This document describes a joint venture program for real estate investors. It outlines two joint venture options - a traditional joint venture and a leveraged joint venture. The leveraged joint venture allows investors to purchase properties with up to 5x their capital commitment by using leverage. It provides examples comparing the financial outcomes of each option on a hypothetical $200,000 property purchase. The leveraged joint venture results in a higher return on investment for the investor compared to the traditional joint venture. Current real estate deal examples in California and Florida are also presented.

1. Residential Real Estate
JOINT VENTURE PROGRAM
for INVESTORS
Orlando Office| (407) 490-2447
California Office| (949) 667-1447

2. JOINT VENTURE PROGRAM
This document, nor any other written or verbal communication between HIS Real Estate
Network, LLC, Metro Capital Management, LLC and/or any affiliated persons and/or entities and
myself, is NOT an offer to sell nor a solicitation of an offer to purchase investment securities. The
information supplied relates to possible real estate opportunities for qualified purchasers who
seek to establish an existing substantive relationship with HIS Real Estate Network, LLC, Metro
Capital Management, and/or any of their subsidiaries or partners. Natural persons qualify as
investors by virtue of such pre-existing relationships and by proof of business experience,
income and net worth.

3. What are we looking for?
Investors:
Investors with $50k-$700K commitment qualify for our Leveraged Joint Venture
Program:
1. The Leveraged JV Program is like a “dating system”. The investing relationship is
initiated. We use the Leveraged JV Program to prove ourselves to new investors
with the ultimate goal of developing a long term investing relationship with
investors.
2. Once investors go through the Leveraged JV Program, investors are presented with
our long term investing options (i.e. the “marriage system”). These options are
designed to maximize investor profits through a diversified investment program
over longer period of time.

4. Leveraged Joint Venture Option for Investor
Investment Criteria
• Distressed Residential Real Estate Assets
• Single Family Residences – One to Four Units
• Southern California – Los Angeles, Orange, San Diego, Ventura, Riverside & San
Bernardino Counties.
• Florida- Orange County, Winter Gardens, Windermere, Davenport & Kissimmee.
• Properties available for less than 70% of Fair Market Value
• Properties over 70% Fair Market Value will only be considered when one or more of the
following compensating factors apply:
o End buyer lined up
o Hot local market activity
o Days on market is under 15 days
o Minimum rehab required

5. Joint Venture Options
DISADVANTAGES
Traditional Joint Venture Leveraged Joint Venture
• 100% of invested capital at work on one • Investor more reliant on management
property • Investor receives a smaller % profit split
• No risk on management team • Investor has a subordinated position at
• Investor takes on all risk and liability for liquidation when compared to Leverage
purchase and rehab of property Partner
• Generally, no option to leverage capital • Investor has less control of funds
• Many investors are not fully aware of • Asset is NOT free and clear
risks and may make unwise decisions
• Investor is not on the frontline which
causes delays in decision making and lost
opportunities

6. Joint Venture Options
ADVANTAGES
Traditional Joint Venture Leveraged Joint Venture
• Investor has complete control of the deal • UP TO- 5:1 increase in purchase power
• Investor is in first position when the • Exposure to capital is minimized
asset is liquidated • Cash on Cash ROI improves
• Investor controls all the funds • Investor has a diversified portfolio
• Asset is owned free and clear • Improved time efficiency = better
inventory
• Expert manager makes most decisions
based on local experience
• Management shares majority of the risk
by securing 1st Deed of Trust
• Investor’s capital contribution is
minimized (Down Payment + Rehab +
Leverage) and secured by the R.E.

7. Real Scenario: $200K Purchase Price
Purchase: @ 70% FMV
Leverage: @ 65% ARV
Capital Required
TRADITIONAL JV. Buyer HUD LEVERAGE JV. Buyer HUD
Purchase Debits Credits Purchase Debits Credits
Purchase Price $200,000.00 Purchase Price $200,000.00
Initial Deposit $2,000.00 Initial Deposit $2,000.00
New Deed of Trust $185,575.00
Title Charges $1,500.00 Title Charges $1,500.00
Recording Charges $100.00 Recording + Misc. Charges $500.00
Escrow Charges $1,000.00 Escrow Charges $1,000.00
Other Misc. Charges $400.00 New Loan Charges
Loan Origination Fee $925.00
Total Closing Cost $3,000.00 Discount Fee $6,475.00
Underwriting Fee $1,500.00
Balance due at closing $201,000.00 $201,000.00 Total Investor due at closing $26,325.00
Totals Acquisition COST $203,000.00 $203,000.00 Totals Acquisition COST $211,900.00 $211,900.00

