Two 55+ MHC’s, 120+/- SitesVillages-Brooksville, FL Region

Offering #5951612

Two Beautiful Senior Parks within 5 Minutes of Each Other

Both Located on Major Thoroughfares

One Clean 4 Star Community with Amenities on WWTP and Well

One Clean 3 Star Community on Municipal Water and Sewer

Upside via 10% Lease-up and Rent Inc. of the 3 Star Community

Presented by

James CookDirect: 386-623-4623 • Email: james@mhrvexperts.com • 485 Brickell Ave. • Suite 2308 • Miami, FL 33131

Transaction Overview

Purchase Overview

Property Type Mobile Home Community

No. Of Units 120+/- Mobile Home pads

Price Per Unit $35,000-$40,000

Income Per Unit $4,000-$4,500

Expenses Per Unit ($1,500-$2,000)

Acreage: Park 1&2 =17-20 Acres

Hook-Up Electricity - Water & Sewer

Utilities: Amenities

Water : Municipal and Well Clubhouse

Sewer : Municipal and WWTP Storage

Trash: Curbside Heated Pool

Elec.: 150 amp Shuffleboard Court

Financial Measurements

Property Overview

Package Assumptions

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. 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.

Loan Information – Quote By Chris San Jose – Head of Lending (2.10.17)

Discussion / Notes

The subject offering is made up of two quality, 55+, clean MHC’swithin 5 minutes of each other. The parks are roughly the samesize, and are financed and operated together as one unit.

The first is a clean, 3 star community located on a busy highwaywith 90% SW’s, smaller lots, and few amenities. It features aclubhouse & shuffleboard court and is connected to municipalwater and sewer. The second is a very clean, 4 star community alsolocated on a busy highway with 100% DW’s. It features a fullamenity package including a covered/heated pool, clubhouse, andshuffleboard courts and is on a WWTP/Well.

The older community required a fair amount of home turn-overand remodeling by owner to stay full. Roughly only half of thehome sale revenue in this community is reported in the companybooks, which disproportionately drives up R&M without the offsetfrom sales. The newer community has strong home values and agreat value proposition, which keeps residents in place and tradinghomes peer-to-peer.

Between the two properties, there are roughly 10% vacant andvirgin sites, which creates ample upside. Rents are reasonable forthe 4 star community, and there is room for rents to grow in the 3star community. The properties make great passive investmentswith existing management in place.

Income Growth Rate 3% Per Year

Expense Growth Rate 2% Per Year

Capitalization Rate (Resale) 6.50%

Financing Agency & Conduit.

Purchase Price $4,300,000

Mortgage $3,010,000

Down Payment / Investment $1,290,000

% Of Asking Price % of Cost Interest Rate Term Amort. Payment(Monthly)

Down Payment: $1,290,000 30.00% 30.00%

Total Loan Balance: $3,010,000 70.00% 70.00% 5.0% 8 30 $16,158

Interest Only* 5.0% 2 I/O $12,542

Year 1 Year 3 Year 5

Effective Gross Income 504,966.00 534,871.56 567,445.23

Less: Operating Expenses (222,754.31) (245,227.74) (255,134.94)

Net Operating Income 282,211.69 289,643.81 312,310.29

Less: Annual Debt Service (150,500.00) (193,899.97) (193,899.97)

CASH FLOW Before Taxes 131,711.69 95,743.84 118,410.32

Debt Coverage Ratio 1.88 1.49 1.61

Loan to Value Ratio 69.3% 66.6% 59.7%

Capitalization Rate Based on Cost 6.56% 6.74% 7.26%

Capitalization Rate Based on Resale Price 6.50% 6.50% 6.50%

Gross Rent Yearly Multiplier 7.68 7.63 7.76

Operating Expenses Ratio 44.1% 45.8% 45.0%

Cash on Cash Return - Before Taxes 10.21% 7.42% 9.18%

Internal Rate of Return (IRR) - Before Taxes

3.35% 10.84% 14.89%

Property Photos

Street View 1

Street View 3Street View – Park 2

Street View – Park 1

Offering #5951612

Street View 2 – Park 1 Street View 2 – Park 2

Cash Flow Analysis & Comments

Rental Activity Analysis Year 1 Year 2 Year 3 Year 4 Year 5

Rental Income 560,088.00 566,640.00 583,639.20 601,148.38 619,182.83

Other Income 6,564.00 6,760.92 6,963.75 7,172.66 7,387.84

Yale's Additions

Rental Increase 6,552.00 14,928.11 15,375.96 15,837.23 16,312.35

Less: Vacancy & Collections (68,238.00) (69,036.26) (71,107.35) (73,240.57) (75,437.78)

