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					Health & Wealth of Dutchess County , LLC

          Health & Wealth of Dutchess County , LLC




                      Investor Package
                       Confidential


                         9/15/2012


                                                1
                                                                   Table of Contents
Health & Wealth of Dutchess County , LLC ..............................................................................................................1
Vision & Mission Statement ...........................................................................................................................................3
About Us ...........................................................................................................................................................................4
Executive Summary .........................................................................................................................................................5
Reason For Investing ......................................................................................................................................................6
Marketing Plan .................................................................................................................................................................7
Investors Potential Growth ............................................................................................................................................8
Management Organization .............................................................................................................................................9
Short Term Goals ......................................................................................................................................................... 10
Long Term Goals .......................................................................................................................................................... 10
Exit Strategy ................................................................................................................................................................... 11
Financial Overview ....................................................................................................................................................... 12
Forecasts 2010-2014
Income Statement ......................................................................................................................................................... 13
Forecast 2010-2014
Balance Sheet ................................................................................................................................................................. 14
Cash Flow Statement
2009 vs 2010 and 2010 vs 2011 .................................................................................................................................. 15
Cash Flow Statement
2011 vs 2012 and 2012 vs 2013 .................................................................................................................................. 16
Cash Flow Statement
2013 vs 2014 .................................................................................................................................................................. 17
Health and Wealth Of Dutchess Cty, LLC
NOTES TO FINANCIALS
2010 through 2014 ........................................................................................................................................................ 18
2010 Financial Notes .................................................................................................................................................... 19
2011 Financial Notes .................................................................................................................................................... 20
2012 Financial Notes .................................................................................................................................................... 21
2013 Financial Notes .................................................................................................................................................... 22
2014 Financial Notes .................................................................................................................................................... 23
Recruitment and Capital Incentive Plan .................................................................................................................... 24
Membership Growth .................................................................................................................................................... 25
Closing Statements........................................................................................................................................................ 26




                                                                                                                                                                             2
         Vision & Mission Statement


Vision Statement

Health and Wealth Of Dutchess County, LLC builds portfolios of in-
vestments by pursuing an aggressive course of well managed growth
that provides the highest return to its investors.


Mission Statement

Health and Wealth of Dutchess County, LLC will establish and main-
tain a diverse team of experienced professionals in key positions that
 leverage capital and seek opportunities to create wealth. We research
and invest in well vetted ventures from a practical perspective while
maintaining a secure and cost effective operating model. Current po-
sitions include rental properties located near colleges and universities
that generate high rental income while building equity in our portfolio
of holdings.




                                                                           3
                               About Us
This business investment group was organized as a partnership club in March
2003. There were originally five members which grew to ten. Its original
Objective was to invest in stocks.
In September 2007, the partnership changed its organizational structure and
became The Health & Wealth of Dutchess County, LLC a real estate invest-
ment company. Its primary objectives are to purchase college housing rentals
properties. This strategic move was made to better meet the goals and objec-
tives of its members. The members agreed to invest its resources in long term
assets forgoing its investment in stocks.
The Health & Wealth of Dutchess County, LLC manages its business using
Quick Books Pro 2010 and manages the books on an accrual accounting ba-
sis. The business does not carry any accounts receivable nor does it accept
credit card payments. We do not maintain any employees at this time. Each
month the CFO provides and reviews the current financial position of the
LLC at the monthly member meeting. The CEO and CFO hold Bachelors
Degrees in Business and Accounting. The COO holds an Associates Degree
in Electrical Technology Engineering.
The Health & Wealth of Dutchess County, LLC uses RK Enterprises in S.C.
as our maintenance vendor. RK Enterprises has over 40 years experience in
the construction business and provides the necessary experience needed to
answer any calls from the tenants should any problems arise.




