What are REOs? REO stands for “Real Estate Owned.” Bank owned properties. Clean title and clear of any liens. Time is of the essence. Window opportunity months. 6/14/2009

Bank Reduce inventory / less reserve pressure Wholesale only Portfolio Buyer Help stabilize market Help rebuild affected communities End Buyer Buy at discounted price More affordable for first time buyers Good investment opportunity Win-Win 6/14/2009

Buy low, direct from clearing house 30%-80% discount Purchase Use local teams Operation Turnkey solution Exit strategy Strategy 6/14/2009

Cash Direct Sale Create notes Sell notes for cash Seller Financing REO Exit Strategy 6/14/2009

California vs. Out-of-State CaliforniaOut-of-State Purchase discount30-40%50-80% LogisticWithin distanceRequires local teams Cash saleNoYes Seller financingYesYes* * Monthly payment is lower than local market rent. 6/14/2009

Process and timeline Establish LLC – Investment vehicle (2 weeks) