Investment recap for 2005.We should have a great 2006!

Dear Friends and Fellow Investors,

I would like to take the time and recap 2005 and the direction we`re heading in for 2006.
When I started in this business 10 years ago, there was a small group of realtors and investors who specialized in identifying investment opportunities. We rarely advertised properties, communicated by word of mouth, collected deposits for VIP investors, waited in lines at launches and held seminars. During this period, the Florida market was not considered a good investment, as it was regarded as a retirement and seasonal destination where our northern and midwestern neighbors escaped the frigid winters.

We mainly sold foreclosures, HUD homes, and acreage properties throughout South Florida. To give you an indication of how much the market has changed over the past years, a lot in Southwest Ranches was selling for $85,000 an acre, and, foreclosures required only a $1000 deposit, closing were less than 4 weeks, and the 3% seller contributions were paid by the bank at closing to the buyer.Unheard of in today`s market place!

I recall taking our clients to preview property in a community such as Emerald Springs located in Weston, where 3 bed / 2 bath / 2 car garage single family homes were selling at pre-construction pricing starting at $125,000. Clients complained about those prices as they felt that there was no real value in purchasing a pre-construction unit higher than what a resale home was selling for. Presently, those homes are selling for over $420,000.

The point of comparing yesterday's and today's prices is simple. During the past months, many of you have realized that housing prices have declined throughout Florida from their peak in July and August of this year. Interest rates have gone up 1.25 basic points since the low 13 months ago, upon the decision of the Federal Reserve Chairman.

The "bubble effect" has been lingering for almost 1 year. If you study reports as I do, please take notice. The state of Florida continues to have a shortage of man power, employment is at record highs, and housing prices which are considered to be high, are comparative with the rest of the country. Relocators continue to flock to the state and foreign investors are aggressively buying in the region. The Euro is higher than the dollar, with the Yen not far behind. China continues to purchase our dollar on the open market, gold continues to rise, and the price of oil has recently settled, yet remains high. Given these factors, investing in Florida continues to be a profitable opportunity for those who understand the market trends.

During the past 3 years, our group has been purchasing properties in Central Florida, the Southwestern region of the state, and the treasure coast north of Palm Beach. The panhandle has presented itself as an exciting new territory. This year, our clients experienced unprecedented profits, which outpaced the S&P 500.

In 2006, I believe that we'll continue to view the same pattern, but expanded to a broader assortment of regional areas. As many of you are aware, The Scott Daniels Real Estate Group is known for our conservative approach in investment strategies. We consistently weigh the risk reward and research each perspective investment community prior to alerting our clients. I strongly feel that this formula sets us apart from our competitors. My philosophy remains steadfast: as our clients, our company is making long term commitmentss, without the short term expectations. We attempt to locate properties that require minimal deposits up front, with completion dates of up to 18-24 months. Our track record over the past few years has translated to double digit earnings for our clients.

In the coming year, we anticipate futher expansion into regional areas, reminiscent of the opportunistic times in South Florida. Enclosed are a list of projects that we're presently researching:

1-Panama City, Florida,over 41 miles of Beaches, new Condo`s overlooking the Gulf of Mexico starting in the low $300`s. No restrictions only 10% required, units come fully furnished.The Panhandle must be placed on your radar.Plans for a new Intl Airport are in the works, completion date is 2009. In our opinion this area is a throwback to the days of Fort Lauderdale circa 1960-1979! This area will have tremendous value for investors. Currently, people from Atlanta, Alabama, Dallas and New Orleans make this their vacationdestination. In the next few years that will all change!

2-Myrtle Beach, South Carolina, land and preconstruction community on a golf course. Near Beaches, requires only 5% deposit. Again, we`re looking at a 3 year investment.Land is undervalued.

3- Las Vegas, Nevada,Condo Conversions in the heart of the Vegas strip. Looks like a Coconut Grove type of area! New cafes, malls and restaurantsopening in this area. Very Chic!

4- Phoenix Arizona, Condo Conversions and preconstruction the next Florida! This area has tremendous long term growth potential with a huge demand for jobs! Many business are leaving California for Arizona due to less tax restrictions for businesses! Land is very inexpensive at the moment ,but will change in the next 2-4 years!

5- Arkansas, resort locations near Little Rock. Near lake 1/4 acre lots starting @ $12,000. Buildable lots for under $20,000 must be looked at because this region is realizing huge growth as demand for affordable housing as well as jobs continue to leave the Northeastern States.Baby boomers are starting to see the potential in purchasing a second home in this area. Low Tax base, similar to Florida.

I would like to take this opportunity to thank all of our subscribers who have responded to our updates. I hope that 2005 was a profitable year for you, as we anticipate further successes in 2006. As some of you are aware, due to necessary expansion, we have opened a new office which is located in Cooper City, FL. Our full service real estate agency now has the opportunity to make a presence throughout the state. Our second office, located in Fort Myers, Fl, will be opened shortly.

Given our present growth, we are in the process of hiring realtors to join our organization. If you're a realtor subscriber and are interested in seeking employment information regarding our company, please contact Scott Daniels for a confidential interview.
Happy Holidays.
Scott Daniels
9900 Stirling Rd. Ste 104
Cooper City, Fla. 33024
954-680-4404
954-874-3600
1-866-274-2274
954-874-3601 (Fax)