Frontier Travel Park

Transcription

1 Frontier Travel Park MHP - 62 spaces w/36 Trailers Also Includes 16 Cottages and 2 Stores Current Occupancy 80% Zoned PD- Commercial Seller Financing Available 20% Down Presented by CRES Corp International, llc 1228 E 7th Ave benny@crescorpllc.com Tampa, Fl 33605

2 CRES Corp International, llc Frontier Travel Park Income, Expenses & Cash Flow Property Overview Potential Rental Income $ 308,600 Purchase/Asking Price $ 1,400,000 Property Type Mobile Home Parks Other Income - Improvements - No. of Units 80 Total Vacancy and Credits (15,430) Other - Price Per Unit $ 17,500 Operating Expenses $ (110,588) Closing Costs - Total Sq Ft 1,000 Annual Reserves: $ (55,000) Finance Points - Price Per Sq Ft $ 1,400 Net Operating Income (NOI) $ 127,582 Income per Unit $ 3,858 MIP Payments $ Total Acquisition Cost $ 1,400,000 Expenses per Unit $ (1,382) Annual Reserves: $ Debt Service: $ (110,607) Cash Flow Before Taxes $ 16,975 Mortgage (s) $ 1,120,000 Income Taxes: Benefit 0% - Down Payment / Investment $ 280,000 Cash Flow After Taxes $ 16,975 Assumptions Loan Information % of Asking % of Cost Rental Growth Rate: 12.77% Down Payment: $ 280, % 20.00% Expense Growth Rate: 3.00% Initial Loan Balance: $ 1,120, % 80.00% Appreciation Rate 3.00% Marginal Tax Rate: 0.00% Loan Amount Interest Rate Term Payment Capital Gain Tax Rate: 0.00% $ 1,120, % 21 $9,217 $ 6.00% 25 $7,124 $ 4.00% 30 $0 Financial Measurements Year 1 Year 5 Year 10 Notes / Discussion Debt Coverage Ratio (DCR) Loan-to-Value Ratio (LVR) 66.6% 53.6% 39.3% Capitalization Rate Based on Cost 9.11% 20.03% 21.75% Capitalization Rate Based on Resale Price 7.74% 15.12% 14.16% Gross Rent Multiplier Net Present Value (NPV) - B/ Taxes Net Present Value (NPV) - A/Taxes 13.50% 161, , , % 175, ,707 1,118,324 Cash on Cash Return - Before Taxes 6.06% 68.15% 76.56% Cash on Cash Return - After Taxes 6.06% 68.15% 76.56% Internal Rate of Return - Before Taxes 46.61% 42.85% Internal Rate of Return - After Taxes 46.61% 42.85% Modified Internal Rate of Return - Before Taxes Modified Internal Rate of Return - After Taxes 38.12% 26.28% 38.12% 26.28% Disclaimer: All information presented is believed to be accurate. The information, calculations and data presented in this report are believed to be accurate but are not guaranteed. The information contained in this report shall not be considered as a substitution for legal, accounting or other professional advice. Please seek proper legal and tax advice as appropriate before making investments.

3 Property Description Frontier Travel Park This park is currently 80% occupied and is producing a Gross Revenue of $308,000and netting close to $160,000. This FPR indicates the new Owner improving the property by upgrading and repairng the cottages and park grounds. The expense for the purposes of this Report is around $85K spread over the initial 3 year of new ownership. HIGHLIGHTS Seller Financing 20% Down 62-Spaces w/36 MH's 16 Cottages 2 Stores Zoned PD- Commercial Potential Development Site The expense of putting in seperate water and electric meters is also included as that will reduce the large Water and Electric Bill that is $45K/an, the Seller is currently responsible for and paying $60,000/an for utilites. This Report assumes the new Owner has incorporated seperate meters and so does not include this expense in its projections. Within the fourth year of new Ownership the park revenue should provide a gross revenue of $426K a NOI of $257K The potential Buyer may have a different proposition for this property. Park zoning permits Commercial/Residential Development. Also available are Reports on this property for Development Projects to include: -Storage Facility Units -Assisted Living Facility For copies of these reports please contact me. CRES Corp International, llc benny@crescorpllc.com 1228 E 7th Ave 0 Tampa, Fl 33605

4 Frontier Travel Park Cottages Office Utility/Storage/Mail Cottages Across the Street Street View

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6 Rental Activity Analysis Year 1 Year 2 Year 3 Year 4 Year 5 Potential Rental Income $ 308,600 $ 348,000 $ 406,800 $ 426,000 $ 434,520 Less: Vacancy & Credit Losses (15,430) (17,400) (20,340) (21,300) (21,726) Effective Gross Income $ 293,170 $ 330,600 $ 386,460 $ 404,700 $ 412,794 Less: Funded Reserves and/or Improvements (55,000) (20,000) (10,000) - - Less: Operating Expenses (110,588) (116,618) (124,469) (128,833) (132,315) Net Operating Income (NOI) $ 127,582 $ 193,982 $ 251,991 $ 275,867 $ 280,479 Less: Annual Debt Service (110,607) (110,607) (110,607) (85,487) (85,487) CASH FLOW Before Taxes $ 16,975 $ 83,375 $ 141,384 $ 190,380 $ 194,992 Property Resale Analysis Projected Sales Price $ 1,648,000 $ 1,697,440 $ 1,748,363 $ 1,800,814 $ 1,854,839 Less: Selling Expenses (65,920) (67,898) (69,935) (72,033) (74,194) Adjusted Projected Sales Price $ 1,582,080 $ 1,629,542 $ 1,678,429 $ 1,728,782 $ 1,780,645 Less: Mortgage(s) Balance Payoff (1,098,206) (1,074,602) (1,049,040) (1,019,370) (994,365) SALE PROCEEDS Before Taxes $ 483,874 $ 554,940 $ 629,389 $ 709,411 $ 786,280 Cash Position Cash Generated in Current Year $ 16,975 $ 83,375 $ 141,384 $ 190,380 $ 194,992 Cash Generated in Previous Years n/a 16, , , ,113 Cash Generated from Property Sale 483, , , , ,280 Cash Inflow (Outflow) from Refinancing (6,117) (6,117) Original Initial Investment (280,000) (280,000) (280,000) (280,000) (280,000) Total Potential CASH Generated $ 220,850 $ 375,290 $ 591,123 $ 855,408 $ 1,127,268 Financial Measurements Debt Coverage Ratio (DCR) Loan-to-Value Ratio (LVR) 66.6% 63.3% 60.0% 56.6% 53.6% Capitalization Rate Based on Cost 9.11% 13.86% 18.00% 19.70% 20.03% Capitalization Rate Based on Resale Price 7.74% 11.43% 14.41% 15.32% 15.12% Gross Rent Monthly Multiplier (GRM) Gross Rent Yearly Multiplier (GRM) Value of Property Using this GRM ,543,000 1,740,000 2,034,000 2,130,000 2,172,600 Break-Even Ratio 89.50% 71.04% 60.24% 50.31% 50.12% Operating Expense Ratio 37.72% 35.27% 32.21% 31.83% 32.05% Cash-on-Cash Return with Equity 78.87% 31.92% 38.89% 41.99% 38.32% Cash-on-Cash Return - Before Taxes 6.06% 29.78% 50.49% 66.54% 68.15% 1/11/ :30 AM Cash Flow Analyzer

