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AIP General Partners Ltd
Wholly owned subsidiary of Aydon Income Properties Inc.
AIP
LIMITED
PARTNERSHIP
Metro Detroit Real Estate Investment Opportunity
INVESTMENT SUMMARY
AIP
Limited
Partnership
Content
Who we are & What we do Page 3
Why Detroit? Page 4
Sample Properties Page 6
Housing Vouchers / Section 8 / Inspection Page 7
The Opportunity / Property Management Page 8
Investment Highlights / Appreciation Expectations Page 9
How to Subscribe Page 10
Contact Information Page 11
2Copyright © 2015 Aydon Income Properties, Inc.
AIP
Limited
Partnership
3
Who we are and what we do
Who we are
What we do
IP General Partners Ltd. is a wholly owned
Asubsidiary of Aydon Income Properties Inc.
(”Aydon”), a publicly listed company on the
Canadian Securities Exchange (the “CSE”).Aydon is a
real estate investment & development company
targeting under-valued income producing properties in
select areas of the United States and Canada with the
goal of securing high cash flow and capital appreciation
potential to maximize returns for its shareholders and
investors.
ydon has structured a Limited Partnership
Ainvestment to give investors the opportunity to
take advantage of the recovery currently
underway in the United States after the financial crisis
that led to a severe downturn in the residential housing
market.
The AIP Limited Partnership's ("AIP" or "AIP LP")
primary investment strategy is to acquire quality real
estate assets at prices well below replacement cost in
carefully selected areas of Detroit, Michigan where
there is a low cost of entry with strong cash flows and a
high probability of increasing home values.
AIP's aim is to capitalize on the real estate recovery by
acquiring a large portfolio of single family homes in
prime residential neighbourhoods of Metropolitan
Detroit that can be turned around and made more
profitable through rehabilitation and marketing
programs designed to maximize occupancy and boost
rents.
AIP is raising up to USD$3.4 million in equity to acquire
up to 100 residential properties in its portfolio. These
homes will be fully renovated, tenanted and managed
by a leading property management company located in
the Metro Detroit area.
We acquire under-valued properties
well below replacement cost then
renovate, upgrade, tenant, manage and
maintain with the goal of maximizing
cash flow and capital appreciation
potential over the long term for our
shareholders and investors.
AIP General Partners Ltd.
4
Why Detroit?
etroit is in recovery after suffering heavily in the
Ddownturn when real estate prices dropped by more
than 75%. This resulted in properties being valued at
well below replacement cost, making the city a prime
investment area that offers significant growth potential.
Although prices have begun to recover, there are few other
major cities where investors can still buy property at such
discounted prices that are also backed by the US
government rental programs.
Strong Reasons to Invest in Real Estate in Detroit:
 The basics
· Detroit is the largest city in the state of Michigan and Greater Metro Detroit has a population of over 4 million (Source:
U.S. Census Bureau).
· The terms of the Detroit's bankruptcy plan includes $1.7 Billion to be spent demolishing abandoned buildings,
improving public safety and upgrading basic services.
· Detroit (and Windsor in Canada) has the busiest of all US-Canadian border crossings
· US – Canada trade totals over $500 Billion per annum (more than $1 Billion a day). In 2014 work began on the
construction of the US$ 2.1 Billion New International Trade Crossing between Detroit and Windsor
· Today there are 85,000 employees in Downtown Detroit and by 2016 is expected to be 100,000. (Source: Downtown
Detroit Partnership)
· With increasing demands on residential accommodations, average rents are expected to climb by 17% over the next 3
years. (Source: LocalMarketMonitor.com).
 Employment levels and job creation
· The number of jobs in Metro Detroit has increased by 33.1% since March 2010. (Source: Simplyhired.com)
· 146,420 were created in 2013 alone. (Source: Southeast Michigan Council of Governments)
· University of Michigan economists George Fulton, Joan Crary and Donald Grimes predict another 130,000 will be
added by the end of 2015. (Source: Research Seminar in Quantitative Economics Michigan forecast)
 Population growth
· Metro Detroit's population is expected to grow steadily from 2014 with the creation of many new jobs.
 Housing supply and demand
· Housing supply (inventory) in Detroit has dropped continuously since 2007, a drastic 84.39%.
· 84,312 properties were on the market in August 2007; by March 2014 there were only 13,162.
· Only 7,564 new residential building permits were issued in 2013. (Source: Southeast Michigan Council of Government)
5
Why Detroit Cont.?
· The Marcus and Milichap Report says: "Construction of new apartments will likely be fuelled by tightened vacancy
rates and soaring rents. When builders start to build again, it's a good sign that a housing market is well on the road to
recovery.”
· In Q4 2014, Detroit vacancy was the lowest year-end rate in 13 years, falling 30 basis points to 4.1%. (Source:
Southeast Michigan Council of Government)
· Founder of Data Driven Detroit, Kurt Metzger, added: "Demand is outpacing the supply of desirable places to live in
Detroit. Prices are just getting to the point where it makes sense to break new construction."
