A cover page with catchy name and slogan is a must. Artist Housing is a subsidiary of Logical Real Estate, LLC

Executive SummaryArtist Housing’s business and activities with overview of key objectives, business goals, and investor returns.

Artist Housing is actively leasing downtown commercial and industrial spaces in the CR, MR1, MR2, M1, M2, M3, C1, C1.5, C2, C4, C5, and CM Zones for adaptive reuse for Joint Living and Work Quarters. With the amount of build out we intend to do (Tenant improvements) we require a minimum of 10 year lease with first 2 months waived for renovations.

As the following will explain, there is no risk and nothing to lose for owners/landlords with our occupancy even in a worst case scenario.

Business descriptionPerception of the company, how it will grow and profit:

Our business model is unique. We are the only company right now looking to lease large properties and sublease spaces within them to artist with shared access to main kitchens and bathrooms. This is considered Joint Housing within the municipality standards and can be applied to industrial and commercial buildings with little to no upfront costs.  

What makes our business unique is that it pertains to a specific market of primarily film and music industry artist by which we include additional shared amenities such as film production studios, sound recording rooms, band rehearsal space, and the list goes on and on. Amenities included depend on the property, but we try to pack as many incentives for the aspiring artist as possible.

The market demand for  our 'shared music/film amenities' business model is extremely high so we are in need of expanding quickly. As you may know, Los Angeles has a surge of the youthful X-Generation migrating from other states to pursue their passion in film and music. These youths are no doubt obliged to reduce their cost of living by sharing the basic amenities. Even though they will have shared bathrooms and kitchens, they will be giant spaces with modern and upscale designs and thus considered Class A high-end housing. (This may be the only reason we would be demolishing or renovating existing separated spaces.)

There is a high demand for entertainment industry artist interested in living with

others in their field. Tenants are not just paying for a bed and a roof, but a community to collaborate with each other and benefit one another. This experience is motivating and inspiring as they puruse their aspirations in the film and music industries. 

Artist Housing has recently teamed up with Urban Spaces of LA to provide an optimal marketing and management team. Those sections of this proposal will outline in detail how we acquire and maintain 100% occupancy.

[zoning photocopy attached]

Market and Competition . This section is important in any business venture. We honestly acknowledge all competition and describe how Artist Housing differs from other providers. 

With 45,500 residents, 500,000+ weekday employees, and more than 10million annual non-local visitors, Downtown Los Angeles has become Southern California’s economic engine. The 45,518 persons residing in Downtown is a strong 15.1% rise from 2008 (4th quarter).

Nearly one-fifth or 19% of Downtown residents are employed in arts/ entertainment, business/professional/technical services employee the slightly higher 20% majority, by far the top two fields. There is a large migration from other states as well as international locations into Los Angeles as a result of people wanting to be closer to the entertainment capital of the world. There is a giant lack of music-friendly places. Demand is growing exponentially for such accommodations.

As by the LADT 4Q Housing Book, from the adoption of the reuse ordinance, residential property has been the largest property type invested on from 2000 to 2012 at $5,927,100,000. Mixed-Use came in second, followed by Civic/Institutional, Arts/Entertainment, and finally Commercial.

Downtown Demographics:Ethnicity: The largest group, Caucasians, remaines constant at 53%(versus 54%in 2008), with Asian-Americans/Pacific Islanders at 22%(21%) and Hispanics/Latinos at nearly 18%(17%), whereas African-Americans at 6.5%slipped slightly from 8%in 2008.Gender: 54%(53%) of Downtown resident are female and 46%(47%) are male.Age: Downtown residents’ median age is 32.5 years.Education: 80% of Downtown residents completed four-year college or higher levels of education.

Housing Stats: A total of 28,861 residential units are located in Downtown LA, up 11.0%from2008 (4th quarter).

 The average number of residents per Downtown household remained constant at 1.8. Downtown residents spent a median of 1.7 (2.3) years at their current residence. According to Hotpads.com, the median rent for a private room in a shared building in Downtown is $1,575.