7 Rental Activity Analysis Potential Rental Income Less: Vacancy & Credit Losses Effective Gross Income Less: Funded Reserves and/or Improvements Less: Operating Expenses Net Operating Income (NOI) Year 6 Year 7 Year 8 Year 9 Year 10 $ 443,210 $ 452,075 $ 461,116 $ 470,338 $ 479,745 (22,161) (22,604) (23,056) (23,517) (23,987) $ 421,050 $ 429,471 $ 438,060 $ 446,822 $ 455, (135,893) (139,571) (143,351) (147,237) (151,231) $ 285,157 $ 289,900 $ 294,709 $ 299,585 $ 304,527 Less: Annual Debt Service CASH FLOW Before Taxes (85,487) (85,487) (85,487) (85,487) (85,487) $ 199,670 $ 204,413 $ 209,222 $ 214,097 $ 219,040 Property Resale Analysis Projected Sales Price Less: Selling Expenses Adjusted Projected Sales Price $ 1,910,484 $ 1,967,798 $ 2,026,832 $ 2,087,637 $ 2,150,266 (76,419) (78,712) (81,073) (83,505) (86,011) $ 1,834,064 $ 1,889,086 $ 1,945,759 $ 2,004,132 $ 2,064,256 Less: Mortgage(s) Balance Payoff SALE PROCEEDS Before Taxes (967,818) (939,633) (909,709) (877,940) (844,212) $ 866,247 $ 949,454 $ 1,036,050 $ 1,126,191 $ 1,220,044 Cash Position Cash Generated in Current Year Cash Generated in Previous Years Cash Generated from Property Sale Cash Inflow (Outflow) from Refinancing Original Initial Investment Total Potential CASH Generated $ 199,670 $ 204,413 $ 209,222 $ 214,097 $ 219, , ,775 1,031,188 1,240,409 1,454, , ,454 1,036,050 1,126,191 1,220,044 (6,117) (6,117) (6,117) (6,117) (6,117) (280,000) (280,000) (280,000) (280,000) (280,000) $ 1,406,905 $ 1,694,524 $ 1,990,342 $ 2,294,581 $ 2,607,473 Financial Measurements Debt Coverage Ratio (DCR) Loan-to-Value Ratio (LVR) Capitalization Rate Based on Cost Capitalization Rate Based on Resale Price Gross Rent Monthly Multiplier (GRM) Gross Rent Yearly Multiplier (GRM) Value of Property Using this GRM 5.00 Break-Even Ratio Operating Expense Ratio % 47.8% 44.9% 42.1% 39.3% 20.37% 20.71% 21.05% 21.40% 21.75% 14.93% 14.73% 14.54% 14.35% 14.16% ,216,052 2,260,373 2,305,581 2,351,692 2,398, % 49.78% 49.63% 49.48% 49.34% 32.27% 32.50% 32.72% 32.95% 33.18% Cash-on-Cash Return with Equity Cash-on-Cash Return - Before Taxes 35.56% 33.20% 31.16% 29.37% 27.78% 69.79% 71.44% 73.12% 74.83% 76.56% 1/11/ :30 AM Cash Flow Analyzer

8 Rental Activity Analysis Year 11 Year 12 Year 13 Year 14 Year 15 Potential Rental Income Less: Vacancy & Credit Losses Effective Gross Income Less: Funded Reserves and/or Improvements Less: Operating Expenses Net Operating Income (NOI) $ 489,340 $ 499,127 $ 509,109 $ 519,292 $ 529,677 (24,467) (24,956) (25,455) (25,965) (26,484) $ 464,873 $ 474,171 $ 483,654 $ 493,327 $ 503, (155,336) (159,555) (163,893) (168,351) (172,935) $ 309,537 $ 314,615 $ 319,761 $ 324,976 $ 330,259 Less: Annual Debt Service CASH FLOW Before Taxes (85,487) (85,487) (85,487) (85,487) (85,487) $ 224,050 $ 229,128 $ 234,274 $ 239,488 $ 244,772 Property Resale Analysis Projected Sales Price Less: Selling Expenses Adjusted Projected Sales Price $ 2,214,774 $ 2,281,217 $ 2,349,654 $ 2,420,144 $ 2,492,748 (88,591) (91,249) (93,986) (96,806) (99,710) $ 2,126,183 $ 2,189,969 $ 2,255,668 $ 2,323,338 $ 2,393,038 Less: Mortgage(s) Balance Payoff SALE PROCEEDS Before Taxes (808,403) (770,386) (730,024) (687,173) (641,678) $ 1,317,780 $ 1,419,583 $ 1,525,644 $ 1,636,165 $ 1,751,360 Cash Position Cash Generated in Current Year Cash Generated in Previous Years Cash Generated from Property Sale Cash Inflow (Outflow) from Refinancing Original Initial Investment Total Potential CASH Generated $ 224,050 $ 229,128 $ 234,274 $ 239,488 $ 244,772 1,673,547 1,897,597 2,126,725 2,360,999 2,600,487 1,317,780 1,419,583 1,525,644 1,636,165 1,751,360 (6,117) (6,117) (6,117) (6,117) (6,117) (280,000) (280,000) (280,000) (280,000) (280,000) $ 2,929,260 $ 3,260,191 $ 3,600,526 $ 3,950,535 $ 4,310,502 Financial Measurements Debt Coverage Ratio (DCR) Loan-to-Value Ratio (LVR) Capitalization Rate Based on Cost Capitalization Rate Based on Resale Price Gross Rent Monthly Multiplier (GRM) Gross Rent Yearly Multiplier (GRM) Value of Property Using this GRM 5.00 Break-Even Ratio Operating Expense Ratio % 33.8% 31.1% 28.4% 25.7% 22.11% 22.47% 22.84% 23.21% 23.59% 13.98% 13.79% 13.61% 13.43% 13.25% ,446,700 2,495,634 2,545,547 2,596,458 2,648, % 49.09% 48.98% 48.88% 48.79% 33.41% 33.65% 33.89% 34.13% 34.37% Cash-on-Cash Return with Equity Cash-on-Cash Return - Before Taxes 26.37% 25.11% 23.97% 22.94% 22.00% 78.31% 80.08% 81.88% 83.70% 85.55% 1/11/ :30 AM Cash Flow Analyzer

