Hendersonville Proposal

7/30/2019 Hendersonville Proposal

1/66

The 2-Acorns Inc.

Pre-Rehab Proposal

1732 Haywood Road, Hendersonville NC 28791

Investment opportunity to invest in short term real estateproject. Funds needed to complete the project are $60,000.Theterm of the project is expected to be less than 6 months. Money

can come from retirement account.

December 2012


2/66

DisclosureThis is not an offering, but is merely a business plan which can be used tohelp an investor evaluate the benefits and risks of this proposed real estateinvestment.

Material contained in this document is confidential, and furnished solely forthe purpose of considering investment in the property described therein, and

is not to be copied and/or used for any other purpose or made available to anyother person without the express written consent of Owner.

The information in this package has been prepared to provide summaryinformation to prospective purchasers and to establish a preliminary level ofinterest in the property described herein. It does not, however, purport topresent all material information regarding the subject property, and it is not asubstitute for a thorough due diligence investigation.

The information contained in this business plan has been obtained fromsources believed to be reliable; however Owner has not conducted any

investigation regarding these matters and makes no warranty orrepresentation whatsoever regarding the accuracy or completeness of theinformation provided. Any estimates or rates of return or assumptions are forexample only and do not necessarily represent the current or futureperformance of the property.

Owner reserves the right to withdraw, modify, or cancel this investment if itdoes not generate enough interest in the property to complete its purchase.

The 2-Acorns Inc.

SHORT TERM INVESTMENT OPPORTUNITY

December 2012


3/66

1732 HAYWOOD ROAD, HENDERSONVILLE NC 28791

SINGLE FAMILY HOME

Any representations made are estimates only.

All details should be confirmed before any purchase

of Real Estate.

The 2-Acorns Inc.

INVESTMENT OPPORTUNITY

December 2012


4/66

The property is located in Hendersonville, NC which is a community in the mountains of NCwest of Charlotte. The median sale price for homes on Trulia in ZIP code 28791 was $225,178 forthe week ending Nov 21, which represents an increase of 1.1%, or $2,501 compared to the prior weekand an increase of 2.6%, or $5,643, compared to the week ending Oct 31.

This single family home has 3 beds, 1 bath, and approximately 2,042 square feet. The property has a

lot size of 0.28 acres and was built in 1956. The average list price for similar homes for sale is$180,940. 1732 Haywood Rd is in the 28791 ZIP code in Hendersonville, NC.

The property is in need of a good deal of repair, but with great potential. What makes thisattractive is the $45 per sq foot asking price. Rehab costs include; new carpet, tile in bath andkitchen, interior paint, as well as new counters, sink and faucet, foundation repair and the like.Please see attached contractor bid on repairs for further details.

The purchase price on the property is $92,000. It has a conservative ARV based on a fullappraisal completed on November 15th, 2012 of $195,000. And an estimated repair cost of$34,000 with incidentals buffered in. It is expected that the project will need an additional

$60,000 after a Hard Money Loan. The expected profit will be split 50-50 with the partner isapprox. $39,000 which is a split of $19,500 each. These numbers are based on a worst casescenario of a 6 month hold.

Based on the MLS sales over the last 3 months, the average days on market for 3 bedroom 2+bath Hendersonville, NC is 60-70 days respectably.

For additional information please feel free to contact us:

The 2-Acorns Inc.

Rebekah [email protected]: 832.392.1577

THE 2-ACORNS INC.

INVESTMENT SUMMARY

December 2012


5/66

6227 N 22n

Drive, Phoenix AZ 85015 | Phone: 832.392.1577 | [email protected]

The 2-Acorns Inc.


6/66

Re-Hab Pricing WorksheetProperty Address: 1732 Haywood Rd, Hendersonville NC

Asking Price: $92,000.00

Property Sq Foot: 2010

Price Per Sq Foot: $45.77

Holding Period: 6 Months

Estimated After Repair Value (ARV) $195,000.00

(See Page 3)

Price Per Sq Foot 97.01

Acquisition Costs Loan Amt. Percent

Points New Loan 126,750.00 @ 4 5,070.00

Inspection Costs 350.00

Broker Fee 0.00

Finders Fee 0.00

Other Closing Costs 1,950.00

--------------------Total Acquisition Costs: 3.78% 7,370.00

Holding Costs Payment # Months

Interest Costs Rate 12.00% 1267.50 @ 6 7,605.00

Taxes 56.58 @ 6 339.50

Insurance 40.00 @ 6 240.00

Utilities Costs 40.00 @ 6 240.00

Other Holding Costs @ 6 0.00

--------------------

Total Holding Costs 4.32% 8,424.50

Selling Costs

Commission @Percent: 6 11,700.00Closing Costs 350.00

Other Selling Costs 0.00

Title Policy 600.00

Buyers Closing Costs 0.00

--------------------

Total Selling Costs 6.49% 12,650.00

Re-Hab Costs --------------------

Total Re-Hab Costs (From Page 2) 17.64% 34,405.80

Investors Profit Margin --------------------

Profit Margin @Percent: 15 29,250.00

==========Total Project Costs 47.23% 92,100.30

Price Per Sq Foot - Project Costs $45.82

==========

Max Offer Price $92,100.30


Percent of Asking Price 100.11%*** Any assumptions are estimates only. Buyer should make an independent evaluation of Property before buying ***


7/66

Rehab Costs(Page 2)

Property Address: 1732 Haywood Rd, Hendersonville NC

Asking Price: $92,000.00


Price Per Sq Foot: $45.77 MonthsHolding Period: 6

Re Hab Expenses Interior

New Carpet SQ FT: 1610 @ 1.5 2415.00

New Tile/Hard Wood SQ FT: 400 @ 4 1600.00

New Paint SQ FT: 2010 @ 1.3 2613.00

New Windows Number 0 @ 300 0.00

New Doors Number 8 @ 100 800.00

Cabinets Feet: 20 @ 120 2400.00

Counter Tops Feet: 20 @ 50 1000.00

New Base Board Feet: @ 2 0.00

Sink and Faucet

Appliances

Master Shower

Master Vanity

Sheet Rock Repair

Labor

Re Hab Expenses Exterior

Landscaping 450.00

Siding

Concrete

Roof Repair 0.00

Other 20000.00

Contingency At: 10.00% 3127.80

=========

Total Rehab Costs $34,405.80

*** Any assumptions are estimates only. Buyer should make an independent evaluation of Property before buying ***


8/66

Investment Summary(Page 3)

Property Address: 1732 Haywood Rd, Hendersonville NC

Asking Price $92,000.00


Price Per Sq Foot: $45.77Holding Period: 6 Months

Purchase Price $92,100.30

(See Page 1)


Costs Paid During Project

Purchase Price $92,100.30

Acquisition Costs 7,370.00

Holding Costs 8,424.50Re-Hab Costs 34,405.80

Costs Paid After Closing

Selling Costs 12,650.00

Credit For Financing And Seller Credits

New Loan 126,750.00

Seller Paid Closing Costs 0.00

Total Cost of Project 154,950.60

Less Seller Credits 0.00

Less New Loan -126,750.00

Less Sales Costs -12,650.00

Money Needed To Finance After Mortgage 15,550.60

Gross Profit 29,250.00

Partners Split of Profit @ 50.00% 14,625.00

Partners Profit Margin (Annualized) 188.10%

*** Any assumptions are estimates only. Buyer should make an independent evaluation of Property before buying ***


9/66

APR CONTRACTINGCHARLOTTE,NC

704-363-1399

THIS IS AN ESTIMATE FOR WORK TO BE PERFORMED AT HENDERSONVILLE, NC.

ALL WORK TO BE PERFORMED COMES WITH A 1YR. WARANTY AND INCLUDES

ALL MATERIAL AND LABOR.

