57 Unit Mobile. FISCAL YEAR ENDING 12/31/2009 PRO FORMA CASH on CASH Return is 63.60% and 18.95% Cap Rate REDUCED TO $900,000 ALL CASH QUICK CLOSE

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Victoria Stevenson
6 years ago
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1 55 Unit *CASH Mobile on CASH Home Return Park is FOR 71.8%* SALE 57 Unit Mobile **FISCAL YEAR ENDING 12/31/2009 PRO FORMA CASH on CASH Return is 63.60% and 18.95% Cap Rate** REDUCED TO $900,000 ALL CASH QUICK CLOSE OWNER FINANCING WITH $998,000 PRICE 42 Longview Dr.-Cleveland, GA Just north of Atlanta and Lake Lanier 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, all tools and replacement parts, and a six year old Skagg riding lawn mower. 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 $998,000 with $150,000 (15%) down - 15 year note 7.5% interest - 10 year balloon. Owner will not take 2 nd note. REDUCED! Offered at $900,000 all cash quick closing! Directions: From Gainesville go north on U.S. Hwy 129 into White County go through the stop light at Westmoreland and take next left on Partin Road. Go approx. 100 yards to right on first road (Mobile Home Dr.). Park entrance on right. Pardue Mobile Home Park. Additional information including aerials, pictures, plats and cash flow and further directions to park via mapping software see: Click here or call: Brent Hoffman Brent@BrentHoffman.com Prudential Georgia Realty direct

2 Pardue Mobile Home Park Cleveland, GA Background Facts, Figures, and Information Ricky and Patsy Pardue (Owners) started the Pardue Mobile Home Park over 20 years ago. The park has grown to over 30 acres with 55 park owned rental units. The park is located approximately 1 hour 20 minutes north of Atlanta, GA, roughly ¼ mile off busy US 129 in Cleveland, GA. (According to the US Census, White County s population growth rate for is 26%.) Two years ago I sold the park for the Owners for $1,595,000, and they owner-financed the balance. Today it is offered at $900,000 all cash quick sale. OR $998,000 with owner financing.* At the time of the previous closing there were five vacancies. The new purchaser made faithful payments of principal and interest for over 18 months, but due to family issues, he gave the park back to Ricky and Patsy in November At the time there were 20+ vacancies, and since November Ricky and Patsy have been working to increase the tenancy. In addition they have spent $50-60,000 on deferred maintenance that occurred during the purchaser s ownership period which will not be reoccurring expenses. We do not have vacancy and expense numbers, etc. for the 18 months ownership period of the former purchaser. We have been attempting to use the best numbers available since Ricky and Patsy have regained ownership of the park, and now we have numbers since January Description of the Park The 30 acres provide beautiful views of the adjoining foothills of the Appalachian Mountains directly from the park. (Please see aerial photos.) The thirty acres of the park 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 contain 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 twelve tenants who pay monthly with the balance of the tenants paying weekly. Many Landlords appreciate the benefits of collecting the rent weekly which affords them an extra four weeks pay per year. And the old saying of Money now is better than money later holds true. (Ricky and Patsy have found it valuable to have their tenants pay weekly if they receive a weekly pay check or monthly if they receive a monthly pay check.) 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 tenants who haven t had a chance to drop off their payment. The average tenancy tends to be one to two years although there are several tenants who have lived at the park for five to eighteen years. This park is a legal mobile home park and is grandfathered as such. No additional units may be added to the land, but 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 code requires one acre of land for each mobile home. This makes it virtually impossible to financially construct and run a new mobile home park to compete with this one. The property is served by the City of Cleveland s 1/2010

3 public water system, and each unit is separately metered, with the exception of two units that share a well, and each unit is separately metered for electricity provided by Habersham EMC. The current owners allow a credit of approximately one-week s rent per month toward electricity and water costs combined. Example: If a unit is rented for $150 per week, and the water/electric bills total $200 for that one month period, the tenant will owe the monthly utilities and weekly rental difference of $50 which would be paid by the next week 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 come up with the extra funds for water and electricity deposits. A tremendous upside to the park would be to slowly wean tenants off the one week utility subsidy provided by the Landlord! A new owner with good management experience could turn all utility payments over to current or future tenants increasing the cash flow approximately $120,000 per year! 90% of the roads in the park are paved, and the grounds are mostly grass and in nice condition. At the entrance to the park is a 2,000 sf office (possible store) that can serve the park as a rental payment location and/or retail store. Included in the sale of the park is an 1,800 sf metal work shop building that contains numerous extra spare parts including refrigerators, HVAC systems, flooring, plumbing parts, lights, etc. Also included in the sale is a Skagg zero-turn lawnmower. The maintenance man who has worked at the park for approximately 12 years is paid $600/week. Mike handles almost every maintenance issue at the park and lives approximately one mile away. He is oncall on the week-ends and often shows the mobile homes for lease. Mike would like to continue in this capacity. If you are looking for management of the park then consider Mike s wife Mary. She managed the park very successfully for several years and is interested in coming back in that capacity. She has requested $400-$500 weekly for 50 hours work. All the mobile homes on the property are park-owned and are part of the sale. Their years of age are listed on the accompanying Excel Spreadsheet and range from Many of the units exteriors look old, but each is much nicer inside and rental ready. As of this writing there are fourteen vacancies which is rather unusual. Most of the time there are only four to five units available for lease. Owner Finance Details *Ricky and Patsy have agreed to owner-finance the purchase of the park with a price of $998, $150,000 (15%) down with good credit, of course. They are looking for an experienced, multi-family or mobile home investor who has a history of successful management. They will finance the park at 7.5% interest, 15 year note, with a 10 year balloon. Owners will not take a second position. Additional answers to your questions are easily available by calling me. Brent Hoffman Prudential Georgia Realty Commercial/Investment Services Brent@BrentHoffman.com Additional information at 1/2010

