REOLP Inc. Real Estate Owned Limited Partnerships

© 2008 REOLP Inc. All Rights Reserved. Table of Contents C. Business Factors B. The Market E. Financial Model F. Management Team D. Key Investment Benefits G. The Deal A. The Concept

© 2008 REOLP Inc. All Rights Reserved. A.The Concept 1. Organizer, Manager Investor REO Property REO LLC 2. (a) (a) Lease Property to Home Buyer (b) (b) Provide Option-to-Purchase (c) (c) Include Rent Increases 3. (a) (a) Manage Property (b) (b) Sell Property (c) (c) Distribute Profits

© 2008 REOLP Inc. All Rights Reserved. B.The Market

© 2008 REOLP Inc. All Rights Reserved. Lending Institutions REO Inventory B. The Market Willing Buyers

© 2008 REOLP Inc. All Rights Reserved. REOLP 3. Investment Strategy 1. The Opportunity 2. The Solution 7. Profit Distribution 5. Limited Liability, Low Risk 4. Profit Plan 6. Tax Advantages C.Business Factors

© 2008 REOLP Inc. All Rights Reserved. 3. Investment Strategy 1. The Opportunity Investment in Foreclosures: ► Pre-foreclosures with Short Sales ► Foreclosures at Auctions ► REO Properties ► $300 Billion Market Purchase at 30%, 40%, and 50% Discount 2. The Solution Market Solution For: ► Short-Term Unsold Inventory of Single Family Homes ► Long-Term Trend of Declining Affordability by Consumers 7. Income Distribution 5. Limited Liability, Low Risk 4. Profit Plan 6. Tax Advantages C.Business Factors ► Purchase: REO Single Family Homes ► Location: Dispersed in Northern California ► Age: Newer Homes, Built in ► Size: Min 3br 2ba, Max 4br 3ba ► Price: $250k - $400k after discount ► Discount Goal: 40% - 50% off high Value ► Financing: Qualifies for 75% LTV Mortgage ► Other: Qualifies for 3yr Lease/Option Investment Protection: ► LLP Corporate Format to Limit Liability ► Land-Trust for Each Property to Limit Exposure ► Lower Risk through Professional Management ►Incentive Based Pay Structure for Management Use Of: ► Depreciation Allowance ► Tax-Deferred Component of Profit ► Long-Term Capital Gain Rates ► Annual Allotment from Cash-Flow ► Annual Tax Benefits ► Profit Payment at Disposal Revenue: ► Option-Commitment and Security Deposit ► Annual Increase In Rents Expense: ► Mortgage, Taxes, Insurance ► Minor Maint. & Mgmt Expense Exit: ► Dispose within 3yrs, no Sales Commission ► Re-invest or Distribute Profits & Equity

© 2008 REOLP Inc. All Rights Reserved. D.Key Investment Benefits Positioned for Cash Flow Positioned for Appreciation Low Maintenance Tax Efficient High Return on Investment

© 2008 REOLP Inc. All Rights Reserved. Expenses:  Mortgage, Property Tax  Low Maintenance  Miscellaneous Financing:  25% Down Payment  8% -12% Return to Investor  Leverage 6.75% 30yr Fixed  75% LTV Mortgage  Cash-Flow Reserve E.Financial Model Lease/Purchase Option:  Up to 3yr Lease:  Security Deposit  Commitment Deposit  Rent at Market+  Annual rent increases  Improvement allowance  Fixed Sales Price Buyer Willing Buyers Buyer

© 2008 REOLP Inc. All Rights Reserved. F.Management Team REOLP Launched and Incorporated in 2008 Berkeley, CA Richard Vared Yaron Mayer 25 Years Entrepreneurial Experience: Founder & CEO of PCSNetworks, LoyalCommerce, WritingHub, ThinkingExecutives, and EV-Sales. MS Management/QBM BS Statistics Investor in bay area single- family homes, since Founders 20 Years Bay Area Real Estate Experience: Successfully Invested, re-developed, and managed single-family & multi- family units. 12 Years Corporate Sales and Sales Management Experience. BS Molecular Biology

© 2008 REOLP Inc. All Rights Reserved. The Deal G.The Deal 1. Definition Private Real Estate Partnership Designed to Profit from Investing in Single Family Properties 2. Philosophy  REO Properties  Newer Properties  Northern California  Buyer to Lease/Option  Manage & Leverage 3. Requirements:  Invest $25,000 or more  Accredited Investor  Sign Partnership Agreement 4. Investor’s Profit:  8.0% Min Annual Total-Return  12.0% Probable Annual Total-Return, including Cash-Flow & Appreciation  Plus Tax Benefits Annual Income Available as: Annual Income Available as: Cash-Flow Dividend, or Tax Savings Cash-Flow Dividend, or Tax Savings

© 2008 REOLP Inc. All Rights Reserved. Plus Annual Income-Tax Benefit Min Total 4yr Return: 8.0% Min Annual Rate of Return 8.0% Min Annual Rate of Return $100,000 + $36,060 = $136,060 The Deal G.The Deal: Example $100,000 Investment (Min $25k) Investment (Min $25k) Max Total 4Yr Return: 12.0% Probable Rate of Return 12.0% Probable Rate of Return $100,000 + $57,350 = $157,350

REOLP Inc A Walnut Street Berkeley, CA Corporate: (415) Sales: (510) Contact Information

© 2008 REOLP Inc. All Rights Reserved. Provide market solution at an appropriate time Provide market solution at an appropriate time Each property has upside potential Each property has upside potential Debt structure is at reasonable risk level Debt structure is at reasonable risk level Tax structure is effective Tax structure is effective Profits are paid annually and at exit Profits are paid annually and at exit Includes adequate insurance coverage Includes adequate insurance coverage Management has control over transaction Management has control over transaction H.Summary