Mobile Home Park FOR SALE in North Georgia

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1 Mobile Home Park FOR SALE in North Georgia 55-Units on 30 acres $899,000 w/owner financing & $150,000 down or $775,000 all cash Summary We are offering 55 rental units (53 mobile homes and 2 houses) for sale on 30+ beautiful acres in exploding White County (Cleveland) Georgia. The park contains 55 rental units* with a mixture of singlewide and doublewide park-owned rental homes. Each unit has its own city water meter and septic system. Most units contain central air conditioning. 90% of the community s roads are paved, and the park has a large store/office at the entrance. The sale of the park includes: All housing units, 1,800 sf shop building, 2,000 sf office/store building (currently leased for children s services, e.g., education, tutoring, and parties for children who live in the park), all tools and replacement parts, sixyear-old Skagg riding lawn mower, and 1996 Ford Econline van. Maintenance man would like to stay. With the exception of two years, this park has had the same owner for 20 years, and it has had a tremendous weekly cash flow. Owner will finance at $899,000 with $150,000 down, 20-year amortization at 7.5% interest, and 10-year balloon. Monthly payments would be $6, 034. Owner Directions: will not From take Gainesville, 2 nd note. go north on U.S. Hwy. 129 into White County, go through the stop light at Or purchase the Park for a discount at $775,000 cash. Directions: From Gainesville, go north on U.S. Hwy. 129 into White County, go through the stop light at Westmoreland, and take left turn on first road on left, which is Partin Road. Travel approximately 100 yards to the first road on right, which is Mobile Home Dr. Turn right and travel into the park. For additional information, including aerials, pictures, plats and cash flow, and further directions to park via mapping software, click here, or call Brent Hoffman at Prudential Georgia Realty, *You can buy three additional mobile home units on four acres, 40 yards from the Park, for an additional $120,000.

2 Pardue Mobile Home Park Cleveland, GA BACKGROUND Facts, figures and Information Ricky and Patsy Pardue, owners of the Pardue Mobile Home Park, started this Park more than 20 years ago. The Park has grown to more than 30 acres, with 55 park-owned rental units, which are all part of the sale. The units were built between 1960 and 2000, as you will see on the accompanying Excel spreadsheet. Many of the exteriors look old; however, the interiors are nice and rental ready. The Park is located approximately one hour and 20 minutes north of Atlanta, GA, roughly ¼ miles off busy US 129 in Cleveland, GA. According to the U.S. Census Bureau, White County s population growth rate for is 26%. Two years ago, I sold the Park for $1,595,000, which the Owners financed. For reasons beyond their control, they ended up taking back the Park. Description of the Park The 30-acre Park boasts beautiful views of the adjoining foothills of the Appalachian Mountains (please see aerial photos). The 30 acres are contiguous and contain 55 rental units, two of which are stick-built homes. Approximately 40 yards from the Park is another 4+ acres that contains three additional mobile home units that can be purchased separately for $120,000. All units are rented on a weekly and/or monthly basis (although most Tenants occupy the units for years) using a two-page weekly lease form. Currently, we have 17 Tenants who pay monthly, and the rest pay weekly. Many Landlords appreciate the benefits of collecting rents weekly, which affords them an extra four weeks rent per year. And the old saying, Money now is better than money later holds true. Ricky and Patsy allow the Tenants to pay weekly if they get paid weekly, and monthly if they get paid monthly. Many of the Tenants pay their rent at an office 2.5 miles from the Park; however, Ricky will often collect rent on Friday afternoons from the Seniors and other Tenants who hadn t had the chance to drop off their rent. At the time of the previous sale of the Park, there were five vacancies. The average tenancy extends between one to two years, although there are several Tenants who have lived at the Park for five to 18 years. As of this writing, there are six vacancies. Most of the time there are just four or five units available for lease. Please call for current information. This is a legal Mobile Home Park and is grandfathered as such. No additional units may be added to the land, with the exception of the vacant lot which is ready for a new unit. Each mobile home currently on the property MAY be replaced with a newer unit at any time. An interesting fact to a potential purchaser is the current barrier to entry of any future mobile home parks in White County. The new mobile home park code requires once acre of land for each mobile home, making it virtually impossible to construct a new park to feasibly compete with this one, the largest Park in the area! The property is serviced by the White County Water Authority, and each unit is separately metered, with the exception of two units that share a well. In addition, each unit is separately metered for electricity provided by Habersham EMC, with the exception of four units that share two meters between them. The current Owners allow a credit of approximately $100/month for combined water and electric bills. If the water/electric bills total $200 for a one-month period, the Tenant will owe the