WORK TO BE PERFORMED:

EXTERIOR-

-PRESSUREWASH ENTIRE HOUSE INCLUDING SIDING, TRIM, SIDEWALKS, AND

DECK$350.00

-PAINT FRONT ENTRYWAY TRIM, DOOR, AND SHUTTERS

$360.00

-CLOSE UP WHERE WINDOW UNIT IS, AND TAKE OUT WINDOWS AND CASE IN

OPENINGS TO SUNROOM

$1050.00

-LANDSCAPE

$2450.00

-REPLACE EXTERIOR LIGHTS AND HOUSE NUMBERS

$195.00

-HVAC AIR HANDLER

$2000.00

______________________________________________________________________________

INTERIOR-

-PAINT INTERIOR OF HOUSE INCLUDING; SANDING, CHAULKING, AND

PRIMING OF ALL CEILINGS, WALLS, AND TRIM

$3600.00-INSTALL NEW TILE ON WALLS AND SHOWER SURROUND IN HALL BATH

$2900.00

-GUT MASTERBATH COMPLETELY AND REBUILD

$3950.00

-REMODEL KITCHEN

$15350.00


10/66

-REPLACE AND REFINISH ALL LIGHTING FIXTURES IN HOUSE

$685.00

-REFINISH BARROOM

$2100.00

TOTAL- $34990.00

ALL WORK WILL BE PERFORMED BY PROFESSIONALS IN A PROFESSIONAL AND

TIMELY MANOR.BOTH PARTIES WILL AGREE ON A DRAW SCHEDULE BEFORE

STARTING JOB, AND HOMEOWNER WILL BE RESPONSIBLE FROM UTILITIES TO

BE CUT ON PRIRE TO START.

THANK YOU FOR YOUR BUSINESS,

APRCONTRACTING

ANDREW ROWLAND


11/66

File No.

APPRAISAL OF

LOCATED AT:

FOR:

BORROWER:

S O

49212

REAL ESTATE APPRAISALS

ADVANCED APPRAISALS

N/A

Lake Wylie, SC 29710

4607 Charlotte Highway Suite 1

Neighborhood Housing Group, LLC

Hendersonville, NC 28791

1732 Haywood Road

Single Family Residential


12/66

Uniform Residential Appraisal Report File No.he purpose of this summary appraisal report is to provide the lender/client with an accurate, and adequately supported, opinion of the market value of the subject property

Property Address City State Zip Code

Borrower Owner of Public Record County

Legal Description

Assessor's Parcel # Tax Year R.E. Taxes $

Neighborhood Name Map Reference Census Tract

Occupant Owner Tenant Vacant Special Assessments $ PUD HOA $ per year per mon

Property Rights Appraised Fee Simple Leasehold Other (describe)Assignment Type Purchase Transaction Refinance Transaction Other (describe)

Lender/Client Address

Is the subject property currently offered for sale or has it been offered for sale in the twelve months prior to the effective date of this appraisal? Yes No

Report data source(s) used, offering price(s), and date(s).

SU

BJECT

I did did not analyze the contract for sale for the subject purchase transaction. Explain the results of the analysis of the contract for sale or why the analysis was not performed.

Contract Price $ Date of Contract Is the property seller the owner of public record? Yes No Data Source(s)

Is there any financial assistance (loan charges, sale concessions, gift or downpayment assistance, etc.) to be paid by any party on behalf of the borrower? Yes No

If Yes, report the total dollar amount and describe the items to be paid.CONTRACT

Neighborhood Characteristics One-Unit Housing Trends One-Unit Housing Present Land Use %

Note: Race and the racial compositio n of the neighborhood are not appraisal factors .

Location Urban Suburban Rural Property Values Increasing Stable Declining PRICE AGE One-Unit %

Built-Up Over 75% 25-75% Under 25% Demand/Supply Shortage In Balance Over Supply $(000) (yrs) 2-4 Unit %

Growth Rapid Stable Slow Marketing Time Under 3 mths 3-6 mths Over 6 mths Low Multi-Family %

Neighborhood Boundaries High Commercial %

Pred. Other %

Neighborhood Description

Market Conditions (including support for the above conclusions)

NEIGHBORHOOD

Dimensions Area Shape View

Specific Zoning Classification Zoning Description

Zoning Compliance Legal Legal Nonconforming (Grandfathered Use) No Zoning Illegal (describe)

Is the highest and best use of the subject property as improved (or as proposed per plans and specif ications) the present use? Yes No If No, describe.

Utilities Public Other (describe) Public Other (describe) Off-site ImprovementsType Public Priva

Electricity Water Street

Gas Sanitary Sewer Alley

FEMA Special Flood Hazard Area Yes No FEMA Flood Zone FEMA Map # FEMA Map Date

Are the uti li ties and off -s ite improvements typ ical for the market area? Yes No I f No, describe.

Are there any adverse site conditions or external factors (easements, encroachments, environmental conditions, land uses, etc.)? Yes No If Yes, describe.

SITE

GENERAL DESCRIPTION FOUNDATION EXTERIOR DESCRIPTION materials/condition INTERIOR materials/conditio

Units One One with Accessory Unit Concrete Slab Crawl Space Foundation Walls Floors

# of Stories Full Basement Partial Basement Exterior Walls Walls

Type Det. Att. S-Det./End Unit Basement Area sq. ft. Roof Surface Trim/Finish

Existing Proposed Under Const. Basement Finish % Gutters & Downspouts Bath Floor

Design (Style) Outside Entry/Exit Sump Pump Window Type Bath Wainscot

Year Built Evidence of Infestation Storm Sash/Insulated Car Storage None

Effective Age (Yrs) Dampness Settlement Screens Driveway # of Cars

Attic None Heating FWA HWBB Radiant Amenities WoodStove(s) # Driveway Surface

Drop Stair Stairs Other Fuel Fireplace(s) # Fence Garage # of Cars

Floor Scuttle Cooling Central Air Conditioning Patio/Deck Porch Carport # of Cars

Finished Heated Individual Other Pool Other Att. Det. Built-

Appliances Refrigerator Range/Oven Dishwasher Disposal Microwave Washer/Dryer Other (describe)Finished area above grade contains: Rooms Bedrooms Bath(s) Square Feet of Gross Living Area Above Grad

Additional features (special energy efficient items, etc.).OVEMENTS

49212

SUMMARY APPRAISAL REPORT

DOM 99;Inspection, MLS Data, Public Records. The subject was listed for sale on 8/06/2012

for $130,000 under MLS # 523683, reduced after 47 dom to $117,000 reduced after 77 dom to $105,300 and is now pending.

X

4607 Charlotte Highway Suite 1, Lake Wylie, SC 29710Neighborhood Housing Group, LLC

XX

00X

9309.009569Haywood Road

77420110105446

Metes and Bounds, See Attached Addendum page

HendersonSecretary of HUDN/A

28791NCHendersonville1732 Haywood Road

$0;;No financial assistance provided.

X

Contract/Pub ReX11/19/201262,311

REO sale;The subject is currently under contract for $62,311 with typical terms for a HUD, REO resale.

X

See Attached Addendum

No unfavorable factors were noted by a visual inspection. Medical services, shopping and most facilities are within

a short drive. Most properties are well maintained, some with larger sites having a variety of outbuildings, small barns, sheds and wood

storage sheds. The overall area is a blend of homes of different styles and ages, types of construction as well as lot sizes.

15Vacant

15

70

50

100

0

150

210

70

Asheville Hwy is to the east, Blythe st to the West, 6th Ave W to the

South, community of Mountain Home to the North of the subject

X

X

X

X

X

X

X

See Attached AddendumX

10/02/20083700956900JXX

None

XAsphalt

X

X

X

X

X

X

Medium Density ResidentialR-15

A;CtyStr;ResIrregular12197 sf112x100x135x103

FP

2,0102.037X

0

0

Asphalt

2X

Fbrglass/tl-Av

Tl/Av

Wood/Av

Shtrck,Panel-Av

Wd,Pq,Tl-Av

OBXNone

rearXfrntX

None1X

0

Yes-G

Yes/Yes-AV

Vinyl/Av

Aluminium-Av

Asph. Sh./Av

Brick,vnl-Av

Concrete Block-Av

X

Gas

X

0

0

X

X

15

1956

Ranch

X

X

1

X


13/66

Uniform Residential Appraisal Report File No.There are comparable properties currently offered for sale in the subject neighborhood ranging in price from $ to $ .

There are comparable sales in the subject neighborhood within the past twelve months ranging in sale price from $ to $ .

FEATURE SUBJECT

Address

Proximity to Subject

Sale Price $

Sale Price/Gross Liv. Area $ sq. ft.Data Source(s)

Verification Source(s)

VALUE ADJUSTMENTS DESCRIPTION

Sale or Financing

Concessions

Date of Sale/Time

Location

Leasehold/Fee Simple

Site

View

Design (Style)

Quality of Construction

Actual AgeCondition

Above Grade Total Bdrms. Baths

Room Count

Gross Living Area sq. ft.

Basement & Finished

Rooms Below Grade

Functional Utility

Heating/Cooling

Energy Efficient Items

Garage/Carport

Porch/Patio/Deck

Net Adjustment (Total)

Adjusted Sale Price

of Comparables

COMPARABLE SALE NO. 1

$

$ sq. ft.

