Ansco Realty, Inc. Multifamily Specialist

Scot Horton 6565 America’s Pkwy #200

Albuquerque NM 87110 (505) 275-9700

Ansco96@msn.com

8.2% cap rate (8.5% ave 2015-2017) 12 1br 448 sf (appx) individual gas & elec meters New Roof Nov 2016 Conveniences within walking distance Surrounded by homes

Casa Lynne

Asking $395,000

12 units

Albuquerque NM 87105

386 57th St NW

Please do not disturb or talk to the manager or residents. Contact Scot Horton 505-275-9700 or Ansco96@msn.com.

Can add 24 unit complex 2 blocks away for 36 unit

Property Data

386 57th St NW Units 12

Casa Lynne

Site

Land (appx) 12,960

Zoned C2 & R2 (per zone atlas page)

Map

Legal

Building

Gross Bld (appx) 5,716

Construction Slump Block / Stucco

YOC (appx) 1976

Roof Flat /

Floors 2

Parking Off Street

Amenities

Pools

Disposals

DW

FP

Utilities

Meter Paid by:

Elec Indiv meters but LL paid LL

Gas Indiv meters but LL paid LL

W,S,T Master LL

HVAC

Heat Gas

Hot Water Gas

Cooling Evap

Taxes 2016 $2,694.00 (per assessor)

ANSCO REALTY, INC.6565 Americas Pkwy NE Suite 200Albuquerque, New Mexico 87110(505) 275-9700 Ansco96@msn.com

Information presented has been obtained from sources believed to be reliable; however, we do not accept responsibility for its accuracy or for

the formulas utilized and strongly encourage the verification of all data and computations.

Casa Lynne 386 57th St NW

Units 12

Asking $395,000 REFI

Down $98,750 25%Type No. Ave Rents $/SF Appx SF Str Rents Projected 2018 Notes Util

1br-1 bth 2 $475 $1.06 448 $485 $500 indv gas & elec meteres but LL pays all

1br-1 bth 10 $485 $1.08 448 $485 $500 indv gas & elec meteres but LL pays all

Common Area 366

TOTAL 12 $5,800 $1.01 5,742 $5,820 $6,000 SF may not be correct

Proforma 2017 Projected 2018

Rents $69,600 $72,000 CAP Rate - 2017 8.2% Proforma

Vac Allowance 5.0% $3,480 5.0% $3,600 CAP Rate - 2018 8.4% Projected

Laundry/ Vend / Misc $245 $250 Price/Unit $32,917

Other Price/SF $68.79

TOTAL INC $66,365 $68,650 Ave Unit SF 448

Fixed Expenses RE Taxes new est based @ 75% of Price Elec LL Pd / Indv elec meters

RE Taxes Current 2016 $2,694 Projected 2018 $4,201 Gas LL Pd / Indv gas meters

Insurance $3,856 $321 per unit $3,850 $321 W,S,T LL

Gas & Elec $7,641 $53 per unit / mo $7,750 $54

W S T $4,018 $28 per unit / mo $4,000 $28 Heat Gas

Ph/Fax / www $0 per unit / mo $0 $0 Hot Water GasTOTAL FIXED 26% $18,209 28% $19,801 Cooling Evap

