“Building Wealth Together”Performance Realty Management, LLC

“Building Wealth Together”Performance Realty Management, LLC

34225 N. 27th Dr., Bldg 5, Suite 238Phoenix, AZ 85085

623.551.5808Fax: 623.551.5830

www.prmcompany.com

The mission for Performance Realty Management, LLC is to provide

1. Capital preservation through lower risk investments in real, tangible properties acquired well below fair market value,

2. Passive income through the profitable sale or rental of portfolio properties, and;

3. Maximization of value through profit growth, reinvestment and appreciation.

PRM, LLC focuses on office, industrial, commercial, residential and retail projects in the southwest of the United States. Our game plan calls for “opportunity” property purchases in the $2 to $50 million range where there is abundant deal flow and where we can operate under the radar of the big publicly traded REITs.

Many lower-middle market deals are created by bank foreclosures, mismanagement, regional/industry downturns or as a result of general market conditions. Properties purchased at a significant discount-to-replacement value are then refurbished or redesigned to accommodate the demands of the current marketplace.

The Company’s real estate land development includes:

• Conducting market research and evaluating local economic conditions;

• Identifying and evaluating potential real estate development opportunities:

• Acquiring land and other real projects for development;

• Creating master and subdivision development plans;

• Facilitating the development of engineering and construction documents;

• Procuring land use entitlements and building;

• Installing on and offsite infrastructure as needed;

• Identifying and obtaining equity investors and joint venture partners;

• Identifying and obtaining debt financing as needed; and marketing and

selling finished projects to end users.

Company Overview

Mission

Who We AreWho We Are

At PRM, we empower our clients and partners with a material competitive edge in acquiring distressed assets and position them to pick off some of the best assets on a negotiated basis by becoming the “buyer of choice” among lenders holding such assets. We accomplish this by combining affordable equity with an interdisciplinary problem-solving approach towards the unique challenges facing distressed sellers.

Today, many banks and public real estate investment companies hold onto their troubled real estate assets to postpone the recognition of losses or in the hopes that eventually rising values will mitigate their losses. Hence, the volume of commercial real estate transactions remains far below normal levels. Contrary to original market expectations, only a relative trickle of distressed assets has been offered for sale – mostly the market dregs – while investors remain on the sidelines waiting for a flood of assets that may never come.

This stalemate is indicative of a gap between the “bid and ask.” Lenders’ balance sheets are swollen with REO and non-performing loans because they believe the intrinsic value of their real estate is greater than market prices. Investors, after raising billions of dollars in equity predicated on achieving returns of 20-25% or more have invested only a fraction of their committed capital. Transaction levels will not increase until sellers lower their prices and/or buyers lower their yield requirements.

This market is rife with sellers who have mispriced their assets and buyers who have mispriced their equity. Collectively, they have not closed the bid-ask gap.When targeting a specific acquisition or restructuring assignment for a client, PRM takes an interdisciplinary approach to construct an enhanced bid. PRM has developed substantial expertise in structuring complex transactions utilizing our knowledge of tax, accounting, and bankruptcy. Where appropriate, we augment our team with professionals from “Big Four” accounting firms with expertise in bank regulatory accounting, GAAP and IFRS accounting and tax working in concert with law firms possessing deep experience in bank, tax, real estate, REIT, securities and bankruptcy law.

We have designed proprietary structures to bridge the bid-ask gap and exploit the recent adjustments in mark to market accounting rules as well as arcane bank regulatory accounting to “unlock” these assets from lender balance sheets and allow our clients to acquire the economics of distressed real estate while mitigating write-downs to the financial institutions.

PRM combines these proprietary techniques with new equity to complete the transactions.

The Company believes in and conducts its business in accordance with the following guiding principles

which it values and holds in high regard.

EthicsEthics means “doing the right thing.” It means conducting business in accordance with the highest standards of business conduct such as: being open, truthful and honest; being conservative and realistic in revenue projections; being accurate in cost estimates; dealing fairly with investors, builders, suppliers, lenders and government entities; acting in good faith; and remaining true to The Company’s core values.

