Summerlin Asset Management, LLC

Investment:

Purchasing Bank Owned Real Estate Portfolios

TABLE OF CONTENTS

1. THE BUSINESS: .............................................................................................................. 3 1.1. Business Summary ............................................................................................................................... 3

1.2. Investing in Bank Owned Real Estate Notes - Example ........................................................... 3

1.3. Business Opportunity .......................................................................................................................... 3

2. THEORY: ........................................................................................................................ 3 2.1. Money in Reference to Time .............................................................................................................. 3

2.2. Current Situations Seen by Banks ................................................................................................... 4

2.3. In Preparation to Exploit ................................................................................................................... 4

2.4. Report on Pending Home Sales Spurs Recovery Talk ............................................................... 4

2.5. Are Home Prices Finally Hitting Bottom? .................................................................................... 5

2.6. Current Marketplace Data ................................................................................................................ 7

3. OUR POSITION: .............................................................................................................. 7 3.1. What We Do ........................................................................................................................................... 7

3.2. Securitizing Your Investment ........................................................................................................... 7

3.3. Choosing The Notes .............................................................................................................................. 8

3.4. Workouts ................................................................................................................................................. 8

4. MANAGEMENT TEAM: ................................................................................................. 10 4.1. James Stepanian, President & CEO .............................................................................................. 10

4.2. Peter G. Pakes, CFO............................................................................................................................ 10

4.3. Adam C. Pakes, COO .......................................................................................................................... 11

4.4. Shannon DeRosby, Senior Vice President of Operations ....................................................... 11

4.5. Katherine Fabris, VP of Business Management ....................................................................... 11

5. STRATEGY: Risks and Advantages ............................................................................. 12 5.1. Risks ....................................................................................................................................................... 12

5.2. Advantages .......................................................................................................................................... 12

6. OPPORTUNITY: ........................................................................................................... 12 6.1. Direct Purchase of Performing and Non-Performing Notes ............................................... 12

6.2. Servicing and Underwriting ........................................................................................................... 13

6.3. Conservative Estimations ............................................................................................................... 13

Page 3 of 13

1. THE BUSINESS:

1.1. Business Summary

Summerlin Asset Management, LLC (SAM), is a diversified real estate investment and management company. SAM's expertise is the purchase, service, and resale, of both performing and non-performing real estate notes secured by the Deed of Trust or Mortgage. SAM has been operating for over six years acquiring various residential mortgage assets. We provide secure Trust Deed or Mortgage investments that are recorded and insured by a licensed title company.

1.2. Investing in Bank Owned Real Estate Notes - Example

Our entity will purchase a pool of sub-performing and/or non-performing real estate notes

secured by the 1st Deed of Trust or Mortgage. The purchase price will be negotiated between SAM and the financial institution that is holding the note.

The main objective is to acquire the 1st lien position note at a price that is significantly lower than the current market value of the subject property. Another objective is to make the Trust Deed or Mortgage a performing note that can be sold for close to 1.5 times the purchase price.

The relationships we have established with banks throughout the United States gives our investors the opportunity to invest in “distressed” or “charged off” real estate notes that are secured to properties across the country. We are able to purchase these mortgages at a large discount, creating an investment that is very secure and offers an excellent rate of return.

1.3. Business Opportunity

Banks make their money when customers deposit money into their bank. The bank will then invest a significant amount of that money into real estate notes aka; mortgages. Now SAM investors have an opportunity to make the same investment at a significant discount because real estate prices have dropped significantly and financial institutions are willing to sell at discounted prices. At SAM, we service each transaction for our investors and are dedicated to complete operational transparency. Starting in June 2013, Summerlin know offers investors an equitable joint venture purchase opportunity. Summerlin will fund approximately 50% of an acquired mortgage pool, and allow investors to own a percentage in each note in that pool. Two federal banks will govern the purchase, sale, and disposition of each note. First BOFI Federal Bank (NASDAQ: BOFI) will lend Summerlin money for this transaction and US BANK

will be the legal custodian of the wet documents. Both Banks confirm Summerlin’s value, underwriting, including title insurance, assignments, and all collateral documents.

2. THEORY:

2.1. Money in Reference to Time

Since the beginning of time, the theory remains; “money equals power.” Banks have always had the money and subsequently have always had the power, until now. Though they still

Page 4 of 13

have the money, their power is diminishing. To defend that statement, take a moment and

contemplate the housing market that we live in today. Financial Institutions across the world have come into hard times for the success of “GROWING” their portfolios. Economic hardships and the course of world conditions, whether it is political or social, have placed a tremendous strain on the Markets that we do business in today. These factors make the markets in which we conduct our daily business both lucrative and indefinite. However, many reassuring opportunities still present themselves.

