Enhanced Assets LLC Offering Summary 4_2_16

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This Investment Opportunity Summary (“Summary”) is confidential, subject to change and/or withdraw at any time, has been prepared solely for informational purposes, and is not to be used for any other purpose. It is not intended as an offer to sell, or the solicitation of an offer to buy any securities, any such offer can only be made by pursuant to the final Option Agreement (“OA”) to suitable accredited investors. This Summary only illustrates and summarizes the investment opportunity, is qualified in its entry by such and should be considered only in conjunction with the OA. Enhanced Assets LLC A Delaware Limited Liability Company INVESTMENT OPPORTUNITY SUMMARY Distressed Promissory Note Purchase Secured By Real Estate

Transcript of Enhanced Assets LLC Offering Summary 4_2_16

Page 1: Enhanced Assets LLC Offering Summary 4_2_16

This Investment Opportunity Summary (“Summary”) is confidential, subject to change and/or withdraw at any time, has been prepared solely for informational purposes, and is not to be used for any other purpose. It is not intended as an offer to sell, or the solicitation of an offer to buy any securities, any such offer can only be made by pursuant to the final Option Agreement (“OA”) to suitable accredited investors. This Summary only illustrates and summarizes the investment opportunity, is qualified in its entry by such and should be considered only in conjunction with the OA.

Enhanced Assets LLC

A Delaware Limited Liability Company

INVESTMENT OPPORTUNITY SUMMARY

Distressed Promissory Note Purchase

Secured By Real Estate

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This Investment Opportunity Summary (“Summary”) is confidential, subject to change and/or withdraw at any time, has been prepared solely for informational purposes, and is not to be used for any other purpose. It is not intended as an offer to sell, or the solicitation of an offer to buy any securities, any such offer can only be made by pursuant to the final Option Agreement (“OA”) to suitable accredited investors. This Summary only illustrates and summarizes the investment opportunity, is qualified in its entry by such and should be considered only in conjunction with the OA.

Cantor Group II LLC Investment Summary Package

Table of Contents

Page

I. Executive Summary 1 - 2

II. Sources and Uses of Funds 3

III. Investor Return On Investment Pro Forma Scenarios

Note Paid Off 4

Foreclosure and Borrower Files Bankruptcy 5

Third Party Buys At Foreclosure 6

Re-performing Note Sale 7

IV. Broker Price Opinion 8 - 10

V. Subscription Process 11

VI. Enhanced Assets LLC Key Team Members & Third Party Support 12 - 14

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This Investment Opportunity Summary (“Summary”) is confidential, subject to change and/or withdraw at any time, has been prepared solely for informational purposes, and is not to be used for any other purpose. It is not intended as an offer to sell, or the solicitation of an offer to buy any securities, any such offer can only be made by pursuant to the final Option Agreement (“OA”) to suitable accredited investors. This Summary only illustrates and summarizes the investment opportunity, is qualified in its entry by such and should be considered only in conjunction with the OA.

Enhanced Assets LLC - Executive Summary

This is an opportunity to invest in a Delaware LLC, Enhanced Assets LLC, that buys and “pools” discounted, distressed promissory notes secured by real estate. The LLC’s objective is to maximize return on investment by one of several disposition strategies as follows: 1) Collect the note’s entire amount owed including unpaid principal, interest, and fees, by working with the borrower to cure the note through a refinance or by selling their property. This approach results in shorter turnaround times, and therefore a higher annualized return on investment; 2) Cure the note by bringing the underlying real estate to a foreclosure sale, and then being paid off the entire amount owed by the highest auction bidder. This approach will yield the same profit margin as the first disposition strategy, only it takes much longer; 3) Work with the borrower to take the note from non-performing to re-performing and allow the re-performed note to season for 6 months and then sell it as a performing note; or 4) Foreclose on the note and sell the underlying real estate for a profit. The Sponsor, New West Real Estate Services, Inc., based in San Diego, CA (www.investwithnewwest.com) has a unique acquisition process, which allows them to target notes with high ROI potential and very low margins of risk. See the “Invest” and “Learn” pages of the website for more details on the process and opportunity.