                                                                                4
                    Executive Summary
Health and Wealth, LLC is a real estate investment company that currently
focuses its efforts on the college rental market. The current membership of
Health and Wealth totals 15 members and has contributed capital of over
$290,000. Currently, The Health & Wealth of Dutchess County, LLC has no
employees and manages its business through its elected officers and member-
ship. As we grow, our plan is to add additional members with a specific busi-
ness experience in order to leverage their expertise.
The Health & Wealth of Dutchess County, LLC currently holds properties
located in Conway, S.C and rents to students attending Costal Carolina Uni-
versity and Georgetown Technical College. The college is expected to grow
from 8,300 students to 12,000 with some estimates suggesting 15,000 to
17,000 by 2015. This is currently our focus area.
The Health & Wealth of Dutchess County, LLC identifies markets with real
estate appreciation opportunities and strong rental demand to cover operat-
ing costs. A due diligence is conducted by the officers of Health and Wealth,
LLC to ensure market conditions are aligned with our goals and objectives
and the benefits outweigh the risks of any investment. Our objective is to ac-
quire properties that will appreciate over time to take advantage of stressed
real estate markets, while rents cover operating costs in the sort term. As the
business grows, we will look to expand our operations to include multi-unit
properties.
Health and Wealth, LLC seeks to grow and increase its portfolio of assets by:
 Acquiring investment capital through the addition of new members. Cur-
   rent forecasts call for membership to grow to 80 members by 2014.
 Expand our markets at college areas throughout the Mid-Atlantic and
   South East US.
 Seek out opportunities to acquire and / or merge other businesses that
   provide synergies with our objectives
 Provide a return of capital twice per year in the form of a dividend which
   will provide an incentive to increase our membership.




                                                                                  5
                 Reason for Investing
We have chosen the college rental market because of its unique character-
istics and benefits to buyers. These markets are affordable and offer ex-
ceptionally stability over time. The cultural and economic stability associ-
ated with higher education institutions make them exceptionally desirable
for the purchase of homes and other real properties. A study conducted by
Coldwell Bankers Real Estate found that the average four-bedroom home
costs less than $250,000 in 62 percent of college markets surveyed. The
study centered on an apples-to-apples comparison of 2,200-square-foot, 4
bedrooms, 2 ½ bathrooms homes in college markets.
The college market can withstand a downturn in the economy. Even as we
see the current housing market crash, the college enrollment for 18-24
years of age is up 40% according to a Pew Research Center report con-
ducted on 10/21/2009. Most of the increase was in 2 year institutions but
the carryover effect to larger four year institutions was also felt.
The National Center for Education Statistics shows a steady projected in-
crease in enrollment through 2017 on all projected levels of either low,
medium or high forecasts.
With the current enrollment hitting all time highs and colleges looking to
trim their budgets, it provides an opportunity for alternative off campus
housing that we can take advantage of.
Current projections indicates a housing shortage by 2011 according to Al-
exandra Zendrian of Forbes, if new housing starts aren’t increased soon.
She states that 1 ½ million homes must be built each year just to keep up
with the population growth. Currently there is a 6 to 7 months inventory
whether you look at existing or new homes.
We are currently focusing our efforts in Conway S.C. Coastal Carolina
University is projected to grow to 12,500 students by 2017 as provided by
the Sun News of 1/24/10 from the current enrollment of 8,700. If these
projections are accurate the college housing market can not support this
growth. According to CCU President David DeCenzo, he suggests that
this population could reach 15,000 to 17,000 by 2017 with much of the
growth from out of state students.




