Monarch Investment and Management Group

Annual Investor MeetingThursday March 7, 2019

The Brown Palace Hotel

Accounting Mission StatementTHE GOAL OF THE MONARCH INVESTMENT ACCOUNTING TEAM IS TO SUPPORT THEMONARCH OPERATIONS TEAMS AND PROVIDE ACCURATE AND TIMELY FINANCIAL

INFORMATION.

WE ARE DEDICATED TO PROVIDING FRIENDLY, RESPONSIVE SERVICE TO OUR PROPERTY MANAGERS, REGIONAL MANAGERS AND OTHER CORPORATE MEMBERS,

AS WELL AS INVESTORS, TENANTS, VENDORS AND OTHER STAKEHOLDERS.

WE ARE ACCURATE, TIMELY, CONSISTENT, AND THOUGHTFUL IN OUR RESPONSESAND INTERACTIONS WITH OUR STAKEHOLDERS. WE APPROACH THIS TASK AS A TEAM

AND RECOGNIZE THAT THE PERFORMANCE OF EVERY INDIVIDUAL REFLECTS UPONOUR TEAM.

A Month in Accounting

Post Recurring Journal Entries

AccrualsMortgages

Depreciation/AmortizationBank Reconciliations

Budget Variance Review

GPR Journal EntriesBalance Sheet Account

ReconciliationsRecaps

andManagement Fees

Daily Auditing of batches prepared by the propertyReceipt Batches

Payables Batches

Monthly Auditing of Resident LedgersNew Move insConcessions

Deposits Lease dates and Charges

Monthly Audit of DepositsPhysical Audit of Receipt Books to Deposits in Yardi

Quarterly in AccountingRequest Lender Reserves

Quarterly FinancialsDistribute Quarterly Reports

Process Quarterly Distributions

AnnuallyPrepare YE AJEs

Work with CPAs for Tax ReturnsReview Tax Returns

Distribute K-1s

OtherNew Acquisition Set up

Track Investor fundsUpdate Investor Information in Database

Monarch Investment RecruitingTransforming lives, one career at a time!

Leaders in Multifamily Housing

Anthony T Petrone

Anthony T PetroneMonarch Recruiting

Kane MadsenRegional Recruiter

Tracy WestphalenRegional Recruiter

Steve JenkinsRegional Recruiter

Samantha GylesRecruiter

Megan LambertAssistant Recruiter

The hidden costs of turnover!

Ads & Recruitment

Lost productivity /rent

Institutional knowledge

Effect on rest of team

Training

Navigating a career path within Monarch Investment!

The recruiter, a guide to the perfect hire!

So

urc

ing t

ale

nt!

Draw top talent to Monarch!

Monarch Corporate Reputation Management

We can always use your help!

In It Together

The Best Multi Family Company in the Industry

Superior Results to all Stakeholders

Residents ~ Staff ~ Investors

President’s Club Award for Property Managers

Medal of Honor Award for Maintenance Supervisors & Rovers

Golden Hammer Award

Marketing Metamorphosis Award

Team Building Award

• Tool Reimbursement• Boot Reimbursement• Tuition Reimbursement• Employee Discounts• Ski Monarch Perk

Monarch Employee Participation Program and Profit Interest

• 650+ Active Employees with MEPP and/or PI• $54 Million in Profit Interests has paid $26 Million in

Distributions• $9.5 Million in MEPP has paid over $2 Million in

Distributions

In It Together

The Best Multi Family Company in the Industry

Superior Results to all Stakeholders

Residents ~ Staff ~ Investors

Lorraine Vega

Director of Training

Why Training?

• Increased job satisfaction and morale among employees.

• Increased employee motivation.

• Increased efficiencies in processes, resulting in financial gain.

• Increased capacity to adopt new techniques and methods.

• Increased innovation in strategies and products.

• Assist with onboarding and facilitate ongoing training.

• Provide opportunities to enhance the knowledge, develop employee skills and enrich property performance.

• Share industry knowledge, tools and best practices.

• Assist with all company initiatives in an effort to better support our Properties and their Operations.

Our Department Goals

• On-site Operations Trainers – Maria Capalongo & Sada Davis

• Property Management Software Trainers – Marcie Trivette & Rapheal Stevenson

• National Leasing Trainer – Ian Morris

• National Maintenance Trainer – Angel Davila

• Training Specialist & Support – Angela Faria

Our Subject Matter Experts

Hands-on and In-person Training

Regional Managers

35 Regionals

6 Properties per Regional

19 Assistant Regionals

6 Properties per Assistant Regional

Regional Checklist - Weekly

Weekly Week of Week of Week of Week of Week of

Who? Notes:

Monday Reports

Review Delinquency Tracker & collection efforts

Review Availability Report and Make Ready dates

Friday Underperformer Report if required

Approve Leasing Specials

Credit Adjustments

Credit Card Approval

Time America-review exceptions

Deposit Dispositions

Payable Approval

Review Open Positions List & manage

Monitor Reviews- Review Push

Review Payscan to ensure payables posted

Purchase Order Review

Regional Checklist – Monthly & QuarterlySnow Logs/seasonally

Create Monthly Calendar

Shredding Checks-check compliance

Pre-Move Out Inspections-confirm

Renewal Inspections-confirm

Renewal offer Letters Uploaded into Yardi

Renewal Review/Approval at 120 days

Review Lease Expiration Matrix

Resident Care Letters Sent-confirm

Final Renewals/MTM charged on 25th

Preventative Maint Binder Review

Work Order Audit

Credit Card Approvals

NOI Projections to Asset Manager

Reclass SP payroll

Review financials before month end

Review financials with on site teams

Review monthly recap report

Underperforming Checklist Review if applicable

Final Financial Review w/Asset Mgr as requested

Monthly

5-Day Notices w/affidavit Reviewed & saved

Receipt Book Sent to Franktown

Drop Box Logs to Accounting

Delinquency Calls with Properties

Financial Review Audits- follow up with sites

Calculate Prior Month Delinquency Bonus

Commissions-Leasing and Renewal

Submit On Call Bonuses for maintenance

Review Market Rents for increase potential

Review Asset Directory vs. G/L

Review Renters Insurance Compliance

Safety Meeting Rosters Sent to Lorraine

Grace Hill-Assignments & monitoring

Review of website/advertisers

Meet with L/M specialist for monthly review/expectations

Listen to 2 phone calls a month from leasers

Newsletter-review

Collections Sent to Hunter Warfield

File Audits

Monthly Site Inspection

Monthly Smoking Inspection Confirm

Site Light Checks Confirm

Quarterly

NOI bonuses

Manager Meetings

Quarterly Recap Review

Site Inspection

Monday Morning Report

• Summary

• Staffing

• Occupancy

• Renewals

• Marketing

• Maintenance

• Financials

• Delinquency

• Delinquency Tracker

• Renewal Tracker

Monday Morning Report

March 2019Sunday Monday Tuesday Wednesday Thursday Friday Saturday

March marketing calendar due to

regional and marketing specialist

before 1st of the month.

1 Destroy checks 30 days old and

send in receipt books. Email

regional and acct. tracking number

Time America for the week due

by noon except Friday punches

2 Go into credit card and code any

transactions for the week

Manager or Asst Mgr come in to

run checks

3 4 Monday Reports due by noon

Check Friday pm punches and

enter any OT from weekend by 9

am and approve

5 PO’s/Dispos Due enter assets 6 All negative charge request in

Google Drive by noon or batches to

regional

3/5 days due and charge backs,

follow cash control policy and

email Regional when ready to

check

7 8 Time America for the week due

by noon except Friday punches

Bob Report underperforming

Run open PO report

9 Go into credit card and code any

transactions for the week

10 11 Monday Reports due by noon

Check Friday pm punches and

enter any OT from weekend by 9

am and approve

Destroy checks 30 days email

regional

12 PO’s/Dispos Due enter assets 13 All negative charge request in

Google Drive by noon or batches to

regional

14 Renewal Tracker for June due

Market survey due for properties

over 93% otherwise every Monday

15 Time America for the week

due by noon except Friday

punches

Bob Report underperforming

Run open PO report

16 Go into credit card and code any

transactions for the week

17 18 Monday Reports due by noon

Check Friday pm punches and

enter any OT from weekend by 9

am and approve

19 PO’s/Dispos Due enter assets

Pre-inspections for next 30 days of

move outs. April maintenance

schedule due by 3/22

20 All negative charge request in

Google Drive by noon or batches to

regional

Vision X update to regional for your

team. Needs to be caught up by

month end. Send exceptions report

and schedule.

21 Month End checklist email to

regional and accountant

22 Time America for the week

due by noon except Friday

punches

Bob Report underperforming

Run open PO report

Do a final PO run don’t wait for the

last minute

23 Go into credit card and code any

transactions for the week

24 25 Monday Reports due by noon

Check Friday pm punches and

enter any OT from weekend by 9

am and approve

LAST DAY TO PROCESS PO’S

OR PAYABLES. You can still

process new invoices that come in

after this just post them to April

26 Past A/R due. Once turned into

collections email regional and the

accountant.

Commissions and ALL bonuses

due by noon

27 All negative charge request in

Google Drive by noon or batches to

regional

28 29 Time America for the week

due by noon except Friday

punches

Bob Report underperforming

Run open PO report

30 Go into credit card and code any

transactions for the week

Destroy checks 30 days old and

send in receipt books. Email

regional and acct. tracking

number by end of the day April

1st.

Asset Management Via

The Monday Report

Bob Nicolls

Monday Report

• Received for Each property every Monday afternoon.

• Managers pull a Yardi Summary report and are expected to extrapolate on

property performance/ goals.

• Asset Managers typically base their week and resource allocation around the

information received from the Monday reports.

Typical AM Week

• Monday- Email catch up, property review, report analysis, comment

generation, prep for Tuesday calls.

• Tuesday- Calls with Regional Managers to discuss operation plans

• Wednesday- Friday- Execute our operating plan, requires various follow up

with marketing, training, recruiting, rovers, analysts, or site visits.

• New Deals- Who Cares?

Case Study- Ashton Pines 11/5/2018

Case Study- Ashton Pines 11/26/2018

Case Study- Ashton Pines 11/26/2018

Case Study- Ashton Pines 12/03/2018

Case Study- Ashton Pines 12/03/2018

Case Study- Ashton Pines 12/24/2018

Case Study- Ashton Pines 12/24/2018

Case Study- Ashton Pines 12/24/2018

Case Study- Ashton Pines 01/07/2019

Case Study- Ashton Pines 01/28/2019

Case Study- Ashton Pines 01/28/2019

Case Study- Ashton Pines 02/18/2019

Case Study- Ashton Pines 02/18/2019

Case Study- Ashton Pines 03/04/2019

Case Study- Ashton Pines 03/04/2019

3/5/2019

Marketing Department

• Structure & Personnel

• Reputation Management

• Digital Marketing Strategy

• Website Health (SEO)

• Communication Touchpoints

• PPC campaigns (Facebook AD’s / Google AdWords)

• Social Platforms

• Assess new digital marketing tools & products

• The Goal is to Increase Prospect Conversions

Structure &

Personnel

Corporate Structure:

• Marketing Director• Digital Marketing

Coordinator• SEO Analyst • Graphic Designer

Regional Structure:

• 2 - Regional Marketing Directors

• 25 - Leasing & Marketing Specialists

Reputation

Management

“57% of

consumers wont

use a business

or product rated

below 4 Stars”

Digital Marketing

Strategy

• Website Health

• PPC Campaigns

• Social Platforms

• Access new tool &

Products• Drive Quality Traffic

Database, Reporting, & Corporate ServicesCurtis Pottle, Database & Reporting Coordinator

• Team of about 10 people• Database and Reporting Coordinator

• 2 Database and Reporting Analysts

• Website Developer

• 1 Payroll Analyst

• 1 Payroll Coordinator

• 3-4 Corporate Services Analysts

• Rotational Analyst

Snow White & 7 Dwarves, 2018 Halloween

Database & ReportingGoal is to increase the number of properties that managers & accountants can work on and assist other departments by providing reporting and analysis as necessary

Create reports, automated emails, and other tools

Work across multiple databases and vendor systems

Database and Reporting Sample Review

Vacant Utility Billbacks• 2x monthly review to see if units receiving vacant electric/gas bills were actually vacant

during that time

• Bill back to those units which were not vacant, and charge fees to resident

Employee Website

• IT Support

• Referral Bonus

• Transaction Tracker

• Credit Card Request

• Vendor Setup

• Legal Incident Report

• Training Manuals

• Departmental Resources

Corporate Services

Monarch’s newest department is a spinoff of Database & Reporting group

• Procurement & Sourcing

• Project Management & Implementation

• Process Improvement

• National Vendors

• Evaluation of new vendors and projects

Corporate Services Example Project

Elvis Dumervil -- Free Agency Fax Faux Pas Michael Boulton - Destroyed this machine in a field

K-1s

• 150,000 pages of annual K1s and growing• 60% of K1s delivered via electronic access only

• All K1s stored online since 2016 tax year

Visit our booth for more info or to sign up for Online K1 accessTidying up with Marie Kondo

Advantages of Online K1s

Faster delivery• Up to a week faster, not including time spent in the mail

• No need to drop off at a CPA office if CPA has access

Secure platform to store several K1s since 2016 tax year

No risk of having personal info sent via US Mail

Visit our booth for more info or to sign up for Online K1 access

Monarch Legal Department

• Geoff Frazier – General Counsel of Operations• (303) 607-7917

• gfrazier@monarchinvestment.com

• Ande Yahr – General Counsel of Real Estate• (303) 607-7919

• ayahr@monarchinvestment.com

Who Are We?

• Geoff Frazier, General Counsel of Operations, joined Cheri Lewis in 2013;

• Ande Yahr joined as General Counsel of Real Estate in 2015;

• Heather Scott hired in late 2015 as Assistant General Counsel;

• Mark Wicker: Compliance/Risk Manager – hired in 2016;

• Natalie Gates: Legal Assistant;

• Kristina Ellis: Law Clerk (3rd year law student at DU)

Operational Legal Issues

• Litigation: “I fell down! Pay me!”

• Fair Housing Compliance & Claims

• Offensive Claims

• Emergency Response/Assistance: fires, floods, tornados, crime, locusts, etc.

• Insurance coverage and claims

• Policies/Procedures/Resources for Field

• Employment issues

• Vendor Contract Drafting/Negotiation

• Training/Compliance

• All the “weird stuff ”

Transactional Group

Transactional Matters

• Acquisitions, sales and financings

• 1031 accommodation/tenancies-in-common

• Limited liability companies

• Securities

• Membership interest transfers and investor communications

• Commercial contracts

• Interests in real estate

• Eminent domain

• Misc. corporate and real estate related matters

Closing Remarks

Questions?

Please visit each group’s department table starting at 1:30