Simple Business Plan - Paradise Valley Rehab

PARADISE VALLEY REHAB, INC.
BUSINESS PLAN
Paradise Valley Rehab, Inc.
Contact Person:
Daniel L. Case Sr.

480.612.4297
Dan@VanguardREIT.com
March 6, 2015
Paradise Valley Rehab, Inc. Business Plan Page 1

Table of Contents
Statement of Confidentiality & Non-Disclosure

All rights reserved. ALL OFFENDERS WILL AUTOMATICALLY BE SUED IN A COURT OF LAW.
Disclosure Statement....................................................................................................................................................6
Executive Summary......................................................................................................................................................6
Structure and Business Summary...............................................................................................................................6
Products and Services.................................................................................................................................................7
The Market..................................................................................................................................................................8
Competition.................................................................................................................................................................9
Operations.................................................................................................................................................................14
Management Team....................................................................................................................................................14
Risk/Opportunity.......................................................................................................................................................15
Financial Summary...................................................................................................................................................15
Capital Requirements................................................................................................................................................16
1.0 Business Description.............................................................................................................................................16

1.1 Industry Overview..............................................................................................................................................17
1.2 Company Description.........................................................................................................................................18
1.3 History and Current Status..................................................................................................................................22
1.4 Goals and Objectives..........................................................................................................................................23
1.5 Critical Success Factors......................................................................................................................................23
1.6 Company Ownership..........................................................................................................................................24
1.7 Exit Strategy........................................................................................................................................................25
2.0 Products and Services...........................................................................................................................................26

2.1 Service Description.............................................................................................................................................26
2.2 Unique Features..................................................................................................................................................31
2.3 Production...........................................................................................................................................................32
2.4 New and Follow-On Products and Services.......................................................................................................33
3.0 The Market............................................................................................................................................................33

3.1 Industry Analysis................................................................................................................................................33
3.2 Market Analysis..................................................................................................................................................37
3.3 Competitor Analysis...........................................................................................................................................43
3.4 Barriers to Market Entry.....................................................................................................................................58
4.0 Marketing Strategies and Sales...........................................................................................................................59

4.1 Introduction.........................................................................................................................................................59
4.2 Market Segmentation Strategy............................................................................................................................59
4.3 Targeting Strategy...............................................................................................................................................60
4.4 Positioning Strategy............................................................................................................................................61
4.5 Marketing Strategy..............................................................................................................................................61
4.6 Website Marketing Strategy...............................................................................................................................62
4.7 Pricing Strategy...................................................................................................................................................63
4.8 Distribution Channels.........................................................................................................................................63
4.9 Promotion and Advertising Strategy...................................................................................................................64
4.10 Sales Strategy....................................................................................................................................................64
4.11 Sales Forecast....................................................................................................................................................66
5.0 Management..........................................................................................................................................................67
5.1 Company Organization.......................................................................................................................................67

5.2 Management Team..............................................................................................................................................68
5.3 Management Structure and Style........................................................................................................................71
5.4 Ownership...........................................................................................................................................................73
5.5 Professional and Advisory Support....................................................................................................................73
5.6 Board of Directors...............................................................................................................................................73
5.6.1 Paradise Valley Rehab, Inc.'s Board of Directors.....................................................................................73
5.6.2 Casa Que Canta, LLC's and PVR Rehab Management Services, LLC's Board of Directors..................76
6.0 Operations.............................................................................................................................................................82
6.1 Paradise Valley Rehab, Inc.’s Operations...........................................................................................................82
6.1.1 Casa Que Canta, LLC's Operations...........................................................................................................82
6.1.2 PVR Rehab Management Services, LLC's Operations.............................................................................83
6.2 Operations Strategy.............................................................................................................................................83
6.2.1 Paradise Valley Rehab, Inc.'s Operations Strategy...................................................................................83
6.2.2 Casa Que Canta, LLC's Operation Strategy..............................................................................................86
6.2.3 PVR Rehab Management Services, LLC's Operating Strategy................................................................87
6.3 Location..............................................................................................................................................................88
6.3.1 Paradise Valley Rehab, Inc.'s Location.....................................................................................................88
6.3.2 Casa Que Canta, LLC's Location..............................................................................................................88
6.3.3 PVR Rehab Management Services, LLC's Location................................................................................88
6.4 Personnel.............................................................................................................................................................89
6.4.1 Paradise Valley Rehab, Inc.'s Personnel...................................................................................................89
6.4.2 Casa Que Canta, LLC's and PVR Rehab Management Services, LLC's Personnel.................................89
6.5 Operations Expenses...........................................................................................................................................91
6.6 Legal Environment..............................................................................................................................................95
6.6.1 Paradise Valley Rehab, Inc.'s Legal Environment....................................................................................95
6.6.2 Casa Que Canta, LLC's Legal Environment.............................................................................................95
6.7 Credit Policies.....................................................................................................................................................96
6.7.1 Accounts Receivable.................................................................................................................................96
6.7.2 Accounts Payable......................................................................................................................................96
7.0 Financials...............................................................................................................................................................96
7.1 Start-up Funds.....................................................................................................................................................40
7.2 Financial History and Analysis (current businesses only)..................................................................................40
7.3 Current Financial Position (current, takeover or franchise businesses only)......................................................40
7.4 Operating Forecast..............................................................................................................................................41
7.5 Break-Even Analysis..........................................................................................................................................41
7.6 Balance Sheet......................................................................................................................................................42
7.7 Income Statement................................................................................................................................................42
7.8 Cash Flow...........................................................................................................................................................42
8.0 Funding Request...................................................................................................................................................43

8.1 Request................................................................................................................................................................43
8.2 Capital Requirements..........................................................................................................................................43
8.3 Risk/Opportunity.................................................................................................................................................43
8.4 Valuation of Business.........................................................................................................................................44
8.5 Exit Strategy........................................................................................................................................................44
9.0 Refining the Plan...................................................................................................................................................45

9.1 For Raising Capital.............................................................................................................................................45
9.2 Refine According to Type of Business...............................................................................................................45
10.0 Appendix..............................................................................................................................................................47

*Note: Table of Contents page numbers, pagination and graph placements will be updated once
all plan parts are complete.

Statement of Confidentiality and Non-Disclosure
This document contains proprietary and confidential information. All data submitted to any
receiving party is provided in reliance upon its consent not to use or disclose any information
All rights reserved. ALL OFFENDERS WILL AUTOMATICALLY BE SUED IN A COURT OF LAW.
contained herein except in the context of its business dealings with Paradise Valley Rehab, Inc.
The recipient of this document agrees to inform its present and future employees and partners
who view or have access to the document's content of its confidential nature.
The recipient agrees to instruct each employee that they must not disclose any information
concerning this document to others except to the extent that such matters are generally known to,
and are available for use by, the public. The recipient also agrees not to duplicate or distribute or
permit others to duplicate or distribute any material contained herein without Paradise Valley
Rehab, Inc.'s express written consent.
Paradise Valley Rehab, Inc. retains all title, ownership and intellectual property rights to the
material and trademarks contained herein, including all supporting documentation, files,
marketing material, and multimedia.
BY ACCEPTANCE OF THIS DOCUMENT, THE RECIPIENT AGREES TO BE BOUND

BY THE AFOREMENTIONED STATEMENT.

Disclosure Statement
Paradise Valley Rehab, Inc. discloses that the property, licensing, contracts, corporations,
staffing, financing, infrastructure and acquisition of property and any and all other
representations in this Business Plan shall be in place on or before the close of escrow or
thereafter.
Executive Summary
Structure and Business Summary
Paradise Valley Rehab, Inc. (“PVR”) (to be formed) a Single Purpose Entity is currently in
contract to acquire Casa Que Canta, LLC (“Casa Que Canta”) from Michael Zipprich
(“Zipprich”) under the terms and condition set forth in the lease option to purchase (.
Casa Que Canta, is a single asset Arizona Limited Liability Company that owns the property
commonly known as 6240 E. Cholla Lane, Paradise Valley Arizona 85253 (the “Property”).
Within the proposed transaction, Zipprich will cause the Property to be converted to a turnkey,
furnished, licensed, ten bed, inpatient, ultra-luxury drug and alcohol detox and residential
treatment rehabilitation center, aka Camelback Mountain Rehab and/or Paradise Valley Rehab
(“Camelback”). PVR will provide the expertise, staffing, policies and procedures required to
obtain the proper state and local licensing. Additionally, PVR shall provide all of the sales,
marketing, client services, utilization review, medical record charting, and supportive services
necessary to administrate a viable and profitable rehabilitation program at the Property.
Products and Services
The Camelback facility provides individuals suffering from substance abuse a unique, safe and
luxuriously comfortable facility where they can be treated for their drug and alcohol addictions
in a non-invasive and non-judgmental environment. All recovery methods use evidence-based
approaches, utilizing clinical and character-strengthening methodology with a focus on
individual growth, individually tailored to each client by a qualified and licensed staff member.
Small group interaction and single occupancy rooms provide a subtle yet non-intrusive process
of re-socialization. Clients are provided with treatment for their addiction and behavioral
problems, while developing the coping and decision-making skills necessary to maintain sobriety
and the opportunity to rediscover their life purpose, and their value to themselves and their
families.
Two of the most validated methods that have proven effective in the treatment of substance
abuse and addiction are pharmacotherapy (medical treatment) and cognitive behavioral therapy
(psychological therapy). These are both considered evidence-based treatment interventions,
which have been thoroughly studied and proven to work for successful treatment of addiction by

the National Institute of Drug Abuse (NIDA). Accordingly, these are the methods that are
utilized when treating clients at Camelback facility for drug and alcohol addiction.
Pharmacotherapy, or medical assisted therapy, is an industry accepted protocol and available

treatment methodology that may be indicated for some clients, which use is largely determined
based upon the results from a comprehensive assessment protocol that takes place during the
admission process. During the intake process, clients that exhibit or identify withdrawal
symptoms or report recent drug and/or alcohol usage or could otherwise benefit from
pharmacotherapy are immediately seen by the Camelback physician or registered nurse, who
perform a medical evaluation of the client. If indicated, the physician will develop a prescription
regimen and detox plan, with the overarching goal of achieving abstinence, while ensuring that
the health, safety and to some degree the comfort of the client is maintained at all times. The
physician oversees the detox protocol for clients who have been prescribed withdrawal-related
medications and provides detailed instructions to counseling and support staff on the medical
status of the clients, including medications prescribed, dosing requirements, checking of vital
signs, symptom awareness and/or any warning signs that staff should be watchful for cases at
risk of severe withdrawal and potential hospitalization. Depending on the existing physical
condition of the patient some clients will be candidates for the more aggressive pharmacotherapy
choices such as Suboxone ®, Subutex ®, or Bunavail ®, which are most commonly prescribed
for the maintenance treatment of opioid dependence.
Most often, pharmacotherapy is used for alcohol and benzodiazepines and opiate addictions,
where the physical withdrawal symptoms can be most serious and even life-threatening. The
withdrawal from the chronic use of alcohol and benzodiazepines is generally considered the most
serious and is the leading cause of withdrawal-related fatalities in the U.S. While deaths are rare,
there are other withdrawal symptoms that can be dangerous, including placing these individuals
at higher risk for seizures or entering into a coma. There can be severe psychological reactions,
as well, ranging from bouts of hysteria to periods of severe depression and suicide ideation.
Fortunately, pharmacotherapy has evolved within the industry to become a safe and reliable
intervention for the effective management of withdrawal symptoms. Further, the Camelback
program has a medical director, who holds a license with Arizona Medical Board this type of
therapy involves administering medication or drugs to help manage or alleviate withdrawal
symptoms. The certified medical doctor determines individual treatment plans. The certified
medical specialist monitors the patient for proper function and safety during treatment.
The behavioral therapy approach includes treatment methods such as positive cognitive
behavioral therapy, the matrix model, twelve step programs and family therapy treatments, all of
which have been proven successful with multiple types of addiction and various levels of
substance abuse. The proper implementation of behavioral therapies is one of the most
important support aspects of our program and is, therefore, a major emphasis in individual client
treatment.
Only those group activities that feature positive social interaction and have an uplifting result are
scheduled into our carefully supervised facility. These, often new, adventures may include
introductions to golf and equine challenges, etc. These activities will instill the value of different,
achievable and wholesome recreation.

Both methods of treatment are developed after the initial client analysis and interview by our
highly qualified and experienced medical personnel. Treatment plans are individually tailored to
the client’s needs and are adjusted as necessary while treatment progresses. The ultimate
objective is to constantly strive to provide the highest level of physical and emotional drug and
alcohol dependency cure without recidivism.
The Market
A business and its success are directly dependent upon its customer base.
All businesses are faced with the challenge of competing for clients in a competitive market.
There are often significant challenges for any business to attract and acquire customers, attain a
high profile and business-image within their respective industry, and retaining customer and
gaining market share. However, such obstacles are virtually non-existent in the drug and alcohol
treatment industry. In 2010, a ground-breaking study done by the National Center on Addiction
and Substance Abuse at Columbia University, determined the number of people in the United
States who were medically classified as suffering from an addiction disease was in excess of 40
million. Further, the same study reported an additional 80 million people that were classified as
“risky” substance users and engage in drug-related behavior or drug use that threatens their
health or safety. These two categories of drug users represent the customer pool from which
PVR will attract its potential clientele. Within the treatment industry a potential client is any
individual that has a desire or a need for treatment and is capable of traveling, covering the cost
through personal assets or insurance coverage and attending the treatment program. Therefore,
our target market within the USA consists of roughly 120 million possible clients.
Given the large pool of potential

clientele, PVR’s upscale
accommodations in an ideal location the
program will easily maintain maximum
occupancy at all times. This is a
reliable estimate for PVR in that higher-
end rehab programs typically have long
waiting lists for admission and run at or
near 100% utilization levels all year
round. The typical length of treatment
episode can be reliably predicted to last
2 months. However, the length of
treatment for some individuals will only be
for a single month, while others will stay in treatment at PVR for up to 3 months.
It is fair to assume that the average length of stay for clients at PVR will be for 2 months, with an
equal number of clients respectively enrolled at one and three month intervals.

Accordingly, the annual estimated number of clients required to maintain full occupancy of 10
clients per month for 12 months is 120 clients or 120 patient months:
(12 months annually / 2 month LT treatment) x 6 clients = 36 Clients = 48 patient months
(12 months annually / 1 month ST treatment) x 4 clients = 48 Clients = 48 patient months
(12 months annually / 3 month LT treatment) x 2 clients = 8 Clients = 24 patient months
*92 Clients (combined long term and short term) = 120 Total Annual Patient Months
According to SAMHSA, for long-term inpatient treatment within the industry, the national
medium length of stay is 75 days for treatment of alcohol disorders, and close to 90 days for
both stimulant and opiate abuse.
In effect, for otherwise capable treatment providers, the pool of potential clients is so massive
that there are no significant barriers preventing customer acquisition and there is little, if any
competition from private rehab firms within the target area. Viewed another way, out of a
potential pool of 120 million clients, only 92 must be admitted into the PVR facility for the entire
year, or less than .00000076 percent of the market. As noted earlier, nationwide surveys within
the industry reveal that residential drug treatment centers almost always operate near full
occupancy. Further, for Arizona, the survey data indicates that the patient/facility ratio is the
third highest in the nation. Arizona overwhelming lacks the needed programs and bed capacity
to service the staggering number of drug-involved consumers who need and want the assistance.
It is within this current business environment that the principals who comprise the executive
team of PVR derives its overarching goal to rapidly expand the number of treatment centers,
while striving to increase the quality of services provided therein.
Competition
There are currently no other luxury inpatient drug and alcohol treatment centers located in
Paradise Valley, Arizona. Although there are numerous government-funded substance use
disorder treatment facilities in the greater Phoenix metropolitan area, these programs typically
serve low-income residents and provide the “cold-turkey” method for detox, or low intensity
treatment services and sober living environments. There exists one upscale program located in
Scottsdale called the Sundance Center, which consists of two facilities, as distinguished by
gender. From our preliminary research, it is apparent that their accommodations and services are
superior to their government-funded counterparts, but neither of the facilities have the aesthetic
and visual appeal of the PVR facility, nor do they purportedly provide an equivalent cadre of
services.
For comparison purposes, most of the high end or “elite” residential treatment facilities are
primarily located in select coastal communities in California and in affluent area along the east
coast. The clients that seek admission into elite programs may be attracted to those located in
affluent or tourist destinations (which Paradise Valley/Scottsdale area easily qualifies) their
ultimate choice is usually determined based upon bed availability or the size of the waiting list.
The demand for upscale programs and facilities located in appealing destinations has clearly
outpaced available supply and the wait list for these programs is proportionately higher than any
other programs in the industry.
The industry standard for fees associated with in-patient elite programs range from $40,000 to
$90,000 per month. For PVR, we have assigned a fee structure that begins at approximately
$50,000 per month for the first year and then escalates to $60,000 per month thereafter.
In assigning a fee schedule for PVR, the principals utilized a research-based approach in which
data was derived or solicited from multiple sources and that ultimately resulted in establishing a
rate structure that is reliable and otherwise supported by the data. Among the sources and
activities that were utilized in this process, included:
Thorough analysis of the marketplace
Comparative analysis of the facility accommodations and its geographic location, as interfaced
with known consumer preferences and competition
Comparative assessment of the services and unique program features that PVR provides
Given our thorough analysis of the marketplace; an evaluation of the facility, its location and
consumer preferences; the marketability and attractiveness of our services historical data
derived from our existing projects; fee-related data and projections as supplied by our utilization
review and billing company for insurance, and the substantial sum we have designated for
marketing purposes, the company principals are confident that our research and data fully
support the fee structure. a

MAIN COMPETITORS
COMPETITOR LOCATION LUXURY RATING PRICE PER ANYTHING RELEVANT

NAME MONTH
Alta Mira Sausalito, Overall: $50,000/35 days Uses the “brain healthy
California *Four Stars Double curriculum” method:
Occupancy Biological, Spiritual, Social,
Accommodations: Room and Psychological.
*Four Stars
$60,000 Integrated holistic services
Treatment: Semi-Private and structured clinical
*Four Stars Room programs.
Food: $70,000 Four stages of treatment:

*Five Stars Private Room Stage One - Getting Stable,
Stage Two – Healing Myself,
30-90 day Stage Three – Dealing with
*thefix.com programs - Others, Stage Four –
lifetime after Recovery for Life.
care.
Detox, gourmet cuisine,
psychological testing,
individual therapy, massage,
personal training as well as
family and friends as a
support base.
AToN Center San Diego, Overall: $45,000/month Holistic approach to

California *Four Stars treatment.
($75,000 if
Accommodations: using insurance, Cognitive behavioral
*Four Stars plus $200/day emphasis to all group and
for detox) individual sessions and family
Treatment: therapy participation is
*Four Stars encouraged.
Food: Biofeedback, EMDR, and

*Four Stars trauma-informed counseling,
as well as recreational and
exposure sessions are
*thefix.com supplements to the core
curriculum.
Offsite meetings include

SMART Recovery® and 12
Step Groups.
Small group of clients for a

more personalized treatment
plan per client.

NAME MONTH
Cliffside Malibu, Overall: $53,000 Spirituality is generally

Malibu California *Four Star Semi-Private emphasized. Uses a holistic
Room approach. 12-step- and
Accommodations: therapy-based recovery
*Five Star $68,000 regimen tailored to the
Private Room individual.
Treatment:
*Four Stars Client is responsible for
paying both the medical
Food: doctor and/or psychiatrist at
*Four Stars their normal rates of $1500
each, plus any and all detox
medication and/or prescription
*thefix.com medication needed, while at
Cliffside Malibu.
Treatment to obtain the signed

certificate of completion can
and often does take more than
ninety days.
Passages Malibu, Overall: $80,000/month Not a 12-step facility and it

Malibu California *Two Star for Malibu rejects the "disease concept"
of addiction entirely.
Accommodations: $50,000/month
*Five Star for Ventura Treatment team includes a
primary therapist, a family
Treatment: therapist, a "life purpose"
*One Star coach, hypnotherapists,
nutritionists, spiritualists,
Food: masseuses, physical trainers,
*Five Stars acupuncturists and a medical
doctor who makes occasional
visits.
*thefix.com
One of the costliest (and most
controversial) rehabs in the
country.
A third outpost expected to

open in the Hamptons this
year.

NAME MONTH
Promises Malibu, Overall: $55,000 12 step program/holistic

Malibu California *Four Stars Shared bedroom approach.
and bathroom
Accommodations:
*Five Stars $75,000 Full payment is required up
Private bedroom front before filing for client
Treatment: and shared insurance reimbursement.
*Four Stars bathroom
The facility actually
Food: $90,000
established the “Malibu
*Five Stars Private bedroom
and bathroom Model,” a treatment model
that’s since been adopted by a
*thefix.com host of rehabs across the
country.
Locations in Malibu, CA, Los

Angeles, CA, and Austin, TX.
Sierra Tucson Tucson, Overall: $47,680 and up Holistic 12-step program.

Arizona *Four Stars depending on
treatment Focuses on addiction and core
Accommodations: needed reasons addicts use. Uses
*Four Stars mainly Native American
All rooms teachings.
Treatment: double
*Four Stars occupancy. Multidisciplinary treatment
teams consist of full-time
Food: medical and psychiatric staff,
*Four Stars plus pain specialists, certified
addiction specialists,
psychologists, master’s-level
*thefix.com therapists, eating disorder
specialists, registered
dietitians, therapeutic activity
and fitness specialists,
exercise physiologists, and
licensed integrative therapy
practitioners.
Facility features myriad

medical and recreational
resources, including equine-
assisted therapy facilities, a
challenge course, climbing
wall, fitness center, walking

trails and a labyrinth.
Residents of all kinds are

housed together, regardless of
their afflictions, but wear
colored nametags identifying
their particular condition.

NAME MONTH
Summit Malibu Malibu, Overall: $48,000 Not a 12 step program and

California *Four Stars 28 days religion is de-emphasized.
shared room
Accommodations: Very personalized program
*Four Stars $58,000 per client.
private room
Treatment:
*Four Stars
Food:
*Five Stars
*thefix.com
The Hills Los Angeles, Overall: $40,000/$50,000 Rehab facility to the stars.
California *Three Stars
Offers sober companions:
Accommodations: Sober companions are trained
*Four Stars professionals who can take
each step of reintegration with
Treatment: the client. They can
*Three Stars accompany the client at home,
to work, or at stressful and
Food: triggering times.
*Three Stars
Fitness Activities include:
Nature Walks, Hiking, Yoga,
*thefix.com Pilates, Snowboarding,
Surfing, Aquatic Therapy, and
Snorkeling.
Couples treatment offered.

Operations
The operational structure of Casa Que Canta’ Camelback facility is designed to segregate the
revenues between qualifying REIT income and non-qualifying REIT income under the IRS REIT
tax code. The Management Agreement with Catalyst allocates income received for products and
services rendered which are determined to be exclusionary income under the IRS REIT tax code.
Therefore, Catalyst provides, including but not limited to, staffing requirements, insurance,
transportation, consulting, client services, meals, supplies, etc… as deemed necessary to provide
the highest level of care and services. Additionally, Casa Que Canta is able to maintain a quality
staff through attractive pay and benefit packages which are above the local industry averages for
each position.
We utilize local farmers markets, grocery stores, department stores and other small businesses to
provide our clients with fresh and wholesome nutritional support as well as general medical
supplies, household needs, cleaning supplies, hygiene, sundries, reading materials and other
miscellaneous needs. For office supplies and equipment, we competitively price shop our needs
on a case by case basis and use a combination of local and online suppliers. Our medication
supplier is Snyder Health Services.
The LLC’s and facilities require numerous insurance policies. The providers of the required
insurance policies are as follows:
 Property and casualty insurance for the real estate, and auto casualty and liability is
underwritten by Chubb Insurance Group;
 Business liability as well as errors and omissions insurance is underwritten by ING;
 Staff medical benefits are provided by Blue Cross Blue Shield of Arizona;
 Worker’s Compensation through Unknown;
 Malpractice Insurance through Unknown;
 401k through PVR 500 Index Fund.
Management Team
The combined management teams of PVR, Casa Que Canta and Catalyst represent a diverse
background spanning more than 265 years combined total experience in medical, behavioral
health, substance abuse, drug and alcohol rehabilitation management, mergers and acquisitions,
complex structured financial transactions, residential and commercial real estate, investment
hedging, real estate and business law.

The LLC’s and the day to day operations of the Camelback facility are managed by:
 Daniel L. Case, Sr. – Chief Executive Officer;
 Timothy P. Chapman, M.A., Msc. D. – President and Executive Director;
 Christopher Geiger - Chief Operating Officer;
 Lawrence Robert Reader, Jr. M.D. - Vice President and Medical Director;
 Steven R. Brown, L.C.S.W. - Clinical Director;
 Richard A. Block – Compliance, Auditing & Accountability Advisor;
 Diana M. Case - Comptroller and Utilization Review Director
The aforementioned management personnel comprise a cohesive team that assures the LLC’s
ability to surpass the goals set forth in this business plan. (See: Bios)
Risk/Opportunity
Risk is a part of any business, including the medical service industry. These risks include
litigation, employee misconduct, lack of sales, theft and numerous others. However, we have
mitigated these risks by incorporating premium insurance policies, high employment
qualifications, contracted client placement agreements, video surveillance and comprehensive
stringent policies and procedures.
Financial Summary
Description Year 1 Year 2 Year 3 Year 4 Year 5

Revenue 5,043,557 8,801,250
Operating Costs 1,720,038 2,131,408

Mortgage Payments 350,000 3,424,000
Sales & Marketing 755,423 1,020,581
Indirect Expenses 131,607 158,441
Total Expenses 2,957,068 6,735,431

Net Income Before Tax 2,413,724 2,066,611

As of 10/02/13 Year 1 Year 2 Year 3 Year 4 Year 5
Assets 20,000,000 29,000,000 30,200,000 30,800,600 31,604,620

Liabilities 11,000,000 11,000,000 11,000,000 11,000,000 11,000,000
Equity 9,000,000 18,000,000 19,200,000 19,800,600 20,604,620
Capital Requirements
Source of Funds
Source Amount Percentage

Owners’ contribution 9,000,000 45
Term loans 11,000,000 55
New equity financing 0 0
Total 20,000,000 100
1.0 Business Description
Paradise Valley Rehab, Inc. is a Maryland hybrid real estate investment trust whose principal
address is 4101 East Louisiana Avenue, Suite 300, Denver Colorado 80246. PVR is a newly
formed corporation. PVR is currently under contract to acquire Casa Que Canta, LLC and PVR
Rehab Management Services, LLC, which will be PVR’s first holdings. PVR has a contract with
PVR Realty Advisors, LLC to operate the day to day business of the REIT. PVR REIT, when
fully vested, will have equity over $500 million and debt of $500 million, providing total
holdings of over $1 billion dollars. PVR is targeting holdings that produce a minimum of a 7%
cap rate. PVR, when fully vested, will have a mix of holdings. PVR intends to invest $300
million in rehabs, assisted living and other types of group homes, $200 million in traditional
commercial real estate holdings and $500 million in mortgage investments such as first
mortgages and mezzanine loans. Considering PVR will typically maintain a 50% equity position
in all of its holdings, PVR will enjoy the ability to exit any of its holdings in the event there are
any changes in the REIT tax code or a reduction in real estate values.

Casa Que Canta, LLC
Casa Que Canta, LLC is an Arizona Limited Liability Company whose principal office is at 6240
E Cholla Lane, Paradise Valley Arizona 85253. Casa Que Canta is a licensed luxury inpatient
drug and alcohol rehabilitation facility. Casa Que Canta is fully functioning, cash-flowing and
profitable. Casa Que Canta has contracted client placement agreements in place for the next 24
months that guarantees a gross income of $3,408,000 with a net operating income of $1.6 million
for the first year and a gross income of $4,608,000 with a net operating income of $2.06 million
for the second year. Luxury adult rehabs enjoy a near 100% occupancy rate with a waiting list of
over 28 days. Casa Que Canta’ Camelback Mountain Rehab’s services are priced below the
industry average.
According to a study done by the National Center on Addiction and Substance Abuse at
Columbia University completed in 2010, it was determined that there are over 120 million
potential clients of which we only need to serve an estimated 56 clients per year. The drug and
alcohol rehabilitation industry will only continue to grow. Recent Department of Justice
mandate changes recommend drug and alcohol rehabilitation over incarceration. This will create
an even greater need and demand for drug and alcohol rehabilitation services. We are already
preparing to be at the forefront of this massive new demand for government mandated space and
services.
PVR Rehab Management Services, LLC
PVR Rehab Management Services, LLC is an Arizona Limited Liability Company. PVR is a
newly formed company. PVR is the contracted rehabilitation management and client services
provider for and the entire daily operational requirement of Casa Que Canta’ Camelback
Mountain Rehab Paradise Valley. PVR is fully functioning, staffed and operational. PVR has a
gross income of $1,508,000 annually for the first two years. The Rehab Management and Client
Services Agreement and a contracted rate both serve to minimize the retained profits by PVR.
Any net operating income retained by PVR is considered as non-qualified REIT income under
the IRS REIT tax code. The agreement between Casa Que Canta and PVR is designed to
allocate all profit to Casa Que Canta for further disbursement to PVR REIT for income tax
purposes. The agreement between Casa Que Canta and PVR provides for a cost of living
increase of 3% annually beginning year 3 and beyond.
1.1 Industry Overview
The market for drug and alcohol treatment is enormous. There are tens of millions of people
currently suffering from addiction and substance abuse who are in dire need of treatment. In
2011, The National Center of Addiction and Substance Abuse released a study estimating that
the number of people afflicted with medically classified addiction to be in excess of 40 million.
The same study estimated the total number of problem users to be over 80 million. Less than
2.5% of the 40 million received any form of substance abuse treatment that same year. Rarely
will demand not be met, in a saturated and highly profit market, but the case is just that in the

substance abuse treatment arena. For the foreseeable future, there will be little to no competition
for the number of addicts seeking treatment far outweighs the full capacity of all inpatient
facilities, including private and government sectors.
1.2 Company Description
Paradise Valley Rehab, Inc., a Maryland hybrid real estate investment trust, is incorporated as a
C- Corp. PVR is a new REIT, focusing on acquiring cash-flowing, operational, turnkey assets
that produce cap rates in excess of 7%. PVR and its holdings are designed, or will be
determined, to qualify under the IRS REIT tax code. This allows PVR’s stockholders to enjoy
dividends without the burden of corporate income tax. PVR, when fully vested, will have a
50/50 mix of debt and equity. This will ensure the sustainability of our portfolio. PVR’s
portfolio, when fully vested, will be comprised of 50% real estate equity and 50% real estate
related mortgage investments. The real estate equity holdings will total $500 million, of which it
is our intention to invest $300 million in cash-flowing, turnkey, profitable drug and alcohol
rehabs, assisted living and other types of group homes. These types of group homes typically
produce in excess of a 10% cap rate. The remaining $200 million in real estate equity will be
invested in traditional commercial real estate such as office buildings, apartments, self-storage,
strip malls and other commercial real estate. The real estate mortgage holdings will total $500
million. It is our intention to invest these monies in commercial mezzanine and first mortgage
origination, as well as the acquisition of performing and non-performing single mortgages and
mortgage pools, all of which shall have a maximum loan to value of 70% and an interest rate in
excess of 8%. All of PVR’s holdings will be within the USA.
PVR’s main office is located at 4101 East Louisiana Avenue, Suite 300, Denver CO 80246.
Richard A. Block heads the Denver office. The main office in Denver handles all of the REIT’s
legal, accounting, records, investor relations and all day to day functions of the REIT, including
the real estate mortgage investment portfolio utilization. The commercial real estate equity
portfolio is managed in the Mesa office located at 1116 East Kramer Circle, Mesa AZ 85203.
Daniel L. Case, Sr. and George M. Papa collaboratively head the Mesa office. Both offices are
operated by PVR Realty Advisors, LLC under the terms and conditions set forth in the REIT
Management Agreement. This agreement provides for the REIT’s management at a fixed cost.
PVR operates in adherence to the IRS REIT tax code with a Maryland jurisdiction. Maryland
has some of the most advantageous REIT provisions. PVR, as with all REITs, has to maintain its
qualifying REIT status. PVR accomplishes this with the expertise of Richard A. Block and our
additional directors.
Casa Que Canta, LLC
Casa Que Canta is an Arizona Limited Liability Corporation. Casa Que Canta is a newly formed
corporation which owns a licensed luxury drug and alcohol rehab located at 6240 E Cholla Lane,
Paradise Valley Arizona 85253. Casa Que Canta is a fully functional, operational, turnkey, cash-

flowing and profitable 19,000+ square foot licensed luxury 10-bed adult drug and alcohol rehab
facility. Casa Que Canta’ contracted client placement agreement with Rehab Arizona and
Renaissance provides for a guaranteed 100% occupancy for the first 2 years. This agreement is
at a discounted rate, which still provides for a gross income of $3,408,000 for the first year and
$4,608,000 for the second year. Casa Que Canta has a contract with PVR, where PVR provides
all of the day to day management, operations and client services required as related to Casa Que
Canta’ Camelback Mountain Rehab Paradise Valley. This rehab management and client service
agreement fixes the operational costs of the Camelback facility at $1,508,000 annually for the
first 2 years with a 3% cost of living increase annually beginning the third year forward. The
guaranteed contracted gross income of $3,408,000 the first year and $4,608,000 the second year
as well as the fixed operational costs of $1,508,000 for the first two years guarantees a net
operating income of $1.6 million the first year and $2.06 million the second year. Casa Que
Canta’ office is onsite at the Camelback facility and operated and staffed by PVR.
PVR Rehab Management Services, LLC is an Arizona Limited Liability corporation. PVR is a
newly formed corporation, which is contracted with Casa Que Canta to provide all rehab
management services at Casa Que Canta’ Camelback facility. The terms and conditions of the
agreement provides for a fixed operating cost for PVR and the segregation of non-qualifying and
qualifying income under the IRS REIT tax code. Therefore, PVR provides all the day to day
management, services and operations, including but not limited to, all staffing, meals,
transportation, client services, maintenance and any and all necessities to provide the proper
functioning of the Camelback facility. PVR’s primary office is located at the Camelback facility.
PVR operates with a staff of 21, comprised of 11 full-time and 10 part-time employees. The
rehab management agreement with Casa Que Canta provides for an annual income of $1,508,000
annually for the first 2 years with a cost of living increase of 3% annually from year 3 forward.
This agreement is designed to minimize any profits which have been determined as non-
qualifying income under the provisions of the IRS REIT tax code. Therefore, PVR has less than
$100,000 net operating income. PVR and its directors ensure the continuum of the licensing
requirements with the vast experience its directors provide.
Mission Statement
Paradise Valley Rehab, Inc.’s Mission Statement