2.2. Current Situations Seen by Banks

These Institutions still hold large portfolios valued at 500 million to several billion. When a mortgage note becomes “non- performing” by the law the bank must also set aside reserves of 50% of the balance owed pursuant to federal banking regulations. That being the case, we

positioned ourselves to create an opportunity for the betterment of all parties involved in these said Real Estate Portfolios. The banks sell off their portfolios and are once again liquid, we acquire notes at significant discounts, and the end user/borrower is provided a solution that helps their financial position. At this point, questions may be surfacing.

2.3. In Preparation to Exploit

This may be the junction where you question why the banks would ever want to sell off their assets so cheap. The answer is simple; a sub performing and nonperforming asset is a liability for the banks. The banks are setting aside funds that the Federal Government requires to guarantee a scratch and dent loan. Thus, recovery of capital on the note and release of guaranteed funds that were set aside is essential for the bank to get money working for them

again.

Why don’t banks simply do what we are doing for themselves? The long term costs necessary to set up the infrastructure to service these portfolios is one that is entirely unknown. The problem created by attempting to recover the notes themselves is the uncertainty of the cost. For instance, the time needed to create an efficient recovery system will be more costly than the spread to sell these notes and to recover the guaranteed funds that were set aside. We now have the advantage. Our company possesses the infrastructure necessary to work on recovering the balances on the first position deeds. This is our absolute advantage over the banks.

2.4. Report on Pending Home Sales Spurs Recovery Talk

After reaching the highest level in over six years, pending home sales declined in June, with rising mortgage interest rates beginning to impact the market, according to the National Association of Realtors®. The Pending Home Sales Index,* a forward-looking indicator based on contract signings, edged down 0.4 percent to 110.9 in June from a downwardly revised 111.3 in May, but is 10.9 percent higher than June 2012 when it was 100.0; the data reflect contracts but not closings. Pending sales have been above year-ago levels for the past 26 months, and the pace in May was the highest since December 2006 when it reached 112.8. Lawrence Yun, NAR chief economist, said higher home prices and interest rates are beginning

Page 5 of 13

to impact affordability, notably in high-cost regions. “Mortgage interest rates began to rise in May, taking some of the momentum out of contract activity in June,” he said. “The persistent lack of inventory also is contributing to lower contract signings.” Yun notes not all contracts go to closing. “There are some homebuyers who sign contracts with strong lender commitment letters, but have floating mortgage interest rates. Those rates can be locked as late as 10 to 14 days before closing, so some homebuyers may change their minds if the rate rises too much, which apparently happened with some sales scheduled to close in June,” he said. “Closed sales may edge down a bit in the months ahead, but they’ll stay above year-ago levels.” The PHSI in the Northeast was unchanged at 87.2 in June but is 12.2 percent higher than a year ago. In the Midwest the index slipped 1.0 percent to 114.3 in June but is 19.5 percent above June 2012. Pending home sales in the South fell 2.1 percent to an index of 118.3 in June but are 9.5 percent higher than a year ago. The index in the West rose 3.3 percent in June to 114.2, and is 4.4 percent above June 2012. Based on year-to-date sales activity, and stable contract signings expected for the balance of the year, NAR projects existing-home sales to rise more than 8 percent in 2013. Inventory shortages will lead the median price to rise by nearly 11 percent this year.

2.5. Are Home Prices Finally Hitting Bottom?

Existing-home sales rose strongly in July 2013, with the median price maintaining double-digit year-over-year increases, according to the National Association of Realtors®.

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 6.5 percent to a seasonally adjusted annual rate of 5.39 million in July from a downwardly revised 5.06 million in June, and are 17.2 percent above the 4.60 million-unit pace in July 2012; sales have remained above year-ago levels for 25 months.

Lawrence Yun, NAR chief economist, said changes in affordability are impacting the market. “Mortgage interest rates are at the highest level in two years, pushing some buyers off the sidelines,” he said. “The initial rise in interest rates provided strong incentive for closing deals. However, further rate increases will diminish the pool of eligible buyers.”