CollaborationCollaboration refers to creating and maintaining strategic alliances with investors, builders, suppliers, lenders, and community stakeholders and government agencies. It means working together as a team to provide win-win scenarios and solutions for everyone. It means cultivating and encouraging joint ventures and partnerships rather than acting unilaterally. It reflects the fact that a person or an organization is stronger when affiliated with others who share a common vision, strategy and core values.

AccountabilityAccountability means open communication with respect to all aspects of a business transaction. It means explaining and acknowledging results, performance, failures, and successes in an open and forthright manner without blame and ridicule. It includes acknowledging one’s own contribution and ownership of a problem or issue, admitting mistakes and errors, and striving to make things right when harm or loss occurs.

Profitability

Profitability means making money not only for The Company’s ownership group but also for The Company’s joint venture equity investors and partners. Profitability means being prosperous as a result of sound business decisions, discipline, execution and effective resource management.

CORE ValuesThe Company believes in and conducts its business in accordance with the following guiding principles

which it values and holds in high regard.

EthicsEthics means “doing the right thing.” It means conducting business in accordance with the highest standards of business conduct such as: being open, truthful and honest; being conservative and realistic in revenue projections; being accurate in cost estimates; dealing fairly with investors, builders, suppliers, lenders and government entities; acting in good faith; and remaining true to The Company’s core values.

CollaborationCollaboration refers to creating and maintaining strategic alliances with investors, builders, suppliers, lenders, and community stakeholders and government agencies. It means working together as a team to provide win-win scenarios and solutions for everyone. It means cultivating and encouraging joint ventures and partnerships rather than acting unilaterally. It reflects the fact that a person or an organization is stronger when affiliated with others who share a common vision, strategy and core values.

AccountabilityAccountability means open communication with respect to all aspects of a business transaction. It means explaining and acknowledging results, performance, failures, and successes in an open and forthright manner without blame and ridicule. It includes acknowledging one’s own contribution and ownership of a problem or issue, admitting mistakes and errors, and striving to make things right when harm or loss occurs.

Profitability

Profitability means making money not only for The Company’s ownership group but also for The Company’s joint venture equity investors and partners. Profitability means being prosperous as a result of sound business decisions, discipline, execution and effective resource management.

CORE ValuesCORE Values

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Performance Realty Management, LLC is an investment partnership managed by an experienced team of professionals who are focused on building liquidity and financial strength in the real estate market. The Management team has many years of experience buying and selling real estate, renovating properties and managing rental properties. The team is a full service company devoted to the knowledge of real estate and delivering unique, well-researched opportunities to investors. PRM was created by top local professionals to profit by the acquisition, rental and disposition of single-family homes in Maricopa County, Arizona (the greater Phoenix metropolitan area).

Sean Zar – Chief Executive Officer Mr. Zar brings more than twenty years experience in operations, evaluation, investment and management of real estate assets and is responsible for new asset origination, evaluation, analysis and due diligence, as well as overall executive direction. Mr. Zar brings investment experience to the company as well as experience having formed successful business partnerships and has acquired a talented team of experts necessary to support ongoing and future projects and opportunities. He gained insight into capital markets as the founder and president of CBA Capital, Inc., a Newport Beach, CA based investment bank and venture capital company. He also managed a venture capital pool for emerging companies to obtain financing, where he was responsible for equity and debt investments in a wide range of companies. He also was the founder and CEO of American Income Securities, an investment company. Mr. Zar was responsible for managing over $50 Million in client and company assets. He sold his ownership of the member firm in 1999.

Mr. Zar has been an active real estate investor in Arizona, as well as Colorado and Southern California. Mr. Zar is focused on maximizing the tremendous opportunity in the Phoenix, Arizona real estate market. With the decades of experience behind him, along with a severely depressed real estate market, the opportunities are abundant.

