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Each office is independently owned and operated. Sponsored By: Each office independently owned and operated 3-Park Portfolio Sale 3 MHP's Portfolio Sale 106 Wesmor | Clinton, MO 64735 CHUCK GRAY 6605250393 [email protected] 3-Park Portfolio Offering Sold Together or Separately 2-Missouri Parks 1-Kansas Park 10% Caps based on actual occupancy & income no blue sky 5% Seller financing available to qualified buyers Hugh Up Side Potential RE/MAX TRUMAN LAKE COMMERCIAL 5 NE 91 Road Clinton, MO 64735 (660) 525-0393 www.remaxcommercial.com

3-Park Portfolio Sale park m… · 3-Park Portfolio Sale 3 MHP's Portfolio Sale 106 Wesmor | Clinton, MO 64735 CHUCK GRAY 6605250393 [email protected] 3-Park Portfolio Offering Sold

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Page 1: 3-Park Portfolio Sale park m… · 3-Park Portfolio Sale 3 MHP's Portfolio Sale 106 Wesmor | Clinton, MO 64735 CHUCK GRAY 6605250393 cgremax@yahoo.com 3-Park Portfolio Offering Sold

Each office is independently owned and operated.

Sponsored By:

Each office independently owned and operated

3-Park Portfolio Sale3 MHP's Portfolio Sale 106 Wesmor | Clinton, MO 64735

CHUCK [email protected]

3-Park Portfolio Offering Sold Together or Separately➢

2-Missouri Parks 1-Kansas Park➢

10% Caps based on actual occupancy & income no blue sky➢

5% Seller financing available to qualified buyers ➢

Hugh Up Side Potential ➢

RE/MAX TRUMAN LAKE COMMERCIAL5 NE 91 RoadClinton, MO 64735(660) 525-0393www.remaxcommercial.com

Page 2: 3-Park Portfolio Sale park m… · 3-Park Portfolio Sale 3 MHP's Portfolio Sale 106 Wesmor | Clinton, MO 64735 CHUCK GRAY 6605250393 cgremax@yahoo.com 3-Park Portfolio Offering Sold

TABLE OF CONTENTS

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

Property Photos ............................................................................................................. 3

Property Description .................................................................................................... 4

Real Estate Investment Details ..................................................................................... 5

Executive Summary ...................................................................................................... 6

Pro Forma Summary .................................................................................................... 7

Cash In Cash Out ........................................................................................................... 8

Loan Analysis ................................................................................................................. 10

Internal Rate of Return Analysis .................................................................................. 11

Unit Mix Report ............................................................................................................... 12

Holt Summit Summary ................................................................................................ 13

Warrensburg MO Summary ........................................................................................... 14

Pittsburgh KS Summary ............................................................................................. 15

Confidentiality Agreement ......................................................................................... 16

Page 3: 3-Park Portfolio Sale park m… · 3-Park Portfolio Sale 3 MHP's Portfolio Sale 106 Wesmor | Clinton, MO 64735 CHUCK GRAY 6605250393 cgremax@yahoo.com 3-Park Portfolio Offering Sold

PROPERTY PHOTOS106 Wesmor | Clinton, MO 64735

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

Seges Park Holt Summit MO

Pembrooke Warrensburg MO

Whispering Pines Pittsburg KS

P. 3

Page 4: 3-Park Portfolio Sale park m… · 3-Park Portfolio Sale 3 MHP's Portfolio Sale 106 Wesmor | Clinton, MO 64735 CHUCK GRAY 6605250393 cgremax@yahoo.com 3-Park Portfolio Offering Sold

PROPERTY DESCRIPTION106 Wesmor | Clinton, MO 64735

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

Portfolio offering of 3-parks with double digit caprates. HUGH UP SIDE!Two Missouri parks andone Kansas park. Consisting of 336 lots total, 73park owned homes total. 407 income units.Parks may be Purchased Together ofSeparately. See attache "Park Descriptions" fordetailed information on each park.

