10 DEAL BUSINESS PLAN

•CORNERSTONE CAPITAL GROUP, LLC•MICHAEL NORRIS•423 400-8787

•michael37421@gmail.com

10 Deals

10 Deals• It’s A Numbers Game•Law of Averages•Some Modifications•Some Deed In Lieu•Some Foreclosures

10 Deals•$50,000 Assets•$25,000 Purchase Price (Includes Legal/Taxes)•9 Month to Foreclose Avg•$500 Modified Payment•4 Months Skin•No HHF•3 Mods/3 DILs/4 FC’s

3 Modifications• 3 X $25,000 = $75,000 Investment on $150,000

Assets• Modified in 3 Months• 9 Months of Payments ($4,500) + 4 Months SKIN

($2,000)• Cash Flow X 3 Deals = $19,500• Annualized ROI = 26% ROI• If You Get FHA 10-23 at 97.5% = $146,250• + Cash Flow - $75,000 Investment = $90,750 Profits•121% Annualized ROI

3 Deed In Lieu’s • 3 X $25,000 = $75,000 Investment on $150,000 Assets• Deed in Lieu in 3 Months• Sell REO at 90% of Value = $45,000 (3 Months)• NET 90% After Closing Costs = $40,500 • $40,500 - $25,000 Investment = $15,500• $15,500 x 3 = $46,500 •$46,500/$75,000 Investment = 62% ROI•124% ROI If You Did This Twice A Year

4 Foreclosures• 4 X $25,000 = $100,000 Investment on $200,000 Assets• 9 Months To Foreclose• 3 Months To Sell• Sell REO at 90% of Value = $45,000 (3 Months)•NET 90% After Closing Costs = $40,500 • $40,500 - $25,000 Investment = $15,500• $15,500 x 4 = $62,000 Profits•$62,000/$100,000 = 62% ROI

Lets Do A Deal Recap•10 Deals X $25k = $250,000 Funding/Investment •$500,000 Portfolio Value•3 Modifications/FHA 10-23 Refi = 26%/121% Front/Back End Returns•3/6 DIL’s/REO Sales = 62%/124% ROI •4 FC’s/REO Sales = 62% ROI

Low End•3 Modifications = $19,500 Profits•3 Deed In Lieu = $46,500 Profits•4 Foreclosures = $62,000 Profits•10 Deals Equals to $128,000 Net Profits•$250,000 Investment Amount

•51.2 % Annualized ROI

50/50 JV Split Low End•$128,000 Net Profits•$64,000 To You•$64,000 To Funding Partner•25.6% ROI To JV Partner •Still Have 3 Performing Modifications at 12% ROI

What If We Used an IRA @ 12%?• $250,000 x 12% = 30,000 = $2,500 Per Month• $280,000 Total Owed• 3 DIL’s Sold = $75,000 Investment +$46,500 Profits = $121,500• 4 FC’s = $100,000 Investment +$62,000 = $162,000• Sell the DIL’s + FC’s = $283,500 • Pay Your Investor Off + $3,500 In Profits + $19,500 Mod CF + Potentially $146,250 In Loan Mod FHA 10-23 Refinance•$169,250 In Profits

•CORNERSTONE CAPITAL GROUP, LLC •MICHAEL NORRIS•423 400-8787

•michael37421@gmail.com