Start-Up the Orange Grove Group,

Start-Up

The Orange Grove Group, LLC

As 'The Orange Grove Group, LLC' we formed an LLC entity with three members. We purchased a land of 1000 acres in 2011 with a land loan. We have created a development plan with a bank mortgage to create a community, compound that has: residential units (800), retail space and also a recreation center (country club). We have thoroughly thought our business plan and the roles of each level.

Core Business Segments

Layer 1: Rentals available for 4-bedroom single-family homes and 1-3 bedroom townhomes. "Highest and best use" layer- most profitable

retail stores ( we will have 5 restaurants and a yogurt shop)

Recreational (golf, tennis, fitness and pool)

We have three levels under our entity. They are three separate associations.

Business Organziation

We have filled the three main documents that are necessary to develop association.

Articles of Incorporation

- we have three board members: Alex, Steph, Joe

the president is Alex

- you get elected board president

- If the president is sick Joe is in charge

- ( Please see what else goes under this and make it up)

3) CCR, Covenant condition and restrictions

Common Elements

1. hallways, lobby - everyone has to pay maintenance fee for cleaning company to clean all these shared areas

2. elevators - maintenance fee again, need to comply with maintenance checks to make sure functioning properly

3. stairs - keep stairway entrances clear in case need to evacuate for fire)

4. balconies - can't leave things out on balconies because if tropical storms hit, things on balconies

5. Personal parking

6. Common grounds -- grass, landscaping, and outdoor fixtures

Start-up Plans

The first step will be to file the legal requirements with the state and officially form the organization. Once this is established the business plan can be formed. The next step will be to find the site location. A real estate agent will be necessary to assist in this process. Finding a good real estate agent that is well versed in commercial start-ups can be a critical success factor and hence the agent should be screened carefully. After the site is chosen, then an architect and site designer will have to be consulted so that the final plan for the use of the land can be created.

Once the real estate site is finalized and the use of the property is developed through the necessary schematics and blueprints, the next phase will involve raising the capital necessary to proceed with the plan. There are several ways to raise capital but since we are organized as a LLC, the best alternative will most likely be a commercial loan. There is also the opportunity to find a private investor, or group of investors, that might be interested in making an investment.

Since the management team will be comprised of a three way partnership, major decision will be made among the group and 2/3 majority must agree to pursue and decision in the organization. This format will serve the group well and allow decisions to be made quickly. There should also be an option for the non-agreeing member to challenge the majority in case they feel that a big mistake is being made. This will simply require a presentation of the key facts and the logical manner in which the decision is being made to the third party. Although this might slow decision making, this pause may keep the majority from making a mistake although the 2/3 approval will still rule in the end.