Enhanced Assets LLC targets heavily discounted notes secured by California residential and commercial real estate which have a high ratio of equity above the note’s unpaid balance. This Offering Summary uses actual data from a recently targeted note to provide the example ROI Pro Formas for each type of contemplated exit strategy.

Enhanced Assets LLC is capitalizing a total of $1,476,600 equity from Investors. This amount may change depending on final Notes acquisition amounts. The minimum investment is $50,000 and is available on a first-come-first-served basis.

As the notes are paid off and / or the foreclosed properties are sold, cash distributions will be made quarterly to the Equity Partners. The Managing Member is compensated by sharing in said distributions. Normally some of the proceeds from the first note or property sale are held back to top-up the reserve account if needed.

The historic average annualized ROI to investors has been approximately 40% on the note investments that the sponsor has been involved in during the past 24 months. These note transactions were sponsored and managed by a third party, but the investors involved are clients of the current sponsor, New West Real Estate Services, Inc. When the notes are paid off quickly (through an alternative to foreclosure worked out with the borrower), the average annualize ROI has been between 45% and 95%. When the borrower files bankruptcy (“BK”) and the note is paid off by a buyer at the foreclosure sale after a longer period of waiting while in BK, the ROI could be as low as between 5% and 15%. When the underlying property is acquired by the LLC through foreclosure, the average annualized ROI is typically between 40% and 65% or more. The current targeted notes are a mixture of quick note cures and foreclosures which typically yields a ROI of between 40% and 75%.

The Sponsor’s compensation is incentive based which is 30% of the net profits. The returns to Investors mentioned above are net to Investors and has factored in the 30% share to the Sponsor.

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This Investment Opportunity Summary (“Summary”) is confidential, subject to change and/or withdraw at any time, has been prepared solely for informational purposes, and is not to be used for any other purpose. It is not intended as an offer to sell, or the solicitation of an offer to buy any securities, any such offer can only be made by pursuant to the final Option Agreement (“OA”) to suitable accredited investors. This Summary only illustrates and summarizes the investment opportunity, is qualified in its entry by such and should be considered only in conjunction with the OA.

Enhanced Assets LLC - Executive Summary (Continued)

The Sponsor has been sourcing and analyzing opportunistic note purchases for its investors and has invested over $500,000 of its own capital into non-performing notes. The following necessary infrastructure is in place:

o Sophisticated formula to identify and analyze target Notes for purchase; o In-house asset management that handles the day-to-day operations; o Renovations of the properties as needed. The Sponsor has relationships with multiple

contractors in the various different localities for any properties requiring renovating; o Marketing and lease-up teams to lease property vacancies; and o Superior Bankruptcy Attorney who works with the bankruptcy court to usher the foreclosures

through the courts if they become part of a Borrower’s bankruptcy proceedings.

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Enhanced Assets I LLC - Sources & Uses of Funds

Notes Net Purchase Cost 1,400,000 % of TotalTotal Note Pool Cost (1) 1,500,000

SOURCES OF FUNDSEquity Offering 1,500,000

TOTAL SOURCES OF FUNDS 1,500,000 100.00%

USES OF FUNDSNotes Purchase Payment, Including Note Broker Commissions 1,400,000 Upfront Legal, Title, and Escrow Fees 15,000 Reserve for potential BK/Foreclosure Costs (2) 35,000 Reserve for potential Property Carrying Costs and PIP (3) 50,000

TOTAL USES OF FUNDS 1,500,000 100.00%

Total Front End LoadTotal Estimated Investor Equity 1,500,000Less Notes Net Purchase Costs -1,400,000

Total Front End Load 100,000 6.67%

Footnotes

(1) All estimated hard and soft costs to acquire the Notes and establish the Note Pool.(2) When the borrower fights foreclosure via Bankruptcy ("BK") the legal costs go up. BK attorney fees starts at about $25,000. Additionally, we may need to pay the property taxes and make payments on the 1st mortgage to keep it current if our note is a 2nd lien. As the process progresses, there may be additional capital calls in order to cover the legal fees and foreclosure costs. These yet known costs are tied to our negotiations with the borrower. The initial reserve budget is kept to a minimum to maximize ROI to investors in the event our negotiations are successful and foreclosure/BK is avoided.(3) Reserves may be higher depending on which properties are acquired, the properties' condition and property taxes owed/accumulated by the defaulted borrower. Initial reserve is minimized to maximize Investors' ROI until actual reserves budget is determined.

