Partnership Proposal: Residential

2015

Property Management

2

Our Mission

Real Estate Investing

“Buy land, they’re not making it anymore.”-Mark Twain

4

The Promises of Real Estate Investing

• Real estate compliments other investments and offers other attributes for investors to take advantage of in order to realize their long-term investment goals

• The real estate state market has been a prominent participant in all of the market advances and retreats over the past several decades, staying in lockstep with other investment products like stocks and bonds

• Real estate’s strength and variability has made it a desirable haven for investors not only seeking attractive returns but also security in an asset class that has enduring potential

Real estate has shown a timeless dependability as a destination for investors with disposable income seeking an above-average yield. General returns in real-estate offer a viable alternative to other short and long-term investment vehicles:

DiverseInvestment

Profile

REAL ESTATE

BONDS

STOCKS

OTHER INVESTMENTS

5

This Cycle’s Housing Recovery in Focus

“Foreclosure filings in January plunged to their lowest level

since April 2007”

"We're now well past the peak of the foreclosure crisis,"

– Daren Blomquist, RealtyTrac

“The Housing recovery gains strength”

“Barclays is forecasting a 6% to 7% price gain [in 2013], and 5% to 6% in

2014.”

6

Recent Real Estate Trends

Real estate has experienced a market a sector rebound nationwide with some of the once-racked markets enjoying a revival in sales, home values and overall investment sentiment.

Local Market Highlights

Rate of Housing SalesAUG 2012 vs. AUG 2013

Includes sales of new and existing homes

Northeast 16.7%

South 15.4%

Midwest 17.7%

West 5.5%

NATIONAL

13.5%

*Source: RealTrends.com

Kansas City - MO

• Median listing prices up 5.19% vs. AUG 2012

• Total listings down 5.46% vs. AUG 2012

• Median listing price: $142,000

Kansas City - KS

• Median listing prices up 2.19% vs. AUG 2012

• Total listings down 10.75% vs. AUG 2012

• Median listing price: $189,000

KCK

2.19% 5.19%KCMO

*Source: Realtor.com

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Advantages of Property Investments

The striking track record of consistent annualized returns over time tells the story of real estate. For property owners, those benefits are further buttressed by the advantages that property investments bring:

• Rental Income – Investment properties offer a steady drip of passive cash flow from rental income

• Rising Investment Values Over Time – The U.S. market’s nascent real estate recovery presents an ideal opportunity to invest in property that has headwind and room to grow

• Property Duality – Your investment property gives you the option of continuing to collect monthly income. You can use the increased equity to make additions to the property or invest in others, or to improve the property in order to realize its full value at a sale

• Inflation-Accommodating – The rise in prices is a natural function of the economy. This however plays well for investment property owners, as higher construction costs and housing demands result in greater need for rent

• Leverage – The use of a mortgage allows investors to multiply their purchasing power and amplify returns on cash

• Tax Deductions – Property investments qualify for a hoard of tax deductions related to the financing and maintenance of the property over the time of ownership

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Why 2014 is Ideal for Investors

TextNationwide supply of homes in

February of this year was down 22% from the supply in February 2012

Home prices’ rise has come on the back of the economy’s continued recovery,

which has lead to increases in hiring and household income

Rising monthly rents have made renters consider home ownership again

Rebounding prices have encouraged sellers to withdraw their properties from

the market rather than to sell at a loss

Growing demand is emboldening property owners, frequently placing prospective buyers in bidding wars

Mortgage rates have climbed from near historic lows to 4.5%, coinciding with a

rising economy

With segments of the American economy showing new verve, 2014 presents an attractive set of circumstances for potential property investors to take advantage of this window:

‘The housing recovery is behaving as it should. With interest rates at historic lows, rates will continue to move up in slight increases but it is not going to stop the progress forward of the housing recovery.’ – Lennar CEO Stuart Miller

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Pathway to Property Investing

Licensed partners and affiliates of Integrity Capital Management, LLC (ICM) bring years of experience to the real-estate buyers and can assess the goals of each potential client in order to ensure that the best and most desirable property investments are made

Real estate agents and consultants stand ready to share specialized property investment knowledge with potential clients eager to learn the virtues of purchasing promising properties and unlocking investment values towards passive and reliable income stream

Managing & Realizing Your Investment

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Ownership: A Part-time Occupation

Real estate has long been an ideal destination for investors to realize a stable stream of passive income. Such investments however require regular checkup to ensure that the property’s value is preserved during the long-term.

Property owners are often required to balance multiple obligations unrelated to the supervision of their investments. That in turn may afford them limited time for the nuances needed to ensure that their properties continue to generate reliable returns over time.

Advertising

Rental

Property

Vetting

Potential

Tenants

Collecting

Rent

Payments

Preparing

Taxes

Conducting

Regular

Inspections

Maintaining

Property

Upkeep

Stable Investment Returns

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The Solution: ICM Property Management

Integrity Capital Management, LLC (ICM) alleviates the burden of property ownership on residential and commercial investors by acting as both scout and sentry to the owner’s interest throughout the engagement period.

ICM recognizes investors’ desire to excel at finding promising opportunities in the marketplace, which makes their time extremely valuable. The more effort investors are able to devote to furthering their investment pursuits the better their time and returns will be.

As the owner’s property manager and investment advocate, Integrity Capital Management works to ensure that concerns over owners’ property’s wellbeing remain as passive to that

property’s owner as his or her investment income

• Lives far away from investment property • Is unable or unavailable to make frequent visits to the property• Owns multiple rental units and properties• Has limited experience with routine property maintenance and repairs• Is unable to quickly rent out a unit or property in event of any vacancy• Is unavailable to be on call 24/7/365 to tend to tenant needs• Is unfamiliar with current local and state laws governing landlords• Prefers to devote time and resources to other affairs

VALUE

ICM’s value is fully realized for the property owner with these circumstances:

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ICM Core Principles

Integrity Capital Management’s objective is to guarantee the preservation of the owner’s property over time and secure its continuous cash flow. ICM’s operations are rooted in four core principles:

Use of quality leads to

minimize vacancy cycle

Recommend ideal rent

rate to assure high

attraction and quicker

rental agreement

Ensure tight rent

collection process

Advise on capital

improvement needs

Maximizing Owner Cash Flow & Investment

Building Positive Tenant Relations

Triaging Maintenance & Upkeep Needs

Minimizing Liability & Risk

Build goodwill with tenant to:

Verify on-time monthly rental payments

Minimize property wear, tear, and repairs

Secure longer leases, fewer turnovers, and better tenant retention

Address property repairs and upkeep needs in a timely manner

Engage maintenance staff or proven licensed contractors when needed

Secure project discounts and economies of scale

Conduct full tenant background and credit histories

Perform routine inspections to guarantee property’s safety and wellbeing to reduce risks

Recommend liability insurance

Advise on latest tax benefits and deduction qualifications

1 2 3 4

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Value Proposition

Integrity Capital is committed to being the consummate partner in the guardianship of owners’ properties. The firm therefore offers an expanded set of solutions to give owners greater familiarity and transparency into their properties’ operations:

Traditional Property Management Functions

Initial Property Assessment

Capital Improvement Project Management

Regimented

Semi-annual report on property maintenance and conditions

Exit-Report with a summary of engagement and service evaluations

Integrity Capital’s Value

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Trilateral Relationship

OWNER(You)

TENANT(S)AGENT

(Integrity)

• Owner (You)o Have clearly defined goals and expectations

for your investment property and it’s dwellers

o Understand stated terms, agreements, and laws in the state’s property

o Offer preferences or courses of actions for advisement on property maintenance

• Tenant(s)o Understand and honor all rental terms and

agreementso Ensure the property’s general upkeepo Timely submit monthly paymentso Timely report maintenance requests

• Agent (Integrity)o Advise owner on property-related matterso Conduct property marketing and

prospective tenant screeningo Timely provide owner and tenant with

invoices and statements o Timely serve owner and tenant relevant

notices

Our Methodology

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Residential Engagement Lifecycle

Partnership

ReadinessOngoing Activities

Partnership

Establishment

Property Turnover &

Evaluation

• Meet with client owner and

understand needs and goals

• Sign Management Agreement

• Onboard owner

• Conduct Property Assessment

and follow-up on Capital

Improvement needs

• Advertise the property

• Present tenant findings to

owner for final selection

• Collect deposits from tenants

• Update owner on all relevant

move-in activities

o Tenant deposits

o Move-in kits

o Property cleaning, home

fixture, and other amenities

• Establish electronic or manual

payment system

• Provide Summary Profile of

each property dweller

• Provide monthly statements and rental payments

• Report maintenance and tenant requests as they arise and submit detailed Maintenance Record

