CONFIDENTIAL EXECUTIVE SUMMARY

The Palms, at McClelland DriveINVESTOR CONVERTIBLE DEBT OFFERING: $1,695,00,000, $25,000 PER UNIT

BUSINESS PLANPrepared October 2012

Contact InformationIndira Keller 2900 Westfork Drive, Suite 401indirakeller@me.com Baton Rouge, Louisiana 70728, USAwww.maisonblanchehome.ocm 1-225-361-6306

The Palms at McClelland Apartment i

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Table of ContentsExecutive Summary.................................................................................1Who We Are.............................................................................................................................................................1What We Sell ...........................................................................................................................................................1Who We Sell To ......................................................................................................................................................1Financial Summary ..............................................................................................................................................2

Financial Plan............................................................................................3Sales Forecast .........................................................................................................................................................3Personnel Plan.......................................................................................................................................................4Budget ......................................................................................................................................................................5Profit and Loss Statement...................................................................................................................................7

The Palms at McClelland Apartment 1

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Executive Summary

Who We Are Property Address: 5665 McClelland Drive, Baton Rouge, LA 70805

Investor Convertible Debt Offering: $1,695,00,000, $25,000 Per Unit

MBH Investment Group, LLC (MBH) will provide high-quality, comfortable rental units in Baton Rouge and other areas of Louisiana. MBH apartment units offer state-of-the-art living conditions reflective of the rapid advancements in technology and a growing need for quality housing. Our company is dedicated to a hassle free living environment in which our tenants can enjoy all of the benefits of safe, attractive, and inviting units. Unlike many other realty companies that are solely concerned with turning profits, our primary objective at MBH is to maintain the highest level of customer satisfaction that is achievable. Tenant safety, happiness, and comfort are our main goals. MBH will maintains competitive market prices, while working toward expanding the number of units owned, and increasing total profits earned. Within the company we will strive to work as a cohesive, harmonious unit focused on exemplifying our mission.

What We SellMBH Investment Group, LLC will initially focus our efforts on buying and developing existing properties. Once the properties are purchased, each unit will be hard wired with Internet access, state-of-the-art amenities will be installed, and safety measures will be implemented ensuring a cutting edge, safe environment. This course of action will be initially pursued as a way to efficiently utilize capital and establish a reputation within the community. Future projects may include custom build outs.

Who We Sell ToInitial focus will be to buy and develop existing apartment complexes. We will modify and remodel the acquired real estate so as to meet MBH standards and increase long-term assets and income. Housing units will predominantly be located in the Central neighborhood targeting both students and professionals. MBH fosters the ideals of the importance of tenant needs along with healthy and understanding relationships and a professional commitment to satisfaction.

The Palms at McClelland Apartment 2

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Financial SummaryFinancial Highlights

Great investment opportunity. This 2 story apartment complex has:18 units that are 3 bedroom and 1 1/2 bath, 28 unites that are 2 bedroom 1 1/2 baths, 13 units that are 2 bedroom and 1 bath, and there are 16 units that are 1 bedroom and 1 bath.

3 bedroom- 18 units-950

2 Bedroom, 1.5 baths - 28 unit

2 Bedroom, 1 bath - 13 units

1 Bedroom, 1 bath - 16 units

Sales by Year

The Palms at McClelland Apartment 3

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Financial PlanSales ForecastSales Forecast