DESCRIPTION +(-) $ Adjustment

Total Bdrms. Baths

sq. ft.

+ - $

Net Adj. %

Gross Adj. % $


$

$ sq. ft.


Total Bdrms. Baths

sq. ft.

+ - $

Net Adj. %

Gross Adj. % $


$

$ sq. ft.


Total Bdrms. Baths

sq. ft.

+ - $

Net Adj. %

Gross Adj. % $

I did did not research the sale or transfer history of the subject property and comparable sales. If not, explain

My research did did not reveal any prior sales or transfers of the subject property for the three years prior to the effective date of this appraisal.

Data source(s)

My research did did not reveal any prior sales or transfers of the comparable sales for the year prior to the date of sale of the comparable sale.

Data source(s)

Report the results of the research and analysis of the prior sale or transfer history of the subject property and comparable sales (report additional prior sales on page 3).

ITEM SUBJECT

Date of Prior Sale/Transfer

Price of Prior Sale/Transfer

Data Source(s)

Effective Date of Data Source(s)

COMPARABLE SALE NO. 1 COMPARABLE SALE NO. 2 COMPARABLE SALE NO. 3

Analysis of prior sale or transfer history of the subject property and comparable sales

Summary of Sales Comparison Approach.

SALESCOMP

ARISONAPPROACH

49212


205,500132,00016

230,000125,00010

OBOutbldings,Fence

1 FPFireplace

Patio/Dck,Porch

None

Thermo/Typical

FWA C/Air

Average

0sf

2,01020.00

2.037

C256

Q3

Ranch

N;CtyStr;Res

12197 sf

Fee Simple

A;BsyRd;Res

31.00

62,311


1732 Haywood Road

154,10013.0

-9.4

15,900X

500None

1 FP

Patio/Dck,Porch

-6,0002 Gar Attached

Thermo/Typical

FWA C/Air

Average

-4,200836sf0sfwo

2,5001,886

02.036

C2 10057

Q3

Ranch

0N;Res;Res

-2,00029185 sf

Fee Simple

-6,800N;Res;

s08/12;unk

Conv;0

ArmLth

Public Records & MLS

Innovia # 520556;DOM 6190.14

170,000

0.70 MILES W


1330 Valmont Drive

150,60018.3

0.4

600X

0Fence

1 FP

Patio/Dck,Porch

-6,0002 Gar Attached

Thermo/Typical

FWA C/Air

Average

0sf

5,0001,758

02.036

9,000C3 -1,10045

Q3

Ranch

0N;Res;Res

-30014810 sf

Fee Simple

-6,000N;Res;

s06/12;c04/12

VA;0

ArmLth


Innovia# 507440;DOM 14085.32

150,000

0.09 MILES SW


1072 Maplewood Court

181,70012.7

-9.2

18,30X

Fence

1 FP

Patio/Dck,Porch

-2,002 Gar Built In

Thermo/Typical

FWA C/Air

Average

-1,60324sf0sfwo

-6,202,322

-3,003.047

C2 -1,0046

Q3

Ranch

N;Res;Res

3,5012197 sf

Fee Simple

-8,00N;Res;

s09/12;c08/12

FHA;0

REO


Innovia # 522482;DOM 2186.13

200,000

1.48 MILES WNW


900 Toxaway Drive

MLS and Public Records

X

MLS and Public Records

X

X

08/20/2012

Realist

$007/17/2012

08/20/2012

Realist

$012/09/1997

08/20/2012

Realist

$260,00010/09/1991

08/20/2012

Realist

$160,53503/16/2012


The subject was transferred as noted in an apparent foreclosure

transaction to the Secretary of HUD on 7/17/2012 with no dollar amount recorded. Before that, the subject had a substitute trustee's

deed recorded 5/22/2012. Before that it was transferred on 04/11/2006 for either $104,000 (Realist) or $145,000 (MLS) in a market

transaction. No other transfers found for the subject in the past 3 years. No transfers found for the comparables in the past year

except sale #3 which transferred as noted in an apparent foreclosure transaction. Sales history has no bearing on current value

opinion. Where there is no date of transfer or price given below the grid, no data was found.


14/66

Uniform Residential Appraisal Report File No.

ADDITION

ALCOMMENTS

COST APPROACH TO VALUE (not requi red by Fann ie Mae)

Provide adequate information for the lender/client to replicate the below cost figures and calculations.

Support for the opinion of site value (summary of comparable land sales or other methods for estimating site value)

ESTIMATED REPRODUCTION OR REPLACEMENT COST NEW

Source of cost data

Quality rating from cost service Effective date of cost data

Comments on Cost Approach (gross living area calculations, depreciation, etc.)

Estimated Remaining Economic Life (HUD and VA only) Years

OPINION OF SITE VALUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . = $

Dwelling Sq. Ft. @ $ . . . . . . . . . . . . = $

Sq. Ft. @ $ . . . . . . . . . . . . = $

Garage/Carport Sq. Ft. @ $ . . . . . . . . . . . . = $

Total Estimate of Cost-New . . . . . . . . . . . . = $

Less Physical Functional External

Depreciation = $ (

Deprec iated Cost of Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . = $

"As-is " Value of Si te Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . = $

INDICATED VALUE BY COST APPROACH . . . . . . . . . . . . . . . . . . . . . . = $

COSTAPPROA

CH

INCOME APPROACH TO VALUE (not requi red by Fannie Mae)

Estimated Monthly Market Rent $ X Gross Rent Multiplier = $ Indicated Value by Income Approach

Summary of Income Approach (including support for market rent and GRM)INCOME

PROJECT INFORMATION FOR PUDs (if appl icable)

49212


The appraiser is NOT a licensed home inspector. Unless otherwise noted, all mechanicals (HVAC, plumbing, wiring, fixtures,

appliances and any other mechanical systems) are assumed to be in working order. The appraisal assumes adequate, legal means of

ingress and egress to and from the property.

Information or analysis of hazardous materials or the indicated lack of these materials at the subject site or in the subject neighborhood

is arrived at through visual observations only. The appraiser has no expertise in the field of hazardous materials; either finding or

removal of such materials and cannot represent whether these materials exist on the subject property or not.

If the subject property is served by a well and /or septic system, no representation as to the quality or the quantity from the well or the

condition and functionality of the septic system is made in this report. A water quality test and septic system examination may be

necessary to insure that both are functioning in an acceptable manner.

For existing home appraisal, the crawl space or the lower level of the home may be inspected for the readily visible existence of excess

moisture or standing water. No inspection of the property for structural integrity, air flow, the existence of mold or mildew, drain line

leakage or termite damage is expressed or implied.

The roof covering of existing homes is inspected visually from ground level. Any known or indicated (by sight) problems are noted in

the report. The lack of any problems noted DOES NOT that the roof is not leaking or will not leak in the future. Any assurance of the

integrity of the roof or roof covering against leaking or failure would be obtained by a qualified specialist.

Existing homes may contain some form of mold. As this substance more often than not is not visible from the exterior of finishes, theappraiser makes no representation as to whether mold may be present in this property. A mold inspection is the best way to ascertain

whether mold is present or not. If there is any doubt about the existence of mold, an inspection should be obtained by a qualified home

inspector or mold specialist.

If any sketches are shown in this report, they may be rounded and are approximate measurements not intended to be exact or drawn to

scale.

213,23

183,23

57,8649,64448,220

75

241,10

0

20,00Prchs/Dck,FP's,App's

221,10110.002,010

30,00

60


1/2011AverageMarshall & Swift & Local Builders

X

Site Value based on similar land sales, the Cost

Approach and Extraction of similar sales in the market area.

The income approach was not used due to owner occupancy.

000


15/66


This report form is designed to report an appraisal of a one-unit property or a one-unit property with an accessory unit; including aunit in a planned unit development (PUD). This report form is not designed to report an appraisal of a manufactured home or a unitin a condominium or cooperative project.

This appraisal report is subject to the following scope of work, intended use, intended user, definition of market value, statement ofassumptions and limiting conditions, and certifications. Modifications, additions, or deletions to the intended use, intended user,

definition of market value, or assumptions and limiting conditions are not permitted. The appraiser may expand the scope of workto include any additional research or analysis necessary based on the complexity of this appraisal assignment. Modifications ordeletions to the certifications are also not permitted. However, additional certifications that do not constitute material alterationsto this appraisal report, such as those required by law or those related to the appraisers continuing education or membership in anappraisal organization, are permitted.