Jack W. Combs – Managing Partner Mr. Combs graduated from California State University Fullerton in 1971. He is also a graduate in the Masters program at University of Southern California (USC) and has taught numerous classes in business and finance. After college he joined Shell Oil Company as a marketing manager. After two years, his interest in the financial services industry led him to a career in the investment banking industry with E.F. Hutton & Co. Thirteen years later, he founded Monetary Trading International in Newport Beach, California. As President and CEO working with corporate clients, the company specialized in the foreign currency markets. In 1992 he moved to Scottsdale, Arizona and became involved in the real estate opportunities.

Mr. Combs has taught numerous investment and finance classes, including some at Golden West Community College in Huntington Beach, CA and Scottsdale Community College in Scottsdale, AZ. Prior to moving to Arizona, he was actively involved with the Make-A-Wish Foundation Orange County chapter. Mr. Combs has been involved for the past six years with the Fountain Hills Adopt A Dog program and the Arizona Humane Society. He is also involved with the Arizona Parkinson’s Foundation. As Mr. Combs says, “All you have is what you give.”

Shawn O. McKee – Managing Director After attending Iowa State University, Mr. McKee started his professional career in 1996, where he managed a national advertising and signage campaign for a major food chain. He coordinated the openings on over 400 franchise locations nationwide. After doing this for many years, he became passionate for the real estate aspect of the business. From 2003 to 2008, Mr. McKee was Vice President of Housing Partners Inc. (HPI) and related LLC’s. He assisted in directing company affairs and strategy. He managed day to day operations and coordinated working capital, for the acquisition, of dozens of residential and commercial properties. Mr. McKee has over seventeen years of experience in business management, marketing and sales. In 2009 and 2010, Mr. McKee participated in the successful identification, acquisition, rehabilitation, and disposition of over 80 single family homes in Maricopa County, Arizona. Mr. McKee is an opportunist and utilizes an investment strategy of diversification, through traditional and alternative investments.

The Management

Real Estate ExchangesAn investment in real estate can provide unique investment portfolio benefits. Property owners may enjoy a steady stream of income, capital appreciation and property-related tax advantages. Yet some property owners may no longer be interested in actively owning and managing property, but still want an allocation to real estate.

Under the Internal Revenue Code (IRC or the Tax Code) Sections 1031 and 721, an owner of appreciated real estate can exchange investment property for an alternative real estate investment and defer the capital gain taxes normally associated with divestiture. These tax-deferred exchanges allow investors to maintain 100% of their pre-tax exposure to the real estate sector, rather than paying a portion of the proceeds from a sale to the government in taxes.

In addition to the deferral of capital gain taxes, real estate exchanges allow investors to:

• Capitalize on the value of appreciated assets • Continue to build wealth through real estate investments • Diversify, consolidate or upgrade real estate holdings • Potentially reduce ongoing management burdens • Accomplish retirement and estate planning objectives

REAL ESTATE EXCHANGES1031 Exchanges721 ExchangesTenancy-In-Common Investments

IRA Investments

There are many real estate investment opportunities to consider when using Individual Retirement Accounts. Contact us for current availability of projects.

Consult your own tax and financial advisors before investing retirement funds.

Partners

YOW ARCHITECTS PCarchitecture | planning

PIPE LINE CONTRACTORS

This material includes “forward-looking statements” from the Company that may or may not materialize and recipients are cautioned not to place undue reliance upon them. It is important to note that actual results could differ materially from those in such “forward-looking statements” and “forward-looking statements” are inherently subject to risks and uncertainties.

This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “memorandum”) which accompanies this material. This material cannot and does not replace the Memorandum and is qualified in its entirety by the Memorandum. All potential investors must read the Memorandum and no person may invest with acknowledging receipt and complete review of the Memorandum.

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Real Estate Exchanges

IRA Investments

Partners

Bruce L Eskew, CPA PC

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Fidelity National Title®

Company