3 monthly utilities difference of $100, which would be paid with the following week s, or month s, payment. This provides the Landlord a tremendous advantage: when showing a unit for lease, the Tenant can move in immediately and will not have to produce extra funds for utility deposits. On the other hand, it would be an upside for the Owner to slowly wean Tenants off the one-week subsidy provided by the Landlord. In such a case, a new Owner with good management skills could increase the yearly cash flow by $120,000, just by allowing Tenants to pay their own utilities!! Ninety percent of the roads in the Park are paved, and the grounds are mostly grass in good condition. A 2,000 s.f. office sits at the Park entrance, and could be used for rental collection or converted into a store. Currently, the structure is being used by the Division of Family and Child Services (DFCS) to provide tutoring and computer classes to children who reside in the Park. What a great feature!! Included in the sale of the Park is an 1,800 s.f. metal workshop that contains various items, such as refrigerators, HVAC systems, flooring, plumbing parts, lights, etc. Also included in the sale is a Skagg zero-turn lawnmower, and newly-constructed large gazebo for picnics and parties. Mike is the maintenance man who has worked at the Park for 12 years. He gets paid $600/week to handle maintenance issues, and weekends he is on call to show units that are for lease. Mike lives only a mile away and would like to remain in his current position. His wife, Mary, successfully managed the Park for years and is interested in returning to that position. She has requested $400-$500/week for 50 hours of work, if you would like a manager. *Owner-Finance Details Ricky and Patsy have agreed to owner finance the purchase of the Park with a purchase price of $899,000. They require $150,000, and, of course, good credit. They are looking for an experienced, multi-family or mobile home park investor who has a successful management history. They will finance the Park at 7.5% interest, 20-year-note, with a 10-year-balloon. Owners will not take a second position. Additional questions? Don t hesitate to call me! Brent Hoffman Prudential Georgia Realty, Commercial/Investment Services Brent@BrentHoffman.com Additional information and video of the Park at

4 Brent Hoffman Unit MHP Cleveland, GA Owner Will Finance!

5 Brent Hoffman Unit MHP Cleveland, GA Owner Will Finance!

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7 Unit Description and Approximate Rental Rate (Does not include vacancy, if any) Lot # Weekly Monthly Address Type Year Bed/Bath 1 8 $ Longview S /1 2 9 $ Mobile H. Dr S / Storage 148 Mobile H. Dr S / $ Bald Ridge D / $ Bald Ridge S / $ Briarwood D / $ Longview S /1 8 *15 $ Bald Ridge S / $ Bald Ridge S / $ Longview S / Vacant Lot Ready 83 Longview 3/ $ Longview S / $ Longview S / $ Briarwood D / $ 125 New Home S? 2/ $ Longview S / $ Longview S / $ Longview S / $ Longview S / $ Shays Dr. D / Church Can Lease 28 Shays Dr. S / * $ Shays Dr. S / $ Shays Dr. S / $ Shays Dr. S / $ Shays Dr. S / $ Longview S / $ Bald Ridge S / $ Longview S / $ Longview S / $ Longview S / $ Shays Dr. S / $ Shays Dr. S / $ Jacobs Dr. D / $ Jacobs Dr. S / $ Jacobs Dr. S / $ Jacobs Dr. D / $ Jacobs Dr. S / $ Bald Ridge S / $ Bald Ridge D / $ Bald Ridge S / $ Bald Ridge D / $ Bald Ridge S / $ Mobile H.Dr S / $ Bald Ridge S / $ Bald Ridge S / $ Mobile H. Dr HOUSE 3/ $ Bald Ridge S / $ Bald Ridge S / $ Shiree Dr. D / $ Shiree Dr. S / $ Shiree Dr. S / $ Shiree Dr. HOUSE 3/ $ Brairwood D / $ Brairwood D / $ Briarwood D /2 Office Shop Total Weekly and monthly RENT $ 272,220 $ 110,340 $ 382,560 S=Single-Wide * Tenant pays own utilities D=Double Wide