SCOPE OF WORK: The scope of work for this appraisal is defined by the complexity of this appraisal assignment and thereporting requirements of this appraisal report form, including the following definition of market value, statement of assumptionsand limiting conditions, and certifications. The appraiser must, at a minimum: (1) perform a complete visual inspection of theinterior and exterior areas of the subject property, (2) inspect the neighborhood, (3) inspect each of the comparable sales from atleast the street, (4) research, verify, and analyze data from reliable public and/or private sources, and (5) report his or her analysis,opinions, and conclusions in this appraisal report.

INTENDED USE: The intended use of this appraisal report is for the lender/client to evaluate the property that is the subject ofthis appraisal for a mortgage finance transaction.

INTENDED USER: The intended user of this appraisal report is the lender/client.

DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open marketunder all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price isnot affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing oftitle from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informedor well advised, and each acting in what he or she considers his or her own best interest; (3) a reasonable time is allowed forexposure in the open market; (4) payment is made in terms of cash in U. S. dollars or in terms of financial arrangementscomparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creativefinancing or sales concessions* granted by anyone associated with the sale.

*Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments arenecessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily

identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can bemade to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not alreadyinvolved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of thefinancing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing orconcessions based on the appraiser's judgment.

STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS: The appraisers certification in this report is subject to thefollowing assumptions and limiting conditions:

1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the titleto it, except for information that he or she became aware of during the research involved in performing this appraisal. Theappraiser assumes that the title is good and marketable and will not render any opinions about the title.

2. The appraiser has provided a sketch in this appraisal report to show the approximate dimensions of the improvements. Thesketch is included only to assist the reader in visualizing the property and understanding the appraisers determination of its size.

3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (orother data sources) and has noted in this appraisal report whether any portion of the subject site is located in an identified SpecialFlood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding thisdetermination.

4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question,unless specific arrangements to do so have been made beforehand, or as otherwise required by law.

5. The appraiser has noted in this appraisal report any adverse conditions (such as needed repairs, deterioration, the presence ofhazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware ofduring the research involved in performing this appraisal. Unless otherwise stated in this appraisal report, the appraiser has noknowledge of any hidden or unapparent physical deficiencies or adverse conditions of the property (such as, but not limited to,needed repairs, deterioration, the presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) thatwould make the property less valuable, and has assumed that there are no such conditions and makes no guarantees or

warranties, express or implied. The appraiser will not be responsible for any such conditions that do exist or for any engineering ortesting that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field ofenvironmental hazards, this appraisal report must not be considered as an environmental assessment of the property.

49212



16/66


APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that:

1. I have, at a minimum, developed and reported this appraisal in accordance with the scope of work requirements stated in thisappraisal report.

2. I performed a complete visual inspection of the interior and exterior areas of the subject property. I reported the condition of

the improvements in factual, specific terms. I identified and reported the physical deficiencies that could affect the livability,soundness, or structural integrity of the property.

3. I performed this appraisal in accordance with the requirements of the Uniform Standards of Professional Appraisal Practicethat were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place at thetime this appraisal report was prepared.

4. I developed my opinion of the market value of the real property that is the subject of this report based on the sales comparisonapproach to value. I have adequate comparable market data to develop a reliable sales comparison approach for this appraisalassignment. I further certify that I considered the cost and income approaches to value but did not develop them, unless otherwiseindicated in this report.

5. I researched, verified, analyzed, and reported on any current agreement for sale for the subject property, any offering for saleof the subject property in the twelve months prior to the effective date of this appraisal, and the prior sales of the subject propertyfor a minimum of three years prior to the effective date of this appraisal, unless otherwise indicated in this report.

6. I researched, verified, analyzed, and reported on the prior sales of the comparable sales for a minimum of one year prior to thedate of sale of the comparable sale, unless otherwise indicated in this report.

7. I selected and used comparable sales that are locationally, physically, and functionally the most similar to the subject property.

8. I have not used comparable sales that were the result of combining a land sale with the contract purchase price of a homethat has been built or will be built on the land.

9. I have reported adjustments to the comparable sales that reflect the market's reaction to the differences between the subjectproperty and the comparable sales.

10. I verified, from a disinterested source, all information in this report that was provided by parties who have a financial interest inthe sale or financing of the subject property.

11. I have knowledge and experience in appraising this type of property in this market area.

12. I am aware of, and have access to, the necessary and appropriate public and private data sources, such as multiple listingservices, tax assessment records, public land records and other such data sources for the area in which the property is located.

13. I obtained the information, estimates, and opinions furnished by other parties and expressed in this appraisal report fromreliable sources that I believe to be true and correct.

14. I have taken into consideration the factors that have an impact on value with respect to the subject neighborhood, subjectproperty, and the proximity of the subject property to adverse influences in the development of my opinion of market value. I havenoted in this appraisal report any adverse conditions (such as, but not limited to, needed repairs, deterioration, the presence ofhazardous wastes, toxic substances, adverse environmental conditions, etc.) observed during the inspection of the subject propertyor that I became aware of during the research involved in performing this appraisal. I have considered these adverse conditions inmy analysis of the property value, and have reported on the effect of the conditions on the value and marketability of the subjectproperty.

15. I have not knowingly withheld any significant information from this appraisal report and, to the best of my knowledge, allstatements and information in this appraisal report are true and correct.

16. I stated in this appraisal report my own personal, unbiased, and professional analysis, opinions, and conclusions, which aresubject only to the assumptions and limiting conditions in this appraisal report.

17. I have no present or prospective interest in the property that is the subject of this report, and I have no present or prospectivepersonal interest or bias with respect to the participants in the transaction. I did not base, either partially or completely, myanalysis and/or opinion of market value in this appraisal report on the race, color, religion, sex, age, marital status, handicap,familial status, or national origin of either the prospective owners or occupants of the subject property or of the present owners oroccupants of the properties in the vicinity of the subject property or on any other basis prohibited by law.

18. My employment and/or compensation for performing this appraisal or any future or anticipated appraisals was not conditionedon any agreement or understanding, written or otherwise, that I would report (or present analysis supporting) a predeterminedspecific value, a predetermined minimum value, a range or direction in value, a value that favors the cause of any party, or the

attainment of a specific result or occurrence of a specific subsequent event (such as approval of a pending mortgage loanapplication).

49212



17/66


22. I am aware that any disclosure or distribution of this appraisal report by me or the lender/client may be subject to certain lawsand regulations. Further, I am also subject to the provisions of the Uniform Standards of Professional Appraisal Practice thatpertain to disclosure or distribution by me.

23. The borrower, another lender at the request of the borrower, the mortgagee or its successors and assigns, mortgage insurers,government sponsored enterprises, and other secondary market participants may rely on this appraisal report as part of any

mortgage finance transaction that involves any one or more of these parties.

24. If this appraisal report was transmitted as an electronic record containing my electronic signature, as those terms aredefined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission of this appraisalreport containing a copy or representation of my signature, the appraisal report shall be as effective, enforceable and valid as if apaper version of this appraisal report were delivered containing my original hand written signature.

25. Any intentional or negligent misrepresentation(s) contained in this appraisal report may result in civil liability and/or criminalpenalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Section1001, et seq., or similar state laws.

SUPERVISORY APPRAISER'S CERTIFICATION: The Supervisory Appraiser certifies and agrees that:

1. I directly supervised the appraiser for this appraisal assignment, have read the appraisal report, and agree with the appraisersanalysis, opinions, statements, conclusions, and the appraisers certification.

2. I accept full responsibility for the contents of this appraisal report including, but not limited to, the appraisers analysis,opinions, statements, conclusions, and the appraisers certification.

3. The appraiser identified in this appraisal report is either a sub-contractor or an employee of the supervisory appraiser (or theappraisal firm), is qualified to perform this appraisal, and is acceptable to perform this appraisal under the applicable state law.

4. This appraisal report complies with the Uniform Standards of Professional Appraisal Practice that were adopted andpromulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place at the time this appraisalreport was prepared.

5. If this appraisal report was transmitted as an electronic record containing my electronic signature, as those terms aredefined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission of this appraisalreport containing a copy or representation of my signature, the appraisal report shall be as effective, enforceable and valid as if apaper version of this appraisal report were delivered containing my original hand written signature.

APPRAISER

Signature

Name

Company Name

Company Address

Telephone Number

Email Address

Date of Signature and Report

Effective Date of Appraisal

State Certification #

or State License #or Other (describe) State #

State

SUPERVISORY APPRAISER (ONLY IF REQUIRED)

Signature

Name

Company Name

Company Address

Telephone Number

Email Address

Date of Signature

State Certification #

or State License #

StateExpiration Date of Certification or License

49212


NC

A-5960

11/15/2012

11/27/2012

[email protected]

828-689-2098

Marshall,NC 28753

431 Beetree Road

Advanced Appraisals

Gordon Lucks


18/66

Uniform Residential Appraisal Report File No.FEATURE SUBJECT

Address

Proximity to Subject

Sale Price $

Sale Price/Gross Liv. Area $ sq. ft.