9 Rental Activity Analysis Year 16 Year 17 Year 18 Year 19 Year 20 Potential Rental Income Less: Vacancy & Credit Losses Effective Gross Income Less: Funded Reserves and/or Improvements Less: Operating Expenses Net Operating Income (NOI) $ 540,271 $ 551,076 $ 562,098 $ 573,340 $ 584,807 (27,014) (27,554) (28,105) (28,667) (29,240) $ 513,257 $ 523,523 $ 533,993 $ 544,673 $ 555, (177,646) (182,489) (187,468) (192,586) (197,847) $ 335,612 $ 341,034 $ 346,525 $ 352,087 $ 357,719 Less: Annual Debt Service CASH FLOW Before Taxes (85,487) (85,487) (85,487) (85,487) (85,487) $ 250,124 $ 255,546 $ 261,038 $ 266,600 $ 272,232 Property Resale Analysis Projected Sales Price Less: Selling Expenses Adjusted Projected Sales Price $ 2,567,530 $ 2,644,556 $ 2,723,893 $ 2,805,610 $ 2,889,778 (102,701) (105,782) (108,956) (112,224) (115,591) $ 2,464,829 $ 2,538,774 $ 2,614,937 $ 2,693,385 $ 2,774,187 Less: Mortgage(s) Balance Payoff SALE PROCEEDS Before Taxes (593,378) (542,098) (487,656) (429,855) (368,490) $ 1,871,452 $ 1,996,676 $ 2,127,282 $ 2,263,530 $ 2,405,697 Cash Position Cash Generated in Current Year Cash Generated in Previous Years Cash Generated from Property Sale Cash Inflow (Outflow) from Refinancing Original Initial Investment Total Potential CASH Generated $ 250,124 $ 255,546 $ 261,038 $ 266,600 $ 272,232 2,845,259 3,095,383 3,350,929 3,611,967 3,878,567 1,871,452 1,996,676 2,127,282 2,263,530 2,405,697 (6,117) (6,117) (6,117) (6,117) (6,117) (280,000) (280,000) (280,000) (280,000) (280,000) $ 4,680,718 $ 5,061,488 $ 5,453,132 $ 5,855,980 $ 6,270,378 Financial Measurements Debt Coverage Ratio (DCR) Loan-to-Value Ratio (LVR) Capitalization Rate Based on Cost Capitalization Rate Based on Resale Price Gross Rent Monthly Multiplier (GRM) Gross Rent Yearly Multiplier (GRM) Value of Property Using this GRM 5.00 Break-Even Ratio Operating Expense Ratio % 20.5% 17.9% 15.3% 12.8% 23.97% 24.36% 24.75% 25.15% 25.55% 13.07% 12.90% 12.72% 12.55% 12.38% ,701,355 2,755,382 2,810,490 2,866,700 2,924, % 48.63% 48.56% 48.50% 48.45% 34.61% 34.86% 35.11% 35.36% 35.61% Cash-on-Cash Return with Equity Cash-on-Cash Return - Before Taxes 21.14% 20.35% 19.61% 18.94% 18.31% 87.42% 89.32% 91.23% 93.18% 95.15% 1/11/ :30 AM Cash Flow Analyzer

10 Expense Description Annual Amount Annual Increase Per Unit Per Sq Ft % of % of Expenses Revenue Accounting Advertising Association Fees Cleaning Insurance Landscaping Maintenance Management Fee Pest Control Professional Fees Repairs Supplies Property Taxes Trash Removal Gas Telephone Miscellaneous 2, % % 0.7% 2, % % 0.7% % % 0.2% 2, % % 0.7% 2, % % 0.8% 2, % % 0.9% 15, % % 5.1% 27, % 9.5% 2, % % 0.7% 3, % % 1.2% 15, % % 5.1% 5, % % 1.7% 20, % % 7.0% 3, % % 1.1% 1, % % 0.7% % % 0.1% 5, % % 1.7% Total Annual Operating Expenses $ 110,588 $ 1,382 1, % 37.7%