Despite higher mortgage interest rates, Yun identified compensating factors that can sustain a continued recovery. “Although housing affordability conditions will become less attractive, jobs are being added to the economy, and mortgage underwriting standards should normalize over time from current stringent conditions as default rates fall.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.37 percent in July from 4.07 percent in June, and is the highest since July 2011 when it was 4.55 percent; the rate was 3.55 percent in July 2012. Total housing inventory at the end of July rose 5.6 percent to 2.28 million existing homes available for sale, which represents a 5.1-month supply2 at the current sales pace, unchanged from June. Listed inventory is 5.0 percent below a year ago, when there was a 6.3-month supply. “Tight inventory in many areas means above-normal price growth for the foreseeable future,” Yun said. The national median existing-home price3 for all housing types was $213,500 in

Page 6 of 13

July, which is 13.7 percent above July 2012. This marks 17 consecutive months of year-over-year price increases, which last occurred from January 2005 to May 2006. The median price has risen at double-digit rates for the past eight months, and is now 7.3 percent below the all-time record of $230,400 in July 2006. Two years ago, the median price was 25.7 percent below the peak. Distressed homes – foreclosures and short sales – accounted for 15 percent of July sales, the same as in June and matching the lowest share since monthly tracking began in October 2008; they were 24 percent in July 2012. Continuing declines in the share of distressed sales account for some of the price gain. Nine percent of July sales were foreclosures, and 6 percent were short sales. Foreclosures sold for an average discount of 16 percent below market value in July, while short sales were discounted 12 percent. The median time on market for all homes was 42 days in July, up from 37 days in June, but is 39 percent faster than the 69 days on market in July 2012. Short sales were on the market for a median of 72 days, while foreclosures typically sold in 50 days and non-distressed homes took 40 days. Forty-five percent of homes sold in July were on the market for less than a month.

Data from realtor.com, NAR’s listing site, shows the tightest inventory conditions, reported as median age of inventory, are in Oakland, Calif., 20 days; Denver, 31 days; and the Seattle area, 36 days. First-time buyers accounted for 29 percent of purchases in July, unchanged from June, but are down from 34 percent in July 2012.

All-cash sales comprised 31 percent of transactions in July, the same as in June; they were 27 percent in July 2012. Individual investors, who account for many cash sales, purchased 16 percent of homes in July, down from 17 percent in June; they reached a cyclical peak of 22 percent in February of this year.

NAR President Gary Thomas, broker-owner of Evergreen Realty in Villa Park, Calif., said more repeat buyers are using cash. “The overall percentage of cash purchases has been fairly steady, as has the share of first-time buyers, but the investor share has been trending down since February. This means more repeat buyers are using cash in this tight-credit environment,” he said. “With a steady decline in lower priced inventory, particularly in foreclosures, investors are finding fewer bargains to buy.”

Single-family home sales rose 6.3 percent to a seasonally adjusted annual rate of 4.76 million in July from 4.48 million in June, and are 16.4 percent higher than the 4.09 million-unit level in July 2012. The median existing single-family home price was $214,000 in July, up 13.5 percent from a year ago.

Existing condominium and co-op sales increased 8.6 percent to an annual rate of 630,000 units in July from 580,000 in June, and are 23.5 percent above the 510,000-unit pace a year ago. The median existing condo price was $209,600 in July, which is 15.5 percent higher than July 2012.

Regionally, existing-home sales in the Northeast surged 12.7 percent to an annual rate of 710,000 in July and are 20.3 percent above July 2012. The median price in the Northeast was $271,200, up 6.7 percent from a year ago.

Page 7 of 13

Existing-home sales in the Midwest rose 5.8 percent in July to a pace of 1.28 million, and are 20.8 percent higher than a year ago. The median price in the Midwest was $168,300, which is 9.5 percent above July 2012.

In the South, existing-home sales increased 5.0 percent to an annual level of 2.11 million in July and are 16.6 percent above July 2012. The median price in the South was $183,400, up 13.6 percent from a year ago.

Existing-home sales in the West rose 6.6 percent to a pace of 1.29 million in July and are 13.2 percent higher than a year ago. The median price in the West, driven the most by a supply imbalance, was $287,500, which is 19.2 percent above July 2012.

2.6. Current Marketplace Data

In summary, the management team at Summerlin Asset Management believes this current data supports our opinion that home prices have stabilized and will remain flat for the next 24 months. Our channel checks confirm another wave of foreclosures will hit the market in the latter half of 2013, however there remains strong demand from home buyers waiting to buy slightly discounted lender-owned homes. This environment creates an ideal investment environment for Summerlin Asset Management and its clients. We remain steadfast in our thesis that purchasing first position debt at a steep discount is the best investment vehicle in the residential real estate marketplace today. Therefore, investing in private mortgage notes is the highest and safest way to earn double digit returns on your money!

