Aha roll up and prospectus

A ffordable
H ousing
A cquisitions,LLC
S p e c i a l i z i n g i ninAsset Backed Investments
Specializing Asset Backed Investments

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A cquisitions,LLC
S p e c ializing in A s s e t B a c k e d I n v e s t m e n t s

AFFORDABLE
Housing Acquisitions
A ffordable
H ousing Specializing in Asset Backed Investments
A cquisitions,LLC
Specializing in Asse t B a c k e d I n v e s t m e n t s

Loan Request

Amount requested:
$500,000

Borrower:
Affordable Housing Acquisitions LLC

Purpose:
To facilitate a “rollup” of six currently controlled properties into a new fund to ultimately be-
come a publicly traded Mobile Home Park REIT

Use of Funds:
To pay off mortgages and exercise options on properties operated under lease/option agreements.
Specifically:
Payoff mortgage on The Glen at Hickory MHP $80,000
Payoff Mortgage on Suburban MHP $150,000
Exercise option on 1/3 Travelers Rest MHP $75,000
Exercise option on The Glen at Forest City $55,000
Acquisitions $140,000

TOTAL $500,000
Collateral:
First Position on Suburban, value $450,000
First position on Hickory, value $125,000
First Position on Forest City, value $330,000
First position on 1 of 3 parks Traveler’s Rest, value $125,000
Second position on remaining ++
First or second position on acquisition ++

TOTAL $1,030,000+

LTV:
40% +/-

Recourse:
As many of our investors are qualified pension plans, we cannot do recourse beyond the entity,
thus the low LTV

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S p e c i a l i z i n g i n Asset Backed Investments

Table of Contents

I. A.H.A Affordable Housing Acquisitions
Why Invest with Affordable Housing Acquisitions . ......................................................1
Affordable Housing Acquisitions Officers . ....................................................................2

II. Mobile Home Park Rollup / Proposed Publicly Traded Corporation
Synopsis of Mobile Home Park Rollup and Proposed Publicly Traded Corporation . ....4
Pro Forma Financial Data.................................................................................................7

III. Affordable Housing Acquisitions Currently Controlled Properties

Location Map....................................................................................................................8
Blytheville Partners LLC..................................................................................................9
The Glen at Forest City . .................................................................................................15
Traveler’s Rest...................................................................................................................22
The Glen at Grover..........................................................................................................27
Cherry Mountain..............................................................................................................34
Glen at Hickory................................................................................................................39

IV. Mobile Home Park Investing
The Basics of Mobile Home Park Investing ....................................................................46
Why Invest in Mobile Home Parks .................................................................................49
Why Inflation will be Great for Manufactured Home Community Owners ..................51

V. America’s Housing Imbalance
Special Focus - America’s Housing Imbalance . ..............................................................53
America’s Housing Imbalance: Out of Balance. ..............................................................54
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S p e c i a l i z i n g i n A s s e t B a c k ed I n v e s t m e n t s

I.
A.H.A.
Affordable Housing
Acquisitions

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WHY Affordable Housing Acquisitions, LLC?
“Win” “Win” Scenario

• A Capital starved economy has produced an increasing number of properties with advantageous
prices, terms, and covenants. “Mom and Pop” mobile home park owners have few, if any, exit strate-
gies
• Owners of the parks cash needs are satisfied by capital from AHA, and the remaining cost is lever-
aged by the property itself.
• This creates an exit strategy for the park owner and opportunities for AHA to diversily and expand
in the current “buyers market.”

Strategic Partnerships & Infrastructure

• Years of independent affordable housing fund and park management has forged strategic partnerships
with trailer park brokers, servicers, and movers.
• Management teams are centralized and duties, templates, and day to day operations are in place to
handle future acquisitions.

Asset Backed Investment/ Immediate Return

• Typically real estate investments require large capital contributions, AHA allows investors to own an
asset backed direct property interest
• Our principal investment strategy optimizes value through multiples on cash flow and liquidation of
assets while providing increased flexibility for shareholders.
• Every investor enjoys the security of having their capital contribution backed by a tangible asset.
• Most investments take years to come to fruition, AHA investment opportunities start yielding re-
turns to investors immediately.

1

Our Due Diligence

• AHA has decades of experience in buying properties. The due diligence we do on them prior to
purchase is all important. Buying existing, income producing properties is a much easier evalua-
tion task than most new construction projects, business acquisitions, or marketing plans. Unlike
those ventures, we have existing data - often years of it - to determine revenues and costs. We have
extensive due diligence checklists to assure that we are on the mark on our financial projections.

• The more difficult part of our due diligence process involves the intangibles: what’s happening in
the area, the strength of the rental market, and the political risk. It is in these areas that our experi-
ence becomes all important

• Regarding area analysis, we now have a surfeit of data available via the internet. We use that, of
course, but we go beyond that and interview city planners, development authorities, and local busi-
ness people.

• Regarding the rental market, our task becomes easier. Because we are in the affordable housing
sector, we know there is always excess demand. Nevertheless we digest the data, speak with local
property managers and make our determination.

• The political risk is perhaps the most difficult to assess. Mobile home parks are subject to a myriad
of regulation that can sometimes make life difficult. Municipalities are constantly enacting new
ordinances and rules. This is one of the reasons we prefer the American Southeast, where mobile
home parks flourish and are a very accepted housing alternative. We judge the risk by speaking with
the authorities who regulate us. We not only find what the current situation is, but we determine
their attitudes toward mobile home parks and assess their future plans. The political risk is, in our
case, the most difficult to assess, but it is also one of the major factors that make for our success. In
the case of nearly all of our parks, it would be extremely difficult, if not impossible, for anyone to
build a new one nearby. We are”grandfathered in” to an existing monopoly in most of our locations.

• All of these factors are taken into account before we close on a purchase, during the inspection pe-
riod. In this phenomenal “buyer’s market,” a property must shine on all factors to make it through
our due diligence process.

Valuation and Exit Strategy

• Maturity of AHA and the inception of our principal investment strategy, the “reverse merger” will
begin when the fund meets ten parks under controlled management (currently six parks in AHA
control outlined below).
• Our principal investment strategy optimizes value through multiples on cash flow and liquidation of
assets while providing increased flexibility for shareholders.
• Mobile Home REITs trade for 20x cash flow on public markets. Incrementally increasing the size of
our fund compounds cash flows, value, and maximizes shareholders IRR through economies of scale.

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Affordable Housing Acquisitions Officers
A Highly Motivated Team with Expertise in Affordable Housing, Real Estate
Management and Operations, Investing, and Appraisals
Dan Kiely, Chairman
Real Property and Law • Affordable Housing Specialist

• Extensive background in affordable housing and real property, public company formation and manage-
ment with over 35 years’ experience
• Stanford Law Graduate
• Primary expertise in transaction negotiation and facilitation involving affordable housing
• Co-founder of A.H.A Affordable Housing Acquisitions

Jason May, President
Real Property and Equity Investment • Capital Investment Relations

• Extensive background in management of hedge funds involving real property and equities
• Financial planning background
• Primary expertise in investments in equities, REIT’s, and collateralized lending
Eric Tomko, Vice President
Marketing • Investor Relations

• Wide-ranging background in marketing • Primary expertise in marketing and investor relations
• Experienced Marketing VP for BSN • Co-founder of A.H.A Affordable Housing Acquisitions
Todd Neary, Vice President
Real Property • Commercial Valuation

• Financing and real estate background
• Extensive background in providing consulting service for commercial, industrial and residential
assets
• Overseen individual and portfolio assignments throughout the United States, specializing in
multi-family assets

Adam Shepherd, Vice President
Real Property and Marketing • Business Developement

• Comprehensive background in affordable housing and real property
• Real Estate tactician and business development professional
• Primary expertise in real estate implementation and investment strategies, and marketing

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II.
Mobile Home
Park Rollup
Proposed Publicly
Traded Corporation

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Synopsis of Mobile Home Park Rollup
Proposed Publicly Traded Corporation
Affordable Housing Acquisitions goal is the establishment of a fund created by a “rollups” of mobile home
parks into a public vehicle. The objective is to create a mobile home park real estate investment trust
(“REIT”) taking advantage of the greater multiples and other benefits of the public vehicle as well as
economies of scale.

The Opportunity: The current economic environment makes this unusual opportunity possible and our
infrastructure makes it work. The factors at work are: (1) the capital starved economy resulting in an ex-
treme “buyer’s market,” (2) the lack of exit strategies for “mom and pop” mobile home park owners, (3) our
existing management infrastructure, and (4) our knowledge and experience in the field.

Objective:
The goal is to create a publicly traded U.S. company, well funded, with liquid shares, owning several mo-
bile home parks and postured to acquire many more parks. The plan takes advantage of two facts: (1) a
great number of “mom and pop” mobile home parks are currently available on great terms and excellent
prices due to the economic downturn and the capital starved economy and (2) in a public REIT, the value
of the equity is much greater. The purpose is to allow for greater value (due to better multiples on cash
flow), capital creation, liquidity and flexibility for the shareholders (the current MHP owners). The process
shall be to complete a “reverse merger” with an existing but dormant public company. We currently have
six parks under management and control.

Mobile Home REITs are trading in the markets at multiples of 20 time cash flow and are quite popular
in today’s frightened investor market because they are hard assets with great yields. Value is created by
achieving the greater multiples. “Rolling up” several mobile home parks with 12%+ capitalization rates
(i.e. a multiple of 8 times cash flow) should result in a stock equity value much greater than the value of
the equity as individual parks.

Phase one: Convert AHA into a private “REIT” (90 days)

• Finalize business plan (including determination of which properties are included)
• Determine values of initial properties to be purchased or infused
• Determine start-up costs and develop a budget
• Build ProForma financials for the resulting company
• Complete the private REIT phase

4

Phase Two:
Complete the reverse merger and become publicly trading (12 to 24 months)

• Identify target public vehicle (one has been preliminarily selected)
• Negotiate terms of the reverse merger
• Audit preparation
• Engage necessary professionals
• Determine Board members, officers, and necessary personnel (minimal)
• Complete the reverse merger
• Work with market makers, do “road shows” and create the market for shares
• In the 18 month to 36 month time frame thereafter, complete a PIPE (private investment – public
equity) placement for $2,000,000, to “grow” the new REIT.

Result:

1. The former partners will, at the completion of phase two, own shares in the public company giving
them (a) a better exit strategy at higher prices; (b) a higher multiple on income; and (c) more flex-
ibility in ownership, exit strategy, estate planning and retirement;
2. The investor will have a secured position and in phase two will reap the rewards of the higher multiple
through conversion of preferred stock
3. The resulting company has more credibility and more flexibility in raising capital;
4. The cash needs for the near term are met;
5. The infrastructure is in place for growth; and
6. The company is poised to expand and create more value

Investment Assets:

1. Currently owned and targeted properties (see attached)
2. We are currently in discussions with other mobile home park owners who are interested in rolling their
parks into the REIT
3. Other

Infrastructure:

As these parks are already up, running, and producing cash flow, the infrastructure is in place to accom-
modate many more parks without additional corporate structure.
The return on additional mobile homes currently being placed in the parks is 35%+/-. It costs about
$12,000 to $15,000 total to buy a mobile home (used), move it to the site, skirt it, hook it up to utilities,
and renovate it. That home will generate $450 per month in revenue with few expenses. The annual re-
turn per added home will be in the $5000 range.

Time Table:

We would like to complete phase one in the next 90 days and phase two in the 12 to 24 lowest month time
frame, and the PIPE offering 6 to 12 months after phase two. We are at the mercy of a number of profes-
sionals and agencies so it is difficult to accurately project time lines.
5

Scalability

If, after a short “proof of concept” period we can perhaps get $2,000,000 from a PIPE fund or elsewhere, and
we should be able to buy, using low leverage (seller take-back), $4,000,000 in properties. If we can use stock
as part of the purchases, capital can be stretched even further with no additional leverage. Sellers of such
parks are desperate for exit strategies and are forced to be creative. The equity within the entity of each
additional property, purchased at 8 multiples, becomes worth much more at the higher multiple (20+/-).
Thus, as we infuse more properties, we continue to move the value of the stock up with only modest lever-
age (risk) and the next round of financing should be of a much greater magnitude.

Investor Requirements / Security

This proposal presupposes a new corporation to which all of our existing investors (about 5) transfer their
interests. We are in the process of getting valuations on the properties. I believe the total value of the
equity will be $900,000 +/-. Whatever that valuation shows, each investor will be issued one share of com-
mon stock at $10 per share for each $10 of value.

Result:

The objective is to end up with a structure that makes the whole greater than the sum of its parts. This
should be achievable due to the conditions existing in the current economy, and the premium placed on
publicly traded stock.

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AHA Rollup Properties
Proforma Financial Data
Rollup 3 2012 ROI/value
Value (1) Mtg/option(2) equity cash flow (3) % return
Travelers Rest 400,000 250,000 150,000 35,000
Grover 215,000 149,000 66,000 11,500
Forest City 330,000 55,000 275,000 46,000
Cherry Mntn 175,000 125,000 50,000 12,000
Hickory 125,000 80,000 45,000 19,500
Blytheville 450,000 150,000 300,000 45,000

Total 1,695,000 785,000 886,000 134,000 15.1%

(1) Either POV or anticipated POV valuation

(2) Payoff amount of Mortgage or exercise price of option

(3) Anticipated cash flow after investment, completion of current renovation,
and option/mortgage payoffs

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III.
Affordable Housing
Acquisitions
Currently Controlled Properties

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A cquisitions,LLC



Suburban Mobile Home Park


Blytheville, AR
FOR FURTHER INFORMATION,
PLEASE CONTACT

Dan Kiely
(561) 779 0175

120 S. OLIVE AVE, SUITE 400
45 Site
WEST PALM BEACH, FL 33401 USA
Mobile Home
Community

Great Expansion
Potential





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Suburban Mobile Home Park Blytheville, AR
45 Lot Mobile Home Community

Park Particulars:

• 45 sites, less than half full - huge upside 5.46 acres

• Great cash flow

• Partially Tax Deferred

• Professional management with presence in the area

• City utilities paid by tenants

• Recession resistant

• Value creation through curing deficiencies, upgrading property, cosmetic renovation

• Multiple exit strategies

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Property Address: 1102 South Ruddle Road, Blytheville, AR

Description: Suburban Mobile Home Park in Blytheville, Arkansas has 45 devel-
oped pad sites on approximately 5.46 acres. Of the 45 sites, 7 are oc-
cupied by tenant owned mobile homes and 14 of the sites are occu-
pied by park owned mobile homes rented for $350 to $450 per month.
Twenty of the pads are vacant; four pads have repairable mobile homes.
Each space is supplied with city water as well as natural gas and city
sewer. Garbage service is provided by the city.

The property is located in a working class neighborhood and is conve-
nient to the local downtown as well as the highway. A tree lined paved
road and gutter system currently serves the residential homes.

This project has been owned by us for a few years. This property fits
History: our acquisition model as it was purchased at an excellent cost from
an owner who over time had neglected the park. Rent collection was
not enforced and few rules and regulations were in place. We have
made significant improvements to the park and renovated some exist-
ing homes. We have taken no distributions from the project, electing
instead to use cash flow for rehabbing existing homes in the park. Due
to its ease of operation, we have done little to take the park to the next
level.

The project is located in Blytheville, AR which is located in the NE
Location: portion of the state and is the seat for county offices. The property is
located in Mississippi county, the #1 county in the US for both cotton
and steel production according to the Chamber of Commerce.

Shade trees, city water, septic, natural gas, security lights, paved
Amenities: road.

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Market: There is a strong demand for rental units in Blytheville. The city and
the county have created initiatives attracting new industry supporting
a broad and stable economic base. In addition to Arkansas North East
College, widespread agribusiness and two plants owned by steel man-
ufacturer Nucor, a new aircraft maintenance operation has recently
opened at the long ago vacated Air Force base located near Blytheville.
The company is investing $20 million and will employ 440 new em-
ployees. This is in addition to the existing 450 employees already em-
ployed at the facility.

Business Plan: The highest and best use for this property is as affordable housing rental
units for young couples, families and retirees. As such, the plan is to
develop the community by enhancing the landscaping, renovating the
park owned units, supplying mobile homes for vacant sites, and curing
remaining deficiencies.

Exit Strategy: Multiple exit strategies exist regarding this property:
1. Exchange. We may find a tax-deferred exchange at some appropri-
ate time to realize appreciated value of the homes.
3. Financing. We may finance the homes at an appropriate time to re-
capture some or all of the equity and continue to receive cash flow.
4. Other. Other exit strategies, such as re-syndication, or inclusion in
a later “roll-up” strategy also exist.

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Itemized Expense Projections
Property: Suburban Mobile Home Park
4/2/12

Anticipated POV $450,000.00 Rents (monthly)
Mortgage $150,000 Pad sites $175
Equity $ 300,000.00 Mobile Homes $350-$450

ITEM
Rents at 100% (of current occupancy) 66,000.00
Vacancy Rate 10%
Less Vacancies: $6,100
Effective Gross Income: $59,400
Onsite Management Cost $6,100
Insurance $865
Property Taxes $1,650
Accounting & Legal $1,500
Landscaping $900
Repairs and Maintenance $1,000
Mobile Home tax $750
Utilities water/septic maint. $1,200
Trash $2,400
Miscellaneous $1,000
TOTAL OPERATING EXPENSES $17,265
Net Operating Income $42,135 $53,245
Mortgage Payments $11,500
Cash on Cash POV Return $30,632 10.2%

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Suburban Mobile Home Park
45 Lot Mobile Home Community Park
Suburban Mobile Home Blytheville,Blytheville, AR
AR
Property Location
Property Location

Park Map

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The Glen at Forest City


 Lancaster Drive

Forest City, NC 



   
 














24 Pad

Mobile Home Park

and 9 Existing


Mobile Homes




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Lancaster Drive
Forest City, NC

Park Particulars

• 24 Mobile Home
Sites

• 10+ acres

• 2 Private Wells –
one operational
and one dormant

• Nearest sizable
housing to the
new ”clean” coal
plant and
Facebook Data
Center.

• Grandfathered in:
There will be no
new mobile home
parks in Forest
City

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Lancaster Drive
Forest City, NC
Property Address: 140 Lancaster Drive, Forest City, NC

Number of Lots: 24 sites, most infrastructure in place Currently 3 rented
lots, 4 renovated MHs and 2 MHs under renovation.

Utilities: 2 Wells and Electric. 2 Mobile Homes Per Septic
Tank. Private Trash service. Tenants pay all utilities
except water and trash.

1. Exercise option
Business Plan
2. Continue to develop parks

Ownership: Park is under a Lease/Option park $55,000 at option
exercise Rent is $320 per mo.

Management in Currently managed by our staff in the area with all
Place mgt infrastructure in place

Condition: These parks were neglected for many years by an owner who died four
years ago and had Alzheimer’s prior to that. Phase one, now complete,
landscaped the park, removed trailer hulks, provided new entryway,
graded for new drainage, bought and renovated 9 mobile homes, insti-
tuted rules and regulations, provided tight management .

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Lancaster Drive
Forest City, NC
Property Forest City Commons is a 24 space mobile home park. The total park
Description: sits on 10+ acres and is located in Forest City, North Carolina. The as-
set manager has several properties in the area, is experienced there and
has the necessary staff in place.

Area Information:
Forest City is located in Rutherford County. Forest City is
centrally located between Ashville and Charlotte, North
Carolina.

We own and have owned multiple other successful
apartment and mobile home projects in the area. There
continues to be a strong demand for affordable housing in
the area. Current holdings continuously run close to 95%
occupancy.

The local housing office reports that they receive three
applications for each affordable housing unit. In the
Carolinas, mobile homes are considered the mainstay of
the affordable housing industry. Tenants are hard working
blue-collar individuals and retirees.

The local housing assistance office pays $400+/- per
month on their assistance program for a two bedrooms
home and $450+ for a three bedroom. Rentals for mobile
home pad sites range from $125 to $200.

Area Information: Rutherford County Chamber of Commerce
http://www.rutherfordcoc.org/
Town of Forest City
http://www.townofforestcity.com/
Rutherford Economic Development Commission
http://www.rutherfordncedc.com/
Local Newspaper – The Digital Courier
http://www.thedigitalcourier.com/

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Property: The Glen at Forest City
10 5 11

POV Value $330,000.00 Rents (monthly)
Option Exercise $55,000 Pad sites $450
Equity $ 275,000.00 Doublewide $550
Singlewide $425-$450
ITEM
Rents at 100% (of current occupancy) 63,000.00
Vacancy Rate 10%
Less Vacancies: $6,300
Effective Gross Income: $56,700
Onsite Management Cost $3,000
Insurance $865
Accounting & Legal $500
Landscaping $900
Repairs and Maintenance $1000
Mobile Home tax $750
Utilities water/septic maint. $1200
Trash (tenant responsible for own) $0
Miscellaneous $1000
TOTAL OPERATING EXPENSES $10,865
Net Operating Income $45,835
Cash on Cash Return 13.6%

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
Lancaster Drive  
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Forest City, NC
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Lancaster Drive
Forest City, NC

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Traveler’s Rest Mobile Home Parks
Traveler’s Rest, South Carolina

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Three
Mobile Home
Parks

20 Total Pads
and Homes

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Property Highlights

• 20 Mobile Home sites in three parks

• 20 1999 Fleetwood Mobile homes

• Upscale suburb of Greenville, SC, one of the country’s most vibrant markets

• City water, sewer

• Grandfathered in: There will be no new mobile home parks in Traveler’s Rest

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Property Addresses: 612 Main Street, 116 Tubbs Mountain road, 110 ½ Tubbs Mountain
Road, Traveler’s Rest, South Carolina

Number of Lots: 20, All infrastructure in place
16 Homes renovated and rented, 4 remaining and under renovation

Utilities: City water and sewer Private Trash service.

Business Plan: 1. Park is under a Lease/Option park for $2,000 per month with an
option to purchase for $250,000
2. Complete all renovation and fill park
3. Exercise option
4. Keep for passive income or sell for capital gains

Price Per Space: $7,000
Price Per Mobile $7,000
Home:

Management in Currently managed by our staff in the area with all mgt infrastructure
Place in place

Condition These parks were neglected and had only 12 rented when we took
possession. We have filled units as soon as renovated and have com-
pleted 5. Revenues have increased from $3000 +/- to $6000 +

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Property White Pines Park sits on Main Street and fronts on the famous Swamp
Description: Rabbit Trail, a biking and hiking trail currently being renovated with
government funds. It is 6 pad sites and 6 mobile homes and is very near
the city center.

Tubbs Mountain 1 and 2 are a total of 14 pad sites and 14 mobile homes
in a nice location near the city center.

Area Information: Traveler’s Rest is an upscale suburb adjoining Greenville, South Caro-
lina centrally located on I-85 between Atlanta Georgia and Charlotte,
North Carolina. Greenville is home to BMW North America, Michelin
Tire, and other manufacturers. The Spartanburg / Greenville corridor is
one of the most exciting in the country.

We own and have owned multiple other successful apartment and mo-
bile home projects in the area. There continues to be a strong demand
for affordable housing in the area. Current holdings continuously run
close to 95% occupancy.

The local housing office reports that they receive three applications
for each affordable housing unit. In the Carolinas, mobile homes are
considered the mainstay of the affordable housing industry. Tenants are
hard working blue-collar individuals and retirees.

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Property: Traveler’s Rest

Anticipated POV $400,000 Rent (monthly)
Option Exercise $250,000 $375
Equity $150,000

ITEM After Option Exercise
Rents as is 67,500.00 $90,000
Vacancy Rate 10% 10%
Less Vacancies: $6,750 $9,000
Effective Gross Income: $60,750 $81,000
Mortgage Passthrough (lease) $24,000 --------
Management Fee $6,075 $8,100
Insurance $4,303 $4,500
Business License $305 $305
Corporate Filings $125 $125
Property Taxes $1,912 $1,912
Accounting & Legal $500 $1,500
Landscaping $1,980 $2,500
Repairs and Maintenance $1,350 $2,500
150 Mobile Home tax $3,126 $3,126
Utilities water/sewer $3,900 $5,000
Trash $1,500 $1,500
Miscellaneous $2,000 $2,000
TOTAL OPERATING EXPENSES $27,076 $33,068
Cash on Cash Return 36.95% 15.46%

26

The Glen at Grover Grover, North Carolina
Mobile Home Community R D A B L E
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Friends and Family
The Glen at Grover Investment
Grover, North Carolina
The Glen at Grover Mobile

Home Park

FOR FURTHER INFORMATION,
PLEASE CONTACT

Dan kiely
(561) 779 0175

325 Clematis Street, Suite 333
WEST PALM BEACH, FL 33401

10 Potential Pad sites, 7
Existing Pads and
Mobile Homes and a
Brick house
10 Potential
7 Existing Pads and

Mobile Homes and a
Brick House

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The Glen at Grover - Mobile Home Community

Property Highlights
• Located in the strong market between our existing base in Rutherford County, NC and
our expanding presence in the economically exciting Greenville/Spartanburg Corridor
of SC.

• 4.67 acres (low density: over ½ acre per dwelling)

• Mature, occupied park in nice town, pretty setting, long term tenants – not a turn-
around or value enhancement project – simply bought right.


• Recession resistant affordable housing and postured to take advantage of inflation

• Grandfathered in and expandable, but no current plan to do so given the excellent
current return

• Great cash flow

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Property Address: 113 McGinnis Drive, Grover, Cleveland County, North Carolina

Description: The Glen at Grover is a small mobile home park in Grover, NC lo-
cated on the North Carolina / South Carolina border. The park in-
cludes a brick home and 7 existing pads each with a good quality mo-
bile home owned by the park. It sits on approximately 4.67 acres. The
tenants are long term. Rents are $350 per month and $400 per month
for the house. The rents are probably 15% below market. The county
informs us that there could be three additional pads sites, but given
the current high projected income, expansion would not significantly
improve the cash on cash return. Each tenant pays his or her own utili-
ties including water. The tenants are responsible for their own trash
and mowing. The owner has little expense beyond insurance, taxes,
and R&M. A curved paved road currently serves the residential homes.

History: This project was never listed, was ”off-grid,” and came to us through
one of our managers. It is owned by his father-in-law who is in failing
health. This property is different from our normal “value-creation”
model, but fits our acquisition criteria due to its unusually high return
and the excellent purchase terms negotiated with the seller. The park is
well run and extremely well maintained. There is expansion potential
as noted above, but it is not in our immediate plans. Some value can be
created by raising rents.

The property is located in a working class neighborhood and is conve-
Location:
nient to the local downtown. Grover is actually a feeder community
for several larger towns nearby and is in some respects a “high rent
district” with nicer homes and four very, very nice mobile home parks –
all full.

Mature border vegetation, shade trees, city water and sewer, nice
Amenities:
expansive lawns, security lights, paved road.

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Market: Nearby Rutherford County is our base in the Carolinas and has for
several years proved to be an excellent rental market. Affordable hous-
ing is in short supply in Grover as it is nearly everywhere. Cleveland
County (where this park is) adjoins Rutherford County. Shelby, NC,
(10 miles away) is the County Seat and in addition to its own eco-
nomic base, is a bedroom community for Charlotte. On the Rutherford
County line, perhaps 15 miles from the property, sits the NC data cen-
ter and the new Facebook data center. To the South, the Greenville/
Spartanburg Corridor hosts a great variety of manufacturing including
BMW and Michelin. Spartanburg is also the international headquar-
ters for Denny’s Restaurants.

Business Plan: The highest and best use for this property is already in place. It is
affordable housing rental units for young couples, families and
retirees. In contrast to our usual project, we need to do very little.

Exit Strategy: Multiple exit strategies exist regarding this property and we have five
years to contemplate them:
1. Sale of the Property. I believe that in four to five years we can sell
the property for a multiple of our equity. If we get strong inflation,
as many predict, it may be a high multiple. If we get runaway infla-
tion, it is probably our best hedge.
ate time to realize appreciated value of the property.
3. Financing. If lenders re-enter the marketplace, that will in itself
increase the value. We may refinance the property at an appropriate
time to recapture some or all of the equity and continue to receive
cash flow.
4. On the downside, even if we walk away from the project (highly
unlikely) we will get our investment back and will have made an
annual return in excess of 10% per year, if it continues to perform
as is.
5. Other exit strategies, such as re-syndication, also exist.

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Property: The Glen at Grover
6 16 11

Value $215,000.00
Mortgage $149,000
Equity $66,000

ITEM Current 15% Increase 2013
Rents at 100% 34,800.00 40,000.00
Onsite Management Fee $3,132 $3,600
Insurance $900 $900
Property Taxes $800 $800
Accounting & Legal $500 $500
Landscaping $500 $500
Repairs and Maintenance $2,400 $2,400
Mobile Home tax $525 $525
Utilities water/sewer $0 $0
Overhead Contribution $1,200 $1,200
Travel/Miscellaneous $2,000 $2,000

Debt Service $12,720 $12,270
Cash on Cash Return $6,643 $11,305
Cash on Value Return 10.1% 17%

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Grover, North Carolina Grover, North
The Glen at Grover
Mobile Home Community Carolina

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The Glen at Grover Grover, North
Mobile Home Community Carolina

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Cherry Mountain Townhomes
Forest City, North Carolina

Five
Townhouse
Apartments

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Property Highlights

• Located in our existing base in Rutherford County, NC, in Forest City, home to the
new Facebook data center.

• Clever purchase arrangement resulting from the current market conditions. It is a lease
/option leaving the present financing in place with a RECORDED purchase option for
five years at the loan balance at the time of exercise.

• “Purchased” from a cash poor seller who couldn’t refurbish 3 of the 5 units and was
running a monthly cash deficit.

• All units renovated, in service and rented as of 3/2012. Project completed.


• Recession resistant affordable housing and postured to take advantage of inflation.

• Purchased at less than $40 per square foot; reproduction cost $120+ per foot plus land
cost.

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Property Address: 239 Cherry Mountain Street, Forest City, North Carolina

Description: Cherry Mountain Apartments consist of five sizable townhouse units
located in Forest City, NC, where we have management and staff in
place for several other properties. Each unit is 1200 square feet consist-
ing of two bedrooms and one and one half baths. All units are rent-
ed at $450 per month. Tenants pay utilities including water. There is
more than ample paved parking on the site. The construction is brick
on a concrete slab. The roof is in good condition. Tax assessment is
$213,800.

The project was “purchased” using a lease – option wherein the lessee
(us) net leases the property paying all related expenses. We have a five
year option to purchase at the mortgage balance at the time of exercise.
The Seller gets 15% of the profit. For our protection, the option is re-
corded. This structure allows the present financing to remain in place
in this market where such financing is virtually impossible to find. We
will make “pass – through” payments for the mortgage, insurance and
property tax on a monthly basis.

The current mortgage balance is $134,820 equating to about $26,960
per unit. At the end of 5 years the balance will be $106,000 +/-, equat-
ing to about $21,200 per unit. In post – crash 2010, we sold four apart-
ment properties within 12 miles of this one for per unit sales prices
between $31,000 and $32,500. They were of less size and quality than
the subject. We are getting an excellent return on investment, some
tax shelter, the benefit of the amortization of the mortgage during the
holding period, cheap leverage, and a 5 year “free look” at the appreci-
ated value. To double our investment we will have to sell the property
for $163,000 or $32,600 per unit ($106,000 mortgage balance + 2 times
$27,000 investment less seller’s 15%).

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History: This project was not listed, was ”off-grid,” and came to us through
one of our realtor contacts who manages the property. This property is
creatively structured, but still fits our normal “valuecreation” model in
that by curing the minor deficiencies we have restored the economic
value to the property. The property is of solid masonry construction
and is built to last. Some value can be created by raising rents, but we
won’t do that precipitously.

Location: The property is located on a very pleasant street, in a nice
neighborhood and is convenient to the local downtown.

Amenities: Mature vegetation, shade trees, city water and sewer, expansive lawn,
security lights, paved street.
Market: Rutherford County is our base in the Carolinas and has for several years
proved to be an excellent rental market. Affordable housing is in short
supply as it is nearly everywhere. Nearby sits the NC data center and
the new Facebook data center under construction.

Business Plan: The highest and best use for this property is already in place. It is af-
fordable housing rental units for young couples, families and retirees.
We have refurbished and rented the units. We will also list the property
early, but I believe a sale is unlikely in the first two years.

Exit Strategy: Multiple exit strategies exist regarding this property and we have
five years to contemplate them:
1. Sale of the Property. I believe that in four to five years we can sell
the property for a multiple of our equity. If we get strong inflation,
as many predict, it may be a high multiple. If we get runaway infla-
tion, it is probably our best hedge.
increase the value of this property. We may refinance the property
at an appropriate time to recapture some or all of the equity and
continue to receive cash flow.
4. Other exit strategies, such as re-syndication, also exist.
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Property: Cherry Mountain Townhomes
6 16 11

Anticipated Valuation $175,000.00
Option Cost $125,000
Equity $50,000

ITEM Current 15% Increase 2013
Rents at 100% 27,000.00 31,000.00
Onsite Management Fee $2,430
Lease Payments 5,028
Insurance $1,327
Accounting & Legal $500
Landscaping $500
Repairs and Maintenance $2,400
Utilities water/sewer $0
Overhead Contribution $1,200
Travel/Miscellaneous $750

Cash on Equity Return 21% 27.8%

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Presents an A.H.A. Opportunity:
The Glen at Hickory
Hickory/Morganton, North Carolina
The Glen at Hickory
Hickory/ Morganton, North Carolina

For Further Information Please Contact:
DAN KIELY
(561) 779-0175
301 Clematis Street, Suite 3000
West Palm Beach, Florida 33401

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The Glen at Hickory
Property Highlights

• The Glen at Hickory is a mature, occupied park in pleasant town, with an attractive
setting, and boasts long term tenants – some nearly 30 years in the park.

• AHA sees this as a value enhancement project, but the park is operating at a good
return as it is.

• AHA has a professional management presence established in the area.

• Great cash flow, value creation and potential appreciation.

• Seller financing enhances the cash flow.

• The park is “grandfathered in,” to less stringent zoning and building regulations than
now exist, making it difficult for anyone to build new parks to compete.

• The park is expandable.

• The Glen at Hickory is a recession resistant affordable housing park and is poised to
take advantage of inflation should it materialize.

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The Glen at Hickory
Property Address: 3925 Martin Fishpond Road, Hickory, North Carolina. The park is
located in Burke County

Description: The Glen at Hickory is a quaint mobile home park near Hickory and
Morganton, North Carolina. The park has 17 existing pads. Nine of the
pads are rented and two mobile homes are in the process of being moved
in, set up, and renovated for rental. The park sits on approxi-
mately 3.37 acres. The tenants are long term. Rents for mobile
homes are projected at $425 per month – commensurate with our ex-
perienced rental rates in the area. Pad rents are $120 per month and
are being raised to $150 per month. In January 2013 they will be raised
to market rates of $180 per month. Each tenant pays his or her own
utilities except for water. The owner has little expense
beyond insurance, taxes, and R&M. A curved road currently serves the
residential homes.

History: This project was ”off-grid” and was purchased out of one of the owners
personal bankruptcy (caused by other businesses). AHA’s strategic
partnerships allowed our managers to seize this opportunity. This
property fits our acquisition criteria due to its high return and the
excellent purchase terms negotiated with the seller. Understanding the
potential investment opportunity in this park AHA management
took over management four months ago, and through AHA’s proven
systems has since turned around a once run-down park into a
producing park. What makes the property so appealing is the
expansion potential as noted above, and the value that can be created
by raising rents and adding mobile homes. AHA recognizes the
sensitive rent situation and will not raise them precipitously. Initially
AHA will make a few minor improvements –plantings, instituting
stringent park rules, cosmetic improvements, removing “eyesores” and
adding three mobile homes to be owned by the park.

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The Glen at Hickory
Location: The property is located in a working class neighborhood and is con-
venient to both Morganton and Hickory downtowns. Located in the
strong affordable housing market in the next county north of AHA’s
existing presence in Rutherford County, North Carolina, the Glen at
Hickory is located far enough off I-40 to be rustic and charming; yet
close enough to highway 40 to allow for ease of access to bigger cities
such as Asheville and Charlotte, located just 60 minutes away. The
park is within minutes’ drive to either Hickory or Morganton job mar-
kets, shopping, and city amenities.

Area: Hickory is located in the North Carolina foothills and is the 162nd
largest urban area in the U.S. The city is growing steadily and the last
census data placed the Hickory Metropolitan area as the 4th largest
in North Carolina with 342,000 people. Several new businesses are
coming to the area, including a Google processing center and a Tar-
get Corp. distribution center. Hickory is home to many manufactur-
ers of lumber, furniture, fiber optic cable and pressure sensitive tape.
Forty percent of the fiber optic cable in the WORLD is made in the
Hickory area. Each year only ten cities in the US are designated “All-
America City.” Hickory has won the designation three times. Hickory
also boasts a minor league baseball stadium, Hickory Crawdads, and
Lenoir-Rhyne College.

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The Glen at Hickory
Amenities: Mature border vegetation, shade trees, city water, nice expansive
lawns, security lights, curved road.

Market: Nearby Rutherford County is our base in the Carolinas, and has for
several years proved to be an excellent rental market. Affordable
housing is in short supply. Because of the close proximity to Interstate
40 Hickory has become a focal point for large corporations to set up
shop; such as Google and Target, ultimately creating hundreds and
thousands of jobs for local residents.

Business Plan: The highest and best use for this property is already in place. It is
affordable housing rental units for young couples, families and retirees
Value enhancement is possible through expansion of the park
and the addition of more mobile homes.

Exit Strategy: Multiple exit strategies exist regarding this property and we have five
years to contemplate them:
1. Sale of the Property. AHA believes that in four to five years we can
sell the property for a multiple of our equity. If we get strong infla-
tion, as many predict, it may be a high multiple. If we get runaway
inflation, it is probably our best hedge.
increase the value. We may refinance the property at an appropriate
time to recapture some or all of the equity and continue to receive
cash flow.
4. Rolling the property up into a larger fund. Other exit strategies,
such as re-syndication, also exist.

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Property: The Glen at Hickory

Value $125,000 Rent (monthly)
Mortgage Payoff $80,000 Pad Rent $150
Equity $45,000 Pad Rent 2013 ($180)
2012: 10 Pads & 1 MH
2013: 10 Pads & 3 MH’s

ITEM 2,012.00 2013
Rents at 100% 27,000.00 33,300.00
Vacancy Rate 7% 7%
Management Fee $2,511 $3,097
Insurance $890 $890
Property Taxes $517 $517
Accounting & Legal $250 $250
Landscaping $400 $600
Repairs and Maintenance $250 $500
150 Mobile Home tax $75 $225
Utilities water/sewer $1,560 $1,650
Trash $2,220 $2,220
Overhead Contribution $600 $600
Travel $600 $600
Miscellaneous $200 $300
Cash Return $15,037 $19,520
Cash on Cash 12% 15.6%

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Map

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IV.
Mobile Home Park
Investing

Aha roll up and prospectus

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