Operating Expense Allowances [Pro-Forma] YOC - appx 1976

Maint 9.5% $6,600 $550 per unit 9.2% $6,600 $550 Roof Flat / New 2016

Replacements 4.3% $3,000 $250 per unit 4.2% $3,000 $250 Floors 2

Mgmt 7.2% $5,000 6.9% $5,000 Amenities

Admin 0.9% $600 0.8% $600

Ads 0.0% $0 0.0% $0 Disposals

Leg / Acct 0.4% $300 0.4% $300 DWMisc 0.4% $300 0.4% $300 FP No

OPS ALLOW 22.7% $15,800 21.9% $15,800

Expenses 48.9% $34,009 49.4% $35,601 Parking Off-Street

Per Unit $2,834 $2,967 Map J-11

Per Sf $5.92 $6.20 Zoned C2 & R-2 per ZAP J-11

Exp % 49% 49% Land - appx

NOI $32,356 8.2% Cap Rate $33,049 8.4%

Interest $14,072 $14,072

Profit $18,284 $18,977

$98,750 18.5% $98,750 19.2%

1st Yr Principal Pd $6,332 $6,332

Cash Flow $12,088 $12,781

Cash on Cash before Depr $12,088 12.2% $12,781 12.9%

Dep/Tax Bracket 30% $3,663 example only / consult tax advisor $3,663

Cash on Cash after Depr $15,751 15.8% $16,444 16.5%

GRM (w/o G&E) 6.4 6.1

Ave Rent $483 $500

Ave SF 448 448

Ave Rent/SF $1.08 $1.12

Debt Ratio Coverage 1.60 1.63

APPX LOANS % YRS MO PMT YR PMT YR INT DUE

Projected New 4.750% 25.0 $1,689 $20,268 $14,072 5 yrs

This data and projection may not be correct. Broker does not warrant data accuracy and disclaims any liabilty for such. Buyer must personally verify all information.

Return on Investment on:

$296,250

INFO

Mkt Estimate

BALANCE

ANSCO REALTY, INC.Scot Horton Multifamily Specialist 6565 Americas Pkwy NE Suite 200Albuquerque NM 87111Ph (505) 275-9700 Ansco96@msn.com

PROFORMA ANALYSIS ONLYPRELIMINARY UNCONFIRMED INFO

Please do not talk to residents or manager. Offer "Subject to Inspection" NM Broker #9975 Pro-Forma Projection: 8/2/2017

EXPERIENCE ● ANALYTICAL SKILLS ● PERFORMANCE

12u 386 57th St NW Ansco Realty, Inc

EXPERIENCE ● ANALYTICAL SKILLS ● PERFORMANCE

12u 386 57th St NW Ansco Realty, Inc

Please do not disturb or talk to the manager or residents.

EXPERIENCE ● ANALYTICAL SKILLS ● PERFORMANCE

12u 386 57th St NW Ansco Realty, Inc

EXPERIENCE ● ANALYTICAL SKILLS ● PERFORMANCE

12u 386 57th St NW Ansco Realty, Inc

EXPERIENCE ● ANALYTICAL SKILLS ● PERFORMANCE

12u 386 57th St NW

Ansco Realty, Inc

EXPERIENCE ● ANALYTICAL SKILLS ● PERFORMANCE

12u 386 57th St NW Ansco Realty, Inc

Albuquerque NM founded in 1706

Population (MSA) 903,000 Median age 35.3 Elevation 5,326 feet Area 187.76 sq miles Temperatures July (92-65 F); Jan (47-23 F) Sunny days 304 CPI 94% Major Employers Kirtland AFB (Civilian) 17,125 Sandia National Laboratories 12,200 University of New Mexico 15,835 Albuquerque Public Schools 11,700 City of Albuquerque 6,940 Presbyterian Hospitals 5,800 State of New Mexico 5,660 Lovelace Sandia Health 5,400 Kirtland AFB (Military) 5,240 Intel Corporation 1,900 Fidelity Investments 1,125 Schott Solar Fraunhofer GAP Inc. Hewlett-Packard Tempur-Pedic Ethicon Raytheon General Mills Goodrich Aerospace Verizon Wireless

that passed in the 2

May 10, 2017 Sandia National Laboratories was just ranked #20 best places to work by Forbes. Sandia Labs employs about 12,2000 and works on a variety of national security engineering issues, including cyber security.

September 15, 2016 Facebook announced it is building a massive 500,000 sf data center in Los Lunas, just south of Albuquerque. This could lead the way for other large high tech projects in the future.

August 24, 2016 Sandia National Laboratories’ annual budget is expected to grow in fiscal years 2017 and 2018 to $3.15 billion. The increase, in part, reflects the lab’s heavy involvement in nuclear weapons modernization programs. “It’s the biggest nuclear program in 20 years”

June 30, 2016 Safelite Auto Glass bringing 900 jobs and nearly $23 million in payroll to Rio Rancho The insurance claim and support center will open at the beginning of next year, and Safelite will begin hiring employees for the center in the fourth quarter of this year.