Investment Objectives
Our primary investment objective is to generate current income. We anticipate generating current
income from interest payments on our mortgage loans and from rent and other income from
properties we acquire.
We may also seek to realize growth in the value of our investments by timing their sale to
maximize value. However, we cannot assure you that we will attain these objectives or that the
value of our assets will not decrease. Furthermore, within our investment objectives and policies,

our advisor will have substantial discretion with respect to the selection of specific investments
and the purchase and sale of our assets. Our board of directors, including our independent
directors, will review our investment policies at least annually to determine whether our
investment policies continue to be in the best interests of our stockholders. Each determination
and the basis therefore shall be set forth in the applicable board meeting minutes.
The mission of Paradise Valley Rehab, Inc. is to consistently meet shareholder performance
expectations by investing in quality real estate and real estate secured loan opportunities that will
allow us to deliver attractive, sustainable distributions and increased long-term growth in share
value via active asset management, yield-accretive acquisitions and optimal capital and risk
management.
We are investing substantially all of the net proceeds from this offering as a hybrid REIT in a
diverse portfolio of real estate secured loans and direct investments in real property. Focusing
primarily on investments in commercial real estate and loans secured by commercial real estate
located in the Western and Southwestern United States and other areas where our affiliates or
correspondents have experience.
It is our mission to acquire real estate secured loans, including mezzanine loans, first and second
mortgage loans, subordinated mortgage loans, bridge loans, variable interest rate real estate
secured loans where a portion of the return is dependent upon performance-based metrics and
other loans secured by real estate. In addition, we may invest directly in real estate that, in the
opinion of our board of directors, meets our investment objectives. We may acquire real property
either alone or jointly with another party. When fully funded, we intend to be invested in
approximately equal amounts as measured by the net proceeds of this offering in both real estate
secured loans and direct investments in real estate
Goals
Our goals are to:
 invest in a diversified real estate and mortgage investment portfolio consisting of:
o approximately 30% in rehabs, assisted living, private prisons, halfway houses and
other types of group homes;
o approximately 20% in commercial retail, office, multi-family residential

properties and warehouse space;
o approximately 50% in mezzanine loans, first and second mortgage loans,

subordinated mortgage loans, bridge loans, variable interest rate real estate
secured loans
 maximize return on investment potential by leveraging up to 75% loan to value of overall

investments;

 underwrite properties with allowances for vacancies, replacement reserves and
professional management that is appropriate for the types of properties being purchased;
 invest in properties that provide cash flow adequate to pay dividends and allow for long-
term capital investment gains through principal payback and property appreciation; and
 pay dividends that return a rate greater than a 5-year Certificate of Deposit (CD).
Strategically Acquiring Properties
We seek to expand our geographic diversification by strategically acquiring commercial

properties in high-growth markets.
Our acquisition targets are located in densely populated, culturally diverse communities,
primarily in the greater Phoenix, Chicago, Dallas, San Antonio and Houston metropolitan areas,
as well as select parts of California that meet our criteria. These markets encompass 6 of the top
15 markets in the USA in terms of population growth. We believe that during the next several
years there will be excellent opportunities in our target markets to acquire quality properties
directly from owners, at historically attractive prices. Many of these assets may benefit from our
management teams’ experience in turning around financially distressed properties, portfolios and
companies.
We may also consider pursuit of opportunities in other Southwestern and Western regions that
are consistent with our Community Centered Property strategy.
Redeveloping and Re-tenanting Existing Properties
We ameliorate and add value through renovation and re-tenanting to create PVR-branded
Community Centered Properties by:
 stabilizing occupancy, with per property occupancy goals of 90% or higher;
 adding leasable square footage to existing structures;
 developing and building on excess land;
 upgrading and renovating existing structures; and
 investing significant effort in tenant recruitment whose goods and services meet the needs
of the surrounding neighborhoods.
Recycling Capital for Greater Returns
Occasionally a property may no longer meet our Community Centered Property strategy or our
profitability goals. In this instance, we may upgrade our portfolio by opportunistically selling

these properties and redeploying the sale proceeds into other investments that show greater
potential and are a better fit.
Prudent Management of Capital Structure
As a general policy, we intend to maintain a ratio of total indebtedness to undepreciated book

value of real estate assets that is less than 60%.
We believe that our people are the heart of our culture, philosophy and strategy. Therefore, we
continually focus on developing associates who are self-disciplined, motivated and possess a
high degree of character and competence. In return, we provide them with equity incentives that
reward their loyalty and efforts to align their interests with those of our shareholders.
Casa Que Canta, LLC’s Mission Statement
Casa Que Canta, LLC's values are deeply rooted and our mission is to provide quality,
competitively priced, inpatient drug and alcohol rehabilitation services in a calm, nurturing
upscale environment and aftercare through community-based social services to individuals and
families of Paradise Valley, greater Phoenix metropolitan area and other areas nationwide. Our
goal is to offer services that support the total person while teaching the necessary skills for re-
entry into society and social settings with a clean and sober lifestyle. We strive to enable our
clients to recognize the underlying issues and triggers associated with why substance abuse
became their reality and arm them with concrete solutions to assist them on their paths to
recovery, including ending their cravings and deploying proper coping skills.
We believe that respect, integrity and safety are paramount and we honor this in every client and
staff member. Our expectations for accountability, ethics and dedication are an integral part of
our structure for achieving success in our mission and goals. We are committed to continuous
improvement, support and growth and recognize that the individual is not the only one affected
by their drug and alcohol addictions and treatments. Therefore, we embrace The Twelve Steps of
Alcoholics Anonymous as a key component of our overall philosophy and we employ the most
successful methods known in the treatment of and recovery from drug and alcohol addiction.
We are dedicated to only employ competent, caring, and well-trained individuals who are
responsive to the needs of our clients, their families, and the communities we serve. Each staff
member meets the State of Arizona educational and training requirements for the services they
provide. We encourage and support continued education of each service provider. In turn, our
facility attracts high quality staff by offering competitive compensation, an inviting work
environment and knowledgeable, trustworthy management and direction.
At Casa Que Canta, LLC. is positioned to become the premiere model for inpatient drug and
alcohol rehabilitation in Paradise Valley and the greater Phoenix metropolitan area as we provide
social and material values to our clientele and our community.
PVR Rehab Management Services, LLC Mission Statement

PVR Rehab Management Services, LLC’s mission is to promote a symbiotic relationship
between high quality staff and services that creates a solid foundation for premium care in a
supportive structured environment to our clients and their families.
1.3 History and Current Status
PVR was formed by a close group of primary investors who desire to diversify their portfolio
into a more advantageous tax structure. Thus, PVR REIT was born. PVR’s 15 preliminary
investors have committed to fund the first $250 million in equity as needed on a case by case
basis. This funding commitment has been memorialized and contracted under the provisions of a
capital call agreement. The 15 primary investors have agreed to collectively provide no less than
45% of the purchase price of any and all of the assets newly acquired by the REIT.
Casa Que Canta, LLC
Casa Que Canta was formed for the purpose of developing a cash-flowing, turnkey, licensed,
profitable, luxury drug and alcohol rehab facility to be sold to a qualifying REIT.
PVR was formed for the purpose of receiving any and all non-qualifying income under the IRS
REIT tax code for any and all products, support services and essentials required for proper
operation and functionality of the Camelback facility.

1.4 Goals and Objectives
1.5 Critical Success Factors
PVR’s success is accomplished by:
 having 15 contracted primary investors that guarantee the funding for the first $250
million in equity under the provisions of a capital call agreement;
 acquiring turnkey, operational, contracted, income producing, profitable, REIT qualified

assets;
 consistently maintaining a 45-50% equity ratio.
These factors, along with our board of directors, assure PVR’s ability to continually acquire
financing at the lowest possible rate and perpetuate appropriate asset management.
Casa Que Canta, LLC
Casa Que Canta’ success is accomplished by:
 having a contracted client placement agreement that provides for a guaranteed gross
income of $3,408,000 for the first year and $4,608,000 the second year;
 augmenting and/or superseding these agreements with our own in-house marketing
division supporting our global internet advertising efforts and our corresponding client
attraction capabilities;
 charging fees that are competitive but less than the industry average while still affording
us the ability to adjust our pricing at any given time;
 being in an industry that has, on average, in excess of a 28 day waiting list and over 120
million potential clients;
 having a contracted Rehab Management and Client Services Agreement fixing our
operational costs.

These factors, along with guidance from our highly competitive and balance-value oriented
board of directors, assures Casa Que Canta’ ability to acquire clients at the highest possible rates
and maintain an advantageous competitive edge.
PVR’s success is accomplished by:
 having a contracted Rehab Management and Client Services Agreement with Casa Que
Canta;
 hiring highly qualified patient-oriented staff;
 our dedicated, experienced board of directors;
 commanding a minimum per client monthly income rate of $12,566 or $125,666 per
month.
These factors assure PVR’s ability to provide all the necessary requirements under the terms and
conditions set forth in the Rehab Management and Client Services Agreement.
1.6 Company Ownership
Name Title # Of Shares % Of Investment

Ownership Amount
The Vanguard Trust, Daniel Chairman of the
L. Case, Sr. Trustee Board
Name Title # Of Shares % Of Investment

Ownership Amount
Richard A. Block
George M. Papa

Lawrence Robert Reader,
Jr., M.D.
Total shares 0
1.7 Exit Strategy
PVR is currently looking to obtain one-off financing for each of its first acquisitions up to the
first $100 million in debt. We feel it serves us best to focus on the quality of the individual
assets. This precludes us at this time from seeking the line of credit we will ultimately need. It
is our intention to continue funding the first $200 million in acquisitions one deal at a time. This
will allow us the freedom to choose the highest quality assets without the demands of any
minimum funding amounts a line of credit will impose. We feel it is equitable to assume that we
will be able to acquire 2 new $20 million assets every 90 days. With that being said, including
the Camelback facility, it is feasible to expect we will have closed on over $240 million in assets
and acquired nearly $120 million in debt and equity by July 2015.
Our financing sources have expressed their interest in providing us a line of credit once we have
in excess of $80 million in debt. We are confident we will be able to obtain funding of this line
of credit we ultimately require once we have established our portfolio of performing assets that
produces in excess of a 7% cap rate and we have over a 45% equity position.

Moreover, if for any reason we are not able to obtain new financing, under the IRS REIT tax
code, we can liquidate assets after 3 years without the burden of income tax with ease
considering the cap rate and equity to debt ratios.
2.0 Products and Services
2.1 Service Description
Casa Que Canta operates a high end luxury drug and alcohol treatment facility within the
community of Paradise Valley, Arizona. The facility is a peaceful and inviting place, conducive
to a positive and regenerative mindset. The facility focuses its treatment on the proven
approaches to drug treatment, consisting of pharmacotherapy and behavioral therapy, which is
individually planned after patient analysis and administered by qualified and licensed medical
personnel. Casa Que Canta provides appropriate medical care, individual and group therapy
options, meetings, nutritional planning, coping and socialization skill develop, group activities,
games and exercise, life enriching activities such as yoga, golf, horseback riding, and relaxation
amenities such as massage, acupuncture and an onsite personal trainer for our clients.
Casa Que Canta House offers clients a comforting, luxurious and peaceful environment for
private reflection. Additionally, clients participate in small group activities and scenarios where
they may receive healthy & positive support structures and reestablish social skills. The house is
an inspiring and hopeful environment where addicts can fully immerse themselves into their
recovery without feeling repressed in a drab medical setting.
Casa Que Canta’ Camelback Mountain Rehab provides substance abuse management and
addiction treatment services:
Medical Treatment - Opiate Detox / Withdrawal
 Methadone
 Buprenorphine
 Naltrexone
Medical Treatment - Alcohol Detox / Withdrawal
 Naltrexone
 Acamprosate
 Disulfiram

 Topiramate
 Combination with Behavioral Treatment
Behavioral Therapies
CBT (Cognitive Behavioral Therapy)
 focuses on learning and correcting maladaptive behavior patterns leading to use;
 anticipation of likely problems and enhancement of control in prevention.
Motivational Enhancement Therapy (Alcohol, Marijuana, Nicotine)
 helps to resolve ambivalence towards stopping drug use;
 attempt to invoke motivation for change.
Matrix Model
 extensive system used for stimulant users;
 multi-faceted approach with therapist - user relationship is paramount.
Multidimensional Family Therapy
 involves patient and at least one cohabiting partner;
 determine and develop behavior goals;
 significant other or family member provides rewards when goals are accomplished.
Non-Primary Treatment Related Services
 nutrition planning and cooking instruction/training;
 recreational activities: swimming, golf, etc…;
 relaxation amenities: masseuse, acupuncture, spa;
 fitness and physical activities: exercise room, yoga classes, fitness classes;
 social integration: group outings and activities;
 fully equipped business center;

 media room / theatre;
 smoking cessation assistance.
Principles of Effective Treatment
 Addiction is a complex but treatable disease that affects brain function and behavior.
 No single treatment is appropriate for everyone.
 Treatment needs to be readily available.
 Effective treatment attends to multiple needs of the individual, not just his or her drug
abuse.
 Remaining in treatment for an adequate period of time is critical.
 Counseling individual and/or group and other behavioral therapies are the most
commonly used forms of drug abuse treatment.
 Medications are an important element of treatment for many clients, especially when
combined with counseling and other behavioral therapies.
 An individual's treatment and services plan must be assessed continually and

modified as necessary to ensure that it meets his or her changing needs.
 Many drug-addicted individuals also have other mental disorders.
 Medically assisted detoxification is only the first stage of addiction treatment and by
itself does little to change long-term drug abuse.
 Treatment does not need to be voluntary to be effective.
 Drug use during treatment must be monitored continuously, as lapses during

treatment do occur.
 Treatment programs should assess clients for the presence of HIV/AIDS, hepatitis B
and C, tuberculosis, and other infectious diseases as well as provide targeted risk-
reduction.
 Counseling to help clients modify or change behaviors that place them at risk of
contracting or spreading infectious diseases.
Effective Treatment Approaches

Medication and behavioral therapy, especially when combined, are important elements of an
overall therapeutic process that often begins with detoxification, followed by treatment and
relapse prevention. Easing withdrawal symptoms can be important in the initiation of
treatment; preventing relapse is necessary for maintaining its effects. And sometimes, as with
other chronic conditions, episodes of relapse may require a return to prior treatment
components. A continuum of care that includes a customized treatment regimen—addressing all
aspects of an individual's life, including medical and mental health services as well as follow–up
options (i.e., community or family-based recovery support systems) can be crucial to a person's
success in achieving and maintaining a drug–free lifestyle.
The National Center on Addiction and Substance Abuse at Columbia University, determined
there to be 40 million addicts in need of treatment in the USA. A total of 80 million people were
classified as risky substance users whose drug use threatens their health or safety. A potential
customer is any individual that has a need for treatment and is capable of attending treatment. At
a maximum, the target market within the USA consists of roughly 120 million. If 1 out of 1,000
of these people sought treatment, the market would still be underserved.
SAMHSA also reports characteristics of admissions and discharges from substance abuse
treatment facilities in its Treatment Episode Data Set†† (TEDS). According to TEDS, there
were 1,800,000 admissions in 2008 for treatment of alcohol and drug abuse to facilities that
report to State administrative data systems. Most treatment admissions (41.4 percent) involved
alcohol abuse. Heroin and other opiates accounted for the largest percentage of drug-related
admissions (20.0 percent), followed by marijuana (17.0 percent).
The age groups that accounted for the largest share of admissions were:
25 to 29 - 14.8%
20 to 24 - 14.4%
40 to 44 - 12.6%
35 to 39 - 11.7%

Of these groups, the ethnic breakdowns were as follows:
White - 60%
African-American 20.9%
Hispanic - 13.7%
American Indian - 2.3%
Asian - 1.0%
Casa Que Canta is determined to maintain maximum occupancy at all times, except when
prohibitive to the success of the program or the safety of the staff and/or clients. For the industry,
this is a reasonable goal, as some facilities run well over 100% utilization year round. The typical
length of treatment lasts 3 months. According to SAMHSA, for long term inpatient treatment,
the national median length of stay is 75 days for alcohol, and close to 90 days for both stimulants
and opiates.

The minimum stay at the Camelback facility is 1 month. For purposes of assumption, for every 8
clients participating in long term stay, 2 will be completing a quick 1 month program.
Estimated clients required to maintain full occupancy for 1 year is:
(12 / 3) x 8 = 32 Clients (Long term) 12 x 2 = 24 (Short term) = 56 Total Clients
56 clients per year is a goal that is easily met. The market is so underserved that NIDA has
estimated roughly 90-95% of individuals who require treatment will never receive any such type
of service or assistance. In Arizona, the patient to facility ratio is the third highest in the nation.
Arizona simply has too many addicts and not enough treatment centers. The Camelback facility
is designed to be in a class of its own, unlike any other facility in Arizona.
Currently clients are placed via the contracted client placement agreement with Rehab Arizona
and Renaissance for full occupancy. These contracts are in place for the first 24 months.
Regardless, there is no shortage of people in need of treatment now, or at any point in the known
future. It is our vision to continue to grow until there is no longer a reason or opportunity to do
so.
The Camelback facility currently refers clients needing aftercare support services to accredited
intensive outpatient programs in close proximity to the client’s personal residency. Furthermore,
we provide a 24 hour, 365 day per year crisis hotline.
2.2 Unique Features
The Camelback facility is privileged to have Lawrence Robert Reader, M.D., 1 of the 5 doctors
permitted to prescribe Suboxone in Maricopa County.
The plethora of products and services, pricing at less than the industry average, the ability to
prescribe Suboxone onsite and our luxurious amenities give the Camelback facility a clear
advantage over the competition. Casa Que Canta’ placing strategy is to provide the highest level
of luxury care products and services below industry average. The prices charged for the
Camelback facility are solely based on cost of goods sold and the required net operating income
combined.
2.3 Production
Casa Que Canta’ Camelback facility has a rehab management client service agreement with
PVR. Whereas, PVR provides any and all of the day to day operations, including but not limited
to, implementation, policies and procedures, client services, and rehab functions.

