Real Estate presentation for investors that want to joint venture to gain experience in the acquisition of residential and commercial distressed real estate assets.

1. Residential Real Estate
For Investors
(Minimum $200K investment)
JOINT VENTURE PROGRAM

2. Investors:
What are we looking for?
Investors with at least $200K commitment for our Leveraged Joint Venture Program.
Leveraged JV Program (“dating system”) initiate relationship with investor with the
ultimate goal of proving ourselves and turning this into a long term relationship.
Long term investor relationship (“marriage system”) to maximize investor profit splits.

3. Investment Criteria
•Distressed Residential Real Estate Assets
•Single Family Residences – Two to Four Units
•Southern California-Los Angeles, Orange, San Diego, Ventura, Riverside
& San Bernardino Counties.
•Properties acquired will be under 70% of Fair Market Value
•Properties over 70% FMV only considered when one or more of the compensating
factors apply;
a)End buyer lined up.
b)Hot local market activity.
c)Days on market is under 15 days.
d)Minimum rehab required.
Leveraged Joint Venture Option for Investor

4. •100% of invested capital at work on one
property
•No risk on management team
•Investor takes on all risk and liability for
purchase and rehab of property.
•Generally no option to leverage capital
•Many investors are unknowledgeable
and make unwise decisions.
•Investor is not on the frontline which
which causes delays in decision making
and lost opportunities.
Joint Venture Options
•Investor more reliant on management
•Investor receives a smaller % split from
Net Profit.
•Investor has 2nd position at liquidation
•Investor has less control of funds
•Asset is NOT free and clear
Traditional Joint Venture Leveraged Joint Venture
DISADVANTAGES

5. •Investor has complete control of the deal
•Investor is in first position when the asset
is liquidated
•Investor controls all the funds
•Asset is owned free and clear
•4:1 increase in purchase power
•Exposure to capital is minimized
•Cash on Cash ROI improves
•Investor has a diversified portfolio
•Reaction time improves=better inventory
•Expert manager makes most decisions
based on local experience
•Relationships are maximized as reaction
time improves.
•Management shares majority of the risk
by securing 1st Deed of Trust
•Investor’s capital= Down Payment +
rehab, is always secured by the R.E.
Traditional Joint Venture Leveraged Joint Venture
ADVANTAGES
Joint Venture Options

6. Real Scenario: Investor with $215K commitment
Purchase Debits Credits
Purchase Price $200,000.00
Initial Deposit $2,000.00
Title Charges $1,500.00
Recording Charges $100.00
Escrow Charges $1000.00
Other misc. charges $400.00
Total Closing Cost $3,000.00
Balance due at closing $199,000.00 $199,000.00
Totals Acquisition
COST
$203,000.00 $203,000.00
TRADITIONAL JV. Buyer HUD
Purchase Debits Credits
Purchase Price $200,000.00
Initial Deposit $2,000.00
New Deed of Trust $185,250.00
Title Charges $1,500.00
Recording + misc. Charges $500.00
Escrow Charges $1,000.00
New Loan Charges
Loan Origination Fee $925.00
Discount Fee $6,,475.00
Underwriting Fee $1,500.00
Total Investor due at closing $24,650.00
Totals Acquisition COST $211,900.00 $211,900.00
Purchase: @ 70% FMV
Leverage: @ 65% ARV
LEVERAGE JV. Buyer HUD
Capital Required

7. Real Scenario: Investor with $215K commitment
TRADITIONAL JV. Buyer HUD
Purchase: @ 70% FMV
Leverage: @ 65% ARV
LEVERAGE JV. Buyer HUD
Resale Net.
Resale Debits Credits
Resale Price $285,500
Title Charges $1,400.00
Recording Charges $100.00
Escrow Charges $900.00
Real Estate Commissions
5%
$14,275.00
Credit towards Buyer’s
closing cost .
2%
$5,710.00
Total closing cost $22,385.00 $285,000.00
Total Resale NET $263,115.00 $263,115.00
Resale Debits Credits
Resale Price $285,500.00
Title Charges $1,400.00
Recording Charges $100.00
Escrow Charges $900.00
Real Estate Comm. 5% $14,275.00
Credit to Buyers’ c.c. 2% $5,710.00
Total closing cost $22,385.00 $285,000.00
Total Resale NET $263,115.00 $263,115.00

8. TRADITIONAL J.V.
Total Resale net $263,115.00
Totals Acquisition cost $203,000.00
Total Revenue
(acquisition – resale)
$60,115.00
Total Construction Cost
(7.5% of purchase price)
$14,000.00
LEVERAGE J.V.
Totals Acquisition cost $211,900.00
Total Resale net $263,115.00
Total Revenue
(acquisition – resale)
$51,215.00
Total Construction Cost
(7.5% of purchase price)
$14,000.00
Debt Service (90days) $5,557.50
Net Profit $31,657.50
Net Profit on Investment
*All ROIs are for informational or speculative purposes only. No investment guarantees are made on any investment shown on this
presentation. Please consult your investment advisor before investing with our group.
Net Profit $46,115.00

9. TRADITIONAL J.V.
Net Profit $46,115.00
Investor Split 40%
LEVERAGE J.V.
Net Profit $31,657.50
Investor Split 25%
Investor’s Cash out of
Pocket (D.P + rehab)
$38,650.00
Investor ROI $ $18,846.00
Investor’s Cash out of
Pocket
$217,000.00
Investor ROI % 8.68% Investor ROI % 20.47%
Net Profit on Investment
*All ROIs are for informational or speculative purposes only. No investment guarantees are made on any investment shown on this
presentation. Please consult your investment advisor before investing with our group.
Investor ROI $ $7,914.38

10. Traditional J.V.
Investor’s Capital
secured by real estate
$203,000.00
Investor’s Capital
unsecured by R.E.
$14,000.00
Leverage J.V.
Capital secured by
management 1st DOT
$185,250.00
Investors capital
secured w/ 2nd DOT
$38,650.00
*Transactions with
committed capital
5
Total commitment for 1
transaction
$217,000.00
Transactions with
committed capital
1
*Cash on cash ROI 8.68%
* Possible ROI $ with
committed capital
* $158,287.50
Net Profit on Investment
Cash on cash ROI 72.95%
*All ROIs are for informational or speculative purposes only. No investment guarantees are made on any investment shown on this
presentation. Please consult your investment advisor before investing with our group.
Investor’s Commitment $217,000.00

11. Leveraged Joint Venture Program.
How do I get started?
1) Pledge minimum capital commitment
2) Sign Joint Venture Agreement
3) 20% in shared trust account ( EMD & 33% of Construction)
4) Property under contract
5) Closing day (67% of rehab and down payment)
6) Investor to receive 2nd Deed of Trust.