May 12 2016 Albuquerque rent hike among the highest in the country –Albuquerque Biz Journal Abodo.com, a website that hosts rental listings, says in May the Albuquerque rent rose the 8th highest in the US with a 5% increase and jumped 10% in December

May 26, 2016 Fidelity Investments will be hiring 250 more employees to expand its Albuquerque workforce from 875 to 1,125 in their 216,000-square-foot building in Mesa Del Sol.

March 28, 2016 Innovate ABQ debuts first building phase University of New Mexico Board of Regents have announced the first phase of the project - a 159,000-sf mixed-use building The Innovate ABQ site is to be a complex for entrepreneurs - billed as a future hub for research and innovation.

January 4, 2016 Kirtland Base Air Force Directed Energy Laser Weapon Systems Research Laboratory High-energy electric lasers will be a step closer with the demonstration of a 150-kw weapon designed to be installed on the U.S. Navy's Arleigh Burke-class destroyers..

November 30, 2015 Skorpios Technologies Inc. an Albuquerque based start-up appears to have a tech home run on its hands. They have developed a process for merging silicon with traditional materials used in optical communications – a fundamental breakthrough such that it is setting up a 50,000 sf production facility in Albuquerque and is ramping up its workforce to 300 by 2017.

September 21, 2015 ATA Aerospace in Albuquerque won a five-year contract this month worth up to $505 million with NASA’s Goddard Space Flight Center

April 2, 2015 SolarCity, the nation’s biggest installer of solar photovoltaic systems, inaugurated a new 18,000-square-foot operations center on Albuquerque’s West Side Thursday morning, offering a hefty boost to New Mexico’s rapidly expanding solar industry.

Albuquerque NM Pop 903,000 (msa)

ALBUQUERQUE, N.M. — After months of public speculation and more than a year of quiet negotiating efforts by state officials, Facebook has announced it will build a massive 500,000 data center in Los Lunas, just south of Albuquerque.

Massive Facebook Data Center is Under Construction !

A rendering of the Facebook data center that will be built in Los Lunas. (Source: Facebook)

Best month for job creation in ABQ metro since ’07

By Ellen Marks / Assistant Business Editor Published: Tuesday, April 26th, 2016 at 11:26am (Roberto E. Rosales/Journal)

Job seekers check out opportunities at a recent job fair at Journal Center. The Albuquerque metro area in March posted its best job numbers since 2007.

The Albuquerque area had more year-over-year job growth in March than it has seen since May 2007, according to state figures.

The growth amounted to 1.6 percent, or 5,900 jobs, compared to March 2015, the Department of Workforce Solutions reported.

“The big picture is that Albuquerque is sustaining a reasonable, even relatively strong, rate of growth” said Jeff Mitchell, director of the University of New Mexico Bureau of Business and Economic Research. “This past month was one of the strongest months we’ve seen.”

A large part of that growth was in private-sector jobs — an increase of 4,800 jobs, or 1.6 percent — bringing good news to a state trying to reduce its reliance on government employment.

But one major reason for March’s good news was that the government sector also grew, by 1.3 percent, and that helped to halt a trend in which loss of government jobs was “eating up” any gains among private businesses, Mitchell said. The growth was in state government, while local government employment was down 0.2 percent, the state report said.

Another big factor in Albuquerque’s favor was the boost in education and health services jobs. With an increase of 4.4 percent, in March, that sector has seen continual growth since July 2014.

Leisure and hospitality jobs grew by 3.5 percent, after seeing no gains between last October and February. Retail trade employment rose slightly at 0.5 percent. That sector “has seen some large fluctuations in growth of late, though the industry avoided losses throughout 2015 and has avoided losses in 2016 up to this point.”

