Investment Approach

Experience
There is nothing like experience when anticipating promising new investment
trends.  Newman Capital was among the early investors to recognize the many
advantages of private equity investment in land lease communities for
manufactured homes.

Asset Location
Newman looks for "macro-market" fundamentals of strong population and
employment growth together with an economy that is broad based and fairly
resilient to economic downturns.  Also looked at closely are "sub-markets"
as sub-markets can have economic performance much different than the
larger market.

Strategic Placements of Capital
While most of Newman's real estate investments have been made in certain
sectors, it monitors real estate markets to identify and then develop the most
promising investment opportunities based on asset class and geography.
Thus, the firm can react quickly to potential opportunities while developing
relationships with key partners in a particular area.

Cash Flow Approach to Investment
The firm's investment decisions center around the philosophy that future cash
flows, not "pride of ownership", ultimately will determine the value of an asset.
Newman Capital has a track record of achieving its investment objectives by
attention to detail, rigorous due diligence, using conservative assumptions
when projecting future cash flows, and careful assessment of the present
and future impact of outside influences on the asset.

Leverage
While Newman prefers to manage the capital structure of its investments
aggressively, it maintains a policy of using prudent leverage on its assets.

Exit Strategy
While many of Newman Capital's investment partnerships have been long term
in nature, the belief is that the time to formulate the potential exit strategies
is during the investment evaluation process.  Newman focuses on making
investments in high quality assets in superior locations that will likely
appeal to a large group of subsequent purchasers.  Preferred investments
will have multiple exit alternatives including private sales, portfolio transactions
within a common asset class and mergers with existing public entities.

Proprietary Deal Flow
Newman Capital welcomes submissions from intermediaries.  Newman also
seeks to identify proprietary deal flow to create exclusive investment
opportunities.  Newman will make smaller select investments that establish
a platform in a new market or asset class, fund an additional investment
with an existing operating partner or expand an existing portfolio.

Joint Ventures and Partnerships
Newman Capital actively seeks joint ventures and partnerships with experienced
local real estate operating partners who possess knowledge and insight
into local real estate markets and asset classes.  Preferred operating
partners will have hands-on operating expertise and knowledge along with
being a source for proprietary deal flow.