Investment StrategyLocation – We have selected a great market in Knoxville, Tennessee. Knoxville is 1 of 3 U.S. cities that is officially out of the recession.Knoxville also has a large supply of our niche tenants (blue collar and retail workers).

Our main criteria when selecting a deal:

We use various forms of creative financing:

We buy underperforming mom and pop properties and reposition them by “fixing them up” with physical upgrades and professional management, which leads to higher rents and lower vacancy rates.

Service provider cost reductions have saved us thousands. We have negotiated different contracts with services companies for things such as pest control, waste management, and lawn care.

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We look for motivated sellers. We look for mom & pop run apartments. These properties are typically undermanaged. Over time many of these owners let their properties slip and begin view their investment as a burden or - too much work.By buying undermanaged mom & pop properties, we are able to make purchases at wholesale and below replacement costs.

Seller financing Repair allowances Mortgage assumption Option to purchase

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Niche Acquisition Strategy – Buy underperforming small to midsized “mom & pop” multifamily properties that have demonstrated strong cash flow but are being held back by poor property management and deferred mainte-nance. We target B and C properties from 20 to 150 units. We focus on this quantity of units because 20 units is too large for most small investors and 150 units is too small for institutional investors, thus allowing for less competi-tion.

Experienced Management Team – Not only do we oversee the asset management portion of each property, but we also actively manage the day-to-day onsite operations at a high level. Our firsthand experience allows for strict oversight of each property using our proven systems. Our objective is to raise the occupancy of the property as well as the income.

Strong Industry Fundamentals – Today’s economic climate is making it more difficult for people to acquire home loans. This has created a tremendous demand for multifamily housing. Our strong relationships with com-munity banks have allowed us to acquire properties using creative financing that is overlooked by the average investor.

Geographic Focus - Develop small to medium-size apartment complexes in blue collar communities. Our strategy is to develop these multifamily complexes in the southeast where taxes and regulations are not as burdensome as in other areas of the country.

Attractive Returns – We strive for cash-on-cash returns of 15% and cap rates of 9%. This high return rate, cou-pled with the equity built over time, makes our multifamily investing approach a sought after option for any wealth building strategy.

Investment Highlights

Knoxville is 1 of 3 US Cities to fully recover from recession.

Right to Work State

Ideal for multifamily housing

http://www.businessinsider.com/only-three-us-cities-have-recovered-2012-11

This is due to new retail and blue collar jobs.

This has attracted employers, bringing more manufacturing jobs to the state.

Pro-business state with low taxes and fewer regulations

Low Unemployment Rate

Large percentage of blue collar and retail jobs

The company has a specific focus in the East Tennessee marketplace.

Members have extensive experience with the entire investment process from start to finish.

Gino Barbaro

Our company focuses on acquiring 20 to 150 unit multifamily properties that are underperforming and can be repositioned to increase the net operating income.

Company Overview

Undervalued Acquisitions, Creative Financing, Development, Property Management and Asset Managemen

Ten years of experience in managing mixed-use and multifamily properties in New York State Licensed Real Estate Salesperson in New York StateCurrently holds over 200 multifamily units

Chief Managing Member – Rand Property Management LLCCurrently holds over 200 multifamily units

Jake Stenziano, MBA

Portfolio PropertiesCourtyard Cottages - Maryville, TN

25 unit multifamily property

Hickory Hill Apartments - Knoxville, TN36 unit multifamily property

Park Place West and South - Maryville, TN136 unit multifamily property

Gino’s Trattoria - Mahopac, NY 3 unit mixed use property with commercial tenants

Buckshollow Road - Mahopac, NY4 unit residential multifamily property

Billings Plaza - Lagrange, NY19,000 square foot mixed use building (retail, office space and industrial space)

Secor Road - Mahopac, NYCommercial building with Laundromat and offices

All of these properties can be viewed at

www.ginobarbaro.com

Park Place North - Alcoa, TN24 unit multifamily property

Rochester, NY154 Avis - Duplex

61 Thurston Road Duplex

HICKORY HILLApartments

illings lazaB P

APARTMENTS NORTH

After sifting through hundreds of deals and experiencing plenty of rejection, we finally found a “mom & pop” apartment property with a motivated seller in Maryville, TN (submarket of Knoxville, TN).