PVR provides the services and management with a combined internal full-time and part-time
staff of 21.
The below table represents the guaranteed minimum bed fees, fixed operating costs, expected
$11 million debt servicing at 4% interest only and the profit margins, all based on:
 the contracted client placement agreement,
 initial payments of $25,900 per bed per month for 10 beds for 24 months totaling
$6,216,000 (prepaid and deposited in escrow at Fidelity National Title at 2450 South
Arizona Avenue, Suite 5, Chandler, Arizona 85286, c/o Jennifer Douthit), and
 the rehab management with PVR for $1,508,000 annually for first 2 years.
Sales Price, Cost, Debt Servicing and Profit Margin
Descriptio Percentag 1 Bed / 10 Beds / 1 Bed / 10 Beds / 1 Bed / 10 Beds /

n e 1 Day 1 Day 1 Month 1 Month 1 year 1 Year
Casa Que 100.000 863.33 8,633.30 25,900.00 259,000.00 310,800.00 3,108,000.00
Canta
Charges
PVR 0.485 418.90 4,189.00 12,566.67 125,666.70 150,800.04 1,508,000.40
Charges
Debt 0.140 122.23 1,222.30 3,666.66 36,666.60 43,999.92 439,999.20

Servicing
Total Casa 0.626 541.13 5,411.30 16,233.33 162,333.30 194,799.96 1,947,999.60

Que Canta
Charges,
PVR
Charges &
Debt
Servicing
Net Profit 0.370 322.22 3,222.20 9,666.70 96,667.00 116,000.40 1,160,004.00
NOTE: The above table does not include the additional subsequent monthly payments of:
 $5,000 per bed in months 7-12;
 $10,000 per bed in months 13-18; and
 $15,000 per bed in months 19-24.
2.4 New and Follow-On Products and Services

 Acquire a second cash-flowing, turnkey, operational, functional, staffed, profitable,
luxury drug and alcohol facility in Scottsdale, Arizona that has a contracted client
placement agreement within 90 days after the Casa Que Canta and PVR close of escrow.
 Acquire a third cash-flowing, turnkey, operational, functional, staffed, profitable, luxury

drug and alcohol facility in Southern California that has a contracted client placement
agreement within 6 months after the Casa Que Canta and PVR close of escrow.
 Acquire a fourth cash-flowing, turnkey, operational, functional, staffed, profitable, luxury

drug and alcohol facility in Southern California that has a contracted client placement
agreement within 6 months after the Casa Que Canta and PVR close of escrow.
 Acquire a total of 12 cash-flowing, turnkey, operational, functional, staffed, profitable,

luxury drug and alcohol facility nationwide that have a contracted client placement
agreement by July 2015.
 Develop an intensive outpatient program, first at the Paradise Valley and Scottsdale, then
at the 2 Southern California facilities and then at the remaining 8 facilities subsequently,
by December 2015.
 Develop an accredited online 12 step group meeting that facilitates any court ordered AA
meeting requirements by December 2015.
3.0 The Market
3.1 Industry Analysis
The market for drug and alcohol treatment is enormous. Tens of millions of people suffering
from addiction and substance abuse are in need of treatment. In 2011, The National Center of
Addiction and Substance Abuse released a study estimating the number of people afflicted with
medically classified addiction to be in excess of 40 million. The same study estimated the total
number of problem users to be over 80 million. Less than 2.5% of the 40 million received any
form of substance abuse treatment that same year. Rarely will demand not be met, in a saturated
and highly profit market, but the case is just that in the substance abuse treatment arena. For
foreseeable future, there will be little to no competition for the number of addicts seeking
treatment far outweighs the full capacity of all inpatient facilities (including private and
government).
Natural time and capacity restraints involved with proper administration of treatment:
 treatment centers have limited number of beds; and

 average length of stay is close to 3 months.
This is mostly due to the natural time and capacity restraints from a limited number of facilities,
and an average length of stay at nearly 3 months.
The market cannot be easily or quickly served. An example of why the market will remain
underserved:
 422 private for-profit treatment centers in USA;
 17,856 beds available across all facilities;
 40 beds on average per facility (Casa Que Canta must only fill 10 beds per rotation);
 average length of stay 75 days ( SAMHSA data );
 assuming all facilities ran at 100% Utilization for entire 365 days:
o 365/75 * 17,856 = 86,899 clients;
 the estimated market of people that are in need of treatment is in excess of 40 million;
 the total number of people who could benefit from treatment is 120 million. This number
is growing larger each year;
 all private, for-profit facilities in the country combined are only capable of handling
approximately 90,000 clients per year;
 the national insurance institute reports in the next 3-5 years, the number of clients who
will be covered for treatment under insurance policies is expected to rise by
approximately between 200-300%.

Chart Breakdown
An analysis of private for-profit inpatient drug and alcohol treatment shows what appears to be a
fairly well balanced and generally non-competitive market. Most facilities are able to operate at
a utilization level well above 85%, with the industry average utilization at 93%. Nearly half of
the private treatment centers ran above 90% utilization rate at all times. All but 58 of them ran
above 50% utilization.

Studies show that for every $1 invested in addiction treatment and recovery there is an estimated
cost savings of between $4 and $7 in reduced drug-related crime, criminal justice costs, and
theft. xxv When savings related to health care are included, total savings can exceed costs by a
ratio of 12 to 1.xxvi
Studies show:
 in Hampton Roads, there were 24,422 alcohol and drug related arrests in 2009 (including
6,942 for driving under the influence of alcohol) xxviii;
 over 70% of Virginia’s inmates in state and local corrections centers have alcohol and
other drug addiction xxix;
 in 2008, Hampton Roads had the highest drug arrest rate in the state at 683 per 100,000
xxx.
Lost Productivity
A 1998 study by the NIH estimated that lost potential productivity was approximately $82 billion
for alcohol and drug abuse in 1992. One of the authors concluded that “Much of the economic
burden of alcohol and drug problems falls on the population that does not abuse alcohol and
drugs.” xxxiii Lost productivity includes loss of earnings for households due to premature death
of the substance abuser, loss of earnings for the abuser due to alcohol and drug related illness,
decreased earnings of victims of fetal alcohol syndrome due to mental impairment and lost
productivity of victims of alcohol and drug related crimes. xxxiv
Lost Potential Productivity Due to Alcohol and Drug Abuse

xxxv xxxvi
Lost Earnings due to: Alcohol Drugs Total
Premature death $ 36 billion $ 24 billion $ 60 billion
Alcohol & drug related illness $ 86.7 billion $ 33 billion $ 119.7billion

xxxvii
Institutionalized/hospital populations $ 1.5 billion $ 1.9 billion $ 3.4 billion
Fetal alcohol syndrome victims $ 1.2 billion n/a $ 1.2 million
Victims of crime $ 1 billion $ 1.8 billion $ 2.8 billion
Incarceration $ 9 billion $ 39 billion $ 48 billion
Total $ 135.4 billion $ 99.7 billion $ 235 billion
3.2 Market Analysis
Market Notes and Observations
 private for-profit treatment centers will only operate at a level at or below their maximum
occupancy;
 government funded facilities will admit more clients than they have available beds for,
but a private for-profit business will not;
 inpatient treatment cannot be rushed, expedited, or quickly administered - facilities can

only provide treatment for what their capacity allows;
 proper treatment requires, on average, 3 months to complete - each facility is limited to

roughly 4 cycles of clients per year;
 revenue will only be increased by adding more beds, increasing the price for services, or
building new facilities. Because of this, it is difficult for any facility to become a market
leader or competitive force.
In the next 3-5 years, the number of clients who will be covered for treatment under insurance
policies is expected to rise by approximately between 200-300%. This will create greater need
for treatment within market and increase the number of prospective customers.

Arizona Market
 According to data provided by NIDA, only two states have a higher patient to facility
employee ratio than Arizona, Massachusetts and Montana;
 Arizona is severely lacking in properly licensed, qualified residential long term treatment
programs;
 in Arizona, the primary drugs used are Alcohol, Marijuana, Stimulants

(Methamphetamine accounted for nearly 85% of stimulant use)
o these three drugs account for 90% of treatment;
o opiates users are most difficult to manage clinically, and Arizona has a relatively
low instance rate
 the age group from 25 to 44 accounted for nearly half of the clients treated.
The charts below are from an Arizona Department of Health Services report on state addiction
treatment:
SAMHSA also reports characteristics of admissions and discharges from substance abuse
treatment facilities in its Treatment Episode Data Set†† (TEDS). According to TEDS, there
were 1,800,000 admissions in 2008 for treatment of alcohol and drug abuse to facilities that
report to State administrative data systems. Most treatment admissions (41.4 percent) involved
alcohol abuse. Heroin and other opiates accounted for the largest percentage of drug-related

admissions (20.0 percent), followed by marijuana (17.0 percent). However, for Arizona, opiates
were far behind marijuana and stimulants for use.
The age group of 25 to 44 accounts for nearly half of all admissions for drug treatment. This is
advantageous, as this is the highest earning group of individuals and the most likely to be
covered by private health insurance.

Market Segmentation

Of the 19,900,000 current illicit drug users in 2011 aged 18 or older, 13,100,000 (65.7 percent)
were employed either full or part time.
Among persons aged 12 or older, the rate of current illicit drug use in 2011 was 10.5 percent in
the West, 9.2 percent in the Northeast, 8.5 percent in the Midwest, and 7.5 percent in the South.
1. Referrals
Clients enter treatment at the direction of another person or service. Oftentimes, the addiction has
reached such a level of severity that the patient has no control of their own physical ability to
maintain themselves.
Physicians
 generally low producing but potential for referral of clients with insurance or ability to
pay.
Clients are generally in a better state than other referral sources.
Hospitals
Clients that are referred will often be recovering from an addiction that had become life
threatening.
 require proper licensing and accreditation to begin to market hospitals for referral
contracts.

Outpatient Facility
Second most valuable referral source.
 clients that cannot be treated with outpatient services are referred to our facility, and
outpatient facility are than compensated a set fee for referral.
Counselors
Most valuable referral source. Most likely the best source for clients referrals.
 clients will already be pre-screened for insurance acceptance, they will have been
diagnosed by counselor and ability to pay will already be established.
2. Individuals and Families
Individuals
Generally have higher success rates.
 individuals seeking treatment for themselves already demonstrate willingness for

treatment.
3.3 Competitor Analysis
There are no true market leaders or competitors within this industry. According to a report
published by SAMHSA, inpatient drug treatment runs at nearly 97% utilization nationwide. In
Arizona, the patient/facility ratio is the third highest in the nation - "too many clients and not
enough facilities". Most facilities are not properly licensed or accredited; however, Casa Que
Canta is licensed and accredited. We offer a luxury setting with a real results-based treatment
program. There is no shortage of potential clients at any point in the known future and it is our
vision to grow until there is no longer a reason or an opportunity to do so. We will build
facilities as long as they continue to be filled.
Although, there are numerous drug and alcohol treatment facilities within the United States,
there are few facilities that rival the luxuriousness and level of care provided at Casa Que Canta’
Camelback Mountain Rehab. The most comparable facilities to the Camelback Mountain Rehab
are as follows:
NAME ADDRESS WEBSITE

Alta Mira Sausalito, California altamirarecovery.com

AToN Center San Diego, California atoncenter.com
Cliffside Malibu Malibu, California cliffsidemalibu.com
Passages Malibu Malibu, California passagesmalibu.com
Promises Malibu Malibu, California promises.com/locations/malibu
Sierra Tucson Tucson, Arizona sierratucson.crchealth.com
Summit Malibu Malibu, California summitmalibu.com
The Hills Los Angeles, California thehillscenter.com
COMPETITIVE ANALYSIS TABLE
ATON CLIFFSIDE PASSAGES PROMISES SIERRA SUMMIT THE

FACTOR ALTA MIRA CENTER MALIBU MALIBU MALIBU TUCSON MALIBU HILLS
PRICE $50,000 per 35 $45,000 per $53,000 - $80,000 per $55,000 for $47,680 and $48,000 for $40,000 -
days month $68,000 month for shared up depending 28 days $50,000
Double Malibu bedroom and on treatment shared room
($75,000 if bathroom needed.
$60,000 using $50,000/mo $58,000
Semi-private insurance, nth for $75,000 for Only double private room
plus Ventura private occupancy, no
$70,000 $200/day bedroom and private rooms
Private for detox) shared offered.
bathroom
$90,000 for
private
bedroom and
bathroom
QUALITY Four Stars Four Stars Four Stars Two Stars Four Stars Four Stars Four Stars Three Stars
RATING Overall Overall Overall Overall Overall Overall Overall Overall
STYLE Luxury Hotel, Two luxury Beach Cabin $23 million Mediterrane Spanish - Very private The facility
houses or houses with Feel. mansion an - style Native and intimate itself is
smaller a Spanish sitting on 10 mansion American Spanish villa comprised of
cottages to theme acres atop a Luxury style. three luxury
choose from overlooking canyon houses at the
(depending on the Pacific end of a
occupancy) Ocean. private gated
overlooking driveway.
San Francisco Decor is
Bay. impeccable
and stylish in
the 14
bedrooms
and separate,
private two-
bedroom
cottage.
LOCALE Sausalito, San Diego, Malibu, Malibu, Malibu, Tucson, Malibu, Los Angeles,
California California California California California Arizona California California
STAFF TO Well above 6:1 4:1 4:1 5:1 3:1 4:1 6:1

ATON CLIFFSIDE PASSAGES PROMISES SIERRA SUMMIT THE
FACTOR ALTA MIRA CENTER MALIBU MALIBU MALIBU TUCSON MALIBU HILLS
CLIENT industry
RATIO standards.
NUMBER 30 total 12 total 12 total Unknown Residents 139 total 7 total 15+ divided
OF BEDS 1-2 beds per 2 beds per 1-2 beds per are spread 2 beds per between 3
room room room throughout room houses.
divided six houses
between on the lush
two houses grounds,
with no
more than
six residents
per home.
DOUBLE Yes Yes Yes Unknown Yes Yes Yes Yes

CLIENTS
PER ROOM
YEAR 2007 Unknown Unknown 2001 Unknown 1983 Unknown Unknown

BUILT
PHARMA- Yes Yes Yes Yes Yes Yes Yes Yes

CO-
THÉRAPIE
PERSONAL Yes Yes Yes Yes Yes Yes Yes Yes

TRAINER
YOGA No Yes Yes Yes Yes Yes Yes Yes
DETOX Yes- At time Yes- At Yes- At time Yes- At time Yes- At time Yes- At time Yes- At time Yes- At time
of admission. time of of admission. of of of admission. of of
admission. admission. admission. admission. admission.
CREDIT Self-pay only Insurance or Insurance or Insurance or Insurance or Insurance or Insurance or Insurance or
POLICIES and must be Self-Pay: If Self-Pay: If Self-Pay: If Self-Pay: If Self-Pay: If Self-Pay: If Self-Pay: If
paid at time of Self-Pay, Self-Pay, Self-Pay, Self-Pay, Self-Pay, Self-Pay, Self-Pay,
admission. must be must be paid must be paid must be paid must be paid must be paid must be paid
paid at time at time of at time of at time of at time of at time of at time of
of admission. admission. admission. admission. admission. admission.
admission.
MEALS Buffet style Buffet style Buffet style Gourmet Meals are Buffet style Gourmet Tailored to
with gourmet with with gourmet chef on staff. served with gourmet chef on staff the
chef on staff. gourmet chef on staff. family-style chef on staff. that caters to individual.
chef on – caters to the
staff. clients' individual
special
dietary
demands.
ALTA MIRA

ATON CENTER

CLIFFSIDE MALIBU

PASSAGES MALIBU

PROMISES MALIBU

SIERRA TUCSON

SUMMIT MALIBU

THE HILLS

CAMELBACK MOUNTAIN REHAB PARADISE VALLEY

3.4 Barriers to Market Entry

Obstacles
The following items are issues that must be addressed to have an appropriate licensed and
accredited facility:
 find and acquire a suitable property;
 convert the property to comply with state licensing, i.e.:
1. a fire alarm system, installed according to NFPA 72, with a fire alarm control
panel that includes a manual–pull alert mechanism, automatic occupancy
notification, a smoke or fire detection system and notification of a local
emergency response team;
2. an automatic sprinkler system with a water flow device and all central valve
tampers tied into the fire alarm control panel;
3. a battery-operated smoke detector installed in each bedroom, hallway adjacent to

a bedroom, utility room and any room or hallway adjacent to a kitchen;
4. a multipurpose fire extinguisher with at least 2a10cc rating hung on wall brackets
with the top of the operational handhold located less than 5 feet above the floor in
the kitchen and one fire extinguisher for every 3000 square feet in the facility, in
addition to the kitchen unit;
5. an exit sign posted above each door that connects to the facility grounds;
6. a comprehensive policy and procedures manual;
7. proper hand wash and eye wash stations;
8. a food preparation license as applicable to the facility setup; and
9. numerous other requirements.
 hire and train all required staff as related to the state licensing requirements, including but
not limited to, a psychiatrist or physician with behavioral health experience, a behavioral
health, medical practitioner, a counselor and registered nurse(s);
 equipment purchasing of all equipment, software, furniture, supplies, etc… necessary for
daily operational activities, remodeling the facility and performing any necessary
additional repairs or construction/enhancements, install operational equipment and
systems (billing system, storage, computers, network, telephone system, intercom system,
emergency alert system, furniture placement and arrangement, accessories, etc…

 establish operational policies, treatment guidelines and procedures, intake protocol,
emergency response procedures, security standards, drug and medical control measures,
schedule and shift rotations, periodic review timelines and criteria for staff member
classes (including administrative, operations, medical and general support personnel),
facility maintenance schedules, facility cleanliness standards, community outreach
networking with local community groups, other treatment centers, outpatient groups,
etc… to magnify our presence and fortify relational ties;
 marketing and branding of the business, develop logo, promotional theme/motif,

company slogan, website development, commercials, newspaper advertisements, market
the client placement services, establish a strong online presence, SEO plan development
and implementation, establish relationships with local counselors and outpatient groups,
present plan for referral compensation, develop promotional material content, theme,
colors, uniform type settings and staff qualification promotion, etc…
4.0 Marketing Strategies and Sales
4.1 Introduction
Casa Que Canta has contracted client placement agreements in place for the next 24 months that
guarantee a gross income of $3,408,000 with a net operating income of $1.6 million for the first
year and a gross income of $4,608,000 with a net operating income of $2.06 for the 2nd year.
Luxury rehabs enjoy a near 100% occupancy rate with a waiting list of over 28 days. Casa Que
Canta’ Camelback Mountain Rehab price point is below the industry average for our services.
The contracted client placement agreements provide for the operational 24 months seasoning of
the Camelback facility that the industry demands of rehab placement referral services
(physicians, hospitals, outpatient facility, intervention facilitators, and counselors). Casa Que
Canta has preemptively made agreements with numerous referral services. Whereas, predicated
upon the fulfillment of the aforementioned 24 months’ operational seasoning requirements,
several referral services have issued letters of intent (see Exhibit __) to place clients at the
Camelback Mountain Rehab facility.
4.2 Market Segmentation Strategy
Physicians
 generally low producing but potential for referral of clients with insurance or ability to
pay;

 require 24 months operational seasoning of the rehab to refer clients.
Hospitals
 require proper licensing and accreditation of rehabs for referral contracts;
 require 24 months operational seasoning of the rehab to refer clients.
Intervention Facilitators/Rehab Referral Services
 most valuable referral source;
 the individuals seeking treatment through them demonstrate a pre-dispositive willingness

for treatment;
 the success rates are generally higher in people placed into treatment by family members
or a spouse;
 clients are prescreened for ability to pay and insurance.
Managed Care Companies and Other Payers
 contracts with insurance companies will be established after the 24 months’ operational
seasoning requirements are fulfilled.
4.3 Targeting Strategy
A business is faced with a challenge of competing for clients in a competitive, fixed market.
There are often high barriers for any business with regards to customer acquisition, competing
against other businesses and gaining market share. However, such obstacles are virtually
nonexistent in the drug and alcohol treatment industry.
The pool of potential clients is so large that there are no significant barriers preventing customer
acquisition or competition within the target area. Out of a potential pool of 120 million clients,
only 56 must be placed at our facility for the entire year, or .000005% of the market. This is
indicative of why there are no true leaders or aggressive competitors within the industry.
Nationwide, residential drug treatment runs near full occupancy, and in Arizona, the
patient/facility ratio is the third highest in the nation. Arizona simply has too many addicts and
not enough treatment centers.

4.4 Positioning Strategy
The majority of clients that attend inpatient drug and alcohol treatment are self-referral, either by
their own accord or through family members. These types of clients make up a large portion of
the business.
However, equally as important, if not more so, are referrals from other facilities, counselors,
treatment centers, intervention facilitators and businesses involved in lateral markets. These
types of referrals are especially important because the clients usually come prescreened, have
already been determined to have the ability to pay through self-pay or insurance, have a valid
addiction or addiction-related problem that services can be provided for and demonstrate a
willingness to undergo treatment. These types of contact and relationships take time to develop.
However, once established, they can be the lifeblood of the company.
Casa Que Canta’ focus is on developing and maintaining relationships with rehab referral
services. This is accomplished in part by providing the highest level of luxury care and facility
within the median industry average pricing for comparable facilities. Moreover, our positioning
geographically in the West affords us one of the greatest concentrations of illicit drug users.
The Camelback facility is privileged to have Lawrence Robert Reader, M.D., 1 of only 5 doctors
legally permitted to prescribe Suboxone in Maricopa County, Arizona.
The plethora of products and services offered, pricing at less than the industry average, the
ability to prescribe Suboxone on-site and our luxurious amenities give the Camelback facility a
clear advantage over the competition. Casa Que Canta’ placement strategy is to provide the
highest level of luxury care products and services below industry average cost. The prices
charged for the Camelback facility are solely based on cost of goods sold and the required net
operating income combined.
4.5 Marketing Strategy
Marketing is more than advertising. The goal of marketing is to inform or drive as many possible
customers to your business in the places that are the most cost-effective and advantageous
towards creating a sale. The marketing plan at Casa Que Canta focuses primarily on building
relationships with counselors, outpatient facilities and other treatment centers. All of these places
have a constant supply of individuals that not only qualify to receive treatment but satisfy one of
the major criteria for reimbursement through insurance companies. Due to their efforts to cure
their addiction through these channels first, insurance companies are required to pay for the
inpatient services if they were not successful using this outpatient treatment strategy. Casa Que
Canta makes a continual effort to build upon all of the relationships with these entities and
establish placement arrangements to ensure that all referring parties are properly compensated
and willing to continue a mutually beneficial working relationship.

4.6 Website Marketing Strategy
The second focus for marketing is the internet and web-driven sales. No channel is more
significant than the internet in today’s economy for attracting and maintaining customers.
Whether it is through direct sales or simply from user-submitted reviews about a company’s
performance on forums, the internet can quickly grow or kill a business. Casa Que Canta
strongly focuses on a highly functional and aesthetic website which is continually monitored for
analytics from viewer website behaviors and opinions to refine it. The marketing aspect is two-
fold with attention towards SEO (search engine optimization) and paid advertising. The
knowledge our staff brings to the table in this area is exceptional and the general lack of
knowledge in this area across the industry makes the advantageous gains from our success here
easier to obtain and to keep.
Basic Key Points for the Website:
 nothing is more important for a business in the modern era than its online visibility and
effectiveness;
 as a general rule, people will make a decision to stay or leave within the first 3 seconds
after arrival on a website;
 this principle drove the design and structure for Casa Que Canta’ website: a technically
sound, aesthetically pleasing, bold and impactful design;
 both informative and compelling enough to engage a high percentage of visitors;
 visitors are able to chat, email or call via telephone or computer for more information.
Organic and Paid Search Competition
Calls or leads that originate from the internet comprise, on average, 80 to 90% of non-referral
sales. As such, the effectiveness of the website to bring visitors in from search engines and
convert them from viewers into customers is paramount.
Casa Que Canta has hired a house manager that also specializes in website design, search engine
optimization and online marketing. He previously worked as the Director of Online Marketing
for a medical air transport company and was hired just weeks before the company officially filed
for Chapter 11 Bankruptcy. During the restructuring, he successfully developed and
implemented a marketing and search engine optimization plan that increased online sales by
nearly 250% over a two-year period. The company successfully emerged from bankruptcy. An
aggressive but very specific plan is utilized, targeting a range of keywords for both SEO and paid
advertising that has already been well researched and determined.

As a general rule, people will make a decision when they first arrive at a website within the first
3 seconds as to whether they will stay on the page or leave it. This principle drove the design and
structure for Casa Que Canta’ website: a technically sound, aesthetically pleasing, bold and
impactful website that is informative and compelling enough to engage a high percentage of web
visitors. Since no product can be purchased and no service can just be scheduled, all sales require
the interaction of the customer with one of our staff members, which generally are prompted by
questions or requests for additional information by the potential customer. Three options are
available for individuals to acquire additional information on the website; email, live chat and
telephone. However, for all, the sales strategy shall remain the same; honest, direct and easy to
understand.
4.7 Pricing Strategy
Casa Que Canta’ pricing strategy for the Camelback facility is based on cost, gross margin
objectives, market prices and perceived value. The Camelback facility’s price structure was
developed by comprehensively researching and analyzing comparable facility pricing. We have
intentionally priced the Camelback facility well below the competition, whose facilities are of
lesser quality, luxuriousness and services.
Although the Camelback facility’s pricing is below the industry standard and competitor prices,
we surpass the quality and luxuriousness with our staff, living environment, amenities, products
and services.
We have incorporated a graduated pricing discount for the first 18 months. Whereas, our
monthly charges are as follows:
MONTHS PRICE PER MONTH

1-6 25,900
7-12 30,900
13-18 35,900
19-24 40,900
We intend to incorporate cost-of-living increases equal to 3%, beginning in year 3, with a

compounded 3% increase annually thereafter.
4.8 Distribution Channels
Casa Que Canta has contracted client placement agreements with Rehab AZ and Renaissance for
the first 24 months. The contracted client placement agreements provide for the operational 24
months seasoning of the Camelback facility that the industry demands of rehab placement
referral services (physicians, hospitals, outpatient facilities, intervention facilitators, counselors).
Casa Que Canta has preemptively made agreements with numerous referral services. Whereas,
predicated upon the fulfillment of the aforementioned 24 months’ operational seasoning

requirements, several referral sources have issued letters of intent (see Exhibit UNKNOWN) to
place clients at the Camelback Mountain Rehab facility.
The clients that seek the level of care and services that Camelback provides are typically not
concerned with geographical location and are driven solely by bed space availability, as facilities
that offer this type of luxury care and services operate at or near 100% occupancy. Most all
rehabs have a waiting list of over 28 days.
4.9 Promotion and Advertising Strategy
The goal of a promotion and advertising strategy is to inform or drive as many possible
customers to your business in the places that will be the most cost effective and advantageous
towards creating a sale. The marketing plan at Casa Que Canta focuses primarily on building
relationships with counselors, outpatient facilities and other treatment centers. All of these places
have a constant supply of individuals that not only qualify to receive treatment but satisfy one of
the major criteria for reimbursement through insurance companies. Due to their efforts to cure
their addiction through those channels first, insurance companies are required to pay for the
inpatient services if they were not successful through outpatient methods. Casa Que Canta makes
a continual effort to build upon all of the relationships with these entities and has established
placement arrangements to ensure that all referring parties are properly compensated and willing
to continue a mutually beneficial working relationship.
The second focus for marketing is the internet and web-driven sales. No channel is more
important than the internet in today’s economy for attracting and maintaining a strong customer
base. Whether it is through direct sales or simply from the use of submitted reviews about a
company’s performance on a forum, the internet can grow or kill a business very quickly. Casa
Que Canta has placed a strong focus on a highly functional, aesthetically-pleasing website and
continually monitors analytics from viewer tendencies and opinions to refine it. The marketing
aspect is twofold with attention towards SEO (search engine optimization) and paid advertising.
The knowledge brought to the table in this area is highly competent and the general lack of
knowledge in this area across the industry will make the gains of success from our website easier
to obtain and keep.
4.10 Sales Strategy
The ability to turn website visitors or callers into customers is crucial to the success of any
business. The sales strategy for Casa Que Canta primarily depends on referrals, website and
telephone generated traffic and sales. More than likely, all non-referral clients will find our
program one of two ways; by word of mouth or a search on the internet. Those that originate
from the Internet will comprise an average of 80 to 90% of non-referral sales. As such, the
effectiveness of the website to bring visitors in from search engines and convert them from

viewers into customers is paramount. The website and online marketing strategy is discussed
further in the Web Marketing Strategy section.
When a potential customer calls or contacts Casa Que Canta for information, a member of the
staff will provide answers to all of their questions in a direct and clear manner. The quality of the
program, the luxury and comfort of the facility and the extremely affordable rates should be
more than enough to fill every bed year round. Potential customers will not speak with a member
of a sales team. Instead, communication will be with an actual member of the Center’s staff. The
entire staff, from counselors to medical personnel, is qualified and highly capable of handling
sales calls. Inquisitive minds that are deciding on a drug and alcohol rehab do not need or want
to be “sold”. They need specific information and assurance that they will receive the treatment
they need to overcome an addiction that is destroying their life. As such, Casa Que Canta
believes that it is more appropriate for potential customers to speak with those who are actually
involved in the program and process as they will provide the highest level of information and can
honestly speak about treatment, activities, therapy, schedules, policies, etc… As such, all staff
members receive semi-annual bonuses for maintaining our pre-determined occupancy levels
through their direct service to our customer base.
Casa Que Canta is transparent in all aspects, including:
 cost of treatment, including any possible additional costs that may be incurred;
 type of treatments administered;
 expected length of treatment;
 accreditations and licenses;
 experience and background of staff and medical personnel;
 meals and nutritional options;
 requirements of clients;
 drug use and safety policies;
 program termination policies;
 options for aftercare and therapy;
 patient privacy;
 client testimonials and experiences.
Exit interviews are conducted with all clients upon completion of their programs. With a client’s
consent, these interviews are included on the website as customer testimonials.

4.11 Sales Forecast
The sales forecast is structured based on the contracted client placement agreements that provide
for full occupancy of the 10-bed Camelback facility for the first 24 months. The contracted client
placement agreements provides the rate of $25,900 for the first 6 months, $30,900 for months 7
through 12, $35,900 for months 13 through 18 and $40,900 for months 19 through 24. The
placement contracts are also factored into the occupancy predictions, as well as the cost of sales.
While the contracts may not be necessary, the first two years have guaranteed full occupancy
secured via contracts with Rehab AZ and Renaissance Recovery Center.
Once we reach month 19 and beyond, we will no longer offer any rate discounts. Therefore, we
will charge the full rate of $40,900 per month from that point forward. We have incorporated a
3% cost-of-living increase annually, beginning in year 3. The monthly rate in year 3 is $42,127.
Subsequently, the monthly rate in year 4 is $43,391 and in year 5, the monthly rate is $44,693.
The below sales forecast table conveys the guaranteed contracted client placement agreements
revenue for years 2014 and 2015. For the un-contracted years, 2016, 2017 and 2018 depicted in
the sales forecast table, we show 3 scenarios; worst case scenario 80% occupancy, best case
scenario 100% occupancy and expected case scenario 98% occupancy. As previously stated on
the chart breakdown for the “facility capacity and utilization of residential (non-hospital) case,
by facility operation and primary focus of facility”, most facilities are able to operate at a
utilization level well above 85%, with the industry average utilization at 93%. Nearly half of the
private treatment centers ran above 90% utilization rate at all times. All but 58 of them ran above
50% utilization.
SALES FORECAST
ST
OCCUPANC YEAR JANUARY 1 QTR 2ND QTR JULY 3RD QTR 4TH QTR ANNUALLY
Y
100% 2014 259,359 777,000 777,000 309,000 927,000 927,000 3,408,000

100% 2015 337,002 1,077,00 1,077,000 409,000 1,227,000 1,227,000 4,608,000
0
80% 2016 337,002 1,011,00 1,011,006 337,002 1,011,006 1,011,006 4,044,024

Worst 6
100% 2016 421,270 1,263,81 1,263,810 421,270 1,263,810 1,263,810 5,055.240
Best 0
98% 2016 412,844 1,238,53 1,238,532 412,844 1,238,532 1,238,532 4,954,128
Expected 2
80% 2017 347,126 1,041,37 1,041,378 347,126 1,041,378 1,041,378 4,165,512

Worst 8
100% 2017 433,908 1,301,72 1,301,724 433,908 1,301,724 1,301,724 5,206,846
Best 4
98% 2017 425,229 1,275,68 1,275,687 425,229 1,275,687 1,275,687 5,102,748
Expected 7

80% 2018 357,540 1,072,62 1,072,620 357,540 1,072,620 1,072,620 4,290,480
Worst 0
OCCUPANC YEAR JANUARY 1ST QTR 2ND QTR JULY 3RD QTR 4TH QTR ANNUALLY
Y
100% 2018 446,925 1,340,77 1,340,775 446,925 1,340,775 1,340,775 5,363,100
Best 5
98% 2018 437,986 1,313,95 1,313,958 437,986 1,313,958 1,313,958 5,255,832
Expected 8
5.0 Management
The combined management teams of PVR, Casa Que Canta and PVR represent a diverse
background spanning more than 265 years combined total experience in medical, behavioral
health, substance abuse, drug and alcohol rehabilitation management, mergers and acquisitions,
complex structured financial transactions, residential and commercial real estate, investment
hedging, real estate and business law. Our combined management team is truly our biggest asset
and with our management team, there simply is not much that we cannot do.
5.1 Company Organization
Paradise Valley Rehab, Inc. is externally managed under the terms and conditions of a contract
with PVR Realty Advisors, LLC to operate the day to day business of the REIT. PVR Realty
Advisors, LLC, as well as Paradise Valley Rehab, Inc., are primarily managed by the Advisory
Director and Chairman of the Board Daniel L. Case, Sr., Advisory Director and President
Richard A. Block, Advisory Director George M. Papa, Independent Director Robert H. Myers,
Esq., Independent Director Kevin D. Curran, Independent Director Donna L. Michaelsen and
Independent Director Matthew T. Longs, Jr.
Casa Que Canta has a contract with PVR to operate the day to day business of the Camelback
Mountain Rehab facility. Casa Que Canta and PVR’s Board of Directors are mirrored. Casa Que
Canta and PVR are both primarily managed by Chairman of the Board and Chief Executive
Officer Daniel L. Case, Sr., President and Medical Director J. Carvel Jackson, D.O., P.C., Vice
President and Assistant Medical Director Lawrence Robert Reader, Jr., M.D., Compliance and
Auditing Accountability Advisor H. R. Brown, A.S.U.D.C., Executive Director Steven R.
Brown, L.C.S.W., Chief Financial Officer and Chief Operating Officer Richard A. Block, and
Comptroller Bradley Malawy.