11 Annual Property Operating Data Year 1 Sq Ft Per Unit Year 2 Sq Ft Per Unit Year 3 Sq Ft Per Unit Year 4 Sq Ft Per Unit Year 5 Sq Ft Per Unit Potential Rental Income $ 308, $ 348, $ 406, $ 426, $ 434, Less: Vacancy & Credit Losses (15,430) (17,400) (20,340) (21,300) (21,726) Effective Gross Income $ 293, $ 330, $ 386, $ 404, $ 412, Operating Expenses Accounting 2, , , , , Advertising 2, , , , , Association Fees Cleaning 2, , , , , Insurance 2, , , , , Landscaping 2, , , , , Maintenance 15, , , , , Management Fee 27, , , , , Pest Control 2, , , , , Professional Fees 3, , , , , Repairs 15, , , , , Supplies 5, , , , , Property Taxes 20, , , , , Trash Removal 3, , , , , Gas 1, , , , , Telephone Miscellaneous 5, , , , , Total Operating Expenses $ 110, $ 116, $ 124, $ 128, $ 132, Less: Funded Reserves and/or Improvements 55, , , Net Operating Income (NOI) $ 127, $ 193, $ 251, $ 275, $ 280, Less: Annual Debt Service (110,607) (110,607) (110,607) (85,487) (85,487) Cash Flow Before Taxes $ 16, $ 83, $ 141, $ 190, $ 194, Cash Flow Analyzer are.com

12 Annual Property Operating Data Year 6 Sq Ft Per Unit Year 7 Sq Ft Per Unit Year 8 Sq Ft Per Unit Year 9 Sq Ft Per Unit Year 10 Sq Ft Per Unit Potential Rental Income Less: Vacancy & Credit Losses Effective Gross Income $ 443, $ 452, $ 461, $ 470, $ 479, (22,161) (22,604) (23,056) (23,517) (23,987) $ 421, $ 429, $ 438, $ 446, $ 455, Operating Expenses Accounting Advertising Association Fees Cleaning Insurance Landscaping Maintenance Management Fee Pest Control Professional Fees Repairs Supplies Property Taxes Trash Removal Gas Telephone Miscellaneous Total Operating Expenses 2, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , $ 135, $ 139, $ 143, $ 147, $ 151, Less: Funded Reserves and/or Improvements Net Operating Income (NOI) $ 285, $ 289, $ 294, $ 299, $ 304, Less: Annual Debt Service Cash Flow Before Taxes (85,487) (85,487) (85,487) (85,487) (85,487) $ 199, $ 204, $ 209, $ 214, $ 219, Cash Flow Analyzer are.com

13 Annual Property Operating Data Year 11 Sq Ft Per Unit Year 12 Sq Ft Per Unit Year 13 Sq Ft Per Unit Year 14 Sq Ft Per Unit Year 15 Sq Ft Per Unit Potential Rental Income Less: Vacancy & Credit Losses Effective Gross Income $ 489, $ 499, $ 509, $ 519, $ 529, (24,467) (24,956) (25,455) (25,965) (26,484) $ 464, $ 474, $ 483, $ 493, $ 503, Operating Expenses Accounting Advertising Association Fees Cleaning Insurance Landscaping Maintenance Management Fee Pest Control Professional Fees Repairs Supplies Property Taxes Trash Removal Gas Telephone Miscellaneous Total Operating Expenses 2, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , $ 155, $ 159, $ 163, $ 168, $ 172, Less: Funded Reserves and/or Improvements Net Operating Income (NOI) $ 309, $ 314, $ 319, $ 324, $ 330, Less: Annual Debt Service Cash Flow Before Taxes (85,487) (85,487) (85,487) (85,487) (85,487) $ 224, $ 229, $ 234, $ 239, $ 244, Cash Flow Analyzer are.com