Each park property has in place a Department ofNatural Resources (DNR), Public ServiceCommission(PSC) approved Public WaterSystem(PWS), the park is required to have anapproved Water Operator. The current operatorcan remain in place to fulfill this obligation. By being a PWS the park operator is able to chargetenant for water and sewer at a markup and disconnect tenants from the water for lack of payment.Though disconnections are few, the possibility to refuse service keeps bills paid on time, the parkhas the legal right to do so. Each home has a separate individual meter that is read monthly.

Pembroke Park located in Warrensburg MO consist of 109 lots, 21 park owned homes and 29 acresof land. All city utilities. Offerd @ $1,795,000.00

Seges Park located in Holts Summit MO consist of 114 lots, 33 park owned homes and 24 acres ofland. All city utilities. Offered @ $1,895,000.00

Whispering Pines in Pittsburgh KS consist of 113 lots, 21 park owned homes and 12 acres of land.Rural water, licensed activated sludge plant sewer system. Offered @ $575,000.00

Return the enclosed Confidentiality Agreement for profit & Loss & rent roll information "

P. 4

Page 5: 3-Park Portfolio Sale park m… · 3-Park Portfolio Sale 3 MHP's Portfolio Sale 106 Wesmor | Clinton, MO 64735 CHUCK GRAY 6605250393 cgremax@yahoo.com 3-Park Portfolio Offering Sold

REAL ESTATE INVESTMENT DETAILS

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

ANALYSIS

Analysis Date October 2014

PROPERTY

Property 3 MHP's Portfolio Sale

Property Address 106 WesmorClinton, MO 64735

FINANCIAL INFORMATION

Down Payment $1,279,500

PURCHASE INFORMATION

Property Type MultiFamily

Purchase Price $4,265,000

Units 3

Total Rentable Sq. Ft. 0

LOANS

Debt Term Amortization Rate Payment LO Costs

Balloon $2,985,500 10 years 20 years 5.0% $19,703 $29,855

INCOME & EXPENSES

Gross Operating Income $676,436

Monthly GOI $56,370

Total Annual Expenses ($249,462)

Monthly Expenses ($20,789)

CONTACT INFORMATION

Chuck Gray

6605250393

[email protected]

P. 5

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EXECUTIVE SUMMARY106 Wesmor | Clinton, MO 64735

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

ACQUISITION COSTS

Purchase Price, Points and Closing Costs $4,294,855

Investment - Cash $1,309,355

First Loan $2,985,500

INVESTMENT INFORMATION

Purchase Price $4,265,000

Price per Unit $1,421,667

Price per Sq. Ft. NA

Income per Unit $403,084

Expenses per Unit ($83,154)

INCOME, EXPENSES & CASH FLOW

Gross Scheduled Income $1,209,252

Total Vacancy and Credits ($532,816)

Operating Expenses ($249,462)

Net Operating Income $426,974

Debt Service ($236,436)

Cash Flow Before Taxes $190,538

FINANCIAL INDICATORS

Cash on Cash Return Before Taxes 14.55%

Debt Coverage Ratio 1.81

Capitalization Rate 10.01%

Gross Rent Multiplier 3.53

Gross Income / Square Feet $0.00

Gross Expenses / Square Feet $0.00

Operating Expense Ratio 36.88%

P. 6

Page 7: 3-Park Portfolio Sale park m… · 3-Park Portfolio Sale 3 MHP's Portfolio Sale 106 Wesmor | Clinton, MO 64735 CHUCK GRAY 6605250393 cgremax@yahoo.com 3-Park Portfolio Offering Sold

PRO FORMA SUMMARY106 Wesmor | Clinton, MO 64735

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

UNIT MIX & ANNUAL SCHEDULED INCOME

Type Units Actual Total

Holt Summit MO 1 $403,920 $403,920

Warrensburg MO 1 $362,820 $362,820

Pittsburgh KS 1 $320,640 $320,640

TOTALS 3 $1,087,380

ANNUALIZED INCOMEActual

Gross Potential Rent $1,087,380

Less: Vacancy ($532,816)

Misc. Income $121,872

Effective Gross Income $676,436

Less: Expenses ($249,462)

Net Operating Income $426,974

Debt Service ($236,436)