The study results underscore that Downtown LA is supported by a strong residential and employment base. Downtown LA is alive with new developments, fine and eclectic restaurants, unique businesses, exciting events and activities, and a new wave of residents entering the market. Downtown LA is economically viable, culturally vibrant and continues to grow strongly. Downtown LA is the Southern California hub for economic activity, employment and transportation. It is the region’s premier destination for entertainment, nightlife, sports events, cultural arts and special events. All signs point to sustained growth and viability now and into the near future.

There are currently other properties that have done the same business model of private rooms with shared bathrooms and kitchens but they are very strict on applicants because of demand and require a minimum of 1 year lease. For initial occupancy we will provide month to month leasing with no credit checks. Most students out of college do not have great credit scores.

Artist Housing Comparables:Brewery Arts Complex  Strengths: Considered “The world's largest artist-in-residence community" and Los Angeles Times The quoted it as the "world's largest art complex."Weaknesses: No dogs or musical instruments.

The Loft at Liz’s:Strengths: have monthly different exhibitions. Weaknesses: Not in downtown (located in Mid-City). No Vacancy.

825 Art StudiosStrengths: have private studio spaces. Weaknesses: Not in downtown (located in San Pedro). Primarily for painters and photographers.

Joint Housing Comparables:Rosslyn Lofts: Strengths: Only $800 and includes internet. Allows pets. No deposit?Weaknesses: Income restricted. House section 8 tenants. too many units to share amenities and management and cleaning services cannot keep up with 221 units. Does not include parking. 

Hutington Apartments:Strengths: all included for $499.Weaknesses: Only 1 year leases.$40 application for background check and credit check. 

Local Lofts Comparables:Watermarke Tower:  Originally made for condos now converted to apartments because of demand.   Opened April 26, 2010  214 units  97% occupancy.

SOUTH VILLAGE – THE MARKET TOP FLATS   266 loft-style apartments, a 50,000 square foot Ralph’s grocery store and an additional 10,000 square feet of retail space.     100% Occupancy  Completed in 2005.

Historci Gas Company Lofts.  251 units  Studios starting at $1,500  Across the street and have 96.5% occupancy.

With the above comparables, it is clear to see, demand is high. Once our property is operational the leasing process takes an average of 2 weeks. Most tenant turn-overs occur at the end and beginning of the month so that would be our expected deadline to accomplish full occupancy. 

Our Product and Service:...This section describes the core of ArtistHousing.com. 

Logical Real Estate, LLC is in current good standing and status. We are at a point in our ArtistHousing.com company development where we need to expand to absorb the growing market demand.

Urban Spaces has done this for 2 years with 10 properties under their belt. We have combined experience of 17 years with over 20 properties and hundreds of subleases. 

Our current portfolio consists of 6 similar properties under our lease and ownerships which we can provide a couple of their last 3 months of bank statements to show they are in stable condition with generous income. To-date, tenancy turn-over has been minimal. Because we offer month-to-month, many tenants use our property as a launch

pad or stepping stone when coming from other states or countries to get a better idea of the city before signing year leases. Nevertheless, the majority stay once they see high quality life style we provide them.We are prepared for setbacks and possible failure and have created many exit strategies. 

Founder Kelvin Xuna is a certified Risk Management Professional from the Project Management Institute, so rest assured, Artist Housing is excellent in accessing risk, making decisions and executing plans.

Mr. Xuna is also a LEED Certified Professional. ArtistHousing.com will do mostly lead standard improvements for some more incentives, LEED certified buildings often provide healthier work and living environments, which contributes to higher productivity and improved employee health and comfort. It will benefit the owner in the long run because if they plan on constructing the building vertically, the Private Sector Green Building Plan requires all private development of 50,000  square feet or greater to earn LEED Certified. But with that you may qualify for Density Bonuses such as increase Floor-to-Area Ratios, or Height bonus.