14 Annual Property Operating Data Year 16 Sq Ft Per Unit Year 17 Sq Ft Per Unit Year 18 Sq Ft Per Unit Year 19 Sq Ft Per Unit Year 20 Sq Ft Per Unit Potential Rental Income Less: Vacancy & Credit Losses Effective Gross Income $ 540, $ 551, $ 562, $ 573, $ 584, (27,014) (27,554) (28,105) (28,667) (29,240) $ 513, $ 523, $ 533, $ 544, $ 555, Operating Expenses Accounting Advertising Association Fees Cleaning Insurance Landscaping Maintenance Management Fee Pest Control Professional Fees Repairs Supplies Property Taxes Trash Removal Gas Telephone Miscellaneous Total Operating Expenses 3, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , $ 177, $ 182, $ 187, $ 192, $ 197, Less: Funded Reserves and/or Improvements Net Operating Income (NOI) $ 335, $ 341, $ 346, $ 352, $ 357, Less: Annual Debt Service Cash Flow Before Taxes (85,487) (85,487) (85,487) (85,487) (85,487) $ 250, $ 255, $ 261, $ 266, $ 272, Cash Flow Analyzer are.com

15 Cash Flow After Taxes Cash Flow Before Taxes $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $ Time Net Operating Debt Cash Flow Incomes Cash Flow MIP Payments Period Income Service Before Tax Taxes After Tax Int Investment $ (280,000) $ (280,000) Year 1 127,582 - (110,607) 16,975-16,975 Year 2 193,982 - (110,607) 83,375-83,375 Year 3 251,991 - (110,607) 141, ,384 Year 4 275,867 - (85,487) 190, ,380 Year 5 280,479 - (85,487) 194, ,992 Year 6 285,157 - (85,487) 199, ,670 Year 7 289,900 - (85,487) 204, ,413 Year 8 294,709 - (85,487) 209, ,222 Year 9 299,585 - (85,487) 214, ,097 Year ,527 - (85,487) 219, ,040 Year ,537 - (85,487) 224, ,050 Year ,615 - (85,487) 229, ,128 Year ,761 - (85,487) 234, ,274 Year ,976 - (85,487) 239, ,488 Year ,259 - (85,487) 244, ,772 Year ,612 - (85,487) 250, ,124 Year ,034 - (85,487) 255, ,546 Year ,525 - (85,487) 261, ,038 Year ,087 - (85,487) 266, ,600 Year ,719 - (85,487) 272, , Cash Flow Analyzer

16 After Taxes Before Taxes % 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Time Initial Investment Cash Flow Cash on Cash Income Cash Flow Cash on Cash Period Adj for Refinance Before Taxes Before Taxes Taxes After Taxes After Taxes Year 1 $ 280,000 $ 16, % $ $ 16, % Year 2 280,000 83, % - 83, % Year 3 280, , % - 141, % Year 4 286, , % - 190, % Year 5 286, , % - 194, % Year 6 286, , % - 199, % Year 7 286, , % - 204, % Year 8 286, , % - 209, % Year 9 286, , % - 214, % Year , , % - 219, % Year , , % - 224, % Year , , % - 229, % Year , , % - 234, % Year , , % - 239, % Year , , % - 244, % Year , , % - 250, % Year , , % - 255, % Cash Flow Analyzer

17 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Time Net Operating Cap Rate on Cost Resale Period Income (NOI) $ 1,400,000 Value Year 1 $ 127, % $ 1,648,000 Year 2 193, % 1,697,440 Year 3 251, % 1,748,363 Year 4 275, % 1,800,814 Year 5 280, % 1,854,839 Year 6 285, % 1,910,484 Year 7 289, % 1,967,798 Year 8 294, % 2,026,832 Year 9 299, % 2,087,637 Year , % 2,150,266 Year , % 2,214,774 Year , % 2,281,217 Year , % 2,349,654 Year , % 2,420,144 Year , % 2,492,748 Year , % 2,567,530 Year , % 2,644,556 Year , % 2,723,893 Year , % 2,805,610 Year , % 2,889, Cash Flow Analyzer