This Investment Opportunity Summary (“Summary”) is confidential, subject to change and/or withdraw at any time, has been prepared solely for informational purposes, and is not to be used for any other purpose. It is not intended as an offer to sell, or the solicitation of an offer to buy any securities, any such offer can only be made by pursuant to the final Option Agreement (“OA”) to suitable accredited investors. This Summary only illustrates and summarizes the investment opportunity, is qualified in its entry by such and should be considered only in conjunction with the OA.

While the Notes shown in this package are specifically targeted for acquisition, they are for example purposes only and

subject to change. Some are likely be substituted with other Promissory Notes during the course of the acquisition

process which will alter the figures herein.

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Exit Strategy 1 - Borrower Pays Off Note - ROI Pro Forma

Capitalized CostsNote Purchase Price (1) 206,444Legal Advice, Title Insurance, Misc. Closing Costs (2) 1,000Reserves 4,000Total Capitalization 211,444

IncomePayoff of Original UPB (Note Cured by Borrower) 292,300Less $10,000 Discount to Borrower (3) -10,0003.25% interest accumulated over 3 months (4) 2,375Unused Reserves Reimbursed (5) 3,000Total Income 287,675

Total Profit 76,231

6% Investor Preferred Return Annualized -3,172Profit After 6% Preferred Return 73,059Less 30% Promote to Sponsor (6) -21,918Investor's 70% Remainder After Promote 51,1416% Investor Preferred Return Annualized 3,172Net Profit to Investor 54,313ROI to Investor Annualized over 3 months 102.75%

Footnotes:

(2) A portion of these costs is covered by FCI's 1% fee.

(5) In this scenario it is unlikely we will use more than $1,000 of reserves.

(6) Sponsor / Managing Member fee is incentivized and tied to net profits. There are no equity selling commissions.

This strategy includes offering the borrower a discount of $10,000 off of his total UPB on our 2nd lien if he agrees to cure our 2nd lien+interest within 3 months or less.

(1) Includes 1% FCI Note Broker Commission and Escrow costs.

(3) If the borrower meets our deadline of 3 months we will discount $10,000 off of what he owes us. After 3 months no discount.(4) 3.25% interest on the $292,300 owed ($792/mo. X 3 mos.) included in borrower's debt owed.

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Exit Strategy 2 - Foreclosure and Bankruptcy - ROI Pro Forma

Capitalized CostsNote Purchase Price (1) 206,444Legal Advice, Insurance, Closing Costs (2) 1,000Reserves 4,000Capital Call Use of Funds (3) 18 months of debt service on 1st mortgage (we pay to keep 1st current) 81,000 Property Taxes for 18 months (~ $16,000 every 6 months) 48,000 BK Legal Fees (Could be lower, this is a "worst case" estimation.) 25,000 Foreclosure Costs (Could be lower, this is a "worst case" estimation.) 5,000 Estimated Property Improvements/Renovations - Off set costs to fix potential 20,000 disgruntled Borrower caused damage. This expense may or may not be necessary.Total Capital Call 179,000Total Capitalization 390,444

IncomeEstimated Property Sales Price - Current BPOs value between $3,150,000 & $3,350,000. 3,100,000Less 6% closing costs -186,0001st Mortgage Payoff -1,677,397Total Income 1,236,603

Total Profit 846,159

6% Investor Preferred Return Annualized (assumes all capitalized upfront - $390,444) -46,853Profit After 6% Preferred Return 799,306Less 30% Promote to Sponsor (4) -239,792Investor's 70% Remainder After Promote 559,5146% Investor Preferred Return Annualized 46,853Net Profit to Investor: 606,367ROI to Investor Annualized Over 24 Months (5) 77.65%

Footnotes

(1) Includes 1% FCI Note Broker Commission and Escrow costs.(2) A portion of these costs is covered by FCI's 1% fee.

