The quantity of available boat slips continues to plummet world wide while the number of new boaters continues to increase by an average of 18-20% annually. This problem is projected to continue and worsen in staggering proportions throughout the U.S. and Caribbean. This is GOOD NEWS for investors and insightful boat owners!

Industry magazines place the current shortage of boat storage spaces in the United States at over 500,000..... increasing at the rate of more than 100,000 a year. These same magazines estimate a near-term shortage of one million spaces and predict an average rental of $20,000.00 annually. Private marinas and what little waterfront property available for permits is being siezed by large development corporations for condominium and hotel projects - eliminating or greatly reducing the dockage available for recreational boaters. Transient and Long Term Slip rates are skyrocketing, marinas and docks are disappearing. Dockage in southeast Florida and other similar locations is becoming so difficult to acquire that one may even have trouble selling a boat unless a wet slip is part of the deal. Wet Slip waiting lists at hundreds of marinas can easily be found to be several years long. It is not unusual to find a Yacht Club or Marina that can only offer a new slip space through a members passing or move from the area.

Recent Hurricanes have eliminated tens of thousands of slips in the Bahamas and the U.S. Gulf and East coasts. This will, of course be an ongoing threat that can not be overcome. It's affects can have far reaching impact on the recreational marketplace. Stringent Federal, State, Local government and environmental restrictions have almost completely ceased the creation of new marinas and made it almost impossible for even grandfathered marinas to expand or even dredge in many locations. Investors, Insightful Boaters, Developers and Waterfront Property Owners are quickly realizing that demand is outpacing the supply at an alarming rate and they are quickly capturing the remaining opportunities as quickly as they become available. This "land grab" is also accelerating the deficit in available rental space and putting upward pressure on the market. There are over 10,000 dry rack spaces on the Chesapeake Bay that are currently occupied and new marina development is highly restricted and in many cases prohibited

    

Salt Water Coastlines & Great Lakes	Population	Miles of Coastal Shoreline	Registered Boats	% of Boats Registered Nationally	Total Boating Related Sales	% of Total Sales	Average Spending per Reg. Boat
			in 2003
Maine	1,306,000	3478	90,604	0.71%	$96,835,000	0.63%	$1,069
New Hampshire	1,288,000	131	100,835	0.79%	$162,327,000	1.05%	$1,610
Massachusetts	6,433,000	1519	156,121	1.23%	$314,218,000	2.04%	$2,013
Rhode Island	1,076,000	384	43,007	0.34%	$122,676,000	0.80%	$2,852
Connecticut	3,483,000	618	107,907	0.09%	$221,531,000	1.44%	$2,052
New York	19,190,000	1850	528,094	4.15%	$629,973,000	4.09%	$1,193
New Jersey	8,638,000	1792	207,588	1.63%	$416,645,000	2.71%	$2,007
Delaware	817,000	381	49,935	0.39%	$224,864,000	1.46%	$4,503
Pennsylvania	12,365,000	89	355,235	2.79%	$245,311,000	1.59%	$691
Maryland	5,509,000	3190	198,395	1.56%	$382,045,000	2.48%	$1,926
Virginia	7,386,000	3315	241,093	1.90%	$397,039,000	2.58%	$1,647
North Carolina	8,407,000	3375	359,857	2.83%	$518,797,000	3.37%	$1,442
South Carolina	4,147,000	2876	380,314	2.99%	$310,706,000	2.02%	$817
Georgia	8,685,000	2344	326,718	2.57%	$413,191,000	2.68%	$1,265
Florida	17,019,000	8426	939,968	7.39%	$2,113,882,000	13.73%	$2,249
Alabama	4,501,000	607	262,249	2.06%	$274,733,000	1.78%	$1,048
Mississippi	2,881,000	359	201,457	1.58%	$125,841,000	0.82%	$625
Louisiana	4,496,000	7721	307,051	2.41%	$324,800,000	2.11%	$1,058
Texas	22,119,000	3359	619,088	4.87%	$830,338,000	5.39%	$1,341
California	35,484,000	3427	963,379	7.57%	$1,201,149,000	7.80%	$1,247
Oregon	3,506,000	1410	197,591	1.55%	$404,682,000	2.63%	$2,048
Washington	6,131,000	3026	265,773	3.75%	$576,658,000	3.75%	$2,170
Alaska	649,000	33904	51,416	0.40%	$135,913,000	0.88%	$2,643
Minnesota	5,059,000	7326	845,379	6.64%	$583,733,000	3.79%	$690
Wisconsin	5,472,000	11,190	610,800	4.80%	$471,686,000	3.06%	$772
Illinois	12,654,000	2324	360,252	2.83%	$363,896,000	2.36%	$1,010
Indiana	6,196,000	550	216,145	1.70%	$215,951,000	1.40%	$999
Michigan	10,080,000	40001	953,554	7.49%	$526,266,000	3.42%	$552
Ohio	11,436,000	3875	413,048	3.25%	$308,016,000	2.00%	$746
			10,352,853

Why convert working marinas to dockominium resorts....