18 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $ Time Projected Adj Projected Refi Proceeds Mortgage(s) Sale Proceeds Income Taxes Sale Proceeds Property Year / Year Period Resale Value Increase (if any) Balance Payoff Before Taxes From Sale After Taxes Equity Equity Increase Year 1 $ 1,582, % $ $ (1,098,206) $ 483,874 $ $ 483,874 $ 483,874 $ 203,874 Year 2 1,629, % - (1,074,602) 554, , ,940 71,066 Year 3 1,678, % - (1,049,040) 629, , ,389 74,449 Year 4 1,728, % (6,117) (1,019,370) 703, , ,294 73,905 Year 5 1,780, % (6,117) (994,365) 780, , ,163 76,869 Year 6 1,834, % (6,117) (967,818) 860, , ,130 79,967 Year 7 1,889, % (6,117) (939,633) 943, , ,337 83,207 Year 8 1,945, % (6,117) (909,709) 1,029,933-1,029,933 1,029,933 86,596 Year 9 2,004, % (6,117) (877,940) 1,120,074-1,120,074 1,120,074 90,142 Year 10 2,064, % (6,117) (844,212) 1,213,927-1,213,927 1,213,927 93,852 Year 11 2,126, % (6,117) (808,403) 1,311,663-1,311,663 1,311,663 97,736 Year 12 2,189, % (6,117) (770,386) 1,413,466-1,413,466 1,413, ,803 Year 13 2,255, % (6,117) (730,024) 1,519,527-1,519,527 1,519, ,061 Year 14 2,323, % (6,117) (687,173) 1,630,048-1,630,048 1,630, ,522 Year 15 2,393, % (6,117) (641,678) 1,745,243-1,745,243 1,745, ,195 Year 16 2,464, % (6,117) (593,378) 1,865,335-1,865,335 1,865, ,092 Year 17 2,538, % (6,117) (542,098) 1,990,559-1,990,559 1,990, ,224 Year 18 2,614, % (6,117) (487,656) 2,121,165-2,121,165 2,121, ,606 Year 19 2,693, % (6,117) (429,855) 2,257,413-2,257,413 2,257, ,248 Year 20 2,774, % (6,117) (368,490) 2,399,580-2,399,580 2,399, , Cash Flow Analyzer

19 Return on Equity (ROE) 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Required Return on Equity Time Period Rental Annual Change Annual Change Trapped Return on Hold Cash Flow in Equity in Net Worth Equity Equity (ROE) Sell 6.00% A B (A + B) Year 1 16, , , , % Hold After Year Year 2 83,375 71, , , % Hold 5 Year 3 141,384 74, , , % Hold Year 4 190,380 73, , , % Hold Year 5 194,992 76, , , % Hold Year 6 199,670 79, , , % Hold Year 7 204,413 83, , , % Hold Year 8 209,222 86, , , % Hold Year 9 214,097 90, ,239 1,036, % Hold Year ,040 93, ,892 1,126, % Hold Year ,050 97, ,786 1,220, % Hold Year , , ,931 1,317, % Hold Year , , ,335 1,419, % Hold Year , , ,010 1,525, % Hold Year , , ,966 1,636, % Hold Year , , ,216 1,751, % Hold Year , , ,771 1,871, % Hold Year , , ,644 1,996, % Hold Year , , ,848 2,127, % Hold Year , , ,398 2,263, % Hold Cash Flow Analyzer are.com

20 BreakEven Occupancy BreakEven Occupancy with Cash on Cash Requirment % 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Cash on Cash Time Period Potential Operating, Debt, Occupancy BreakEven Max Vacancy BreakEven Max Vacancy Requiremen Rental Income Reserv e Expenses Rate (Existing) Occupancy RateBreakEven RateOccupancy RateBreakEven Rate t 6.00% w/ Cash on Cash w/ Cash on Cash Year 1 308,600 (276,195) 95.00% 89.50% 10.50% 94.94% 5.06% Year 2 348,000 (247,225) 95.00% 71.04% 28.96% 75.87% 24.13% Year 3 406,800 (245,076) 95.00% 60.24% 39.76% 64.37% 35.63% Year 4 426,000 (214,320) 95.00% 50.31% 49.69% 54.25% 45.75% Year 5 434,520 (217,802) 95.00% 50.12% 49.88% 53.99% 46.01% Year 6 443,210 (221,380) 95.00% 49.95% 50.05% 53.74% 46.26% Year 7 452,075 (225,058) 95.00% 49.78% 50.22% 53.50% 46.50% Year 8 461,116 (228,839) 95.00% 49.63% 50.37% 53.27% 46.73% Year 9 470,338 (232,724) 95.00% 49.48% 50.52% 53.05% 46.95% Year ,745 (236,718) 95.00% 49.34% 50.66% 52.84% 47.16% Year ,340 (240,823) 95.00% 49.21% 50.79% 52.65% 47.35% Year ,127 (245,043) 95.00% 49.09% 50.91% 52.46% 47.54% Year ,109 (249,380) 95.00% 48.98% 51.02% 52.28% 47.72% Year ,292 (253,839) 95.00% 48.88% 51.12% 52.12% 47.88% Year ,677 (258,422) 95.00% 48.79% 51.21% 51.96% 48.04% Year ,271 (263,133) 95.00% 48.70% 51.30% 51.81% 48.19% Year ,076 (267,976) 95.00% 48.63% 51.37% 51.68% 48.32% Year ,098 (272,955) 95.00% 48.56% 51.44% 51.55% 48.45% Year ,340 (278,073) 95.00% 48.50% 51.50% 51.43% 48.57% Year ,807 (283,335) 95.00% 48.45% 51.55% 51.32% 48.68% Cash Flow Analyzer

