By: Vincent Polisi & Wendy Polisi, The Wealth Consortium, LLC. ©2007-2008, All Rights Reserved How to Achieve a 200%+ Rate of Return in the Current Real Estate Market AKA The Immediate Future of Real Estate Investment, Sales and Finance

How to Achieve a 200%+ Rate of Return in the Current Real Estate Market

AKA

The Immediate Future of Real Estate Investment, Sales and Finance

Premise How to earn short term gains of over 200% in the current real estate climate

How to earn short term gains of over 200%

in the current real estate climate

Situational Analysis Within catastrophe lies opportunity for those willing to take the necessary investigatory and educational steps to discover it. The recent real estate bubble and mortgage market implosions have created unparalleled opportunity for savvy investors. There is an ever increasing number of foreclosures happening on a monthly basis. The recent mortgage market implosion has further exacerbated the issues facing the housing market by eliminating lenders and products that represented more than 74% of transactions annually. This isn’t going to change anytime soon. This has the net effect of increasing inventory in the market, increasing marketing times and causing massive contraction in the pool of qualified buyers. The fact remains that people still need a place to live and will need alternatives to traditional bank or mortgage financing.

Within catastrophe lies opportunity for those willing to take the necessary investigatory and educational steps to discover it.

The recent real estate bubble and mortgage market implosions have created unparalleled opportunity for savvy investors.

There is an ever increasing number of foreclosures happening on a monthly basis. The recent mortgage market implosion has further exacerbated the issues facing the housing market by eliminating lenders and products that represented more than 74% of transactions annually. This isn’t going to change anytime soon.

This has the net effect of increasing inventory in the market, increasing marketing times and causing massive contraction in the pool of qualified buyers. The fact remains that people still need a place to live and will need alternatives to traditional bank or mortgage financing.

Enter the next wave in real estate investment, sales and finance…….. Surrogate Financing Discounted Notes Straight Equity Purchases “ Subject To” Acquisitions Investor Joint Ventures & Wholesale Tranche Liquidations

Surrogate Financing

Discounted Notes

Straight Equity Purchases

“ Subject To” Acquisitions

Investor Joint Ventures

&

Wholesale Tranche Liquidations

The 6 Investment Strategies Defined Surrogate Financing Program Highlights- This is truly the next big wave in real estate investment, sales and finance. As the name implies, the actual buyer engages a credit qualified surrogate buyer (Investor) to purchase a property and then engages into a lease option contract for a 24 month period of time to allow adequate time for the lease option Tenant to qualify for conventional mortgage financing and take the Investor out. Deal size can range from an individual property purchase starting at $150,000 to a multi-million dollar bulk portfolio purchase involving dozens of properties. Exit Strategy- 12-24 month mark via Tenant takeout Anticipated Return- Conservative returns exceed 100% and the average deal approaches or exceeds 200%. Risk Mitigation- If Tenant is unable or refuses to exercise Option, the property re- enters our virtual portfolio and is then re-leased to another Lease Option Tenant

Surrogate Financing

Program Highlights- This is truly the next big wave in real estate investment, sales and finance. As the name implies, the actual buyer engages a credit qualified surrogate buyer (Investor) to purchase a property and then engages into a lease option contract for a 24 month period of time to allow adequate time for the lease option Tenant to qualify for conventional mortgage financing and take the Investor out. Deal size can range from an individual property purchase starting at $150,000 to a multi-million dollar bulk portfolio purchase involving dozens of properties.

Exit Strategy- 12-24 month mark via Tenant takeout

Anticipated Return- Conservative returns exceed 100% and the average deal approaches or exceeds 200%.

Risk Mitigation- If Tenant is unable or refuses to exercise Option, the property re- enters our virtual portfolio and is then re-leased to another Lease Option Tenant

The 6 Investment Strategies Defined (cont) Discounted Notes Program Highlights- The current mortgage meltdown has flooded the market with opportunities to buy discounted notes. This strategy purchases mortgage notes secured by real estate at a substantial discount, with the sweet spot being no more than 60¢ on the dollar. Depending on the deal structure, this can allow for monthly debt service payments payable to the Investor. Exit Strategy- 0-36 month mark via the underlying debtor refinancing or selling the property, or in a distressed situation, merely signing over the warranty deed (this allows for a quick flip or placement into our Surrogate Financing Lease Option Program) Anticipated Return- Returns will vary depending on Exit Strategy implemented with the target return being 167%. Risk Mitigation- Notes are securitized by an underlying asset, real estate. Risk is mitigated by buying the notes at a deep enough discount to allow for significant returns in the event of price deflation or necessity and expense of foreclosure and re-marketing

Discounted Notes

Program Highlights- The current mortgage meltdown has flooded the market with opportunities to buy discounted notes. This strategy purchases mortgage notes secured by real estate at a substantial discount, with the sweet spot being no more than 60¢ on the dollar. Depending on the deal structure, this can allow for monthly debt service payments payable to the Investor.

Exit Strategy- 0-36 month mark via the underlying debtor refinancing or selling the property, or in a distressed situation, merely signing over the warranty deed (this allows for a quick flip or placement into our Surrogate Financing Lease Option Program)

Anticipated Return- Returns will vary depending on Exit Strategy implemented with the target return being 167%.

Risk Mitigation- Notes are securitized by an underlying asset, real estate. Risk is mitigated by buying the notes at a deep enough discount to allow for significant returns in the event of price deflation or necessity and expense of foreclosure and re-marketing

The 6 Investment Strategies Defined (cont) Straight Equity Purchases Program Highlights- This strategy involves strictly purchasing a property at a deep discount and then flipping the property to either another Investor or buyer. This strategy does not provide cash flow and the Investor must have the liquid financial holding power to absorb debt service while re-marketing the property. Typical discounts allow for purchase between .60¢ and .80¢ on the dollar. Deal sizes range from individual purchases starting in the $150,000 range to multi-million dollar portfolio buys. Exit Strategy- Immediate Anticipated Return- Returns will vary depending on whether it is a cash or leveraged purchase with the target being 167%. Risk Mitigation- Risk is mitigated by buying the property at a deep enough discount to allow for anticipated return and offset carrying cost while marketing

Straight Equity Purchases

Program Highlights- This strategy involves strictly purchasing a property at a deep discount and then flipping the property to either another Investor or buyer. This strategy does not provide cash flow and the Investor must have the liquid financial holding power to absorb debt service while re-marketing the property. Typical discounts allow for purchase between .60¢ and .80¢ on the dollar. Deal sizes range from individual purchases starting in the $150,000 range to multi-million dollar portfolio buys.

Exit Strategy- Immediate

Anticipated Return- Returns will vary depending on whether it is a cash or leveraged purchase with the target being 167%.

Risk Mitigation- Risk is mitigated by buying the property at a deep enough discount to allow for anticipated return and offset carrying cost while marketing

The 6 Investment Strategies Defined (cont) “ Subject To” Acquisitions Program Highlights- With the right strategy, these deals can yield returns literally in the 1000s of percent annually, far outpacing the returns of any other investment. This is due to an exceptionally high and fast initial return and then a reinvestment into other deals with the proceeds in the same calendar year. Here’s how it works, homes are located that are weeks to days away from the foreclosure sale that have significant equity positions due to appreciation and/or principal reduction. A purchase of the property is negotiated “subject to” the existing mortgage that is in place, plus some additional cash for moving expense and incidentals. The property is acquired for the cost of bringing the existing mortgage current (usually 4-6 months of mortgage payments), a moving allowance, carrying cost through resale, rehab (if necessary), insurance, title insurance and marketing costs. These expenses are nominal compared to the return. Due to the significant equity position, these properties can then be flipped quickly at a slight discount to retail price (yielding the highest short term return) or placed into a Surrogate Financing Lease Option program for a 24 month hold to sell at full retail and generate a greater overall return from the individual deal. These are all cash deals requiring no credit or financing and do not encumber an individual Investor. The buyer will always be either an LLC or S corp.

