FOR:

VACATION HOMES ON

JL. RAYA SANGGINGAN, UBUD, BALI, INDONESIA

Overview

Two vacation rental homes will be built on 218 sq meter (2,347 sq ft) of land at an existing, well maintained, well run boutique hotel complex in excellent location on Jl. Raya Sanggingan, Campuhan-Ubud 80571 Bali-Indonesia, only 1.3 km (3/4 mile) to Ubudcenter, close to restaurants, galleries, grocery store, yet with beautiful nature views. Secure parking space is available at the main parking area. A well run internet café as well as a restaurant exists on the premises. A walkway leads 120meters through the property, to the location site. On the way to the location site one passes through well maintained gardens, by a beautiful traditional Balinese house temple and a private residence. At the site two other buildings with four rental units already exist and are operating. A new 6 x 12 m (about 20 x 40 ft) swimming pool overlooks extensive rice fields backed by forest trees.

This project will finalize the development of the entire property. The units will overlook swimming pool, rice fields, huge forest trees and neighboring properties. The immediate neighbor is a developed boutique hotel with a swimming pool in view. The proposed floor plan units are two stories building with an all over size of 82.5 sq meter (888 sq ft) each. Each home is built furnished with two bedrooms, two bathrooms, dining room, fully equipped kitchen, living room with small office space. A little private garden surrounds every unit. The property is open to the surrounding gardens and pool area. The houses will be fully equipped with satellite TV, internet connection, air-conditioning of the bedrooms. Each unit will accommodate 4 to 5 people. Both homes are fully furnished and fully serviced. All common facilities: garden, pool, temple, restaurant, internet café, can be utilized by the tenants.

About Ubud, The Project Location

Ubud is a precious (“world heritage”) community with an alive and thriving population. Ceremonies, religious processions, dances andother performances and arts are abundant and genuine. Visitors are enchanted by the manifold of cultural expressions and the good life Ubud has to offer. There are hotels, spas, galleries, coffee shops, hundreds of little shops, the Ubud palace, the Ubud market, internet cafes, cultural performances, etc. The Balinese lifestyle mixes with the lifestyle of thousands of international expatriates and hundred thousands of tourists visiting the area, all set in a beautiful tropical landscape with endless rolling rice fields, backed by cone shaped volcanoes. Demand in vacation rental facilities has been extremely strong in the past few years.

Vacation Homes on

Jl. Raya Sanggingan, Campuhan, Ubud 80571, Bali, Indonesia

Project Description

The Management

The homes will be managed and marketed as vacation rentals. We, the owners, are already owning and managing a vacation rental

property in the same area only 300 meters from the proposed new project with an occupation rate of up to 96.5% (see website:

www.villamountainview.com) as well as a small residence in Ubud for long term rental, used as a doctor's office. For a third vacation rental

property also in Ubud, see website (www.villayehbayu.com) we are providing the marketing as well as the bookings. Below is a chart

showing occupancy rate for three years of operation for two of our properties. Notice that Villa Yeh Bayu only started it’s operation in

2009 and the occupancy rate is already high.

Local On-Site Assistance

We appointed our local property manager and caretakers who are in charge for managing, cleaning, working the garden and pool, and

are also providing transportation service for our guests. This established local staff will also be taking care of the newly planned vacation

rentals.

Management and

Local On-Site Assistance

Vacation Homes on

Jl. Raya Sanggingan, Campuhan, Ubud 80571, Bali, Indonesia

0%

50%

100%

150%

2007 2008 2009

Villa Mountain View

Villa Yeh Bayu

Long Term House Rental

Photos of

Existing Boutique Hotel Complex

Floor Plan

First Floor

Second Floor

Floor plan with partial surrounding lay out

Area Lay Out

Ubud Map with Project Location

Each of the two vacation rental homes will be rented at a low season rate of US$490 per week (7 nights) for a two people occupation and US$690 per week (7 nights) in high season for a two people occupation. Every additional occupant will be charged at US$10/adult and US$5/child under the age of 12 y.o. Single night bookings are US$120.-/night. Adjustments of rental fees depending on the market situation are possible and decided by The Management. The pricing scheme above results at possible average turnover of approximately US$60,000.00 a year for both units. All bookings are going to be transparent and visible to the investor. Investment contracts to be established.

The investment choices are in US$50,000 and US$100,000. Building time is estimated to completion approximately 4 – 6 month. The investment is offered for the period of 20 years. This is purely a financial investment model, not a home site sale. But as mentioned above, all bookings are going to be transparent and visible to the investor. Investor is entitled to a two weeks stay a year free of charge in one unit for a 2 people occupation. Booking for this free week and acceptance of booking is based on availability. This time can also be accumulated for up to 2 years (stay of 1 month). There is no collateral given to the investor.