21 CRES Corp International, llc CRES Corp International, llc 1228 E 7th Ave 0 Tampa, Fl benny@crescorpllc.com CRES Corp International, LLC (CCI) is a Commercial Real Estate and Financng Company. CCI provides for their Clients the means to obtain property and funding for their various Real Estate and Business projects to include: -Commercial Development Projects -Commercial Acquisitions -Refinance/Take Out Loans -Business Start-ups and Expansions Through their strong Network of Financiers, CCI introduces their Clients to business relationships that get their Projects launched and helps their businesses to expand. : -Property Acquisition Funding -100% Construction-to Perm -85% 2.25% Interest Rate Construction Bond Funding -Equity Partnerships/Joint Ventures -EB-5 Foreign Investment Funds CCI introduces their Clients to Investment and Business opportunities: -Hotels -Apartments -Multi-Family -Medical Facilities -ALF -Strip Centers/Malls -Office Buildings/Complex -Business Opportunities CCI also assist their Clients in Investments in Construction and Development Projects.

22 Terms & Definitions Net Operating Income (NOI) is a property s gross rental income reduced by all expenses except for loan payments, income taxes, mortgage insurance premium (MIP) payments and sometimes funded reserves. Debt Coverage Ratio (DCR) is a property s net operating income divided by the amount of debt payments. Lenders use this calculation to determine the remaining operating cash flow after the debt payments. Loan-to-Value Ratio (LTV) is the outstanding debt divided by the value of the property. This ratio is used to determine the amount of leverage and property equity. The debt balance can be the beginning or end-of-year balance. The property value used can be the contract price or the fair market value at the end of the year. Capitalization Rate (Cap Rate) is the net operating income (NOI) divided by either the property s contract purchase price or its fair market value. Cash-on-Cash Return is the net cash flow divided it by the initial investment (down payment). The calculation does not take into account the time value of money or change in the property s equity. Cash-on-Cash Return with Equity Build-up modifies the cash-on-cash return calculation by adding the property s net change in equity for that year to the numerator and adding all previously generated equity to the denominator of the cash-on-cash return ratio. The calculation calculates the return on the property equity, i.e. the return on the cash that is tied up in the property. Net Present Value (NPV) converts future dollars into present-day dollars by discounting (reducing) the future cash flow of a property by a given rate or percentage. The initial investment (down payment) is subtracted from the discounted dollars to derive the NPV. A positive NPV means that the property will generate a higher return than the given rate or percentage used to calculate the NPV amount. Gross Rent Multiplier (GRM) is a property s fair market value divided by its gross rental income. Mortgage Insurance Premium (MIP) Payments are insurance premiums charged by a lender to protect that lender against loss from a mortgager's default. The rates are charged on the balance of the loan and may be paid annually, monthly, or in some combination of the two (split premiums). Internal Rate-of-Return (IRR) is the most widely used method of valuing a property s annual cash flow stream. Since a property s cash flow is earned in the future, those future dollars must be converted to present-day dollars. The IRR calculation discounts (reduces) the property s future cash flow at a rate (i.e. percentage) so that the sum of all cash flow for a specified time period is equal to the initial investment. The rate or percentage needed to do that is the IRR. In other words, IRR is the discount rate at which Net Present Value (NPV) is zero. Modified Internal Rate-of-Return (MIRR) modifies the IRR to avoid the drawbacks of the traditional IRR. The IRR implicitly assumes that all cash flow is either reinvested or discounted at the computed IRR rate. In reality, a property s cash flow probably will not be reinvested at the computed IRR rate, but rather earn zero or a small amount of interest. The MIRR eliminates the reinvestment assumption by utilizing user stipulated reinvestment and borrowing rates. benny@crescorpllc.com CRES Corp International, llc 1228 E 7th Ave 0 Tampa, Fl 33605