 Affordability of property
· Property in Detroit is 20% undervalued. (Source: Trulia Bubble Watch Q1 2014), therefore making it some of the most
affordable in the USA; a reason why local companies are investing heavily in Detroit.
· The median sales price for single family homes in Detroit continues to strengthen, however it is still way below the
2005 average of $172,000. (Source: Trulia Bubble Watch Q1 2014).
 Rental yields
· Today there are 85,000 employees in Downtown Detroit and by 2016 is expected to be 100,000. (Source: Downtown
Detroit Partnership)
· With these increasing demands on residential accommodations in downtown Detroit and surrounding neighbourhoods,
average rents are expected to climb by 14.6% by 2016. (Source: RentRange.com). Many are being priced out of the
city center already.
· Those moving to neighbourhoods close to the city center can rent a detached house for the same price as a small
apartment in the downtown area. “Places such as East English Village, Warrendale and Morningside are all in high
demand” according to RentJungle.com.
· The increase in demand in these neighbourhoods has already had an effect on prices where rents are rising faster
than in downtown Detroit.
· One year performance of median rents for a 3 bedroom single family home to March 2014 (Source:RentRange.com)
- East English Village - Increase = 6.43% - (now $745 - up $45)
- Warrendale - Increase = 12.44% (now $750 - up $83)
- Morningside - Increase = 14.61% (now $800 - up $102).
 Current investment
· 14 of the 2015 Fortune 500 companies have HQs in the greater Detroit area.
· Quicken Loans (Dan Gilbert) has invested over $1.7 Billion in downtown Detroit.
· Detroit's Riverfront Project has spent over $1 Billion in the past 5 years. (Source: Detroit River Front Conservancy)
· The new Red Wings Arena, a $650 Million rebuild, will transform a 45-block area into an entertainment district, new
retail plaza and residential and office space. Completion is scheduled for 2016.
· The M1 Rail Network will spend $137 Million and will integrate a $500 Million rapid bus and rail system linking Detroit to
its suburbs, as well as a high-speed passenger railway between Detroit and Chicago. Completion in 2016,
· The new International Trade Crossing to Windsor, Canada will create over 43,000 jobs at a cost of $2.1 Billion
· Ford's 2014 $6.3 Billion profit was one of the best years in its 110 year history and the company recently committed to
investing $3.1 Billion on upgrading existing buildings and new facilities in Detroit and surrounding areas in Michigan..
· GM, made $5.61 Billion in 2014 excluding one-time charges and will invest $450 Million into their Hamtramck-Detroit
plant. This will create 1,400 jobs.
· Chrysler Fiat made an operating profit in 2014 of $4.1 Billion fueled by a very strong North American performance. Their
Jeep plant is undergoing a $148 Million renovation and once completed will add 1,100 new jobs.
MODEST HOME PRISES & RISING RENTS = OPPORTUNITY FOR STRONG CASH FLOW &
CAPITAL GROWTH.
A Sample of Properties
6
8826WestSevenMileRoad, Detroit,MI
This well-maintained 3 bedroom bungalow property is located in one of
Detroit's premier neighborhoods. The Bagley community boasts high
home ownership rates, low vacancy, and some of the best schools &
colleges in the City. On the same street, just a few hundred yards away is
the campus of University of Detroit Jesuit High School, a private catholic
school with one of the highest graduation rates in Michigan. The
neighborhood is also home to the University of Detroit Mercy (known for
its Law School) as well as Marygrove College. The layout features two
bedrooms on the first level and large third bedroom on the second level.
The home's taxes have been reduced, and is currently rented to a Section 8
tenant. The home sits on a large lot, with a land area size exceeding 5100
sq ft.
19736 Prest,Detroit,MI
This 3 bedroom bungalow style home is located on Detroit's northwest
side, just south of 8 Mile Rd, Detroit's border. The proximity to the
northern suburbs means the home is close to some of the largest shopping
centers in the State and a thriving small business community. The densely
populated area has attracted major regional retailers to community. In
2013, Meijer Supermarket opened one of its largest stores in the area right
on 8 Mile within Detroit's city limits. The home itself has been fully
updated in order to meet Section 8 requirements and features a newly
installed “3 dimensional” roof. Before the mortgage crisis of the late
2000's, the home sold for $125,000 in 2006 according to public records.
Schools in the area include Bow Elementary and Michigan Technical
Academy(anawardwinningpubliccharterschool).
18959 Lauder, Detroit,MI
This beautiful 3 Bedroom all brick colonial was built during the post-
WorldWar II housing boom (1948). During this period, Detroit's economy
was booming and the property is a testament to the era's unique
architectural style. The home is located on a well maintained, high
occupancy block on Detroit's northwest side. Among the reasons this
neighborhood has remained stable is the proximity to premier educational
institutions. Nearby Detroit Renaissance High School is ranked top 3
citywide (academic performance, graduation rates) according to data
released by Detroit Public Schools. Also, one of the top employers in
Detroit is located a short drive away (Detroit Medical Center's flagship
campus – Sinai Grace Hospital). The current tenant has been thoroughly
screened and has recently opted for lease renewal.The 1600 sq ft home has
hugecapitalgainpotentialandsold for $135,000in2009.
6824Warwick, Detroit,MI
This full brick 1.5 story home includes over 1000 sq ft of living space, a
large backyard and a detached 2 car garage. The property is located in the
Warrendale community which derives its name from the neighborhood's
main road: Warren Avenue. This road is lined with small businesses
reflecting the diverse culture of its residents. Warrendale has become a
melting pot, and borders the well-known suburb of Dearborn (home to
Ford Motor Company's global headquarters). Detroit's main North-West
artery, the Southfield Freeway (M-39), is located a short drive away
providing quick access to amenities such as Fairlane Shopping Center.
The current tenant holds a Section 8 housing voucher, with the majority of
the rent paid by the local housing commission. The home sold for
$110,000in2006 accordingtopublicrecords.
Net Yield: 12.82% Selling Price: $47,000
Net Yield: 12.54% Selling Price: $46,000
Net Yield: 12.76% Selling Price: $51,000
Net Yield: 12.53% Selling Price: $45,000
7
Housing Vouchers
Inspection
DHC Housing Choice
Voucher Program
(Formally Section 8)
AIP
Limited
Partnership
his subsidy program is strictly monitored
Tand has stringent qualification policy,
substantially mitigating landlord risks. This
policy has resulted in an extremely low percentage
of evictions and higher quality of tenants.
Every year the Housing and Urban Development
(HUD) conduct inspections of all the Section 8
properties. Once they have passed the Inspection,
guarantee vouchers are re-issued.
AIP Properties are monitored closely through
continued inspections by the management
company under the supervision ofAIP.
he Section 8 program is designed to assist
Tfamilies and people that require financial
assistance with rental payments. As rent prices
continue to rise, programs like this can be helpful to
individuals and families that just can't seem to make
ends meet.
Section 8 is a housing voucher program offered by the
U.S. federal government that provides “decent, safe
and sanitary” housing to eligible families and
individuals.
Administered by local Public Housing Agencies (PHA),
Section 8 receives federal funds from the U.S.
Department of Housing and Urban Development
(HUD). Metro Detroit (Wayne and Oakland County) is
made up of 37 Section 8 departments whose
responsibility is to distribute Section 8 funding.
Currently there is a greater demand than there are
suitable homes for Section 8 tenants. There are more
than 8,000 pre-approved families with housing
vouchers on a waiting list for Section 8 properties.
Approximately, 80% to 100% of the Tenant's rent is
paid by the government. This payment goes directly to
the owner's designated management company.
t's important to know that all Section 8 houses
Imust first be inspected by the Section 8
program to ensure the home meets federal
government criteria. This guarantees that the
homes are of high standard which is important to
the tenant as well as toAIPand its investors.
Under the Section 8 program, every year each
house is re-inspected by the Section 8 inspectors
to insure that the high standard of housing is
maintained. In order to renew and continue
funding, tenants are motivated to look after the
house as if it were their own in order to get another
year of vouchers.
8
Property
Management
AIP
Limited
Partnership
The Opportunity
fter extensive research and due diligence,
AAIP has identified and reserved a
remarkable portfolio of fully tenanted
income producing homes. These homes are being
purchased at well below their replacement costs
and are yielding net returns in excess of 13% .
The key points again:
 Homes from $45,000
 Already tenanted
 Yields of 13% plus
 Prices at below replacement cost
 High capital gains potential
 Newly refurbished
 High Quality homes meeting government
standards
 Turn-key, problem free investment
 Experienced management team
IP Limited Partnership contracts the best
Aand most professional property
management companies in all target
locations. Our Property Managers provide a
comprehensive management program with
turnkey rental services and management of
property maintenance on a 24/7 basis 365 days a
year. These experienced management
companies do everything that is required from
making sure the properties comply with all
relevant codes to filling leases and organising
maintenance
Each management company offers:
 Collection and management of rental
payments
 Advertising for new tenants
 Tenant screening
 Maintenance and call out services
 Online personal property management
accounts with investments being tracked in
real time
 Regular property inspection reports
 Property Security (the property is secure
when not tenanted)
 Dedicated first point of contact for landlords
 Support with potential exit strategies,
marketing properties that are to be sold
9
Investment Overview
AIP Limited Partnership
Offering Details
$ 3,400,000
$ 5,900,000
$ 2,500,000
3,400
100
$1,000/unit
3-5 years
8.0%
Number of LP Units offered
Total Equity Investment (LP Units - $US)
Approx Number of properties to acquire in portfolio
Approx Cost of properties to be acquired
Vendor Financed Mortgage (50% Loan to Value)
Preferred (Priority) Return to Limited Partners
Anticipated term of investment
Investment Price per Unit
Offering Details
IP LP's objective is to provide investors with
Aongoing cash flow from a portfolio of high
income-producing real estate located in
Detroit, Michigan where the housing market has
been particularly hard hit and median home prices
have fallen by more than 75% from their historic
highs.
