Business Plan
Prepared by
Advanced Asset Management
A Limited Liability Company
Advanced Asset Management
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Advanced Asset Management Property Acquisition
Business Plan
Table of Contents
1. INTRODUCTION
2. SUMMARY
3. MISSION, STRATEGIES & OBECTIVES
4. PRESENT STATUS
5. PRODUCT / SERVICE DESCRIPTION
6. PROILE OF TARKET MARKETS
7. MARKETING STRATEGIES & SALES PLANS
8. OPERATIONAL PLANS
9. MANAGEMENT & ADMNISTRATION
10.FINANCIAL PROJECTIONS
11.FUNDING REQUIREMENTS & USE OF PROCEEDS
12.IMPLEMENTATION
13.CONCLUSION
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1. INTRODUCTION
Advanced Asset Management, a Pennsylvania Limited Liability Company based in Lebanon,
Pennsylvania composed this business plan for the purposes of outlining this business enterprise
for the benefit of potential investors in order to raise capital to fund continuing operations and
to take advantage of identified investment opportunities for the Company.
Professional advisors assisting in the formation and continuing operations of Advanced Asset
Management are listed as follows:
Auditors – To Be Determined
Legal Counsel – George Christianson Esq.
Tax Consultation – To Be Determined
Investor Relations – Advanced Asset Management
Others may be added for consultation as the business requirements evolve.
For further detailed information, contact:
Ray Bishop
155 Club Terrace
Lebanon, PA 17042
(717)-270-6018
This document is confidential and has been made available to the individual to whom it is addressed
strictly on the understanding that its contents will not be disclosed or discussed with any third parties
except for the individual’s own professional advisors.
Investment in new and small businesses carries high risks as well as the possibility of high rewards. It is
highly speculative and potential investors should be aware that no established market exists for the
trading of shares in private companies. Prospective investors are advised to verify all material facts and to
take advice from professional financial advisors before entering into any commitments.
This plan is strictly for information only and does not constitute a prospectus or an invitation to subscribe
for shares. Projections in the plan have been compiled by the promoters for illustrative purposes and do
not constitute profit forecasts. The eventual outcome may be more or less favorable than that portrayed.
2. SUMMARY
Advanced Asset Management, a Pennsylvania corporation with headquarters in Lebanon,
Pennsylvania and is a Real Estate Management and Investment Company incorporated to
maintain, rehabilitate, acquire and utilize properties throughout the United States that will best
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enhance overall shareholder value in the company. Advanced Asset Management, started in
January of 2010 has been successfully developing business relationships with national financial
institutions, national asset management companies as well as local foreclosure representatives
to secure, maintain, rehabilitate and assist in the disposition of foreclosed and distressed
properties throughout central Pennsylvania including Lebanon, Dauphin, Berks, Lancaster, York,
Schuylkill, Northumberland, Montour, Luzerne, and Carbon Counties.
Advanced Asset Management intends to take advantage of current real estate market
opportunities identified by the Company through current business dealings as well as the
federal, state and local tax climates for its shareholders by utilizing ongoing operations,
acquiring, developing and holding a portfolio of net assets that will ultimately provide a
continual stream of residual, on-going profits that can be returned to individual shareholders in
the form of increasing net asset values of company shares as well as an on-going stream of the
highest practical dividends, while retaining sufficient funds necessary to maintain the company’s
competitive advantages in investment opportunities as they present themselves.
Real estate investments in the form of raw land will be made when the ability to harvest
renewable resources, lease farmland, take advantage of existing government programs, sell
mineral and energy rights, develop residential or commercial properties for sale or as rental
properties, partition holdings for sale or other similar strategies that will enable Advanced Asset
Management to take advantage of attractive market opportunities. It is expected that funds
generated from the execution of many of these strategies will enable Advanced Asset
Management to significantly reduce assumed debt quickly while the execution of other
continuing strategies such as harvesting of timber or farm products will enable Advanced Asset
Management to further minimize and eventually eliminate any remaining debt. Ultimately, it is
expected these assets will position the company to receive significant long-term residual income
that will enhance shareholder value by increasing net asset holdings while improving dividend
distributions.
Advanced Asset Management will additionally acquire assets that allow the company to take
advantage of opportunities in existing developed residential and commercial properties that
have significantly depressed values due to current market conditions but present potential
future turnover opportunities at increased prices when market conditions rebound. It is
anticipated that these properties could be leased in the interim periods to cover maintenance,
taxes and other operating costs. It is also possible that many of these properties could remain in
the asset portfolio of Advanced Asset Management when it makes sound business sense.
Ultimately, it is expected the majority of Advanced Asset Management’s portfolio of assets will
contain a well balanced mix of properties that contain a significant supply of renewable natural
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resources that can be harvested, properties that offer intrinsic values from the sale of mineral or
energy rights as well as some limited holdings in developed residential and commercial rental
properties, such as apartments, strip malls, storage units, office complexes and other yet to be
identified commercial properties when it makes good business sense. The portfolio will also
contain properties that Advanced Asset Management will develop or enter into joint venture
opportunities resulting in additions to the net assets or profitable liquidation for developed
properties. Further, the company will expand its interests and activity in commercial enterprises
that are on the periphery of the company’s primary business focus on a limited scale and only
when it makes prudent business sense.
The primary activity of the management of Advanced Asset Management will be to seek
investment opportunities that can be added to and contribute toward the primary goals of the
company, which are to create a portfolio of net asset holdings that will increase overall
shareholder value and provide realizable residual income streams for the company that in turn
can be distributed to shareholders in the form of on-going dividends.
While the primary long-term objectives of the management team of Advanced Asset
Management is to provide significant residual income streams to shareholders in the
form of dividends, the Company additionally seeks to enhance shareholder value
through the appreciation of the net asset value of the company and also seeks to build
an enterprise that will sustain itself well into the future. Management believes these
goals are not mutually exclusive, but does provide the caveat that Advanced Asset
Management will likely yield little or no dividends from inception through the early
years of the company’s life cycle until management believes that dividend distribution
will pose little or no risk to the sustainability of the company.
3. MISSION, STRATEGIES & OBJECTIVES
3.1 Mission Statement
Advanced Asset Management will acquire properties and build a portfolio that will enable the company
to provide an ongoing continuing stream of income in the form of dividends and build equity value for
long term shareholders of the company while exercising all business dealings, whether internally or
externally, to the highest possible ethical standards. Further, management and staff of the Company
will perform their obligations in a fiduciary and responsible manner with an entrepreneurial spirit for all
shareholders of the company, while maintaining an atmosphere of levity and a strong sense of family for
all employees.
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3.2 Values
Management and staff of Advanced Asset Management will strive to maintain the following seven
values while performing the day-to-day responsibilities expected of them.
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All property acquisitions, developments and dispositions will be handled to the most beneficial
long-term interests of all shareholders of the Company.
All clients, customers and employees of the Company will be treated with respect and dignity at all
times.
All business enacted by the Company will be performed to the highest possible fair and ethical
standards
The development or utilization of any of the Company’s properties will be performed in a manner
that will be as environmentally friendly as possible.
Advanced Asset Management will take an active role in enhancing the local communities in which
it does business and will encourage all employees to participate.
All employees of the Company will be compensated fairly for their relative positions and in a
manner that will allow them to provide adequately for their families.
The working environment of Advanced Asset Management will be an atmosphere of levity and
family to make the company an enjoyable place for employees to work and clients to do business.
3.3 Strategies
3.3.1 Acquisitions
Advanced Asset Management will acquire properties that will be beneficial to the long-term
strategic objectives of the company at costs that management believes is at or below current fair
market values or that have significant marketable potential. Acquisitions could be enacted utilizing
any of the following or other not yet identified techniques to take advantage of market
opportunities as they present themselves.
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Utilize a combination of shares of the company as currency or allow the original property
owner to hold the mortgage for the company (as opposed to a financial institution) in addition
to a portion of cash held in the accounts of Advanced Asset Management to purchase
properties when the opportunity proves beneficial to the company. This strategy will also
provide several attractive benefits to a selling client as well as to the company
.1 In addition to a significant lump sum cash payout, these clients will hold shares in Advanced
Asset Management that will provide long-term ongoing income and potentially reduce their
immediate and long-term tax obligations. This strategy will give the Company a local
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shareholder and potential advisor with a vested interest in the successful utilization and
development of his former property.
.2 Acquire properties that possess a significant mineral or energy access rights that can be sold
or are attractive to government programs that can be exercised, thereby offsetting large
portions of or perhaps the entire purchase price of the property.
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Acquire properties that have significant ongoing harvest potential, through timbering or
farming. The Company would use proceeds generated from the harvests to reduce debt,
provide distributions to shareholders, capitalize further acquisitions or fund ongoing
operations.
Acquire developed commercial properties that offer significant opportunities for ongoing rental
income or turnover when local real estate markets rebound.
Acquire residential properties, either distressed or foreclosed, that offer significant equity and
provide opportunities for ongoing rental income.
Acquire properties that have significant development potential, either by partitioning for sale,
development for commercial or residential sale or to create rental holdings for the company.
Opportunities divided and sold in partitions provide potential income to the company that
exceeds the potential income to the company if the properties were to be disposed en masse.
In other words, the sum of the parts would be worth more than the whole.
Leverage the equity of existing holdings to acquire properties that have potential opportunities
that fit with the long-term strategy of the company.
3.3.2 Holdings, Development & Dispositions
Advanced Asset Management will acquire, hold, develop or dispose properties that will be beneficial
to the long-term strategic objectives of the company at operational costs that management believe
either possesses long-term growth potential or will provide significant continuing income streams to
the company, or perhaps even both. Each or any combination of the following strategies, as well as
those not yet identified could be used as opportunities become available.
It is expected the holdings of the company will consist of an appropriate balanced combination of
land that can be developed and sold for market prices that exceed acquisition costs; land that can be
harvested of natural renewable resources and finally, rental or commercial properties that will yield
significant on-going revenue streams to the company.
It is also expected that the acquisition of distressed and foreclosed residential properties will
provide the Company with equity, ongoing income in the form of rental payments and will increase
the net asset value of the company overtime by holding these properties until the current economic
climate improves.
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Acquire properties that have significant ongoing harvest and on-going income generation
potential.
.1 Timbering rights would be sold to appropriate customers and each harvested area
would then be replanted with trees that could be harvested at some future date.
.2 Advanced Asset Management could further harvest what remains from timbering
operations by creating and selling mulch and firewood from the perspective
harvesting bark and timber remnants. The mulch and firewood would be transported
to appropriate locations for sale to residential and commercial clients.
.3 Land that could be farmed would be leased to local farmers for their utility until it
became beneficial to the Company for other disposition.
Acquire properties that have significant development potential.
.1 Properties that could be developed for commercial, governmental or residential sale.
.2 The Company will enter into joint ventures with local developers or commercial
enterprises to develop and sell the company’s properties when it proves
advantageous to do so to the company.
.3 Advanced Asset management will develop properties into commercial or residential
units when the opportunity presents itself, therefore providing ongoing rental income
to the company. These could include any combination of the following, or other
opportunities not yet identified.
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Apartment units or complexes
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Storage units
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Commercial office space
.4 Advanced Asset Management will partition holdings and sell them as commercial or
residential building lots when opportunities arise.
Take advantage of other strategic business extensions that have a close association with the
overall business strategy of Advanced Asset Management but are not directly involved with
the asset holding strategy defined in this business plan. Each enterprise will be evaluated on
its own merits to determine if it should be a subsidiary of Advanced Asset Management or an
entirely separate company sponsored by and having a close relationship to Advanced Asset
Management. A few examples of such opportunities for the business extensions include:
.1 Spin-offs from the developments created under the main business enterprise
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Real estate brokerage
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Rental lease Management Company
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Land Transfer Company
Spin-offs from the timber harvests created under the main business enterprise
.1 Mulch and firewood retail outlets
Development of 55+ adult retirement communities where Advanced Asset Management will
hold the land rights, the homeowner will own the home but pay the company a “lot
fee”.
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3.4 Objectives
3.4.1 Income Generation
The primary long-term strategic objective of Advanced Asset Management will be to create and hold
an inventory of net assets in the form of properties that generate continuing streams of income to
the company and increase shareholder value. The management of the company will use the initial
intrinsic marketable value of the properties to minimize the debt of the holdings at the time of
acquisition, and then develop the potential of the property to create and maintain the income
stream to the company. Further, the income streams generated will be divided for use into three
major segments:
 Retained earnings that can be used to fund further acquisitions and developments
 Fund the continuing operations of the company, including the attraction and retention of
employees that prove vital to the organization.
 Distribution to shareholders in the form of a combination of on-going dividends or special
annually announced dividend distributions when deemed appropriate.
The current expectation is that early in the life of the company, all generated income will be used to
fund acquisitions and the continuing operations of the company. In time, management expects the
segmentation to include distributions to shareholders in the form of dividends. As the holdings of
net assets in the Company expands, it is further expected the retained earnings requirement will
level, allowing the dividend distribution to shareholders to grow exponentially, eventually attaining
double digit percentages in relation to the invested dollar.