The basic idea of return for a US$100,000 investment is a 30% return of the turnover is paid to the investor until the initial investment sum of US$100,000.- is paid back. This should be accomplished in approximately 6 years after the resort opened. Payment will be made on a six months bases. After the initial US$100,000 investment sum is paid back, the payment will be set at 15% of the yearly turnover until year 20. Investor covers cost of money transferring charges when occurred. For a US$50,000 investment, a 15% return of the turnover is paid to the investor until the initial investment sum of US$50,000 is paid back. This should be accomplished in approximately 6 years after the resort opened. Payment will be made on a six months bases. After the initial US$50,000 investment sum is paid back, the payment will be set at 7.5% of the yearly turnover until year 20. Investor covers cost of money transferring charges when occurred.

The property will be fully managed, maintained and marketed by The Management. The investor is not charged any maintenance and operation fee. The investor will not have any influence in any architectural, sales and marketing, room rate, management, or any other decisions of how to run the property. The actual charges to guests might be adjusted to market situations at different times of the contract length. The investor takes full risks in unknown future market situations, world economy situation, possible unforeseen factors which would reduce tourist numbers, and other unseen developing eventualities. Obviously it is in the owner’s best interest as well to make this a good functioning business with high returns. The owner/developer promises to execute the building as well as managing and marketing the property to his full knowledge and experience.

Proposal Overview

Vacation Homes on

Jl. Raya Sanggingan, Campuhan, Ubud 80571, Bali, Indonesia

Based on:

* Two choices of investment amount US$50,000 and US$100,000

* For US$50,000 investment, scheme of payment is 15% of gross rental revenue until initial investment paid back and 7.5% onwards until year 20.

* For US$100,000 investment, scheme of payment is 15% of gross rental revenue until initial investment paid back and 15% onwards until year 20.

* Investor receives monthly or yearly income payment based on certain percentage from gross rental revenue

* In addition to the income payment, investor also receives free stay at one of the homes for 2 weeks per year¹

Year 1 Year 2 Year 3 Year 5 Year 5 Year 6 Year 7

Average rental rate per unit 84.29$ 84.29$ 84.29$ 84.29$ 84.29$ 84.29$ 84.29$

Average occupancy 50% 95% 95% 95% 95% 95% 95%

Total gross revenue 30,175.82$ 57,334.06$ 57,334.06$ 57,334.06$ 57,334.06$ 57,334.06$ 57,334.06$

(1 unit for 351 nights, 1 unit for 365 nights)

Less: operating expenses

Total gross rental revenue 30,175.82$ 57,334.06$ 57,334.06$ 57,334.06$ 57,334.06$ 57,334.06$ 57,334.06$

Accumulated rental revenue 30,175.82$ 87,509.88$ 144,843.94$ 202,177.99$ 259,512.05$ 316,846.11$ 374,180.17$

Amount received by investor:

with amount of investment 50,000.00$

percentage 15% 15% 15% 15% 15% 15% 7.5%

by year 4,526.37$ 8,600.11$ 8,600.11$ 8,600.11$ 8,600.11$ 8,600.11$ 4,300.05$

accumulated 4,526.37$ 13,126.48$ 21,726.59$ 30,326.70$ 38,926.81$ 47,526.92$ 51,826.97$

with amount of investment 100,000.00$

percentage 30% 30% 30% 30% 30% 30% 15%

by year 9,052.75$ 17,200.22$ 17,200.22$ 17,200.22$ 17,200.22$ 17,200.22$ 8,600.11$

accumulated 9,052.75$ 26,252.96$ 43,453.18$ 60,653.40$ 77,853.62$ 95,053.83$ 103,653.94$

Subject

Duration Estimate

Investor will not be charged with any operating expenses

Investment Calculation

For US$50,000 investment:

15% monthly rental rate assumed from accumulated rate until year 5: 648.78$ per month

With above assumption, ROI is gained within: 77.07 months or equal to 6.42 year

Total accumulated amount received is: 107,727.68$

Interest / income earned: 57,727.68$

For US$100,000 investment:

15% monthly rental rate assumed from accumulated rate until year 5: 1,297.56$ per month

With above assumption, ROI is gained within: 77.07 months or equal to 6.42 year

Total accumulated amount received is: 215,455.35$

Interest / income earned: 115,455.35$

Summary of Investment Calculation

This is a return of 215% PLUS:

Investors get a free 2 weeks stay in one home, AND

Investment amount and investment income is earned immediately upon project launching

Thank you for reviewing

our proposal

Contact us at:

greatvillaubud@yahoo.com