Effective Gross Income 504,966.00 519,292.77 534,871.56 550,917.70 567,445.23

Less: Operating Expenses (222,754.31) (240,419.36) (245,227.74) (250,132.30) (255,134.94)

Net Operating Income 282,211.69 278,873.42 289,643.81 300,785.40 312,310.29

Less: Annual Debt Service (150,500.00) (150,500.00) (193,899.97) (193,899.97) (193,899.97)

CASH FLOW Before Taxes 131,711.69 128,373.42 95,743.84 106,885.43 118,410.32

Property Resale Analysis

Projected Sales Price 4,341,718.31 4,290,360.26 4,456,058.66 4,627,467.77 4,804,773.69

Less: Selling Expenses (130,251.55) (128,710.81) (133,681.76) (138,824.03) (144,143.21)

Adjusted Projected Sales Price 4,211,466.76 4,161,649.45 4,322,376.90 4,488,643.73 4,660,630.48

Less: Mortgage Balance Payoff (3,010,000.00) (3,010,000.00) (2,965,591.50) (2,918,910.98) (2,869,842.20)

SALE PROCEEDS Before Taxes 1,201,466.76 1,151,649.45 1,356,785.40 1,569,732.75 1,790,788.28

Cash Position

Cash Generated in Current Year 131,711.69 128,373.42 95,743.84 106,885.43 118,410.32

Cash Generated in Previous Years - 131,711.69 260,085.11 355,828.95 462,714.38

Cash Generated from Property Sale 1,201,466.76 1,151,649.45 1,356,785.40 1,569,732.75 1,790,788.28

Original Initial Investment (1,290,000.00) (1,290,000.00) (1,290,000.00) (1,290,000.00) (1,290,000.00)

Total Potential CASH Generated 43,178.45 121,734.56 422,614.35 742,447.13 1,081,912.98

Financial Measurements

Debt Coverage Ratio 1.88 1.85 1.49 1.55 1.61

Loan to Value Ratio 69.3% 70.2% 66.6% 63.1% 59.7%

Capitalization Rate Based on Cost 6.56% 6.49% 6.74% 7.00% 7.26%

Capitalization Rate Based on Resale Price 6.50% 6.50% 6.50% 6.50% 6.50%

Gross Rent Yearly Multiplier 7.68 7.57 7.63 7.70 7.76

Operating Expenses Ratio 44.1% 46.3% 45.8% 45.4% 45.0%

Cash on Cash Return - Before Taxes 10.21% 9.95% 7.42% 8.29% 9.18%

Internal Rate of Return (IRR) - Before Taxes 3.35% 4.85% 10.84% 13.54% 14.89%

Annual Property Operating Data2017 Per Unit % of Rev 2018 Per Unit % of Rev 2019 Per Unit % of Rev 2020 Per Unit % of Rev 2021 Per Unit % of Rev

IncomeRental Income 560,088.00 4,706.62 110.92% 566,640.00 4,761.68 109.12% 583,639.20 4,904.53 109.12% 601,148.38 4,761.68 109.12% 619,182.83 4,761.68 109.12%Other Income 6,564.00 55.16 1.30% 6,760.92 56.81 1.30% 6,963.75 58.52 1.30% 7,172.66 56.81 1.30% 7,387.84 56.81 1.30%

Yale's AdditionsRent Increase 6,552.00 55.06 1.30% 14,928.11 125.45 2.87% 15,375.96 129.21 2.87% 15,837.23 125.45 2.87% 16,312.35 125.45 2.87%Less: Vacancy & Collections (68,238.00) 4,549.20 -13.51% (69,036.26) 4,602.42 -13.29% (71,107.35) 4,740.49 -13.29% (73,240.57) 4,602.42 -13.29% (75,437.78) 4,602.42 -13.29%

Effective Gross Income 504,966.00 4,243.41 100.00% 519,292.77 4,363.80 100.00% 534,871.56 4,494.72 100.00% 550,917.70 4,363.80 100.00% 567,445.23 4,363.80 100.00%