                                                                               6
                                     Marketing Plan
Objective:
    To invest in rental properties located near colleges across the East Coast. Concentrate
       on those colleges that have a need for off campus housing to support their current en-
       rollment objectives.
Focus:
    Our current focus is on single family 3 to 4 bedroom units located within a 2 mile radi-
       us of the college.
Marketing Tools:
    We will rely on college web sites to determine the current enrollment population as
       well as the number of dorm rooms available.
    Use Various Government Web sites such as “The National Center for Educational Sta-
       tistics” and any local web site that would provide insight into the college life. Our mar-
       keting manager will do a due diligence using the resources at his disposal of the local
       economy and demographics before any purchase is considered.
Budget:
    We will rely on member contributions for much of the growth we anticipate over the
       next 5 years. We anticipate membership growth between 80 to 90 new members by
       2014. Each member has to meet a minimum contribution of $2,000 each anniversary
       year. This allows us to continue a steady flow of capital for future investments.
    Each purchase the LLC makes will assume a 20% down payment along with all closing
       costs.
    We anticipate the following growth in our revenue income year over year through
       2014:
    2010: Increase gross rental income by 52% to $134.7K from $88K in 2009 with the
       purchase of 4 new properties. Rental income is based on a per room rate of $475 with
       the addition of 13 new rooms.
    2011: Increase gross rental income by 62% to $217.9K from $134.7K in 2010 with the
       purchase of 4 additional properties. Rental income is based on a per room rate of $475
       with the addition of 14 new rooms.
    2012: Increase gross rental income by 37% to $297.7K from $217.9K in 2011 with the
       purchase of 4 additional properties. Rental income is based on a per room rate of $475
       to $500 with the addition of 13 new rooms.
    2013: Increase gross rental income by 29% to $383.8K from $297.9K in 2012 with the
       purchase of 4 additional properties. Rental income is based on a $500 per room and an
       additional increase of 14 new rooms.
    2014: Increase gross rental income in by 19% to $457.8K from $383.8K in 2012 with
       the purchase of 4 additional properties. This increase is lower than in past years due to
       the forecasted sale of 2 properties in 2014. The LLC will give the membership the op-
       tion to take cash as a distribution or to reinvest in the business. Rental income is based
       on a $500 per room with a net addition of 8 new rooms.




                                                                                                    7
                           Investors Potential Growth
 NOTE: ALL INVESTMENT GROWTH NUMBERS ARE BASED ON FORECASTS AND ASSUMPTIONS
 AND MAY OR MAY NOT RESULT IN ACTUAL ATTAINMENT. ACTUAL RESULTS WILL DEPEND ON
 EACH INDIVIDULES INVESMTENT. YOU SHOULD TALK WITH YOUR TAX ACCOUNTANT BEFORE
 MAKING ANY INVESTMENT DECISION.
  Assumption 1: Member makes initial $10,000 contribution to the LLC on the First day of the month January
  1, 2010 and has no other contributions through the year. Certificate forecasted value on the 1st day of 2010 is
  $298.65. Member continues to make $2,000 contribution as per the Operating Agreement thereafter on first
  day of the New Year 2011 through 2014. At the end of 2014, FMV (forecasted) of LLC is $303.63. The FMV
  assumes a 3% increase YOY. As of Dec 31, 2014, total contributions made by an investor would be $18,000.
  FMV of investment would be approximately $18,469.25, a 4% increase over this 4 year period. THIS CAL-
  CULATION ASSUMES A 3% INCREASE YEAR OVER YEAR.
  One of the major advantages of investing in real estate are the TAX breaks received due to the depre-
  ciation we must take on property purchases.




   Assumption 2: Tax Break: A member that is filing married jointly, income equals $100,000 per year and
  owes taxes on income of $12,706.00. The standard deduction and the exemptions are given to everyone who
  files taxes. Because of the nature of our business, The LLC has to depreciate its assets over a 27-1/2 year peri-
  od. This depreciation is taken to the Income Statement. Because of this depreciation, the LLC realizes negative
  income yearly. This negative income flows to the individual member’s personal income tax via K1's that are
  generated by our tax accountants based on percentage of ownership. The flip of this is, when we sell proper-
  ties, we may realize a gain which would be distributed to the members based on ownership. This would be re-
  flected in year 2014 as we are forecasting to sell 2 properties at a 20% gain.
  Assuming the member made the contributions as stated above, this member would realize a tax benefit over a
  4 year period as follows:
          $590.00 and a 4.7% tax benefit
          $740.00 and a 5.8% tax benefit
          $825.00 and a 6.5% tax benefit
          $770.00 and a 6.1% tax benefit
          $284.00 and a 2.2% tax benefit
             --------
           $3,209.00

With the above assumptions, an investor has an opportunity to realize a total gain of approximately 28.25% over
5 years which would calculate at an average of 5.6% a year. In addition, a member can earn an additional 5% on
any additional new member capital brought into the business as part of our recruitment plan.
Investment return and principal value may fluctuate, so shares/units , when redeemed, may be worth
more or less than their original cost. You should carefully consider your investment objectives and risk
adversity in the Health & Wealth of Dutchess County , LLC before making an investment decision.