Data Source(s)

Verification Source(s)VALUE ADJUSTMENTS DESCRIPTION

Sale or Financing

Concessions

Date of Sale/Time

Location

Leasehold/Fee Simple

Site

View

Design (Style)

Quality of Construction

Actual Age

Condition

Above GradeTotal Bdrms. Baths

Room Count

Gross Living Area sq. ft.

Basement & Finished

Rooms Below Grade

Functional Utility

Heating/Cooling

Energy Efficient Items

Garage/Carport

Porch/Patio/Deck

Net Adjustment (Total)

Adjusted Sale Price

of Comparables


$

$ sq. ft.


Total Bdrms. Baths

sq. ft.

+ - $

Net Adj. %

Gross Adj. % $


$

$ sq. ft.


Total Bdrms. Baths

sq. ft.

+ - $

Net Adj. %

Gross Adj. % $


$

$ sq. ft.


Total Bdrms. Baths

sq. ft.

+ - $

Net Adj. %

Gross Adj. % $

ITEM SUBJECT

Date of Prior Sale/Transfer

Price of Prior Sale/Transfer

Data Source(s)

Effective Date of Data Source(s)

COMPARABLE SALE NO. 4 COMPARABLE SALE NO. 5 COMPARABLE SALE NO. 6

Summary of Sales Comparison Approach

SALESCOMPARISONAPPROA

CH

49212


OBOutbldings,Fence

1 FPFireplace

Patio/Dck,Porch

None

Thermo/Typical

FWA C/Air

Average

0sf

2,01020.00

2.037

C2

56

Q3

Ranch

N;CtyStr;Res

12197 sf

Fee Simple

A;BsyRd;Res

31.00

62,311


1732 Haywood Road

163,85024.6

-0.7

1,150X

0Fence

1 FP

Patio/Dck,Porch

-1,0002 Gar Built In

Thermo/Typical

3,000FWA /None

Average

01rr0br0.0ba0o

-10,800922sf622sfwo

8,7001,575

02.036

8,000C3

-1,20044

Q3

Ranch

0N;Res;Res

-1,25023087 sf

Fee Simple

-6,600N;Res;

s08/12;c07/12

Conv;0

ArmLth


Innovia #520815;DOM 11

104.76

165,000

1.24 MILES WNW


921 Indian Hill Drive

176,00016.7

-12.0

24,000X

500None

1 FP

Patio/Dck,Porch

-2,0002 Gar Built In

Thermo/Typical

FWA C/Air

Average

01rr0br0.0ba2o

-15,3001801sf630sfwo

4,2001,801

02.036

C2

-1,20044

Q3

Ranch

0N;Res;Res

-2,20031363 sf

Fee Simple

-8,000N;Res;

s08/12;c06/12

Conv;0

ArmLth


Innovia # 520272;DOM 16

111.05

200,000

1.31 MILES WNW


936 Toxaway Drive

164,90019.5

-8.3

15,00X

OB

1 FP

Patio/Dck,Porch

-2,002 Gar Built In

Thermo/Typical

FWA C/Air

Average

0rr0br0.0ba1o

-11,0001943sf133sfwo

1,943

2.036

10,00C3

-1,7039

Q3

Ranch

N;Res;Res

-1,3023522 sf

Fee Simple

A;BsyRd;Res

-9,00Active

;0

Listing


Innovia #520741;DOM 154

92.59

179,900

1.80 MILES NW


2901 Hampton Drive

08/20/2012

Realist

$0

07/17/2012

08/20/2012

Realist

$145,000

04/11/2007

08/20/2012

Realist

$186,000

04/30/2001

08/20/2012

Realist

$155,000

07/20/2000

Sales 4 and 5 are included to support the value opinion and to give the reader as broad of an

understanding as possible of the immediate market area.

LISTING #6 is included at the request of the client to demonstrate marketability. It was adjusted at a typical local list/sales price ratio

of 5%.


19/66


20/66

Uniform Appraisal Dataset Definit ions File No.

Condition Ratings and Definitions

C1 The improvements have been very recently constructed and have not previously been occupied. The entire structure and all components are new and the dwelling features no

physical depreciation.*

*Note: Newly constructed improvements that feature recycled materials and/or components can be considered new dwellings provided that the dwelling is placed on a 100% new

foundation and the recycled materials and the recycled components have been rehabilitated/re-manufactured into like-new condition. Recently constructed improvements that have

not been previously occupied are not considered "new" if they have any significant physical depreciation (i.e., newly constructed dwellings that have been vacant for an extended

period of time without adequate maintenance or upkeep).

C2 The improvements feature no deferred maintenance, little or no physical depreciation, and require no repairs. Virtually all building components are new or have been recently

repaired, refinished, or rehabilitated. All outdated components and finishes have been updated and/or replaced wi th components that meet current standards. Dwellings in this category

either are almost new or have been recently completely renovated and are similar in condition to new construction.

C3 The improvements are well maintained and feature limited physical depreciation due to normal wear and tear. Some components, but not every major building component, may

be updated or recently rehabilitated. The structure has been well maintained.

C4 The improvements feature some minor deferred maintenance and physical deterioration due to normal wear and tear. The dwelling has been adequately maintained and requires

only minimal repairs to building components/mechanical systems and cosmetic repairs. All major building components have been adequately maintained and are functionally adequate.

C5 The improvements feature obvious deferred maintenance and are in need of some significant repairs. Some building components need repairs, rehabilitation, or updating. The

functional utility and overall livability is somewhat diminished due to condition, but the dwelling remains useable and functional as a residence.

C6 The improvements have substantial damage or deferred maintenance with deficiencies or defects that are severe enough to affect the safety, soundness, or structural integrityof the improvements. The improvements are in need of substantial repairs and rehabilitation, including many or most major components.

Quality Ratings and Definitions

Q1 Dwellings with this quality rating are usually unique structures that are individually designed by an architect for a specified user. Such residences typically are constructed from

detailed architectural plans and specifications and feature an exceptionally high level of workmanship and exceptionally high-grade materials throughout the interior and exterior of the

structure. The design features exceptionally high-quality exterior refinements and ornamentation, and exceptionally high-quality interior refinements. The workmanship, materials, and

finishes throughout the dwelling are of exceptionally high quality.

Q2 Dwellings with this quality rating are often custom designed for construction on an individual property owner's site. However, dwellings in this quality grade are also found in

high-quality tract developments featuring residences constructed from individual plans or from highly modified or upgraded plans. The design features detailed, high-quality exterio

ornamentation, high-quality interior refinements, and detail. The workmanship, materials, and finishes throughout the dwelling are generally of high or very high quality.

Q3 Dwellings with this quality rating are residences of higher quality built from individual or readily available designer plans in above-standard residential tract developments or on

an individual property owner's site. The design includes significant exterior ornamentation and interiors that are well finished. The workmanship exceeds acceptable standards and

many materials and finishes throughout the dwelling have been upgraded from "stock" standards.

Q4 Dwellings with this quality rating meet or exceed the requirements of applicable building codes. Standard or modified standard building plans are utilized and the design includes

adequate fenestration and some exterior ornamentation and interior refinements. Materials, workmanship, finish, and equipment are of stock or builder grade and may feature some

upgrades.

Q5 Dwellings with this quality rating feature economy of construction and basic functionality as main considerations. Such dwellings feature a plain design using readily available or

basic floor plans featuring minimal fenestration and basic finishes with minimal exterior ornamentation and limited interior detail. These dwellings meet minimum building codes and are

constructed with inexpensive, stock materials with limited refinements and upgrades.

Q6 Dwellings with this quality rating are of basic quality and lower cost; some may not be suitable for year-round occupancy. Such dwellings are often built with simple plans or

without plans, often utilizing the l owest quality building materials. Such dwellings are often built or expanded by persons who are professionally unskilled or possess only minima

construction skills. Electrical, plumbing, and other mechanical systems and equipment may be minimal or non-existent. Older dwellings may feature one or more substandard or

non-conforming additions to the original structure.

Definitions of Not Updated, Updated, and Remodeled

Not Updated

Little or no updating or modernization. This description includes, but is not limited to, new homes.

