CHAM

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• CHAM
• 9th Annual Asset Management Professionals
  Conference
• Thursday, April 23rd
• 10am-1230pm
• Advanced Wrangler Ropin and Steerin

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• Incentive based Asset Management Systems

• Asset Management Points
• Carrots
• Sticks

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Approach to Asset Management

• Great Lakes Capital Fund Approach
• Holistic
• Starts in Underwriting
• Comprehensive
• Fiduciary to our investors
• Partner to our developers
• Advocate for our communities
• Thorough
• Well designed efficient systems that are
  accurate, reliable and consistent

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Underwriting

• Asset Management Points
• Kick-off
• Underwriting
• Tech Review
• Transition Meeting

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Carrots

• Favorable Pricing
• Speed of Closing
• Favorable Terms
• Reduced Transaction Costs
• Possible Pre-development Financing

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Sticks

• Prolonged Underwriting
• Increased Reserve Requirements
• More difficult negotiations
• Increased Guarantees
• Higher Transaction Costs

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Construction/Lease-Up

• Asset Management Points
• Monthly Inspections
• Copies of Draws
• Monthly Lease-up Reports
• Monthly Operating Statements
• Other Stabilization Requirements
• Tenant Files

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Carrots

• Expedited Capital Contributions
• Expedited Loan Closing
• Reduced Adjusters
• Technical Assistance

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Sticks

• Downward Capital Adjusters
• Delay in Capital Contributions
• Calls on Completion Guarantee
• Repurchase

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Stabilization

• Asset Management Points
• Monthly Statements
• Quarterly Statements
• Annual Statements
• Site Visit/Compliance Audit
• Portfolio Meeting

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Carrots

• Reputation
• 2nd Set of Eyes
• Improved Cash Flow
• Technical Assistance

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Sticks

• Credit Reduction Notes
• Removal
• Repurchase
• Black-Listed

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Summary

• Asset Management is About Stewardship,
  Partnership, Advocacy
• Good Systems Are
• Efficient, Holistic, Comprehensive, Thorough

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Summary

• A Good incentive System Will.
• Create economic incentives for performance
• Adequately deter non-compliance
• Be narrowly tailored to fit the goal
• Provide an appropriate remedy
• Be clear in expectation and action required

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Contact Information

• Aaron Seybert
• Community Development Specialist
• Great Lakes Capital Fund
• 1000 S. Washington, Suite 200
• Lansing, MI 48823
• 517-364-8926 Phone
• aseybert_at_capfund.net