5.2 Management Team
PVR’s key management duties, responsibilities, unique skills and compensation are as follows:
Advisory Director and Chairman of the Board Daniel L. Case, Sr.
It is Mr. Case’s duty and responsibility to oversee all aspects of the operations of the REIT,
including but not limited to, asset acquisition, asset management, asset operations, investment
portfolio, complex structured financial transaction development, asset protection, tenant
relations, investor relations and funding procurement. Mr. Case brings with him a diverse
background of 27 years of business experience. Mr. Case is a true entrepreneur as he is or has
been involved with numerous companies, including but not limited to, trucking companies,
international airlines, freight forwarding companies, international trading companies,
international steel manufacturers, pressurized fluid bed combustion electric generating power
plants, commercial and residential construction companies, commercial lending corporations,
holding companies, investment companies, investment trusts, Master Limited Partnerships,
equity groups, thoroughbred breeding centers and thoroughbred racing centers.
Mr. Case’s compensation package is derived from PVR Realty Advisors, LLC’s REIT
Management Agreement with Paradise Valley Rehab, Inc. Whereas Paradise Valley Rehab, Inc.
pays PVR Realty Advisors, LLC up to 6% of the purchase price of newly acquired REIT assets.
Thereafter, Mr. Case receives 30% of PVR Realty Advisors, LLC fees earned.
Advisory Director and President Richard A. Block
It is Mr. Block’s duty and responsibility to directly oversee all mezzanine loans, first mortgages,
second mortgages and other types of mortgages, as well as venture capital funding practices.
Additionally, Mr. Block is involved with the day to day operations of the REIT, including but
not limited to, asset acquisition, asset management, asset operations, investment portfolio, asset
protection, tenant relations, investor relations and funding procurement.
Mr. Block has a high level of expertise in corporate reorganization, recapitalizations, consulting,
mergers and acquisitions, litigation management and various court appointments, such as
receiverships, and commissionerships in condemnation. He specialized in resolving complex
financial and business issues for companies and properties for more than 32 years and has an
emphasis in real estate and intellectual properties. Mr. Block’s position often entails asset-based
liquidation or recapitalization of a property or company and includes asset analysis and
disposition. His extensive experience in receiverships, consulting, and merchant banking has
been derived from a combination of business experience and formal education. (Mr. Block has a
Bachelor of Science in Finance and a Juris Doctorate in Law.) Among his many engagements,
Mr. Block was the Federal Court-appointed Receiver who consolidated the Indian Motorcycle
trademarks, recapitalized the company and sold it for more than enough money to pay all
creditors in full (about $100 million). His activities in the real estate industry include resolving

troubled companies by taking management control, completing the development work, then
selling the finished properties. He provides his services through his company, Sterling
Consulting Corporation, which is wholly owned by Mr. Block and his wife.
Mr. Block’s compensation package is derived from PVR Realty Advisors, LLC’s REIT
management agreement with Paradise Valley Rehab, Inc. Whereas Paradise Valley Rehab, Inc.
pays PVR Realty Advisors, LLC up to 6% of the purchase price of newly acquired REIT assets.
Thereafter, Mr. Block receives 25% of PVR Realty Advisors, LLC’s fees earned.
Advisory Director George M. Papa
Mr. Papa’s duties and responsibilities are to directly oversee all the commercial real estate
acquisitions and holdings.
Mr. Papa has been an active real estate broker and land sub divider since 1976, which activity
included the development of ‘The Burke Ranch’ and ‘Shadow Canyon’ in the pine trees of
Northern Arizona. He is currently a member of the Maricopa County Multiple Listing Service
(MLS) and is the broker of Ranger Realty. For twenty-five years, he owned and operated a water
utility company at Show Low, Arizona that consisted of five deep water wells and over nine
miles of main-line transmission pipe. This company grew to serve 250 residential users in six
subdivisions. Mr. Papa is an accomplished author, having copyrighted sixteen highly researched
non-fiction biographies, including Biblical, American History; Renaissance; the Wild West; and
Vietnam genres. He has also been an active missionary and volunteer for his church throughout
is lifetime and has served in the U.S. Army as a First and Second Lieutenant, a volunteer at the
Infantry Officer Candidate School (OCS) in Ft. Benning, Georgia and served a full tour of duty
in Vietnam. Chicago born and a lifelong resident of Arizona, his lineage includes four great-
grandparents who pioneered in rural northern Arizona. Mr. Papa is married with six children and
ten grandchildren.
His compensation package is derived from PVR Realty Advisors, LLC’s REIT Management
Agreement with Paradise Valley Rehab, Inc. whereas Paradise Valley Rehab, Inc. pays PVR
Realty Advisors, LLC up to 6% of the purchase price of newly acquired REIT assets. Thereafter,
Mr. Papa receives 20% of PVR Realty Advisors, LLC’s fees earned.
Casa Que Canta, LLC and PVR Rehab Management Services, LLC
Casa Que Canta and PVR’s key managers are mirrored. Their duties, responsibilities, unique
skills and compensation are as follows:
Chairman of the Board and CEO Daniel L. Case, Sr.
It is Mr. Case’s duty and responsibility to oversee all aspects of the operations of Casa Que
Canta and PVR.
Mr. Case’s compensation package from Casa Que Canta and PVR is $1,200 per year from each
of the LLCs, totaling $2,400 per year.

President and Executive Director Timothy P. Chapman, M.A., Msc.D.
Vice President and Medical Director Lawrence Robert Reader, Jr., M.D.
It is Dr. Reader’s duty and responsibility to oversee all aspects of the Camelback facility,
including but not limited to, being the attending physician, physical examination and full
psychological evaluation of each client upon admission, continued client care, pharmacology
therapy, detoxification, individual therapy and group therapy. Additionally, Dr. Reader
personally evaluates policies and procedures, staffing, advertising, marketing, nutrition, activities
and recovery processes.
Dr. Reader’s compensation package from Casa Que Canta and PVR is $60,000 per year, as well
as dividends from Paradise Valley Rehab, Inc.
Compliance and Auditing Accountability Advisor H.R. Brown, A.S.U.D.C.
It is Mr. H.R. Brown’s duty and responsibility to perform a monthly audit of all policies and
procedures, accountability and compliance of the Camelback facility.
His compensation package from Casa Que Canta and PVR is $24,000 per year, as well as
dividends from Paradise Valley Rehab, Inc.
Executive Director, Steven R. Brown, L.C.S.W.
It is Mr. Steven Brown’s duty and responsibility to oversee any and all of the day to day
administrative, operational and clinical management, to develop and implement all aspects of the
Camelback facility substance abuse program, handle client relations, scheduling, hiring,
dismissal, programming and counseling.
His compensation package from Casa Que Canta and PVR is $100,000 per year, as well as
dividends from Paradise Valley Rehab, Inc.

Chief Financial Officer and Chief Operational Officer Richard A. Block
It is Mr. Block’s duty and responsibility to oversee all financial and operational aspects of the
Camelback facility.
Mr. Block’s compensation package from Casa Que Canta and PVR is $12,000 per year from
each of the LLCs, totaling $24,000 per year, plus the above-stated income as PVR Realty
Advisors, LLC, as well as dividends from Paradise Valley Rehab, Inc.
5.3 Management Structure and Style
Paradise Valley Rehab, Inc.’s Organizational Chart
Daniel L. Case, Sr. -

Advisory Director and
Chairman of the Board
Richard A. Block
- Advisory George M. Papa -
Director and Advisory Director
President Robert H. Kevin D. Donna L. Matthew T.
Myers, Esq. - Curran - Michaelsen - Longs, Jr. -
Independent Independent Independent Independent
Director Director Director Director

Casa Que Canta and PVR Organizational Chart
Daniel L. Case, Sr. -

Chairman of the Board
and CEO
J. Carvel Jackson, D.O.,

P.C. - President and
Medical Director
Lawrence Robert
Reader, Jr., M.D. - Vice-
President and Assistant
Medical Director
H.R. Brown, A.S.U.D.C.

Richard A. Block - CFO
- Compliance Auditing
and COO
Accountability Advisor
Bradley Malawy -
Comptroller
Steven R. Brown,
L.C.S.W. - Executive
Director
Chef/ Personal Trainer Registered Nurse
Licensed Substance Licensed Substance

Abuse Counselor, Abuse Technician,
Driver Chaperone Driver Chaperone
Behavioral Health
Specialist, Driver
Chaperone
Certified Nursing
Assistant

5.4 Ownership
NAME # SHARES HELD % OF COMMON STOCK % OF ISSUED STOCK
Advisory Directors 386,109 .006318 .37609
Independent Directors 150,000 .002454 .14634
Casa Que Canta and PVR 166,668 .002727 .16260

Manager
Investors 322,221 .005272 .31436
Treasury Stock 60,086.113 .983227 -------
Total Number of Shares 61,111.111 100% 100%
Total Number of Issued 1,024,998 ------- -------

Stock
5.5 Professional and Advisory Support
Paradise Valley Rehab, Inc.’s corporate attorney is Robert H. Myers, Jr., Esq. Additionally,
Sterling Consulting Corporation provides all of PVR’s and its holdings accounting services.
5.6 Board of Directors
5.6.1 Paradise Valley Rehab, Inc.’s Board of Directors
Daniel L. Case, Sr. – Advisory Director and Chairman of the Board
Daniel L. Case, Sr. brings with him a diverse background of 27 years of business experience. Mr.
Case is a true entrepreneur as he is or has been involved with numerous companies, including but
not limited to, trucking companies, international airlines, freight forwarding companies,
international trading companies, international steel manufacturers, pressurized fluid bed
combustion electric generating power plants, commercial and residential construction
companies, commercial lending corporations, holding companies, investment companies,
investment trusts, Master Limited Partnerships, equity groups, thoroughbred breeding centers
and thoroughbred racing centers. Mr. Case is married and has 3 children.

Richard A. Block – Advisory Director and President
Richard A. Block has a high level of expertise in corporate reorganization, recapitalizations,

consulting, mergers and acquisitions, litigation management, and various court appointments
such as receiverships and commissionerships in condemnation. He has specialized in resolving
complex financial and business issues for companies and properties for more than thirty-two
years. He has an emphasis in real estate and intellectual properties. His position often entails
asset-based liquidation or recapitalization of the property or company and includes asset analysis
and disposition. Mr. Block’s extensive experience in receiverships, consulting and merchant
banking has been derived from a combination of business experience and formal education (Mr.
Block has a Bachelor of Science degree in finance and a Juris Doctorate in law). Among his
many engagements, Mr. Block was the federal court-appointed receiver who consolidated the
Indian Motorcycle trademarks, recapitalized the company, and sold it for more than enough
money to pay all creditors in full (about $100 million). Mr. Block’s activities in the real estate
industry include resolving troubled companies by taking management control, completing the
development work, then selling the finished properties. Mr. Block provides his services through
a company, Sterling Consulting Corporation, which is wholly owned by Mr. Block and his wife.
George M. Papa – Advisory Director
George M. Papa has been an active real estate broker and land sub divider since 1976, which
activity included the development of ‘The Burke Ranch’ and ‘Shadow Canyon’ in the pine trees
of Northern Arizona. He is currently a member of the Maricopa County Multiple Listing Service
(MLS) and is the broker of Ranger Realty. For twenty-five years, he owned and operated a water
utility company at Show Low, Arizona that consisted of five deep water wells and over nine
miles of main-line transmission pipe. This company grew to serve 250 residential users in six
subdivisions. Mr. Papa is an accomplished author, having copyrighted sixteen highly researched
non-fiction biographies, including Biblical, American History; Renaissance; the Wild West; and
Vietnam genres. He has also been an active missionary and volunteer for his church throughout
is lifetime and has served in the U.S. Army as a First and Second Lieutenant, a volunteer at the
Infantry Officer Candidate School (OCS) in Ft. Benning, Georgia and served a full tour of duty
in Vietnam. Chicago born and a lifelong resident of Arizona, his lineage includes four great-
grandparents who pioneered in rural northern Arizona. Mr. Papa is married with six children and
ten grandchildren.

Donna L. Michaelsen – Independent Director
Donna L. Michaelsen has 38 years of extensive diversified experience in business,

pharmaceutical and legal environments. She has worked with prestigious corporations and firms
such as Schein Pharmaceutical, Inc., Sanders & Parks, P.C. and Lewis Roca Rothgerber, LLP
where she specialized in quality, regulatory and process controls, project management, and legal
research and application. Ms. Michaelsen is an entrepreneur in the legal and retail sectors and
has been the recipient of several business awards and honors. Additionally, she has been an avid
long-term participant and supporter of several non-profit organizations and projects. She enjoys
spending time with her family, music, travel, being creative in the arts, is a published poetess and
has a keen interest in real estate and investing. Ms. Michaelsen is a widow with 5 children and 7
grandchildren.

5.6.2 Casa Que Canta, LLC’s and PVR Rehab Management Services, LLC’s Board of
Directors
Daniel L. Case, Sr. – Chairman of the Board and CEO
Daniel L. Case, Sr. brings with him a diverse background of 27 years of business experience. Mr.
Case is a true entrepreneur as he is or has been involved with numerous companies, including but
not limited to, trucking companies, international airlines, freight forwarding companies,
international trading companies, international steel manufacturers, pressurized fluid bed
combustion electric generating power plants, commercial and residential construction
companies, commercial lending corporations, holding companies, investment companies,
investment trusts, Master Limited Partnerships, equity groups, thoroughbred breeding centers
and thoroughbred racing centers. Mr. Case is married and has 3 children.
Lawrence Robert Reader, Jr., M.D. – Vice-President and Medical Director
EDUCATION:
PROFESSIONAL STUDY:
Universidad Autonoma de Guadalajara 1/81- 5/82
St. Lucia Health Sciences University 5/82- 5/84

-M.D. degree awarded
ECFMG Certification 11/83
Transitional Internship 7/84- 7/85

-Edward Sparrow Hospital
-Lansing, Michigan
Anesthesia Residency 7/85- 7/87

-Albert Einstein College of Medicine
-North Central Bronx Hospital
-Jacobi Medical Center
Fellowship: Cardiovascular/ Pediatric Anesthesia 7/87- 7/88

-Albert Einstein College of Medicine
UNDERGRADUATE STUDY:
Brigham Young University Provo, Utah (Zoology) 9/75; 5/76; 1/79- 12/80
Arizona State University Tempe, Arizona 5/80; 8/80
Mesa Community College Mesa, Arizona 5/75; 8/75; 9/78- 12/78
PRIVATE PRACTICE:
Anesthesiology Practice: 7/1988- present

Mesa Lutheran Hospital
Banner Baywood Hospital
Canyon Springs Surgicenter
Banner Desert Surgicenter
Banner Surgicenters of Arizona
DEA Waiver Certificate 12/2010
Co-Founded DEPENDENCY RELIEF SPECIALISTS: 1/2011
Treating opiate dependent clients in Mesa, AZ
Treatment Advocate Speaker for Reckitt Benckiser Pharmaceuticals Inc. 4/2012
PERSONAL DATA: Born: 3/31/57 Phoenix, Arizona

Family: Married to Helen E. Benson, 3 daughters, 2 sons
Languages: Fluent in Spanish, English, and Kekchi (Mayan Indian dialect)
LDS Mission: Guatemala 5/76--6/78, Eagle Scout- 1971
H.R. Brown, A.S.U.D.C. – Compliance Auditing Accountability Advisor
Mr. H.R. Brown is the Founder, President and CEO of Renaissance Ranch, Therapia Addiction
Healing Center for Men and Therapia Addiction Healing Center for Women. All three of these
corporations specialize in substance abuse treatment and utilize proven, evidence based
modalities. Renaissance Ranch was founded in 2002 and the Therapia Centers were founded in
2010. He has worked in the substance abuse field for the last 15 years with experience in all
aspects of Residential Substance Abuse treatment from operations, marketing, human resources
and counseling. Mr. H.R. Brown has licensed 7 different physical plants for these operations
overseeing procurement of licensure through city and state agencies. He has an additional 15
years of finance and business management experience, working as a National Sales Manager for
several business TV training networks as well as a national finance company. He also spent 5
years in the hospitality/hotel industry which allows for the extra guest service touches needed in
Residential treatment. Through his personal experience in recovery of over 16 years, he has
developed a passion for helping people understand and overcome the disease of addiction.
Mr. H.R. Brown is 50 years old and married to Karen Brown. They have three beautiful
children; Isabella (8), and twin 5 year old boys Nick and Zack. He and his family live in Cedar
Hills, Utah.
Steven R. Brown, L.C.S.W. – Executive Director
Mr. Steven Brown is a co-founder of Renaissance Ranch, a Residential Substance Abuse facility
located in the Salt Lake City area. Since 2001, he has been principally involved in the
development of several Residential and Outpatient Substance Abuse facilities in Utah and
Arizona. Currently, Steven is the Owner and Executive Director of an Intensive Outpatient
Program in Gilbert, Arizona.
Steven has worked in various areas and settings of Substance Abuse and Behavioral Health;
including Inpatient, Residential, Outpatient and Sober Living. He has served as President,
Executive Director, Clinical Director and Counselor, having comprehensive experience in the
business, administrative, operational and clinical management of both Residential and Outpatient
Substance Abuse facilities. His expertise lies in developing, implementing and managing all
clinical aspects of a Substance Abuse Program utilizing the best practices and standards of the
industry.
For 15 years, Mr. Brown has been devoted to helping addicts and their families find recovery
using both evidence and faith-based approaches. He has over 17 years of personal recovery,
lending to a passionate and purposeful approach to his work. In addition, he currently serves as
a Coordinator for the Addiction Recovery Program of his church.
Steven received a Master of Social Work from the University of Utah. He is currently a
Licensed Clinical Social Worker in Utah and Arizona, where he resides with his wife and two
children.
Richard A. Block – CFO and COO
Richard A. Block has a high level of expertise in corporate reorganization, recapitalizations,