Residential properties of fifteen years of age or less often reflect an original condition with no updating, if no major components have been replaced or updated. Those over fifteen

years of age are also considered not updated if the appliances, fixtures, and finishes are predominantly dated. An area that is 'Not Updated' may still be well maintained and fully

functional, and this rating does not necessarily imply deferred maintenance or physical /functional deterioration.

Updated

The area of the home has been modified to meet current market expectations. These modifications are limited in terms of both scope and cost.

An updated area of the home should have an improved look and feel, or functional utility. Changes that constitute updates include refurbishment and/or replacing components to meet

existing market expectations. Updates do not include significant alterations to the existing structure.

49212



21/66

Uniform Appraisal Dataset Definit ions File No.

Abbreviations Used in Data Standardization Text

Abbrev.

ac

AdjPrk

AdjPwr

A

ArmLthba

br

B

Cash

CtySky

CtyStr

Comm

c

Conv

CrtOrd

DOM

e

EstateFHA

GlfCse

Glfvw

Ind

n

Lndfl

LtdSght

Listing

Abbrev.

Mtn

N

NonArm

BsyRd

oPrk

Pstrl

PwrLn

PubTrn

rr

Relo

REO

Res

RH

s

Short

sf

sqmUnk

VA

w

wo

wu

WtrFr

Wtr

Woods

Full Name

Acres

Adjacent to Park

Adjacent to Power Lines

Adverse

Arms Length SaleBathroom(s)

Bedroom

Beneficial

Cash

City View Skyline View

City Street View

Commercial Influence

Contracted Date

Conventional

Court Ordered Sale

Days On Market

Expiration Date

Estate SaleFederal Housing Authority

Golf Course

Golf Course View

Industrial

Interior Only Stairs

Landfill

Limited Sight

Listing

Full Name

Mountain View

Neutral

Non-Arms Length Sale

Busy Road

OtherPark View

Pastoral View

Power Lines

Public Transportation

Recreational (Rec) Room

Relocation Sale

REO Sale

Residential

USDA Rural Housing

Settlement Date

Short Sale

Square Feet

Square MetersUnknown

Veterans Administration

Withdrawn Date

Walk Out Basement

Walk Up Basement

Water Frontage

Water View

Woods View

Approp riate Fields

Area, Site

Location

Location

Location & View

Sale or Financing ConcessionsBasement & Finished Rooms Below Grade

Basement & Finished Rooms Below Grade

Location & View

Sale or Financing Concessions

View

View

Location

Date of Sale/Time



Data Sources

Date of Sale/Time

Sale or Financing ConcessionsSale or Financing Concessions

Location

View

Location & View


Location

View


Approp riate Fields

View

Location & View


Location

Basement & Finished Rooms Below GradeView

View

View

Location




Location & View


Date of Sale/Time


Area, Site, Basement

Area, Site, BasementDate of Sale/Time


Date of Sale/Time



Location

View

View

Other Appraiser-Defined Abbreviations

Abbrev. Abbrev.Full Name Full NameAppropriate Fields Appropriate Fields

49212



22/66

ADDENDUM

Borrower: N/A File No.: 49212

Property Address: 1732 Haywood Road Case No.:

City: Hendersonville State: NC Zip: 28791

Lender: Neighborhood Housing Group, LLC

BEGINNING ADDENDUM

Clarification of Intended Use and Intended User:

The Intended User of this appraisal report is the Lender/Client. The Intended Use is to evaluate the property that is thesubject of this appraisal for a mortgage finance transaction, subject to the stated Scope of Work, purpose of the appraisal,reporting requirements of this appraisal report form, and Definition of Market Value. No additional Intended Users areidentified by the appraiser.

Prior Services StatementI have performed no services as an appraiser or in any other capacity regarding the property that is the subject of thisreport within the 3-year period immediately preceding acceptance of this assignment except the subject was appraised bythis company on 8/03/2012.

REASONABLE EXPOSURE TIMEReasonable exposure time for the subject property opinion of value is estimated to be over 6 months.

No utilities were on at the time of inspection; the condition of the electrical, plumbing and mechanical systems is recommended to beinspected by a qualified professional.

The mechanical systems were not checked for functionality by the

appraiser; however, a visual inspection was performed.

EXTRAORDINARY ASSUMPTIONS HAVE BEEN MADE as to the functionality of utilities and subsequently appliances asat the time of inspection, there were no functioning utilities.Market Conditions

Current market conditions are such that mortgage financing, FHA VA and conventional is available with some evidence ofbuydowns, concessions, and discounts having an effect on value. With the turbulence in financial markets lenders aretightening requirements for lending with more stringent LTV and credit scores. Homes, if priced competitively, tend to sellwithin the Marketing Time noted above, with unique properties, i.e. large acreage and waterfront tending to take longer. Thesubject is considered to be typical of other homes in the area. Supply and demand are tending toward an oversupply and

marketing times are tending to extend.

CONDITION OF THE PROPERTY

C2;Kitchen-remodeled-less than one year ago;Bathrooms-remodeled-less than one year ago;C2Physicaldepreciation taken based on the estimated effective age of the subject improvements. No external or functionalinadequacies noted. The subject is of average quality and in average condition with some repairs needed attime of inspection: HP unit is damaged; kitchen cabinets damaged. Kitchen cabinets damaged: estimatedcosmetic cost to cure is $500.

BUT, At the request of the client this report is being rendered to the following upgrades and repairs:

1.)Refurbish landscaping;2.)Main kitchen upgrade';3.) New Tile

4.)New Countertops;5.)Cabinets;6.)New HVAC;7.)Paint;8.) Replace distress light fixtures in the house9.)Update all plumbing and lighting;10.) Completely upgrade the 2nd kitchen are11.) Replace vinyl Windows12.) Pressure wash deck13.) inspect Roof14.)Any other repairs the contractor may suggest to bring above the marketable value of the house.

So, upon completion the subject home will be of good quality (due to upgrades) and will be good, renovated

condition.

Comments on Sales Comparison


23/66

ADDENDUM





Site adjustments made at $5,000 per acre contributing value;

Bathroom adjustments are made at $3,000 per bath and $2,000 per half bathroom.

No bedroom adjustments deemed necessary as GLA adjustment should suffice.

Age adjustments made at a nominal $100 per year contributing value as condition was considered the more sal ient sellingfactor and all sales appear to have sold in similar condition to the subject, except sales #2 and #4, and listings #6 and #7which appear to have sold in or be in inferior condition relative to the subject's proposed condition and were thereforeadjusted at $5 per above grade sq. ft. of GLA contributing value for this inferiority.

It was not possible to fully bracket the subject's GLA with recent similar proximate sales with no adverse effects noted.

Unfortunate but unavoidable across the board adjustments made as all sales are located on a superior, not so busy streetlike the subject, and no recent similar proximate sales were found to bracket the subject's location on a busy street with noadverse effects noted. All of these sales were adjusted at 4% of sale price contributing value for this superior location.

It was not possible to bracket the subject's GLA within the desired 20% guideline with all sales with recent similar,proximate comparables with no adverse effects noted on marketability or value as this is typical in this market that has avast array of different types and sizes of homes.

REO sales may be utilized ONLY when such sales are deemed to be the best for the market area, AND they are: 1) In thesubject neighborhood or in reasonable proximity. 2) Subject to reasonable adjustment. 3) Sold with a willing buyer andseller. 4) Exposed to the market for a reasonable period of time. The 4 HUD requirements for the use of REO comparableshave been met. (Sale #3 which was necessarily included to bracket the subject's above grade GLA.)

Final Reconciliation

All sales are closed, the most recent, closest and similar to the subject property overall of all the sales examined with equalutility. Adjustments to sales are market derived and considered reasonable. Correlation is toward the mid rangeindication.

Larger than desired disparity in range of adjusted values presented, and hence correlation is toward the midrange value

indication.

All sales given equal weight in the final reconcil iation.

The cost approach analysis indicates a higher value than the sales comparison approach value, but most weight is given tothe sales comparison approach as it remains the best indicator of market value.

The Income approach not used or applicable due to owner occupancy.

The listings were also given consideration in the final reconciliation as they are located in the subject's market area, anddue to their similar utility and location, they would be considered competitive substitutions to the subject in an open market.

There is more than a 20% variance in the adjusted value indications between the high and low sale included. This appraiserlikes to give the reader as broad of an understanding of the local market as possible, thereby showing the reader thepotential highs and lows, and then a tighter adjusted value range indication with sales 4 and 5.

