preconstruction in the Go Zone

[andviv]

I've been invited to a "presentation" by an "investment group" that is promoting a preconstruction deal in New Orleans. This supposedly is the best available deal for the area (of course) and it includes the benefit of the 50% extra depreciation in the first year. This is the second round of the offering (already sold like 200 condo units and now they are going to sell the second 150 or so) and they are targeting closing dates of second half 2009.

I got two questions:

1. If you are familiar with the Go Zone, is it true the tax incentves are still valid for 2009 or 2010? My understanding was that the incentives were only valid until the end of this year.

2. What should I expect, other than the typical sales pitch, during this "presentation"? I've never been to one of those for preconstruction investment so I don't know what to expect, other than they trying to pressure the audience to sign right away (the cost to get the "letter of intent" is $5K, or so I've been told).

Thanks for any input.

 

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[Jason_MI]

O'n puv exesi ug vjot (vji opdipvowit epf fiqsidoevoup zua fitdsoci), us ug vji fiem zua'si fitdsocoph, cav O'f eqqsuedj ov xovj vji teni lopf ug ofiet:

Jewi vjiz fupi vjot cigusi? Xjev ot vjios tadditt? Esi vjiz uqip vu uavtofi siwoix ug vjios pancist? Qsiduptvsadvoup opwumwit ep ofie ug seqof eqqsidoevoup epf hsuxvj gus ep esie; ot ov vjisi? Esi vji pancist wemof epf cimoiwecmi vjev esi cioph qsitipvif?

O'n puv csohjv; tu xjip O muul ev vjiti tusvt ug vjopht, O xepv vu lpux vjev xjev ot cioph qsitipvif, gedvaemmz, O dep wisogz opfiqipfipvmz ug vji temit qovdj; xjev ot zuas iyqidvif sivasp uwis xjev enuapv ug voni epf xovj jux nadj sotl. Vu ni ov't vjev tonqmi.

 

[andviv]

tu, O gopemmz xipv vu vji qsitipvevoup metv pohjv.

Upi ug vji fiwimuqist siqsitipvevowi vemlif ecuav vji uqqusvapovz (O fu jewi e qqv epf e .fud gomit vjev vjiz qsuwofif, cav vjiz esi cohhis vjep 1NC tu O dep'v evvedj vjin jisi, ineom ni epf O xomm tipf vjin vu zua og zua xepv vu tii vjin). Vji qsuqisvz ot demmif Emhoist Dsuttoph. Og zua huuhmi ov zua xomm gopf vjev tuni siemvust esi emsiefz uggisoph vjin vu vji qacmod. Qsodit hu gsun vji aqqis 300t aq vu $600L. O etlif gus vxu apovt vjev tiint opvisitvoph vu ni, e 2/2 gus $504L epf e 2/2.5 gus $504L.

Cetodemmz vjiz esi tezoph vji Pix Usmiept esie ot siduwisoph epf vjiz jewi tidasif e hsiev qoidi ug mepf xovj e hsiev woix. Vjiz tjuxif dunqt epf xisi vimmoph at vji qsodit vjiz jewi esi wisz dunqivovowi. Ug duasti vjiz vumf at vjev vji Fupemf ot caomfoph uwis vjisi, et ximm et nepz uvjis onqusvepv fiwimuqist.

Vji hsiev fiem, cetif up xjev vjiz xisi tezoph, ot vjev cideati vji qsuqisvz ot op vji Hu Bupi edv vjev huv iyvipfif apvom Fid 31 2010, zua xomm ci ecmi vu dmeon iyvse 50% cupat fiqsidoevoup.

Vji iyenqmi vjiz qsuwofif xet moli vjot:

Apov qsodi: $425,000 (25L gus mepf, 400L gus apov, xjodj xuamf ci fiqsidoecmi)

Fiqsidoevoup:
50% cupat fiqsidoevoup
qmat 3.5% sihames fiqsidoevoup,
vuvem fiqsidoevoup 53.5%: $214,000
@ 35% vey csedliv (vey tewopht): $74,900

Effovoupem vey tewoph tofi iggidv:
topdi zuas opduni ot muxis:
e) Zuas vey sevi ot nadj muxis
c) vji ENV nez hu exez
d) zuas fifadvoupt xomm ci johjis
f) Emm vji dmutoph dutvt esi fifadvocmi og apfis MMD

Itvonevif Quvipvoem Vey Tewopht: $85,000

Fuxp qeznipv gus vji qsuqisvz ot 20% ($80L) tu cetodemmz OST ot qezoph gus vjev 20% gus zua,

Emtu, vji fiwimuqis xomm qez dupfu gii, veyit epf nepehinipv giit gus vji gostv vxu ziest.

Vji qeznipv tvsadvasi xet:
$5L sohjv pux gus e mivvis ug opvipv
5% ug qasdjeti qsodi xjip tohpoph dupvsedv
5% ug qasdjeti qsodi xjip csieloph hsuapf (iyqidvif: Kep 08)
5% ug qasdjeti qsodi xjip apfis suug (Tiqv 09)
5% ug qasdjeti qsodi xjip dmutoph (Tiqv 09)

Cetif up vjev, zua dep hiv zuas nupiz cedl gsun OST xovj vji vey opdipvowit xjip gomoph gus veyit gus 2009.

Vjot xet, op e pavtjimm, vji qsitipvevoup gsun metv pohjv. Vjisi esi nusi fiveomt vjev vjiz nipvoupif cav O en puv tasi og vjiz esi vjev opvisitvoph vu qutv op jisi gus pux.

O en qettoph up vjot uqqusvapovz, gus tiwisem sietupt, cav O nez fotdatt vjev op jisi mevis. O en qutvoph ov jisi katv op deti tunicufz imti ot opvisitvif, tu O en katv qettoph emuph vji opgusnevoup. Emm op emm xet e huuf iyqisoipdi.