To take advantage of this opportunity, AIP has
structured a Limited Partnership, (AIP LP) which
facilitates the acquisition of a portfolio of
approximately 100 single-family residential
properties located in the Metro Detroit area.
AIP LP's portfolio of selected properties is located
in well-established residential neighbourhoods.
There is a low cost of entry and strong cash flows
combined with good prospects for capital
appreciation suggesting significant returns to
investors.
There are 3,400 Units available for a total
investment offering of US$3,400,000.
Appreciation
Expectations
IP Limited Partners are entitled to receive a
Aminimum priority or Preferred Return of 8%
annually. However, based on recent
dynamics in the rental sector and shrinking
available inventory of homes, it is reasonable to
anticipate a more robust income stream and
subsequent capital gains.
This is not an offer or solicitation of an offer to purchase any securities. The material
contained in this document must be read in conjunction with the Confidential Offering
Memorandum in order to understand fully all the implications and risks of the securities
to which it relates and must not be relied upon to make an investment. Past
Performance is not indicative of future results.
10
How to Subscribe?
IP LP Units are denominated in U.S.
Acurrency with the rental income earned by
the portfolio paid quarterly in U.S. dollars to
unit holders. The minimum investment required is
US$10,000 with subsequent increments of
US$1,000.
SUBSCRIPTION PROCEDURE
AIP has prepared the necessary subscription
documentation in compliance with applicable
securities regulations. The documentation that
you must complete will depend on the jurisdiction
in which you are resident and the prospectus
exemption on which you are relying.
ALL PURCHASERS
1. Complete and execute all applicable lines
on pages 1, 2 and 3 of the Subscription
Agreement.
2. Provide a certified cheque, or bank draft or
wire transfer made payable to “AIP Limited
Partnership” for the Total Subscription
Price (as defined in the Subscription
Agreement) indicated on page 1 of the
SubscriptionAgreement.
3. Provide a separate cheque marked “VOID”
from the account to which distributions
should be credited.
OFFERING MEMORANDUM EXEMPTION
If relying on the “Offering Memorandum”
exemption, investors will need to complete and
execute Schedule D – Eligible Investor Status
Certificate and Exhibit A attached to the
SubscriptionAgreement.
MAILING/DELIVERYINSTRUCTIONS:
Please deliver all completed Subscription Forms
and payment to:
AIPLimited Partnership
PO Box 34569
Pemberton Plaza
North Vancouver, BC
V7P1T0
11
Contact Us
For more information about this investment, please contact us:
Vid Wadhwani
T. +1.604.729.7077
vid@aydonproperties.com
David B Jackson
T. +1.604.657.8613
dbj@aydonproperties.com
David C Carkeek
Dr. Daniel R. Gouws
T. +1.604.760.9212
T. +1.604.760.9212
dcc@aydonproperties.com
dgouws@aydonproperties.com
Allan M Goulding
Jadvinder Grewal
T. +1.604.729.8775
T. +1.604.729.8775
amg@aydonproperties.com
jad@aydonproperties.com
AIP General Partners Ltd.
500 - 900 West Hastings Street
Vancouver, BC, V6C 1E5
Canada
Telephone: +1 855 322 7771
eMail: info@aydonproperties.com
website: www.AydonProperties.com
Copyright © 2015 Aydon Income Properties, Inc.
AIP
Limited
Partnership
This Investment Highlights report is based upon information supplied by Aydon Income Properties solely for use by a limited number of qualified investors in
connection with the consideration of the purchase of units of Aydon Income Properties Limited Partnership (the “AIP LP”) on a “private placement” basis (the
“Investment”) and is confidential and is for the confidential use of only those persons to whom such information is delivered in connection with the Investment. This
information is intended as a summary of certain information contained in the AIP LP Confidential Offering Memorandum together with all attachments and/or
supplements thereto from time to time (the “OM”). Any potential investor in the Units should review the OM in its entirety prior to making any investment decision
with respect to the AIP LP. Neither this document, nor its delivery to any prospective investor, shall constitute an offer to sell or the solicitation of an offer to buy any
securities of the AIP LP. The material in this document must be read in conjunction with the Confidential Offering Memorandum in order to understand fully all the
implications and risks of the securities to which it relates and must not be relied upon to make an investment. Past Performance is not indicative of future results.
Please visit our website at www.AydonProperties.com
or call us at or email us at1-855-322-7771 info@aydonproperties.com
For More Information
Safe Harbour:
About
AIP General Partners Ltd.
IP General Partners Ltd. is a wholly owned
Asubsidiary of Aydon Income Properties Inc.
(”Aydon”).
Aydon is a real estate investment & development
company targeting under-valued income producing
properties in select areas of the United States and
Canada with the goal of securing high cash flow and
capital appreciation potential to maximize returns for
it's shareholders and investors.
The most important aspect
of rental property is the
property manager
500 - 900 West Hastings Street, Vancouver, B.C. V6C 1E5 Canada

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AIP Limited Partnership

  • 1. AIP General Partners Ltd Wholly owned subsidiary of Aydon Income Properties Inc. AIP LIMITED PARTNERSHIP Metro Detroit Real Estate Investment Opportunity INVESTMENT SUMMARY
  • 2. AIP Limited Partnership Content Who we are & What we do Page 3 Why Detroit? Page 4 Sample Properties Page 6 Housing Vouchers / Section 8 / Inspection Page 7 The Opportunity / Property Management Page 8 Investment Highlights / Appreciation Expectations Page 9 How to Subscribe Page 10 Contact Information Page 11 2Copyright © 2015 Aydon Income Properties, Inc.
  • 3. AIP Limited Partnership 3 Who we are and what we do Who we are What we do IP General Partners Ltd. is a wholly owned Asubsidiary of Aydon Income Properties Inc. (”Aydon”), a publicly listed company on the Canadian Securities Exchange (the “CSE”).Aydon is a real estate investment & development company targeting under-valued income producing properties in select areas of the United States and Canada with the goal of securing high cash flow and capital appreciation potential to maximize returns for its shareholders and investors. ydon has structured a Limited Partnership Ainvestment to give investors the opportunity to take advantage of the recovery currently underway in the United States after the financial crisis that led to a severe downturn in the residential housing market. The AIP Limited Partnership's ("AIP" or "AIP LP") primary investment strategy is to acquire quality real estate assets at prices well below replacement cost in carefully selected areas of Detroit, Michigan where there is a low cost of entry with strong cash flows and a high probability of increasing home values. AIP's aim is to capitalize on the real estate recovery by acquiring a large portfolio of single family homes in prime residential neighbourhoods of Metropolitan Detroit that can be turned around and made more profitable through rehabilitation and marketing programs designed to maximize occupancy and boost rents. AIP is raising up to USD$3.4 million in equity to acquire up to 100 residential properties in its portfolio. These homes will be fully renovated, tenanted and managed by a leading property management company located in the Metro Detroit area. We acquire under-valued properties well below replacement cost then renovate, upgrade, tenant, manage and maintain with the goal of maximizing cash flow and capital appreciation potential over the long term for our shareholders and investors. AIP General Partners Ltd.
  • 4. 4 Why Detroit? etroit is in recovery after suffering heavily in the Ddownturn when real estate prices dropped by more than 75%. This resulted in properties being valued at well below replacement cost, making the city a prime investment area that offers significant growth potential. Although prices have begun to recover, there are few other major cities where investors can still buy property at such discounted prices that are also backed by the US government rental programs. Strong Reasons to Invest in Real Estate in Detroit:  The basics · Detroit is the largest city in the state of Michigan and Greater Metro Detroit has a population of over 4 million (Source: U.S. Census Bureau). · The terms of the Detroit's bankruptcy plan includes $1.7 Billion to be spent demolishing abandoned buildings, improving public safety and upgrading basic services. · Detroit (and Windsor in Canada) has the busiest of all US-Canadian border crossings · US – Canada trade totals over $500 Billion per annum (more than $1 Billion a day). In 2014 work began on the construction of the US$ 2.1 Billion New International Trade Crossing between Detroit and Windsor · Today there are 85,000 employees in Downtown Detroit and by 2016 is expected to be 100,000. (Source: Downtown Detroit Partnership) · With increasing demands on residential accommodations, average rents are expected to climb by 17% over the next 3 years. (Source: LocalMarketMonitor.com).  Employment levels and job creation · The number of jobs in Metro Detroit has increased by 33.1% since March 2010. (Source: Simplyhired.com) · 146,420 were created in 2013 alone. (Source: Southeast Michigan Council of Governments) · University of Michigan economists George Fulton, Joan Crary and Donald Grimes predict another 130,000 will be added by the end of 2015. (Source: Research Seminar in Quantitative Economics Michigan forecast)  Population growth · Metro Detroit's population is expected to grow steadily from 2014 with the creation of many new jobs.  Housing supply and demand · Housing supply (inventory) in Detroit has dropped continuously since 2007, a drastic 84.39%. · 84,312 properties were on the market in August 2007; by March 2014 there were only 13,162. · Only 7,564 new residential building permits were issued in 2013. (Source: Southeast Michigan Council of Government)
