Pinyon Mesa Proposal

Proposal

Development: Pinyon Mesa

Closing Date: March 2014

CLICK ON BLUE LINKS FOR VIDEO PRESENTATION

Introduction: http://youtu.be/ajnVnfx0lL8

Subdivision actual land Video: http://youtu.be/QCsWTesm_yc

Design of subdivision Video:   http://youtu.be/Z5lXLHuODKk

Valuation Video:  http://youtu.be/fKxhhQ0pKZ4

Purchase Price: $960,000.00,   TOTAL  Loan: $1,920,000.00 (can potentially use bank financing for lot construction, acquisition must be cash!)

Lot finish construction: $30k, times 32 lots $960,000.00 (some refunds here $142k!)

Private equity partner/lender will recieve 12% interest on the loan balloon at B side closing. March-March 2015, 12 month note = $230,400.00 interest one year

Principle and Interest paid first = $2,150,400.00

Plus a profit share of: 50%, after first 4-8 homes pay for the initial principle & interest.

Profit share is approximately $250,000.00 per home, 28 homes = $7,000,000.00!

Summary Overview: THESE LOTS WERE SELLING FOR $180k retail, phase 1

The subject property is in a desireable area south of Glenwood Springs, one of the hottest areas for affordable housing in this valley which boasts the worlds largest hotsprings, the worlds greatest ski areas and most photographed peaks. The home is being built to the low-high end. The neighbors are over $600k and have same types of homes. Solid value here up to $700k, if we wanted to really push the market.

Trends are up in the last year in this area. FHA pushed limits over $600k in this area.

There is a demand that is very favorable, maybe a 45-90 day absorbtion rate, in the slowest part of the season…….we will presell homes at various price points: $450-700k,  and build to suite.

Exciting, solid, approved, Investment. Exclusively available with us currently.

Summary Development:

Great location, area has been in a rising trend. Subject property is in a desirable area within walking distance to bus stop and .8 mile to 82.

Design: The post and beam style framed homes with contrasting finishes on the exterior to add appeal, 2,000- 3,000 square feet, 2 car garage. We can build for $100 per square foot and sell for $225-250 per square foot.

The development is turnkey, needs roads to be finished and the water, sewer, utitlities and gas brought to each lot, about a 3rd done.

All bids are in for horizontal development. We have crews in place for vertical development. Build out in 2-4 years total.

Construction is about $200-300k per home average with a sales price of $450-650k (50-60% of sales value)

The LLC taking ownership can use the land for collateral and use a local bank for a  construction loan. We have a good Lender at ANB bank.Equity partner to own LLC.