With the amount of improvements we will be doing to modernize the building, we are asking for 10 year leases with option for another 10. 

Artist Housing will attempt to access community benefits and incentives. Downtown Los Angeles has a lot of financial vehicles to support new housing in otherwise underused properties. A report on our resources can be found at http://www.artisthousing.com/investments.html

In properties that we can provided housing for low income, there are many more incentives via the Housing Authority:

Family Self-Sufficiency ProgramSection 8 Homeless ProgramHomeownership ProgramHousing Opportunities for Persons with AIDSNew Construction ProgramProject Based Voucher ProgramShelter Plus Care ProgramModerate Rehabilitation for Single Room OccupancyModerate RehabilitationHUD-VASH

 If requested we can provide monthly property update reports with up-to-date pictures of your property...

MarketingArtistHousing.com recently partnered with Urban Spaces of LA for greater marketing reach. The merger of Artist Housing with Urban Spaces creates an epic marketing team. ArtistHousing.com and UrbanSpacesLA.com have a huge internet presence and an overwhelming demand for more artist spaces. Hence, the reason we prepared this proposal.

We have great access to the marketplace via todays facilitated sources such as online community, social media and sharing websites. It has never been a better time to reach the most amounts of people in such an easy way. 

We advertise, attend trade shows, and have a huge online presence. 

The entire marketing for us is quick and easy. Utilizing the internet it cost us absolutely no money to "acquire" a customer.

Our current marketing strategy is detailed below in the same fashion as the end user sees it:

Main features:   ·         Spacious joint artist housing.  ·         Tall 12’ ceilings with skylights in each room.  ·         Gourmet Kitchen with Granite Counters and Stainless steel appliances.  ·         Soon more improvements as tiled bathrooms and walk in closets.  ·         Furnished or not option for same price.  ·         Modern Designs throughout.

Let Us Attend to Your Lifestyle Needs  ·         24-Hour Tenant Services  ·         Maid Service  ·         Restaurant Reservations  ·         Packing, Shipping & Mailing  ·         Dry Cleaning Services  ·         Nightclub Lists / VIP  ·         Taxi Cabs & Transportation  ·         Concert Information & Tickets  ·         In Home Massage / Stylist  ·         Maps & Directions  ·         Studio Tours / Movies, Hollywood  ·         Pet Services / Dog Walking  ·         Concierge  ·         Courtesy Patrol  ·         Pay rent online or by phone with credit cards.

  ·         Month to month lease- If you don’t like the space give us a 30 day notice.  ·         Promote healthy living and use low VOC paints, sealants, and cleaning products.

Amenities  ·         24-Hour Fitness Center and or complimentary Ballys membership  ·         Premiere Movie Screening Room  ·         Private Dedicated Parking with Controlled Access  ·         Community Laundry room  ·         Business center  ·         Community lounge/terrace  ·         Community roof garden  ·         Keyless entry  ·         All utilities included such as cable tv and high speed internet, and of course water, power, trash, sewage, included in rent.

Community Features  ·         Within walking distance to Staples Center and Metro Station.  ·         Steps from Ralphs Market.  ·         Walk to Live, Metro Link, Dining, and Nightlife.  ·         Close to everything.

Management and PersonnelArtist Housing is a subsidiary of Logical Real Estate, LLC 

We staff and manage our properties with utmost importance. Below is an introduction of who we are and why Landlords/Owners should trust us, followed by one-paragraph biographies of our key team players.

You will find the founder of Artist Housing.com, Kelvin, is a trust worthy person, down to earth, and has good business sense. He currently applies the business model to 4 other properties in LA, 1 in Colorado, and 1 in Miami and all very successful. He has a Real Estate Development and Project Management focused Masters degree from Harvard University with many film industry contacts as he himself is an aspiring filmmaker and that’s his ultimate passion.

The founder of Urban Spaces is an interior designer and has many contacts in the music industry.

You will find Kelvin Xuna’s credit score is one of the highest you have seen at a whopping 764.

