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A Fresh Start for both
People, and Properties, at Freshstart Properties Inc.
by Greg Moses - AllPennyStocks.com News Reporter
February 28, 2007 (AllPennyStocks.com Media Inc.) - Moving
into a new home is an exciting time, and is much like a fresh
start for new homeowners or new renters. Real Estate
properties also benefit, and gain equity and resale value,
from an updating and a fresh look.
One very interesting Company, Freshstart Properties Inc.
(PINK SHEETS: FSPP), has found success, operating a
classic real estate business model, which builds equity and
value for shareholders.
From its base in the Pacific Northwest, FSPP strategically
acquires high potential distressed properties, at prices well
below market. Homes in this category include pre-foreclosure,
foreclosure, and Bank REO (Real Estate Owned) properties.
Then, with a reasonable yet high impact amount of fix-up
investment, the Company is able to quickly re-market the
properties either for sale or rental.
With added value and supported by appraisal, the property
resale or rental has the potential, of achieving a large
profit. This property flipping is designed to create a high
rate of return, over and above the original purchase and
repair/ remodel investment.
The academic principle or investment strategy is classic
Real Estate 101, but its success requires artful execution, at
all the steps along the way. It is known as Real Estate
"flipping" and is taught at the College level, in Real Estate
seminars, and seen on TV infomercials. Like all great business
ideas, the concept is fundamental. Acquire the real estate as
low as possible, and quickly re-sell with modest improvements,
at market prices, or just below market.
What I call "The Professional Advantage" is the key
advantage of Freshstrart Properties, over the average guy on
the street, entering into this revenue producing endeavor. All
four elements in the transaction are critical to success, the
buying, the fix-up, the resale, or holding as rental. All the
action steps are equally key components to the ultimate
success of the business model.
The Company operates in the Seattle and Tacoma, Washington
areas and has developed a network of trusted and skillful
contacts in the real estate market. For the past ten years the
Company's Management has been active in this Real Estate
activity. As a publicly traded entity with access to equity
markets, Freshstart enjoys a competitive advantage over
similar, privately-held entities or individual investors,
operating in the same geographical market.
The Company has earned a reputation for improving
neighborhoods by providing safe and affordable residences.
Freshstart's 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, FSPP targets neglected and abandoned
homes and multiplexes, which have a high probability of
producing better than average capital gains once renovations,
are complete.
Recently, the Company announced that properties in several
new hot real estate areas around the U.S. were being evaluated
for possible acquisition. While the Pacific Northwest will
continue to be the Company's core region, strategic expansion
to other regions makes great business sense and offers
unlimited growth potential for the shareholders.
In the Tacoma market, the Company has been finding lately that
the multi-family market remains very strong as vacancy rates
are dropping and rental demand is putting upward pressure on
rental rates.
The ability of Freshstart to hold properties in a rental
portfolio pool is one of its key strengths. Unlike an
individual investor, Freshstart, with its financial strength,
is uniquely positioned to take advantage of real estate,
whichever way it goes, strongly up or slightly soft. The
Company buys, fixes, and sells when prices are heading upwards
but also is able to buy, fix and hold when the market softens.
Upgraded properties always will command much higher monthly
rental income even in softer home selling markets.
Earlier this year, FSPP detailed a couple of interesting
properties in the Tacoma area. One rental property acquired,
was one for which the Company finished out the construction.
The lot and build out totaled $168k with a recent appraisal of
$238k for a $70k increase in equity. FSPP is now in the
process of advertising the home's availability at the current
market rent of $1,395 per month. Another property purchase in
Tacoma was a large, three bedroom and two bath Victorian home
that is being acquired for $205k with seller financing.
All being said, Freshstart Properties Inc.
(PINK SHEETS: FSPP) is moving smartly to navigate the Real
Estate market to advantage in the Pacific Northwest, and soon
perhaps other key geographic areas nationwide.
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