“ Subject To” Acquisitions

Program Highlights- With the right strategy, these deals can yield returns literally in the 1000s of percent annually, far outpacing the returns of any other investment. This is due to an exceptionally high and fast initial return and then a reinvestment into other deals with the proceeds in the same calendar year. Here’s how it works, homes are located that are weeks to days away from the foreclosure sale that have significant equity positions due to appreciation and/or principal reduction. A purchase of the property is negotiated “subject to” the existing mortgage that is in place, plus some additional cash for moving expense and incidentals. The property is acquired for the cost of bringing the existing mortgage current (usually 4-6 months of mortgage payments), a moving allowance, carrying cost through resale, rehab (if necessary), insurance, title insurance and marketing costs. These expenses are nominal compared to the return. Due to the significant equity position, these properties can then be flipped quickly at a slight discount to retail price (yielding the highest short term return) or placed into a Surrogate Financing Lease Option program for a 24 month hold to sell at full retail and generate a greater overall return from the individual deal. These are all cash deals requiring no credit or financing and do not encumber an individual Investor. The buyer will always be either an LLC or S corp.

The 6 Investment Strategies Defined (cont) “ Subject To” Acquisitions (Cont) Exit Strategy- Immediate to 24 months Anticipated Return- Returns will vary on every deal but the target well exceeds 200% on an individual deal. To maximize returns, the principal and profit need to be realized and then reinvested into subsequent deals for a continual turn on the money that will generate annualized returns literally in the 1000s of percent. Risk Mitigation- Risk is mitigated by buying the property at a deep enough discount to allow for anticipated return and offset carrying cost while marketing. Due diligence is performed prior to acquisition to ensure equity position and marketable title. Title insurance is purchased. The one inherent risk is that recording of the warranty deed has the potential to trigger the due on sale clause in most mortgage notes. Were this to happen prior to resale, it becomes similar to a margin call in that the Investor would need to have the mortgage or cash resources to payoff the note. The due on sale clause “risk” is mitigated by bringing the mortgage current and maintaining timely payments. Banks typically do not enforce the due on sale clause when payments are current and being made timely. In the current market climate of excessive foreclosures, they have enough on their hands dealing with foreclosing on properties whose payments aren’t being made. The due on sale clause isn’t considered to be a genuine risk, but it most be noted.

“ Subject To” Acquisitions (Cont)

Exit Strategy- Immediate to 24 months

Anticipated Return- Returns will vary on every deal but the target well exceeds 200% on an individual deal. To maximize returns, the principal and profit need to be realized and then reinvested into subsequent deals for a continual turn on the money that will generate annualized returns literally in the 1000s of percent.

Risk Mitigation- Risk is mitigated by buying the property at a deep enough discount to allow for anticipated return and offset carrying cost while marketing. Due diligence is performed prior to acquisition to ensure equity position and marketable title. Title insurance is purchased. The one inherent risk is that recording of the warranty deed has the potential to trigger the due on sale clause in most mortgage notes. Were this to happen prior to resale, it becomes similar to a margin call in that the Investor would need to have the mortgage or cash resources to payoff the note. The due on sale clause “risk” is mitigated by bringing the mortgage current and maintaining timely payments. Banks typically do not enforce the due on sale clause when payments are current and being made timely. In the current market climate of excessive foreclosures, they have enough on their hands dealing with foreclosing on properties whose payments aren’t being made. The due on sale clause isn’t considered to be a genuine risk, but it most be noted.

The 6 Investment Strategies Defined (cont) Investor Joint Ventures Program Highlights- An exceptionally profitable exceptionally fast and incredibly secure investment is an Investor Joint Venture. Properly structured these are 48 hour investments that are totally insured against loss. If the invested capital and return are allowed to turn in perpetuity, these deals can yield insured returns in the 1000s of percent. With the onslaught of foreclosures, short sales, REOs and distressed sales currently in the marketplace and the current liquidity crunch, there is tremendous opportunity to joint venture with Investors who have deals worked out but insufficient cash to close them. Anticipated Return- Returns range from a minimum of 1% to 1000%+ depending on the deal and the length of time the invested capital is allowed to turn Exit Strategy- 48 hours maximum, never more Risk Mitigation- Risk is totally mitigated because the invested capital is wired to the trust account of a licensed, bonded and insured real estate attorney or title company where it remains until it is wired back to the Investor’s account. It is protected by ICL, E&O and D&O insurance.

Investor Joint Ventures

Program Highlights- An exceptionally profitable exceptionally fast and incredibly secure investment is an Investor Joint Venture. Properly structured these are 48 hour investments that are totally insured against loss. If the invested capital and return are allowed to turn in perpetuity, these deals can yield insured returns in the 1000s of percent. With the onslaught of foreclosures, short sales, REOs and distressed sales currently in the marketplace and the current liquidity crunch, there is tremendous opportunity to joint venture with Investors who have deals worked out but insufficient cash to close them.

Anticipated Return- Returns range from a minimum of 1% to 1000%+ depending on the deal and the length of time the invested capital is allowed to turn

Exit Strategy- 48 hours maximum, never more

Risk Mitigation- Risk is totally mitigated because the invested capital is wired to the trust account of a licensed, bonded and insured real estate attorney or title company where it remains until it is wired back to the Investor’s account. It is protected by ICL, E&O and D&O insurance.

The 6 Investment Strategies Defined (cont) Wholesale Tranche Liquidations Program Highlights- Easily, the most profitable of deals when structured properly, this strategy involves the formation of a consortium or syndicate of Investors for a large wholesale tranche purchase. The larger the tranche buy, the deeper the discount. While these packages can be purchased starting as low as $10,000,000.00, the real discounts and opportunities lie in $120,000,000.00 tranches that allow for discounts at .30¢ to .40¢ on the dollar. Smaller tranche buys equate to discounts typically from .50¢ to .80¢ on the dollar. Exit Strategy: Immediate, 0-6 Months and up to 24 months. The liquidation of properties in the tranche occurs via various methods. This is because of the various conditions of the properties in the tranche. Those in excellent condition will be immediately sold to either end users or other Investors (utilizing our Surrogate Financing Lease Option model.) These properties will move the fastest. Those properties requiring moderate rehab will be sold to Investors who specialize in the rehab and resale of properties (called Rehabbers). These properties can move quickly and can take some time to market. Those properties requiring extensive rehab will either be sold at deep discount to Rehabbers or rehabbed by the consortium and then sold or placed in our Surrogate Financing Lease Option program for 24 month takeout by Tenant.

Wholesale Tranche Liquidations

Program Highlights- Easily, the most profitable of deals when structured properly, this strategy involves the formation of a consortium or syndicate of Investors for a large wholesale tranche purchase. The larger the tranche buy, the deeper the discount. While these packages can be purchased starting as low as $10,000,000.00, the real discounts and opportunities lie in $120,000,000.00 tranches that allow for discounts at .30¢ to .40¢ on the dollar. Smaller tranche buys equate to discounts typically from .50¢ to .80¢ on the dollar.

Exit Strategy: Immediate, 0-6 Months and up to 24 months. The liquidation of properties in the tranche occurs via various methods. This is because of the various conditions of the properties in the tranche. Those in excellent condition will be immediately sold to either end users or other Investors (utilizing our Surrogate Financing Lease Option model.) These properties will move the fastest. Those properties requiring moderate rehab will be sold to Investors who specialize in the rehab and resale of properties (called Rehabbers). These properties can move quickly and can take some time to market. Those properties requiring extensive rehab will either be sold at deep discount to Rehabbers or rehabbed by the consortium and then sold or placed in our Surrogate Financing Lease Option program for 24 month takeout by Tenant.

The 6 Investment Strategies Defined (cont) Wholesale Tranche Liquidations (cont) Anticipated Return- Returns will vary depending on whether it is a cash or leveraged purchase and the overall time and expense necessary to resell the individual properties in the tranche. Each property will carry its own individual return but the overall anticipated return exceeds 200% Risk Mitigation- Risk is mitigated by buying the tranche at a deep enough discount to allow for anticipated return and offset marketing and rehabilitation cost while marketing

Wholesale Tranche Liquidations (cont)

Anticipated Return- Returns will vary depending on whether it is a cash or leveraged purchase and the overall time and expense necessary to resell the individual properties in the tranche. Each property will carry its own individual return but the overall anticipated return exceeds 200%

Risk Mitigation- Risk is mitigated by buying the tranche at a deep enough discount to allow for anticipated return and offset marketing and rehabilitation cost while marketing

Surrogate Financing Lease Option Program An In Depth Look

Turn-Key & Hassle Free This program is designed to be turn-key and hassle free for Investors. An Investor will be buying an investment property with a Tenant (Future Homeowner) already in place and terms of the future sale already established (and therefore the rate of return already defined). The Investor will receive a rental amount sufficient to cover the debt service, property taxes, homeowner’s insurance, Homeowner’s Association Dues, maintenance, property management fees, etc., (similar to a Triple Net or NNN commercial lease) plus potential cash flow.