If the borrower rejects our Exit Strategy 1 offer to discount $10,000 for curing our note, we proceed to foreclosure. Assume then 4 months into the foreclosure the borrower files BK. It then takes another 12 months for judge to approve a payment plan and if the borrower fails to make the payments (this happens 90% of the time) we then proceed to foreclosure sale. We set the starting bid at full amount to cover all our expenses+UPB of 1st+UPB of 2nd+Interest and Fees Accrued+10% court/auction selling fees. Starting bid is approx. $2,350,000. Assuming no buyers pay the starting bid, we acquire the property and we immediately put it on the market. Expected Project lifespan 18-24 months.

(4) Sponsor / Managing Member fee is incentivized and tied to net profits. There are no equity selling commissions.

(3) In the event a Capital Call is necessary, the Investor will have the option to pay the entire capital call all at once or to pay it in smaller increments as needed. Less funds are needed if the foreclosure process lasts less than 18 months and / or if no property renovations are necessary. Once the foreclosure process begins it is likely that the borrower will stop making payments on the 1st trust deed. We must make the payments for him in order to avoid being wiped out by the Lender of the 1st trust deed pursuing their own foreclosure. We must also pay the property taxes to keep the 1st current.

(5) Time frame could be less. In a worst case scenario the borrower would be able to stall us for about 18-22 months in foreclosure/BK before we get a foreclosure sale. If the property is acquired we will sell at a discount to save time.

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Exit Strategy 3 - 3rd Party Buys Foreclosure - ROI Pro Forma

Capitalized CostsNote Purchase Price (1) 206,444Legal Advice, Insurance, Closing Costs (2) 1,000Reserves 4,000Capital Call Use of Funds (3) 18 months of debt service on 1st mortgage (we pay to keep 1st current) 81,000 Property Taxes for 18 months (for this house its $16,000 every 6 months) 48,000 BK Legal Fees 25,000 Foreclosure Costs 5,000Total Capital Call 159,000Total Capitalization 370,444

IncomeFull UPB of our 2nd is paid 292,300Unused Reserves Reimbursed 2,0003.25% interest on $292,300 for 18 months 14,25010% late fees on interest payment charged every month for 18 months 1,425All expenses and closing costs reimbursed by foreclosure sale Buyer 160,000Total Income 469,975

Total Profit 99,5316% Investor Preferred Return Annualized -33,340Profit After 6% Preferred Return 66,191Less 30% Promote to Sponsor / Managing Partner (4) -19,857Investor's 70% Remainder After Promote 46,3336% Investor Preferred Return Annualized 33,340Net Profit to Investor 79,673ROI to Investor Annualized over 18 months 32.26%

Footnotes

(1) Includes 1% FCI Note Broker Commission and Escrow costs.(2) A portion of these costs is covered by FCI's 1% fee.

If the borrower rejects our Exit Strategy 1 offer to discount 10,000 for curing our note, we proceed to foreclosure. Assume then 4 months into the foreclosure the borrower files BK. It then takes another 12 months for BK Court Judge to approve a payment plan and if the borrower fails to make the payments (this happens 90% of the time) we then proceed to foreclosure sale. We set the starting bid at full amount to cover all our expenses+UPB of 1st+UPB of 2nd+Interest and Fees Accrued+10% court/auction selling fees. Starting bid is approx. $2,350,000. A buyer then shows up and meets the starting bid. We are paid back+fees+all expenses in full. Expected project lifespan is 18 months.

(4) Sponsor / Managing Member fee is incentivized and tied to net profits. There are no equity selling commissions.

(3) In the event a Capital Call is necessary, the Investor will have the option to pay the entire capital call all at once or to pay it in smaller increments as needed. Less funds are needed if the foreclosure process lasts less than 18 months and / or if no property renovations are necessary. Once the foreclosure process begins it is likely that the borrower will stop making payments on the 1st trust deed. We must make the payments for him in order to avoid being wiped out by the Lender of the 1st trust deed pursuing their own foreclosure. We must also pay the property taxes to keep the 1st current.