                                                                                                           8
                    Management Organization
                  CEO/CFO/COO ARE MEMBER VOTING POSITIONS
                           Other Positions Are Voluntary
EO

                               Management Board

                     CEO
                      COO              CF                 COO
                                                        COO
 Transaction   Sales & Mar-
                    CEO                O              Opera-
                Marketing &     Finance & Ac-
    Counsel    keting                Carl           Paul
                                                    tions
               SalesChuck      counting
               Weiss                 Syslo          Twyman

                                    Treasurer       Rental Agent
 Investment       Busi-
                                   Dave
 Opportunity     Development
                  ness
                   Mgr             Monto
 Workshop


                                    Assistant      Real Estate
                  Investor            Treas-
                                                   Agent
                  Rela-          urer
                                                          Kim
                  tions           Debbie
                                                   Davis
                                 Bosch
                                                       Director
                 Information       Secretary           of    Fa-
                 Technology                        cilities
                                                     Roger
                                                   Kischner
                                                Maintenance Maintenance
                                    Legal
                                                 Manager     Manager




                                                                          9
                     Short Term Goals
 Obtain new investment capital of $100,000
 Purchase 4 new investment opportunities
 Obtain a $250,000 line of credit
 Recruit members with specific professional expertise
 Optimise all operating costs
 Build and implement a Capital Recruitment Incentive Plan
 Implement a Return of Capital Plan
 Enhance entrance and exit strategies
 Provide Quarterly Statement to Investors
 Implement web site for Heath and Wealth of Dutchess LLC.




                     Long Term Goals
 Explore options of going public in next 4-5 years
 Maintain a positive gross profit margin
 Maintain a positive net profit margin EBITDA
 Increase the company’s assets to 5 million over 5 years
 Diversify our portfolio holdings and markets
 Seek synergies in mergers and acquisitions
 Continue to obtain investment capital yearly from new membership




                                                                     10
                         Exit Strategy
Health and Wealth of Dutchess County, LLC has implemented a simple exit
strategy in line with its goals and objectives. Prior to a sale, the transaction
council task force team will analyze market conditions and rely on our real
estate professionals to provide information on home prices and recent sales.
The team will evaluate the advantages and disadvantages to Health &
Wealth of Dutchess County, LLC on the sale or hold position of any deci-
sion on a particular property. If a sale is to occur, a percentage of the net
profits will be returned to the Health & Wealth of Dutchess County LLC
for future asset purchases and a portion returned to the members.

Goals and objectives considered in the disposition of any asset:

 The sale of any asset will require generating a capital gain NET 20%.
 Evaluation of the demographics and its residential neighborhood on the
   asset being considered for sale.
 Any transaction will require approval from the Board Members’, and
   other Members having more than 10% ownership and the transactional
   council in Health & Wealth of Dutchess County, LLC. Each member of
   these positions has a one vote option and 51% would be required to sell
   or hold a particular asset.




                                                                                   11
          Financial Overview
  Financial Forecasted Data 2010-2014

Income Statement
Balance Sheet
Cash Flow Statements
Notes to Forecasted Financial Statements