This program is designed to be turn-key and hassle free for Investors. An Investor will be buying an investment property with a Tenant (Future Homeowner) already in place and terms of the future sale already established (and therefore the rate of return already defined).

The Investor will receive a rental amount sufficient to cover the debt service, property taxes, homeowner’s insurance, Homeowner’s Association Dues, maintenance, property management fees, etc., (similar to a Triple Net or NNN commercial lease) plus potential cash flow.

Initial Lease Option Term The initial Lease Option will be for 24 months. This will typically allow the Future Homeowner the time necessary to repair credit or document income to qualify for a mortgage. It will also typically allow for additional appreciation and a greater return.

The initial Lease Option will be for 24 months.

This will typically allow the Future Homeowner the time necessary to repair credit or document income to qualify for a mortgage. It will also typically allow for additional appreciation and a greater return.

Why It Works The program is designed to introduce pre-screened lease purchase buyers (Future Homeowners) to credit qualified Investors. For the Investor, it is designed to be completely turn-key and hassle free. For the Future Homeowner it is designed to offer an alternative to renting, ability to repair credit, build equity and ability to qualify for a mortgage at a later date.

The program is designed to introduce pre-screened lease purchase buyers (Future Homeowners) to credit qualified Investors.

For the Investor, it is designed to be completely turn-key and hassle free.

For the Future Homeowner it is designed to offer an alternative to renting, ability to repair credit, build equity and ability to qualify for a mortgage at a later date.

How It Works Distressed sale or foreclosure properties with a 15-20% (or more) equity position will be identified and pre-screened. Upon determination that the property is habitable, we will determine the property’s fiscal feasibility by running the following calculations: Annual Cash on Cash Return Total Cash on Cash Return Internal Rate of Return (IRR) Monthly Cash Flow Net Operating Income (NOI) Capitalization Rate (CAP Rate) Monthly Debt Service Potential Tax Benefit via Depreciation

Distressed sale or foreclosure properties with a 15-20% (or more) equity position will be identified and pre-screened. Upon determination that the property is habitable, we will determine the property’s fiscal feasibility by running the following calculations:

Annual Cash on Cash Return

Total Cash on Cash Return

Internal Rate of Return (IRR)

Monthly Cash Flow

Net Operating Income (NOI)

Capitalization Rate (CAP Rate)

Monthly Debt Service

Potential Tax Benefit via Depreciation

Once a property is deemed fiscally viable it will be entered into the virtual portfolio of homes available to our Lease Purchase Tenants/Future Homeowners. These homes are then advertised via a myriad of Internet media for maximum penetration. We have negotiated deals with other Investors, Realtors and marketing companies to have our properties show on their websites as well. Once a property enters our virtual portfolio, it is available on dozens of websites and through extensive and proprietary search engine optimization (SEO) techniques, appear at the top of page 1 on Google. The Future Homeowners will be shown homes and upon determining a home that they would like to purchase, they will execute a lease option agreement subject to our predefined terms. The Investor will then execute a contract for purchase, wire funds to the closing attorney or secure mortgage financing and close on the subject property. Unless the Investor wants a “hands on” approach, our Property Management partners will manage the property.

Once a property is deemed fiscally viable it will be entered into the virtual portfolio of homes available to our Lease Purchase Tenants/Future Homeowners.

These homes are then advertised via a myriad of Internet media for maximum penetration. We have negotiated deals with other Investors, Realtors and marketing companies to have our properties show on their websites as well. Once a property enters our virtual portfolio, it is available on dozens of websites and through extensive and proprietary search engine optimization (SEO) techniques, appear at the top of page 1 on Google.

The Future Homeowners will be shown homes and upon determining a home that they would like to purchase, they will execute a lease option agreement subject to our predefined terms.

The Investor will then execute a contract for purchase, wire funds to the closing attorney or secure mortgage financing and close on the subject property.

Unless the Investor wants a “hands on” approach, our Property Management partners will manage the property.

To ensure that this is a hassle free experience and highly profitable, the following measures have been put in place: Future Homeowner’s receive monthly rent credits for rents paid by the 1 st to avoid “the check’s in the mail” and ensure timely debt service payments If the Investor elects a completely hands off approach, our Property Management partners will handle all aspects of property management including paying debt service, taxes, insurance, ensuring the property is being maintained properly, etc. All the Investor has to do is sit back and collect a check Our Future Homeowners will be required to take part in a credit repair program to ensure they have an ability to obtain financing at the 24 month mark. This is done to ensure that it is a viable deal for the Future Homeowner and to provide an exit strategy and profitable return for our Investors. Once we hit 500 reportable accounts (as required by the credit repositories Equifax, Trans Union and Experian to report), Future Homeowner Lease Payments will be reported to all three credit repositories to improve credit score and ability to obtain financing to takeout Investor

Future Homeowner’s receive monthly rent credits for rents paid by the 1 st to avoid “the check’s in the mail” and ensure timely debt service payments

If the Investor elects a completely hands off approach, our Property Management partners will handle all aspects of property management including paying debt service, taxes, insurance, ensuring the property is being maintained properly, etc. All the Investor has to do is sit back and collect a check

Our Future Homeowners will be required to take part in a credit repair program to ensure they have an ability to obtain financing at the 24 month mark. This is done to ensure that it is a viable deal for the Future Homeowner and to provide an exit strategy and profitable return for our Investors.

Once we hit 500 reportable accounts (as required by the credit repositories Equifax, Trans Union and Experian to report), Future Homeowner Lease Payments will be reported to all three credit repositories to improve credit score and ability to obtain financing to takeout Investor

2 Years worth of home warranty is purchased at closing to ensure compliance with state law requirements regarding landlord responsibility and defer expense away from the Investor’s return and the Future Homeowner’s cash reserves. In short, NO PHONE CALLS about required repairs will be made to our Investors. The exit strategy of 24 months has been set to help facilitate the takeout from the Investor due to current Fannie Mae (FNMA), Freddie Mac (FHLMC) and Federal Housing Authority (FHA) lending guidelines. Currently, these guidelines will allow someone who has been lease purchasing a property to acquire it utilizing refinance guidelines and therefore use appraised value instead of purchase price in determining the loan-to-value ratio (for qualified applicants). With standard 6% appreciation, this has the potential effect of reducing or eliminating the Future Homeowner’s necessity for a cash down payment and cash for closing costs and pre-paid items. Properties available in our virtual portfolio must meet certain equity criteria of at least 15% below true financeable appraised market value today to ensure ample return and hedge against any price deflation Additional Protective Measures

2 Years worth of home warranty is purchased at closing to ensure compliance with state law requirements regarding landlord responsibility and defer expense away from the Investor’s return and the Future Homeowner’s cash reserves. In short, NO PHONE CALLS about required repairs will be made to our Investors.

The exit strategy of 24 months has been set to help facilitate the takeout from the Investor due to current Fannie Mae (FNMA), Freddie Mac (FHLMC) and Federal Housing Authority (FHA) lending guidelines. Currently, these guidelines will allow someone who has been lease purchasing a property to acquire it utilizing refinance guidelines and therefore use appraised value instead of purchase price in determining the loan-to-value ratio (for qualified applicants). With standard 6% appreciation, this has the potential effect of reducing or eliminating the Future Homeowner’s necessity for a cash down payment and cash for closing costs and pre-paid items.

Properties available in our virtual portfolio must meet certain equity criteria of at least 15% below true financeable appraised market value today to ensure ample return and hedge against any price deflation

No Competition from Rental Market It is important to note that this program is NOT designed to compete with the current rental market. It can’t. Current rental rates average 50%-75% of actual debt service while our program is 100%+ of actual debt service. It is designed to be an alternative for buyers who want to own a home and because of the recent Mortgage Market Meltdown, now cannot qualify. Because their out of pocket and monthly cost of owning a home would have been higher than current rental rates, our Future Homeowners are already prepared to pay a premium. At present, not a day goes by where we don’t have multiple inquiries from people who wanting to buy a home who are currently unable to qualify for conventional mortgage financing.

It is important to note that this program is NOT designed to compete with the current rental market.

It can’t.

Current rental rates average 50%-75% of actual debt service while our program is 100%+ of actual debt service.

It is designed to be an alternative for buyers who want to own a home and because of the recent Mortgage Market Meltdown, now cannot qualify. Because their out of pocket and monthly cost of owning a home would have been higher than current rental rates, our Future Homeowners are already prepared to pay a premium.

At present, not a day goes by where we don’t have multiple inquiries from people who wanting to buy a home who are currently unable to qualify for conventional mortgage financing.

Benefits to Investor Limited capital requirements for significant return Investment secured by real property Potential for Monthly cash flow Turn-key and hassle free Every foreseeable risk has been mitigated

Limited capital requirements for significant return

Investment secured by real property

Potential for Monthly cash flow

Turn-key and hassle free

Every foreseeable risk has been mitigated

Benefits to Future Homeowner Ability to acquire a property that they can own No credit qualifying Credit Repair Upon reaching 500 accounts, we will be posting payments to their credit bureau to help improve credit (No other program does this) Ability to experience appreciation Ability for substantial rent credit to offset future cash needs to qualify to close Deal is structured to allow Future Homeowner to qualify under refinance terms based on appraised value making it easier to qualify and requiring less or no money down with a potential for cash out

Ability to acquire a property that they can own

No credit qualifying

Credit Repair

Upon reaching 500 accounts, we will be posting payments to their credit bureau to help improve credit (No other program does this)

Ability to experience appreciation

Ability for substantial rent credit to offset future cash needs to qualify to close

Deal is structured to allow Future Homeowner to qualify under refinance terms based on appraised value making it easier to qualify and requiring less or no money down with a potential for cash out

Breakdown of a Sample Deal

Breakdown of a Sample Deal (cont) $1663.98 Total including PITI & 10% Cash Flow excluding Property Management Fee $ 166.39 Property Management Fee at 10% of Monthly Lease $1830.37 Total Lease Payment Required by Future Homeowner $ 366.07 20% Monthly Rent Credit if rent is paid via payroll deduction and paid by the 1st of the month (if all 24 payments are made timely, this amount reflects 3.3% of the Option Price which would be sufficient to cover all of the Future Homeowner’s closing costs and pre-paid items at time of Investor Takeout. Though this reduces the potential return for the Investor, it ensures timely rent payments and ability for Future Homeowner to takeout the Investor at the 24 month mark and thereby ensures realization of the returns illustrated*. $8785.77 Total Potential Rent Credit to Future Homeowner ($366.07X24 Months) $7956.75 Realtor Commission @ 3% of $265,225

So, in this example, the numbers are as follows: Annual Cash on Cash Return: 17.7% (Cash flow+[Option/2]/$25,400) Annual Cash Flow: $4,500 ($2000 Cash Flow+[Option/2yrs]) Total Return on Investment (ROI): 226.3% (Net Gain/Total Cash Invested) Capital Gain: $52,090.48 (Gross Gain - Expenses) Tax (@15%) $7813.57 (Assuming no 1031 Exchange or Depr.) Net After Tax Gain: $44,276.91 (Assuming no 1031 Exchange or Depr.) After Tax Return: 192.36% (ROI x 15%=33.94),(ROI-33.94=192.36) Internal Rate of Return (IRR): 68.22% (N, +-PV, PMT, FV)=IRR (Where N=24, PV=25,400.00, PMT=375, FV=77,490.48) Annual Lease Payments: $ 21,964.44 (Lease x 12) Operating Exp. Before Debt Service: $5356.68 (Taxes + Insurance + Property Mgmt x12) Net Operating Income (NOI): $16,607.76 (Lease – Operating Exp Before Debt) CAP Rate: 8.3% (NOI/Purchase Price)

Formula used for Total Return on Investment of 226.3%:

The previous example was what the Surrogate Financing Lease Option model was originally designed around prior to inception , additional modeling, or real world testing. Theory is one thing. Results from practical application can be quite different. As someone told me once, no plan survives first contact with the enemy. Let’s see how the model and numbers work in the real world on an actual deal…………………………

The previous example was what the Surrogate Financing Lease Option model was originally designed around prior to inception , additional modeling, or real world testing.

Theory is one thing. Results from practical application can be quite different.

As someone told me once, no plan survives first contact with the enemy.

Let’s see how the model and numbers work in the real world on an actual deal…………………………

An Actual Deal This is an actual deal NOT a sample deal

4150 Havenwood Court NW 267% Cash on Cash Return Kennesaw, GA 30144 196% Return on Investment Legacy Park Subdivision $52,800 Gross Profit

Property Information 4150 Havenwood Court NW Kennesaw, GA 30144 4 Bedroom 2 ½ Bath 2 Car Front Entry Garage Brick Front Hardi Plank Sides and Rear Custom paint throughout provides an estate home look and feel Private lot with deck and phenomenal landscaping to enjoy those summer barbeques 2 Story Great Room gives wonderful spacious feel In sought after Master Planned Community Legacy Park

4150 Havenwood Court NW

Kennesaw, GA 30144

4 Bedroom

2 ½ Bath

2 Car Front Entry Garage

Brick Front

Hardi Plank Sides and Rear

Custom paint throughout provides an estate home look and feel Private lot with deck and phenomenal landscaping to enjoy those summer barbeques 2 Story Great Room gives wonderful spacious feel In sought after Master Planned Community Legacy Park

Main Entrance to Master Planned Community Legacy Park Legacy Park is Atlanta’s First Townpark Community

Legacy Park is Atlanta’s First Townpark Community

Legacy Park Amenities

Legacy Park is located in Kennesaw approximately 15 minutes northwest of Atlanta

Legacy Park is located in Kennesaw approximately 15 minutes northwest of Atlanta

Satellite View of Metro Atlanta

Satellite View of Home

Entrance to individual neighborhood Annandale is one of more than a dozen neighborhoods inside Legacy Park. The neighborhoods range in price from the mid $100’s to over $700,000

Annandale is one of more than a dozen neighborhoods inside Legacy Park.

The neighborhoods range in price from the mid $100’s to over $700,000

Front of Home

Street Scene-Left

Street Scene-Right

Foyer to Great Room

Office-Left side of foyer

Dining Room-Right of Foyer

Hall Bath in Foyer before Great Room

2 Story Great Room

View from Great Room to Kitchen

Hidden Stairwell in Great Room

View of Juliette Balcony from Great Room

View from Kitchen to Breakfast Room

View from Kitchen to Dining Room

View of Deck and Backyard through French Doors in Breakfast Room

Master Bedroom

Walk-in Master Closet

Master Bathroom with Picture Window of Backyard

Bedrooms Two and Three Bedroom # 2 Bedroom #3

Bedroom # 2

Bedroom #3

Bathroom #2

Laundry Room

Professionally Landscaped Backyard

Mature Landscaping Provides Privacy From Neighbors

Rear of Home

The Numbers Current Estimated Fair Market Value- $240,000 Purchase Price to Investor at 80% FMV- $192,000 Gross Proceeds at closing in 24 months- $ 48,000 Cash Flow Monthly- $ 200.00 Cash Flow over 24 Months- $4800.00 Total Cash Invested- $26,880.00 Gross Profit+Cash Flow- $52,800.00 Total Cash Returned (DP+GP+CF) $72,000.00 Cash on Cash Return 267.86% ($72,000 ÷ $26,880) Annual Cash on Cash Return based on 24 month exit 133.93% (267.86% ÷ 2) Return On Investment- 196.43% ($52,800 ÷ $26,880) Internal Rate of Return- 52.71% (24, ±26,880, $200, $67,200)=IRR

Current Estimated Fair Market Value- $240,000

Purchase Price to Investor at 80% FMV- $192,000

Gross Proceeds at closing in 24 months- $ 48,000

Cash Flow Monthly- $ 200.00

Cash Flow over 24 Months- $4800.00

Total Cash Invested- $26,880.00

Gross Profit+Cash Flow- $52,800.00

Total Cash Returned (DP+GP+CF) $72,000.00

Cash on Cash Return 267.86% ($72,000 ÷ $26,880)

Annual Cash on Cash Return based on 24 month exit 133.93% (267.86% ÷ 2)

Return On Investment- 196.43% ($52,800 ÷ $26,880)

Internal Rate of Return- 52.71% (24, ±26,880, $200, $67,200)=IRR

Debt Service, Closing Costs, Option Price, Rent Credit Debt Service Based on 90% of $192,000: *Assumes Full Documentation Investor Loan with 740 FICO and six months reserves, subject to change daily based on market conditions Down Payment at 10% of Purchase Price: $19,200 Loan Amount- $172,800 P&I for 30 Year Fixed at 6.75%: $1120.78 Taxes- $205.00 Insurance (estimated)- $50.00 PMI- $130.00 Total of PITI & PMI- $1505.00 Lease Payment from Tenant- $1705.00 Cash Flow Monthly- $ 200.00 Cash Flow over 24 Months- $4800.00 Estimated Closing Costs*- $7680.00 (*Includes 2 years of HOA and Home Warranty) Option Price to Tenant- $254,700.00 Total Rent Credit if all rent paid by the 1 st - $ 14,700.00 *see also additional supporting documentation (comps, listings, property tax records, etc.)