Nuke work continues to fuel Sandia growth, Hruby says By Kevin Robinson-Avila / Journal Staff Writer Published: Wednesday, August 24th, 2016 at 10:29am ALBUQUERQUE, N.M. — Sandia National Laboratories’ annual budget is expected to grow slightly in fiscal years 2017 and 2018, lab director Jill Hruby told the Albuquerque Economic Forum on Wednesday morning. The budget already grew by about $100 million this year, to $2.9 billion. It’s expected to reach $3.1 billion for the 2017 fiscal year, which begins Oct. 1, and then $3.15 billion next year, Hruby said. The increase, in part, reflects the lab’s heavy involvement in nuclear weapons modernization programs, including the air-launched B61 nuclear bomb, the W88 missile designed for submarine launch, and the ground-launched Mk21 intercontinental cruise missile. The lab is also involved in initial design conceptualization for the W80-4 life extension program, and modernization of the Mobile Guardian Transporter used for ground transportation of nuclear weapons. “It’s the biggest nuclear program in 20 years,” Hruby said. “We’re instituting the daylights out of it…All the programs are on schedule, on cost and on requirements.” Adding in lab involvement in energy-related research and development, plus other national security programs such as cyber defense, it’s a busy time for Sandia, Hruby said. “We’re busy at the lab when the world is a crazy place, and the world is a crazy place, so we’re doing well,” she said. The lab currently employs about 10,600 regular staff, although about 600 more contract employees and post doctoral researchers work at the lab as well. In the last five years, the lab has hired about 3,300 people to replace retiring workers or to staff-up programs. More than 1,000 of those came from New Mexico universities, Hruby said. About $1.7 billion, or nearly 61 percent of the lab’s annual budget in FY 2015, went toward payroll. Another $980 million was spent on contracts outside the lab, with nearly $382 million, or 38 percent of total contracts, going to New Mexico businesses. Most of that went to small-sized businesses, accounting for about $259 million, or 68 percent, of the money channeled to in-state companies last year. The lab plans to upgrade some aging infrastructure in coming years, particularly facilities connected to Sandia’s Microsystems and Engineering Sciences and Applications, or MESA, complex, which is now being retooled. On average, most buildings at the 70-year-old lab are nearly 40 years old. “MESA is reaching the end of its life,” Hruby said. “We’re looking to rebuild it.” Sandia also stepped up its efforts in recent years to commercialize new, innovative technologies. From FY 2012 to FY 2015, invention disclosures by Sandia scientists grew 27 percent, Hruby said. Patent filings rose 70 percent, open source software downloads 21 percent, and commercial licenses for Sandia technology 18 percent.

Fidelity getting set to hire 250 at Mesa del Sol By Kevin Robinson-Avila / Journal Staff Writer

Thursday, May 26th, 2016 at 2:13pm

ALBUQUERQUE, N.M. — Fidelity Investments plans to hire 250 more employees for its operations at the Mesa del Sol master-planned community in south Albuquerque in the coming months.

The financial firm, which launched operations in New Mexico in 2008, will expand its local workforce from 875 to 1,125, said David Hupper, senior vice president and regional leader for Fidelity, at an event attended by Gov. Susana Martinez and other state and local officials on Thursday.

All the new employees will be located at the company’s Mesa del Sol facility, a 216,000-square-foot building that Fidelity has occupied since December 2008. The company also operates an “investor center” in Uptown Albuquerque.

Most of the new employees will work in customer and client services and in operations to support 401(k) retirement plans and health savings accounts that Fidelity manages for corporate clients and their employees nationwide, Hupper said. The company, which employs about 45,000 people in the U.S. and elsewhere, had about $2 trillion in managed assets as of April 30.

“We’ve already begun sourcing the new jobs,” Hupper said. “We’re reviewing résumés now and screening candidates. … We’ve known for years New Mexico has a strong workforce, and we’re pleased to offer these competitive jobs that come with the opportunity to grow careers.”

The jobs offer salaries that start in the mid-$30,000 range for entry-level employees, plus a full slate of benefits. Those include tuition reimbursement for workers who want to further their education under a company program that began in February. Fidelity offers $2,000 a year for up to five years, or up to a total of $10,000, in tuition reimbursement for employees seeking degrees. About 115 local employees are currently taking advantage of it.

The new jobs come on top of 300 local positions Fidelity has added in the past two years. The company has chosen to expand in New Mexico because of the state’s quality of life, Albuquerque’s talented and diverse labor pool, and Fidelity’s excellent relations with state and local officials, Hupper said.