Net Cash Flow after Debt Service $190,538

Principal Reduction $89,186

Total Return $279,724

ANNUALIZED EXPENSES

ActualAccounting $1,743

Advertising $3,600

Building Insurance $16,503

General Supplies $3,390

Grounds Maintenance $9,565

On site Park Manager $12,500

Legal $3,500

Maintenance Reserves $37,664

Management Fees $53,800

Taxes - Real Estate $13,500

Trash Removal $8,464

Utilities $85,233

Utility - Electricity $0

Utility - Gas $0

Utility - Water $0

Total Expenses $249,462

Expenses Per RSF $249,462.00

Expenses Per Unit $83,154

INVESTMENT SUMMARY

Price: $4,265,000

Units: 3

Price/Unit: $1,421,667

RSF: 1

Price/RSF: $4,265,000.0

Lot Size: 65.0 acres

Floors: 1

Cap Rate: 10.01%

GRM: 3.53

FINANCING SUMMARY

Loan Amount: $2,985,500

Down Payment: $1,279,500

Loan Type: Balloon

Interest Rate: 5%

Term: 10 years

Monthly Payment: $19,703

DCR: 1.81

P. 7

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CASH IN CASH OUT106 Wesmor | Clinton, MO 64735

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.

Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Rental Income $1,087,380 $1,098,254 $1,109,236 $1,120,329 $1,131,532 $1,142,847 $1,154,276 $1,165,819 $1,177,477 $1,189,251

Income Other $121,872 $125,528 $129,294 $133,173 $137,168 $141,283 $145,522 $149,887 $154,384 $159,015

GROSS SCHEDULED INCOME $1,209,252 $1,223,782 $1,238,530 $1,253,502 $1,268,700 $1,284,130 $1,299,797 $1,315,706 $1,331,861 $1,348,267

General Vacancy ($532,816) ($494,214) ($388,233) ($336,099) ($226,306) ($228,569) ($230,855) ($233,164) ($235,495) ($237,850)

GROSS OPERATING INCOME $676,436 $729,568 $850,298 $917,403 $1,042,394 $1,055,561 $1,068,942 $1,082,542 $1,096,365 $1,110,417

Expenses

Accounting ($1,743) ($1,760) ($1,778) ($1,796) ($1,814) ($1,832) ($1,850) ($1,869) ($1,887) ($1,906)

Advertising ($3,600) ($3,672) ($3,745) ($3,820) ($3,897) ($3,975) ($4,054) ($4,135) ($4,218) ($4,302)

Building Insurance ($16,503) ($16,833) ($17,170) ($17,513) ($17,863) ($18,221) ($18,585) ($18,957) ($19,336) ($19,723)

General Supplies ($3,390) ($3,458) ($3,527) ($3,597) ($3,669) ($3,743) ($3,818) ($3,894) ($3,972) ($4,051)

Grounds Maintenance ($9,565) ($9,852) ($10,148) ($10,452) ($10,765) ($11,088) ($11,421) ($11,764) ($12,117) ($12,480)

On site Park Manager ($12,500) ($12,625) ($12,751) ($12,879) ($13,008) ($13,138) ($13,269) ($13,402) ($13,536) ($13,671)

Legal ($3,500) ($3,605) ($3,713) ($3,825) ($3,939) ($4,057) ($4,179) ($4,305) ($4,434) ($4,567)

Maintenance Reserves ($37,664) ($39,547) ($41,525) ($43,601) ($45,781) ($48,070) ($50,473) ($52,997) ($55,647) ($58,429)

Management Fees ($53,800) ($53,800) ($53,800) ($53,800) ($53,800) ($53,800) ($53,800) ($53,800) ($53,800) ($53,800)

Taxes - Real Estate ($13,500) ($13,905) ($14,322) ($14,752) ($15,194) ($15,650) ($16,120) ($16,603) ($17,101) ($17,614)

Trash Removal ($8,464) ($8,633) ($8,806) ($8,982) ($9,162) ($9,345) ($9,532) ($9,722) ($9,917) ($10,115)

Utilities ($85,233) ($87,790) ($90,424) ($93,136) ($95,930) ($98,808) ($101,773) ($104,826) ($107,971) ($111,210)

TOTAL OPERATING EXPENSES ($249,462) ($255,481) ($261,708) ($268,153) ($274,823) ($281,727) ($288,874) ($296,273) ($303,935) ($311,869)

Footnotes: Cash Flow IRR based upon net cash flow and principal payments

P. 8

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CASH IN CASH OUT106 Wesmor | Clinton, MO 64735

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.

Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

NET OPERATING INCOME $426,974 $474,087 $588,589 $649,250 $767,571 $773,834 $780,068 $786,269 $792,430 $798,547

Debt Service

Loan Interest ($147,250) ($142,687) ($137,890) ($132,848) ($127,549) ($121,978) ($116,122) ($109,967) ($103,496) ($96,695)

Principal Payments ($89,186) ($93,749) ($98,545) ($103,587) ($108,887) ($114,458) ($120,314) ($126,469) ($132,940) ($139,741)

NET CASH FLOW (b/t) $190,538 $237,651 $352,153 $412,814 $531,135 $537,398 $543,632 $549,833 $555,994 $562,112

Cash Flow IRR N/A N/A N/A 7.10% 17.59% 23.56% 27.23% 29.59% 31.17% 32.25%

Projected Property Value $4,265,000 $4,265,000 $4,265,000 $4,265,000 $4,265,000 $4,265,000 $4,265,000 $4,265,000 $4,265,000 $4,265,000

Resale Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Proceeds b/f Debt Payoff $4,265,000 $4,265,000 $4,265,000 $4,265,000 $4,265,000 $4,265,000 $4,265,000 $4,265,000 $4,265,000 $4,265,000

Loan Principal Balance ($2,896,314) ($2,802,565) ($2,704,019) ($2,600,432) ($2,491,545) ($2,377,087) ($2,256,773) ($2,130,304) ($1,997,364) $0

Balloon/Call Payment $0 $0 $0 $0 $0 $0 $0 $0 $0 ($1,857,623)

Net Proceeds From Sale $1,368,686 $1,462,435 $1,560,981 $1,664,568 $1,773,455 $1,887,913 $2,008,227 $2,134,696 $2,267,636 $2,407,377

Net Resale IRR 19.08% 21.46% 24.08% 25.76% 27.41% 28.28% 28.76% 29.02% 29.16% 29.22%

Footnotes: Cash Flow IRR based upon net cash flow and principal payments

P. 9

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LOAN ANALYSIS106 Wesmor | Clinton, MO 64735

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.

Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

LOAN 1

Debt Service Analysis

Principal Payments $89,186 $93,749 $98,545 $103,587 $108,887 $114,458 $120,314 $126,469 $132,940 $139,741

Interest Payments $147,250 $142,687 $137,890 $132,848 $127,549 $121,978 $116,122 $109,967 $103,496 $96,695

Total Debt Service $236,436 $236,436 $236,436 $236,436 $236,436 $236,436 $236,436 $236,436 $236,436 $236,436

Balloon/Retirement $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,857,623

Principal Balance Analysis

Beginning Principal Balance $2,985,500 $2,896,314 $2,802,565 $2,704,019 $2,600,432 $2,491,545 $2,377,087 $2,256,773 $2,130,304 $1,997,364

Principal Reductions $89,186 $93,749 $98,545 $103,587 $108,887 $114,458 $120,314 $126,469 $132,940 $139,741

Ending Principal Balance $2,896,314 $2,802,565 $2,704,019 $2,600,432 $2,491,545 $2,377,087 $2,256,773 $2,130,304 $1,997,364 $0

P. 10

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INTERNAL RATE OF RETURN ANALYSIS106 Wesmor | Clinton, MO 64735

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

BEFORE TAX IRR

Time Future Cash Flows

Initial Investment ($1,309,355)

End of Year 1 $190,538

End of Year 2 $237,651

End of Year 3 $352,153

End of Year 4 $412,814

End of Year 5 $531,135

End of Year 6 $537,398

End of Year 7 $543,632

End of Year 8 $549,833

End of Year 9 $555,994

End of Year 10* $2,969,488

IRR = 29.22% * ($562,112 + $2,407,377)

AFTER TAX IRR

Time Future Cash Flows

Initial Investment ($1,309,355)

