The OKC Real Estate Investment News June 1st 2006

The purpose of this newsletter is to keep you updated on Oklahoma City as it relates to the economy, special projects, and the continued success of single family homes.

Economic News

Forbes Magazine just came out with its review of 100 major cities. Oklahoma City was considered the 13^th best city for business, the 4^th least expensive city for the cost of doing business, and the No. 1 city for income growth. We take great pride in the rising affluence of our area, and we will share with you our new 2006 Economic and Demographic report in the next few weeks.

The Founders Tower

Work is under way for the renovation of the 20 story tower. The developer has given us an overall time line for the completion of this project. We should have the Tower completed in February of 2007, and the Garden Villas in October of 2007. Changes in the overall layout are first, a second exercise facility on the concierge level, and an outdoor Bar by the Garden Villa pool. The Garden Villas have been revised to five floors with the second floor being the beginning of the residences. The terrace will now connect with the 2^nd floor concierge level of the Tower thereby tying the two buildings together. Even more exciting is that new specialty condos and lofts in Oklahoma City have been selling briskly at around $300 per square foot. We feel our project has more to offer, and check your purchase price per square foot, and realize how good of a buy you made if already purchased. We will be holding Garden Villa prices through the end of June and then all sales to investors will stop. If you are interested in the Garden Villas at the around $200 per square foot cost to you, we will be happy to send you the revised plans.

The East Village in Norman

After being delayed on the permitting by the city of Norman, this project is in full swing. Already, Sooner Traditions has commitments for all 27 retail locations on the first floor of the front three buildings. The new completion time for Phase One is expected to be in November, and Phase Two should be April of 2007, and Phase Three should by July of 2007. In the next newsletter we will have pictures of construction for you. Norman continues to be the fastest appreciating city in the greater Oklahoma City area. We will be coming to the advanced seminar in Los Angeles on June 17^th. Expect a special on the three bedroom, three bath, and two car garage town homes. If you are not coming to that seminar, please call us and we will put you on the list to call for those of you who would be interested in these outstanding properties that are the closest new properties to the main University of Oklahoma campus.

The Commons at Quail Creek

Again, the dramatic increases in residential and commercial permits have slowed our progress on getting this Sooner tradition property finished. Originally we hoping for an end of June completion, but now we are looking at the first of August. We still have good timing on getting these rented because our target market is the Class A Apartment dweller. These are the people renting two beds, two bath units with no garage for typically $1000 per month. We are giving them a 3/2/2 larger property, with better energy efficiency, space, and a garage for $1100 per month. Welcome Home Property Management is not only doing their normal pre-lease advertising, they are adding a monthly postcard mailing to all Class A Apartment units in a five mile radius. These apartments of 97% occupied on the average. Now for the bad news, the prices have gone up. The units we sold last year at $136,900 are now selling for $142,900. However, we have another special for the June 17^th seminar, and to get it you don’t even have to be there. For the month of June, these units will be at $139,900, and the developer will be giving a $2000 closing cost allowance. There are only THIRTEEN units left at this price. This is an outstanding opportunity to get tremendous cash flow for you money, and remember that our property taxes are only 1.1% and that includes all school taxes!

Single Family Homes

What a great year this has been for the sale of single family homes. First, Oklahoma City is tracking almost identical home sales as the record year of 2005. Second, the average time on market for leasing has dropped almost two weeks! We will have breakdowns for the next newsletter. Even though we are adding more single family homes to the numbers we sold from last year, the absorption rate, and the re-leasing of homes to the same renter has been terrific. One of the reasons is advertising and free publicity. For those of you in the advertising field you know that the two most important components are frequency and consistency. Plus Welcome Home has added the $10,000 postcard mailing campaign, and we are the exclusive rental company for all Oklahoma City Chamber of Commerce newcomer packets which go to all relocating individuals, corporations, and anyone who sends a request for information about our city. We are almost sold out of new opportunities, but we have some excellent properties still ready for you, and in September we will be introducing some exciting new subdivisions for 2007 sales.