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Exit Strategy 4 - Re-performing Note Sale - ROI Pro Forma

Capitalized CostsNote Purchase Price (1) 206,444Legal Advice, Insurance, Closing Costs (2) 1,000Reserves 4,000Capital Call Use of Funds (3) 18 months of debt service on 1st mortgage (we pay to avoid being wiped out) 81,000 Property Taxes for 18 months ($16,000 every 6 months) 48,000 BK Legal Fees 25,000 Foreclosure Costs 5,000Total Capital Call 159,000Total Capitalization 370,444

IncomeSales Price of Performing Note (4) 448,3743.25% interest on $471,973 for 6 months while new note seasons. 7,670Unused Reserves Reimbursed 2,000Total Income 458,044

Total Profit 87,6006% Annualized Investor Preferred Return -44,453Profit After 6% Preferred Return 43,146Less 30% Promote to Sponsor (5) -12,944Investor's 70% Remainder After Promote 30,2026% Investor Preferred Return Annualized 44,453Net Profit to Investor 74,656ROI to Investor Annualized over 24 months: 10.08%

Footnotes

(1) Includes 1% FCI Note Broker Commission and Escrow costs.(2) A portion of these costs is covered by FCI's 1% fee.

After the borrower rejects our Exit Strategy 1 with offer to discount $10,000 for curing our note, we move forward with foreclosure. 4 months into the foreclosure borrower files BK. It then takes another 12 months for BK judge to approve payment plan, and if the borrower fails to make the payments (this happens about 90% of the time) we then proceed to foreclosure sale. The borrower would owe us the full UPB of $292,300+Interest+$160,000 of our expenses. A total of $471,973. We would sell it as a performing loan @ 5% note discount. Expected project lifespan is 24 months.

(5) Sponsor / Managing Member fee is incentivized and tied to net profits. There are no equity selling commissions or any sort of upfront fees loaded.

(4) If we unable to get a note Buyer at a 5% note discount for our "performing 2nd lien" then we will offer a 5% ($23,599) bonus to the borrower for refinancing with another lender and paying us off 95% of our total UPB.

(3) In the event a Capital Call is necessary, the Investor will have the option to pay the entire capital call all at once or to pay it in smaller increments as needed. Less funds are needed if the foreclosure process lasts less than 18 months and / or if no property renovations are necessary. Once the foreclosure process begins it is likely that the borrower will stop making payments on the 1st trust deed. We must make the payments for him in order to avoid being wiped out by the Lender of the 1st trust deed pursuing their own foreclosure. We must also pay the property taxes to keep the 1st current.

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PROPERTY ADDRESS 424 W Poplar Ave BROKER PRICE OPINION

San Mateo, CA FIRM NAME Enhanced Assets, LLC

BROKER Mark Epstein COMPLETED BY Mark Epstein DATE 3/10/16 PHONE NO. 310 993 8966 I. GENERAL MARKET CONDITIONS

Current Market Conditions: Depressed Slow Static Improving Excellent (Circle One) Employment Conditions: Declining Stable Increasing (Circle One) Market price of this type property has: Decreased % in past months Increased % in past months Remained stable Estimated percentages of owner vs. tenants in neighborhood: % owner occupant 0 % tenant There is a normal supply oversupply shortage of comparable listings in the neighborhood Approximate number of comparable units for sale in neighborhood: 0 No. of competing listings in neighborhood that are REO or Corporate owned: 0 No. of boarded up or blocked-up homes: 0 Census Tract #:

COMMENTS: II. SUBJECT MARKETABILITY (Space for Comments at the bottom of next page.)

