Bernard/Allison Management Services, Inc.- Apartment and Commercial Property Management

The following services are available for additional fees paid to Bernard/Allison which are generally based upon the scope of the work required and dollar amount of the work to be done. Bernard/Allison will also be reimbursed for all direct expenses incurred in providing these services:

1.	Major remodeling and construction projects including evaluation of alternatives, project conceptual design, bid supervision, construction management, job supervision and construction project accounting. The fee for this type of project work will be negotiated prior to the initial investigation or start of construction.
2.	Ownership entity bookkeeping and preparation of year-end work papers.
3.	Customized reports utilizing conversion from Bernard/Allison chart of accounts to owners’ chart of accounts or format.
4.	Preparation of sales, refinance, and appraisal packages if the information required is beyond what is contained in the monthly owner's reports.
5.	The following list summarizes the new development/construction services that are available. The cost for these services is negotiable and is dependent on the number of units and properties and the ownership interests of the parties involved: Market analysis to determine which areas will provide maximum equity growth for new apartment developments Preliminary site selection and estimate of costs involved in preparing the site for construction Preliminary apartment operating budgets and 5-year financial projections Purchase negotiations and land acquisition Obtaining gap financing Site plan development, unit selection, amenity selection, and interior design Architect selection review Working drawings review Contractor selection Bid review Procurement of construction and permanent financing Construction supervision and construction draw review Construction punch list management Rent-up supervision and operating responsibility
6.	Due Diligence Support. The following list summarizes the areas which Bernard/Allison will investigate for a buyer prior to the purchase of an existing property: Arrange for termite inspection, structural inspection, Phase I Environmental Assessment including asbestos testing, radon gas testing Lease audit Inspection of apartment interiors and pricing estimates for correction of deficient items Market survey Exterior grounds and building inspection and pricing estimates for correction of deficient items Interior inspection of units Parking space and parking ratio check Furniture layout check Supervision of mechanical systems inspection by a third party vendor which may include destructive tests to help verify condition Signage renovation and upgrade cost estimates Rental office, recreation room, and apartment model upgrade/remodel costs Preliminary budget and 5-year cash flow and sale forecasts Supervision of natural gas systems by a third party vendor (when needed) Bernard/Allison retains various subcontractors and vendors who complete the technical tests and services, and the Bernard/Allison staff is available to complete all other inspection requirements for the buyer.
7.	Property Sale Support. Bernard/Allison has been successful in working with owners to develop a sales scenario and sales price strategy that enable brokers and real estate salespersons to better understand how a property can best be presented to yield a price acceptable to both buyer and seller. By providing a preliminary package and assisting owners in the broker selection process, we have been able to help lower the cost of sale and increase the probability of an actual closing. The following items are included in our sales package: Property location maps a) Metro Phoenix - freeway maps b) Market area - aerial c) Street map Property description narrative a) Interior amenities b) Exterior amenities c) Site pictures d) Floor plans e) Site plan Sale summary of price, terms, and other requirements Financing summary of all terms and conditions of underlying loans or seller carry-back requirements Normalized budget and 5-year cash flow projections, including IRR for new buyer over holding period Property data, including lease matrix, rent roll, vacancy/notice to vacate status, resident profile, security deposit summary Preliminary title report and copies of other pertinent documents Prior accounting period financial statements Summary of vendor contracts, obligations of the property, and estimates of items in need of repair or estimates of improvements that could be made to generate more income
	By providing this assistance, Bernard/Allison has been successful in maximizing the sales price of buildings under our management. If the owner has provided the buyer with carry-back financing, Bernard/Allison will periodically inspect the property and review vacancy status, pricing, and the property's financial reports to ensure the property is making progress, and if not, alert the seller as to the potential problems that could arise if the property's direction is not changed.