Announces Acquisition of Investment Property (Oct 10, 2006)

Freshstart Properties Inc. Announces Acquisition of Multifamily Building (Sep 19, 2006)

Freshstart Properties Inc. Announces Purchase of Investment Property (Aug 23, 2006)

Freshstart Properties to Appear on MN1.com (Aug 9, 2006)

Freshstart Properties Inc. Retains AGORACOM Investor Relations (Aug 2, 2006)

 

 
 
 

Management

Nazir Maherali, President, Secretary, Treasurer Mr. Maherali's real estate and property development experience spans twenty-five years and three continents.(Africa, United Kingdom, and North America). His current focus, and Freshstart's is the Pacific Northwest where he currently is busy.

Acquiring and renovating under-valued properties for lease and resale.

Purchasing undeveloped real estate for the purpose of residential development and sale.
 

Dilshald Maherali, Director

Professionally, Ms Maherali has worked in the hospitality industry for twenty-five years, actively investing in properties in Uganda, the United Kingdom, and Canada.
 


Contacts

1702 - 6th Ave
Tacoma WA 98405

Tel: 253-383-7194
Fax: 253-572-2395

info@freshstartpropertiesinc.com

ceo@freshstartpropertiesinc.com
 


 

 

 

 

 

FORWARD LOOKING STATEMENTS

This report includes forward-looking statements that reflect Freshstart Properties, Inc. current expectations about its future results, performance, prospects and opportunities. Freshstart Properties, Inc. has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "we are confident" or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause Freshstart Properties, Inc.'s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company's growth expectations and ongoing funding requirements, and specifically, the Company's growth prospects with scalable customers, and those outlined above. Other risks include the Company's limited operating history, the Company's history of operating losses, consumers' acceptance, the Company's use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company's securities, the possible volatility of the Company's stock price, the concentration of ownership, and the potential fluctuation in the Company's operating results.


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