Purchase of Home for Lifestyle and Investment Purposes

1. Real Estate
Investment Analysis
Property: Fairway Golf Estates
Villa 5
Prepared For: Mrs. Nicki Titze
Prepared By: Investment Consulting Group
Company Vauban
Date: August 19, 2007
Currency: $ US
@ 33.00 to Thai Baht
Dep
Vauban Financial Planning Services

2. Income-Property
Investment Analysis
Property Location: Zephyr Valley
Hua Hin, Thailand
Type of Property: Single-Family
505 m2 total living area
Date of this Analysis: August 19, 2007
Purpose: The purpose of this analysis is to project and
demonstrate the future economic benefits to
be derived from this property over a 10-year period.
For the sake of the analysis, certain assump-
tions have been made concerning future
revenue, expenses, and financing
implications related to the ownership and
operation of the property.
Those assumptions, as well as projections
about income or loss, cash flow and profit
from resale are presented on the following
pages.
Property purchased at $1,200.48 per square foot.
Analysis
Mos. in 1st Year of Analysis: 3
Year this Analysis Begins: 2009
Anticipated Year of Resale: 2018
Investor
Name:
Marginal Tax Bracket: 0.00 %
preciation
Type: 27.5-Year Straight Line
Depreciable Basis: $6,062
Vauban Financial Planning Services

3. Basic Information
Property Description
3 bedroom, 3 bath private villa with separate maid's room and bath.
Total land size area is 1,589 square meters and the total home size
is 505 square meters. The home includes a private pool and direct views
of the new Black Mountain Golf Course. This private community will have
complete 5-star facilities.
Purchase Payment Schedule
(Please see Contract for payment terms) $ US
Reservation Fee: (Thai Baht) 100,000 3,030
1st Payment (less Res. Fee) 30% 178,843
2nd Payment: 10% 60,624
3rd Payment: 5% 30,312
4th Payment: 5% 30,312
Furnishings Package 3% 24,250
Closing Costs 1% 6,062
Developer Financing 50% 303,122
636,557
Acquisition
Sources of Funds
Cash Investment 333,435
Developer Financing 303,122
Total: 636,557
Uses of Funds
Purchase Price 606,245 20,006,080 thb
Furnishings Package 24,250 39,616 /m2
Closing Costs 6,062
Points 0
1st Year Capital ImprovemeTotal: 636,557
Deferred Payments Terms
303,122 principal
8 year term
6.50 %
0.00 points
4,058 per month
Placed 10/2008
Vauban Financial Planning Services

4. Analysis Summary
Assumptions
Annual Price Appreciation Rate 9%
Annual Rental Growth Rate 6%
Annual Op. Exp. Growth Rate 4%
First Year, Average $ US
Nightly Rental Rate: 450 14,850
Average Occupancy Rate:
2009 10%
2010 35%
2011 40%
2012 45%
2013 50%
2014 50%
2015 55%
2016 55%
2017 60%
2018 60%
Cash Flow Totals (10 years)
Rental Income 949,166 100%
Less; Operating Expenses (350,064) -37%
Deferred Payments (389,536) -41%
Equals: Net Cash Flow 209,566 22%
Plus: Increase in Value 655,894
Compare this return to 458,414 which is the before-tax return
(including principal) on the same amount invested in a Treasury Bill
earning an effective annual yield of 3.50%.
Vauban Financial Planning Services

5. Cash Flow
Projections
Operating and Net Income
$ US
Gross Operating Deferred Cash Cumulative
Income Expenses Payments Flow Cash Flow
2009 3,791 (711) (12,173) (9,093) (9,093)
2010 56,262 (21,299) (48,692) (13,729) (22,822)
2011 68,158 (25,559) (48,692) (6,094) (28,915)
2012 81,278 (30,253) (48,692) 2,332 (26,583)
2013 95,727 (35,419) (48,692) 11,616 (14,967)
2014 101,471 (37,544) (48,692) 15,235 268
2015 118,315 (43,561) (48,692) 26,062 26,330
2016 125,414 (46,175) (48,692) 30,547 56,876
2017 145,024 (53,176) (36,519) 55,330 112,206
2018 153,726 (56,366) 0 97,360 209,566
949,166 (350,064) (389,536) 209,566
160,000
Gross Inc.
140,000 After Op. Exp.
After Def. Pmts.
120,000
100,000
80,000
60,000
40,000
20,000
0
-20,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Year
Vauban Financial Planning Services

6. Resale
Resale at End of 2018
$ US
Projected Selling Price: 1,347,000
Cost of Sale: 6% 80,820
Net Proceeds After Sale 1,266,180
After-Tax Sale Proceeds: 1,266,180
Capital Gain 655,894
1,600,000
1,400,000 Debt
Equity
1,200,000
Debt and Equity
1,000,000
800,000
600,000
400,000
200,000
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Year
Vauban Financial Planning Services

7. Investment Cash Flow
Overview
$ US Initial Net
Cash Annual Proceeds
Year Invested Income Cash Flow Yield from Sale
2009 333,435 0 (9,093) -3%
2010 6,389 (13,729) -4%
2011 21,480 (6,094) -2%
2012 33,206 2,332 1%
2013 44,805 11,616 3%
2014 50,893 15,235 5%
2015 66,722 26,062 8%
2016 75,115 30,547 9%
2017 90,659 55,330 17%
2018 97,139 97,360 29% 1,266,180
Totals: 333,435 #DIV/0! 209,566 #DIV/0! 1,266,180
Investment Results Total Annual Rate of Return 15.22%
Total Return on Investment 1,475,746 = 209,566 + 1,266,180
1,475,746 is the projected total cash return on an initial cash
investment of 333,435.
342.59% is the estimated tota al return on investment over the holding period.
1,400,000
Proj. Selling Price
Selling Price / Outstanding Debt / Equity
1,200,000 Outstanding Debt
Equity
1,000,000
800,000
600,000
400,000
200,000
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Year
Vauban Financial Planning Services

8. Disclaimer
The information and calculations presented in this analysis are believed to be accurate,
but are not guaranteed. They are intended for the purposes of projection and analysis,
and should not be used for preparation of income tax returns.
The user of this report should consult a tax specialist concerning his/her particular
circumstances before making any investment decision.
rulings, regulations and technical corrections.
For purposes of presentation we are using the most current currency exchange rate.
*Note especially that a taxpayer’s ability to use losses generated by this investment to offset
income generated by this investment is likely to be affected by the taxpayer’s particular
circumstances, including Adjusted Gross Income, and passive and investment income or loss
120,000 20%
Cash Flow
100,000 Annual ROR 15%
10%
Annual Rate of Return
80,000
5%
Cash Flow
60,000
0%
40,000
-5%
20,000
-10%
0 -15%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
© 1982-2005, RealData® Inc., Southport, CT All Rights Reserved
-20,000 -20%
http://www.realdata.com
Year
Vauban Financial Planning Services