End of Year 1 $190,538

End of Year 2 $237,651

End of Year 3 $352,153

End of Year 4 $412,814

End of Year 5 $531,135

End of Year 6 $537,398

End of Year 7 $543,632

End of Year 8 $549,833

End of Year 9 $555,994

End of Year 10* $2,585,041

IRR = 28.65% * ($562,112 + $2,022,929)

P. 11

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UNIT MIX REPORT106 Wesmor | Clinton, MO 64735

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

UNIT MIXES

Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly1 Holt Summit MO 0 $33,660 $33,660 $19 $191 Warrensburg MO 0 $30,235 $30,235 $18 $181 Pittsburgh KS 0 $26,720 $26,720 $20 $203 0 $90,615 $57

UNIT MIX UNIT MIX SQUARE FEET

● Holt Summit MO

● Warrensburg MO

● Pittsburgh KS

● Holt Summit MO

● Warrensburg MO

● Pittsburgh KS

UNIT MIX INCOME UNIT MIX MARKET INCOME

● Holt Summit MO

● Warrensburg MO

● Pittsburgh KS

● Holt Summit MO

● Warrensburg MO

● Pittsburgh KS

P. 12

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Holt Summit MO aka Seges Park Offer @ $1,895,000.00

HUGE UP SIDE POTENTIAL IN THIS PARK. SELLING NO BLUE SKY. The park consists of 24 acres total of which 3.5 acres +/- is undeveloped. 114 spaces various lot sizes, 31-park owned homes, on site office and storm shelter, playground, concrete & asphalt roads, city utilities, all utilities sub-metered, all sanitation plumbing is PVC, park has it's own licensed Public Water System in place allowing owner to charge for water & sewer. 66-spaces are occupied of that 31-spaces occupied by park owned homes. Income units consist of 114 Lots and 31-homes for a total of 145 income producing units. Vacancy factors estimates used in this proforma: yr-1 39%, yr-2 35%, yr-3 30%, yr-4 25%, yr-5 and beyond 15%. 10% cap rate year one based on average income & expenses from 2011 to 2013. The vacancy rate reductions projected here are based on purchasing park owned homes or move-ins from other parks of 44 + mobiles over a period of 5-years. This method is commonly used in this market area to create up side value. Year end 2013 the park had a physical occupancy of 66-spaces and an economic occupancy of 59-spaces (46% Vacancy) Mobiles had a physical occupancy for park owned mobiles of 31-units with an economic occupancy of 27-units (12% Vacancy). This property is a Dept. of Natural Resources(DNR), Public Service Commission(PSC) approved Public Water System(PWS), the park is required to have an approved Water Operator. The current operator can remain in place to fulfill this obligation. By being a PWS the park operator is able to charge tenant for water and sewer at a markup and disconnect tenants from the water for lack of payment. Though disconnections are few, the possibility to refuse service keeps bills paid on time, the park has the legal right to do so. Each home has a separate individual meter that is read monthly. Bills are then sent to each user. If buyer is in need of experienced mobile home park management, they are available and offering full service management and lease up at 10% of the collected rental income. Please sign attached CA for more details financial information.

Page 14: 3-Park Portfolio Sale park m… · 3-Park Portfolio Sale 3 MHP's Portfolio Sale 106 Wesmor | Clinton, MO 64735 CHUCK GRAY 6605250393 cgremax@yahoo.com 3-Park Portfolio Offering Sold