Cost Approach Comments

No personal property is included in the indicated market value estimate. Marshall & Swift Residential Cost Handbook andlocal builders cost estimates are used to estimate the replacement cost of improvements new, less accrued depreciationfrom all causes. Estimated Remaining Economic Life= 55-60 Yrs.The cost approach has only been developed by the appraiser as an analysis to support the opinion of the property's marketvalue. Use of this data, in whole or part, for other purposes is not intended by the appraiser. Nothing set forth in theappraisal should be relied upon for the purpose of determining the amount or type of insurance coverage to be placed onthe subject property. The appraiser assumes no liability for and does not guarantee that any insurable value estimateinferred from this report will result in the subject property being fully insured for any loss that may be sustained. Further,the cost approach may not be a reliable indication of replacement or reproduction cost for any date other than the effective

date of this appraisal due to changing costs of labor and materials and due to changing building codes and governmentalregulations and requirements.


24/66

Market Conditions Addendum to the Appraisal Report File No.

The purpose of this addendum is to provide the lender/client with a clear and accurate understanding of the market trends and conditions prevalent in the subject neighborhood. This is a require

addendum for all appraisal reports with an effective date on or after April 1, 2009.

Property Address City State Zip Code

Borrower

Instructions: The appraiser must use the information required on this form as the basis for his/her conclusions, and must provide support for those conclusions, regarding housing trends an

overall market conditions as reported in the Neighborhood section of the appraisal report form. The appraiser must fill in all the information to the extent it is available and reliable and must provid

analysis as indicated below. If any required data is unavailable or is considered unreliable, the appraiser must provide an explanation. It is recognized that not all data sources will be able to

provide data for the shaded areas below; if it is available, however, the appraiser must include the data in the analysis. If data sources provide the required information as an average instead of themedian, the appraiser should report the available figure and identify it as an average. Sales and listings must be properties that compete with the subject property, determined by applying the criteria

that would be used by a prospective buyer of the subject property. The appraiser must explain any anomalies in the data, such as seasonal markets, new construction, foreclosures, etc.

Inventory Analysis

Total # of Comparable Sales (Settled)

Absorption Rate (Total Sales/Months)

Total # of Comparable Active Listings

Months of Housing Supply (Total Listings/Ab.Rate)

Median Sale & List Price, DOM, Sale/List %

Median Comparable Sale Price

Median Comparable Sales Days on Market

Median Comparable List Price

Median Comparable Listings Days on Market

Median Sale Price as % of List Price

Seller-(developer, builder, etc.)paid financial assistance prevalent?

Increasing

Increasing

Declining

Declining

Increasing

Declining

Increasing

Declining

Increasing

Declining

Stable

Stable

Stable

Stable

Stable

Stable

Stable

Stable

Stable

Stable

Declining

Declining

Increasing

Increasing

Declining

Increasing

Declining

Increasing

Declining

IncreasingYes No

Prior 712 Months

Prior 712 Months

Prior 46 Months

Prior 46 Months

Current 3 Months

Current 3 Months

Overall Trend

Overall Trend

Explain in detail the seller concessions trends for the past 12 months (e.g., seller contributions increased from 3% to 5%, increasing use of buydowns, closing costs, condo fees, options, etc.

Are foreclosure sales (REO sales) a factor in the market? Yes No If yes, explain (including the trends in list ings and sales of foreclosed properties).

Cite data sources for above information.

Summarize the above information as support for your conclusions in the Neighborhood section of the appraisal report form. If you used any additional information, such as an analysis o

pending sales and/or expired and withdrawn listings, to formulate your conclusions, provide both an explanation and support for your conclusions.

MARKETRESEARCH&A

NALYSIS

If the subject is a unit in a condominium or cooperative project , complete the following: Project Name:Subject Project Data

Total # of Comparable Sales (Settled)

Absorption Rate (Total Sales/Months)

Total # of Active Comparable Listings

Months of Unit Supply (Total Listings/Ab. Rate)

Increasing

Increasing

Declining

Declining

Stable

Stable

Stable

Stable

Declining

Declining

Increasing

Increasing

Prior 712 Months Prior 46 Months Current 3 Months Overall Trend

Are foreclosure sales (REO sales) a factor in the project? Yes No If yes, indicate the number of REO listings and explain the trends in listings and sales of foreclosed properties

Summarize the above trends and address the impact on the subject unit and project.CON

DO/CO

OPPROJECTS

49212


N/A

28791NCHendersonville1732 Haywood Road

XX X

X

X

X

X

X

X

X

X

1.25%

34

159,900

21

200,000

12.12

4

0.33

1

0.95%

139

178,450

80

169,750

1.50

4

2.67

8

0.95%

227

185,000

146

175,000

1.71

2

1.17

7

Current market conditions are such that mortgage financing, FHA VA and conventional is available with some evidence of buydowns,

concessions, and discounts having an effect on value. With the turbulence in financial markets lenders are tightening requirements for

lending with more stringent LTV and credit scores. Homes, if priced competitively, tend to sell within the Marketing Time noted above,

with unique properties, i.e. large acreage and waterfront tending to take longer. The subject is considered to be typical of other homes

in the area. Supply and demand are tending toward an oversupply and marketing times are tending to extend.

Local MLS

After extensive market, manufactured home research, it appears that there is an ever increasing volume of either short sale or

reo(foreclosure) resale properties. The effect of this trend is to lower the market value, as it appears that the reo resale homes are

selling for less than market value, and the resulting consequence with consideration for the principle of substitution, is that overall

resale values are lowered, since a typical buyer could buy a foreclosure resale for less than a a market sale.

X


N/A

N/A


25/66

ADDENDUM





Market Analysis: Seller Concessions Comments

Seller concessions and seller paid closing costs are typical, but not the rule.By analysis of the above figures, it appears thatin the most recent 3 month period, the local market trend is increasing slightly, as compared to a slight decrease from theprevious quarter. This overall greater market area is considered an end destination, and overall has not been terribly

affected by the general national market decline. Sales volume is slower, but property values are remaining relatively stable.There is also the seasonal consideration in that there is an annual cycle where at this time, in the beginning of spring, thereare generally more properties offered for sale explaining the higher number of listings and the consequent higher number ofmonths of housing supply.

The market trends research was conducted on a specific map based, middle age range stick built homes in the subject'simmediate market area in an effort to find adequate data to make a reliable trends assessment.


26/66

SUBJECT PROPERTY PHOTO ADDENDUM

Borrower: File No.:Property Address: Case No.:City: State: Zip:Lender:

FRONT VIEW OF

SUBJECT PROPERTY

Appraised Date:Appraised Value: $

REAR VIEW OFSUBJECT PROPERTY

STREET SCENE


28791NCHendersonville

1732 Haywood Road

49212N/A

165,000

November 15, 2012


27/66

INTERIOR PHOTOS


Kitchen

Comment:

Living Area

Description:

Comment:

Bathroom

Description:

Comment:



1732 Haywood Road

49212N/A


28/66

BATHROOM PHOTOS


Comment:

Comment:

Comment:



1732 Haywood Road

49212N/A

Sunroom

Bathroom

kitchen cabinets damaged


29/66

INTERIOR PHOTOS


Comment:

Comment:

Comment:



1732 Haywood Road

49212N/A

mudroom

Bedroom

side


30/66

Borrower: File No.:Property Address: Case No.:City: State: Zip:Lender: Neighborhood Housing Group, LLC


1732 Haywood Road

49212N/A

SUBJECT PHOTO ADDENDUM

Bedroom

Bedroom

Alternate view of subject


31/66



1732 Haywood Road

49212N/A

SUBJECT PROPERTY PHOTO ADDENDUM

Den

Writing on the Wall


32/66

COMPARABLE PROPERTY PHOTO ADDENDUM


COMPARABLE SALE #1

Sale Date:Sale Price: $

COMPARABLE SALE #2


COMPARABLE SALE #3

Sale Date:



1732 Haywood Road

49212N/A

170,000

s08/12;unk


1330 Valmont Drive

150,000

s06/12;c04/12


1072 Maplewood Court

s09/12;c08/12

Hendersonville, NC 28791900 Toxaway Drive


33/66



COMPARABLE SALE #4


COMPARABLE SALE #5


COMPARABLE SALE #6

Sale Date:



1732 Haywood Road

49212N/A

165,000

s08/12;c07/12


921 Indian Hill Drive

200,000

s08/12;c06/12


936 Toxaway Drive

Active

Hendersonville, NC 287912901 Hampton Drive


34/66



COMPARABLE SALE #7


COMPARABLE SALE #8


COMPARABLE SALE #9

Sale Date:



1732 Haywood Road

49212N/A

199,900

Active


201 Dixon Drive


35/66

FLOORPLAN SKETCH



1732 Haywood Road

49212N/A

Sketch by Apex IV Windows

3.