Debt Service, Closing Costs, Option Price, Rent Credit

Debt Service Based on 90% of $192,000:

*Assumes Full Documentation Investor Loan with 740 FICO and six months reserves, subject to change daily based on market conditions

Down Payment at 10% of Purchase Price: $19,200

Loan Amount- $172,800

P&I for 30 Year Fixed at 6.75%: $1120.78

Taxes- $205.00

Insurance (estimated)- $50.00

PMI- $130.00

Total of PITI & PMI- $1505.00

Lease Payment from Tenant- $1705.00

Cash Flow Monthly- $ 200.00

Cash Flow over 24 Months- $4800.00

Estimated Closing Costs*- $7680.00

(*Includes 2 years of HOA and Home Warranty)

Option Price to Tenant- $254,700.00

Total Rent Credit if all rent paid by the 1 st - $ 14,700.00

*see also additional supporting documentation (comps, listings, property tax records, etc.)

Terms of the Deal This property is currently pre-leased to a Tenant subject to our acquisition based on the following: Triple Net Lease covering all debt service and maintenance and providing cash flow Tenant has agreed to enter a credit repair program to ensure ability for takeout at 24 month mark Tenant is provided rent credit for that month if payment is made by the 1 st of the month Deal is structured to enable Tenant to have sufficient equity via rent credit and appreciation to close in 24 months with no cash out of pocket

This property is currently pre-leased to a Tenant subject to our acquisition based on the following:

Triple Net Lease covering all debt service and maintenance and providing cash flow

Tenant has agreed to enter a credit repair program to ensure ability for takeout at 24 month mark

Tenant is provided rent credit for that month if payment is made by the 1 st of the month

Deal is structured to enable Tenant to have sufficient equity via rent credit and appreciation to close in 24 months with no cash out of pocket

About the Tenant The Tenant had a bankruptcy discharged last year Tenant makes $140,000 per year as a regional marketing manager for an international engineering firm Tenant has been on current job more than one year Tenant previously owned two homes in Legacy Park and has strong decade long ties to the community and neighbors

The Tenant had a bankruptcy discharged last year

Tenant makes $140,000 per year as a regional marketing manager for an international engineering firm

Tenant has been on current job more than one year

Tenant previously owned two homes in Legacy Park and has strong decade long ties to the community and neighbors

Why this is a good deal Tenant has had all debt wiped out due to bankruptcy discharge except vehicle, which her company pays for Tenant cannot file bankruptcy again for 10 years Tenant has large income Tenant’s housing debt ratio is an exceptionally low 14.6% of gross income Tenant has strong ties to the neighborhood and wants to be a homeowner again

Tenant has had all debt wiped out due to bankruptcy discharge except vehicle, which her company pays for

Tenant cannot file bankruptcy again for 10 years

Tenant has large income

Tenant’s housing debt ratio is an exceptionally low 14.6% of gross income

Tenant has strong ties to the neighborhood and wants to be a homeowner again

Risk Mitigation All perceivable risk has been mitigated The two possible factors (other than Act of God) that can impact the returns cited are price deflation and non-exercising of the Option by the Tenant Price deflation has been mitigated by extreme due diligence during property and neighborhood analysis Desire of Tenant to not exercise the Option has been mitigated due to Option consideration paid, Rent Credits and Appreciation realized making it economically imprudent for the Tenant to walk away

All perceivable risk has been mitigated

The two possible factors (other than Act of God) that can impact the returns cited are price deflation and non-exercising of the Option by the Tenant

Price deflation has been mitigated by extreme due diligence during property and neighborhood analysis

Desire of Tenant to not exercise the Option has been mitigated due to Option consideration paid, Rent Credits and Appreciation realized making it economically imprudent for the Tenant to walk away

Commitment from Investor Further Validation of Deal Integrity & Profitability The very first professional Investor that this deal was presented to replied to my email with the following email response: “ I will buy the Kennesaw house as presented.”………………. Richard M. It is important to note that Richard has been a professional real estate Investor for more than 40 years and has current real estate holdings in excess of $20,000,000 U.S.D. This suggests that he has weathered numerous real estate up and down cycles and understands what is, and is not, a profitable deal. As previously indicated, these deals are absolute no brainer deals. This deal made so much sense that it required one email to one Investor to secure an Investor for takeout.

The very first professional Investor that this deal was presented to replied to my email with the following email response:

“ I will buy the Kennesaw house as presented.”………………. Richard M.

It is important to note that Richard has been a professional real estate Investor for more than 40 years and has current real estate holdings in excess of $20,000,000 U.S.D.

This suggests that he has weathered numerous real estate up and down cycles and understands what is, and is not, a profitable deal.

As previously indicated, these deals are absolute no brainer deals. This deal made so much sense that it required one email to one Investor to secure an Investor for takeout.

Discounted Notes An In Depth Look This program is designed to provide exceptional profit margins and integrates perfectly into our Surrogate Financing Lease Option Program and Straight Equity Purchase marketing models for fast flips to other Investors or end users. Because the banks typically require these deals to be bought in bulk, they require a larger investment and/or consortium of Investors to supply the cash necessary to achieve deep discounts. The amount of the discount is predicated on the volume of notes that are purchased, how the notes are performing and the caliber of the underlying collateral. Requisite capital to invest is a minimum of $1,000,000.00 U.S.D. Investors at this investment level will be required to form a consortium or syndicate with other individual and institutional Investors to allow an initial pool buy of $10,000,000 U.S.D. While occasionally individual deals can be found, the banks typically won’t look at substantial discounts on a lesser purchase. Discounts at this level are typically negotiated at .50¢-.60¢ on the dollar. The greatest discounts are at the $50,000,000.00 + U.S.D. level and equate to roughly .30¢-.40¢ on the dollar (depending on the total amount purchased and the caliber of pool). It is important to note that these deals require cash and holding power. The notes will be in various amounts and various states of performance. There are multiple exit strategies within the pool of notes. Some notes will perform providing debt service payments and eventually be paid off via borrower refinance or sale. With the average mortgage held 36 months, this could lead to a 36+or- month hold if the note performs.

This program is designed to provide exceptional profit margins and integrates perfectly into our Surrogate Financing Lease Option Program and Straight Equity Purchase marketing models for fast flips to other Investors or end users. Because the banks typically require these deals to be bought in bulk, they require a larger investment and/or consortium of Investors to supply the cash necessary to achieve deep discounts. The amount of the discount is predicated on the volume of notes that are purchased, how the notes are performing and the caliber of the underlying collateral. Requisite capital to invest is a minimum of $1,000,000.00 U.S.D. Investors at this investment level will be required to form a consortium or syndicate with other individual and institutional Investors to allow an initial pool buy of $10,000,000 U.S.D. While occasionally individual deals can be found, the banks typically won’t look at substantial discounts on a lesser purchase. Discounts at this level are typically negotiated at .50¢-.60¢ on the dollar.

The greatest discounts are at the $50,000,000.00 + U.S.D. level and equate to roughly .30¢-.40¢ on the dollar (depending on the total amount purchased and the caliber of pool).

It is important to note that these deals require cash and holding power. The notes will be in various amounts and various states of performance. There are multiple exit strategies within the pool of notes. Some notes will perform providing debt service payments and eventually be paid off via borrower refinance or sale. With the average mortgage held 36 months, this could lead to a 36+or- month hold if the note performs.