8. Real Scenario: $200K Purchase Price
Purchase: @ 70% FMV
Leverage: @ 65% ARV
Resale Net
TRADITIONAL JV. Buyer HUD LEVERAGE JV. Buyer HUD
Resale Debits Credits Resale Debits Credits
Resale Price $285,500.00 Resale Price $285,500.00
Title Charges $1,400.00 Title Charges $1,400.00
Recording Charges $100.00 Recording Charges $100.00
Escrow Charges $900.00 Escrow Charges $900.00
R.E. Commissions (5% of
R. E. Commissions (5% $14,275.00
$14,275.00 Resale)
of Resale)
Credit to Buyers’ Closing
Credit to Buyer’s Closing $5,710.00
$5,710.00 Costs (2% of Resale)
Cost s (2% of Resale)
Total closing cost $22,385.00 $285,000.00 Total closing cost $22,385.00 $285,000.00
Total Resale NET $263,115.00 $263,115.00 Total Resale NET $263,115.00 $263,115.00

9. Investors’ Net Profit on Investment
Traditional J.V. Leverage J.V.
Totals Acquisition cost $203,000.00 Totals Acquisition cost $211,900.00
Total Resale net $263,115.00 Total Resale net $263,115.00
Total Revenue Total Revenue
$60,115.00 $51,215.00
(acquisition – resale) (acquisition – resale)
Total Construction Cost Total Construction Cost
$14,000.00 $14,000.00
(7.0% of purchase price) (7.0% of purchase price)
Net Profit $46,115.00 Debt Service (90 days) $6,158.49
Net Profit $31,056.49

10. Investor/Management Split from Net Profit
Traditional J.V. Leverage J.V.
Net Profit $46,115.00 Net Profit $31,056.49
Investor Split 40% Investor Split 25%
Investor’s Share $18,446.00 Investor Share $7,764.13
Investor’s Cash out of Investor’s Cash out of
$217,000.00 $46,483.49
Pocket Pocket
Investor ROI % 8.50% Investor ROI % 16.70%

11. Investor’s Net Profit on Investment
Traditional J.V. Leverage J.V.
Investor’s Capital Capital secured by
$203,000.00 $185,575.00
secured by real estate management 1st DOT
Investor’s Capital Investors capital
$14,000.00 $46,483.49
unsecured by R.E. secured w/ 2nd DOT
Investor’s Total Investor’s Total
$217,000.00 $200,000.00
Commitment Commitment
Investments per Investor Investments per Investor
1 Approx. 5*
Committed Capital Committed Capital
Potential Investor Profit Potential Investor Profit
$18,446.00 $38,820.64
with Committed Capital with Committed Capital
Cash on cash ROI 8.50% Cash on cash ROI 16.70%
* Up to 5 residential assets. The average ratio in California is 3 to 4 properties to every $200,000 committed.

12. Our California Office
1035 S. Grand Ave 3rd floor, Los Angeles, CA 90015
Residential Headquarters

13. Our Florida Office
14 E Washington Street 6th floor, Orlando, FL 32801
Commercial Headquarters

14. Current Deal Example
Current Commercial Asset
Non Performing Note Purchase Price #1: $4,900,000.00
Current Commercial Asset Value #1: $12,000,000

15. Current Deal Example A

16. Before
Photos

17. Current Deal Example A

18. After
Photos

19. Current Deal Example B

20. Before
Photos

21. PHASE 1 of Asset Analysis (Current Deal Example B)
Our Phase 1 Analysis enables us to take a close look at comps, days on the market, supply vs. demand and much more.

22. PHASE 1 of Asset Analysis (Current Deal Example B)
Our Phase 1 Analysis also enables us to be aggressive with our price reductions while maintaining profitability in the event that the
asset does not move in a timely manner. This systematic approach helps us to eliminate emotion, move the inventory as quickly as
possible and keep the model profitable.

23. Current Deal Example B

24. After
Photos