Dear Friends, Family and Colleagues,

      In November 14, 2006 I had the pleasure of meeting the executives at DBSI and Spectrus/FOR 1031 at their corporate headquarters in Boise, Idaho.  This trip was taken as part of my due diligence for us all.  The following is what I learned:

• The program is now returning 6.5% cash on cash return on equity instead of 6%.

• In the 27 years DBSI has been in business, five properties have had problems and DBSI needed to put in their own money. DBSI turned the properties around and they became successful upon sale. This happened before Spectrus/FOR 1031 opened for business.

• Because there is a mark up of 13-15%, it takes approximately two years of appreciation to recover that mark up. In that time, we will be receiving predictable, consistent tax sheltered cash flow without any headaches of working or worrying about tenants or liability. This is because of DBSI…in the NNN lease they have a contract to pay us rent "no matter what".

• Sometimes DBSI renovates the properties, i.e. lobby from ceramic tile to granite or maybe a full face-lift on a retail center. This helps to keep tenants and adds value. New landscape is another way that DBSI adds value.

Using my 401K plan dollars I have purchased raw land from Spectrus in Frisco, TX (That is North Dallas). I purchased for $5.75 sq. ft and before we closed escrow it had comped at $7.50 a sq. ft. I do not pay for the property tax, insurance and maintenance as it is built into the sales price. The plan is to sell it in 3-5 years when the value has doubled. My goal is to continue rolling my appreciated dollars back into land until I retire, at which time I will do a 1031 exchange into a NNN Lease Plus commercial property thus creating tax sheltered cash flow to help me enjoy retirement.

Spectrus also sells whole properties, Land with options, and Joint Venture development programs with very attractive projected yields and exit strategies.

As a real estate licensee and a two time investor (soon to be three) in Spectrus/FOR 1031, I can provide you guidance with your transactions especially on the NNN lease commercial property side that Spectrus offers.

I have a copy of my trust account with deposits of my rents from my buildings if you would like to see upon request by e-mail.

p.s. Pictures of my trip can be e-mailed to you as a Word Document. 

Dane

Dane S. Shota & Associates
Arborist and Nursery Services

Retirement Strategist/Investor/Real Estate Licensee
B.S. Ornamental Horticulture
California Polytechnic University, Pomona, California
Certified Arborist #WE 3436

16835 Algonquin Street # 172
Huntington Beach, CA 92649-3825
Office (714) 377-1181, Fax (714) 846-8848