Investor presentation(flips final)

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<ol><li> 1. 123CURRENT HOUSINGABOUT USMARKET OUR MODEL DESIGN &amp;PROFIT STRUCTURERENOVATION PROCESS4 5 </li><li> 2. We acquire small homes on big lots in goodneighborhoods.We add square footage to the home.Then we sell the home for a profit. </li><li> 3. Corporate PhilosophyTo identify investment strategies that systematically andpredictably produce healthy returns.Corporate Highlights Over 28 years of real estate transactional experience Over 40 years of architectural experience Over 30 years of construction experience </li><li> 4. Kwame Granderson - President Harvard Law educated Real Estate Attorney Nationally recognized speaker on structuring deals &amp; asset protection Structured more than a $1 billion worth of real estate transactions Norberto Nardi- Vice President Masters Degrees in Architecture from National University of Cordoba,Argentina and Urban Design from Columbia University Award winning residential and commercial designer of projects in the US,Italy, Spain and Germany as well as more than 20 projects in China. Key Players Jeremy GrandersonGeneral contractor over 30 years Paoblo NardiGeneral contractor specializing in high-end finishes 15 years Carla Buigues-WashingtonSan Gabriel Valley Realtor over 20 years </li><li> 5. ABOUT US CURRENT HOUSING MARKETHedge funds are bidding up properties being sold attrustee sales.Banks are hiring appraisers to value properties beforeapproving shortsales thereby reducing potential discounts. Total number of foreclosures shrinking as the marketslowly begins to rebound.PROBLEM: Saturated market with shrinking profit margins. </li><li> 6. SOLUTION Identify a niche strategy that1. Does not rely on competing for distressedproperty in a saturated market.2. Does not rely on artificially depressed pricing and is therefore viable over the long term. 3. Does rely on an experienced team withsophisticated skill sets and is therefore harder tocompete with. </li><li> 7. ABOUT US CURRENT HOUSING MARKET OUR MODEL Put simply1. We buy small houses on big lots in goodneighborhoods.2. We expand them to slightly bigger houses onbig lots and create additional value.3. We then sell the house for a profit. </li><li> 8. Small House means a house at least 40% smallerthan the median house in the area (e.g., 1000 sq. in an area where the median home is 1800). 600060006000 sq. ft. sq. ft. sq. ft. 180018001000 sq. ft. sq. ft. sq. ft.Peachtree Lane </li><li> 9. Big Lot means a lot where the house sits on no morethan 16% of the lot (e.g., 1000 sq. ft. house on a 6000sq. ft. lot or bigger)6000sq. ft.1000sq. ft. Peachtree Lane </li><li> 10. Slightly bigger house means increasing the house tothe size of the median house in the area. We dontexceed the median house size to ensure that it is notoverbuilt for the neighborhood. In the examplebelow, it would mean adding 800 sq. ft. 600060006000 sq. ft. sq. ft. sq. ft. 180018001800 sq. ft. sq. ft. sq. ft.Peachtree Lane </li><li> 11. Our profit results from the difference between (1) Cost to expand AND (2) New value of the homeCost to Expand Additional 800 sq. ft. @ $100 per sq. ft. equals $80,000 of construction costsNew value of the home is determined by the price per square foot in the neighborhood. Add 800 sq. ft. @$300 per square foot and the home value increases $240,000. </li><li> 12. PROFIT$240,000 of additional valueMINUS$80,000 of construction costs </li><li> 13. Why? Foreign investors are buying aggressively in this area making it easier sell quickly once renovation is complete. </li><li> 14. Our proprietary formula allows us to determine theright projects to pursue in the right areas.Price Per Square Foot CITY801 - 1000 1001 - 1200 1201 - 1400 1401 - 1600 1601 - 1800 1801 - 2000Alta Dena $301.00 $260.00 $275.00 $253.00 $282.00 $292.00Arcadia $416.00 $372.00 $382.00 $375.00 $415.00 $409.00Azusa $203.00 $178.00 $205.00 $184.00 $178.00 $171.00Baldwin Park$208.00 $152.00 $165.00 $164.00 $170.00 $173.00Claremont $317.00 $263.00 $240.00 $225.00 $239.00 $238.00Covina$218.00 $172.00 $168.00 $143.00 $161.00 $195.00Duarte$276.00 $245.00 $254.00 $231.00 $215.00 $234.00Glendora$303.00 $285.00 $267.00 $257.00 $251.00 $263.00Monrovia$372.00 $348.00 $340.00 $314.00 $303.00 $303.00Pasadena$382.00 $355.00 $364.00 $393.00 $409.00 $362.00San Gabriel $404.00 $391.00 $361.00 $371.00 $354.00 $345.00Sierra Madre$494.00 $464.00 $400.00 $400.00 $396.00 $375.00South Pasadena$461.00 $527.00 $567.00 $501.00 $506.00 $484.00West Covina $283.00 $266.00 $226.00 $211.00 $204.00 $201.00Whittier$261.00 $205.00 $200.00 $188.00 $207.00 $213.00 </li><li> 15. ABOUT USCURRENT HOUSING MARKET OUR MODEL DESIGN &amp; RENOVATION PROCESS We have three goals: 1. Maintain architectural integrity 2. Create open, contemporary living areas3. Create overall appeal with attractive finishes and landscaping </li><li> 16. Before After </li><li> 17. Before After </li><li> 18. Before After </li><li> 19. Before After Expansion </li><li> 20. (A) Covered Porch A(B) Family Room(C) MasterBBedroomC </li><li> 21. DESIGN &amp; RENOVATION PROCESSIn areas that demand higher end finishes our team has the experience to deliverClean lines Minimalist designand Urban elements That will increase saleability </li><li> 22. ABOUT US WHY MANUFACTURED HOMES? OUR MODEL NEW HOMES PROGRAM PROFIT STRUCTURESOur deals are structured as joint ventureswith one of three profit structures: Security Maximizer Security Optimizer Profit MaximizerWe distribute profit at the end of each deal. </li><li> 23. SECURITY MAXIMIZER 1 Year Term 10% Preferred Return15% Upside Return$100,000 - $249,000 Minimum Requirement </li><li> 24. SECURITY OPTIMIZER 1 Year Term 12% Preferred Return20% Upside Return$250,000 - $499,000 Minimum Requirement </li><li> 25. PROFIT MAXIMIZER No Minimum Term50% Profit Split with Managing Partner$500,000 Minimum Requirement </li><li> 26. Research and3-6 AcquisitionWeeks Design and6-12 Renovation WeeksMarketing and 3-6Sale WeeksTimeTotal Time Frame3 to 5 Months**Depending on number of homes </li><li> 27. CustomizedSell at asearch strategy competitiveto target specific price point tohomes. Research Sell move quickly.dPay all cashto achieve Contemporaryfavorable terms. AcquireDesign &amp;designs that preserveRenovatearchitecturalof the home. </li><li> 28. Legal DisclaimerThis presentation contains forward looking statements and other expressions which are predictions of future events and trends. Forward-looking statements involve known and unknown risks, uncertainties and other factors, whichmay cause the actual results to differ from the anticipated future results expressed or implied by such forward- looking statements. Expected returns are not a guarantee of future returns and prospective investors must be cognizant of this fact in making their investment decision. Investors are advised to consult their own financialadvisors, lawyers or tax advisors as appropriate prior to making a decision.</li></ol>