Expenses 2017 Per Unit % of Rev 2018 Per Unit % of Rev 2019 Per Unit % of Rev 2020 Per Unit % of Rev 2021 Per Unit % of Rev

Advertising 500.00 4.20 0.10% 510.00 4.29 0.10% 520.20 4.37 0.10% 530.60 4.29 0.10% 541.22 4.29 0.10%

Bank Charges 400.00 3.36 0.08% 408.00 3.43 0.08% 416.16 3.50 0.08% 424.48 3.43 0.08% 432.97 3.43 0.08%Automobile Expense 1,500.00 12.61 0.30% 1,530.00 12.86 0.29% 1,560.60 13.11 0.29% 1,591.81 12.86 0.29% 1,623.65 12.86 0.29%Insurance 11,900.00 100.00 2.36% 12,138.00 102.00 2.34% 12,380.76 104.04 2.31% 12,628.38 102.00 2.34% 12,880.94 102.00 2.34%Alarm/Patrol - - 0.00% - - 0.00% - - 0.00% - - 0.00% - - 0.00%Legal & Professional Fees 6,000.00 50.42 1.19% 6,120.00 51.43 1.18% 6,242.40 52.46 1.17% 6,367.25 51.43 1.18% 6,494.59 51.43 1.18%Management Fees - - 0.00% - - 0.00% - - 0.00% - - 0.00% - - 0.00%Office Expense 1,500.00 12.61 0.30% 1,530.00 12.86 0.29% 1,560.60 13.11 0.29% 1,591.81 12.86 0.29% 1,623.65 12.86 0.29%Maintenance - Building & Grounds 30,500.00 6.04% 0.00% 0.00% 0.00% 0.00%License & Fees 4,000.00 33.61 0.79% 4,080.00 34.29 0.79% 4,161.60 34.97 0.78% 4,244.83 34.29 0.79% 4,329.73 34.29 0.79%Taxes Tangible - - 0.00% - - 0.00% - - 0.00% - - 0.00% - - 0.00%Real Estate Taxes 44,301.29 372.28 8.77% 45,187.32 379.73 8.70% 46,091.06 387.32 8.62% 47,012.88 379.73 8.70% 47,953.14 379.73 8.70%FICA 3,693.63 31.04 0.73% 3,767.50 31.66 0.73% 3,842.85 32.29 0.72% 3,919.71 31.66 0.73% 3,998.10 31.66 0.73%

FUTA 96.23 0.81 0.02% 98.15 0.82 0.02% 100.12 0.84 0.02% 102.12 0.82 0.02% 104.16 0.82 0.02%

SUTA 664.36 5.58 0.13% 677.65 5.69 0.13% 691.20 5.81 0.13% 705.02 5.69 0.13% 719.12 5.69 0.13%Electric 15,142.74 127.25 3.00% 15,445.59 129.79 2.97% 15,754.51 132.39 2.95% 16,069.60 129.79 2.97% 16,390.99 129.79 2.97%

Gas 293.86 2.47 0.06% 299.74 2.52 0.06% 305.73 2.57 0.06% 311.85 2.52 0.06% 318.08 2.52 0.06%Utilities City Water/Sewer/Trash 31,113.56 261.46 6.16% 31,735.83 266.69 6.11% 32,370.55 272.02 6.05% 33,017.96 266.69 6.11% 33,678.32 266.69 6.11%Utilities Well/WWTP 15,500.00 130.25 3.07% 15,810.00 132.86 3.04% 16,126.20 135.51 3.01% 16,448.72 132.86 3.04% 16,777.70 132.86 3.04%Telephone 1,500.00 12.61 0.30% 1,530.00 12.86 0.29% 1,560.60 13.11 0.29% 1,591.81 12.86 0.29% 1,623.65 12.86 0.29%Travel 1,000.00 8.40 0.20% 1,020.00 8.57 0.20% 1,040.40 8.74 0.19% 1,061.21 8.57 0.20% 1,082.43 8.57 0.20%Salaries & Wages 27,000.00 226.89 5.35% 27,540.00 231.43 5.30% 28,090.80 236.06 5.25% 28,652.62 231.43 5.30% 29,225.67 231.43 5.30%Reserves for Replacement 5,950.00 50.00 1.18% 6,069.00 51.00 1.17% 6,190.38 52.02 1.16% 6,314.19 51.00 1.17% 6,440.47 51.00 1.17%Management Fee 20,198.64 169.74 4.00% 20,602.61 173.13 3.97% 21,014.67 176.59 3.93% 21,434.96 173.13 3.97% 21,863.66 173.13 3.97%RE Tax Liability - - 0.00% 13,209.96 111.01 2.54% 13,474.16 113.23 2.52% 13,743.64 111.01 2.54% 14,018.52 111.01 2.54%

