DEL RIO RENTAL MANUFACTURED HOUSING COMMUNITY AND COTTAGES 433 S. Seventh Street, Modesto, CA. Manufactured Housing Community For Sale 4X6 PICTURE

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1 DEL RIO RENTAL MANUFACTURED HOUSING COMMUNITY AND COTTAGES 433 S. Seventh Street, Modesto, CA Manufactured Housing Community For Sale 4X6 PICTURE $2,900,000 Sales Price $580,000 Down Payment (20%) 29% Cash Flow, 13.4% Cap Rate 106 Mobile Home Spaces + 31 Cottages Rental Homes Huge Rental Upside, Great Leverage For Further Information Contact: John Grant Park Brokerage Inc Petenwell Road San Diego, CA (800) Information contained herein has been obtained from the owner of the property or from other sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it.

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3 RENTAL MANUFACTURED HOUSING COMMUNITY Del Rio Mobile Home Park 106 Mobile Home Spaces + 31 Cottage Apartments Rental Mobile Homes + Store + 2 Billboards + Office + Payphone Price $2,900,000 Option Consideration or Down Payment $580,000 (20%) Address/City 433 S. Seventh Street, Modesto, Ca Est. Vac. & Expense % See Proforma and Actuals Attached Capitalization Rate 13.4% County Stanislaus Age Older Est. Spendable Return 29% State California Loans Not Assumable Total Return Parcel Size 9 Acres No. Spaces 137 Listing Salesman John Grant (800) Map-Page Zoning Office San Diego DESCRIPTION AND TENANT INFORMATION: CASH FLOW! CASH FLOW! CASH FLOW! Excellent opportunity to continue to upgrade and enjoy the tremendous cash flow of improving rental community in the unincorporated area of Modesto. 106 mobile home spaces with 101 mostly 2 and 3 bedroom rental homes with rents of $460-$ cottage apartments with 14 studios, 16 one bedrooms, and 1 two bedroom. Most have private yards and rent for $400-$520. Rents for both mobile homes and cottages use to includes gas and electric utilities but gas and electric submeters have been installed and gas usage was charged as of July 1 st and electric usage will be charged as of September 1 st. Owner has reduced rents $35 for gas passthru and will reduce rents another $35 for electric passthru. However with tenants responsible for gas and electric conservation, the net income will improve. Well water and septic sewer service with city utility services nearby. Large office, leased store at $800/month, two billboards at combined $171/month, payphone at $165/month, and laundry room. 38 doublewides, 8 singlewides with expandos, and most spaces can accommodate doublewides. Original permit allows expansion for five new RV sites. No mobile home rent control in the County of Stanislaus. Most mobile home parks in Modest are near 100% occupancy. Owner has completed significant upgrades to the park in the last two years (see attached list) and buyer can continue to upgrade park and rentals and enjoy the huge cash flow. Buyer can also sell off mobile homes and convert to traditional mobile home park. Current owner has sold eleven rental homes through lease/option contracts. Park has approximately one-half acre of vacant frontage for possible storage. Property is zoned industrial and ripe for redevelopment. The property is one-half mile from two Highway 99 exits and one mile from downtown Modesto. Right across the river from the park the City of Modesto is in the process of developing the 520 acre Tuolumne River Regional Park. Modesto enjoying large increase in jobs and population from companies and people moving out of Bay area because of very expensive housing prices-2% Modesto apartment vacancy rate. Owner lives in Chicago and is too far away to effectively manage. 29% CASH FLOW YEAR ONE!!! EXCELLENT UPSIDE, GREAT LEVERAGE, 3.65 X GROSS! TOTAL ESTIMATED NET INCOME BEFORE DEBT SERVICE See attached spread sheet with 2000 and year to date 2001 actuals and Broker proforma $389,591 LOAN INFORMATION TOTAL ANNUAL PRIN. $221,049 & INTEREST PAYMENT Letter of intent from lender at 60% loan to value or $1,740,000 at an 8% adjustable rate with payments fully amortized over 20 years, monthly payment $14,554.06, Seller will carry secondary financing of $580,000 at 8% interest only for 5 years, monthly payment $3, EST. ANNUAL PRE-TAX $168,542 CASH FLOW (SPENDABLE) The information contained herein has either been given to us by the owner or the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it. Vacancy factors used herein are an arbitrary percentage used only as an example. It does not necessarily relate to actual vacancy, if any. The value of this investment is dependent upon these estimates and assumptions made above, as well as the investment income, the tax bracket and other factors which your tax advisor and/or legal counsel should evaluate. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME, EXPENSE, AND ALL OTHER INFORMATION CONTAINED HEREIN.s: users/grant/de

