Enclave At Crown Park Condominiums Lake Worth, Florida INVESTMENT OPPPORTUNITY

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1 Enclave At Crown Park Condominiums Lake Worth, Florida INVESTMENT OPPPORTUNITY CONTACTS Eddy Sua Principal, Broker Keith Miller Principal, Builder Mario Caprini Principal, Developer Real Estate Investments Project Highlights Capital Group has begun to invest in the repositioning of the 86 unit Enclave at Crown Park Condominiums. The condominiums are located within the Sunset Ridge Neighborhood of Lake Worth. This overlooked opportunity by the market place will enable the CGR Investments Team to obtain excellent returns both on leasing rates and the resale of the units. Currently we have purchased two units ready for renovations and will close shortly on 5 additional units. There are approximately 18 units targeted to stabilize this property and substantially increase the value of the condominiums though our repositioning efforts. This working class area is finally turning the corner from the last recession. Located east of I-95 in Lake Worth is experiencing average sales prices raging from $120 to $133 per square foot in the Sunset Ridge neighborhood where the property is located. The CGR Team plan is to stabilize the property, improve its appearance, and offer quality rentals at affordable prices which have been lacking in this area. Reducing the condo fees by having all the units pay their fair share. The units vary between 1 and 2 bedrooms and the units in question are located in various areas of the condo and are in various situations or state from full gut and redo to light fixup and releasing at market rate.

2 Here is the summary of the targeted units of phase 2 of acquisitions: Units # 46 and # 48 are owned by Claudia Hehner, one of the 3 board members, which once the transaction completed, we would work on getting Eddy Sua and Keith Miller on the board in order to keep implementing our plan. Regardless we will stay with the current Board for the next 2 months which is ample time to vote in what we need to move the most critical aspect of our plan forward. Claudia s units are 2 bedrooms and 1 bath units she is moving back to Germany and has agreed to sell us her units for $35,000 each. Both units are currently rented but we are setting aside $2,000 per unit for renovations. Units # 54 is owned free and clear by the Enclave condominium association. In order to receive an urgent need of capital influx, the board has agreed and voted to sell the 2 units, one of which is unit 54 to us, in order to finance urgent capital improvements and to fund the new position of a full time custodian on site. We have unit 54 under contract for $35,100 the unit will require $2,000 in renovations. Unit # 63 is owned by Nancy Barker we have this 2 bedroom unit under contract for $29,000 it only requires $2,000 in clean up and renovations. Unit # 49 is owned by Mr. Grivenot s who is presently delinquent with the condo association and possibly with the bank. We will use a short sale approach to this 2 bedroom acquisition. The owner owes a large amount to the condo association, we have this unit under contract for $20,000 requires $15,000 in renovations and currently negotiating a short sale with the lender. Our goal is to identify a financial partner to purchase renovate and rent the units. Once the market is peaking begin to sell off the units to maximize profitability. We expect to work in clusters of 5 to 10 units. The total needed for this phase of acquisitions and renovations is $177,100 or +/-54% present LTV or +/-36% Stabilized LTV Valuation $325,000 or $65,000 per unit for a 2/1 Revenue stream of $5,000 per month or $1,000 per unit Cap rate 8% Stabilized Valuation $487,500 Subject to change without notice, based on projections and availability, other condition apply. 2

3 Rental Market SUMMARY 2/1* Average Rental Rate 2/1 per month $1,000 Total Operating Costs $350 Cap Rate in 24 months 8% Projected Value using income approach $97,500 Cash flow ROI 20% Source Realtor.com Investment SUMMARY 2/1 Property Cost $25,000 Total Cost of Construction, soft cost $25,000 Anticipated Market Price in 24 months $97,500 Projected Profit $47,500 Projected Investor ROI 47.5% Annualized investor ROI (24Months) 23.75% Financing Request Acquisition and renovation line of credit of $50,000 per unit secured by first mortgage in clusters of 5 units. Interest rate Competitive 5% Guarantees limited personal Guarantees Term $250,000 yes 36 months MARKETPLACE STATISTICS 2/1 Value today of 1829 North A Street Unit 53 Lake Worth Fl Recent Transactions $65,000 Marketplace Average Price $40,000 Marketplace High Price $78,400 Marketplace Median Price $36,000 3 Marketplace Low Price $35,000 Source MLS & Tax Rolls 9/2015

4 Feel and Quality Expectations of Finished Units 4

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6 Enclave At Crown Park Condos Lake Worth, Florida Site Renovation work can include the following 6