CrowdPad.co Pitch Deck (MS Word)

ACCESS TO PRE-VETTED INCOME GENERATING REAL ESTATE OPPORTUNITIES

4000 BIRCH ST. SUITE 101 • NEWPORT BEACH • CALIFORNIA • 92660 • T-(949) 264-2022 • F-(888) 818-6524

Insider access to pre-vettedincome generating real estate.

Pool money with like-minded investors to make investments that are otherwise difficult to access.

Join Select Earn

Simply fill out the application form Choose from a portfolio of investment Receive monthly dividends from

onlineand get access to investment

opportunities within seconds.

classes and select the one that meets

your investment needs.

the cash flow of our income

generating assett classes

Manage and track how your money is performing.

See up to date information on how your money is working for you.

© 2013 The ARIA Group

Income Generating Real Estate,

the simple way

How it Works .

CROWDpad allows investors to become shareholders in income generating real estate opportunities that were historically difficult to

access. Through the use of the CROWDpad web platform, investors can browse and screen real estate investments opportunities, view details of

an investment and sign legal documents online.

Create an account. A CROWDpad membership is free and gives you insider access to invest in real estate opportunities that are pre-screened by the CROWDpad team. You will also benefit from low minimums, starting at $5,000, compared to $50k - $100k for traditional real estate investments. CROWDpad is currently open to accredited and international investors. To be an accredited investor requires a minimum income and/or net worth. The sign up process for CROWDpad verifies the accreditation of its members.

Finalize your investment. Once you decide which investment you are interested in, you can easily and securely sign legal paperwork online and submit payment for your investment via check or wire. CROWDpad may also request additional information to verify that you are an accredited investor.

Congratulations . You are officially an investor and begin receiving proportionate dividend distributions the next month. You will receive frequent updates and have


access to your investor dashboard to watch how your money is working for you. In the event the investment is oversubscribed, the first investors who have funded their portion of the investment will have priority


How does CROWDpad work?CROWDpad allows accredited investors to invest in real estate opportunities online through a private, secure website. Investors can browse investments, review legal documents and due diligence materials and sign legal documents securely online. Investors also have access to an investor dashboard, giving 24/7 access to watch how your money is working for you.

Ho w is it d i ffere n t t h a n a Real E s t a te I n v e s t m e nt T r u s t ( R E I T )?

When investing in a REIT, most investors have little to no information regarding actual properties the REIT invests in and cannot invest in their own backyard. With CROWDpad, investors can invest in individual properties giving added transparency and control over investment selection and location.

In addition, REITs are such large entities that they can rarely participate in many of the smaller investments CROWDpad will be including in the marketplace.

All properties are acquired and managed by a professional investment company with a track record of success. Investors are entitled to their proportionate share of the cash-flow from rents The average income generating timeframe for an investment is 2-5 years.

Ho w do e s an i n v e s t m e nt g et l is ted o n H . O . A . M . S . ?

Real estate companies request permission to list their investment opportunities in the CROWDpad marketplace by joining CROWDpad as a private real estate company and submitting an application. The CROWDpad team reviews their materials and determines whether the company and the investment is a good fit for our members. We anticipate less than 2% of investment opportunities will be showcased due to the CROWDpad vetting process.


What does CROWDpad do to pre-vet the investments?

We review every transaction in-house. We go to great lengths to fully understand the variables of each transaction including the structure, the market statistics, the property, the quality of the property and the track record, reputation and quality of the real estate investment company we are working with. This process includes background, criminal and credit checks to mitigate the risk of fraud. While CROWDpad cannot provide an assurance to investors that investment objectives of any given investment will be reached, only a small percentage (we estimate less than 5%) of investments we review will be included in the CROWDpad marketplace.

What are t h e benefits of using CROWD pad?CROWDpad makes it easy for accredited investors to invest in income generating real estate opportunities. We provide access that was historically limited and pre-vet every investment in the marketplace. We spend countless hours sourcing real estate markets so you don’t have to. We also allow you to invest in real estate with dramatically smaller check sizes. Instead of$50,000 or $100,000 minimums, you can buy shares of income generating opportunities with as little as $5,000. And we make the process painless – allowing you to screen investments online, sign legal documents online and have access to all your documents in one place on your investor dashboard.

Is the CROWDpad website secure? Yes. We go to great lengths to ensure the security of all of our members and our data and use SSL. SSL (Secure Sockets Layer) is the standard security technology for establishing an encrypted link between a web server and a browser. This link ensures that all data passed between the web server and browsers remain private. SSL is an industry standard and is used by millions of websites in the protection of their online transactions with their customers.

Wh a t types of properties does CROWD pad control?

Single-family homes and luxury high rise condominiums


When I invest on CROWDpad, what do I own?

