Associated Property Solutions

Business Plan

Mission Statement

We will provide high quality property management services that are dedicated to the owners goals and objectives. Our growth will be by referral and targeted marketing.

The Team

David J. Fortune CPM®

-20 years property management experience in office buildings and Bank facility management for National City Bank. Managed a portfolio of up to 211 locations and ranging from 125 years old to new construction. President elect (2005) IREM West Michigan chapter.

Kerry Baumgartner-10 years in various roles at National City bank, including

Facility Manager for a portfolio of 40 locations throughout Central Michigan. Facility call center supervisor for 3 years for properties located in Illinois, Michigan and Indiana.

Market Summary

The target marketBusiness manager in a non-core function In house managementOwner management

Market Summary

Target Core clients CSM GroupWSI HealthEPI Printers, Inc.Mid-link Business Park

Market Summary

Target ClientsCommunity and regional Banks and Credit

UnionsCSM Group past and future customersOffice building owners in Southwest

Michigan

Opportunities

Need for quality light duty maintenance on an incremental basis in a timely fashion at what is perceived to be a reasonable fee.

Provide comprehensive facilities services via our specifications and quality subcontractors.

Provide solutions for deferred maintenance. Provide solutions for facility updates and facility

expansion goals.

Opportunities

Preserve the investment that CSM Group customers have made in their property.

Provide specialized property management to targeted financial services clients that do not have the scale to warrant in house staff.

Deliver goals of value enhancement, cash flow, or facility management to office building owners.

Business Concept

We will manage for a fee the properties of target clients.

We will target clients that want high end, beautiful properties with curb appeal impact.

We will offer partnerships to key core clients. Our fees will be based upon a percentage of the

operating budget, flat fee, percentage of the effective gross income, hourly rate, or not to exceed maximum

We will utilize economy of scale to reduce common materials costs

Competition

Local competitors are Gardener Management; Signature Associates.

Regional and national competitors are Viox; Jorgenson and Associates; Unicco, and York International.

Competitive Advantages

Leveraging the CSM Group contact network to expand relationships

Our ability to utilize contacts with key Bank executives and Office building Owners to present strategies to deliver their goals

Our quality staff and exceed expectations approach, and our 30+ years experience

Establishment and leveraging of core portfolio will allow us to be perceived as the dominant property services provider as their is currently a void in market leadership.

Goals & Objectives

Five-year goals– 2 new clients per year, 10 in 5 years.– 500,000 square feet under management in 5

years– Manage 2 class A properties in Downtown

Kalamazoo – $400,000 gross annual revenue for year 5– 3 years until net operating income

(profitability) is achieved

Financial Plan

Pricing based on $.65 square foot base feeAdditional potential revenue from lease

commissions not includedYear 0 projections for revenue assume

revenue begins 4th quarter

Year 0-5 revenue and profitability

Year 0 revenue $13,000. Net loss of <$2,630> Year 1 revenue $84,500. Net loss of <$78,100> Year 2 revenue $150,100. Net loss of <$12,100> Year 3 revenue $244,300. Net profit of $52,600 Year 4 revenue $316,150. Net profit of $117,850 Year 5 revenue $403,400. Net profit of $156,100

Total Owners Equity $233,720

Resource Requirements

Technology requirements

-TCOM, PC, Printer, Fax, Copier, Software Personnel requirements-Administrative

-1 part time year 0

-2 Full time year 3

-2 Full time, 1 Part time year 5

-Non-Admin billed internally and passed through

Resource Requirements

Resource requirements– Funding until breakeven– Promotion to CSM clients– Utilization of CSM infrastructure – Acquire Real Estate License

External requirements– TCOM Services– Bank Accounts

Risks & RewardsRisks

– Unable to acquire first client– Inexperience in sales– Quality of part time administrator– Loss of investment funds

Addressing risk– Defer compensation year 0; work part time– Objective, in depth analysis of the local

marketplace in Q1 of year 0– Staff with experienced person

Risks & Rewards

Rewards– Owners equity of $230,000 after year 5– Diversity in Business line with steady revenue– Break even in year 3– Opportunity for CSM for other sales in existing

core business due to “Continuous Touch”– Personal sense of satisfaction

Key Issues

Near term– Review, advise and edit Business Plan– Complete in depth Market Analysis– Revise Business Plan post market analysis

Long term– Owners equity agreement– Consequences of decision postponement

Start up funding is $50,000

Property Management Tasks

Retain Tenants Negotiate leases Obtain Tenants Handle Tenant relations

Collections Review/Approve leases

Prepare Financial reports Make decisions about acquisitions & dispositions

Prepare operating budgets Maintenance Monitor property performance

Negotiate tenant improvements

Prepare overall management Plan

Prepare Capital Budgets

Administration Make decisions about redevelopment

Analyze project feasibility Maintenance Supervision

On-site inspections Monitor property value

Approve rent Schedule Prepare rent schedule Establish/monitor/enforce operating policies and procedures

Analyze/implement financial structures

Real estate tax monitoring Establish/Modify lease procedures

Construction/renovation supervision

Construction/renovation

Handle Broker relations Environmental monitoring

Insurance procurement and monitoring

Work with legal counsel

Provide Architectural and design control

Purchasing Government compliance Handle advertising & Public relations

Property Management Tasks: Revenue Methods

Retain Tenants Negotiate leases Obtain Tenants Handle Tenant relations

Collections Review/Approve leases

Prepare Financial reports Make decisions about acquisitions & dispositions

Prepare operating budgets Maintenance Monitor property performance

Negotiate tenant improvements

Prepare overall management Plan

Prepare Capital Budgets

Administration Make decisions about redevelopment

Analyze project feasibility Maintenance Supervision

On-site inspections Monitor property value

Approve rent Schedule Prepare rent schedule Establish/monitor/enforce operating policies and procedures

Analyze/implement financial structures

Real estate tax monitoring Establish/Modify lease procedures

Construction/renovation supervision

Construction/renovation

Handle Broker relations Environmental monitoring

Insurance procurement and monitoring

Work with legal counsel

Provide Architectural and design control

Purchasing Government compliance Handle advertising & Public relations

Multiple Ways Percent of total

Flat Fee Per Diem

Facility Management Tasks

Prepare operating budgets

Maintenance Prepare Financial reports

Prepare Capital Budgets Administration Purchasing

Analyze project feasibility

Maintenance Supervision

On-site inspections

Monitor property value Government compliance Establish/monitor/enforce operating policies and procedures

Provide Architectural and design control

Construction/renovation supervision

Construction/renovation

Facility Management Tasks:Revenue Methods

Prepare Operating budgets

Maintenance Prepare Financial reports

Prepare Capital budgets Administration Purchasing

Analyze project feasibility

Maintenance Supervision

On-site inspections

Monitor property value Government compliance Establish/monitor/enforce operating policies and procedures

Provide Architectural and design control

Construction/renovation supervision

Construction/renovation

Flat FeePercent of total

Per DiemMultiple Ways