8 55 Park Owned Units (53 Mobile Homes - 2 Houses) on 30+ Acres - White County/Cleveland, Ga Offered for Sale for $899,000 with Owner Financing $150,000 down with 20 year term at 7.5% with 10 yr. balloon or $775,000 all cash with quick closing Actual Gross Rents Collected with Proforma in Yellow Cash Flow Analysis 12 MO PRO FORMA Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Actual YTD ACTUAL EXPENSES Actual Gross Rents Collected $ 34,605 $ 23,770 $ 14,543 $ 32,271 $ 31,194 $ 23,226 $ 28,505 $ 23,243 $ 19,775 $ 23,523 $ 19,503 $ 20,704 $ 294,862 $ 382,560 Vacancy (7%) $ 26,779 Modified Gross Revenue $ 355,781 Water *Actual $ 1,356 $ 1,594 $ 1,286 $ 1,387 $ 1,318 $ 1,484 $ 1,507 $ 1,494 $ 1,430 $ 1,430 $ 1,382 $ 1,297 $ 16,965 $ 16,965 Power *Actual $ 10,387 $ 9,212 $ 8,436 $ 6,506 $ 5,946 $ 8,893 $ 10,611 $ 9,284 $ 7,505 $ 7,505 $ 5,889 $ 9,498 $ 99,672 $ 99,672 Insurance (Actual) $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 2,738 $ 2,738 Taxes (Land and M.H's Actual) $ 706 $ 706 $ 706 $ 706 $ 706 $ 706 $ 706 $ 706 $ 706 $ 706 $ 706 $ 706 $ 8,474 $ 8,475 Maintenance (parts) $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 18,000 $ 18,000 Maintenance Labor **Actual $ 2,600 $ 2,600 $ 2,600 $ 2,600 $ 2,600 $ 2,600 $ 2,600 $ 2,600 $ 2,600 $ 2,600 $ 2,600 $ 2,600 $ 31,200 $ 31,200 Trash (Actual) $ 386 $ 386 $ 386 $ 386 $ 386 $ 386 $ 386 $ 386 $ 386 $ 386 $ 386 $ 386 $ 4,632 $ 4,632 Phone (Actual) $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 420 $ 420 Cell Phone (Actual) $ 65 $ 65 $ 65 $ 65 $ 65 $ 65 $ 65 $ 65 $ 65 $ 65 $ 65 $ 65 $ 780 $ 780 Advertising (Actual) $ 99 $ 99 $ 99 $ 99 $ 99 $ 99 $ 99 $ 99 $ 99 $ 99 $ 99 $ 99 $ 1,188 $ 1,188 Evictions $ 168 $ 168 $ 168 $ 168 $ 168 $ 168 $ 168 $ 168 $ 168 $ 168 $ 168 $ 168 $ 2,016 $ 2,016 Total Expenses $ 17,530 $ 16,593 $ 15,509 $ 13,680 $ 13,051 $ 16,164 $ 17,905 $ 16,565 $ 14,722 $ 14,722 $ 13,058 $ 16,582 $ 186,085 $ 186,086 Net Operating Income $ 17,075 $ 7,177 $ (966) $ 18,591 $ 18,143 $ 7,062 $ 10,600 $ 6,678 $ 5,053 $ 8,801 $ 6,445 $ 4,122 $ 108,777 $ 169,695 Projected NOI on Pro Forma *NOI Pro Forma withtenants paying own power/water. $ $ 169, ,332 Purchase Scenario on Proforma Purchase Price $ 899,000 Downpayment $ 150,000 (required) Owner Financing $ 749,000 Proforma NOI $ 137, Year Term 20 - Yearly Payment $ 71,957 Interest Rate 7.5% Pro Forma ROI First Year $ 65,875 Monthly Payment $ 5,996 Yearly Payment $ 71,957 Note - You may change ANY VALUE to repopulate all fields Proforma cap rate is: 15.33% Pro Forma Cap rate if you passed on elec./water to tenant: 31.85% Pro Forma ROI Cash on Cash return with $150,000 down is: 43.92% * Landlord currently pays up to one weeks rent for power and water any overage is billed to tenant ** Current yearly salary to maintenance man on site is $600/wk. Mike would like to stay ***The huge upside to this investment is no longer paying one week per month water and electric for tenant. ` See Second Excel Tab for "Unit Descriptions" 42 Longview Drive; Cleveland, Georgia Prepared by: Brent Hoffman - Prudential Georgia Realty- Commercial Real Estate Services Direct for more information

