Notes Receivable

9 Months Ended

Sep. 30, 2011

Notes Receivable

Note 6 – Notes Receivable

As of September 30, 2011 and December 31, 2010, the Company had approximately $58.1 million and $25.7 million in notes receivable, respectively. As of September 30, 2011 and December 31, 2010, the Company had approximately $38.1 million and $8.9 million, respectively, in Chattel Loans receivable, require monthly principal and interest payments and are collateralized by homes at certain of the Properties. As of September 30, 2011, the Chattel Loans receivable yielded interest at a stated per annum average rate of approximately 7.8% and had an average term remaining of approximately 15 years. These notes are recorded net of allowances of approximately $0.4 million as of both September 30, 2011 and December 31, 2010. During the nine months ended September 30, 2011 and year ended December 31, 2010, approximately $0.2 million and $0.8 million, respectively, was repaid and an additional $1.3 million and $0.4 million, respectively, was loaned to customers. During the three months ended September 30, 2011, the Company acquired approximately $30.2 million of Chattel Loans in connection with the Acquisition. (See Note 1(h) in the Notes to Consolidated Financial Statements contained in this Form 10-Q for discussion on the Company’s accounting policy with respect to these recently acquired Chattel Loans.)

As of September 30, 2011 and December 31, 2010, the Company had approximately $16.1 million and $16.7 million, respectively, of Contracts Receivable, including allowances of approximately $0.9 million and $1.4 million, respectively. These Contracts Receivable represent loans to customers who have entered right-to-use contracts. The Contracts Receivable yield interest at a stated per annum average rate of 16.1%, have a weighted average term remaining of approximately four years and require monthly payments of principal and interest. During the nine months ended September 30, 2011 and year ended December 31, 2010, approximately $5.6 million and $8.6 million, respectively, was repaid and an additional $4.7 million and $7.9 million, respectively, was loaned to customers.

On April 6, 2011, the Company closed on a $3.8 million note receivable with a stated interest rate of 15.0% per annum to the owner of Lakeland RV. Lakeland RV is a 700-site RV property located in Milton, Wisconsin. The note requires interest only payments of 9.0% and matures on May 1, 2016. The Company also holds a right of first refusal to match any offer received on Lakeland RV during the time the note is outstanding.