Range of values in the neighborhood is $ to $ The subject is an overimprovement underimprovement appropriate improvement for the neighborhood Normal marketing time in the area is days. Marketability of subject property is excellent good fair poor. Unit Type: House Condo Townhouse Multi-family (No. of units Modular If condo or association exists: Fees are $ /mo. Current ? Unpaid how many months? The fee includes: Pool Tennis Insurance Landscape Other Association Contact: Name Address

III. COMPETITIVE CONTRACT OFFERINGS OR LISTINGS

ITEM SUBJECT COMP NO. 1 COMP NO. 2 COMP NO. 3 Address 424 W Poplar Ave Proximity to Subject Current Price Original List Price Price/Gross Lv. Area Data Source INTAX/MLS INTAX/MLS INTAX/MLS INTAX/MLS VALUE ADJUSTMENTS

DESCRIPTION DESCRIPTION +(-)$ Adj

DESCRIPTION +(-)$ Adj

DESCRIPTION +(-)$ Adj

Sales or Financing Concessions

None None

Date of Sale/DOM N/A N/A N/A N/A Location Site/View/Lease Design and Appeal Quality of Construction Age Condition Above Grade Total Bdm Bths Total Bdm Bth Total Bdm Bth Tot Bdm Bths Room Count Gross Living Area Bsmt/Finished Rooms Below Grade

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Functional Utility Heating/Cooling Garage/Carport Porches, Patio Pools, etc

Special Energy Efficient Items

Fireplace(s) Other(e.g. Kitchen equip., remodeleing

Net Adj. (total)) + - $ + - $ + - $ Indicated Value of Subject

$ $

$

IV. MARKETING STRATEGY

Most likely buyer: Owner Occupant Investor Other Potential Financing: Seller

Financing Cash Outside Lender FHA VA

Planned Marketing Actions in addition to cleaning, repairing, signage, MLS and lock box (be specific):

None $ $ $ $

TOTAL REPAIRS $ 0

V. COMPETITIVE CLOSED SALES

ITEM SUBJECT COMP NO. 1 COMP NO. 2 COMP NO. 3

Address 424 W Poplar Ave Proximity to Subject Sales Price Price/Gross Lv. Area Data Source INTAX MLS/INTAX MLS/INTAX MLS/INTAX VALUE ADJUSTMENTS

DESCRIPTION DESCRIPTION +(-)$ DESCRIPTION +(-)$ DESCRIPTION +(-)$

Sales or Financing Concession

Date of Sale/DOM N/A Location Site/View/lease Design and Appeal Quality of Construction Age Condition Above Grade Total Bdm Bth Total Bdm Bth Total Bdm Bth Total Bdm Bth Room Count Gross Living Area Basement & Finished Rooms Below Grade

Functional Utility Heating/Cooling

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Garage/Carport Porch, Patio, Pools, Etc

Special Energy Efficient Items

Fireplace (s) Other (e.g. kitchen equip., remodeling)

Net Adj. (total) + - $ + - $ + - $ Indicated Value of Subject

$ $ $

VI. PROBABLE FINAL VALUE must fall within the indicated value of the sales used above.

THE VALUE FOR THE SUBJECT PROPERTY BASED ON 120 DAYS LIST TO CONTRACT IS:

OPINION OF VALUE As Is Repaired Check one block below:

Probable Final 3,100,000 3,100,000 Both the interior and exterior were inspected. Suggested List 3,200,000 3,200,000 Only the exterior was inspected.

COMMENTS including specific positives on this property and special concerns, if any, like apparent structural issues, encroachments, easements, water rights, propane, hazardouse waste, flood zone, etc.) Attach addendum if additional space is needed. The lender values at $3,300,000. We value closer to $3,100,000-$3,200,000. 1st and 2nd combined LTV is ~60% at current EMV of $3,100,000. 310 993 8966 3/10/16 Agent’s Signature Phone Number Date

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This Investment Opportunity Summary (“Summary”) is confidential, subject to change and/or withdraw at any time, has been prepared solely for informational purposes, and is not to be used for any other purpose. It is not intended as an offer to sell, or the solicitation of an offer to buy any securities, any such offer can only be made by pursuant to the final Option Agreement (“OA”) to suitable accredited investors. This Summary only illustrates and summarizes the investment opportunity, is qualified in its entry by such and should be considered only in conjunction with the OA.