                                           12
Forecasts 2010-2014
 Income Statement




                      13
Forecast 2010-2014
  Balance Sheet




                     14
    Cash Flow Statement
2009 vs 2010 and 2010 vs 2011




                                15
   Cash Flow Statement
2011 vs 2012 & 2012 vs 2013




                              16
Cash Flow Statement
   2013 vs 2014




                      17
Health and Wealth of Dutchess Cty, LLC
      NOTES TO FINANCIALS
          2010 through 2014




                                         18
                                       2010 Financial Notes
    Revenue and Member Capital Assumptions:
    Overall vacancy rates have steadily increased from 6% in 9/07 to 14% through 9/09 as published by Real Data
    Apartment Market Research. In our 2010 through 2014 forecast, we used a conservative vacancy rate of 9% as the
    market for college rentals is strong and tends to have a lower vacancy rate then those for family rentals units.
    Revenue is based on a per room basis and therefore income is not affected as significantly as the vacancy of a fam-
    ily unit.
    We are forecasting to grow new capital by $100K in 2010 through our recruitment plan.
    Forecasted growth in membership is 10 based on each new member contributing $10,000. Current membership is
    required to meet a minimum of $2,000 per year as per operating agreement which will provide an additional
    $24,000. Total anticipated membership at end of 2010 is 22.
    In 2008 members contributed capital was $137K. In 2009, members contributed an additional $140K. We antici-
    pate current members to contribute additional capital above and beyond the required $2K minimum.
    Cost Assumptions:
    We will eliminate paying for utilities as the leases come up for renewal. Tenants were paying a $50 premium above
    asking rent of $475 to cover utilities. It was not cost effective for us to continue to pay these costs. This will reduce
    our rental income per year but the cost savings from not paying the utilities far outweigh the loss in revenue. The
    last utility bill to be paid will be in July 2010.
    Maintenance and Labor adjusted from 2009 purchase of 154 Citadel. Property was purchased as a foreclosure and
    additional maintenance and labor was invested in this property. We have excluded these one time costs to get an
    appropriate budget for 2010.
    Reducing our Pest Control budget will consist of having the seller pay for the termite inspections. The initial cost
    of the Termite inspection is$690 and then $100 per year if we maintain the same contractor.
    Balance Sheet Assumptions:
      Forecasted to purchase 4 new properties:
      Our Purchase price forecast used in our 2010 assumption is as follows: three 3 B/R's assumed at $175K and one
       4 B/R $200K.
        Purchase Property 1 : Refinance 159 Quail Run. Current interest rate on mortgage is 6.25% and balance on
            mortgage is $136K. Look to refinance property at $145K with an interest rate of 5.5%. Use proceeds to
            fund down payment of new property 1, assumed interest rate of 6.25%.
        Purchase Property 2 : Refinance 161 Quail Run. Current interest rate on mortgage is 6.25% and balance on
            mortgage is $136K. Look to refinance property at $175K with an interest rate of 5.5%. Use proceeds to
            fund down payment of new property 2, assumed interest rate of 6.25%.
        Purchase Property 3 : Refinance 143 University Dr. Current interest rate on mortgage is 7.00% and balance
            on mortgage is $180K. Look to refinance property at $220K with an interest rate of 6.25%. Use proceeds to
            fund down payment of new property 3, assumed interest rate of 6.25%.
        Purchase Property 4: Refinance 154 Citadel Dr. Current Interest rate on mortgage is 6.75% and balance on
            mortgage is $150K. Look to refinance property at $197K with an interest rate of 6.25%. Use proceeds to
            fund down payment of new property 4, assumed interest rate of 6.25%.
      The purchase of these additional properties will require an investment of member capital to fund the shortfall in
       closing costs and down payment not covered by the assumed refinance of the current properties. We are fore-
       casting a 20% down payment and assumed closing costs of $8K per property. Current forecast projections call
       for approx $47,000 of contributed capital.
      Pay out Capital Incentive twice per year if cash flow forecast is met or exceeded. Full year forecast is at 100% at-
       tainment is $89.9K.
      Pay a recruitment fee to current members for their recruiting efforts of 5% currently based on the additional
       capital of $100,000 which represents a total payout of $5,000.
    Additional Notes:
      Risk to the forecast is that we may need to use member capital to purchase all 4 properties if we can not re-
       finance.
      We are looking to purchase our new properties in S.C, but have begun efforts to expand into Florida.
      Will look to see if we could consolidate all insurance policies on properties with one supplier and reduce costs.




                                                                                                                           19
                                   2011 Financial Notes
Revenue and Member Capital Assumptions:
 As with 2010 we kept vacancy rate same YOY at 9%. Although the college market is expected to stay
    strong for housing, we have taken a conservative approach to our vacancy loss.
 We are forecasting to grow our membership to bring in additional capital by $130K in 2011 through our re-
    cruitment plan. Anticipated growth in membership is 13, based on each new members contributing of
    $10,000. Old membership required to meet minimum of $2,000 per year as per operating agreement which
    brings in an additional $32,000. Total anticipated membership growth at end of 2011 is 35 with 13 new
    members.
 Have not assumed any attrition from the LLC but will maintain cash on hand of 15% to meet any attrition
    that may occur.