Rest assured, our tenancy will provide your property with a great value increase through the years. Being that the property is located in the Adaptive Reuse Incentive Area, makes it eligible for countless incentives directed for Artist Live/Work Studios. In

addition, the Mayor’s Economic Development Committee and the Downtown Strategic Plan (DSP) set forth more programs and financial vehicles for attracting new investments into Downtown for housing and entertainment services. The BID, Enterprise and Empowerment Zones offers even more benefits and we even contacted some Harvard acquaintances in various governmental and non-profit groups who reassured if we need we will be prioritized for benefits such as fee waivers, expedited permit processes, tax incentives, and countless grants that we would be able to dump into your property. Ultimately you will be gaining all these benefits in the short and long run.

On my pastime I am also an actor/filmmaker. One of my motivations is to have great film and recording studios to utilize and the benefits from that are immeasurable for me, my associates, and clients.

In the Appendices, I’ll provide the contact info of the owners of my other properties that we lease from here in LA with similar business model and I think they will all agree we are the best tenant they have had; pay the rent on or before the last day of the month, never late, never hassle with complains, and never request any repairs as its all done in-house under Artist Housing.

I’m also a LEED Certified Professional which I am very passionate about. Using green building materials and techniques, not only qualify us for more incentives and grants (up to $250,000 through the LADWP Green Building Incentive), but LEED projects provide healthier work and living environment, which contributes to higher productivity and comfort for our clients. If and when the owner plans to build the building vertically, it will help qualify for Density Bonuses such as a Height bonus.

I received a masters in real estate from Harvard University so I know how to do these scientific calculations with real estate. I use conservative numbers and included high vacancies, and still every month will be above and beyond the necessary hurdle rate.

1. I have a generous income that can serve as a buffer for any uncertainty that may occur during our stay. We also have a property management company that can handle everything for our properties for an 8% of potential income? They work in contingent with the largest landlord attorney in CA and maybe the US.

Plus as you will see in my calculations of expenses we will have full coverage insurance to cover not only our property but yours as well. I will attach the last 3 months of statements from 2 of my property accounts. I can provide more of my accounts if necessary but rather not disclose too much of my finances. These should be sufficient to show that I am making deposits and the withdraws are being saved in other investment accounts. As you will also see from my attachments, my credit score was a 740 last year, but I recently took on another business venture as I am an entrepreneur (Was President of the Harvard Entrepreneur Club) and as such increased my revolving credit and thus debt which has probably reduced my credit score temporarily, then should go back up to 760 or higher.

Financial Data-

Contains the balance sheet, profit-and-loss statement, break-even chart and cash flow analysis.

1. 20 % should go back into property escrow. First profits should go to List of priority projects: Shower, stairs, film and recording spaces, Then most importantly… Financing. (projected setup, cash flow during construction, timeline, exit strategies)

ArtistHousing will not invest more than we can handle. For example if we propose to do $40,000 in Tenant Improvements, we have the financial backing to complete the project. We will not get to $20,000 and determine we cannot finish. Our estimate is including city and county permits and to be built to code. However, for this type of use we do not need to do much modifications. Actually the less modification for now the easier is it to get the expedited permits for small projects. I understand if you have other offers, but rest assured our will be putting a upsacale artist name brand on the structure.

Exit strategies?

Investments.

Based on cash flow, it includes what the investor will receive as a return.

• What funds have already been raised?• How much money are you raising and at what valuation?• How will the money be spent?• How long will it last and where will the company "be" on its milestones progress at that time?• How much additional funding do you anticipate raising & when?

As a benefit to the property owner, the profit will be reinvested back into the property one way or another, and as a result by the end of the year Artist Housing will not be making too much money but the property owner will have an upgraded property.

With Artist Housing’s tenancy, the owners will be nothing short of impressed in the appeal of the place. Some have said we provide the best care and management in town.

Possible opportunity for owner/landlord to have stake in profits.