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Subscription Process

KEY DOCUMENTS EXPLAINATION / ACTIONS

Investment Summary

Operating Agreement

Option and Purchase Agreement

If, during the time from when the Operating and Option Agreements are issued and the closing of funding, any material facts or terms change, Investors will receive a Supplement to the Operating Agreement and Amendment to the Option Agreement setting forth the changes for each Investor’s acceptance.

The Investment Summary is a preliminary overview of the investment opportunity and is circulated to investors who have indicated a desire to receive it. It contains preliminary information on the promissory notes, underlying properties, legal structure of ownership entity, sources and uses of funds, income and expense forecast and projected investor returns. After reviewing the Investment Summary, investors are to give an indication of interest if they are interested in receiving the Operating Agreement and Option Agreement and potentially making an investment in Enhanced Assets LLC. Among other things, this allows us to allocate units among investors should units be over-subscribed, and verify investors’ accredited status.

The Operating Agreement is the agreement among manager and members (investors) and sets forth the manner in which the Company will be run. It further contains key instructions related to rights, transferability, communication and other pertinent matters.

The Option Agreement is document uses to subscribe to membership units in the Company and contains an application to purchase a certain number of units. To subscribe (invest), an investor returns a signed, notarized copy of the Option Agreement setting forth the number of units to be purchased and wire the corresponding required funds to Enhanced Assets LLC designated bank account. Once the Managing Member receives the signed, notarized Option Agreement as well as the signed Operating Agreement, the Managing Member then counter signs the Option Agreement and Operating Agreement, and forwards to the Investor. After agreements are completed wiring instructions will be provided to the investor. Wires are expected to be received within (3) business days after the agreements have been signed by both parties.

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This Investment Opportunity Summary (“Summary”) is confidential, subject to change and/or withdraw at any time, has been prepared solely for informational purposes, and is not to be used for any other purpose. It is not intended as an offer to sell, or the solicitation of an offer to buy any securities, any such offer can only be made by pursuant to the final Option Agreement (“OA”) to suitable accredited investors. This Summary only illustrates and summarizes the investment opportunity, is qualified in its entry by such and should be considered only in conjunction with the OA.

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Enhanced Assets Key Team Members

Acquisitions and Due Diligence – Mark Epstein, Jason Marcil (See Mark’s and Jason’s Bio’s attached.)

• 40+ Cumulative Years in Commercial and Residential Real Estate • Relationships with dozens of note brokers established

Operations – Mark Epstein, Jason Marcil

• 40+ Cumulative Years in Commercial and Residential Real Estate

Asset Management, Property Sales – Mark Epstein • 35+ Years in Commercial and Residential Real Estate • 18+ Years Asset Managing

Financing and Investor Relations – Jason Marcil

• Over $14,000,000 in equity positions in note deals sold during 2014-2016

Third Party Support

Foreclosure / Bankruptcy / Loan / Litigation Counsel Coby Halavais, [email protected]

Foreclosure Alternatives/Borrower Relations Counsel John McCan, [email protected]

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Jason Marcil Bio

Jason Marcil has been involved in various aspects of the real estate industry ever since a very young

age. He began his real estate career at 17 years old working for his father’s property management company as a leasing consultant at the Del Rey Club Apartments in Playa Del Rey, California. During the first 3 months of his involvement he was personally responsible for completing 56 new tenant leases. Following his leasing activities, he worked as a bookkeeper in the Palos Verdes Investments’ Executive Office, with a focus on identifying areas to save on management costs and loan reserve minimums.

Between his first and second year of college, Mr. Marcil project-managed two fix and flip homes in Los Angeles, California for Palos Verdes Investments. He successfully executed the asset level business plans, added value and sold them both for an annualized return on investment of 22% and 37% respectively.