Cost Assumptions:
 Joining the Chamber of Commerce.
 As with 2010, will look to have our termite inspections paid for by the seller when closing on properties.

Balance Sheet Assumptions:
 Forecasted to purchase 4 new properties:
 In 2011 we have increased our purchase price slightly as an anticipated improvement in market conditions
    may occur.
Purchase price used in assumption is as follows:
     Purchase Property 5 : Refinance 143 Quail Run. Current Interest rate on mortgage is 5.825% and bal-
        ance on mortgage is $129K. Look to refinance property at $175K with the assumption we can refinance
        for same rate. Use proceeds to fund down payment of new property. Assumed interest rate of 6.50%.
        As the market is improving, we suspect interest rates will rise YOY.
     Purchase Property 6 : purchase 4 B/R home. Will use Member Capital of $48K to fund 20% down
        payment and closing costs. Assumed Interest rate for new property is 6.5%.
     Purchase Property 7 : Look to refinance property #2 purchased in March of 2010. Take out equity and
        use for down payment on property 7. Interest rate for refinance and purchase is assumed at 6.575% .
        Member contributions will be used for closing costs.
     Purchase Property 8 : purchase 3 B/R home. Will use Member Capital of approx. $45K to fund 20%
        down payment and closing costs. Assumed interest rate for new property is 6.575%.
 Pay out Capital Incentive twice per year if cash flow forecast is met. Full year cash flow forecast is $144K.
 Pay a recruitment fee to current members for recruiting efforts of 5%, currently based on the additional
    capital of $130,000 which represents $6,500 payout.

Additional Notes:
 Possibility hiring our current maintenance manager part time if our labor costs begin to exceed budget. An-
    ticipated weekly pay would be $250.00.
 Look at getting a contract for lawn service if we can lower our costs below the current budget.
 If we are able to recruit more capital than our forecast is projecting, we will use this to purchase additional
    properties as opposed to refinancing. Also will look at purchasing properties at a lower interest rate as well
    as a lower offering price than forecasting.




                                                                                                                 20
                              2012 Financial Notes
Revenue and Member Capital Assumptions:
 We will look to increase existing rooms to $500 as new leases are signed.
 As with previous years, we kept vacancy rate at 9%. Although the college market is expected to
   stay strong for housing. we have taken a conservative approach to our vacancy revenue.
 We are forecasting to grow our Membership Capital by $160K in 2012 through our recruitment
   plan. Anticipated growth in membership is 16 based on each new members contributing of
   $10,000. Old membership required to meet minimum of $2,000 per year as per operating agree-
   ment and would provide an additional $70,000. Total anticipated membership at end of 2012 is 51.
 Have not assumed any attrition from the LLC but will maintain cash on hand of 15% to meet any
   attrition that may occur.

Cost Assumptions:
 Lawn maintenance costs increase YOY with the purchase of 4 additional properties. If we where
   not able to contract out this service in 2011 at a reasonable cost, we will again explore this option
   in 2012.

 Balance Sheet Assumptions:
 Forecasted to purchase 4 new properties: Assume interest rates have increased YOY due to im-
    proved market conditions.
 Purchase price used in assumption is as follows: Increase in market prices for all purchases as-
    sumed at an 8% increase over 2011. Forecasted purchase price for three 3B/R assumed at $200K
    and one 4 B/R at $230K.
     Purchase Property 9: Refinance property 2 purchased in 2010 and assumed increase in value by
        10%. Current forecasted interest rate for the purchase of property 2 in 2010 is 6.25%. Again,
        because of improved market conditions, our forecasted refinance rate is 6.75%. Use equity
        proceeds from this refinance to fund down payment of new 3 B/R property with an assumed
        interest rate of 6.75%..
     Purchase Property 10: Refinance property 3 purchased in 2010 and increased in value by 10%.
        Current forecasted interest rate for the purchase of property 3 in 2010 is 6.25%. Use equity
        proceeds from this refinance to fund down payment of new 3 B/R property with an assumed
        interest rate of 6.75%.
     Purchase property 11 and property 12 : The down payment and closing costs will be funded
        with member contributions anticipated to be approx $102K. We have an assumed interest rate
        of 6.75% for both properties
 Pay out Capital Incentive twice per year if cash flow forecast is met. Full year forecast is $192K.
 Pay a recruitment fee to current members for recruiting efforts of 5% currently based on the addi-
    tional capital of $160,000 which represents $8,000.