4. PRESENT STATUS
4.1. Background
There is currently no knowledge of any broad based company or enterprise that is in place to take
advantage of and utilize similar strategies as those outlined in this business plan for Advanced Asset
Management. The landscape is dotted with small individual property owners that do take
advantage of a small number of these strategies when they present themselves as being relevant to
their existing holdings. In many instances, these individual property owners have several separate
holdings in their portfolios, but they are typically local and somewhat isolated.
Additionally, there are many other REIT companies. Typically these REIT companies only execute
one type of property investment. It is believed that using a combination of the strategies set forth
in this proposal will make Advanced Asset Management’s Land Enterprise a truly unique Real Estate
Investment Company.
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4.2 Progress To Date
In January 2010, Advanced Asset Management was established as a Mortgage Field Services
company, specializing in the rehabilitation and maintenance of abandoned and foreclosed
properties for financial institutions, primarily located in its home county of Lebanon, Pennsylvania.
In short order the number of services offered to its clients encompassed every aspect of securing,
maintaining, inspecting and contracting. The range of clients have also exploded over a short
amount of time, from initially serving local REO agents for institutions such as Wells Fargo and
Sovereign Bank to working with national clients such as Cityside Management Corp, White Van RES,
Five Brothers Mortgage Field Services and Field Asset Services whose clientele includes VA, FHA,
HUD, City Bank, JP Morgan Chase, Bank of America, US Bancorp and numerous other national
banking institutions. As of January 2013 Advanced Asset Management has grown into one of the
regions fastest growing mortgage field services companies now servicing not only Lebanon county,
but also Dauphin, Berks, Lancaster, Schuylkill, Montour, Northumberland, Luzerne and Carbon
counties.
Management believes that utilizing good-working relationships with Asset Management Companies
as well as local REO representatives in conjunction with its intricate knowledge of construction and
rehabilitation lends itself incredibly well at pinpointing optimal investment opportunities before the
general public becomes aware. Management also believes that its knowledge of the current
economic climate, especially within the housing sector, lends itself well to the acquisition and
disposition of assets in a well-timed manner.
Management is actively seeking out potential properties that fit the characteristic profile of the
company’s business strategy and has identified several potential properties in Pennsylvania, West
Virginia, Missouri, Tennessee, Georgia, Kentucky and North Carolina that fit requisite requirements.
These efforts have been to confirm the viability of the proposed business plan. In addition to
seeking out and identifying prospective properties, management is actively researching and
identifying existing and proposed government programs and how they may impact the acquisition
strategy of the Company. Lastly, the management is also researching utility expansion strategies to
determine the geographical likelihood these tactical moves may have on obtaining access privileges.
Additionally, management of the Company has been investigating development opportunities in the
locality of its home offices including:
 One or two high-rise apartment home structures that would be built on a site overlooking
the Lebanon Valley Area. The structures are anticipated to be up to fifteen stories, with
each floor in each building housing two, fifteen hundred to two thousand square foot
apartment homes. The top floors of each building are expected to house penthouse type
apartments. All of the apartment homes would be sold to prospective owners who would
then pay Advanced Asset Management a maintenance fee for snow removal, building
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maintenance and lawn care. The ground floors would possibly house parking garages for
the owners, with exterior parking for visitors. The buildings would have high security with
key pass entry. The buildings might also include amenities such as a convenience store, a
swimming pool and recreational facilities and a fitness center. Quite possibly, these
facilities could be made available to the public for a fee.
Two small groups of townhouses that would be built on the outskirts of the city of Lebanon,
Pennsylvania in two separate locations. These would be designed for construction and sale
at a profit to the company. The target market would be single individuals or newlyweds
who are purchasing their first home or young families looking to upgrade from a starter
home. The price range is expected to be in the neighborhood of $135,000 to $175,000.
Several distressed and foreclosed properties have been located within the area of service of
Advanced Asset Management at a substantial discount to fair market value. These
distressed and foreclosed properties have met a number of requisite requirements such as
desirability of the surrounding area, home qualities, rehabilitation work required, net asset
value once the property has been rehabilitated as well as the health of the local economy.
These properties, once acquired and rehabilitated will have an average of 30-50% equity.
Management feels that an equity target after rehabilitation and acquisition expenses of
between 30-50% is obtainable given the Company’s experience in this industry.
A storage unit complex that would be built on a busy highway adjoining Lebanon with a
neighboring city. The location of the complex is adjacent to a four hundred acre parcel that
is currently under residential development that will include several hundred units. The
immediate area has undergone significant residential construction in recent years and so it
is anticipated that sixty to eighty storage units would not only be easy to rent initially, but
would be relatively easy to keep rented for many years.
5. PRODUCT / SERVICES DESCRIPTION
Initially and depending on the acquired land holdings, Advanced Asset Management will offer a
combination of harvestable hardwoods for commercial applications such as furniture and housing
trim as well as evergreens that would be used for the construction and heating industry. Although
the recent real estate housing boom is taking a pause, the anticipated growth in the overall
population should restore this growth pattern to its most recent past, thus increasing demand and
associated prices for the timber and resources that Advanced Asset Management will be making
available.
Where practical, the company will reforest harvested lands with appropriate saplings. Hardwoods
can take well over twenty years to restore and so will make those opportunities much longer to
realize. The upside however, is that hardwoods command significantly higher prices, in some cases
by a factor of as much as ten times, and as a result, can offset the lost opportunity cost associated
with the length of harvest realization time. Softer woods, such as southern pine for the construction
industry can grow much faster with harvests occurring every ten to fifteen years.
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In addition to the harvesting of timber for the housing industry, Advanced Asset Management will
take advantage of the waste generated by the timber harvest operations by gathering all the
sizeable tree cuttings and further sizing them into marketable firewood. The bark and smaller
pieces will be ground into mulch. Both products will be transported to larger population centers
and sold to commercial clients or delivered to retail outlets that are owned and operated by
Advanced Asset Management.
As the company expands, it will add other residual income generating properties to its portfolio of
net asset holdings. These will likely include but not be limited to an assortment of rental properties
such as residential and commercial rental units such as apartments, offices and storage units. As
noted previously, when the opportunity is beneficial to the company, properties will be developed
or disposed. Details of the execution of these strategies will be available on a case-by-case basis
when appropriate.
One recently discovered opportunity for long-term receivables as well as ongoing rental income will
be to acquire distressed or foreclosed properties that meet the Company’s requirements,
rehabilitate them to a habitable and desirable status and become the mortgage holder to individuals
who meet reasonable requirements. On a case-by-case basis, these homes will be inhabited by
potential purchases that are otherwise unable to obtain a mortgage through conventional means.