After he finished college, Mr. Marcil returned to the Real Estate Industry upon discovering how to profit from acquiring discounted nonperforming real estate loans. He worked as an Investment Advisor with Continuum Analytics, a goliath in the Southern California note market. Continuum Analytics creates wealth by working to cure the non performing notes they acquire, either through a payoff at the foreclosure sale or by foreclosing and acquiring the underlying properties, and then selling the properties. Between 2014 and late 2015 Continuum Analytics purchased over $300,000,000 worth of defaulted notes financed via a combination of bank loans and investor capital. Mr. Marcil was responsible for generating the marketing material for each new investment and selling equity positions to Investors. He personally sold over $14,000,000 worth of equity positions to dozens of Investors from early 2014 through late 2015.

While working with Continuum Analytics, Mr. Marcil established his first real estate company, New West Real Estate Services, Inc. (www.InvestWithNewWest.com). New West, synergistic to Continuum Analytics, connects real estate operators who are looking for 3rd party Capital with Investors. New West offers various opportunistic investments including discounted non-performing notes, REO’s, direct distressed real estate acquisitions through auctions and conventional investment properties across all property types.

In early 2016 Mr. Marcil pursued his goal to start his own investment company and established Enhanced Assets LLC, which focuses on acquiring nonperforming loans at a discount and pursuing one of four proven exit strategies to maximize return on investment. Enhanced Assets does this by providing borrowers with alternatives to foreclosure and bankruptcy, which allows them to pay-off their debts quickly. Mr. Marcil invests his own capital, as well capital from 3rd party investors, and lenders to fund his note purchases.

Mr. Marcil understands what it takes and excels at helping investors meet their financial goals, working in a variety of capacities including client relations, investment analysis, asset acquisitions, establishing and executing asset-level business plans, maximizing budget efficiency and asset management. His focus is to identify opportunities that provide the highest potential ROI’s coupled with the lowest feasible risk.

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Mark Epstein Bio

Mark Epstein has specialized in real estate investment for some 34 years and has brokered and or asset

managed over 2,600 residential income units and more than 1,000,000 square feet of commercial space, exceeding $200 million in value. Prior to establishing Mark Epstein and Associates, he co-founded the real estate investment and asset management company, Orchid Asset Advisors Limited (“OAAL”). OAAL was a joint venture with Cargill Financial Services Corporation, one of the world's oldest and largest privately held companies employing 80,000 personnel in over 150 countries with annual revenues exceeding $60 billion. Mr. Epstein was Chairman of Orchid Fund Six, a property fund regulated by the Security and Exchange Commission of Thailand and on the Investment Committees of Orchid Fund Four, Five and Seven.

During his 4 years as a partner of OAAL, Mr. Epstein coordinated the acquisitions of over $55

million in opportunistic real estate investments through acquiring discounted, non-performing promissory notes. Note underlying asset classes included apartments, hotels, office, retail and industrial. He sourced and structured the transactions, coordinated the due diligence teams, and the underwriting process, and closed all acquisitions. He organized and implemented the various properties’ renovation programs, asset management from acquisition through stabilization and distribution of sales proceeds to equity partners upon disposition. Prior to founding OAAL, Mr. Epstein was Managing Director of Colliers Jardine Thailand, Ltd. and managed the Thailand office of this multi-disciplined international real estate brokerage and services organization. Mr. Epstein was responsible for managing all brokerage, research, development consulting, asset management, and appraisal services departments. During the 1980’s, Mr. Epstein was Vice President of Marketing for Property Dynamics, Inc., an apartment building syndication, renovation and management company in Southern California. He conducted both sales and acquisitions of apartment and office buildings and he worked closely with the company’s property management division as a liaison for the company’s third party co-investors. In addition to Mr. Epstein’s real estate investment and asset management activities, he consults third party businesses on an array of issues from business planning, marketing, budgeting and human resources. (See www.EpsteinAssociates.com.) His business consulting and leadership skills led to a five year tenure as Chairman of the Board at the Los Angeles Music Academy. Mr. Epstein’s greatest strengths are in leadership, investment analysis, establishing and executing asset-level business plans, asset management, real estate sales / acquisitions, strategic planning and maximizing human resources value. Mr. Epstein excels at the challenges of leading entities in highly competitive environments and working with teams in creating and executing strategic programs to maximize return on investment. His many years of success and in-depth knowledge of the real estate industry are of extreme value in this context.

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