When you invest in an opportunity with CROWDpad, you are purchasing shares of an LLC as a limited member. In turn, that LLC controls either a deed tied to a real property or has aUCC-1 Lien on a specific income generating property. An LLC gives you liability protection, shielding your personal assets from the investment.


Who m akes d e ci s i on s in an LL C ? Decisions in an LLC are governed by a document called an “operating agreement”. While every operating agreement is slightly different, they usually include a managing member and limited members. The managing member typically makes all of the day-to-day decisions and the limited members act as passive investors on the transaction. The managing member can determine how much cash to distribute to the limited members versus how much to hold in reserve and assess possible assignments of the investments. There are certain activities that might mandate a vote by the limited members and the limited members can typically take action if the managing member defaults on the terms of the agreement or is grossly negligent.

If I invest with CROWDpad and something happens to CROWDpad, what w ill h a pp en to m y i n v e s t m e n t?

CROWDpad operates LLCs that could be managed by a replacement manager. CROWDpad would appoint an agent, such as a national bank or trust company, to manage the LLCs in the event CROWDpad is unable to manage them.

Are t h ere fees f o r i n v e s t o r s ? Joining CROWDpad and browsing the marketplace is free. Should you choose to invest, there is a fee associated with each investment. The fees depend on the type of investment (deed assignment or UCC-1 Lien purchase) and the nature of the transaction. In addition to administrative and legal expenses, the fees will cover the ongoing reporting and communications for the investments.

Wh en w i l l I g et m y in v e s t m e n t b ack?

Different properties have different expected “management periods”. A management period is the anticipated time investors will be involved with the investment until its income generating potential has been exhausted. Management periods range from less than 6 months to greater than 5 years. It is important to read the investor documents for a deeper understanding of the management period for each investment.


As an investor, you will receive your investment back when the management period for a particular investment expires. Investors are entitled to their proportionate share of the cash-flow from rents for the duration of the management period.


Why is it CROWDpad only for accredited investors?

Federal securities law requires that securities issued by private companies to their investors must be registered with the Securities and Exchange Commission (SEC) unless the offering qualifies for an exemption from registration.

One exemption from registration is available if the company offers securities only to accredited investors in a private offering. Accredited Investors are defined by the SEC as having $200,000 of annual income per individual ($300,000 per couple) with the expectation of that continuing, or a net worth of more than $1 million, excluding the value of the primary residence.

CROWDpad is a private, password-protected network for accredited investors in order to meet these guidelines.

Ho w w i l l I be u pd a ted a bout m y in v e s t m e n t? CROWDpad works with the real estate management company to ensure that monthly updates are shared with all investors. Updates are provided via email and via the investor dashboard. In addition, you will receive tax documents every year that you have a distribution from a real estate investment with CROWDpad.

Is t h ere an in v e s t m e n t mi n im u m ?

Yes. The minimum investment is $5,000.

Wh a t if m o re m o n ey is n ee d ed f o r t h e p r op erty?

CROWDpad investments do not have capital calls. A capital call is where the investor is required to commit more money to the property, beyond the initial investment.


What are the tax im p lications of i n vesting wi t h CROWD pad?

While we cannot provide legal or tax advice and recommend you speak with your own accountant or attorney, one of the benefits of investing in Limited Liability Companies (LLCs) is that they can be taxed as partnerships and it allows for the entity to be “pass through”.Profits can be passed through to the investors, as applicable.

How does the JOBS Act impact CROWD pad?The JOBS Act was signed into law on April 5, 2012 by President Obama and is currently under an SEC rulemaking period. The JOBS Act was meant to enable crowd funding for all investors, both accredited and non-accredited. CROWDpad is not currently impacted by this act because we are currently only open to accredited investors and rely on legal structures and exemptions that existed before the JOBS act. But, we are actively waiting final rulings from the SEC and look forward to exploring how the JOBS act could expand CROWDpad in the future.

CLOSED INVESTMENT


MARQUEEIRVINE, CALIFORNIA

3131 Michelson Drive

$5,000 Minimum

Investment UCC-1 Lien

Security

17% Actual Annual ROI

CALIFORNIANLOS ANGELES, CALIFORNIA

10800 W ilshire Blvd.

$5,000 Minimum

Investment UCC-1 Lien

Security

16% Actual Annual ROI

CLOSED INVESTMENT


DARK HORSEAUSTIN, TEXAS

PLAZAIRVINE, CALIFORNIA

2900 DARK HORSE LANE

$5,000 Minimum

Investment 1st Trust Deed

Assignment 9% Actual 6

Month ROI

5000 Scholarship

$5,000 minimum

investment 1st Trust Deed

Assignment 21% Actual

Annual ROI

CrowdPad.co Pitch Deck (MS Word)

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