• Overview Cash Buyer Use Case

• Use Case Sample

• Commonly Asked Questions Regarding the Cash Buyer Use Case

• Next Steps

• Reference Materials - Event Specific Resources

How REAL Makes All Buyers Cash BuyersEvent Overview:

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With REAL, all buyers are cash buyers.With demand exceeding supply in many markets across the country, aspiring homeowners relying on

traditional financing are being shut out of the purchase market by cash buyers. Through its proprietary

equity financing structure, Seashine instantly elevates a homebuyer’s purchase status from

“contingent on financing” to “cash buyer”.

The REAL Solution

● Sharpen your price: Cash buyers have more negotiating power and as a result, secure

properties at a discount to those negotiating on a contingency basis.

● Increase closing speed: Increase competitiveness in your purchase market by being able to

close in as few as two weeks.

● Retain expected economics: As a REAL holder, you retain 100% of the capital appreciation of

the property and the interest write-off advantages of property ownership.

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Sample ScenarioCash Buyer Use Case

Bob and Sarah are ready to buy their next home. It was

relatively easy for them to buy their existing home years

ago when the market was different; but in today’s market

with demand far exceeding supply, they’ve grown

increasingly frustrated by their offers not being accepted.

They considered giving up and waiting for the market to

become more buyer-friendly but then their agent

introduced them to REAL.

With the ability to engage as a cash buyer with no

financing contingency, Bob and Sarah became

instantly competitive. The power of cash and speed to

close provided by REAL allowed Bob and Sarah to get

their offer accepted and close on their dream home.

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Sample EconomicsCash Buyer Use Case

The following table summarizes a few options - Bob and Sarah chose Scenario (C):

CHARACTERISTICS Credit Score Property Use Property Type Purpose Notes

Bob and Sarah 680-719 FULL-TIME SFR PURCHASE Applicant/Property Details

SCENARIOS (A) (B) (C) (D) Notes

Contract Purchase Price 650,000 650,000 650,000 650,000 Negotiated by Bob, Sarah, and Seashine through the agent

Acquisition Premium ($) (97,500) (130,000) (162,500) (195,000) Acquisition Premium (AP) is the option premium paid to acquire the benefits of ownership

Acquisition Premium (%) 15.00% 20.00% 25.00% 30.00%

Transaction Fee (2.50%) 13,813 13,000 12,188 11,375 Transaction Fee is not paid upfront but added to the Program Balance

Program Balance 566,313 533,000 499,688 466,375 The amount paid by the resident to exercise the option

MONTHLY PAYMENT (A) (B) (C) (D) Notes

Base Payment $3,904 $3,292 $2,735 $2,216 Excludes taxes, insurance, and HOA dues added to the monthly payment

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Timelines & Exercising the OptionCash Buyer Use Case

TIMELINE FOR AMOUNTS DUE

● Bob and Sarah applied for REAL with only their photo IDs and paying $50 ($25 per

applicant). Getting approved as a REAL cash buyer is simple and lacks the onerous

documentation requirements associated with debt financing.

● Within 24 hours of offer acceptance, Bob and Sarah wired their earnest money deposit

($6,500) and Due Diligence Fee ($1,500) to the REAL Homeownership Trust.

● Prior to the contract Due Diligence deadline, Bob and Sarah wired the remainder of

their upfront payment (~$156,000) to the REAL Homeownership Trust. The earnest

money deposit counts towards their Acquisition Premium.

EXERCISING THEIR OPTION

● When Bob and Sarah decide to exercise their option by either buying or selling the

home, the Program Balance of $499,688 is due to the Trust regardless of the current

market value. Bob and Sarah will receive 100% of any net price appreciation of the

property as there is no equity sharing with REAL.

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Most Commonly Asked Questions

● Will the cash offer for the home come from my client, or will that

come from Seashine?

● Homes are going fast—is the process with REAL fast enough to be

able to make a quick offer?

● How does buyer’s commission work when they use REAL?

Cash Buyer Use Case

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Next Steps

Key Information

● Apply to Reserve REAL Capital at apply.realhomeownership.com

● Questions about REAL? Call the Deal Desk at 714-202-9288

● Run sample transactions with the REAL Calculator

● Contact us via email at Deals@REALHomeownership.com

Upcoming Events

● July 15 - Sell and Stay With REAL

● July 20 - The Answer To Income Documentation Challenges

● July 22 - REAL for Entrepreneurs and Self-Employed

To access the One-Sheet and Use-Case Profile associated with the Cash Buyer Use Case as well other REAL marketing, media, and resources, please

visit the REAL Resource Center web-page custom created for your agency.

• How REAL Works - Vault Diagram

Reference MaterialsEvent Specific Resources

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1. REAL utilizes the REAL Homeownership Trust (the “Trust”), a Delaware statutory trust with an independent national bank trustee. The Trust serves as a vault to hold properties, leases, and cash.

2. Seashine and the Client each deposit capital into the Trust. The Client pays the Acquisition Premium and Seashine invests the balance of the purchase price of the home selected by the Client.

3. At closing, the Trust acquires the property for cash, wiring the total purchase price to the closing agent who distributes proceeds to the Seller and commissions to the Real Estate Agent. Title to the property is transferred from the Seller to the Trust.

4. Each month, the Client makes their monthly payment to the Trust. The Trust pays property taxes, insurance, and HOA dues and remits the remaining cash to Seashine as investment returns.

How REAL WorksVault Diagram

At any time during the term the Client can exercise their option by paying the Program Balance to the Trust either by obtaining traditional financing or by selling the Property to a third-party. With REAL, the Client realizes 100% of the net property appreciation associated with the sale of the Property.

SeashineCapital.com

REALHomeownership.com