  • 5. 5 Why Detroit Cont.? · The Marcus and Milichap Report says: "Construction of new apartments will likely be fuelled by tightened vacancy rates and soaring rents. When builders start to build again, it's a good sign that a housing market is well on the road to recovery.” · In Q4 2014, Detroit vacancy was the lowest year-end rate in 13 years, falling 30 basis points to 4.1%. (Source: Southeast Michigan Council of Government) · Founder of Data Driven Detroit, Kurt Metzger, added: "Demand is outpacing the supply of desirable places to live in Detroit. Prices are just getting to the point where it makes sense to break new construction."  Affordability of property · Property in Detroit is 20% undervalued. (Source: Trulia Bubble Watch Q1 2014), therefore making it some of the most affordable in the USA; a reason why local companies are investing heavily in Detroit. · The median sales price for single family homes in Detroit continues to strengthen, however it is still way below the 2005 average of $172,000. (Source: Trulia Bubble Watch Q1 2014).  Rental yields · Today there are 85,000 employees in Downtown Detroit and by 2016 is expected to be 100,000. (Source: Downtown Detroit Partnership) · With these increasing demands on residential accommodations in downtown Detroit and surrounding neighbourhoods, average rents are expected to climb by 14.6% by 2016. (Source: RentRange.com). Many are being priced out of the city center already. · Those moving to neighbourhoods close to the city center can rent a detached house for the same price as a small apartment in the downtown area. “Places such as East English Village, Warrendale and Morningside are all in high demand” according to RentJungle.com. · The increase in demand in these neighbourhoods has already had an effect on prices where rents are rising faster than in downtown Detroit. · One year performance of median rents for a 3 bedroom single family home to March 2014 (Source:RentRange.com) - East English Village - Increase = 6.43% - (now $745 - up $45) - Warrendale - Increase = 12.44% (now $750 - up $83) - Morningside - Increase = 14.61% (now $800 - up $102).  Current investment · 14 of the 2015 Fortune 500 companies have HQs in the greater Detroit area. · Quicken Loans (Dan Gilbert) has invested over $1.7 Billion in downtown Detroit. · Detroit's Riverfront Project has spent over $1 Billion in the past 5 years. (Source: Detroit River Front Conservancy) · The new Red Wings Arena, a $650 Million rebuild, will transform a 45-block area into an entertainment district, new retail plaza and residential and office space. Completion is scheduled for 2016. · The M1 Rail Network will spend $137 Million and will integrate a $500 Million rapid bus and rail system linking Detroit to its suburbs, as well as a high-speed passenger railway between Detroit and Chicago. Completion in 2016, · The new International Trade Crossing to Windsor, Canada will create over 43,000 jobs at a cost of $2.1 Billion · Ford's 2014 $6.3 Billion profit was one of the best years in its 110 year history and the company recently committed to investing $3.1 Billion on upgrading existing buildings and new facilities in Detroit and surrounding areas in Michigan.. · GM, made $5.61 Billion in 2014 excluding one-time charges and will invest $450 Million into their Hamtramck-Detroit plant. This will create 1,400 jobs. · Chrysler Fiat made an operating profit in 2014 of $4.1 Billion fueled by a very strong North American performance. Their Jeep plant is undergoing a $148 Million renovation and once completed will add 1,100 new jobs. MODEST HOME PRISES & RISING RENTS = OPPORTUNITY FOR STRONG CASH FLOW & CAPITAL GROWTH.
  • 6. A Sample of Properties 6 8826WestSevenMileRoad, Detroit,MI This well-maintained 3 bedroom bungalow property is located in one of Detroit's premier neighborhoods. The Bagley community boasts high home ownership rates, low vacancy, and some of the best schools & colleges in the City. On the same street, just a few hundred yards away is the campus of University of Detroit Jesuit High School, a private catholic school with one of the highest graduation rates in Michigan. The neighborhood is also home to the University of Detroit Mercy (known for its Law School) as well as Marygrove College. The layout features two bedrooms on the first level and large third bedroom on the second level. The home's taxes have been reduced, and is currently rented to a Section 8 tenant. The home sits on a large lot, with a land area size exceeding 5100 sq ft. 19736 Prest,Detroit,MI This 3 bedroom bungalow style home is located on Detroit's northwest side, just south of 8 Mile Rd, Detroit's border. The proximity to the northern suburbs means the home is close to some of the largest shopping centers in the State and a thriving small business community. The densely populated area has attracted major regional retailers to community. In 2013, Meijer Supermarket opened one of its largest stores in the area right on 8 Mile within Detroit's city limits. The home itself has been fully updated in order to meet Section 8 requirements and features a newly installed “3 dimensional” roof. Before the mortgage crisis of the late 2000's, the home sold for $125,000 in 2006 according to public records. Schools in the area include Bow Elementary and Michigan Technical Academy(anawardwinningpubliccharterschool). 18959 Lauder, Detroit,MI This beautiful 3 Bedroom all brick colonial was built during the post- WorldWar II housing boom (1948). During this period, Detroit's economy was booming and the property is a testament to the era's unique architectural style. The home is located on a well maintained, high occupancy block on Detroit's northwest side. Among the reasons this neighborhood has remained stable is the proximity to premier educational institutions. Nearby Detroit Renaissance High School is ranked top 3 citywide (academic performance, graduation rates) according to data released by Detroit Public Schools. Also, one of the top employers in Detroit is located a short drive away (Detroit Medical Center's flagship campus – Sinai Grace Hospital). The current tenant has been thoroughly screened and has recently opted for lease renewal.The 1600 sq ft home has hugecapitalgainpotentialandsold for $135,000in2009. 6824Warwick, Detroit,MI This full brick 1.5 story home includes over 1000 sq ft of living space, a large backyard and a detached 2 car garage. The property is located in the Warrendale community which derives its name from the neighborhood's main road: Warren Avenue. This road is lined with small businesses reflecting the diverse culture of its residents. Warrendale has become a melting pot, and borders the well-known suburb of Dearborn (home to Ford Motor Company's global headquarters). Detroit's main North-West artery, the Southfield Freeway (M-39), is located a short drive away providing quick access to amenities such as Fairlane Shopping Center. The current tenant holds a Section 8 housing voucher, with the majority of the rent paid by the local housing commission. The home sold for $110,000in2006 accordingtopublicrecords. Net Yield: 12.82% Selling Price: $47,000 Net Yield: 12.54% Selling Price: $46,000 Net Yield: 12.76% Selling Price: $51,000 Net Yield: 12.53% Selling Price: $45,000