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

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

7 Unit Description and Approximate Rental Rate (Does not include vacancy) 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 / $ Longview S / $ 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 $ 314,080 $ 89,400 $ 403,480 S=Single-Wide * Tenant pays own utilities D=Double Wide

55 Park Owned Units (53 Mobile Homes - 2 Houses) on 30+ Acres - White County/Cleveland, Ga 30528 Offered for Sale for $998,000 with Owner Financing $150,000 down with 15 year term at 7.5% with 10 yr.

8 55 Park Owned Units (53 Mobile Homes - 2 Houses) on 30+ Acres - White County/Cleveland, Ga Offered for Sale for $998,000 with Owner Financing $150,000 down with 15 year term at 7.5% with 10 yr. balloon or $900,000 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 $ 403,480 Vacancy (7%) $ 28,244 Modified Gross Revenue $ 375,236 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 $ 189,150 Projected NOI on Pro Forma *NOI Pro Forma withtenants paying own power/water. $ $ 189, ,787 Purchase Scenario on Proforma Purchase Price $ 998,000 Downpayment $ 150,000 (required) Owner Financing $ 848,000 Proforma NOI $ 189, Year Term 15 - Yearly Payment $ 93,747 Interest Rate 7.5% Pro Forma ROI First Year $ 95,404 Monthly Payment $ 7,812 Yearly Payment $ 93,747 Note - You may change ANY VALUE to repopulate all fields Proforma cap rate is: 18.95% Pro Forma Cap rate if you passed on elec./water to tenant: 30.64% Pro Forma ROI Cash on Cash return with $150,000 down is: 63.60% * 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

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 $ - $

Power *Actual $ 10,822 $ 11,162 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 21,984 $ 131,904 Insurance (Actual) $ 228 $ 228 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 456 $ 2,738 Taxes (Land and M.

$ 2,600 $ 2,600 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 5,200 $ 31,200 Trash (Actual) $ 386 $ 386 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 772 $ 4,632 Phone (Actual) $ 35 $ 35 $ - $ - $ - $ - $ -

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 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 44,232 $ 403,480 Vacancy (7%) $ 28,244 Modified Gross Revenue $ 375,236 Water *Actual $ 1,380 $ 1,386 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 2,766 $ 16,596 Power *Actual $ 10,822 $ 11,162 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 21,984 $ 131,904 Insurance (Actual) $ 228 $ 228 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 456 $ 2,738 Taxes (Land and M.H's Actual) $ 706 $ 706 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,412 $ 8,475 Maintenance (parts) $ 1,500 $ 1,500 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 3,000 $ 18,000 Maintenance Labor **Actual $ 2,600 $ 2,600 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 5,200 $ 31,200 Trash (Actual) $ 386 $ 386 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 772 $ 4,632 Phone (Actual) $ 35 $ 35 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 70 $ 420 Cell Phone (Actual) $ 65 $ 65 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 130 $ 780 Advertising (Actual) $ 99 $ 99 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 198 $ 1,188 Evictions $ 168 $ 168 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 336 $ 2,016 Total Expenses $ 17,989 $ 18,335 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 36,324 $ 217,949 Net Operating Income $ 6,761 $ 1,147 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 7,908 $ 157,287 Projected NOI on Pro Forma *NOI Pro Forma withtenants paying own power/water. $ $ 157, ,787 Purchase Scenario on Proforma Purchase Price $ 998,000 Downpayment $ 150,000 (required) Owner Financing $ 848,000 Proforma NOI $ 157, Year Term 15 - Yearly Payment $ 93,747 Interest Rate 7.5% Pro Forma ROI First Year $ 63,541 Monthly Payment $ 7,812 Yearly Payment $ 93,747 Note - You may change ANY VALUE to repopulate all fields Proforma cap rate is: 15.76% Pro Forma Cap rate if you passed on elec./water to tenant: 30.64% Pro Forma ROI Cash on Cash return with $150,000 down is: 42.36% * 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

57 Unit Mobile. PRO FORMA CASH on CASH Return is 64.28% 19.05% Cap Rate -- OWNER WILL FINANCE WITH $150,000 DOWN-- Summary

57 Unit Mobile. *PRO FORMA CASH on CASH Return is 64.28%* 19.05% Cap Rate -- OWNER WILL FINANCE WITH $150,000 DOWN-- Summary 55 Unit *CASH Mobile on CASH Home Return Park is 71.8%* FOR SALE 57 Unit Mobile *PRO FORMA CASH on CASH Return is 64.28%* 19.05% Cap Rate -- OWNER WILL FINANCE WITH $150,000 DOWN-- 42 Longview Dr.-Cleveland,