FY2013 FY2014 FY2015

Unit Sales

3 bedroom 198 198 198

2 bedroom, 1.5 bath 308 308 308

2 bedroom, 1 bath 143 143 143

1 bedroom 1 bathroom 176 176 176

Price Per Unit

3 bedroom $895 $895 $895

2 bedroom, 1.5 bath $695 $695 $695

2 bedroom, 1 bath $615 $615 $615

1 bedroom 1 bathroom $595 $595 $595

Sales

3 bedroom $177,210 $177,210 $177,210

2 bedroom, 1.5 bath $214,060 $214,060 $214,060

2 bedroom, 1 bath $87,945 $87,945 $87,945

1 bedroom 1 bathroom $104,720 $104,720 $104,720

Total Sales $583,935 $583,935 $583,935

Direct Cost Per Unit

3 bedroom $265 $265 $265

2 bedroom, 1.5 bath $365 $365 $365

2 bedroom, 1 bath $265 $265 $265

1 bedroom 1 bathroom $265 $265 $265

Direct Cost

3 bedroom $52,470 $52,470 $52,470

2 bedroom, 1.5 bath $112,420 $112,420 $112,420

2 bedroom, 1 bath $37,895 $37,895 $37,895

1 bedroom 1 bathroom $46,640 $46,640 $46,640

Total Direct Cost $249,425 $249,425 $249,425

Gross Margin $334,510 $334,510 $334,510

Gross Margin % 57% 57% 57%

The Palms at McClelland Apartment 4

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Sales by Month

About the Sales Forecast

The Sales Forecast is shown on the following table. We are projecting a healthy gross margin for the first year. This is an aggressive projection that will help our efforts to keep total cost of sales low while increasing gross margin. We will also have very low marketing costs, due to the public exposure to the units, and good word of mouth around the area.

Personnel PlanPersonnel Table

FY2013 FY2014 FY2015

On Site Manager $27,500 $30,900 $31,827

Maintenance Manager $32,680 $36,720 $37,821

Maintenance Assistant $22,688 $25,493 $26,257

Total $82,868 $93,113 $95,905

About the Personnel Plan

The personnel plan will be as follows:

The Palms at McClelland Apartment 5

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One manager to oversee and fill-in for all areas.

Maintenance manager for property HVAC, electrical supervision

Maintenance assistant In addition, we will hire two contract employees: a pet groomer and a behavioral trainer.

In the first year, assumptions are that there will be only one manager, one supervisor, and assistant until the business can build.

BudgetBudget Table

FY2013 FY2014 FY2015

Expenses

Salary $82,868 $93,113 $95,905

Employee Related Expenses $16,574 $18,623 $19,180

Marketing & Promotion $2,200 $2,400 $2,400

Utilities $13,200 $14,400 $14,400

Office Supplies $1,815 $1,980 $1,980

Insurance $2,750 $3,000 $3,000

Property Tax $11,000 $12,000 $12,000

Payroll Tax $16,500 $18,000 $18,000

Total Expenses $146,907 $163,516 $166,865

The Palms at McClelland Apartment 6

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Expenses by Month

About the Budget

Marketing expenses will be higher in the first year to announce the opening of the firm and will drop after that. Most expenses will show small increases each year as the business will remain in the same location over the first three years.

Startup Costs

Total start-up requirements include legal costs, logo design, stationery and related expenses. The start-up costs are to be financed partially by the direct owner investment and long-term loan financing.

The Palms at McClelland Apartment 7

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Profit and Loss StatementProfit and Loss Statement

FY2013 FY2014 FY2015

Revenue $583,935 $583,935 $583,935

Direct Cost $249,425 $249,425 $249,425

Gross Margin $334,510 $334,510 $334,510

Gross Margin % 57% 57% 57%

Expenses

Salary $82,868 $93,113 $95,905

Employee Related Expenses $16,574 $18,623 $19,180

Marketing & Promotion $2,200 $2,400 $2,400

Utilities $13,200 $14,400 $14,400

Office Supplies $1,815 $1,980 $1,980

Insurance $2,750 $3,000 $3,000

Property Tax $11,000 $12,000 $12,000

Payroll Tax $16,500 $18,000 $18,000

Total Expenses $146,907 $163,516 $166,865

Operating Income $187,603 $170,994 $167,645

Income Taxes $18,760 $17,099 $16,765

Net Profit $168,843 $153,895 $150,880

Net Profit / Sales 29% 26% 26%

The Palms at McClelland Apartment 8

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Gross Margin by Year

Net Profit (or Loss) by Year

About the Profit and Loss Statement

The projected profit and loss for the company is shown on the following table.

Executive Summary Who We Are What We Sell Who We Sell To Financial Summary Financial Highlights Sales by Year

Financial Plan Sales Forecast Sales Forecast Sales by Month About the Sales Forecast

Personnel Plan Personnel Table About the Personnel Plan

Budget Budget Table Expenses by Month About the Budget Startup Costs

Profit and Loss Statement Profit and Loss Statement Gross Margin by Year Net Profit (or Loss) by Year About the Profit and Loss Statement LastPageBookmark