  • 7. 7 Housing Vouchers Inspection DHC Housing Choice Voucher Program (Formally Section 8) AIP Limited Partnership his subsidy program is strictly monitored Tand has stringent qualification policy, substantially mitigating landlord risks. This policy has resulted in an extremely low percentage of evictions and higher quality of tenants. Every year the Housing and Urban Development (HUD) conduct inspections of all the Section 8 properties. Once they have passed the Inspection, guarantee vouchers are re-issued. AIP Properties are monitored closely through continued inspections by the management company under the supervision ofAIP. he Section 8 program is designed to assist Tfamilies and people that require financial assistance with rental payments. As rent prices continue to rise, programs like this can be helpful to individuals and families that just can't seem to make ends meet. Section 8 is a housing voucher program offered by the U.S. federal government that provides “decent, safe and sanitary” housing to eligible families and individuals. Administered by local Public Housing Agencies (PHA), Section 8 receives federal funds from the U.S. Department of Housing and Urban Development (HUD). Metro Detroit (Wayne and Oakland County) is made up of 37 Section 8 departments whose responsibility is to distribute Section 8 funding. Currently there is a greater demand than there are suitable homes for Section 8 tenants. There are more than 8,000 pre-approved families with housing vouchers on a waiting list for Section 8 properties. Approximately, 80% to 100% of the Tenant's rent is paid by the government. This payment goes directly to the owner's designated management company. t's important to know that all Section 8 houses Imust first be inspected by the Section 8 program to ensure the home meets federal government criteria. This guarantees that the homes are of high standard which is important to the tenant as well as toAIPand its investors. Under the Section 8 program, every year each house is re-inspected by the Section 8 inspectors to insure that the high standard of housing is maintained. In order to renew and continue funding, tenants are motivated to look after the house as if it were their own in order to get another year of vouchers.
  • 8. 8 Property Management AIP Limited Partnership The Opportunity fter extensive research and due diligence, AAIP has identified and reserved a remarkable portfolio of fully tenanted income producing homes. These homes are being purchased at well below their replacement costs and are yielding net returns in excess of 13% . The key points again:  Homes from $45,000  Already tenanted  Yields of 13% plus  Prices at below replacement cost  High capital gains potential  Newly refurbished  High Quality homes meeting government standards  Turn-key, problem free investment  Experienced management team IP Limited Partnership contracts the best Aand most professional property management companies in all target locations. Our Property Managers provide a comprehensive management program with turnkey rental services and management of property maintenance on a 24/7 basis 365 days a year. These experienced management companies do everything that is required from making sure the properties comply with all relevant codes to filling leases and organising maintenance Each management company offers:  Collection and management of rental payments  Advertising for new tenants  Tenant screening  Maintenance and call out services  Online personal property management accounts with investments being tracked in real time  Regular property inspection reports  Property Security (the property is secure when not tenanted)  Dedicated first point of contact for landlords  Support with potential exit strategies, marketing properties that are to be sold
  • 9. 9 Investment Overview AIP Limited Partnership Offering Details $ 3,400,000 $ 5,900,000 $ 2,500,000 3,400 100 $1,000/unit 3-5 years 8.0% Number of LP Units offered Total Equity Investment (LP Units - $US) Approx Number of properties to acquire in portfolio Approx Cost of properties to be acquired Vendor Financed Mortgage (50% Loan to Value) Preferred (Priority) Return to Limited Partners Anticipated term of investment Investment Price per Unit Offering Details IP LP's objective is to provide investors with Aongoing cash flow from a portfolio of high income-producing real estate located in Detroit, Michigan where the housing market has been particularly hard hit and median home prices have fallen by more than 75% from their historic highs. To take advantage of this opportunity, AIP has structured a Limited Partnership, (AIP LP) which facilitates the acquisition of a portfolio of approximately 100 single-family residential properties located in the Metro Detroit area. AIP LP's portfolio of selected properties is located in well-established residential neighbourhoods. There is a low cost of entry and strong cash flows combined with good prospects for capital appreciation suggesting significant returns to investors. There are 3,400 Units available for a total investment offering of US$3,400,000. Appreciation Expectations IP Limited Partners are entitled to receive a Aminimum priority or Preferred Return of 8% annually. However, based on recent dynamics in the rental sector and shrinking available inventory of homes, it is reasonable to anticipate a more robust income stream and subsequent capital gains. This is not an offer or solicitation of an offer to purchase any securities. The material contained in this document must be read in conjunction with the Confidential Offering Memorandum in order to understand fully all the implications and risks of the securities to which it relates and must not be relied upon to make an investment. Past Performance is not indicative of future results.