• Provide semi-annual property updates

• Provide notable updates regarding property upkeep and tenant updates

• Confirm tenant’s decision to

vacate property at end of lease

• Conduct walkthrough of

property for defects and report

findings

• Discuss alternative paths

forward such as property sale

• Conduct Property Assessment

and ensure readiness for next

tenant

• Deliver Exit Report

• Advertise the property

• Collect leads and build tenant

registry (place on Tenant Map)

• Screen prospective tenants

• Perform walkthrough and

document results

• Administer background checks

on prospective tenants

• Perform final walkthrough and

review maintenance plan

• Sign lease agreement

• Request renter’s insurance

policy

• Establish electronic or manual

payment system

• Sign key agreement and deliver

property keys

• Deliver monthly rent invoices

• Fulfill necessary property

repairs as they arise and alert

tenants in the event

subcontractors are engaged

• Document occurrences and

incidents

• Maintain open and consistent

communication with tenant

• Perform final walkthrough

with property owner

• Close all accounts

o Settle financial accounts

o Collect keys

o Return eligible deposits

• Perform property inspection in

preparation for next tenant

Ow

ner

-Rel

ated

Act

ivit

ies

Ten

ant

–Rel

ated

Act

ivit

ies

Before Month 1 Month 1 Month 2 – 11 Month 12 and Beyond

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Quarterly Regimen

Party Month 1 Month 2 Month 3

PROPERTY

OWNER

PROPERTY

TENANT

INTEGRITY

CAPITAL

MGMT

The value that Integrity Capital brings in partnership with property owners and tenants is rooted on a regimented schedule of events designed to engage all parties during the regular and crucial intervals of the relationship

Make monthly rent payment

Upkeep property to agreed-upon standard and report any deficiencies

Make monthly rent payment

Conduct Property Inspection

Address property maintenance or safety requests as needed

Receive monthly rent payment

Receive monthly rent payment

Receive quarterly maintenance, tenant, and property report

Send monthly rent statement to tenant Send monthly rent statement to tenant

Receive monthly rent payment

Receive monthly rent payment

Send quarterly maintenance, tenant, and property report

Begin quarterly maintenance, tenant, and property report

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Integrity Tenant Map

One of the tools that Integrity Capital employs to keep a pulse in the rental market while reducing vacancy cycles for property owners is with the Integrity Tenant Map. This matrix is part of a larger tenant screening process and offers a quick glance at the prospect of a tenant so that they can be quickly matched to prospective properties based on their fit and means.

Each tenant lead appears on the Integrity Tenant Map for quick reference so that they can be later matched to vacant properties in Integrity Capital’s registry of properties

“Maturity Scale”

“In

com

e S

cale

”

Dep

end

ent

Ind

epen

den

t

Student Professional Senior

2

Student or minor withself-sustaining income

1

Student or minor dependent on parent or guardian for

steady income

4

Professional or adult withself-sustaining income

3

Professional or adult dependent on another

party for steady income

6

Senior earning self-sustaining income

5

Senior dependent on another party for steady

income

Next Steps

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5 Step Plan

Engage ICM and Begin

Management Relationship

Find and Close on

Investment Property

Arrange Consultation

With a Representative

From White &

Associates

Establish a Budget and

Engage Bank or Financial

Institution

Meet with Client and Identify

Investment Needs and Goals

12

34

5

22

Partnership Objective

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Partnership Pledge & Owner Resources

As partners in your property investment pursuits ,our trademark is to act not only as your property’s manager but also as your trusted advisors. Our goal is to make a habit of exceeding our clients’ expectations. We look forward to working with throughout the duration of our partnership, forging a partnership that will be rewarding and fulfilling for all parties involved

Please use all resources available to contact us regarding any matter:

Business CardWebsite Direct

Integrity Capital Management

816.759.0355

705 Suite B SE Melody Lane, #340Lees Summit, MO 64063

www.theintegrityexperience.com