Issues with property before acquisition:

Solutions implemented after acquisition: Creative Financing Used:10% down – paid by our group10% seller financingSellers repaired over $10,000 in siding and roofs a week prior to closing

Interior and exterior deferred maintenanceTenants could rent by the week and there was no tenant screening process Some tenants were dealing drugsPoorly managed by negligent “mom & pop” owners

Deferred maintenance issues were addressedBegan doing tenant background checks and evicted all undesirable tenantsImplemented professional management with maintenance personEmployed premium rent pricing and monthly payments on yearly leases.Created a much need online presence, helping to recruit new desirable tenant base

Gino’s Trattoria - Mahopac, NY 3 unit mixed use property with commercial tenants

Buckshollow Road - Mahopac, NY4 unit residential multifamily property

Billings Plaza - Lagrange, NY19,000 square foot mixed use building (retail, office space and industrial space)

Secor Road - Mahopac, NYCommercial building with Laundromat and offices

Case Study

In 2012 our group set its sights on the Knoxville market to purchase its multifamily property.

During the summer of 2013 Gino and Jake formed their second investment group:

Issues with property before acquisition:

36 Unit Garden Style Apartment Complex located in Knoxville, TN.

Solutions implemented after acquisition:

Implemented CoinMach laundry service;

Interior and exterior deferred maintenancePoorly managed by a “mom & pop” Expenses out of controlHigh vacancy rates

Creative Financing Used:

Future Value Plays

Implement utility billback system2% annual rental rate increaseAdd 3 storage sheds for rentThe Henley Street Bridge will open in 2014, giving the complex direct access to The University of TN campus

Repair allowance of $11,000 paid by seller at closing15% down

$2,050 saved from Waste Management$1,460 saved by improved online marketing and removal of unproduc-tive pay sites $3,600 saved with new lawn care service

$1,000 paid by CoinMach to Hickory Hill Apartments for contract

HICKORYHill

Case Study

136 Unit Garden Style Apartment Complex located in Maryville, TN

Creative Financing Used:

Issues with property before acquisition

Repair allowance of $7,000 paid by seller at closing15% downSellers repaired over $30,000 in windows, floors, and appliances prior to closing

Interior and exterior deferred maintenance; overall poor maintenance programPoorly managed by a “mom & pop” owner; underperforming for the past 48 monthsExpenses out of controlHigh vacancy ratesRents below market rateMany inoperable laundry machines

Solutions implemented after acquisition

Employed premium rent pricing for a large number of under market rentersUsed repair allowance to immediately address deferred maintenance issuesUtilized a pay for performance property management structure that immediately increased occupancyReduced operating expense by over $90,000 in first yearImplemented CoinMach laundry service

Rents for 2 BR raised from $450 per month to $595 per monthRents for 3 BR raised from $525 per month to $665 per monthImplemented utility billback system

$6,000 paid by CoinMach to Park Place for contract

Case Study

During the winter of 2013 Gino and Jake formed their third investment group:

Future Value Plays

2% annual rental rate increaseAdd storage sheds for rentBuy surrounding buildings; this could grow complex to over 200 units

24 Unit Garden Style Apartment Complex located in Alcoa, TN (hottest market in East Tn)

Creative financing used:

Many repairs made prior to closing such as new laundry facility15% downThe property came with an additional 4 acres of land with lake front views - we are still deciding how to best maximize the addi-tional landWe may sell the additional remaining 4 acres or utilize the land for storage units

Issues with property before acquisition:

Interior and exterior deferred maintenance; overall poor mainte-nance programPoorly managed by an out of town “mom & pop” owner; underper-forming for the past 7 yearsOwner had 3 different managers over the past two years and was dealing with theft and other issues as a resultHigh vacancy ratesRents below market rate

Solutions implemented after acquisition:

Employed premium rent pricing for a large number of under market rentersUtilized a pay for performance property management structure that immediately increased occupancyReduced operating expense by utilizing professional property managementImplemented CoinMach laundry serviceRents for 2 BR raised from $475 per month to $625 per monthImplemented utility billback system

During the fall of 2014 Gino and Jake formed their fourth investment group:

Future Value Plays:

2% annual rental rate increase.Add storage sheds for rent.Sell additional 4 acres.

Case Study

APARTMENTS NORTH

281 unit multi-family property located in Jefferson City, Tenessee

Micro Re-Positioning:

281 unit multi-family property comprised of studio, 1 bedroom & 2 bedroom apartments, along with 2, 3 & 4 bedroom town homes.