9 Cash Flow Analysis 12 MO PRO FORMA Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Actual YTD ACTUAL EXPENSES Actual Gross Rents Collected $ 24,750 $ 19,482 $ 16,000 $ 18,294 $ 23,970 $ 21,466 $ 26,521 $ 26,879 $ 25,026 $ - $ - $ - $ 202,388 $ 382,560 Vacancy $ 26,779 Modified Gross Revenue $ 355,781 Water *Actual $ 1,380 $ 1,386 $ 1,324 $ 1,407 $ 1,404 $ 1,614 $ 1,660 $ 1,628 $ 1,581 $ - $ - $ - $ 13,384 $ 16,596 Power *Actual $ 10,822 $ 11,162 $ 7,760 $ 9,383 $ 5,981 $ 11,095 $ 10,403 $ 9,761 $ 9,773 $ - $ - $ - $ 86,140 $ 131,904 Insurance (Actual) $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ - $ - $ - $ 2,052 $ 2,738 Taxes (Land and M.H's Actual) $ 706 $ 706 $ 706 $ 706 $ 706 $ 706 $ 706 $ 706 $ 706 $ - $ - $ - $ 6,354 $ 8,475 Maintenance (parts) $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ - $ - $ - $ 13,500 $ 18,000 Maintenance Labor **Actual $ 2,600 $ 2,600 $ 2,600 $ 2,600 $ 2,600 $ 2,600 $ 2,600 $ 2,600 $ 2,600 $ - $ - $ - $ 23,400 $ 31,200 Trash (Actual) $ 386 $ 386 $ 386 $ 386 $ 386 $ 386 $ 386 $ 386 $ 386 $ - $ - $ - $ 3,474 $ 4,632 Phone (Actual) $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ 35 $ - $ - $ - $ 315 $ 420 Cell Phone (Actual) $ 65 $ 65 $ 65 $ 65 $ 65 $ 65 $ 65 $ 65 $ 65 $ - $ - $ - $ 585 $ 780 Advertising (Actual) $ 99 $ 99 $ 99 $ 99 $ 99 $ 99 $ 99 $ 99 $ 99 $ - $ - $ - $ 891 $ 1,188 Evictions $ 168 $ 168 $ 168 $ 168 $ 168 $ 168 $ 168 $ 168 $ 168 $ - $ - $ - $ 1,512 $ 2,016 Total Expenses $ 17,989 $ 18,335 $ 14,871 $ 16,577 $ 13,172 $ 18,496 $ 17,850 $ 17,176 $ 17,141 $ - $ - $ - $ 151,607 $ 217,949 Net Operating Income $ 6,761 $ 1,147 $ 1,129 $ 1,717 $ 10,798 $ 2,970 $ 8,671 $ 9,703 $ 7,885 $ - $ - $ - $ 50,781 $ 137,832 Projected NOI on Pro Forma *NOI Pro Forma withtenants paying own power/water. $ $ 137, ,332 Purchase Scenario on Proforma Purchase Price $ 899,000 Downpayment $ 150,000 (required) Owner Financing $ 749,000 Proforma NOI $ 137, Year Term 20 - Yearly Payment $ 71,957 Interest Rate 7.5% Pro Forma ROI First Year $ 65,875 Monthly Payment $ 5,996 Yearly Payment $ 71,957 Note - You may change ANY VALUE to repopulate all fields Proforma cap rate is: 15.33% Pro Forma Cap rate if you passed on elec./water to tenant: 31.85% Pro Forma ROI Cash on Cash return with $150,000 down is: 43.92% * Landlord currently pays up to one weeks rent for power and water any overage is billed to tenant ** Current salary to maintenance man on site is $600/wk. Mike would like to stay ***The huge upside to this investment is no longer paying one week per month water and electric for tenant. ****Additional 3 units located 40 yards from the park on 4 acres can be added to the purchase for $120,000 (cash) ` See Second Excel Tab for "Unit Descriptions" 42 Longview Drive; Cleveland, Georgia Prepared by: Brent Hoffman - Prudential Georgia Realty- Commercial Real Estate Services Direct for more information

10 IDEAS TO INCREASE VALUE AT THE PARK The Pardue Mobile Home Park has been owned and operated almost exclusively by Ricky and Patsy Pardue for more than 20 years. And to be honest, they continue to do things the way they have always done things. New ideas and new management at this Park would significantly increase the cash flow. Here are a few ideas: UTILITIES: If you will note, the current utilities are paid mostly by the Landlord. This should change! Each mobile home has its own separate water and electric meters. I would suggest lowering the rents a little bit, and over time, have tenants pay their own utilities. This alone could add more that $120,000/year to your bottom line. OLDER UNITS: The units in this Park vary in age; the oldest units were built in the mid 1960s, and the newer units in the early 2000s. All are in rental ready condition, but the older (less kempt on the outside) units could be replaced for approximately $10-12,000. This would quickly upgrade the Park, enabling the owner to increase rents across the board. LEASE/PURCHASE (of some units): Allowing some of the long-standing tenants to lease/purchase their individual units would quickly increase cash flow to the new owner and, at the same time, quickly diminish maintenance cost and upkeep, as new owners would be responsible for their own unit maintenance. LOT RENT: Using the above lease/purchase concept, a new owner could then charge lot rent for each lease/purchase agreement. In addition, you might move some of the older units out of the Park and then allow new tenants to bring in their own unit, turning the Park into a pad-leasing opportunity over time, which would quickly diminish maintenance cost. Questions??? Please give me a call. Brent Hoffman Prudential Georgia Realty (direct office line) (cell) Brent@BrentHoffman.com ( )