Over the last two years, every deal Maverick has seen in the Mississippi GO-Zone had contained one or more of the "Five Red Flags" described below, and these flags made the deal untenable.

Five Red Flags to Look Out for When Buying in the Mississippi Go-Zone:

1. Outrageously high insurance anywhere near the coast that usually removes the potential for positive cash flow.
2. Buying in destitute micro-markets (such as Bay St. Louis, Waveland, Bayside Park, etc), which have virtually no potential for economic growth, limited rental demand, and no viable exit strategy.
3. Buying Town Homes, Duplexes and other products with low demand and virtually no re-sale market.
4. Buying into communities that are 100% investor concentration
5. Buying at low elevations or in the flood zones

Tarabrooke's Five Solutions

#1 Buy from the only developer on the Gulf Coast whose properties are granted 20% insurance discounts by the state of Mississippi for building to a higher wind code

The Developer of Tarabrooke is the only builder on the gulf coast that has successfully negotiated directly with the Mississippi state wind-pool for discounted insurance rates for buyers of his properties in exchange for building the properties to a substantially higher code. All properties come with a BKEG-1 Wind Construction Certificate from the State of Mississippi, which means a 20% discount on wind insurance rates anywhere the buyer goes to purchase insurance. The result is greater cash flow potential for the buyer!

#2 Buy in Gulfport (Not some destitute "suburb")

The economic boom is happening in Gulfport. But most of the Go-Zone properties being marketed to real estate investors are in extremely remote locations (like Bay St. Louis, Waveland, Bayside Park, etc), far away from the economic growth in Gulfport. The main reason is that land is remarkably cheap in these remote locations where as land prices shot up significantly since Hurricane Katrina in the premium micro-markets in Gulfport. Therefore, when builders from out of town try to come in and capitalize on the GO-Zone or builders who don't own their own subdivisions have to buy lots in order to build and sell houses, they cannot produce an affordable product in the Gulfport area. The Developer of Tarabrooke has owned the subdivision for years, before the price of land shot up, so he is one of the only builders on the coast that can produce a high-end affordable product in this micro-market!

#3 Buy single family homes (Best rentals, best exit strategy)

The Developer of Tarabrooke builds the most affordable high-end single family homes on the Gulf Coast and sells almost exclusively to primary homeowners. Most single family homes from other developers in Gulfport and Biloxi are in the $200,000+ price point because of the cost of land in the best markets. Houses at this price point are not typically able to cash flow as rentals. For this reason, most of the properties marketed to real estate investors by other developers are townhomes or duplexes. The main problem is that there is no re-sale market for townhomes and duplexes. Someone who wants to buy a house to live in is almost always going to purchase a single family home, not half of a duplex! Tarabrooke is precisely the product (high end single family homes) that primary homeowners want to buy, and it is one of the most affordable homes in this market. Single family homes are also much easier to rent, as tenants prefer them for the same reason owners do!

#4 Buy into the beginning or the end of a community that will have the rest of the properties sold to primary residents

Tarabrooke already has 75 properties built and occupied by primary residents who are living and thriving in the community. After extensive negotiating, the Developer has agreed to let Maverick buyers take down the final handful of homes of the community, spacing out the rental properties amidst the primary homeowners so as to provide a premium exit strategy when you are ready to sell.

#5 Buy outside the flood zones

The Flood Plains are clearly demarcated and insurance companies create prices accordingly. Nonetheless, many investors buy in the flood zone, generating much higher insurance rates and much higher risk of damage to the property. Not only is Tarabrooke demarcated as a "Zone X" which is the "No Flood Zone", many miles north of the shore and outside the hurricanes paths, but it is known as one of the safest communities in Gulfport because of its elevation. The standard elevation for a "Zone X" is 16-25 feet above (median high tide) sea level. Tarabrooke is 97 feet above sea level!

Tarabrooke Project Location and Specifications

Tarabrooke Location:

Tarabrooke is so popular with primary residents because it is a beautiful secluded subdivision, populated with mature trees, peaceful and outside the hustle and bustle of the city. Yet Tarabrooke is a short drive to the shopping, jobs, restaurants, the Gulfport International Airport and an easy commute to the thousands of jobs that will be pouring into the Port of Gulfport.