Innovate ABQ debuts first building phase — a $35 million one Mar 28, 2016, 2:15pm MDT Stephanie Guzman Reporter Albuquerque Business First

forthcoming six-story building to be constructed Courtesy University of New Mexico Eight months after selecting a development team to create East Downtown's Innovate ABQ, the University of New Mexico Board of Regents have announced the first phase of the project — and it's a big one. On tap is a 159,000-square-foot mixed-use building that centers around Innovate ABQ's live-work-play concept. The Innovate ABQ site is to be a complex for entrepreneurs — billed as a future hub for research and innovation. A rendering shows Innovate ABQ's forthcoming six-story building to be constructed just north of the old First Baptist Church, which is on the northwest corner of Central Avenue and Broadway Boulevard. The development team — Signet Development, Goodman Realty Group and Dekker/Perich/Sabatini — are set to construct a six story building with offices, education and retail spaces on the ground floor, and 155 apartments above. The $35 million building will be constructed just north of the old First Baptist Church, which is on the northwest corner of Central Avenue and Broadway Boulevard. "We want this to create a catalyst to draw businesses and individuals, and also to create the 24-hour environment on the site," Perry said. "We're trying to create that vibrancy of a mixed-use project and we think this will be the catalyst that will attract businesses here.

Sandia Labs tech aims to root out 'bad apples' in cybersecurity Mar 24, 2017, 7:56am MDT

PHOTO COURTESY OF SANDIA NATIONAL LABORATORIES

Sandia National Laboratories’ Roger Suppona, left, and John Naegle, center, and Lewis Rhodes Labs CEO David Follett examine their Neuromorphic Cyber Microscope. This small processor can replace racks of conventional cybersecurity systems.

Sandia National Laboratories and their partner have created and sent to market cybersecurity tech that can judge whether something is a threat to your company.

Scientists at Sandia Labs and Lewis Rhodes Labs developed the Neuromorphic Cyber Microscope, a cybersecurity processor that mimics the human brain to find threats in computer networks. The small processor, which recently went to market, can get more done with less electricity and space than conventional security systems, according to a release on the hardware.

The cyber microscope, while not an actual microscope, was created to recognize patterns like humans can. And of course, it was inspired by a neuroscientist, Lewis Labs co-founder Pamela Follett. Her husband, Lewis co-founder and CEO David Follett, ran with her research on developmental diseases and developed the microscope to process information like the human brain.

Once the hardware was built, Sandia came in and ultimately decided this technology and its functions were best fit for cybersecurity purposes.

“We quickly realized that we could use this architecture to greatly accelerate our ability to look for patterns and even look for complex versions of these patterns,” said John Naegle, a computer systems expert with Sandia.

David Follett told Albuquerque Business First the product is ready to be adopted by businesses far and wide. Prices start at $20,000 per system.

“Having demonstrated that we can mimic some of the brain’s unique ability to process information with the Neuromorphic Data Microscope, we expect the technology to advance rapidly, revolutionizing the way we build and use computers," he said.

The microscope, which resembles a small motherboard more than anything else, searches data entering computer systems for dangerous familiarities. Typical systems meant to serve a similar purpose match small chunks of known threats to a library, which Naegle said is less efficient.

As the incoming patterns become more complex, the microscope adapts when other cybersecurity systems may have to slow down to process, the release states.

Large companies usually implement racks upon racks of high-usage cybersecurity hardware, but the microscope's developers say their product requires about the same amount of electricity as a 60 watt light bulb. It is said to be 1,000 times more energy efficient than the racks of usual security systems.