In a set number of years after origination of the mortgage, the prospective purchaser will have the
home appraised and will seek a conventional mortgage based on the current fair market value of the
home. This conventional mortgage will enable the homeowner to purchase the home and balloon
the Company out of its asset at a significant profit. Under this scenario, the homeowner will care
and treat the home as if it was theirs, maintaining and improving as they see fit.
6. PROFILE OF TARGET MARKETS
6.1. Market analysis
The United States has seen significant population growth in the last one hundred years, having
registered 300 million citizens in October of 2006, with the last 100 million coming since 1967. The rate
is expected to increase considerably and the next 100 million is expected to be added sometime around
2040, which is less than thirty years away. This population growth will create enormous pressure on
current infrastructure needs and also create intensified demand for land, energy, housing and services.
More than half of the current population resides within fifty miles of the Atlantic, Pacific, Gulf and Great
Lakes coastlines on just a fifth of the country’s land mass and over the last twenty years, and incredible
1/7 acres of land has been developed for every person added to the population. If that rate continues,
over the next twenty years, 170 million acres of land will be developed in the United States. These
expected increases in population coupled with the anticipated increases in energy costs will necessitate
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an introspective look at how and why land is developed and perhaps create unique new and exciting
development opportunities in small town urban America.
Despite the crippling economic decline in the housing industry since 2008, the homebuilding industry
has seen unprecedented growth over the last decade in almost every area of the country, some more
than others. Due to the anticipated population expansions, the homebuilding economic woes are
expected to be short lived since interest rates have reduced to attractive levels and also since the overall
population and associated housing and commercial infrastructure needs are expected to continue to
increase. It is anticipated that over 70 million additional housing units will be needed over the next
three decades. The current brief respite of economic growth within the housing industry provides a
remarkable well-timed opportunity for Advanced Asset management to launch the execution of its
acquisition strategy. The current short-term slowing demand places Advanced Asset Management in a
position to use its competitive advantages to better negotiate more favorable acquisition pricing. As the
housing industry resumes its growth patterns going forward, the company will then be well positioned
to provide the resources to fuel a significant and profitable portion of that growth.
Additionally, as the need for housing and commercial infrastructure increases, Advanced Asset
Management will take advantage of this growth opportunity by developing both residential rental units
to retain in the portfolio of the company as well as other individual units that will be developed for sale
to residential consumers. The company will attempt to acquire lands that are just beyond the current
development reaches where it will have a more favorable pricing power and then strategically use the
resources of the property until the urban sprawl reaches it, thus naturally increasing its market value.
This will allow the company to further leverage its competitive advantages by possibly developing
commercial properties for lease or sale as well.
Decades long political turmoil in the Middle East coupled with the recent and anticipated future
escalations in the price of oil due to increasing worldwide demand, most notably from southeast Asia,
and every decreasing worldwide supplies should cause a renewed interest in the energy resources
within the borders of the United States that will grow exponentially, as we are currently seeing in the
fracking and natural gas boom. Favorable timing of the strategies herein will allow the Company to use
its competitive advantages to not oily acquire land, but to also take advantage of the energy thirst of the
country through the sale of exploration and right-of-way access privileges that will be required to
support that thirst. The Company will acquire lands that can fulfill the current exploration or access
needs of energy or utility companies or that are strategically located geographically so as to fulfill
anticipated future needs.
Management of Advanced Asset Management expects that the increased regulations on financial
institutions as well as the increased scrutiny an individual meets while attempting to gain a mortgage
approval will naturally lead to individuals searching for privately held mortgages as well as rental
properties. This combination will allow Advanced Asset Management to command a premium interest
rate on privately held mortgages for its own properties. Advanced Asset Management will not finance
mortgages for homes that the Company does not already possess.
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Lastly, Advanced Asset Management fully expects to utilize otherwise idle lands in short-term situations
by leasing them to local farming cooperatives and then negotiate a portion of the income that is
generated from that effort for the benefit of the Company. Going forward, the increase in population
will naturally necessitate an accompanying increase in the need for farm products. Additionally
increased prices in oil should also drive increased demand for farm products that have the economic
potential to offset the rising cost of oil, such as corn that is used to manufacture ethanol. While no one
can foretell the future direction of the energy policy, management of Advanced Asset Management fully
anticipates that demand for these products will continue to increase, perhaps exponentially. Therefore,
management of Advanced Asset Management fully expects that leasing idle lands in support of farming
efforts will always be an available and profitable option.
6.2 Customer Base
Advanced Asset Management’s expected customer base will typically be dynamic and constantly
changing depending on the operations being undertaken by the Company. Customers are anticipated to
include but not be limited to the following:
 Harvestable Timber
 Local Sawmills
 Mulch and Firewood
 Local commercial retail outlets for residential and commercial applications.
 Direct sales to residential and commercial property owners
 Government Programs
 Federal government agencies
 State government agencies
 Local government agencies
 Mineral and Energy Rights
 Utility companies requiring electrical power or natural gas access or rights of way
privileges
 Energy companies, such as coal, oil or natural gas that are seeking exploration or
mineral rights
 Energy companies seeking renewable energy sources
 Companies that are engaged in the mining of semi-precious or precious metals, such
as copper or silver that are seeking exploration or mineral rights
 Farming Leasing Rights
 Local farmers, partnerships or cooperatives seeking additional land to utilize for
farming activities. Their products would then be sold to clients within the local
communities.]
 Development Property
 Families or individuals seeking residential rental housing
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Individuals seeking private mortgages
Individuals looking for storage space
Small business owners seeking commercial office, manufacturing or storage space.
Developers seeking land for residential or commercial development.
7. MARKETING STRATEGIES & SALES PLANS
Initially, the Company will execute most of the sales and marketing activities required with the
assistance of appropriate consultants when required. This will be the most efficient use of the
Company’s available and necessary resources until the volume and scope of activities necessitate the
addition of key individuals to assist in more dedicated and specific roles. Management of Advanced
Asset Management does not feel that in the early stages of the company’s growth it is in the best
interest of the company to be directly involved in marketing and retailing its products to the final
consumer. Towards that end, in years one, two and perhaps even three, management will instead seek
to become a supplier of its products for other retailers and to utilize specialized resources that it can
hire on a contractual and as-needed basis.
7.1. Government Programs
Taking advantage of available Government Programs is anticipated to primarily be a research
activity and then a continuation through completion of submittal of all the necessary associated
paperwork and applications. In many instances, it is expected that relationships with local, state
and federal public offices and representatives will likely have to occur prior to, or in parallel to any
property acquisition activities of Advanced Asset Management. While not a traditional sales and
marketing activity, the effort utilized while developing these relationships to the company’s
competitive advantage will require many of the skills traditionally required of seasoned sales and
marketing professionals. It is anticipated that application for continuation of Government programs
will have to be submitted on a fairly regular basis, perhaps as frequently as annually. Therefore, the
importance of the development and continuation of these relationships cannot be minimized.