3. OUR POSITION:

3.1. What We Do

Our goal, through these transactions, is solely based on the ability to acquire these large portfolios of notes, service each asset in-house, and then dispose of the asset to attain the highest possible ROI. Summerlin Asset Management has direct relationships to purchase said

portfolios via Financial Institutions such as Deutsche Bank, JP Morgan Chase, HSBC, Bank of America, and Citi Group. These large scale and accredited firms have chosen to liquidate their Real Estate asset portfolios. Recently the banks have decided that it is essential to start liquidating the pools of mortgage backed securities and strip out the notes that have trending delinquencies. Ideally, they are holding mass portfolios of liabilities; these said liabilities can be acquired at significant discounts, conversely turning them into assets for our firm.

3.2. Securitizing Your Investment

Your funds will be used for the acquisition of these portfolios and will be secured by first lien positions on residential properties. Our LLC, which you, the investor, will be a member of, will be the recorded mortgagee on title in the public domain. Quickly referencing back, SAM is now the bank; we have the money, and possess the power.

Page 8 of 13

At SAM, we service each transaction for our investors and are dedicated to complete

operational transparency. Starting in June 2013, Summerlin know offers investors an equitable joint venture purchase opportunity. Summerlin will fund approximately 50% of an acquired mortgage pool, and allow investors to own a percentage in each note in that pool. Two federal banks will govern the purchase, sale, and disposition of each note. First BOFI Federal Bank (NASDAQ: BOFI) will lend Summerlin money for this transaction and US BANK will be the legal custodian of the wet documents. Both Banks confirm Summerlin’s value, underwriting, including title insurance, assignments, and all collateral documents..

3.3. Choosing The Notes

There is a very tedious and important timeline involved with these large unpaid balances of notes. Most importantly is the “scrubbing” process. This is a period where we will assess each

individual file within the pool of notes. While looking through these larger pools, we inevitably find certain files with scenarios that will take longer to exit and in that case we can categorize whether the yield is high enough to move towards acquisition. After identifying these files, we, in some cases, remove them from the pool, as these types of notes do not fit our business model. This will typically bring down the unpaid balance by 20 percent from an un-scrubbed pool to a scrubbed pool, ultimately saving investor dollars and increasing the rate of return on capital injected. This is an important step in our due diligence process to make our investor’s money secured. We also account for 3 percent attrition rate on the scrubbed pool for these same instances, bankruptcies, and deaths as time goes on to collect or exit on the notes.

3.4. Workouts

Short Payoff

One of the most equitable options we have for a borrower is a short payoff. In this instance, we provide a 6 month option where borrower can pay off their mortgage at a price below the market value of the property. This happens by way of a family member putting up the cash, private money financing, or using 401k proceeds (if available) to pay off the home. Here is an example:

Unpaid Balance $300,000.00 Home Value $200,000.00 Purchase Price of Note $120,000.00

In this case, we would offer the borrower a payoff at $180,000.00. In addition, we will write off the remaining debt and relieve the borrower from the difference. Since SAM is still profitable, we do not 1099 the borrower for the difference, thus creating no tax liability for the borrower.

Page 9 of 13

Short Sale

The most common of all workouts, we work with the borrower to list their home. During the short sale period, we allow the borrower to live in the home with no mortgage payments. By keeping the borrowers in the home, it ensures SAM that the house is being properly maintained while the short sale process continues. If the borrower has a 2nd lien, SAM will work diligently with the subordinate lien holder to reduce their balance and be paid through escrow. Upon closing, SAM will provide the borrower with financial assistance to relocate in a smooth and efficient timeframe.

Loan Modification/Forbearance Agreement

In this case, the borrower fell behind for a variety of reasons; loss of income, health issues,

career change, etc. The borrower has expressed the desire to stay in the home and demonstrated the financial ability to sustain the current mortgage payment. We create a forbearance agreement that will take the total amount of payments owing and divide the sum by 12. We add the 1/12 to the regular monthly payment. This will immediately help borrower to get back on track, increase our cash-on cash return, and reestablish the borrower as a seasoned performer. In the event that the borrower lapses on their forbearance payment, we reserve the right to initiate foreclosure.

Cash for Keys/Deed in Lieu of Foreclosure

This is an instance where borrower is emotionally disconnected with the home and is living in the home. We create an opportunity where the borrower is released from all personal liability on the obligation and walk away with enough cash to relocate and establish a new

life. We offer them an aggressive cash incentive to sign over the deed to the home. This scenario exists if the home only has a first position lien (that we purchased) and the balance of the loan is higher than the value of the home. After we come to a formal agreement in writing, we perform a thorough inspection of the home to identify potential problems. Our contract states that within our discovery process we identify problematic situations, i.e. roof leak, we have the right to reduce our cash offer to the current owner. Our team encourages the home owner to treat this as a business decision.

Principal Balance Reduction

In this scenario, the balance of the borrower’s loan is 175 percent or greater than the value of the home. In this case, borrower wants to keep their home. However, the borrower realizes

they will never recoup the negative equity that they are paying down.

SAM will structure a 12 month program to write down the balance of the borrower loan in exchange for 12 months of un-interrupted, on-time payments. Here is an example below:

Unpaid Balance $300,000.00 Home Value $200,000.00 Purchase Price of Note $120,000.00

Page 10 of 13

Monthly Principal and Interest Payment $1,896.20

We will give the borrower a $5000 per month balance reduction at the end of the 12th month assuming borrower has made 12 on time payments. The end result is our portfolio enjoys a cash-on-cash return of 18.96 percent on our $120,000 investment while the borrower has the benefit of reducing the balance of their loan by $60,000 by month 12. This gives the borrower hope that their house will become an asset in the near future. In addition, SAM now has the ability to sell a 12 month, seasoned, performing loan, upwards of 70 percent of the home value. In conclusion, our return on investment for 12 months is 35.62 percent.

Foreclosure

Foreclosure is the last resort for SAM. If our asset managers are not able to complete either of

the above, we deploy our legal team to recoup the asset via Foreclosure. This process can take from 120 days to 360 days. Our philosophy is to price the asset to sell at the foreclosure court steps. In doing so, we immediately recoup funds and do not ensure the sale process. In the event the asset reverts back to SAM, our team of realtors will list and dispose of the asset as an REO.

Sam will perform an asset search of any borrower. If other assets exist, we will explore our deficiency rights against the borrower. This is an unlikely scenario, but one that still exists.

4. MANAGEMENT TEAM:

4.1. James Stepanian, President & CEO

Mr. Stepanian has been in the real estate debt industry since 2006 when he became a senior financier to Trimark Funding Inc., a California based asset backed lender. In 2008, Jim founded Summerlin Asset Management and quickly established contractual agreements with several banks including Nevada State Bank, Zions Bancorp, Saratoga Bank, Tennessee National bank, and Kondaur Capital Corp to name a few. Mr. Stepanian’s expertise is managing the purchase, re-sale, and servicing of performing and non-performing real estate notes. In 2010, Mr. Stepanian managed the rapid growth of Summerlin Asset Management that now has corporate offices in California, Arizona, and contracted marketing agents in 23 states.

Mr. Stepanian has over 17 years of experience in corporate management including sales and marketing, new product development, distribution, regulatory compliance, and mergers & acquisitions. Prior to starting SAM, Mr. Stepanian served as the CEO of Wholesale Telecom Inc., (1998-2007) a California public utility who resells voice and date telephony services to midcap corporations.

4.2. Peter G. Pakes, CFO

Mr. Pakes has been in the real estate debt industry since 2005 when he was the CFO of Select Financial, based out of Arizona. In 2008, Pete partnered with Jim Stepanian and Adam Pakes

Page 11 of 13

to form Summerlin Asset Management, LLC. Mr. Pakes manages the day to day internal operations of Summerlin Asset Management. Pete continues to build and maintain the model of special servicing and equitable dispositions for Summerlin Asset Management, borrowers, and its investors.

Mr. Pakes has also managed and successfully developed land in Western Arizona to completion. In 1994, Mr. Pakes was hired by SBC Global Services and served for 15 years as Senior Executive AM covering the financial sector in the Midwestern United States.