consulting, mergers and acquisitions, litigation management, and various court appointments
such as receiverships and commissionerships in condemnation. He has specialized in resolving
complex financial and business issues for companies and properties for more than thirty-two
years. He has an emphasis in real estate and intellectual properties. His position often entails
asset-based liquidation or recapitalization of the property or company and includes asset analysis
and disposition. Mr. Block’s extensive experience in receiverships, consulting and merchant
banking has been derived from a combination of business experience and formal education (Mr.
Block has a Bachelor of Science degree in finance and a Juris Doctorate in law). Among his
many engagements, Mr. Block was the federal court-appointed receiver who consolidated the
Indian Motorcycle trademarks, recapitalized the company, and sold it for more than enough
money to pay all creditors in full (about $100 million). Mr. Block’s activities in the real estate
industry include resolving troubled companies by taking management control, completing the
development work, then selling the finished properties. Mr. Block provides his services through
a company, Sterling Consulting Corporation, which is wholly owned by Mr. Block and his wife.
6.0 Operations
6.1 Paradise Valley Rehab, Inc.’s Operations
Paradise Valley Rehab, Inc. is externally managed by PVR Realty Advisors, LLC, which we
refer to as our advisors. Our advisors’ principals are Daniel L. Case, Sr., Richard A. Block and
George M. Papa. Paradise Valley Rehab, Inc. has a contract with our advisors to manage our
day-to-day operations. Our advisors have substantial discretion with respect to decisions
regarding the selection, negotiation, financing and disposition of our investment, subject to the
limitations in our charter and the direction and oversight of our board of directors. Our advisors
also provide asset management, marketing, investor relations and other administrative services

on our behalf with the goal of maximizing our operations, cash flow and preserving our invested
capital. Our advisors perform their duties and responsibilities as our fiduciary under an advisory
agreement. The term of the advisory agreement ends one year after the closing of the purchase of
Casa Que Canta, subject to renewals by the board of directors for an unlimited number of
successive one-year periods.
Paradise Valley Rehab, Inc. operates under the direction of its board of directors, the members of
which are accountable to VRI and VRI’s stockholders as fiduciaries. VRI’s board of directors
has the ultimate responsibility for VRI’s operations, corporate governance, compliance and
disclosure. VRI has 7 members on its board of directors, a majority of which are independent of
VRI, VRI’s advisors and VRI’s affiliates. VRI’s bylaws also provide for a lead independent
director, who must be an individual who is not and has not been during the past 5 years, an
officer, director (including an independent director), employee or business associate of VRI’s
advisor or any affiliate. VRI charter requires that a majority of VRI’s directors be independent. A
majority of VRI’s independent directors are required to review and approve all matters the board
believes may involve a conflict of interest between VRI and VRI’s sponsor of affiliates. VRI’s
directors are elected annually by VRI’s common stockholders.
6.1.1 Casa Que Canta, LLC’s Operations
Casa Que Canta, LLC’s Camelback facility is operated and managed by PVR Rehab
Management Services, LLC under the terms and conditions set forth in the Rehab Management
Agreement. The operational structure of Casa Que Canta’ Camelback facility has been designed
to segregate the revenues between qualifying REIT income and non-qualifying REIT income
under IRS REIT tax code. Whereas, the Management Agreement with PVR serves to allocate
income received for products and services rendered which have been determined to be
exclusionary income per the IRS REIT tax code. Therefore, PVR provides, including but not
limited to, staffing requirements, insurance, transportation, consulting, client services, meals,
supplies, etc… necessary to provide the highest level of care and services. The Camelback
facility’s operational structure reduces and/or eliminates any corporate income tax burden
enabling PVR to retain revenues. These revenues are then passed through to the employees in the
form of higher wages, which allows the Camelback facility to deliver the highest quality staff,
services and amenities well within the median industry averages pricing.
6.1.2 PVR Rehab Management Services, LLC’s Operations
PVR Rehab Management Services, LLC is contracted with Casa Que Canta to provide all rehab
management services at Casa Que Canta’ Camelback facility. Terms and conditions of the
agreement provides for a fixed operating cost for PVR and the segregation of non-qualifying and
qualifying income under the IRS REIT tax code. Therefore, PVR provides all the day to day
management, services and operations, including but not limited to, all staffing, meals,
transportation, client services, maintenance and any and all necessities to provide the proper

functioning of the Camelback facility. PVR operates with a staff totaling 21 persons, comprised
of 11 full-time and 10 part-time employees. The Rehab Management Agreement with Casa Que
Canta provides for an annual income of $1,508,000 annually for the first 2 years, with a cost of
living increase of 3% annually beginning year 3 and beyond. This agreement is designed to
minimize any profits which have been determined as non-qualifying income under the provisions
of the IRS REIT tax code. Therefore, PVR has less than $100,000 net operating income. The
Camelback facility’s operational structure reduces and or eliminates any corporate income tax
burden and enables PVR to retain revenues. These revenues are then passed through to the
employee in the form of higher wages, which allows the Camelback facility to deliver the highest
quality staff, services and amenities well within the median industry average pricing.
Casa Que Canta and PVR maintains complete operational cohesiveness by mirroring its directors
and managers.
6.2 Operations Strategy
6.2.1 Paradise Valley Rehab, Inc.’s Operations Strategy
Paradise Valley Rehab, Inc.’s operations strategy is to invest substantially all of the net proceeds
from its offering in a diverse portfolio of real estate secured loans and direct investments in real
properties. VRI’s primary focus is on investments in commercial real estate located in the
Western and Southern United States and other areas where our affiliates or correspondents have
experience. VRI intends to acquire real estate secured loans, including mezzanine loans, first and
second mortgage loans, subordinated mortgage loans, bridge loans, variable interest rate real
estate secured loans where a portion of the return is dependent upon performance-based metrics
and other loans secured by real estate. In addition, we may invest directly in real estate that, in
the opinion of our board of directors, meets VRI’s investment objectives. VRI may acquire real
property either alone or jointly with another party. When fully funded, VRI intends to invested in
approximately equal amounts, as measured by the net proceeds of its offering, in both real estate
secured loans and direct investments in real estate.
VRI will continue to seek opportunities to acquire all of the equity interests or assets in other
companies, such as Casa Que Canta, whose operating assets are limited to real property and/or
real estate loans. Any such subsequent acquisitions would be pursued to expand VRI’s portfolio
of real estate and real estate secured loans and will be undertaken only if VRI obtains control of
the entity or substantially all of its assets. VRI will not make passive investments in other
companies that are engaged in the real estate business.
6.2.2 Casa Que Canta, LLC’s Operation Strategy

Casa Que Canta, LLC’s operations strategy is to segregate income between qualifying REIT
income and non-qualifying REIT income under the IRS REIT tax code. Casa Que Canta’ Rehab
Management Agreement with PVR allocates income received for products and services rendered
which are determined to be exclusionary income under the IRS REIT tax code. Casa Que Canta,
PVR, the Camelback facility and their strategic alliances have been designed to maximize
retained revenues. These retained revenues are directly utilized, in part, to provide the highest
level of care and services. The Camelback facility is able to maintain a quality staff through
attractive pay and benefit packages which are well above the local industry averages for each
position.
These strategic alliances take full advantage of the REIT IRS tax code, thus enabling the
Camelback facility to provide an unprecedented level of quality products and services well
within the median industry average pricing for luxury rehab facilities. Additionally, the retained
revenue as a benefit of the REIT IRS tax code assisted the Camelback facility to afford the
privilege to acquire the services of J. Carvel Jackson, D.O., P.C. and Lawrence Robert Reader,
M.D. as its medical directors and resident practitioners. Dr. Jackson and Dr. Reader are 2 of only
5 doctors who are exclusively licensed and permitted to prescribe Suboxone in Maricopa County,
Arizona. The copious amount of products and services, luxurious amenities, rates lower than
industry average, and the ability to prescribe Suboxone onsite gives the Camelback facility a
clear advantage over our competitors. It is Casa Que Canta’s pricing strategy to provide its
products and services at lower prices than industry average.
The Camelback facility’s prices are solely based on cost of goods sold and the required net
operating income combined.
The contracted Client Placement Agreements with Rehab Arizona, LLC and Renaissance
Recovery Center, LLC provide 100% occupancy for the first 24 months after close and
guarantees the gross revenue of $3,408,000 for the first year and $4,608,000 for the 2nd year.
These guaranteed revenues, coupled with fixed operating costs for the first 2 years of $1,508,000
annually, plus $300,000 for the first years’ marketing and $600,000 for the second year’s
marketing provide for a fixed net operating income, pre-debt servicing of $1,600,000 first year
and $2 million the second year.
It was necessary to discount our rates for the first 24 months to induce Rehab Arizona, LLC and
Renaissance Recovery Center, LLC to contract with Casa Que Canta, facilitating the industry
standard 24 month operational seasoning requirement for other referral services. Upon
conclusion of said 24 months operational seasoning numerous referral services have agreed to
refer clients to the Camelback facility as evidenced by numerous letters of intent (See
Appendix).
As stated in the rehab referral services letters of intent, the Camelback facility can expect nearly
100% occupancy of the full rate of $40,900 per month for the third year with a 3% cost of living
increase annually thereafter. With 100% occupancy at the full rate of $40,900 per month, the
Camelback facility expects to gross $5,055,240 for year 3. In year 3, we will increase the fixed
operating cost of $1,508,000 by 3%, totaling $1,553,240, as well as increasing the marketing
budget to $900,000 annually, providing for a fixed net income, pre-debt servicing of $2,602,000

for year 3. Furthermore, it should be noted, as stated in the rehab referral services letters of
intent, the Camelback facility can expect to maintain a waiting list of over 28 days.
Nationwide, residential drug treatment centers run near full occupancy, and in Arizona, the
patient to facility ratio is the third highest in the nation. The nation has simply too many addicts
and not enough treatment centers.
6.2.3 PVR Rehab Management Services, LLC’s Operating Strategy
PVR Rehab Management Services operating strategy is to employ exemplary staff members,
including Dr. Jackson and Dr. Reader, 1 of only 5 doctors permitted to prescribe Suboxone in
Maricopa County, Arizona. The benefits of the reduced tax burden enjoyed as a direct benefit of
the REITs IRS tax code assures our ability to provide pay and benefit packages to our staff that
are above the local industry average of each position. The Camelback facility operates within an
open door policy, encouraging staff members to address any issues that may arise before they
become problematic. Transitional staff meetings are held each coinciding shift change to
promote and enhance the evolutionary recovery process of the individual client, as well as
operational functions.
The Camelback facility provides individuals suffering from substance abuse a safe and
comfortable facility where they may be treated for drug and alcohol addiction in a noninvasive
and nonjudgmental environment. Clinically, the objective is to assess clients for substance abuse
problems, providing medical treatment when necessary and develop personalized behavioral
treatment plans to help alleviate or manage a patient’s underlying behavioral and mental health
disorders that attribute to the addiction. Treatments are administered and supplemented with
group therapy, interactive activities and outings, skill enrichment and personalized treatment
options, all within a high end luxury facility with a special focus on individual growth and
comfort.
The Camelback staff, in its entirety, continuously monitors and identifies areas for
improvements, or additional areas to be expanded or developed. By constantly striving to
improve efficiency, client care, employee morale and overall functionality of our model by
listening to feedback from clients and employees, hosting weekly client meetings and monthly
employee meetings. Moreover, maintaining strict financial control and identifying wasteful
spending focused on achieving symbiosis between financial growth and our humanitarian
commitment.
6.3 Location
6.3.1 Paradise Valley Rehab, Inc.’s Location

PVR’s main office is located at 4101 East Louisiana Avenue, Suite 300, Denver, Colorado
80246. Richard A. Block runs the Denver office, which handles all of the REIT’s legal,
accounting, records, investor relations and all the day to day functions of the REIT, including the
real estate mortgage investment portfolio utilization. The REIT operates a satellite office located
at 1116 East Kramer Circle, Mesa, Arizona 85203. Daniel L. Case, Sr. and George M. Papa head
the Mesa office, which handles the commercial real estate equity portfolio management and
utilization. Both offices are operated by PVR Realty Advisors, LLC under the terms and
conditions set forth in the REIT Management Agreement.
6.3.2 Casa Que Canta, LLC’s Location
Casa Que Canta’ main office is located at 6240 E. Cholla Lane, Paradise Valley, Arizona 85253.
6.3.3 PVR Rehab Management Services, LLC’s Location
PVR Rehab Management Services, LLC’s main office is located at 6240 E. Cholla Lane,
Paradise Valley, Arizona 85253.

6.4 Personnel
6.4.1 Paradise Valley Rehab, Inc.’s Personnel
Paradise Valley Rehab, Inc. is externally managed by PVR Realty Advisors, LLC, whose
principals are Daniel L. Case, Sr., Richard A. Block and George M. Papa. All three serve as
Advisory Directors of Paradise Valley Rehab, Inc. Additionally, PVR REIT has four
Independent Directors. The four Independent Directors are Robert H. Myers, Jr., Esq., Kevin D.
Curran, Donna L. Michaelsen and Matthew T. Longs, Jr.
The Advisory Directors compensation is derived from the REIT Management Agreement as
previously stated in the management section “5.2 Management Team”. The four Independent
Directors each receive $25,000 annually, plus expenses. It should be noted the Advisory
Directors, as well as the Independent Directors, all have an ownership interest in the REIT as set
forth in “6.1 Company Ownership” and therefore receive dividends prorated to their ownership
interest.
6.4.2 Casa Que Canta, LLC’s and PVR Rehab Management Services, LLC’s Personnel
Casa Que Canta, LLC’s and PVR Rehab Management Services, LLC’s, employ the following:
CASA QUE CANTA, LLC’S PERSONNEL/DIRECTORS
NAME TITLE FULL- PAY PER

TIME /PART- YEAR
TIME
Daniel L. Case, Sr. Chairman of the Board and CEO Part-Time $2,400
Timothy P. Chapman, President / Executive Director Part-Time $60,000

M.A., Msc.D.
Lawrence Robert Vice-President /Medical Part-Time $60,000

Reader, M.D. Director
H.R. Brown, Compliance and Auditing Part-Time $24,000

A.S.U.D.C. Accountability Advisor
Richard A. Block CFO/COO Part-Time $24,000
NAME TITLE FULL- PAY PER

TIME /PART- YEAR
TIME
Steven R. Brown, Executive Director Full-Time $100,000

L.C.S.W.
PVR REHAB MANAGEMENT SERVICES, LLC’S PERSONNEL/EMPLOYEES
SHIFT # OF POSITION FULL- HOURS HOURS HOURLY ANNUAL HOURS

EMPLOYEES TIME PER PER RATE SALARY PER
/PART- SHIFT WEEK YEAR
TIME
1st 1 Licensed Full-Time 8 40 $27 $56,160 2,080

Substance
Abuse
Counselor/Dri
ver
Chaperone
1st 1 Registered Full-Time 8 40 $27 $56,160 2,080

Nurse (RN)
1st 1 Behavioral Full-Time 8 40 $17 $35,360 2,080
Health
Technician/Dr
iver
Chaperone
1st 1 Chef/Personal Full-Time 8 40 $17 $35,360 2,080

Trainer
1st 1 Certified Full-Time 8 40 $10 $20,800 2,080
Nursing
Assistant
(CNA)/Driver
Chaperone
1st 1 Comptroller Full-Time 8 40 $15 $31,200 2,080
nd
2 1 Registered Full-Time 8 40 $27 $56,160 2,080
Nurse (RN)
2nd 1 Behavioral Full-Time 8 40 $17 $35,360 2,080
Health
Technician/Dr
iver
Chaperone
3rd 1 Registered Full-Time 8 40 $27 $56,160 2,080
Nurse (RN)
3rd 1 Certified Full-Time 8 40 $10 $20,800 2,080
Nursing
Assistant
(CNA)/Driver
Chaperone
1st 1 Registered Part-Time 8 16 $27 $22,464 832
Nurse (RN)
SHIFT # OF POSITION FULL- HOURS HOURS HOURLY ANNUAL HOURS
EMPLOYEES TIME PER PER RATE SALARY PER
/PART- SHIFT WEEK YEAR
TIME

1st 1 Licensed Part-Time 8 16 $18 $14,976 832
Substance
Abuse
Technician/Dr
iver
Chaperone
1st 1 Chef/Personal Part-Time 8 16 $17 $14,144 832

Trainer
1st 1 Certified Part-Time 8 16 $12 $9,984 832
Nursing
Assistant
(CNA)/Driver
Chaperone
2nd 1 Registered Part-Time 8 16 $27 $22,464 832
Nurse (RN)
2nd 1 Behavioral Part-Time 8 16 $17 $14,144 832
Health
Technician/Dr
iver
Chaperone
2nd 1 Certified Part-Time 8 16 $10 $8,320 832
Nursing
Assistant
(CNA)/Driver
Chaperone
3rd 1 Registered Part-Time 8 16 $27 $22,464 832
Nurse (RN)
3rd 1 Behavioral Part-Time 8 16 $17 $14,144 832
Health
Technician/Dr
iver
Chaperone
6.5 Operations Expenses
MANAGEMENT AND PERSONNEL
SHIFT HOW MANY DESCRIPTION FULL- ANNUAL

TIME / COST
PART-
TIME
n/a 1 Chairman of the Part- $2,400

Board and CEO Time

TIME / COST
PART-
TIME

n/a 1 President/Medical Part- $60,000
Director Time
n/a 1 Vice-President Part- $60,000

/Assistant Medical Time
Director
n/a 1 Compliance and Part- $24,000
Auditing Time
Accountability
Advisor
n/a 1 CFO/COO Part- $24,000
Time
n/a 1 Executive Director Full- $100,000
Time
1st 1 Licensed Full- $56,160

Substance Abuse Time
Counselor/Driver
Chaperone
1st 1 Registered Nurse Full- $56,160
(RN) Time
1st 1 Behavioral Health Full- $35,360
Technician/Driver Time
Chaperone
1st 1 Chef/Personal Full- $35,360
Trainer Time
1st 1 Certified Nursing Full- $20,800
Assistant Time
(CNA)/Driver
Chaperone
1st 1 Comptroller Full- $31,200
Time
2nd 1 Registered Nurse Full- $56,160
(RN) Time
2nd 1 Behavioral Health Full- $35,360
Chaperone
3rd 1 Registered Nurse Full- $56,160
(RN) Time
3rd 1 Certified Nursing Full- $20,800
Assistant Time
(CNA)/Driver
Chaperone
1st 1 Registered Nurse Part- $22,464
(RN) Time
1st 1 Licensed Part- $14,976
Substance Abuse Time
Technician/Driver
Chaperone
TIME / COST
PART-
TIME