7.2. Sale of Mineral and Energy Rights
Similar to taking advantage of available government programs, the sale of mineral and energy rights
will also require significant research, and like the government programs, will likely have to occur
prior to, or in parallel to any property acquisition activities by the Company. Additionally, while
these contracts will be to non-governmental enterprises, it is anticipated that similar relationships
with local, state and federal public officials will have to be nurtured because of the potential
environmental impact to the local regions. It is expected that in many cases, much of the
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governmental relationships will be developed not only be Advanced Asset Management, but also by
contracting company, depending on the nature of the privileges involved.
In contrast to government programs though, it is expected Advanced Asset Management will
negotiate long-term contracts for the sale of mineral rights and energy access rights-of-way
primarily to publicly traded companies, but which may include some private companies as well. In
addition, it is expected that in many instances, these sales will be a permanent right to the
contracting company and is expected to last into perpetuity as long as certain conditions are met.
These contracts will then be included in the deeds of the involved properties so that any future
disposition by Advanced Asset Management would require the new owners to honor and likely also
receive the benefits of that contract.
7.3.
Leasing of Farming Rights
Advanced Asset Management will seek out and negotiate long-term contacts with farmers and
farming cooperatives that are local to properties that are held in the portfolio of the company.
Although the company will seek out and negotiate long-term contracts for these categories, the
company fully expects to retain the rights of renewal of the contracts on a year over year basis. This
will permit Advanced Asset Management to retain the flexibility to take advantage of development
or disposition opportunities as they emerge. Again, the leasing of farming rights is not expected to
require a traditional marketing and sales strategy, but rather, a development of relationships with
local farmers and farm cooperatives.
7.4. Timbering and Related Activities
Advanced Asset Management will seek out and negotiate long-term timbering contracts with
sawmills that are local to properties that are held in the portfolio of the Company. While these
contracts will be long-term relationships, none will be written into the property’s deed as “in
perpetuity”. Also, while anticipated to be long-term relationships, it is still expected Advanced Asset
Management will retain the year over year renewal rights to these contracts. This will permit the
Company to have the nimble flexibility to take advantage of development and disposition
opportunities that may arise.
Negotiations of these contracts are not expected to require a traditional marketing strategy. Sales
of the timbering rights, however, will likely require the development of relationships with not only
the management of the contracted sawmills but also local, state and federal public government
officials to ensure the Company’s adherence to local zoning laws and state and federal
environmental impact legislation.
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As a supplier of mulch and firewood products produced by Advanced Asset Management from the
residuals of the timbering harvests, Advanced Asset Management will also seek out and develop
long-term contracts with local companies who provide landscaping supplies and services. While
long-term, the Company will again retain year over year renewal rights to allow Advanced Asset
Management to take advantage of development and disposition opportunities that present
themselves. Going forward, as the market opportunities for Advanced Asset Management evolves
for these products; the company may develop retail outlets under the Company name to take
advantage of the natural product lines that will be available to them.
7.4.1. Commercial and Residential Rental and Disposition Properties
The initial primary business focus of Advanced Asset Management will be acquisition, rehabilitation
and sale or rental of foreclosed and distressed properties. Advanced Asset Management will handle
management of any of the commercial and residential rental activities. Additionally, the Company
will provide its own rehabilitation work. It is expected that any of these rental activities in years
one, two or three will be relatively small in scale. However, as the size and net asset values of
properties increase so will the size of rental operations performed by the Company.
A primary factor in the success of this business venture, and what sets Advanced Asset Management
apart in particular is to acquire properties which the Company already services. Currently,
Advanced Asset Management is able to enter into properties which have been abandoned by
property owners and assess, secure and repair these properties prior to finalized foreclosure
proceedings. This process will enable Advanced Asset Management to become extremely familiar
with rehabilitation needs and will provide accurate costs. Individual investors seeking to purchase
foreclosed and distressed properties have no such access and will essentially be taking a “shot in the
dark” in regards to repair costs.
7.4.2. Subsidiary Businesses
The structure, sales and marketing strategies of any significant subsidiary business that Advanced
Asset Management becomes engaged in will be defined as those business opportunities become
available. Size and scope of those operations will likely determine how those businesses are
managed. Initially, it is likely they will fall under the management of the Company’s management
team in that is in place at that time. As the size and scope of those businesses evolve, it is
anticipated that management of Advanced Asset Management will create distinct subsidiary
companies, each with their own management team that will report directly to the primary officers
of the Company. Without having a specific business enterprise in mind, it is impossible to structure
or even provide a rough outline of a marketing strategy or sales plan.
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7.7 Commercial Business Enterprises
As in subsidiary businesses, the structure, sales and marketing strategies of any significant satellite
business that Advanced Asset Management becomes engaged in will be defined as those business
opportunities become available. Since the perceived risks associated with these enterprises are
higher, it is expected that the majority of these businesses will be wholly owned and managed by
others outside the sphere of Advanced Asset Management. The Company’s role will be similar as
that of a silent partner, providing financial support and managerial advance as needed, while
maintaining a legally distinct and separate relationship.
In those rare instances where Advanced Asset Management takes a more direct and influential role
in commercial business enterprises, the business will be organized into separate distinct and
appropriate subsidiaries with their own management teams that will report directly to the primary
officers of Advanced Asset Management. Again, without having a specific business enterprise in
mind, it is impossible to structure or even provide a rough outline of a marketing strategy or sales
plan for these commercial business enterprises.
7.8 Development & Disposition
It is not anticipated that Advanced Asset Management will engage in any major development or
disposition activities in the first few years. However, if a compelling opportunity does present itself,
any development or disposition of Company property that is undertaken by management may
utilize resources outside the company. Outside resources could include but not be limited to
building contractors, engineering firms and real estate brokerages as the need determines. As in
previous sections, without having a specific development or disposition opportunity in mind, it is
impossible to structure or even provide a rough outline of a marketing strategy or sales plan for
these commercial business enterprises.
8.
OPERATIONAL PLANS
8.1. Mineral and Energy Rights
Advanced Asset Management intends to evaluate and acquire land or properties at a value that is less
than current or projected market values that present opportunities for harvesting, development or sale.
Part of the strategic value of any acquired property will include the availability of mineral and energy
rights that could be sold to others. It is the intent of management that the funds raised from the sale of
these rights will be used to offset some or perhaps all of the purchase costs of the property. Among
other rights, these rights could include:
 Natural gas pipelines or other utility access
 Oil and / or natural gas drilling
 Coal or other resource mining activities
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With the execution of the sale of mineral and energy rights, it is expected that the Company will retain
ownership of the properties along with the farming and associated on-going harvesting rights, which in
turn will provide long-term income to the Company. In some, less common circumstances, the
Company may also retain and make use of development rights of portions or all of these same
properties.
Management of the Company anticipates that the population growth in the United States coupled with
expected global economic and population growth will not only create significant long-term increases in
the strategic value of land for housing and provide business development opportunities, but also should
necessitate an increased demand for new or revived energy resources. In addition to the profit
potential derived from the development, extraction and transport of new energy resources, it is
expected that increased demand will also make existing energy sources that were previously thought to
be unprofitable much more attractive to marketers, due to the associated higher prices generated.
8.2 Government Programs
Despite the economic strength of the United States, the country has always adopted a policy supporting
agriculture rather than industry, particularly agricultural farming activities. Part of the value of any
property acquired by Advanced Asset Management could also include the availability of Federal or State
programs that place strategic value for these governments that are in the best interests of the overall
population. As these programs are uncovered or enacted, Advanced Asset Management will research
and acquire properties that can take advantage of these opportunities allowing the company to acquire
properties, again, at costs significantly lower than local market values. The intent of the company will
be to utilize these properties to generate cash flow for the Company, while taking advantage of any
appropriate and available government programs to minimize or eliminate assumed debt incurred during
the acquisition.
An example of a typical government program that could potentially be taken advantage of by Advanced
Asset Management would be when the government pays an annual stipend to a property owner so that
he does not grow a particular crop on his property. This allows natural market forces to maintain stable
and profitable market price levels for the remaining farmers that are unable or unwilling to take
advantage of these programs. The intent of the government is to reserve the use of that property for
development by providing an environment of profitability for all participants. The stipend would be
available in the near-term to discourage the farming of that crop because to do so would upset the
delicate existing market balance, due to a lack in current demand, which in turn would cause existing
property owners to undergo severe economic hardship. Without the government program, the longterm result could be devastating. When demand eventually increases, there potentially would be
insufficient farm opportunities remaining.
Federal and state governments typically sue this and numerous other similar strategies to stabilize
profitable market prices of farm products. For instance, government has maintained low milk prices
through price restrictions for many years and during this time has subsequently provided economic
assistance to dairy farmers to ensure continued farming activities. Additionally, the federal government
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restricts the importation of cane sugar in order to maintain stable and profitable price levels for sugar
beet farmers in the western United States, allowing them to remain in business for future demands.
8.3 Timbering and Related Activities
One of the primary activities of the Company will be to acquire land or properties at a value that is less
than current market values that present opportunities for harvesting of timber for commercial and
residential use. The Company will increase the cash flow of the Company through the sale of timbering
rights of these properties utilizing the proceeds to initially minimize or eliminate debt and then to
further provide long-term income to shareholders of the Company. As these lands are harvested, the
Company will re-plant seedlings to replenish future supplies.
As a future business extension, Advanced Asset Management can further take advantage of the profit
potential from residuals left behind by the contracted timbering companies through the creation of a
subsidiary that will manufacture, transport and distribute firewood and bark mulch to more densely
populated residential and commercial customers. Again, with the anticipated growth in population and
increase in energy prices, both of these byproducts are expected to experience significant growth
opportunities for the Company. Where it makes good business sense, the Company will also create
company-owned point of sale business for these operations. The Company will then likely add other
similar products, such as lawn and garden supplies, landscaping and lawn maintenance services, etc.
8.4 Leasing of Farming Rights
Where it makes good business sense, the Company will lease portions of its holdings to local farming
enterprises on an annual basis. This strategy will be utilized for net holdings of the Company when the
targeted strategies of the Company are unavailable. For instance, these properties could be:



Adjacent portions of timbering tracts that is not practical to grow into timber
Properties where mineral and energy rights have been sold and further development or use is being
evaluated or delayed to the future
Holdings that the Company believes have long-term intrinsic development potential, but are not
practical to develop near-team.
8.5 Rental Properties
Part of the Company’s planned net holdings will include residential and commercial rental properties
that have either been acquired from a pool of existing available properties or have been developed
exclusively by the Company or through a joint venture with local developers. It is expected that all the
rental properties within the Company’s net holdings will have minimal risk, yet offer significant yield and
appreciation opportunities to the Company. In addition to other rental opportunities not yet identified,
it is expected that these properties could include any combination of the following.
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




Residential apartment buildings or complexes
Vacation rental properties
Commercial office buildings or complexes
Storage unit complexes
Government subsidized housing units
8.6 Subsidiary Businesses
As the size and scope of net holdings in rental, residential and commercial properties expands or as
development opportunities evolve, Advanced Asset Management will further take advantage of the
profit potential of this important segment of property holdings through the creation of subsidiaries or by
developing business relationships with separate, company sponsored enterprises to when it makes good
business sense to do so. Although not an exclusive list, these business extensions could include any, all
or none of the following:




Real estate brokerage and rental management services
Mortgage and financial services
Construction or development building contractor
Landscaping design and architectural engineering services
8.7 Commercial Properties & Businesses
Looking towards the future and when it makes extremely good business sense, the Company will create
individual subsidiaries or enter into relationships that can take advantage of unique business
opportunities in carefully selected markets. These particular businesses could have somewhat increased
levels of risk, but provide significant income opportunities for the Company. To minimize risk to the
Company in these circumstances, Advanced Asset Management would likely own the properties and
lease them to select clientele but in some cases could be a primary sponsor or stakeholder. These
business segments could include but not be limited to:




Restaurants
Retail outlets
Urban re-development of commercial properties in small to mid-size towns and cities
Renewable energy facilities
8.8 Development & Disposition
An important portion of Advanced Asset Management’s overall business strategy is to take advantage of
market opportunities to develop or dispose of significant parcels of the Company’s holdings. With the
anticipated future growth in America’s population, the need for individual residential rental housing,
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retail outlets and strategically placed commercial properties for goods and services to support the
growing population is expected to experience considerable, though, gradual growth.
To take advantage of these important opportunities, a large part of Advanced Asset Management’s
strategy is to acquire property that will not only provide the potential for cash flow and significant ongoing income from the strategies outlined previously, but to acquire property that is also strategically
positioned to take advantage of these future development and disposition opportunities. Whichever
makes the most strategic business sense, the Company will either develop these properties utilizing its
own architectural engineering and construction subsidiaries, enter into relationships with existing local
contractors or partition segments or all of the property into building lots that would be sold.
9. MANAGEMENT & ADMINISTRATION
Currently, the management of the Company consists of Mr. Ray Bishop and Mr. Jason Bishop. The
current management will conduct all business of the Company utilizing the services of appropriate
consultants where necessary. It is not anticipated that additional employees will be added to the
company until the second year of initiation of Advanced Asset Management’s Land Enterprise. At that
time, an administrative assistant and other key individuals will likely be added to handle paperwork and
help direct business activities.
It is anticipated that the following organizational outline of senior management will be in place with
several if not all positions filled by the end of year three. Some positions herein will remain as
consultant positions until which time the management of the Company determines that it is more
beneficial to the Company to fill these positions directly. Also by the end of year four, management of
the Company expects to move its residency to a Company owned office in the Lebanon, Pennsylvania
area.
 CEO
 President & COO
 CFO
 VP Regulatory
 Legal Counsel
 Investor Relations
 Director of Acquisitions & Land Use
 Director of Administration
 Documentation Director
 Engineering & Architectural
 HR Director
 Environmental
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Ray Bishop
Mr. Ray Bishop’s background and experience lends itself well to the management of the Company,
bringing over thirty years’ experience in Sales, Investor Relations, Real Estate Development,
Construction and Business Development. During his career, Mr. Ray Bishop has created and further
developed several of his own private business enterprises in building and masonry construction and real
estate in Pennsylvania, Florida and Colorado. His pervasive and unique sales approach and construction
background provides significant expertise to the Company so as to evaluate opportunities and then
further develop the associated properties to realize and finally sell the full potential of their inherent
value to prospective clients.
As a stockbroker, Mr. Ray Bishop has developed the intimate knowledge and expertise required to direct
corporate management in the requirements to not only increase shareholder value, but also to provide
the insight, guidance and contacts needed for the company’s expected exponential growth and future
stock offerings. Mr. Ray Bishop has previously been involved with the Initial Public Offering as well as
the growth and appreciation of the shareholder value of numerous startup companies.
Jason Bishop
Jason began his career by working independently as a consultant with The Ephraim Group, eventually
becoming their foremost business analyst while evolving his career into strategic partnering and
intellectual property management. While at The Ephraim Group, Jason successfully represented and
sold biotechnology to clients worth $20 million.
Since his tenure at The Ephraim Group, Jason most notably gained international and domestic interest
for managed intellectual technologies from companies such as iKobo, S&B Worldwide, GEA Farm
Technologies and ACCSOL Dairy.
Jason also serves as Advanced Asset Management’s COO. Through his direct efforts Advanced Asset
Management reached a peak of maintained assets totaling over $10 million. Jason’s business
relationships with national asset companies as well as with financial institution foreclosure
representatives serve as an invaluable asset to the Company.
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10. FINANCIAL PROJECTIONS
10.1.
Key Assumptions
The following assumptions were utilized while preparing the four-year financial projections.










For the first 18 months of execution of this business proposal, management of the Company will
focus solely on acquiring distressed and foreclosed properties to quickly build an asset base and net
equity. Management believes that this specific business aspect lends itself best to the current
business model of Advanced Asset Management.
Mineral and energy rights as well as existing government programs that might apply to any one
particular property holding are impossible to predict without being actively involved in that specific
property. The financial projections for the sale of mineral or energy rights as well as funds
generated from taking advantage of existing or proposed government programs that are portrayed
could vary widely in both the size and timing of execution. Therefore, the portrayed financial
projections are very conservative estimates.
Residential properties acquired by the Company are estimated to have an average equity value of
25%. Additionally, the Company will seek out investment properties that offer debt payment to
income ratios of 1:2. Rental income based on $800 monthly.
Leasable farmland price per acre is assumed at $100 per year per acre.
For the purposes of this analysis, income taxes have been estimated at 40% of earnings and all
depreciation has been calculated based on a forty-year life of depreciable property.
Operating expenses include ongoing operations including subcontractor payments, materials etc.
Operating expenses include rehabilitation expenses for rental and residential disposition properties.
It is expected to purchase and rehabilitate one rental property per quarter for years 1 through 4.
It is expected to identify, purchase, rehabilitate and dispose of one residential property per half for
the first year, eventually ramping up to one home per four months.
It is assumed that by year 4, the Company will use its assets to purchase raw land. The resources
that were previously directed towards acquiring rental properties will be focused on obtaining land
assets.
10.2 Four-Year Financial Projections
Figure 2 shows the projected four-year financial projections for Advanced Asset
Management
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Figure 2
Description
1st Year
2nd Year
3rd Year
4th Year
Total
$150,000
$150,000
Sales:
Mineral Rights
Renewable Harvesting
Residential
Developments
Rental Property
$38,400
$76,800
$115,200
$115,200
$345,600
$220,000
$100,000
$358,400
$330,000
$125,000
$531,800
$330,000
$150,000
$595,200
$330,000
$175,000
$770,200
$1,210,000
$1,760,000
$2,255,600
$160,000
$220,000
$220,000
$220,000
$820,000
$1,000
$60,000
$1,000
$135,000
$1,000
$145,000
$5,000
$155,000
$8,000
$495,000
$221,000
$356,000
$366,000
$380,000
$1,323,000
$137,400
$175,800
$229,200
$550,200
$932,600
$50,000
$55,000
$60,000
$70,000
$235,000
$5,000
$10,000
$15,000
Commercial Property
Residential Sales
Ongoing Operations
Total Sales:
Cost of Sales:
Acquisitions
Development
Engineering,
Permitting, Etc.
Operations
Total Cost
Sales
Gross Profit:
of
Operating
Expenses:
Marketing
Promotions
Administration
&
Research
Development
Travel
&
Total Operating
Expenses
Operating Income
EBITDA
Depreciation &
Amortization
Earnings Before
Income Taxes
Income Taxes @
40%
Net Earnings
$50,000
$55,000
$65,000
$80,000
$250,000
$87,400
$120,000
$164,200
$470,200
$682,600
$87,400
$120,000
$164,200
$470,200
$682,600
$52,440
$72,480
$96,520
$282,120
$409,560
$52,440
$72,480
$96,520
$282,120
$409,560
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10.3 Four-Year Projected Balance Sheets
Figure 3 shows the projected four-year balance sheets for Advanced Asset Management
Figure 3
1st Year
2nd Year
3rd Year
4th Year
$500,000
$52,440
$250,000
$72,480
$250,000
$96,520
$250,000
$20,000
$23,500
Total Current Assets $543,500
$20,000
$23,500
$345,940
$20,000
$20,000
$23,500
Description
1
Current Assets
Cash and Deposits
Carry
over
Infusion
Receivables
Equipment
Capital
2
$23.500
$365,980
Other Assets
Inventories (timber)
Land
$140,000
$250,000
3
Commercial
4
holdings
Residential
5
Holdings
Property
Property
$224,800
$450,000
$674,800
$674,400
$768,300
$891,840
$1,040,760
$1,454,420
$112,400
$224,800
$112,400
$224,800
$337,200
$100,000
$437,200
$779,440
$815,960
$1,017,220
Total Other Assets
Total Assets
Current Liabilities6
Mortgages
Accounts Payable
Income Taxes
Total
Liabilities
Long
Liabilities
Current
Term
Mortgages
Privately held mortgages
Total Long Term
Liabilities
Total Net Assets
$768,300
1
Obligations less than twelve months
Equipment assets is a variable number in years 2 through 4 for the purposes of net assets of the Company, owned
by the Company.
3
At cost assuming no appreciation in market value
4
At cost
5
At cost
6
Assumed obligations for ten years @ 8% per annum
2
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10.4 Key Metrics Analysis
Figure 4 shows the four-year projections of key measurable for Advanced Asset Management
Figure 4
1st Year
Outstanding 2,000,000
2nd Year
2,000,000
3rd Year
2,000,000
4th Year
2,000,000
$0.38
$0.39
$0.41
$0.51
$1.00
$1.00
$1.00
$1.00
Description
Total
Shares:
Net Earnings (loss)
per Share:
Total Cash per
7
Share
Book Value per
Share8
10.5 Four-Year Projection Sensitivity Analysis
The primary characteristics identified as having the most significant risk implications and associated
impact to the profitability and growth of Advanced Asset Management are shown in the following
abbreviated financial projection tables. Each table assumes other factors remain as originally projected,
and the impact that a variance to each significant control variable has the potential four-year total
earnings for Advanced Asset Management.
10.5.1 Acquisition Costs
Advanced Asset Management’s prospects will be very dependent on the availability and
associated acquisition costs of properties that fit the profile of assets required to meet the
long—term objectives of the company. In addition, real estate markets have been extremely
volatile in parts of the country. Further troubles in the economy should further cool the
demand for real estate to the benefit of the Company. Realistically, if costs are significantly
higher than expected, it could negatively impact the ability to take advantage of market
opportunities.
10.5.2 Sale of Mineral and Energy Rights
The demand and subsequent sale of Mineral and/or Energy Rights is subject to the whims and
fancies of market forces that are not within the direct control of the Company. Additionally, the
markets for these products have a very limited customer base, which could adversely affect
7
8
Cash value paid in dividends calculated against liquid and non liquid assets of company
Cost per share
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negotiations and could also negatively affect the timely development and execution of the sales
contracts of Mineral and/or Energy Rights.
Management of the Company expects that any diversification into the sale of Mineral and / or
Energy Rights would be well after the established asset base of the Company, somewhere after
year 5. Financial projections are not provided for this business aspect because any numbers
given herein could be greatly different than actual future numbers.
10.5.3 Renewable Harvests
Demand and sale prices for the renewable resources that are projected to be within the
portfolio of the Company’s assets is expected to continue to increase over time, making long
term harvesting products, such as timber a very profitable enterprise, but all of the products in
the Company’s portfolio will essentially be commodities having no brand identity, and as such
they will be subject to short term spot demand and pricing. The term Renewable Harvest refers
to items such as timbering and farm operations.
10.5.4 Combined Sensitivity Analysis
A worst-case scenario for years 1-4 combines the effects of greater than anticipated acquisition
costs for rental properties, depressed pricing for rental agreements, increased costs of
rehabilitation as well as lowered equity in real estate assets.
11. FUNDING REQUIREMENTS & USE OF PROCEEDS
Initially, Advanced Asset Management seeks a minimum capital requirement of $500,000 to fund the
proposed on-going operations for the first two to four years of the Company. Out of the total
authorized amount of 2,000,000 shares, each invested dollar will receive one share of the Company.
Funds raised will be utilized to:
 Discover, evaluate and acquire properties below fair market value that have the characteristics
identified by the Company that will enable minimization or elimination of all assumed
acquisition debt.
 Initially help cover necessary expenses for the on-going operations of the Company. These will
likely include but not be limited to travel and equipment.
12. IMPLEMENTATION
Upon the raising of initial capital, Advanced Asset Management will begin to acquire properties
identified by management that have the necessary characteristics of business opportunities that support
the goals of the Company outlined previously.
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As net asset holdings increase, debt is reduced or eliminated, and the company begins to realize
relevant positive cash flow, it is expected that Management in Advanced Asset Management will declare
either an on-going dividend distribution, or a special, on time dividend distribution that would be part of
a program of special dividends that are declared on an annual basis, or some combination thereof,
sometime prior to the end or year two.
Additionally, the Company expects that some of the land acquisitions in year 4 will entail opportunities
for shareholders to enjoy as part of ownership in the Company. These opportunities may include, but
not be limited to:
 Vacation opportunities in rural areas where the Company acquires land with habitable dwellings
 Hunting opportunities on privately held Company land
Naturally, the nature and opportunity depends on the availability of such acquisitions and the viability of
these benefits to shareholders. Management believes that all shareholders are to be treated equally,
regardless of the amount of shares held. Therefore, if these opportunities arise for the shareholders of
the Company, they will become available on a first-come-first serve basis. Guidelines of usage will be on
a per-case basis.
13. Conclusion
The funds raised from investors as a result of this business plan for Advanced Asset Management will
allow the Company to acquire strategic properties that the company will utilize to generate cash flow in
order to minimize or eliminate any debt that was incurred during the acquisitions. As the business
develops, the Company will use the cash flow generated from these net holdings to take advantage of
other opportunities as discussed previously that fit the business strategy of Advanced Asset
Management.
Further, management will utilize its competitive edge by taking advantage of currently well-established
business relationships with financial institutions, national foreclosure management companies and local
real estate owned sales agents to acquire properties before the general public becomes aware of their
presence. Management believes that utilizing non-conventional mortgage options will help to motivate
current owners of foreclosed and distressed properties without taking the time and effort to sell to the
general public. Additionally, the well-established contracting and foreclosure rehabilitation experience
of the Company will ensure accurate cost and value estimates as well as quick turn-around time from
acquisition to Company utilization.
Lastly, Advanced Asset Management will own a continually growing inventory of a diverse mix of nearly
debt free, minimally taxed assets requiring little maintenance that are anticipated to provide on-going
income streams to the Company. Going forward, Advanced Asset Management’s accumulation of net
asset holdings and the anticipated growth in the value of these net assets is therefore expected to
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increase the market value of each share of company stock, providing long-term growth for all
shareholders.
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