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Based on a number of interviews with top realtors in the local market, the bottom line assessment was “what you see is what you get”. There are no trendy sub-divisions. No access to waterfront. These are homes in tough, urban environments and you will see slight appreciation values, if at all. So the main concern when investing in properties of this type are how are they being acquired. What are the numbers when it comes to the financing of the properties. What are the interest rates of the money used for acquisition? So three important factors to consider are: 1. Money used for acquisition 2. Monies gained from rental or re-sale 3. Initial price point of acquisition Excerpts for research in a specific area in Cleveland, OH

If properties are bought too high then there is less wiggle room for re- sale value and profit. Thus a major consideration in risk vs reward. In these urban areas there is a high reward for rental, especially in a rehabbed property as renters have utilization of funds such as Section 8 to help pay their rent. Section 8 monies from the government are also guaranteed every month as long as the Section 8 requirements are met and the properties qualify for Section 8 funding. I have compiled as much information as possible to help determine the value of the $105, investment. One important factor to remember is that the Annual Yield should be ay a minimum of 15.0 % and the numbers run by the investor show a yield spread of 19.90%. Thus providing a fair amount of cushion for the investor to recoup his funds with appreciable profit.

ZIP CODE OVERVIEW Population26,584 Male / Female Ratio 1 : 1.21 Land Area4.21 sq. miles Population Density 6, / sq. mile Median Gross Rent $471Median Home Value $64300 MARKET SUMMARY – ZIP CODE 44110

Foreclosures341 Homes for Sale61 Recently Sold280  0% ( $50 ) vs May 2012 MEDIAN SALES PRICE $12,400  34% ( $6,519 ) vs May 2012 MEDIAN LIST PRICE $19,950 MEDIAN FORECLOSURE SALES PRICE $9,000  15% ( $1,540 ) vs May 2012

There are currently 341 properties in that are in some stage of foreclosure (default, auction or bank owned). In June, the number of properties that received a foreclosure filing in was 27% lower than the previous month and 35% lower than the same time last year. Home sales for May 2013 were up 23% compared with the previous month, and down 7% compared with a year ago. The median sales price of a non-distressed home was $12,400. The median sales price of a foreclosure home was $9,000, or 27% lower than non-distressed home sales.

2012 Crime Rate Statistics 2012 Crime Rate IndexesCleveland, OH 44110OhioUnited States Total Crime Risk Murder Risk Rape Risk Robbery Risk Assault Risk Burglary Risk Larceny Risk Motor Vehicle Theft Risk

BedBathSqFtLotYear Blt Comparative Fair Market Value Analysis for 7612 Ottawa Ave, Cleveland, OH Based on the properties sold within the last 90 days, which is the best assessment for FMV, the FMV would be the average price point range of $34, The numbers are gathered from the 3 properties sold within 90 – 120 days and matching the subject property description to its closest parameters. AddressDistanceProperty TypeSold priceSold dateBedBathSqft 8104 Dorver Ave, Cleveland OH0.60 miSingle-Family Home$27,6001/17/13411, E 81st St, Cleveland OH0.80 miSingle-Family Home$25,75011/13/12421, Warner Rd, Cleveland OH0.95 miSingle-Family Home$30,50011/19/12311, Rosewood Ave, Cleveland OH1.17 miSingle-Family Home$40,2574/19/13311, Pearse Ave, Newburgh Heights OH1.25 miSingle-Family Home$30,00011/19/12311, Pearse Ave, Newburgh Heights OH1.27 miSingle-Family Home$30,50011/14/12111, Pearse Ave, Newburgh Heights OH1.28 miSingle-Family Home$37,5001/23/13311, Bridgeview Ave, Newburgh Heights OH1.33 miSingle-Family Home$35,00012/21/12421, E 88th St, Garfield Heights OH1.38 miSingle-Family Home$25,7005/13/13311, E 103rd St, Cleveland OH1.54 miSingle-Family Home$36,8002/21/13311,284

BUYER & SELLER SCRIPTS

 Rent to Own Buyer’s Script  Call Script:  For Sale By-Owner  Homes-for-Rent  Home Builders  Advertising Rent-to-Own Interests  Dealing with Real Estate Agents

BUYER & SELLER SCRIPTS  Rent to Own Buyer’s Script  Call Script:  For Sale By-Owner  Homes-for-Rent  Home Builders  Advertising Rent-to-Own Interests  Dealing with Real Estate Agents