Wealth Creation and Preservation …

… can be accomplished at the same time

but we’re not telling you anything you haven’t already experienced

The consumer price index is kept artificially low …since 1991 between 1.6 percent and 3.3 %

… the real Inflation rates have been closer 5% and 6% and some estimate it’s even higher

More inflation is on its way …

Why?

Bear Sterns 29 BillionBank of America 97 Billion

Automobile Industry 97 BillionAIG 112 BillionGE 139 Billion

Citi Bank 235 BillionHome Owners 300 Billion

Fanny and Freddy 400 BillionIraq War 507 Billion

TARP 700 BillionStimulus 787 Billion

Total Up To Now: 4 Trillion

New Spending Commitments: 7.8 TrillionTotal Committed Spending: 12 Trillion

60 Trillion Dollars of Unfunded Obligations to Social Security Medicare and Medicaid

The only way out of this situation is inflation with

the potential for hyperinflation

Debt andObligations

GNP

with inflation everything gets more valuable except money

What is theSolution?

If inflation is high or rising, what is the best investment category?

A. Paper Assets:• Stocks• Bank Account• Certificates of deposit• Bonds

B. Tangible Assets:• Gold & Silver• Art• Real Estate• Land

Best investment when “discretionary” spending is at an

all-time low? (and likely to stay that way)

• Food• Gas• Rent• Utilities

• Vehicle• Insurance• Health Care• Taxes

Recession Proof Investment• People will pay rent in greater numbers as record breaking foreclosure volumes reduce home ownership and increase non-owner occupied homes

• Rents provide consistent monthly cash-flow

• Rental income typically rises with inflation

• Once the excess inventory on the market is purchased, it is likely home prices will increase to the price of the replacement cost (or higher)

Low Maintenance Cash Flow Real Estate

An Overview

We have a solution that addresses both wealth creation and preservation…

Buy and HoldExamples include:

• Commodity positions• Land• Your personal home• Gold

Cash Flow or Buy and Hold?

Cash FlowExamples include:

• Rental properties• Vending machines• Parking lots• Car washes

Once in a Generation Opportunity

“Buy when there is blood in the streets.” – John D. Rockefeller

“More money has always been made in a down market than in an up market.”

– Wendy Patton, notable real estate investor and broker

“Timing is often the single most important factor determining the success or failure of a real estate

transaction.” - Craig Hall, real estate mogul and author

What is the

Solution

In our lifetime there has never beena better time to buy real estate…

… but it still needs to be the right real estate

Our Approach

What’s Your Investment Style?

Low risk?

High return?

Conserve capital?

Avoid risk?

High Risk

Venture Capital

Start-Up Business

“Private Placements” / Angel Investing

High Reward

7:1 ROI

100%-200% ROI

18%-25% ROI

Low Risk

Certificate of Deposit

Triple-A Rated Bonds

Low Reward

2%-3% ROI

4%-5% ROI

Mason Hill Investments are…Low Risk:• Principal is all in “free & clear” real estate• Cost is 65% below replacement value• 100% controlled by the investor

Moderate Return:• “Cash on Cash” = 10%-12% Annually• Appreciation = 8% to 10% Annually• Tax Benefits = 3%-4% Annually• TOTAL ANNUAL RETURN = 21%-26%

Most real estate investments are entered in to for one of two reasons: cash flow or capital gains. And typically, you get one or the other – but rarely both

“A Tale of Two Cities”

The City You Live In• Great place for family, job, career• Sports, weather, culture, activities

The City You Invest In• Good rental market• Appreciating property values• Ability to acquire property for 50% or less of replacement value

Timing The Market

Mason Hill creates cash-flow opportunities based on:– The ideal time to enter a market– Pricing less than 50% replacement value– Attractive annual return on investment (20%-30%)

90% of U.S. markets are currently on Mason Hill’s ‘avoid list’ (but not all…)

Mason Hill analysts determine market “bottoms” in the 150 key real estate markets we track

Successful Cash Flow Properties…

• Have a competent property manager• Are located in an area where the rental market will remain strong• Are newer (constructed approx. 2000-2009)• Bring in income on day one • Can be purchased for at least 50% below replacement cost

Low Maintenance Cash-Flow Real Estate

Rental properties are an ideal for:– Inflationary times– Steady cash flow– Direct control over investment– Low risk to capital

Mason Hill:– Provides properties that are “rent ready”– Offers properties at 60% to 65% below replacement cost– Locates real estate in markets our analysts predict will appreciate well– Manages the properties and details

Our formula takes into consideration:

• The discount available on the properties

• The rental rates and stability

• The replacement cost of the property

• The potential for appreciation

And when the numbers line up we move in and take a position for our clients

We takecare of

everything

Market analysisAcquisition

Manage it for youMaintenance Agreement

You just get the monthly check

The title is yours…

…and we take care of all the headaches

If you choose …

You can always do it yourself

Or hire someone else

We buy homes, duplexes, typically around 1,400 to 1,600 or so square feet, often with attached two car garages. They within four to five years old and in decent neighborhoods.

Typical Units

Location: Various Locations in the US Style: Single Family Home or Duplex Size: Typically 1400 to 1600 square feet, 3 bed 2 bath Condition: Typically updated both cosmetically (new carpet, new paint) as well as havc, plumbing, fixtures, windows, etc…   We can also provide a full one year ‘wall to wall’ warranty, parts and labor, for any major repairs of any kind. Typical Purchase Price: $60,000 to $75,000 Typical Replacement value of the home: $80,000 for materials, $45,000 for labor; $25,000 for a lot = $150,000. Typical Appraisal value = 100k or so (was 200k to 225k two years ago).

Acquisition Price

Monthly Gross Cash Flow

Monthly Net Cash Flow*

Monthly Appreciation

Monthly Cash Flow Plus Appreciation

$70,000

$900

$600

$500 to $1,000

$1,100 to $1,600

Mason Hill’s Model The “back of the napkin” numbers for a property purchased from Mason Hill…

* Deducts property management fee of 10%, property taxes, insurance, and one month’s “vacancy” per year.

The Deal

Purchase Price: $65,000

Monthly rental income: $900

Typical expenses:Property Tax - $45

Insurance - $65 Property Management Fees - $90

Maintenance Agreement - $100Total Expenses ($300)

Typical monthly / annual net rent: $600

Cash on Cash Annual Income $7,200 or 12% Appreciation 0-10%

The Next Step…If you are interested in acquiring a Mason Hill property, please email or call whomever referred

you to our program.

www.MasonHill.com