Includes• 100 unimproved Lots

• 104 Improved Lots

• Water Company

• 18 RV Pads

• 4 Park Model Homes

• 12 Homes

• 3 Foundations

• HOA Clubhouse – Pool

– Hot Tub

– Tennis Court

Multiple Revenue Streams

Net Rental Income

$134,604

Net Income for the Water

Company

$64,252

Improved Homes

Profit from existing home sales assuming a 12% margin >> $250,000

RV Pads

Net Cash Flow to Developer>> $428,710

Woods

Net Cash Flow to Developer>> $1,032,133

Meadows

Net Cash Flow to Developer>> $1,342,883

Net Profit $3,053,726.00

Water Company

Operating

Income

Sales ProfitsThe following Proforma is designed to aid in the explanation of what is included, how it may be developed, potential net profit

based on current cost assumptions and market conditions and the different components that make up the offering. None of the

following shall be relied upon as a guarantee of results and in no event will we be liable for any loss or damage resulting from the

following information.

Whispering Aspen SubdivisionSale and Operating Profit Summary

Proforma

*Note- The Net Profit does not include the value of the Water Company. Based on a 7% cap rate the Water Company may be worth $850,000.

There are 16 homes with Certificate of Occupancy all but one has been rented. The profit shown assumes a 12% profit on the sale of the homes.

Alternatively, the operating value of keeping the units as rentals are shown in Operating Income below. The assumed value of these homes is

$2,083,333.00.

The land in the woods can be developed as large scale Single Family Residences or to a Park Model home development. We believe that a downzoning

from 100 lots to 54 for Park Models would be the highest and best use for this parcel. This downsizing would only require an administrative modification

of the plat rather than a re-plat.

We are assuming a downzoning from 3 units per lot to 2. This would create 66 lots upon which ranch style homes of 1,000 sf and 2 story cap cod homes

of 1,500 sf would be developed. Assuming a mix of approximately 70% ranch style homes you would generate the profit shown below.

The descriptions and assumptions of the recurring annual operating income is shown in the following section. We have listed the existing homes that

have been rented in addition to the revenue stream from the operation of the water plant that utilizes two wells and water rights in perpetuity.

The following values are based on the historical performance with the assumption that the project has gone from 41 users to being fully built out with an

additional 141 new users described in Sales Profits above. Currently, the Wi-Fi meter reading and billing are done by the 3rd party operators who

manage the water quality and reporting to the State under a separate contract. The electricity and property taxes are estimates.

Perhaps the highest and best use of the 22 RV pads (16 fully improved and 6 partially improved) are as Park Model homes. The profit shown below

assumes Park Model homes developed on each of these pads.

Improved Homes

Profit from existing home sales assuming a 12% margin >> $250,000

RV Pads

Net Cash Flow to Developer>> $428,710

Woods

Net Cash Flow to Developer>> $1,032,133

Meadows

Net Cash Flow to Developer>> $1,342,883

Net Profit $3,053,726.00

Water Company

AnnualizedGross Income 101,266

Water Quality Management (10,104)

Billing & Collection Management (12,000)

Testing, chemicals, fees & postage (6,885)

Electricity (4,800)

Property Taxes (3,225)

(37,014)

Water Company Annual Net Income >> $64,252

Rentals

Gross Income 193,800

Electricity (1,800)

Gas (1,200)

Property Taxes (14,844)

Homeowners Insurance (8,391)

HOA (18,240)

Sewer (14,721)

(59,196)

Rentals-Annual Net Income >> $134,604

Total Operating Income Summary $198,856.00

Operating

Income

Sales ProfitsThe following Proforma is designed to aid in the explanation of what is included, how it may be developed, potential net profit

based on current cost assumptions and market conditions and the different components that make up the offering. None of the

following shall be relied upon as a guarantee of results and in no event will we be liable for any loss or damage resulting from the

following information.

Whispering Aspen SubdivisionSale and Operating Profit Summary

Proforma

*Note- The Net Profit does not include the value of the Water Company. Based on a 7% cap rate the Water Company may be worth $850,000.

For more detail and further assumptions, please request the backup information available from Mark, Spencer or Cody Thomas at Paffrath & Thomas

There are 16 homes with Certificate of Occupancy all but one has been rented. The profit shown assumes a 12% profit on the sale of the homes.

Alternatively, the operating value of keeping the units as rentals are shown in Operating Income below. The assumed value of these homes is

$2,083,333.00.

The land in the woods can be developed as large scale Single Family Residences or to a Park Model home development. We believe that a downzoning

from 100 lots to 54 for Park Models would be the highest and best use for this parcel. This downsizing would only require an administrative modification

of the plat rather than a re-plat.

We are assuming a downzoning from 3 units per lot to 2. This would create 66 lots upon which ranch style homes of 1,000 sf and 2 story cap cod homes

of 1,500 sf would be developed. Assuming a mix of approximately 70% ranch style homes you would generate the profit shown below.

The descriptions and assumptions of the recurring annual operating income is shown in the following section. We have listed the existing homes that

have been rented in addition to the revenue stream from the operation of the water plant that utilizes two wells and water rights in perpetuity.

The following values are based on the historical performance with the assumption that the project has gone from 41 users to being fully built out with an

additional 141 new users described in Sales Profits above. Currently, the Wi-Fi meter reading and billing are done by the 3rd party operators who

manage the water quality and reporting to the State under a separate contract. The electricity and property taxes are estimates.

The rental income, net of property taxes, sewer and water fees yields a 7.2% return. We believe that these income producing homes have value remaining

as rentals as shown here or as current sales as shown in Sales Profits above. The following revenue stream is based on 2012 amounts and is not adjusted

for inflation.

Perhaps the highest and best use of the 22 RV pads (16 fully improved and 6 partially improved) are as Park Model homes. The profit shown below

assumes Park Model homes developed on each of these pads.

Whispering Aspen Resort Proforma

Operating Income

Improved lots (Meadows)

Unpaved ROW in Meadows Area

Unimproved lots and ROW (Woods)

Foundations only

Homes

Park Models

RV pads (16 improved, 6 unimproved)

Water plant

Whispering Aspen Resort Map

192C

439A

439B

477B

477A

499A&B

498A&B

476A

476B

192A214C

Areas not colored are 3rd party owned lots or designated HOA common areas

430A

430C

MLS#: S388106

Mark ThomasPaffrath & ThomasOffice: (970) 453-0466Cell: (970) 390-6010Fax: (970) 453-9558311 South Main Street, Breckenridge, CO 80424mark@ptbreck.comwww.PTBreck.com