1. Appendices. Includes testimonials from potential customers, research clips, charts and graphs relevant to Artist Housing. If your hesitant forwarding your idea, put Copyright © even if its not so no one gets any funny ideas.

Patricia Stephan: (213) 386-4049 langeproperties@gmail.com

David Bond: 213 268-2663 cancunite@rocketmail.com

Edna Kuffour: 310.877.4715

Feel free to contact my past employers and clients:

JL Real Ventures

1. Jordan Kavana2. Larry Baum3. Scott Podvin4. Mac Dog5. Joby Weeks

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Artist Housing is familiar with all city codes and regulations such as for our reuse to qualify it need to meet the appropriate live to work space ratio.

We consider the properties we choose to be Flexible Space because we can reorganize or recreate the interior to increase occupancy. The apartment sector is the only real estate with potential in the market, as well as potential with the location.

Each property that we pick will have its own LLC such as Artist Studios, LLC. This title has double meaning like production studios and apartment studios.

Hopefully the owners will feel secure in placing your property under our care. If you agree we can begin within a short period of time.

City of Los Angeles Electrical Code ISBN: 978-1-55701-712-3

The Opportunity:

• How big is the market opportunity you are pursuing and how fast is it growing?

• How established (or emerging) is the market?

• Do you have a credible claim on being one of the top two or three players in the market?

Our Product/Services

• What is your product/service?

• How does it solve your customer’s problem?

• What is unique about your product/service?

Target Consumers

• Who are your existing customers?

• Who is your target customer?

• What defines an "ideal" customer prospect?

• Who actually writes you the check?

• Use specific customer examples where possible.

Value Proposition

• What is your value proposition to the customer?

• What kind of ROI can your customer expect by using buying your product/service?

• What pain are you eliminating?Are you selling vitamins, aspirin or antibiotics? (I.e. a luxury, a nice-to-have, or a need-to-have)

Can pay up to 3 months deposit.

Properties will be subdivided if not already then the spaces will be designated to a company or artist for collaborative use in exchange for a rental fee.

my online resume at http://www.linkedin.com/in/kxuna; I used to do major real estate consulting in Miami and am a Certified Risk Management Professional. I will identify all the risks involved for all parties and find ways of mitigating those risks so everyone wins. There’s a million ways to go about it.

With commercial leasing its either the lessee being financially viable or a sound business plan. In this case I feel I have both. Even though a lessee would want to avoid putting his name and credit on the line as much as possible, I am currently personally guaranteeing it with my 733 score on the table. Even though we all agreed at yesterday’s spontaneous meeting I have good intentions, trust me I would not do anything to put my credit score in jeopardy. I know what I’m talking about when it comes to real estate and business and I see the dollar signs with this property.

Unlike a restaurant that does not have stable operating income until several months, our plan will show how income will be generated immediately upon move in. That is why I was shooting for Feb 1 st. Marketing is very important in business and will show how our companies are very successful at this. Instead of the 3 months deposit I will show how it will be just as good if we possibly cover the brokers fee, upfront work owner was proposing with the doors and bathrooms, and even a notarized affidavit guaranteeing no cost will incur to the owner if our business has to default and surrender the property.

1. 2 page executive summary of Artist Housing business and activities with overview of key objectives and business goals.

2. Artist Housing business description. Perception of the company. How it will grow and profit.3. The Market and Competition. Largest Section. Honestly acknowledges competition and

describes how Artist Housing differs from other providers.4. The Product and Service – describes the core of Artist Housing.5. Marketing/Selling- How we have great access to the marketplace. How we advertise, attend

trade shows, and online presence. 6. Management and Personnel – Explains how we staff and manage properties. Includes one-

paragraph biographies of key team players.7. Financial Data- Contains the balance sheet, profit-and-loss statement, break-even chart and

cash flow analysis.8. Investments. Based on cash flow, it includes what the investor will receive as a return.9. Appendices. Includes testimonials from potential customers, research clips, charts and graphs

relevant to Artist Housing.

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