0'

19.8'

4.

0'

15.3'

10.

0'

18.0'

33.

0'

21.7'

8.

2'

20.3'

8.

2'

10.7' 4.0

'

13.3'

28.

0'

12.9'Bedroom

Bedroom Bath

Bath

Bedroom

Living Room

Sunroom

8.

2'

Mudroom

8.0'

11.

0'

Storage

Kitchen Den

Dining

8.

0'

31.0'

Deck

4.

0'

AREA CALCULATIONS SUMMARY

Code Description Size TotalsGLA1 First Floor 2009.76

P/P

2009.76

Porch 335.74

Porch 61.20

OTH

396.94

Mudroom 95.94

Storage 88.00 183.94

Breakdown Subtotals

LIVING AREA BREAKDOWN

First Floor

8.2 x 20.3 166.46

13.3 x 28.0 372.40

0.4 x 3.0 1.20

23.0 x 52.7 1212.10

10.0 x 18.0 180.00

4.0 x 19.4 77.60


36/66

DIMENSION LIST ADDENDUM


GROSS BUILDING AREA (GBA)GROSS LIVING AREA (GLA)

Area(s) Area % of GLA % of GBA

Living

Level 1

Level 2

Level 3

Other

GBA

Basement

Garage

Area Measurements Area Type

Measurements Factor Total Level 1 Level 2 Level 3 Other Bsmt. Garage

x x =

x x =

x x =

x x =

x x =

x x =

x x =

x x =

x x =

x x =

x x =

x x =x x =

x x =

x x =

x x =

x x =

x x =

x x =

x x =

x x =

x x =

x x =

x x =

x x =

x x =

x x =

x x =

x x =

x x =

x x =

x x =

x x =

x x =

x x =

x x =

x x =

x x =

x x =

x x =

x x =



1732 Haywood Road

49212N/A

0

0

28.9128.91581

0.000.000

0.000.000

100.00100.002,010

100.002,010

2,010

2,010

X77.601.004.0019.40

X180.001.0010.0018.00

X1,212.101.0023.0052.70

X1.201.000.403.00

X372.401.0013.3028.00

X166.461.008.2020.30


37/66

PLAT MAP



1732 Haywood Road

49212N/A


38/66

LOCATION MAP



1732 Haywood Road

49212N/A


39/66



1732 Haywood Road

49212N/A

FLOOD MAP


40/66



1732 Haywood Road

49212N/A

AERIAL TOPOGRAPHY


41/66

File No.

ENVIRONMENTAL COMPLIANCE RECORD

SINGLE FAMILY PROPERTY DISPOSITIONFHA CASE NUMBER:

PROPERTY ADDRESS:

COMPLIANCE FINDINGS SOURCE/DOCUMENTATION

1. HISTORIC PRESERVATIONProperty is is not listed on the National Register of Checked National Register ofHistoric Places. Historical Places.

Property is is not located in an Historical District. Checked National Register ofHistorical Places.

Note: An appropriate deed restriction will be required if

property meets either of the forgoing cond itions.

2. FLOODPLAIN

Property is is not located within the 100-year Panel #:floodplain (Zones A & V).

Map #:

Note: Flood insurance may be required. Date of Map:

3. AIRPORT RUNWAY CLEAR ZONES (24 CER 51D)

Property is is not located within boundary ofrunway zone.

If "yes", Property not within 3,000 feet of** has the airport operator declined to acquire the the runway clear zone.

property? yes no

** a signed disclaimer is required (24 CFR Part 51D).

4. SUMMARY

Additional actions are are not required on the basis of the findings above. If additional actions are required, describethem in an attachment.

Instructions for Completion of Environmental Clearance Record

Environmental Compliance. Single Family Property Disposition is subject to the environmental policy and procedures shown at 24 CFR Part 50,where applicable. An Environmental Compliance Record must be completed for each acquired property prior to listing for sale and the resultsconsidered in the development of the terms and condition of the sale. The Contractor shall use the format contained in Exhibit 4, Attachment B-1,for documentation of the review. The compliance record is to be maintained in the individual property file.

Preparing the Compliance Record. To document the results of compliance findings, use copies of the appropriate floodplain and airport runway maps,and the National Register of Historic Places, in order to identify those properties that are subject to these three requirements. Instructionsfor completing the compliance findings on the Environmental Compliance Record are:

1. Historic Preservation. The National Register of Historic Places identifies specific properties and historic districts which are subject tohistoric preservation requirements. If a HUD-Owned Property is listed on the register, or the district in which it is located is listed, adeed restriction must be prepared. Consult with counsel for appropriate language to be included in the deed.

2. Floodplain. Based on the floodplain map, properties located in Special Flood Hazard Areas (SFHA) which are being sold withHUD-insured mortgages or with buydowns or cash rebates, are required to have flood insurance. At the time of assignment of acase to the closing agent, the closing agent must be alerted to this requirement and must ensure that the purchaser obtains floodinsurance. Such insurance may be purchased from any state licensed agent. If a property is located in a SFHA in a community whichis suspended from or is not participating in the National Flood Insurance Program, the property must be offered on an uninsured basisand without a buydown or cash rebate. Listing advertisements must disclose such properties.

3. Airport Runway Clear Zones. Based on airport clear zone maps, properties located within the runway clear zone must be offered to theairport operator before the public listing. Property will be sold to the airport in accordance with the policy on sales to local governmentsdescribed in Exhibit 2. A decision by the airport operator not to purchase must be documented in the file, preferably in the form of aletter from the airport operator. In the absence of such a letter, a note to the file documenting the verbal response by the airportoperator is sufficient.

Bidders on properties located in runway clear zones must provide a signed Notice to Prospective Buyers of Properties Located inRunway Clear Zones and Clear Zones (see Exhibit 4, Attachment B-2). In those few jurisdictions which have properties in runway clearzones, Selling Brokers must be provided with copies of this notice and be advised that it must be included when submitting a bid on a

t hi h i l t d i l

49212



1732 Haywood Road

X

X

10/02/2008

3700956900J

9569JX

X

X


42/66

File No.

Defective paint surfaces are defined as cracking, scaling, chipping, peeling or loose paint surfaces on all interior andexter ior sur faces on a l l s t ructures which make up the subject property regard less of he ight .

This cert i f icat ion must be completed as part of al l FHA appraisals on propert ies constructed prior to 1978.

FHA CASE NUMBER:

PROPERTY ADDRESS:

I hereby certify that the above property has been visually inspected by me on this date and my inspection revealedthe fo l lowing:

No defective paint surfaces found.

Defective paint surfaces found as follows:

If defective paint is removed from any surface of the structure on the property, c lear compliance for the removalwill be given by the FHA fee appraiser only if the paint chips and other debris are collected in the removal process anddisposed of properly.

Appraiser must transfer these narrative comments to the Valuation Condit ion Sheet, i f defective paint surfaces arefound.

I estimate the cost to treat the defective paint surfaces is .

Signature

Name

Date

State Certif ication # State

Or State License # State

January 1990

REVISED LEAD BASED PAINT CERTIFICATION - SECOND REVISION

Produced using ACI software, 800.234.8727 www.aciweb.com

49212


Certified Residential Real Estate Appraiser A-5960

NCA-5960

11/27/2012

Gordon Lucks

X


1732 Haywood Road

ADVANCED APPRAISALS


43/66

ENVIRONMENTAL ADDENDUMAPPARENT* HAZARDOUS SUBSTANCES AND / OR DETRIMENTAL ENVIRONMENTAL CONDITIONS

Case No.

File No.Borrower/ Client

Address:

Ci ty: County Sta te : Zip code:

L e n d e r

*Apparent is defined as that which is vis ible, obvious, evident or manifest to the appraiser.

This universal Environmental Addendum is for use with any real estate appraisal. Only the statements which have been checked by the appraiser apply

to the property being appraised.

This addendum reports the results of the appraiser's routine inspection of and inquiries about the subject property and its surrounding area. It also states what assumptions

were made about the existence (or nonexistence) of any hazardous substances and/or detrimental environmental conditions. The appraiser is not an expert environmental

inspector and therefore might be unaware of existing hazardous substances and/or detrimental environmental conditions which may have a negative effect on the safety and

value of the property. It is possible that tests and inspections made by a qualified environmental inspector would

Hendersonville Proposal

Documents

Transcript of Hendersonville Proposal