If the note does not perform, there are multiple exit strategies. The fastest, easiest and least expensive method to exit is to contact the borrower and secure a deed in lieu of foreclosure, then rehab (as necessary) and re-market the property via our Surrogate Financing Lease Option Program (to sell at 80% FMV to another Investor) or Straight Equity Purchase Program (to sell at 80% FMV to another Investor or potentially greater than 80% FMV to an end user at retail). A longer and more expensive exit strategy is to foreclose on the property, rehab and re-market. Every effort is made with the borrower to avoid this strategy. The typical bank strong arm tactics are avoided to minimize expense and protect the property from a disgruntled and impassioned defaulted borrower. Options are presented to the borrower to help facilitate payoff, payments being brought current or a deed in lieu of foreclosure. If the borrower qualifies, they can be placed as a tenant in our Surrogate Financing Lease Option Program. This may not make sense on the surface, but it is important to understand that foreclosures typically result from definable events (most of which are not permanently financially devastating). A typical scenario for a defaulted borrower is disability, loss of job, divorce, death of spouse, etc., that results in a temporary reduction in income. By the time the average borrower recovers, they are 3-6 months down on the mortgage payment. At this point, despite what the media portrays, banks will typically only accept the entire arrearage so as to not forestall or postpone the due process required by the foreclosure laws. It is typically at this point that the borrower can resume paying normal mortgage payments as agreed. In these instances, depending on the borrower’s situation, condition of the property and equity position, we may allow the borrower to enter into a forbearance agreement and defer the unpaid interest to the back of the note to preserve profitability and minimize expense. In addition to the capital requirements to buy the pool, a liquid slush fund is initially required for expenses associated with marketing, rehab and legal expense. This fund can be reimbursed to the Investors from proceeds from the sale of the properties once they begin to sell. While it is not within the scope of this Prospectus to cover all of the nuances of purchasing Discounted Notes, this should provide a broad overview of the structure, exit and profitability.

If the note does not perform, there are multiple exit strategies. The fastest, easiest and least expensive method to exit is to contact the borrower and secure a deed in lieu of foreclosure, then rehab (as necessary) and re-market the property via our Surrogate Financing Lease Option Program (to sell at 80% FMV to another Investor) or Straight Equity Purchase Program (to sell at 80% FMV to another Investor or potentially greater than 80% FMV to an end user at retail).

A longer and more expensive exit strategy is to foreclose on the property, rehab and re-market. Every effort is made with the borrower to avoid this strategy. The typical bank strong arm tactics are avoided to minimize expense and protect the property from a disgruntled and impassioned defaulted borrower. Options are presented to the borrower to help facilitate payoff, payments being brought current or a deed in lieu of foreclosure. If the borrower qualifies, they can be placed as a tenant in our Surrogate Financing Lease Option Program. This may not make sense on the surface, but it is important to understand that foreclosures typically result from definable events (most of which are not permanently financially devastating). A typical scenario for a defaulted borrower is disability, loss of job, divorce, death of spouse, etc., that results in a temporary reduction in income. By the time the average borrower recovers, they are 3-6 months down on the mortgage payment. At this point, despite what the media portrays, banks will typically only accept the entire arrearage so as to not forestall or postpone the due process required by the foreclosure laws. It is typically at this point that the borrower can resume paying normal mortgage payments as agreed. In these instances, depending on the borrower’s situation, condition of the property and equity position, we may allow the borrower to enter into a forbearance agreement and defer the unpaid interest to the back of the note to preserve profitability and minimize expense.

In addition to the capital requirements to buy the pool, a liquid slush fund is initially required for expenses associated with marketing, rehab and legal expense. This fund can be reimbursed to the Investors from proceeds from the sale of the properties once they begin to sell.

While it is not within the scope of this Prospectus to cover all of the nuances of purchasing Discounted Notes, this should provide a broad overview of the structure, exit and profitability.

Straight Equity Purchases An In Depth Look Unquestionably the easiest to understand, Straight Equity Purchases are properties that have been acquired at a substantial discount (via short sale, deed in lieu, subject to, distressed sale, etc.) and are immediately remarketed to flip. These deals require liquidity and holding power if leverage is utilized to purchase. The exit strategy is fast sale to another Investor at a discount or an end user at retail. Deal size can be from $100,000 to several million dollars. Despite what the media portrays, there is still a strong flip market. The difference is now instead of being driven by an ability to flip due to appreciation, it is being driven by ability to flip because of truly discounted acquisition. There is a strong contingent in the Investor arena of Investors flipping to other Investors. These deals are straight arbitrage deals in their simplest form.

Unquestionably the easiest to understand, Straight Equity Purchases are properties that have been acquired at a substantial discount (via short sale, deed in lieu, subject to, distressed sale, etc.) and are immediately remarketed to flip. These deals require liquidity and holding power if leverage is utilized to purchase.

The exit strategy is fast sale to another Investor at a discount or an end user at retail. Deal size can be from $100,000 to several million dollars. Despite what the media portrays, there is still a strong flip market. The difference is now instead of being driven by an ability to flip due to appreciation, it is being driven by ability to flip because of truly discounted acquisition. There is a strong contingent in the Investor arena of Investors flipping to other Investors.

These deals are straight arbitrage deals in their simplest form.

“ Subject To” Acquisitions An In Depth Look As previously indicated, “Subject To” deals can easily be the most profitable deals defined in this Prospectus with returns easily obtained in the 1000s of percent if the money is allowed to turn. Here’s how it works, properties with significant equity position are located that are a few days to a few weeks away from the foreclosure sale. After completing the due diligence of ensuring marketable title, no additional liens, equity position and marketability, negotiations commence with the borrower to purchase the existing property “subject to” the existing mortgage that is already in place. This is truly a Win-Win for both parties. The borrowers are allowed to save their credit from foreclosure and obtain some cash for moving and incidentals. The Investor is provided with a deed to a marketable property in good condition with substantial equity position. The beauty of these deals is that they require a minimal cash investment and don’t require any encumbrance of credit obligations on an individual Investor. Properly structured, they are always purchased by an LLC., or S corp. This adds another layer of asset protection for the individual Investor. These deals are picked up in ranges from literally as low as .02¢ on the dollar to .70¢ on the dollar. Every deal is different and they can involve residential, commercial or agricultural properties.

As previously indicated, “Subject To” deals can easily be the most profitable deals defined in this Prospectus with returns easily obtained in the 1000s of percent if the money is allowed to turn.

Here’s how it works, properties with significant equity position are located that are a few days to a few weeks away from the foreclosure sale. After completing the due diligence of ensuring marketable title, no additional liens, equity position and marketability, negotiations commence with the borrower to purchase the existing property “subject to” the existing mortgage that is already in place. This is truly a Win-Win for both parties. The borrowers are allowed to save their credit from foreclosure and obtain some cash for moving and incidentals. The Investor is provided with a deed to a marketable property in good condition with substantial equity position. The beauty of these deals is that they require a minimal cash investment and don’t require any encumbrance of credit obligations on an individual Investor. Properly structured, they are always purchased by an LLC., or S corp. This adds another layer of asset protection for the individual Investor.

These deals are picked up in ranges from literally as low as .02¢ on the dollar to .70¢ on the dollar. Every deal is different and they can involve residential, commercial or agricultural properties.

Investable Cash Required to Do a “Subject To” Reinstatement of mortgage- typically 4-6 months of existing mortgage payment 6 months holding cost- to allow for rehab (if necessary) and marketing time Insurance- six months Title Insurance Policy Deed Recording Utilities- six months Selling Costs- case by case Repair Cost- case by case Example $250k FMV Home $172k Existing Mortgage $6k in mortgage payments in arrears Property is acquired for $6k to bring mortgage current + $4k Moving expense + $4k Rehab, Insurance, Title Insurance, Utilities & Marketing for a total of $14k invested Home sells in 60 days for $220k yielding a profit of $34,000 Cash on Cash Return on Investment is 242.87% ($34000 ÷ $14000) Internal Rate of Return is 105.08% (2, ± $186,000, 0, $220,000)=IRR Do this 6 more times in a calendar year and that equates to a 1457.22% ROI

Investable Cash Required to Do a “Subject To”

Reinstatement of mortgage- typically 4-6 months of existing mortgage payment

6 months holding cost- to allow for rehab (if necessary) and marketing time

Insurance- six months

Title Insurance Policy

Deed Recording

Utilities- six months

Selling Costs- case by case

Repair Cost- case by case

Example

$250k FMV Home

$172k Existing Mortgage

$6k in mortgage payments in arrears

Property is acquired for $6k to bring mortgage current + $4k Moving expense + $4k Rehab, Insurance, Title Insurance, Utilities & Marketing for a total of $14k invested

Home sells in 60 days for $220k yielding a profit of $34,000

Cash on Cash Return on Investment is 242.87% ($34000 ÷ $14000)

Internal Rate of Return is 105.08% (2, ± $186,000, 0, $220,000)=IRR

Do this 6 more times in a calendar year and that equates to a 1457.22% ROI

In short, “Subject To” deals provide significant returns and if the invested money is allowed to turn over and over again in perpetuity with new deals, the returns can easily reach the 1000s of percent. It is important to note that to participate in this program, the Investor must have the ability to make fast decisions and move money quickly upon being provided a “Subject To” due diligence package because the time period prior to foreclosure can literally be a few short days. These opportunities only knock once and shortly thereafter, they are gone forever.