Dockominiums, Rackominiums, Resort Marinas and Waterfront Properties can be a smart investment alternative for today's informed buyer. High demand and limited availability have historically provided the perfect scenario for a solid investment opportunity. When underdeveloped properties with the right ingredients for conversion to resort marina, dockominium or rackominium can be obtained at a reasonable price.... substantial returns on investment can be realized over a typically short period of time.

Value Proposition for Boaters: In many areas, the value proposition for the prospective slip buyer is very attractive. In some instances, cost of ownership can equate to a monthly mortgage payment that is comparable to a current monthly rental amount and in some instances even less.

In exclusive areas of high demand and extreme slip scarcity such as Ft Lauderdale or Key West, the cost of ownership less likely to equate to a lower monthly payment based on capital outlay alone. The property values have appreciated so rapidly that the rental market is typically 2 to 3 years behind. The value in such areas will have to be derived from a combination of equity, appreciation, tax benefits and rental income (if desired). In any case, there are generally more compelling reasons to own, than to lease real property.

In over 90% of the U.S. and Caribbean market, the rate of appreciation for wet and dry slips; and ability to build equity is abundantly clear. Additionally, the typical dockominium/rackominium mortgage is between 10 and 20 years, with much less capital going towards interest than a conventional 30-year home mortgage. Depending on how an individual uses the property, the interest on the mortgage may also be deductible providing even greater value.

Loss of Inventory: Thousands of slips and racks have been lost in the past several years from the Gulf Coast of Texas, north east to Chesapeake Bay and to the furthest southern boundaries of the Caribbean. Along with the slips and racks that have been lost, so have the services and amenities that surrounded them, never before has the demand been greater for full service dockage.

Security & Public Access: Rebuilding or expanding marina facilities and converting them to private ownership insures that a marina "dockominium" facility will remain a "marina" in perpetuity. It is removed from the prime marketplace of potential future developers. It would be extremely difficult for a future developer to come up with a business model that could afford to buy out each individual boat slip or boat rack owner so that the property could be redeveloped for another purpose. While nothing is impossible, it is highly improbable and is one of the best strategies for protecting marina properties and insuring public access to the water. Typically, 40% to 50% of a dockominium / rackominium marina's slips are owned by investors who lease their slips to the public and receive the rental income and appreciation in a later sale. There is always public access in a privately owned "subdivided" marina.

Restricted Development: With increased and highly restrictive local, state and federal regulations controlling the development or expansion of new marina slips is improbable or impossible in some areas and a very long and expensive process in others. The prospect of marina development in most dense population areas is already predominantly limited to the redevelopment of existing marina basins restricting the supply of docks.

Deed Restricted Communities: In recent years, it has become a common practice for developers, home owners associations and town boards to regulate the use of private lands through deed restrictions. The most typical form of deed restriction is focused on maintaining aesthetically pleasing neighborhoods to keep property values strong. Most of these restrictions are storage or appearance related... they may not allow the storage of RV's and boats on residential property and they may not allow certain colors of exterior paint or may restrict certain types of fences and structures such as storage sheds. With more and more people moving closer to coastlines, deed restricted communities that do not allow the storage of boats, trailers and RV's greatly increases the demand for alternate boat storage facilities.

Coastline Residency Trend: Up until the mid 1960's when the nation was industrialized, waterfront property had a negative connotation... usually dirty, ugly, contaminated industrial property. As the nation became more environmentally responsible and industry was pushed away from our waterways the transformation began. The push to waterfront living has been fueled by the revitalization of waterfront property, our nations' affluence, the love of water dependent recreation and the abilities of more families to participate in ownership of personal vessels. Demographers have long predicted that 80% of the country's population will live within 50 miles of a coastline (including lakes) by the year 2020.

Now you can own your boat slip and benefit from the appreciation in asset value and can even create a solid cash flow.

Dockominiums, Rackominiums, Recreational Waterfront Property and Equity Yacht Club Memberships are the investment alternative for today's informed boat owner and real estate investor. These individually owned wet slips, dry-stack boat storage racks and membership opportunities provide above average return with safety, security and tremendous long-term profit potential.

If you have performed any research at all, we should be in agreement that with each passing year there are more and more boats and there are less and less slips to put them in - which makes those that are available rather valuable. So valuable in fact, that in more instances than not, they are appreciating at rates from 20-25 % per year in most high demand areas.