Sandia National Laboratories ranked No. 20 on Forbes' America's Best Employers list. May 10, 2017 May Ortega | Albuquerque Business First

Working at Sandia National Laboratories beats working at Disney, Microsoft and many more places, according to a Forbes list. The international business magazine ranked the labs No. 20 out of 500 large companies in its latest America's Best Employers list, published online Tuesday. This list looked at American businesses with 5,000 employees or more. Sandia Labs employs about 10,600 full-time workers and more than 12,200 total. Forbes worked with Statista to survey 30,000 American workers and ask how they liked where they work and how likely they were to recommend their friends and family work there as well. Sandia was the only New Mexico company and national laboratory to make the

list. It ultimately beat out a variety of massive businesses, such as NASA, Microsoft Corp. and The Walt Disney Co, who came in 37th, 50th and 156th, respectively. Costco Wholesale Corp., came out on top, followed by Google Why do Sandia's workers love it o much? Because they recognize the

unique responsibility they play in the country's national security, Sandia Labs' Human Resources Director Rob Nelson said. "We have this neat opportunity to offer challenging and meaningful work that impacts the nation," Nelson said. "Our employees love that connection with doing something very important while at the same time working in a community that has a good work-life balance and an opportunity to be with other amazing scientists and researchers and work on really tough problems." The structures of the labs' work weeks and days off aren't bad either, Nelson said. "We also offer a 9/80 work schedule which compresses the 40-hour commitment into fewer days so employees get every other Friday off if they choose to work that schedule," said Nelson, who has been at his post for almost 12 years. "Also at the labs we shut down for a week at the holidays. Rather than having a bunch of individual holidays throughout the year, we put them all at the end of the year."

New Mexicans invent device to detect suicide bombs worldwide Ryan Luby Updated: 04/14/2016 10:39 PM

The device is the size of a baking pan and sits atop a small tripod. It uses a small X-band radar -- the type of technology used in air traffic control and weather radars. But instead of tracking planes and storm systems, it can detect suicide vests and the things terrorists stuff inside them to kill people.

He partnered with a team of people at Sandia National Laboratories through the New Mexico Small Business Assistance program in 2013. Together, they're putting the finishing touches on the CBD-1000 -- a bomb detector. "What they would do is they would put explosives behind it, put it on their body, and then these bolts and nuts would project as shrapnel," J.R. Russell, one of the Sandia scientists said while demonstrating how the CBD-1000 works.

The device can detect both metallic and non-metallic shrapnel -- such as ceramic ball bearings. In use, the CBD-1000 scans someone in about a second and then transmits data to a custom piece of software, which determines if a threat is present or not. Russell said humans are essentially large bags of water. The CBD-1000 scans for any abnormalities in that mass -- such as a suicide bomb vest. He said it accounts for things like cell phones, wallets and laptops that people may have on them.

KOB witnessed how the device works. One of Russell's team members sported a vest filled with ceramic ball bearings and underwent a scan. "It says additional screening required, meaning the system found something on him that didn't look like a normal person," Russell said.

The team is in the process of fine-tuning the technology so it can scan a large, moving crowd at a distance of more than 100 feet using a dish that resembles a home satellite dish. Roberson said airports would likely be among the first customers. He said the device and technology associated with it would ultimately sell for anywhere between $50,000 and $100,000 -- markedly less than traditional body scanners found at airports.

Updated September 2015

10 Most Tax-Friendly States in the U.S. 8. New Mexico

State bird - Great Roadrunner Photo courtesy drumguy8800 via Creative Commons

State income tax: 1.7% (on income up to $5,500/individual, $8,000/joint)- 4.9% (on income of more than $16,000/individual, $24,000/joint)

State sales tax: 5.125%

Gas taxes and fees: 19 cents per gallon

Median property tax on New Mexico's median home value of $159,200 is $1,160 -- that’s the 12th-lowest in the country. New Mexico’s gas taxes are also low (and match neighboring Arizona).

Personal income tax rates in the Land of Enchantment top out at 4.9% on taxable income over $16,000 for single filers and $24,000 for married couples filing jointly. And if you’re over 100, you don’t have to pay state income tax at all.

The state levies a sales tax of 5.1%, which is imposed on businesses and typically passed on to consumers. County and city sales taxes can add up to 3.6%. The average combined local and state sales tax rate is 7.4%. Unlike most states, New Mexico doesn’t exclude food from sales taxes, although prescription drugs are exempt. Car buyers get a break, though: Sales taxes on motor vehicles are 3%, well below the overall sales tax rate, and localities don’t get a bite.

