© 2009 SmartZip Confidential & Proprietary

SmartZip ScoreSmartZip ScoreTMTM::The First Investment Ratings for Real The First Investment Ratings for Real

EstateEstate

June 2009

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SmartZip ScoreSmartZip Score™™: Overview: Overview

• The first and only quantitative investment rating for residential real estate

• A risk-adjusted assessment of a property’s future investment potential

• Uses proven stock and bond rating analytics

• Built on the most comprehensive base of real estate investment attributes ever assembled

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SmartZip ScoreSmartZip Score™™: Value: Value

Know if a property is worth buyingTM

Communities

Compare

Confirm

Real estate

investors

Homebuyers

Properties

Rate

Buy Your Next Home with Confidence & Peace of MindBuy Your Next Home with Confidence & Peace of Mind

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What Does a SmartZip ScoreWhat Does a SmartZip Score™™ Mean? Mean?

• Risk-adjusted return over a 10-year holding period

• Relative scale of 1:100

• 80+ equates to a 5-star (*****) rating

• Growth and Income versions

• Over 12 million properties rated

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Growth & Income ScoresGrowth & Income Scores

Every property is rated two ways based on different investment strategies:– Growth Score

• For investors seeking above-average price appreciation, at higher risk of price volatility

– Income Score• For investors looking for steady

monthly cash flow with low risk

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What’s Behind a SmartZip ScoreWhat’s Behind a SmartZip Score™™??

Proven stock & bond rating analytics• Calculated key attributes (appreciation,

fair market value, rent, vacancy, etc.)• Discounted cash flow (10 year)• Risk-adjusted return

Most comprehensive base of attributes ever

• Over 1000 itemized attributes• Lifestyle, government, demographic,

housing, rental, property• Assembled, scrubbed, refined,

maintained

Rigorous – Objective – National in scopeRigorous – Objective – National in scope

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How SmartZip ScoreHow SmartZip Score™™ Creates Value? Creates Value?

For Investors• Finds best places to invest• Identifies properties with the most value• Establishes the right price range to pay• Computes rent income to expect• Projects long-term cash flow and appreciation• Connects with a local agent who knows investing• Helps easily manage properties they buy• Assesses how to maximize after-tax returns

For sellers or listing agents • Calculates best price for rapid sale• Markets properties to a national buyer pool• Differentiates the value of properties• Instills confidence in the value of a transaction

For lenders• Establishes collateral value of a property (current and future)• Assesses size of potential loss in foreclosure• Simplifies decision to foreclose or modify a loan

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Get the SmartZip ScoreGet the SmartZip Score™™ Rating on Rating on ANYANY PropertyProperty

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Key Attributes behind SmartZip ScoreKey Attributes behind SmartZip Score™™

© 2009 SmartZip Confidential & Proprietary

www.smartzip.com