Warrensburg MO aka Pembrooke Park Offered @ $1,795,000.00

HUGE UP SIDE POTENTIAL IN THIS PARK. SELLING NO BLUE SKY. The park consists of 29 acres total of which 5 acres +/- is undeveloped. 109 spaces various lot sizes, 21-park owned homes, on site office, storage building, concrete pads/strips & asphalt roads, city utilities, all utilities sub-metered, park has it's own licensed Public Water System in place allowing owner to charge for water & sewer. 61-spaces are occupied of that 21-spaces are occupied by park owned homes. Income units consist of 109 Lots and 21-homes for a total of 130 income producing units. Vacancy factors estimates used in this proforma: yr-1 39%, yr-2 32%, yr-3 28%, yr-4 20%, yr-5 and beyond 15%. The 10% cap rate year one based on average income & expenses from 2011 to 2013. The vacancy rate reductions projected here are based on purchasing park owned homes or move-ins from other parks of 40 + mobiles over a period of 5-years. This method is commonly used in this market area to create up side value. Year end 2013 the park had a physical occupancy of 61-spaces and an economic occupancy of 59-spaces (54% Vacancy) Mobiles had a physical occupancy for park owned mobiles of 21-units with an economic occupancy of 19-units (4% Vacancy). This property has in place a Department of Natural Resources (DNR), Public Service Commission(PSC) approved Public Water System(PWS), the park is required to have an approved Water Operator. The current operator can remain in place to fulfill this obligation. By being a PWS the park operator is able to charge tenant for water and sewer at a markup and disconnect tenants from the water for lack of payment. Though disconnections are few, the possibility to refuse service keeps bills paid on time, the park has the legal right to do so. Each home has a separate individual meter that is read monthly. Bills are then sent to each user. If buyer is in need of experienced mobile home park management, they are available and offering full service management and lease up at 10% of the collected rental income. Please sign attached CA for more details financial information.

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Pittsburgh KS aka Whispering Pines Park Offered @ $575,000.00

This park is in need of new management. The upside potential is great. This proforma factors a 70% vacancy for year one, 60% year two, 50% year three, 40% year four, leveling off at 15% year five and beyond. The proforma cap rate is 12% based on actual income and estimated expenses derived from profit and loss statements provide to broker by seller. Built in 1975 The park consist of 113 lots. Of which 21 lots are occupied by park owned homes and 14 lots are occupied by privately owned homes. As of October 2014 there where 78 vacant lots. As of Oct 2014 seven of the 21 park owned homes where leased. Total income units 134. The park is located on 12-deeded acres, no zoning restrictions, roads are asphalt,sewer is a permitted activated sludge system there is licensed operator the operators fee is $400.00 per month, electric is sub metered, gas is sub metered, lot sizes average 35 x 80, small portion of park is in 100 year flood zone, 5-spaces will accept RV's, most recent lot rent increase January 2014 $10.00, amperage to sites 100 to 200 AMP. This property has in place a Department of Natural Resources (DNR), Public Service Commission(PSC) approved Public Water System(PWS), the park is required to have an approved Water Operator. The current operator can remain in place to fulfill this obligation. By being a PWS the park operator is able to charge tenant for water and sewer at a markup and disconnect tenants from the water for lack of payment. Though disconnections are few, the possibility to refuse service keeps bills paid on time, the park has the legal right to do so. Each home has a separate individual meter that is read monthly. Bills are then sent to each user. Please return the attached CA for more details and financials 2011 to June 2014.