 Additional Notes:
 If we are able to recruit more capital than our forecast is projecting, we will use these funds to fi-
   nance the down payment and closing costs of property 9 and 10 above. Also will look to purchas-
   ing properties at a lower offering price than forecasted and work to get a more favorable interest
   rate on properties. Continue to examine purchasing new properties in other locations to help diver-
   sify our holdings if conditions meet Health and Wealth of Dutchess County, LLC criteria.
 If in 2011 it was not feasible to hire maintenance manager, we will consider hiring him in 2012.
   Again same weekly pay of $250.00.
 If we were unable to contract out lawn maintenance in 2011, will again see if this is possible in 2012
   with the addition of new properties.




                                                                                                           21
                                   2013 Financial Notes
    Revenue and Member Capital Assumptions:
    Kept vacancy rate same YOY at 9%.
    Kept new membership capital additions at 2012 levels of $160K . Anticipated growth in membership is 16
     based on each new members contributing $10,000. Original members required to meet minimum of
     $2,000 per year as per operating agreement and would provide additional $102,000. Total anticipated
     membership at end of 2013 is 67.
    Have not assumed any attrition from the LLC but will maintain cash on hand of 15% to meet any attrition
     that may occur.
    Balance Sheet Assumptions:
    Forecasted to purchase 5 new properties: Held interest rates at 2012 levels.
    Purchase price used in assumption is: two 3 B/R's at $212K up slightly over 2012 and two 4 B/R $230K
     held at 2012 levels.
    All properties purchased in 2013 will be purchased with member capital. Anticipated closing costs will
     consist of 25% down payment and closing costs of $8K per property. This will require $221K and $32K
     respectively of member capital. Mortgage interest rates for all properties are assumed at a 6.75% level.
    Pay out Capital Incentive twice per year if cash flow forecast is met. Full year forecast is expected to be
     $218K.
    Pay a recruitment fee to current members for recruiting efforts of 5% currently based on the additional
     capital of $160,000 which represents $8,000.
    Additional Notes:
    We will research the opportunity to purchase new properties in other location if conditions meet Health
     and Wealth of Dutchess Cty, LLC criteria.
    Considering selling 2 homes on market in the middle of year if conditions permit. Assuming a sale in 2014
     of 20% gain based on our exit strategy.
    Continue to negotiate interest rate and purchase price of additional properties.




                                                                                                               22
                                  2014 Financial Notes
Revenue and Member Capital Assumptions:
 Kept vacancy rate same YOY at 9.
 Kept additional new membership capital at 2013 levels of $160K. Anticipated growth in membership is 16
   based on each new members contributing $10,000. Original membership required to meet minimum of
   $2,000 per year as per operating agreement and would provide an additional $134,000 in contributions. To-
   tal anticipated membership at end of 2014 is 83.
 Have not assumed any attrition from the LLC but will maintain cash on hand of 15% to meet any attrition
   that may occur.

Balance Sheet Assumptions:
 Forecasted to purchase 4 new properties: Increased interest rates slightly in 2014.
 Held purchase price at 2013 levels, two 3 B/R's at $212K and two 4 B/R $230K.
 All properties purchased in 2014 will be purchased with member capital. Anticipated closing costs will
   consist of 20% down payment and closing costs of $8K per property. This will require $177K and $32K
   respectively of member capital. Mortgage interest rate for all properties are assumed to be 7.00%
 Pay out Capital Incentive twice per year if cash flow forecast is met. Full year forecast is expected to be
   $285K.
 Pay a recruitment fee to current members for recruiting efforts of 5% currently based on the additional
   capital of $160,000 which represents $8,000.

