Tarpon Bay Capital Partners aims to provide investors with safe, risk-adjusted returns of 8-10% by lending to residential real estate investors amidst a post-credit crisis landscape that has limited financing options. The fund targets properties generating significant cash flow, allowing borrowers to afford higher interest rates on loans despite weakened market conditions. Each limited partnership will manage $1-3 million in real estate loans with units priced at $5,000, offering investors complete ownership of the assets.

1. Tarpon Bay Capital
Partners, LP
Providing Capital to Residential Real Estate
Investors

2. Objective
Tarpon Bay Capital Partners seeks to provide
participating investors with safe, risk adjusted
returns of 8-10% and monthly cash flow by
lending money to residential real estate
investors.

3. The Problem
Since the credit crisis, lending for non-owner
occupied single family and small multi-family
real estate has been drastically reduced. Nearly
90% of all new single family housing loans are
conforming mortgages (Fannie, Freddie, FHA).

4. The Problem (cont)
The drop in real estate prices following the
credit crisis created a great opportunity for real
estate investors to purchase single family
homes at deep discounts to pre-crisis levels
while generating yearly rental income returns
>15%.

5. The Problem (cont)
Nearly every subprime mortgage company
ceased operating by 2010. Subprime lenders
provided much of the financing for non-owner
occupied homes prior to 2009. Traditional
lenders only provide conforming mortgages
because they are guaranteed by Fannie Mae,
Freddie Mac and FHA.

6. The Problem (cont)
Real estate investors are forced to pay cash to
buy rental properties because there are limited
permanent financing resources available.

7. Solve the Problem = Opportunity
The houses purchased post credit crisis were
bought at deep discounts to pre-crisis levels.
The rental income is generating yields greater
than 15% for many investors. Because the
homes are generating significant cash flow,
housing investors are capable of paying above
market interest rates to obtain permanent
financing.

8. Opportunity
Rental rates are now rising faster than the price
of homes (HousingWire 10/9/2014). The cash
flow from owning rental properties is increasing.
Increased cash flow means borrowers can
afford to pay higher interest rates on
mortgages.

9. Opportunity (cont)
What does this mean?
A fund providing 1st position loans to real
estate investors can achieve above market
returns with limited risk because of limited
competition, strict underwriting guidelines and
the properties are generating significant cash
flow.

10. Underwriting
*Good Borrowers
*75% loan to value(house=$200k, loan < $150K)
*Debt Service Coverage Ratio of 1.2 or higher
(DSCR = NOI/mortgage payment)
*Stable properties - tenants in place, no rehabs
*Good properties- $75K minimum loan, no slumlords
*5-7 year terms, 20-30 year amortizations

11. Summary
Due to market conditions and lack of
permanent financing available to single family
real estate investors, Tarpon Bay Capital
Partners will achieve significant risk adjusted
returns and generate monthly cash flow for its
participating investors.

12. The Fund
Tarpon Bay Capital is creating limited
partnerships that will own 10-30 real estate
loans. Each limited partnership will be have $1-
3 million in loans. The price of a limited
partnership unit is $5,000. The unit holders own
100% of the partnerships’ assets.

13. Contact information
For additional information or a copy of the
Private Placement Memorandum, please
contact:
Matt Lutz
Tarpon Bay Capital
412-841-5009
mlutz@tarponbaycapital.com