Statistically, the average boat owner who wishes to own a slip, rather than rent one, is normally a high net worth individual and astute enough to realize the increasing value of this hard-to-find form of waterfront property . Likewise, these same individuals understand fully, the value of using the property itself as an asset to collateralize the loan that may be needed to purchase it, just as they would with any other real estate transaction.

Ownership, however, should not be considered for the value of equity alone, as scarcity too, is putting upward pressure on the rental market and those who do not own their slips, are obliged to pay ever steeper lease rates demanded by marinas (and dock-owners) worldwide.

Wet slips and dry racks are located in world-class, private club marinas. The marina properties are professionally landscaped, artistically lighted with security gates, fences and complete recreational amenity packages. Each marina contains various income centers such as restaurant, lounge, offices, retail space, service centers, etc. that can be owned by the marina association, or might be sold to investors. Each property is as unique as the dock-owners and investors who participate in it.

Investor slips and racks can always be purchased subject to an existing lease and the income can be used to pay the monthly obligations, including the mortgage payments and association fees, until the dockage is free and clear. Ownership includes an undivided interest in the marina.

As with ALL INVESTMENTS....a certain amount of risk is involved and we recommend that you consult your attorney and tax advisor before entering into any financial agreements.

COMMON PARTICIPATION STRUCTURES

Marina developments, resorts, dockominiums, dry storage racks, waterfront resort hotels and fractional ownership condominium projects are developed in prime waterfront areas utilizing a variety of partnership structures. Typically, most of our development projects are owned and funded through private relationships or initiated through Private Placement Memorandums sold by Licensed Investment Advisors or Licensed Brokers. Participation structures normally fall into 5 basic categories. 1. MARINA PARTNERSHIPS In the marina partnership (corporation), a primary partner or investor group provides funding for the development project including all soft and hard deposits, development capital, operating capital and mortgage, bridge or construction loans. The "funding" partner or group receives 100% of the operating profits during the first year of ownership and 50% of the project's total projected profits from the sale of converted or developed units. Funding partners typically exit between 13 and 18 months via a soft sale. 2. JOINT VENTURE AGREEMENTS In a joint venture, a partner contributes capital, credit, services or any combination for the purchase or development of a marina or resort property and receives a designated portion of the property as security for the capital investment. The agreement is a structured real estate transaction. In another type of joint venture, a partner contributes property as their share of the development project and receives a portion of the proceeds relative to the value of the property in the total development. The term of the Joint Venture is usually as short as eighteen months and as long as five years depending on the scope and complexity of the project. It is considered SENIOR to the marina partnership and is only available to accredited investors, developers, builders or marina owners. 3. PRIVATE PLACEMENT MEMORANDUMS A PPM is a private stock offering and may be used to purchase a marina property that will be expanded and run on a rental basis while the property appreciates to an optimum "selling" level. A PPM stock offering is a type of security, not a real estate transaction and is typically only available to accredited investors. The terms of PPM offerings differ as greatly as the reasons for selecting this structure. They are typically a 5 to 10 year investment strategy. Private Placement Memorandum (PPM) A PPM structure distributes the risk and its earnings over a larger playing field and are normally associated with projects that require over $20MM in funding. They have a lower cost of entry and will typically produce more conventional annual returns during the first few years of ownership. The highest returns on investment are normally produced on exit. 4. EQUITY CONVERSION AGREEMENT A buyer participates in the funding and development of the marina by purchasing a portion of the marina's real estate prior to conversion. The marina partnership re-purchases the units from the buyer for a predetermined price as blocks of the marina's converted inventory are sold as part of the Phase One offering. The term of an Equity Conversion Agreement is normally one to three years and the buyer can expect a return of 50% to 100% depending on the project. Equity Conversion Agreement's are SENIOR to PPM's, joint venture agreements and the marina partnership. 5. EQUITY PARTICIPATION AGREEMENTS A buyer makes a fee simple purchase of multiple wet slips, dry rack spaces, condos or commercial condo units at substantially discounted prices and terms. The agreement is a structured real estate transaction with fee simple deeds or leases to the units purchased. The term of an Equity Participation agreement is normally one to three years and the buyer can expect a return of 15% to 30% based on the discounted purchase price from current market and ongoing appreciation. Equity Participation's are SENIOR to Equity Conversion agreements, PPM's, Joint Ventures and the Marina Partnership. 6. RENTAL INCOME AGREEMENTS The buyer makes a fee simple real estate purchase of one or more slips or racks,with or without leverage, and takes the net rental payments as regular monthly income. The purchase in most markets produces a return in excess of 10% annually. Some of the income can also be covered with straight-line depreciation. The Income Agreement is the most secure investment strategy and is senior to any other agreement or participation.