ABQ 7th in top 10 retirement cities Albuquerque has been ranked No. 7 in the country as one of the best cities in which to retire, according to Livability.com, an online resource about communities in the United States.

The site said Albuquerque was named among its top 10 retirement cities because it has “a high number of medical facilities, gyms, golf courses, and parks (that) provide many exercise options and ways to stay healthy.”

It also lists affordable housing, property-tax rebates, reduced bus fares that “help senior residents spend smart” and the location of senior centers throughout the city as reasons for its ranking.

“Not all seniors will move when they retire, but for those who do Livability wanted to suggest a range of options,” editor Matt Carmichael said in a news release. “As retirement itself is changing for many beyond a traditional idea of warm weather and golf, so too have our ideas of what makes a great retirement city.”

The site put together its ranking based on a variety of sources, including county health rankings, crime statistics, U.S. Department of Housing and Urban Development’s affordability index and Bureau of Labor Statistics

1. Springfield, Mo. 2. Knoxville, Tenn. 3. Bellevue, Wash. 4. Largo, Fla. 5. Wheat Ridge, Colo. 6. Honolulu 7. Albuquerque 8. Tucson 9. Missoula, Mont. 10. Coeur d’Alene, Idaho

PROFITABLE OPERATIONS MID-SIZE APARTMENT BUILDINGS

1. Create Sharp Exterior or “Curb Appeal” Keep parking lot sweep very clean weekly. No debris and no oil spots left untreated. Eliminate auto’s in a state of disrepair. Remove all weeds over 1 inch tall, kill all vegetation in paved areas. Make the exterior “shine”. Install a small strip of grass (very green grass) in front.

2. The Interiors Should be 100% Rent-Ready If necessary, repaint, re-carpet, new vinyl, new counter tops, new doors, new fixtures. Demand excellent painting with no sloppiness.

3. Create and Control New Resident Traffic-Efficient Communications. Develop a sharp and sturdy “For Rent “ Sign. Use good signs to the location of the rental office Use a voice mail message with a simple advertisement for your vacancy. Use a cordless phone or a cell phone at the Property, and a cell phone for you. Use a resident with neat housecleaning as a back-up "Leasing Agent". Best to have always a "live person" handle all rental inquiries. Have For Rent Flyers with color pictures of interior in a brochure box next to rental office Schedule showings in blocks of time convenient to you.

4. Financially Screen Prospective Residents DO NOT DISCRIMINATE! Establish minimum acceptable financial criteria. Obtain a credit report and criminal background report. Try the WWW Verify Employment and Interview previous Landlord. Document all rejections.

5. Watch out for Murphy's Law (“What Can Go Wrong, WILL GO WRONG!”)

Murphy’s Law can be avoided by planning in advance. Anticipate turn-overs. Perform 6 month interior inspection of every unit in Summer and in Winter Perform 6 month exterior inspection in the Fall and in the Spring.

The owner should personally confirm these jobs are performed properly. As former President Ronald Reagan used to say, "TRUST BUT VERIFY".

Scot Horton is from Albuquerque New Mexico, having graduated from the University of New Mexico in Mathematics and Statistics, with additional hours in accounting. Scot Horton unquestionably understands apartments, from ownership to numerical analysis, he has the knowledge and experience to accurate assess the options available to owners and investors. Over the past thirty-five years, Scot Horton has been an active participant in numerous multi-family partnerships, exceeding the market in operational results. Considering apartments are “management intensive”, his highly organized management style, attention to detail, immaculate care, retention of top quality residents, and his "show how it's done" philosophy, has been indispensable for advising investors in their operations. He continues assisting his clients long after they have closed on their acquisitions. He attributes his results to his analytical skills, extensive market research, substantial negotia-tion experience, understanding the objectives each party is trying to achieve, and just plain old fashion hard work. Advanced Economic and Statistical Analysis Skills Sophisticated Utilization of Computer Technology Effective Marketing Program Detailed and Extensive Local Market Research Problem Solver and Solution Provider Highly Organized Relentless follow through

INVESTMENT REAL ESTATE Scot Horton Principal

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