Total Expenses 222,754.31 1,871.88 44.11% 209,309.36 1,758.90 40.31% 213,495.54 1,794.08 39.92% 217,765.45 1,758.90 40.31% 222,120.76 1,758.90 40.31%

Net Operating Income 282,211.69 2,371.53 55.89% 309,983.42 2,604.90 59.69% 321,376.01 2,700.64 60.08% 333,152.25 2,604.90 59.69% 345,324.47 2,604.90 59.69%

Less: Annual Debt Service $150,500.00 1,264.71 29.80% $150,500.00 1,264.71 28.98% $193,899.97 1,629.41 36.25% $193,899.97 1,264.71 28.98% $193,899.97 1,264.71 28.98%

CASH FLOW Before Taxes 432,711.69 3,636.23 85.69% 460,483.42 3,869.61 88.68% 515,275.98 4,330.05 96.34% 527,052.22 3,869.61 88.68% 539,224.44 3,869.61 88.68%

Non-Disclosure Agreement

Gated Entry – East Side

Street View – Gravel Lot

Regarding property: Offering # 5951612

Our policy requires that we obtain this Non-Disclosure Agreement (the “Agreement”) before disclosing certain information aboutcertain real estate that may be available for sale or investment. This information must be kept confidential. In consideration of YaleRealty Advisors (“Yale”) and James Cook (or any party designated by James Cook) (the “Broker”) providing the information on suchreal estate which may be available for purchase or for sale (the “Potential Transaction”), I understand and agree:

1. (a) That any confidential or proprietary information (the “Confidential Information”) of the potential selling party (the “Seller”)provided is sensitive and confidential, and that its disclosure to others may be damaging to the Seller. I agree that upon the earlierof: (i) two (2) years from the date of this Agreement and (ii) the request of Broker, Yale or Seller, any Confidential Informationfurnished to me shall be either returned or destroyed, and I shall certify to such destruction.

(b) Not to disclose, for a period of two (2) years from the date I sign this Agreement, any Confidential Information regarding thePotential Transaction to any other person who has not also signed this Agreement or a joinder thereto, except to the extentnecessary to secure the advice and recommendations of my employees, officers, directors, members, managers, advisors, attorneys,accounts or financing sources (collectively, the “Representatives”) regarding the Potential Transaction. “Confidential Information,”as used in this Agreement, shall include the fact that the Potential Transaction is for sale or open to offers, and any other dataprovided. My Representatives shall abide by the terms of this Agreement, and I agree to be liable for any breach of the provisions ofthis Agreement by any of my Representatives.

(c) Not to contact the Seller or its Representatives, suppliers or customers except through the Broker. I shall present allcorrespondence, inquiries, offers to purchase and negotiations relating to the Potential Transaction directly to the Broker, and allsuch negotiations shall be conducted exclusively through the Broker. At such a time as a LOI or PSA is reached regarding thePotential Transaction, I agree to copy the Broker on all communication and negotiations related to the Potential Transaction.

2. That all information regarding the Potential Transaction is provided by the Seller or other sources and is not verified by the Brokeror Yale. The Broker and Yale have done their best to ensure the accuracy of said information, but the Broker and Yale make no,representation or warranty, express or implied, as to the accuracy of such information. I agree that the Broker and Yale are notresponsible for the accuracy of any other information I receive, and I agree to indemnify and hold the Broker, Yale, and each of theirRepresentatives harmless from any claims or damages which may occur by reason of the inaccuracy or incompleteness of anyinformation provided to me with respect to any Potential Transaction.

I acknowledge that I have received an exact copy of this Agreement and that I have read this Agreement carefully and fullyunderstand it.

X____________________________________________ Date _________________________Signature

_____________________________________________Print Name

Company:________________________Phone:_____________________Alt:___________________

Email:____________________________Fax:______________________

Sign, date, and send back to Agent: James Cook, Fax: 941-827-7977, Phone: 386-623-4623, Email: james@mhrvexperts.com

Or click on the following link for electronic signature: