A Neighborhood Revitalization Firm specializing in community stablization in the wake of the foreclosure crisis.

1. Housing Industry Outlook Creating New Opportunities with 21 st Century Solutions Vaughn D. Irons, CEO APD Solutions October 7, 2009

3. Who is APD Solutions?

5. For us it isn’t only important what we do… but also why we do it. Our Core Values

6. Community Development Consulting Acquisition and Asset Management Neighborhood Program Design and Oversight Sub-service Providers* Real Estate & Disposition Strategies Socially Responsible Investing What We Provide Urban & Neighborhood Planning Our Clients

7. Real Estate Market Performance

9. “ It is not the strongest species that survive, nor the most intelligent, but the ones most responsive to change.” Charles Darwin Old Views and Skills Won’t Work in the Future

11. Projections of Market Recovery

12. Foreclosed Properties Up to 40% of Transactions

13. 2010-2011 Price Forecast

14. Focus on Pre-2003 Purchasers

15. Considering The Shadow Inventory

16. Foreclosed Properties Create More Affordability Price to Income - Foreclosed

17. Affordability for Existing Homes Still a Challenge Price to Income - Existing

18. The Negative Equity Issue

19. Rising Home Inventory Levels have not been met with Rising Demand, as “Prime” Loan Underwriting Guidelines have tightened, excluding many borrowers from qualifying. Qualified Buyer Pools are Much Smaller Today homebuyers are being asked to qualify with 700 minimum credit scores, 5% down, sufficient reserves, 33/41 debt to income ratios, and stellar credit history. Yesterday homebuyers were being asked to qualify with 580-600 minimum credit scores, 0% down, no reserves, and 45 debt to income ratios.

20. 2009 Yet the Banks are only finding Buyers for roughly 10% of the unsold home inventory…

21. New Demographic Shifts Understanding Household Growth

23. Household Growth This Decade (2000-2010)

24. Educational Attainment Impacts Homeownership

26. CA Immigrant Growth

27. The Number vs. Percentage

28. Changes in Households Beyond 2010 Childless Households Dominate Growth

29. So What… Now What? How Can APDS Help?

30. Continuity of Responsibility Acquisition Asset Management Disposition Acquisition Disposition Asset Management Overall Program Design

31. Property Acquisition Services (BuySmart) Atlanta Sample Map For Waterfall A.M. Pre Portfolio Acquisition 45 units

32. Sample of APD Mapping and GIS Capabilities

33. Sample of APD Tracking and Targeting Capabilities (Chattanooga)

34. Sample of APD Tracking and Targeting Capabilities (Chattanooga)

35. APDS Property Disposition Principles Community Participation Accountability Socially Responsible Options Targeted Intervention/Clustering 4 3 2 1 Two-Pronged Marketing Approach Aggressive Implementation 7 6 5 Rehabilitate a superior product

36. The APDS Approach Force Everything to Work Together APDS Housing Programs Galvanized Disposition Typical Housing Programs