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CONFIDENTIALITY, REPRESENTATION & REGISTRATION AGREEMENT

The undersigned Accepting Party (“Company”) is interested in obtaining information regarding the property known as the Portfolio Sale of Three Mobile Home Parks aka: Pembrooke Warrensburg MO, Seges Holt Summit MO & Whispering Pines Pittsbugr KS (the “Property”) in order to evaluate the possible acquisition (the “Proposed Transaction”) of the Property from the owner, (“Owner”). To assist you in your evaluation of a potential acquisition of the Property, we will provide you with certain information concerning the acquisition. As a condition to furnishing you with such information, the Company agrees that Owner, its affiliates, partners, lenders, employees, agents, attorneys, accountants, advisors or representatives (collectively the “Representatives”) furnish to your Company. The term Evaluation Material will also include any analysis, compilations, studies or other documents prepared by Company or Company’s Representatives containing, or based in whole or in part on, any information furnished by owner. AS A CONDITION TO THE RECEIPT OF THE EVALUATION MATERIALS IT IS EXPRESSLY UNDERSTOOD THAT THERE SHALL BE NO SOLICITING OF THE PROPERTY’S ONSITE EMPLOYEES FOR POTENTIAL EMPLOYMENT OPPORTUNITES. ALSO, IT IS EXPRESSLY UNDERSTOOD THAT THERE SHALL BE NO SOLICITING OR DISCUSSION OF THIS SALE WITH ANY PROPERTY’S TENANTS. Company agrees that the Evaluation Material will be kept confidential by it and its Representatives and shall not, except as hereinafter provided, without the prior written consent of Owner, be used or disclosed by it or its Representatives other than for the purpose of evaluating the Acquisition. Company may disclose Evaluation Material only to those of its Representatives who need such information for the purpose of evaluating the Acquisition and who shall (i) be advised by Company of this letter agreement (the “Agreement”) and (ii) agree with Company to be bound by the provisions hereof. Company shall be responsible for any breach of this Agreement by its Representatives. In the event that the Acquisition is not effected after Company has been furnished with Evaluation Material, Company will promptly deliver to Owner the Evaluation Material and all copies thereof, except for portion which consists of compilations, studies or other documents prepared by Company or its Representatives, without retaining any copy thereof. That portion of the Evaluation Material which consists of analysis, compilations, studies or other documents prepared by Company or its Representatives will be held by it and kept confidential and subject to the terms of this agreement, or destroyed at the request of Owner, with destruction confirmed in writing by the Company to Owner. The term Evaluation Material does not include information which (i) becomes generally available to the public other than as a result of disclosure by company or its Representatives, (ii) was available to Company on a non-confidential basis prior to its disclosure to Company by Owner or its Representatives, or (iii) becomes available to Company on a non-confidential basis from a source other than Owner or its Representatives, provided such source itself is not bound by a confidentiality agreement with Owner or its Representatives or is not other wise prohibited from disclosing such information by any contractual, legal or fiduciary obligation. Although Company understands that Owner has endeavored to include the Evaluation Material information known to it which it believes to be relevant for the purposes of Company’s investigation, Company further understands that except as may otherwise be agreed in writing, Owner does not make any representation or warranty as to the accuracy or completeness of the Evaluation Material. Company agrees that neither Owner nor its Representatives shall have any liability to Company or any of its Representatives under this Agreement for any cause whatsoever.

The property is being offered on an “As is-Where is” basis and you and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction, the suitability of the property for your needs.

Page 17: 3-Park Portfolio Sale park m… · 3-Park Portfolio Sale 3 MHP's Portfolio Sale 106 Wesmor | Clinton, MO 64735 CHUCK GRAY 6605250393 cgremax@yahoo.com 3-Park Portfolio Offering Sold

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CONFIDENTIALITY, REPRESENTATION & REGISTRATION AGREEMENT Without the prior written consent of Owner, neither Company, its affiliates, nor those of Company'’ representatives who are aware of the Evaluation Material and/or the possibility of a transaction will knowingly initiate or cause to be initiated any communication with any Owner of the Property and/or such Owners’ affiliates, tenants, managers, lenders, constituent owners, and governmental regulators concerning the Evaluation Material or a possible transaction involving the Property. The undersigned warrants and represents all parties i.e. Buyer and Buyers agent, Owner and Owner’s agent; which, Re/Max Truman Lake, as the broker named below (“Representing Broker”). The recipient of this package agrees to indemnify, defend, and hold Owner and Re/Max Truman Lake harmless and defend both against any and all brokers claiming a commission other than the brokers named below. This agreement shall be governed and construed in accordance with the laws of the Governing State, may not be changed, waived or terminated orally and shall be binding upon the parties and their successors or assigns. The Company confirms the understanding that any agreements between the Company and Owner concerning the Acquisition will exist only when such agreement is in writing and duly executed by the parties thereto. RETURN EXECUTED AGREEMENT TO: RE/MAX TRUMAN LAKE 5 NE 91 RD Clinton MO, 64735 Phone (660) 525-0393 Fax (660) 885-2208 Email [email protected] ATTENTION: Chuck Gray Agreed to and accepted by: Company: _________________________________________________ ____________________________________________ ____________________________________________ Company Representative / Agent / Broker / Contact: Phone: ______________________________________ Email: _________________________________________________________________

Print Name: ___________________________ Title:_________________________________

Signature:___________________________________________________________________ Date: ______________________________________________________________________ Comments: All potential Buyers shall be listed and submitted to Seller via this agreement and shall be attached to and become part of this agreement.