1st 1 Chef/Personal Part- $14,144
Trainer Time
1st 1 Certified Nursing Part- $9,984
Assistant Time
(CNA)/Driver
Chaperone
2nd 1 Registered Nurse Part- $22,464

(RN) Time
2nd 1 Behavioral Health Part- $14,144
Chaperone
2nd 1 Certified Nursing Part- $8,320
Assistant Time
(CNA)/Driver
Chaperone
3rd 1 Registered Nurse Part- $22,464
(RN) Time
3rd 1 Behavioral Health Part- $14,144
Chaperone
TOTAL MANAGEMENT AND PERSONNEL 0
EXPENSES
ANNUAL
EXPENSE NAME COST
Accounting & Professional Fees $10,000
Annual Facility Licensing $30,000
Answering & Reminder Services $721
Attorney Fees $14,400
Bank Service Charge $2,400
Bottled Water Expenses $2,000
Building Maintenance $20,000
Business Cards & Letterhead $1,000
Business Liability Insurance $48,000

Car Gasoline $21,000
Car Insurance $5,000
Car Payments (4 cars) $30,000
Car Repair (4 cars) $2,000
Car Tax $4,000
Dues & Subscriptions $5,000
Education Expenses $4,000
Electricity $15,000
ANNUAL
EXPENSE NAME COST
Entertainment $50,000
Equipment Insurance $20,000

Paradise Valley Fire Department @ $600
$50/month
Food ($40/day/person) $146,000
FT Employee Health Insurance $67,000
FT Employee 401k & Fees (matching 2.5% $13,150
gross pay)
Gas $3,600
Homeowners Insurance $5,000
Janitorial Expenses $10,000
Land Maintenance $6,000
Malpractice Insurance $20,000
Miscellaneous Expenses $10,000
Personal Property Depreciation $20,000
Pool Services @ $120/month $1,440
Property Tax $17,597
Sewer $1,800
Trash Service @ $197/quarter $788
TV/Internet/Telephone $3,600
Vaccines & Medical Supplies $1,200
Water $7,000
Worker's Compensation $7,000
Yoga Instructor $15,600
TOTAL EXPENSES 0
TOTAL OPERATIONAL EXPENSES
DESCRIPTION TOTAL
Total Management and Personnel 017,024
Total Expenses 0
TOTAL OPERATIONAL EXPENSES 0
TOTAL BUDGET
DESCRIPTION TOTAL
Total Operational Expenses $1,458,920
Total Profit $49,080
TOTAL BUDGET 0

6.6 Legal Environment
6.6.1 PVR REIT Inc.’s Legal Environment
Deferred to Richard A. Block
6.6.2 Casa Que Canta, LLC’s Legal Environment
Casa Que Canta, LLC is licensed by the State of Arizona Department of Behavioral Health
Sciences as a “Level One Sub-acute Agency” Inpatient Residential Center. As such, in order to
maintain the Camelback facility’s licensing, it must ensure the health, safety and welfare of its
clients. Furthermore, it is licensing criteria that the Camelback facility provides the following:
 one staff member present at all times with current documented successful completion of
first aid and CPR training that includes a demonstration of the staff members’ ability to
perform CPR at the point in which they were hired;
 ensure a behavioral health tech is available to admit an individual at all times;
 a written agreement with a psychiatrist to provide services as needed;
 behavioral health medical practitioner available to see clients at least 5 days per week and
interacts with each client at least once per week;
 an R.N. present full-time to provide or oversee medical services;
 a sufficient number of behavioral health professionals to meet the needs of clients;
 the client receives nursing assessments within 24 hours after admission by registered
nurse or medical practitioner, unless medical records are provided indicating client has
received a physical exam within the 12 months before the date of the client’s admission;
 a psychiatrist or behavioral health medical practitioner assesses and reviews other

information or records concerning the clients and interacts with them;
 ensure that a progress note is written in a client record at least once every shift;
 ensure that counseling is offered as described in R9 20 201 (A)(2)(D) provided by

behavioral professionals or behavioral health technician;

 ensure that each counseling session is recorded in the client record to include the date,
amount of time spent, the location if occurred off the premises, whether the counseling
was individual, family, our group counseling, the treatment goals addressed, the clients
observed responses to counseling session and the signature and professional credential or
job title of the staff member who provided the counseling and the date signed.
6.7 Credit Policies
6.7.1 Accounts Receivable
Casa Que Canta, LLC receives all payments in advance for all client services. Therefore, there
are no outstanding accounts receivable balances.
6.7.2 Accounts Payable
Casa Que Canta, LLC pays all vendors and accounts payable within 30 days of receipt and
verification of an invoice. It should be noted that we issue purchase orders for all acquisitions.
7. Financials
The Financials section should be frosting on a cake. You have outlined a great business concept,
demonstrated a real need in the marketplace, shown how you will execute your ideas, proven that
your team is just right to manage the venture, and now you will show how much money
everyone is going to make. Note, however, that if your business concept is weak, there is no
market for your product/service, your execution is poor, or if your management team is
incompetent, then your financial plans are doomed to failure. If you have not convinced your
potential investors and loan officers by now of the strength of your concept, then they will not be
convinced by your financials.
It is important to have strong, well-constructed financials. If you cannot show that your great
concept is going to make (lots of) money, your potential investors and loan officers will quickly
lose interest. To construct your financials, it is highly recommend that you start with your
development and operations plan to create a schedule or timetable of development and
operational activities. From these development activities, you can then create cash-flow
projections, income statements, and pro forma balance sheets for at least three years into the
future, and sometimes five. As a rule of thumb, your financial projections should extend far
enough into the future to the point where your business has achieved stable operations. The first
year of your financial statement projections should be month-by-month since cash flows are
critical in the early stages of any startup. Second and third year financial statements should be
quarterly, and fourth and fifth years should be annual. If possible, it is useful to include best case,

expected case, and worse case scenarios for your financials. This allows you and potential
investors to explore the upside potential and downside risks of your venture. Be sure that your
financial projections are in congruence with the other sections of your plan. For example, if you
say you will open three stores in Year 2 and your financials show you opening five stores,
potential investors will quickly lose confidence in your plan.
The Financials section should be a discussion and description of your financial projections -- put
the actual financial spreadsheets in the appendices. Describe the timing and amount of
investment that you will require to achieve your plans. Then demonstrate that this investment is a
good one by showing that profits, assets, and ROI are all favorable as the business progresses.
When potential investors and loan officers are finished with this section, they should be anxious
to invest.
Guidelines
 Consult your accountant and your attorney
 Be conservative and honest
 Use standard industry forms and formats
7.1 Start-up Funds
The section should identify all the costs associated with starting the business, expanding a
current business, or taking over a business as well as the sources of investment capital and/or
borrowed money. Include a start-up budget or estimate to account for the initial cost of the
business.
Elements to consider when preparing a start-up budget include:
 Personnel (costs prior to opening)

 Legal/ Professional Fees
 Occupancy
 Equipment
 Supplies
 Salaries/Wages
 Income
 Utilities
 Payroll expenses
 Licenses/Permits
 Insurance
 Advertising/Promotions
 Accounting
7.2 Financial History and Analysis (current businesses only)
A solid analysis of the past must precede any serious attempt to forecast the future. The Financial
History and Ratios spreadsheet allows you to put a great deal of financial information from other
statements on a single page for ease of comprehension and analysis. Your financial information

is presented in dollars and percentages. Key financial ratios are calculated automatically. You
may also enter industry average ratios for comparison.
In an appendix, put year-end balance sheets, operating statements, and business income tax
returns for the past 3 years, plus your most current balance sheet and operating statement.
7.3 Current Financial Position (current, takeover or franchise businesses only)
Provide in detail the current financial position of the company. Present the current balance sheet
in an appendix. Include all outstanding debts in an easy to understand format. A debt schedule
may be useful here.
Debt Schedule
This table gives in-depth information that the financial statements themselves do not usually
provide. Include a debt schedule in the following format for each note payable on your most
recent balance sheet.
Debt Schedule Table
To Whom Origina l Original Present Rate of Maturity Monthly Security Current/Past

Payable Amt Date Balance Interest Due Payment Due
7.4 Operating Forecast
This section should provide an estimate of the sales and expenses your business will incur for a
twelve-month period. (Please refer to Appendix for Financial Projections.)
Be sure to document any sources of information or any assumptions used for calculations.
7.5 Break-Even Analysis
This section should provide a calculation for the break-even point in dollars and units for the
business. Include all assumptions upon which your break-even calculation is based. (Please refer
to Appendices for Break-Even Analysis spreadsheet.)
A break-even analysis determines sales volume in dollars, at a given price, required to recover
total costs.
Expressed as a formula, breakeven is:
Break-even Sales $ = ____Fixed Costs___

1- Variable Costs

Fixed costs are expressed in dollars but variable costs are expressed as a percent of the total sales
dollar amount. To obtain the break-even point in terms of number of sales, simply divide the
break-even sales (dollar amount) by the price of your product.
7.6 Balance Sheet
The balance sheet is a "snapshot" of what you own and what you owe on a specific date. A "Pro
Forma Balance Sheet" shows how things will be in the future, under given conditions, rather than
how they are now.
A balance sheet follows a standard format (please refer to the appendix for Balance Sheet
template), however, it may contain additional items depending on circumstances relating to the
business for which it is prepared. State the assumptions you used for all major changes between
your last historical balance sheet and the projection.
7.7 Income Statement
The income statement is a financial statement that reveals whether or not a business has earned a
profit or has suffered a loss after a specified period. (Please refer to the appendix for Income
Statement template.)
An income statement may also be referred to as a "profit and loss statement" (PNL) or an
"operating statement.”
A "Pro Forma Income Statement" is used to show how things will be under given conditions
rather than how they are at present.
Be sure to state any assumptions when creating your Income Statement.
7.8 Cash Flow
A cash flow statement identifies monthly inflows and outflows of cash. It reveals whether a
company will have enough money to meet its needs on a monthly basis. (Please refer to the
appendix for Cash Flow template.)
Use the Income Statement as a starting point. For each item, determine when you actually expect
to receive cash (for sales) or when you will actually have to write a check (for expense items).
Your cash flow will show you whether your working capital is adequate. Clearly if your cash on
hand goes negative, you will need more. It will also show when and how much you need to
borrow.
Explain your major assumptions, especially those which make the cash flow differ from the
Profit and Loss Statement, such as:

 If you make a sale in month 1, when do you actually collect the cash? When you buy
inventory or materials, do you pay in advance, upon delivery or much later?
 How will this affect cash flow?
 Are some expenses payable in advance?
 Are there irregular expenses, equipment purchase or inventory buildup which should be
budgeted?
8. [Offering OR Funding Request]
The Offering (or Funding Request) is where you make your pitch for money. If you have decided
to seek equity capital, then you need to offer the [POTENTIAL INVESTOR, VENTURE
CAPITAL FIRM, ANGEL, ALLIANCE PARTNER, FRIENDS AND FAMILY] a specified
share of your company in return for a specific amount of money. If you are seeking a loan, you
need to request a potential lender [BANK, CUSTOMER, FRIENDS AND FAMILY] for a
specific amount of money in return for the principal plus interest. In either case, it is important
that you be specific with your funding needs, sell the advantages of your proposal to the investor,
and make it clear how investors can get their money back, i.e. what is their gain (ROI). In
addition, it is important that you persuade investors that the deal you are offering is fair to them
and is supported by facts. Finally, remember that everything is open to negotiation, so do not
give away the farm on the first round.
8.1 Offer
Clearly, state the offer your business will use to approach potential investors. It is important here
to consider:
 What is the structure of the deal you are offering or seeking?

 How much money do you want?
 How much of the company are you willing to give away?
 How much interest are you willing to pay?
 What collateral do you have for a loan?
 What is the planned exit strategy for investors?
 What is the anticipated return on investment for investors?
8.2 Capital Requirements
Clearly, state the capital needed to start or expand your business. You should have a very clear
idea of how much money you will need to operate your business for the first full year. If
possible, summarize how much money has been invested in the business to date and how it is
being used. Describe why you need the funds and how both parties will benefit from the
opportunity. Keep in mind that one of the most common causes of new business failures is
under-capitalization. Investors and loan officers want to know when they will get their money

back, so be sure to explain how and when you will repay the investment or loan. If the loan for
initial capital will be based on security instead of equity, you should also specify the source of
collateral.
8.3 Risk/Opportunity
Risks are a part of any business, especially a new one. Here, it is important to show potential
investors and loan officers that you have taken into consideration the risk involved in starting or
expanding your venture. Illustrate the market, pricing, product, and management risks as well as
how you plan to cope with them.
Convey to the investor that the company and product/service truly fills an unmet need in the
marketplace. Describe and quantify the opportunity. Explain why you are in business along with
the reasons why you will be able to take advantage of this opportunity. Be sure to answer the
following questions that are usually asked by potential investors:
 Have you considered all the potential risks involved?

 Does your business have a contingency plan in place for all of the risks you have
mentioned?
 What makes this opportunity unique?
 What are the financial risks for your business? How will these risks be minimized?
 What is the worst-case scenario? How will your business handle this?
8.4 Valuation of Business
What is the value of your company? How do you calculate this value?
8.5 Exit Strategy
All good business plans include a section that lays out the strategy you will follow should
investors decide or need to cash out (end their involvement and recoup their investment). This
can involve, for example, selling the business, merging, a buyout by a partner/shareholder,
getting acquired or issuing an initial public offering (IPO). The strategy to be laid out here can be
based on a target dollar figure you want to reach, revenue growth, the market's reception to your
idea, or a consensus among top officers.
9.0 Appendix

Simple Business Plan - Paradise Valley Rehab

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Simple Business Plan - Paradise Valley Rehab

Uploaded by

Copyright:

Available Formats

PARADISE VALLEY REHAB, INC.

Paradise Valley Rehab, Inc.

Daniel L. Case Sr.

Paradise Valley Rehab, Inc. Business Plan Page 1

Statement of Confidentiality & Non-Disclosure

1.0 Business Description.............................................................................................................................................16

2.0 Products and Services...........................................................................................................................................26

3.0 The Market............................................................................................................................................................33

4.0 Marketing Strategies and Sales...........................................................................................................................59

Paradise Valley Rehab, Inc. Business Plan Page 2

8.0 Funding Request...................................................................................................................................................43

9.0 Refining the Plan...................................................................................................................................................45

Paradise Valley Rehab, Inc. Business Plan Page 3

Paradise Valley Rehab, Inc. Business Plan Page 4

BY ACCEPTANCE OF THIS DOCUMENT, THE RECIPIENT AGREES TO BE BOUND

Paradise Valley Rehab, Inc. Business Plan Page 5

Structure and Business Summary

Products and Services

Paradise Valley Rehab, Inc. Business Plan Page 6

Pharmacotherapy, or medical assisted therapy, is an industry accepted protocol and available

Paradise Valley Rehab, Inc. Business Plan Page 7

Given the large pool of potential

Paradise Valley Rehab, Inc. Business Plan Page 8

(12 months annually / 2 month LT treatment) x 6 clients = 36 Clients = 48 patient months

(12 months annually / 1 month ST treatment) x 4 clients = 48 Clients = 48 patient months

(12 months annually / 3 month LT treatment) x 2 clients = 8 Clients = 24 patient months

Thorough analysis of the marketplace

Paradise Valley Rehab, Inc. Business Plan Page 10

COMPETITOR LOCATION LUXURY RATING PRICE PER ANYTHING RELEVANT

Food: $70,000 Four stages of treatment:

AToN Center San Diego, Overall: $45,000/month Holistic approach to

Food: Biofeedback, EMDR, and

Offsite meetings include

Small group of clients for a

Paradise Valley Rehab, Inc. Business Plan Page 11

Cliffside Malibu, Overall: $53,000 Spirituality is generally

Treatment to obtain the signed

Passages Malibu, Overall: $80,000/month Not a 12-step facility and it

A third outpost expected to

Paradise Valley Rehab, Inc. Business Plan Page 12

Promises Malibu, Overall: $55,000 12 step program/holistic

Locations in Malibu, CA, Los

Sierra Tucson Tucson, Overall: $47,680 and up Holistic 12-step program.

Facility features myriad

Paradise Valley Rehab, Inc. Business Plan Page 13

Residents of all kinds are

COMPETITOR LOCATION LUXURY RATING PRICE PER ANYTHING RELEVANT

Summit Malibu Malibu, Overall: $48,000 Not a 12 step program and

Couples treatment offered.

Paradise Valley Rehab, Inc. Business Plan Page 14

 Business liability as well as errors and omissions insurance is underwritten by ING;

 Worker’s Compensation through Unknown;

 Malpractice Insurance through Unknown;

 401k through PVR 500 Index Fund.

Paradise Valley Rehab, Inc. Business Plan Page 15

 Daniel L. Case, Sr. – Chief Executive Officer;

 Timothy P. Chapman, M.A., Msc. D. – President and Executive Director;

 Christopher Geiger - Chief Operating Officer;

 Steven R. Brown, L.C.S.W. - Clinical Director;

 Richard A. Block – Compliance, Auditing & Accountability Advisor;

 Diana M. Case - Comptroller and Utilization Review Director

Description Year 1 Year 2 Year 3 Year 4 Year 5

Operating Costs 1,720,038 2,131,408

Total Expenses 2,957,068 6,735,431