4.3. Adam C. Pakes, COO

Mr. Pakes has over 6 years of experience in the mortgage industry. Since 2004, Mr. Pakes has held a Broker’s license in California, Arizona, Florida, and Washington. Adam's expertise is overseeing the acquisition and disposition of all non performing and performing Mortgages. Mr. Pakes is responsible for specialty servicing including short payoff, short sale, loan modification, and final disposition of each mortgage asset. Through his experience, Mr. Pakes has grown SAM assets under management to over $50,000,000. 4.4. Shannon DeRosby, Senior Vice President of Operations

Shannon DeRosby is a Senior Vice President of Operations for Summerlin Asset Management. With a core competency in transactional real estate including Escrow, Title, and Processing Management. In 1992, Ms. DeRosby was hired at First American Title, where she worked her way up to a Certified Escrow Officer position. Eventually, Shannon switched title companies, and was promoted up the ranks to Assistant County Manager / Sales Manager for Mohave County, Arizona. In this position, Shannon helped hundreds of REALTORs develop marketing programs and techniques to help increase their bottom line. In October of 2007, Shannon decided to venture near her parents in Flagstaff, Arizona. In 2009, Shannon was hired to open the Keller Williams office as the Team Leader for Keller Williams Realty in Flagstaff, Arizona. After a successful merger with the Prescott Keller Williams, Shannon moved home to her roots in Lake Havasu City, Arizona where she has been with Summerlin Asset Management since June of 2011. 4.5. Katherine Fabris, VP of Business Management

Katherine Fabris joined Summerlin Asset Management, LLC (SAM) as the Director of Marketing in January 2012 and currently acts as the company’s VP of Business Management. In this position Ms. Fabris is responsible for Business Development, Lead Generation marketing, and general research. Ms. Fabris has over 12 years experience working in Sales & Marketing, Information Technology, and International distribution. Ms. Fabris has extensive experience working with companies across the United States and internationally. She earned a B.S. in Technical Management with a focus in Computer Information Systems and an M.B.A. with a focus in Project Management from Keller Graduate School of Management. Today, Ms. Fabris manages Summerlin Asset Management’s marketing division, managing relationships with private investors, financial institutions, realtors, brokers, and SAM agents.

Page 12 of 13

5. STRATEGY: Risks and Advantages

5.1. Risks

There are necessary steps that SAM will take in order to insure that your capital is secured. This includes our responsibility to conduct due diligence to establish collateral value, insurance, title history, and terms of the note. This is traditionally conducted in the same manner as conventional lenders. We provide a level field of controlled risk and hold tightly to consistent risk management practices.

In addition to the significant amount of due diligence, we have created a 16 point algorithm to establish the degree of risk under each individual file. To furthermore establish a true value of the assets on hand, we base all values off of a conservative 30-day fire sale basis. This

ensures that the most accurate values of these properties is taken into account and held as closely as possible to true market 30-day value. SAM will purchase assets within a strict value protocol equal to 50-64 percent of our appraised 30-day property value. At the high range of 64 percent we would pay $128,000 for a first mortgage, whereas property value is appraised at $200,000. Therefore, risk to capital is mitigated by the steep discount SAM purchases its assets for.

5.2. Advantages

In every transaction there exist certain factors that must be in line to set itself above other investment opportunities. Our product being offered possesses many of these attractive qualities. Diversification is primarily the most attractive quality that makes this opportunity feasible. There also is the opportunity to purchase a pool of notes that have performing, sub-

performing and non-performing notes to further diversify the pool. The trend of diversification is becoming vitally important given the turbulence in world markets. In addition, there is no churning that takes place with this investment. What this means is that you don’t experience a payoff on your investment as you would with individual trust deeds. That being the case, your money never sits idle while you look for the next investment opportunity.

6. OPPORTUNITY:

6.1. Direct Purchase of Performing and Non-Performing Notes

Our greatest advantage to this product is the direct purchase of performing and non-

performing 1st position notes. As previously stated, an asset that does not produce predictable income is essentially a troubled asset. We are able to negotiate directly with the lien holders on these assets. This allows us to name our own price and acquire these notes without having your investment being eaten up by heavy commissions, fees, and transfer costs. Performing deeds allows us to mitigate risk alongside the non-performing deeds and allows for a balance of cash flow to offset the non-performing assets.

Page 13 of 13

6.2. Servicing and Underwriting

Through the relationship we possess with our servicing and underwriting partners, our objective is to increase a non-performing note by 30 to 40 percent of its purchase value. We will achieve this through restructuring the note ourselves via our servicing partner. Once we own the notes and have restructured the debts, the collection of the notes is done through the same entity. Currently, our servicing partner has their corporate office in Southern California and is licensed in all 50 states.

6.3. Conservative Estimations

Our LLC projects it will return 100 percent of capital money invested within 18 months. Communication with the borrowers is the key to a successful outcome and usually produces

an expedited exit or disposition of the note. Total liquidation of the portfolio is estimated to be 12 to 24 months. This will allow us to maximize the dollars collected and provide a great solution to the borrower and their position on the property they own.