In short, “Subject To” deals provide significant returns and if the invested money is allowed to turn over and over again in perpetuity with new deals, the returns can easily reach the 1000s of percent.

It is important to note that to participate in this program, the Investor must have the ability to make fast decisions and move money quickly upon being provided a “Subject To” due diligence package because the time period prior to foreclosure can literally be a few short days. These opportunities only knock once and shortly thereafter, they are gone forever.

Investor Joint Ventures An In Depth Look Investor Joint Ventures are highly profitable, highly secure investment vehicles that can yield returns in the 1000s of percent. With the current number of short sales, REOs and distressed sales in the market, it is a real estate Investor’s paradise. The challenge for many Investors is that with the buying market also came massive restrictions to lending guidelines by FNMA, FHLMC and other institutional lenders. This has caused a massive contraction in available mortgage options and liquidity to close Investor deals. That, combined with legislative initiatives in some states requiring Investors to close with their own cash represents unparalleled opportunity for liquid Investors. Here’s how it works: A third party real estate Investor negotiates a short sale, REO or distressed sale with the intent to place a Lease Option Tenant in place and flip the property to another Investor via our Surrogate Financing model or as a straight sale to an end user Buyer (Investor or Buyer). If the third party real estate Investor is required to close with his own cash, he has the option of utilizing his own cash or securing financing. In a scenario where the third party real estate Investor does not have the personal cash to close or the credit or ability to obtain conventional financing, they stand to lose a deal that can yield them a 5 to 6 figure return, depending on structure. Enter the Investor Joint Venture. The third party real estate Investor enters into an agreement for an Investor Joint Venture. Every deal is different and the actual document used can be a Land Trust, LLC., S Corp, note, etc. The third party real estate Investor secures financing or participation via the Investor Joint Venture. The third party real estate Investor already has another Investor or Buyer setup to flip the property to via a simultaneous closing. On the day of closing, the Investor Joint Venture sends closing instructions regarding disbursement of the funds to the real estate attorney or title company and instructs the closing firm that the deal is not to be consummated without the Investor or Buyer purchasing the property via a simultaneous closing.

Investor Joint Ventures are highly profitable, highly secure investment vehicles that can yield returns in the 1000s of percent. With the current number of short sales, REOs and distressed sales in the market, it is a real estate Investor’s paradise. The challenge for many Investors is that with the buying market also came massive restrictions to lending guidelines by FNMA, FHLMC and other institutional lenders. This has caused a massive contraction in available mortgage options and liquidity to close Investor deals. That, combined with legislative initiatives in some states requiring Investors to close with their own cash represents unparalleled opportunity for liquid Investors.

Here’s how it works: A third party real estate Investor negotiates a short sale, REO or distressed sale with the intent to place a Lease Option Tenant in place and flip the property to another Investor via our Surrogate Financing model or as a straight sale to an end user Buyer (Investor or Buyer). If the third party real estate Investor is required to close with his own cash, he has the option of utilizing his own cash or securing financing. In a scenario where the third party real estate Investor does not have the personal cash to close or the credit or ability to obtain conventional financing, they stand to lose a deal that can yield them a 5 to 6 figure return, depending on structure. Enter the Investor Joint Venture. The third party real estate Investor enters into an agreement for an Investor Joint Venture. Every deal is different and the actual document used can be a Land Trust, LLC., S Corp, note, etc. The third party real estate Investor secures financing or participation via the Investor Joint Venture. The third party real estate Investor already has another Investor or Buyer setup to flip the property to via a simultaneous closing. On the day of closing, the Investor Joint Venture sends closing instructions regarding disbursement of the funds to the real estate attorney or title company and instructs the closing firm that the deal is not to be consummated without the Investor or Buyer purchasing the property via a simultaneous closing.

The deal closes simultaneously. The funds never actually leave the closing firm’s trust account because they are replaced immediately by the Investor or Buyer’s funds. After the transaction is closed, the closing firm wires back the Investor Joint Venture’s funds and fee for closing the transaction. Very clean, exceptionally fast, ridiculously secure. Potential for risk is essentially limited to a flagrant error or outright fraud by the closing firm or collapse of the banking institution. These risks are mitigated via an Errors & Omissions Insurance (E&O), Directors and Officers Insurance (D&O), an Insured Closing Letter (ICL), and depending on the closing firm and state, potentially a Surety Bond. An Actual Deal Currently Negotiated Purchase price of the home $300,000 Fee for Investor Joint Venture Participation $ 3,000 (1%) Third Party Real Estate Investor’s Gross $100,000 Third Party Real Estate Investor’s Net $ 97,000 Investor Joint Venture’s funds will be out and back into his account within 48 hours. This particular Investor has asked us to coordinate at least 10 of these deals per month for him. For this Third Party Real Estate Investor, this deal was a no brainer. Without it, he would have lost out on the opportunity to make $97,000.00 U.S.D.

The deal closes simultaneously. The funds never actually leave the closing firm’s trust account because they are replaced immediately by the Investor or Buyer’s funds. After the transaction is closed, the closing firm wires back the Investor Joint Venture’s funds and fee for closing the transaction.

Very clean, exceptionally fast, ridiculously secure. Potential for risk is essentially limited to a flagrant error or outright fraud by the closing firm or collapse of the banking institution. These risks are mitigated via an Errors & Omissions Insurance (E&O), Directors and Officers Insurance (D&O), an Insured Closing Letter (ICL), and depending on the closing firm and state, potentially a Surety Bond.

An Actual Deal Currently Negotiated

Purchase price of the home $300,000

Fee for Investor Joint Venture Participation $ 3,000 (1%)

Third Party Real Estate Investor’s Gross $100,000

Third Party Real Estate Investor’s Net $ 97,000

Investor Joint Venture’s funds will be out and back into his account within 48 hours. This particular Investor has asked us to coordinate at least 10 of these deals per month for him.

For this Third Party Real Estate Investor, this deal was a no brainer. Without it, he would have lost out on the opportunity to make $97,000.00 U.S.D.

In this example, the return is “only” 1% which is an incredible 48 hour return. The key to this investment strategy is to allow the money to turn in perpetuity to achieve returns in the 100s and 1000s of percent. This yield represents the low end of what can be negotiated. Deals to 50% of third party real estate Investor profit can be negotiated under certain circumstances. This obviously has the potential for significantly larger returns. The actual deal referenced above could have easily yielded a 5 figure return for the Investor Joint Venture and still made sense to the third party Investor.

In this example, the return is “only” 1% which is an incredible 48 hour return. The key to this investment strategy is to allow the money to turn in perpetuity to achieve returns in the 100s and 1000s of percent. This yield represents the low end of what can be negotiated. Deals to 50% of third party real estate Investor profit can be negotiated under certain circumstances. This obviously has the potential for significantly larger returns. The actual deal referenced above could have easily yielded a 5 figure return for the Investor Joint Venture and still made sense to the third party Investor.

Wholesale Tranche Liquidations A Deeper Look Wholesale Tranche Liquidations are simply large purchases of bank owned REO properties (foreclosures) at deep discounts that then require marketing, sale and in some cases rehab. Like the Discounted Notes program, this program is designed to provide exceptional profit margins and integrates perfectly into our Surrogate Financing Lease Option Program and Straight Equity Purchase marketing models for fast flips to other Investors or end users. Because the banks typically require these deals to be bought in bulk tranches, they require a larger investment and/or consortium of Investors to supply the cash necessary to achieve deep discounts. The amount of the discount is predicated on the dollar volume of the tranche purchased and the caliber of the underlying collateral. Requisite capital to invest is a minimum of $1,000,000.00 U.S.D. Investors at this investment level will be required to form a consortium or syndicate with other individual and institutional Investors to allow an initial pool buy of $10,000,000 U.S.D. Discounts at this level are typically negotiated at .50¢-.60¢ on the dollar.