Issues With Property Before Acquisition:

At time of acquisitionMom and Pop apartment with high expenses and high labor costsHigh expenses for landscaping, management,payroll and phone servceRents were below marketExtremely high utility expenseNo Ratio Utility Billing System (RUBS)Unattractive website and poor marketing

Creative Financing Used:

$11,000,000 purchase price.Bought at an 8 Cap Rate80% bank financing4.25% interest rate25 year amortization5 year term20% owner financing4.5% interest rate30 year amortization5 year balloon

During the summer of 2015 Gino and Jake formed their fifth investment group:

We purchased this 281 multi-family units with NO money down!! This was only possiblebecause we had a terrific relationship

with thelocal bank.

Solutions Implimented After Acquisition:

We assumed management and began to implement Wheelbarrow Profits repositioning framework. All tenants who were not on a lease were brought up to market rent and charged a RUBS fee. We hired a full time leasing agent and maintained 3 maintenance workers full time.All new rental units were raised to market rent.

Case Study

Jefferson CityAPARTMENTS

Case Study

Consisting of one and two bedroom garden style apartments and town homes located in West Knoxville.

Micro Re-Positioning:

281 unit multi-family property comprised of studio, 1 bedroom & 2 bedroom apartments, along with 2, 3 & 4 bedroom town homes.

Issues With Property Before Acquisition:

Partnership acrimonyHigh expenses and high labor costsRents were below marketAmenities were lacking for this type of propertyOne of the buildings had burned down and was not reconstructed.

Creative Financing Used:

$7,100,000 purchase price

Purchased at an 8 cap rate and 12.5% cash on Cash return

15 % down payment

One year interest only payments

During the spring of 2016, Jake and Gino purchased a 156 unit apartment complex

When the bidding started, we were the third highest bid. It took six months of negotiation to come to an agreement with

the sellers.

Solutions Implimented After Acquisition:

We assumed management and began to implement Wheelbarrow Profits repositioning framework. All tenants who were not on a lease were brought up to market rent and charged a RUBS fee. We hired a full time leasing agent and maintained 3 maintenance workers full time.All new rental units were raised to market rent.

Case StudyCase Study

SunflowerApartments

Competitive Edge

Our Approach

Provides safe, clean, and efficient living conditions for retail and blue collar workers.

Satisfies an unmet need for our niche tenant in the previously undermanaged complex.

Ultimately improves the quality of life for our customers.

Builds long term residents that result in higher occupancy rates.

Renovate any deferred maintenance and create desirable living conditions.

Implement a professional management team with a focus on customer service.

Create a safe, clean, and efficient living environment.

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N I C H ET E N A N T S

Keys To Success

Experienced team with a proven track record - Acquisition, asset management and re-development experi-ence in repositioning multifamily properties for the growing retail and blue collar worker demographic in Tennes-see and New York. with a sought after track record for executing deals with high returns.

Cater to high growth retail and blue collar demographic - One reason that the Knoxville market is out of the recession is due in part to the surge in new retail and blue collar employment opportunities. We currently cater to this growing demographic.

Favorable industry and economic conditions - Multifamily properties have the strongest real estate industry fundamentals of all asset classes, and real estate intrinsic values are well below replacement cost in many areas, creating great buying opportunities.

Unmatched competitive edge - We have been ahead of the curve by focusing on this growing demographic in Knoxville. With this strategic focal point and the ample market inventory, we are positioned for multiple new acquisitions.

N I C H ET E N A N T S

Investment Life CycleStep 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7Buy Property Reposition

PropertyIncrease

OccupancyAt Market Rate

ImplementRUBS

DuplicateProcess

Refinance Property

RaiseRemaining

Rents

High cash on cash returns

Tax advantages through depreciation

Equity through leverage

Appreciation

Hedge Against Inflation

Combination of all of the Above

Jake & Gino

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Partnering with Jake & Gino

SPECIFIC PLAN - Jake and Gino are executing a specific plan for acquiring underperforming mom & pop properties with growth potential in the Knoxville market. These assets will then be repositioned to meet the growing need for safe, clean and efficient housing for retail and blue collar workers.

GROWING WEALTH - We have learned that buying under performing multifamily properties is an excellent way to grow wealth. There is a combination of appreciation, monthly cash flow, equity build up from principal payment and tax benefits. Our goal is to target properties that are too large for most individual investors and too small for institu-tional investors.

ATTRACTIVE RETURNS - We strive for cash-on-cash returns of 15% and cap rates of 9%. This high return rate coupled with the equity built over time makes our multifamily investing approach a sought after option for any wealth build-ing strategy.

If you have similar investment goals, we cordially invite you to contact us.

Contact Info

Jakeandgino.comWheelbarrowprofits.com

jake@jakeandgino.com

gino@jakeandgino.com

info@jakeandgino.com

jake & gino