Additional Notes:
 In 2014, we will explore the possibility of going public. We will talk to various professionals as well as
   evaluate where we are as a business at this time. One of the main reasons for becoming a public company
   would be to expand our operations into the development area.
 Will look to purchase new properties in other location if conditions meet Health and Wealth of Dutchess
   Cty, LLC criteria.
 An option will be to put down 25% on each purchase as we should have the capital. We will need to see
   how our cash flow is at this time.




                                                                                                                23
          Recruitment and Capital Incentive Plan
In order for the business to continually grow, starting at the beginning of 2010 the Health and
Wealth of Duchess County LLC , has implemented a Recruitment Incentive Plan.

Recruitment Incentive
 Bring additional capital into the business.
 Help achieve Cash Flow Targets.
 For every new member that joins the HWDC LLC , a 5% recruitment bonus will be paid to
   the sponsor of that new member.
 The Recruitment Incentive Bonus will be paid on the last day of the following month if the
   new member makes the minimum requirement contribution of $2K .
 If the new member spreads out this payment through the year, the sponsor will not receive
   the recruitment bonus until the minimum requirement contribution of $2K is met.

Return of Capital
 The Return of Capital plan will be paid semi annually in August & January.
 The Return of Capital plan will be based on cash flow results for an upcoming year.
 The members will be provided the targeted cash flow projection for that year.
 A percentage of cash flow will be set aside to be distributed as Return of Capital if the tar-
   geted cash flow projection is met or exceeded.
 If the targeted cash flow projection has been met or exceeded, members will receive a Return
   of Capital based on the percentage of ownership.
 Any new member contributions made before 4/31 and 10/31 of any year will be counted as
   part of the next Return of Capital payout.




                                                                                                   24
                             Membership Growth

          Year              2008   2009     2010      2011     2012      2013      2014
Legacy Members Capital                     24,000    44,000   70,000    102,000   134,000
 New Additional Capital                   100,000   130,000   160,000   160,000   160,000
Total Capital Contributed                 124,000   174,000   230,000   262,000   294,000

   Legacy Membership         10     13      12        22        35        51        67
    New Membership                          10        13        16        16        16
         Growth
    Total Membership                        22        35        51        67        83
         Growth




                                                                                            25
                                 Closing Statements
Health and Wealth of Dutchess County, LLC is well positioned in a niche market to take ad-
vantage of current market conditions and a market that has unique characteristics and benefits.
The college market is affordable and exceptionally stable even in down markets. Although
people have been investing in college communities for some time, we believe we have a sound
business model that will allow us to take advantage of a market that is fragmented. The combi-
nation of a business opportunity for potential investors and students seeking alternatives to the
campus housing life creates a unique business dynamic. Data supports growing college enroll-
ment and a lack of off campus housing to fulfill housing requirements. This is especially true at
Coastal Carolina University were we currently have a business foothold. The college anticipates
a growth rate from 8,000 students in 2009 to 12,000 by end of 2012. Although we see an in-
crease in new construction of off campus housing, it will not be enough to accommodate the
anticipated growth in attendance. As we grow and expand our business to other states, we will
research similar characteristics as in Coastal Carolina University, where there is a growing en-
rollment population and demand for off campus housing. We have grown our rental income
from 2008 to 2009 by 237% and anticipate growing our gross income through 2014 by an aver-
age of 40% YOY. We are forecasting additional $1.2M in member capital over the next 5 years.
We have implemented initiatives that we believe will help us grow our capital to meet these ob-
jectives. These initiatives are the "Recruitment Incentive Plan' and the "Capital Return Plan".
Several initiatives have been implemented that will allow us to better manage our business. Our
organizational structure takes advantage of our memberships experience and the ability to focus
on areas where they have past business experience. We are focused on managing costs. We are
in the process of consolidating our home insurance under one umbrella policy as this will pro-
vide significant cost savings. Our strategic objectives are to continue growth membership and
capital, purchase homes in selected college markets and seek business opportunities that drive
growth. We will look to diversify our portfolio of assets into new markets and to grow by mer-
gers and acquisitions in this fragmented market. We see a great opportunity to consolidate this
market. Our first two years of business provided challenges and learning experiences that have
truly allowed us to realize the outstanding potential for our investors. We believe we are well
positioned to take advantage of the opportunities that current real estate markets present now
and in the future.
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