4 DEL RIO MOBILE HOME PARK Proforma % Revenue REVENUES Gross Rental Receipts 884,410 May rent roll with rent reduction for submetering of utilities (current rent roll is % $78.4k/mo) add: laundry 9, % Last twelve months actual is $9,000 (5 washers, 6 dryers) add: pet reg fees 1, % Last twelve months is $1,875 ($75 registration fee per animal) add: late fee 10, % Jan-June 01 actual is $5,100 ($20 fee after the 5th) add: maintenance fees 21, % Jan-June 01 actual is $10,800 (fees charged to damage units) less: vacancy -44, % Vacancy rate for last twelve months approximately 5% less: bad debt -88, % Just started background checks and lease to own program, should go down TOTAL REVENUE 794, % EXPENSES Payroll 140,000 Should decrease with more home sales and tenant screening (includes capital 34.58% improvements Supplies, R+M 75, % Estimated at $150/space/year, $450/rental unit/year Professional Management 31, % Four percent Reserve for improvements 27, % $200 per unit per year Trash 19, % $1,600/month when not replacing old homes Taxes and Licenses 32, % Estimate 1.1% of the purchase price plus licensing fees Appliances 18, % Should go down with more homes on contract Eviction Fee 16, % Should decrease with more home sales and tenant screening Advertising 10, % Last twelve months $10,200 Insurance 10, % Actual for flood insurance (as required by lender) and $3m general liability Utilities (Common Areas) 8, % Estimate of net expense after submetering for gas and electric Septic System Pumping 3, % Last six months is $1,500 (Recently installed 7 dry wells Only legal costs incurred in last two years dealt with mortgage, sale, revisions of Accounting and Legal 4, % documents Last six months is $1,500, includes operating dump truck for curbside trash pickup Auto 3, % Telephone 2, % Last twelve months is $2,000 (includes internet service) Office Supplies 1, % Last twelve months is $1,900 Water Testing 1, % Last twelve months is $300 Equipment Rental % Last twelve months is $300 Postage and Delivery % Last twelve months is $400 TOTAL EXPENSES 404, % NET INCOME 389, %

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8 impvmnts Improvements Initial Cost (est) Benefits Removed 13 small homes and replaced 12 w/doublewides 96,000 Higher rent, improve look of park, lower turnover Upgraded interior of homes as they turned over 50,000 Better residents, lower turnover, higher rents Installed electric sub-meters (50% unfinished as of 8/1/01) 35,000 Sub-meter tenant utilities (leads to 35-50% reduction in use) Painted exterior of all units 22,000 Curb appeal and consistency Sub-metered gas (15% unfinished) 20,000 Much lower gas bill, sub-meter tenant utilities Re-sealed all mobile home roofs 13,000 Less damage, happier residents, lower heating bills Replaced majority of coolers and numerous appliances 10,000 More efficient, fewer probs down the road Installed laundry facility (equip, drywell, building inpvmnts) 9,000 Convenience for residents, new amenity Trimmed every tree in park (was deferred for 15+ years) 7,500 Less roof damage, better looking park Purchased numerous new tools and equipment 6,000 Do more in-house (keys, septic, trimming, thread pipes ), one-time cost Installed seven new dry-wells 5,000 Greatly reduce pumping costs Removed all toungues and skirted front of homes 5,000 Curb appeal, more parking area Replaced and enlarged storm drain pipes 4,500 Less flooding of roads during big downpours Fenced in storage areas and water tanks 4,000 Less theft, curb appeal, reduce risk of a problem Put island in at entrance to park 3,500 Curb appeal, safer entrance Created new legal forms for MH sale & Occupancy 3,000 Protect on evictions and from potential lawsuits; forms for sale of MHs Covered all septic holes with manholes (was sheetmetal) 2,250 Reduce risk of a lawsuit Moved office to larger and better location 2,250 Improved first impression, easier to operate, better for residents Computerized office 2,000 More accurate accounting and oversight Moved coolers to side of homes (from front of home) 2,000 Curb appeal Removed 3/4 of front fences 2,000 Curb appeal, wont have to replace fencning in future, cleaner yards Began doing background checks on applicants - Better residents, lower turnover, lower bad debt Cut down newspaper ads by 30% - Run each ad every-other day Hired a cheaper eviciton service - Lowered cost per eviction by 30% Installed 110 water heater blankets - Lower energy usage Instituted pet fees and late fees - Increased revenue, fewer pets and late payments More stringent on evicting problem residents - Has lead to a quiter commuinity, improved reputation of park Moved to curb-side pick-up of garbage (cans ) - Cleaner park, open area in back can be used for 5 RV sites, no more dumping Organized and added storage areas - More space, easier to find what you need Renegotiated property tax bill (reduced 40%) - Will lower future expenses considerably if purchase done as lease option Re-numbered addresses around entire park - Easier for employees, applicants etc to find homes TOTAL CAPITAL EXPENSES 304,000 Page 1

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