  • 10. 10 How to Subscribe? IP LP Units are denominated in U.S. Acurrency with the rental income earned by the portfolio paid quarterly in U.S. dollars to unit holders. The minimum investment required is US$10,000 with subsequent increments of US$1,000. SUBSCRIPTION PROCEDURE AIP has prepared the necessary subscription documentation in compliance with applicable securities regulations. The documentation that you must complete will depend on the jurisdiction in which you are resident and the prospectus exemption on which you are relying. ALL PURCHASERS 1. Complete and execute all applicable lines on pages 1, 2 and 3 of the Subscription Agreement. 2. Provide a certified cheque, or bank draft or wire transfer made payable to “AIP Limited Partnership” for the Total Subscription Price (as defined in the Subscription Agreement) indicated on page 1 of the SubscriptionAgreement. 3. Provide a separate cheque marked “VOID” from the account to which distributions should be credited. OFFERING MEMORANDUM EXEMPTION If relying on the “Offering Memorandum” exemption, investors will need to complete and execute Schedule D – Eligible Investor Status Certificate and Exhibit A attached to the SubscriptionAgreement. MAILING/DELIVERYINSTRUCTIONS: Please deliver all completed Subscription Forms and payment to: AIPLimited Partnership PO Box 34569 Pemberton Plaza North Vancouver, BC V7P1T0
  • 11. 11 Contact Us For more information about this investment, please contact us: Vid Wadhwani T. +1.604.729.7077 vid@aydonproperties.com David B Jackson T. +1.604.657.8613 dbj@aydonproperties.com David C Carkeek Dr. Daniel R. Gouws T. +1.604.760.9212 T. +1.604.760.9212 dcc@aydonproperties.com dgouws@aydonproperties.com Allan M Goulding Jadvinder Grewal T. +1.604.729.8775 T. +1.604.729.8775 amg@aydonproperties.com jad@aydonproperties.com AIP General Partners Ltd. 500 - 900 West Hastings Street Vancouver, BC, V6C 1E5 Canada Telephone: +1 855 322 7771 eMail: info@aydonproperties.com website: www.AydonProperties.com Copyright © 2015 Aydon Income Properties, Inc.
  • 12. AIP Limited Partnership This Investment Highlights report is based upon information supplied by Aydon Income Properties solely for use by a limited number of qualified investors in connection with the consideration of the purchase of units of Aydon Income Properties Limited Partnership (the “AIP LP”) on a “private placement” basis (the “Investment”) and is confidential and is for the confidential use of only those persons to whom such information is delivered in connection with the Investment. This information is intended as a summary of certain information contained in the AIP LP Confidential Offering Memorandum together with all attachments and/or supplements thereto from time to time (the “OM”). Any potential investor in the Units should review the OM in its entirety prior to making any investment decision with respect to the AIP LP. Neither this document, nor its delivery to any prospective investor, shall constitute an offer to sell or the solicitation of an offer to buy any securities of the AIP LP. The material in this document must be read in conjunction with the Confidential Offering Memorandum in order to understand fully all the implications and risks of the securities to which it relates and must not be relied upon to make an investment. Past Performance is not indicative of future results. Please visit our website at www.AydonProperties.com or call us at or email us at1-855-322-7771 info@aydonproperties.com For More Information Safe Harbour: About AIP General Partners Ltd. IP General Partners Ltd. is a wholly owned Asubsidiary of Aydon Income Properties Inc. (”Aydon”). Aydon is a real estate investment & development company targeting under-valued income producing properties in select areas of the United States and Canada with the goal of securing high cash flow and capital appreciation potential to maximize returns for it's shareholders and investors. The most important aspect of rental property is the property manager 500 - 900 West Hastings Street, Vancouver, B.C. V6C 1E5 Canada