Wholesale Tranche Liquidations are simply large purchases of bank owned REO properties (foreclosures) at deep discounts that then require marketing, sale and in some cases rehab. Like the Discounted Notes program, this program is designed to provide exceptional profit margins and integrates perfectly into our Surrogate Financing Lease Option Program and Straight Equity Purchase marketing models for fast flips to other Investors or end users. Because the banks typically require these deals to be bought in bulk tranches, they require a larger investment and/or consortium of Investors to supply the cash necessary to achieve deep discounts. The amount of the discount is predicated on the dollar volume of the tranche purchased and the caliber of the underlying collateral. Requisite capital to invest is a minimum of $1,000,000.00 U.S.D.

Investors at this investment level will be required to form a consortium or syndicate with other individual and institutional Investors to allow an initial pool buy of $10,000,000 U.S.D.

Discounts at this level are typically negotiated at .50¢-.60¢ on the dollar.

The greatest discounts are at the $50,000,000.00 + U.S.D. level and equate to roughly .30¢-.40¢ on the dollar (depending on the total amount purchased and the caliber of the underlying collateral in the tranche). It is important to note that these deals require cash and holding power. The underlying collateral will be in various amounts and various states of condition. There are multiple exit time frames within the tranche due to the initial marketability of the homes. Due to the deep discounts, the yields on these tranches can be in the 100s of percent. Actual overall financial performance of the tranche will depend on the caliber of the tranche purchased, rehab and marketing expense and time to liquidate the entire tranche. The time to exit will vary based on rehab and marketing time necessary for liquidation. Because of the deep discount, risk is mitigated to a high level. The deep discount virtually ensures a fast turn on the money. Like the “Subject To” Acquisitions, if the invested capital is allowed to turn in perpetuity in a calendar year, the returns can be in the 1000s of percent. It is beyond the scope of this Prospectus to completely detail everything necessary to perform due diligence on the tranche, negotiate the buy, purchase the tranche, rehab, market and sell the tranche.

The greatest discounts are at the $50,000,000.00 + U.S.D. level and equate to roughly .30¢-.40¢ on the dollar (depending on the total amount purchased and the caliber of the underlying collateral in the tranche).

It is important to note that these deals require cash and holding power. The underlying collateral will be in various amounts and various states of condition. There are multiple exit time frames within the tranche due to the initial marketability of the homes.

Due to the deep discounts, the yields on these tranches can be in the 100s of percent. Actual overall financial performance of the tranche will depend on the caliber of the tranche purchased, rehab and marketing expense and time to liquidate the entire tranche. The time to exit will vary based on rehab and marketing time necessary for liquidation. Because of the deep discount, risk is mitigated to a high level. The deep discount virtually ensures a fast turn on the money. Like the “Subject To” Acquisitions, if the invested capital is allowed to turn in perpetuity in a calendar year, the returns can be in the 1000s of percent.

It is beyond the scope of this Prospectus to completely detail everything necessary to perform due diligence on the tranche, negotiate the buy, purchase the tranche, rehab, market and sell the tranche.

Disclaimers (aka, the fine print we are required to put in this Prospectus) Past Performance is no guarantee of future results This is for accredited investors only This is NOT an offering of securities Information is for illustrative purposes only and each deal will require individual analysis and due diligence Please consult your financial advisor and attorney prior to investing The Investor acknowledges as having read, fully understood and accepted the below listed risks and undertakes not to file complaints in the event of unfavorable circumstances. The Wealth Consortium, LLC., (“The Company”) deems this information to be reliable but not warranted and Investor needs to complete their own due diligence and understand market risks before investing The Company hereby advises the Investor of primary potential risks that might be incurred while effecting transactions in the real estate market: Price Risk – the exposure to decrease in market value of the property or investment portfolio and the loss of entire or some part of the Investor’s funds, invested in the real estate market, due to inimical price changes on the real estate market. Liquidity Risk – risks, connected with certain market conditions (e.g. illiquidity) that may increase the risk of loss by making it difficult or impossible for the Tenant or other buyers to obtain financing and thereby take out Investor Default Risk (Risk of unfulfilled liabilities) – the risk of loss of assets, resulting from the event of default, insolvency or illegal activities of a Tenant. In these instances, the Company will seek to replace Tenant with another suitable Tenant and protect Investor’s return Systemic Risk – the risk subject to financial market performance as a system expressed by potential failures of the system or its components (banking system, clearing-and- settlement system, trading and other systems that influence the financial market performance) to perform its functions. Tax Risk – the risk of possible changes and amendments in tax legislation, leading to decrease in return on assets of the Investor.

Past Performance is no guarantee of future results

This is for accredited investors only

This is NOT an offering of securities

Information is for illustrative purposes only and each deal will require individual analysis and due diligence

Please consult your financial advisor and attorney prior to investing

The Investor acknowledges as having read, fully understood and accepted the below listed risks and undertakes not to file complaints in the event of unfavorable circumstances.

The Wealth Consortium, LLC., (“The Company”) deems this information to be reliable but not warranted and Investor needs to complete their own due diligence and understand market risks before investing

The Company hereby advises the Investor of primary potential risks that might be incurred while effecting transactions in the real estate market:

Price Risk – the exposure to decrease in market value of the property or investment portfolio and the loss of entire or some part of the Investor’s funds, invested in the real estate market, due to inimical price changes on the real estate market.

Liquidity Risk – risks, connected with certain market conditions (e.g. illiquidity) that may increase the risk of loss by making it difficult or impossible for the Tenant or other buyers to obtain financing and thereby take out Investor

Default Risk (Risk of unfulfilled liabilities) – the risk of loss of assets, resulting from the event of default, insolvency or illegal activities of a Tenant. In these instances, the Company will seek to replace Tenant with another suitable Tenant and protect Investor’s return

Systemic Risk – the risk subject to financial market performance as a system expressed by potential failures of the system or its components (banking system, clearing-and- settlement system, trading and other systems that influence the financial market performance) to perform its functions.

Tax Risk – the risk of possible changes and amendments in tax legislation, leading to decrease in return on assets of the Investor.

Even More Fine Print that we are required to put in The Company, while supplying services to the Investor, is not acting as a tax, legal or investment advisor, therefore is not obliged to provide information and/or analytical materials pertaining to real estate or financial markets; if the Company provides such information or analytical materials to the Investor, then all investment decisions, made by the Investor on the basis of the provided information or analytical materials, are made at the Investor’s sole discretion and at his own risk, and not on the basis of the Company’s assertions, guarantees or recommendations. Please note that the foregoing list of risks is not exhaustive, consequently, the Investor may face additional risks connected with investing in the real estate market up to and including losing all of your investment. The Company, its officers, directors, shareholders and employees are NOT licensed to sell real estate in either a brokerage or sales person capacity. The information contained herein is protected by U.S. and International Copyright laws and may not be reproduced in any format without the express written consent of The Wealth Consortium, LLC.

The Company, while supplying services to the Investor, is not acting as a tax, legal or investment advisor, therefore is not obliged to provide information and/or analytical materials pertaining to real estate or financial markets; if the Company provides such information or analytical materials to the Investor, then all investment decisions, made by the Investor on the basis of the provided information or analytical materials, are made at the Investor’s sole discretion and at his own risk, and not on the basis of the Company’s assertions, guarantees or recommendations.

Please note that the foregoing list of risks is not exhaustive, consequently, the Investor may face additional risks connected with investing in the real estate market up to and including losing all of your investment.

The Company, its officers, directors, shareholders and employees are NOT licensed to sell real estate in either a brokerage or sales person capacity.

The information contained herein is protected by U.S. and International Copyright laws and may not be reproduced in any format without the express written consent of The Wealth Consortium, LLC.

For additional information about Surrogate Financing, Discounted Notes, Straight Equity Purchases, “Subject To” Acquisitions, Investor Joint Ventures or Wholesale Tranche Liquidation investment opportunities, please contact: Vincent Polisi The Wealth Consortium, LLC. 770.456.5817 [email_address]

For additional information about

Surrogate Financing, Discounted Notes, Straight Equity Purchases, “Subject To” Acquisitions,

Investor Joint Ventures or

Wholesale Tranche Liquidation investment opportunities, please contact:

Vincent Polisi

The Wealth Consortium, LLC.

770.456.5817

[email_address]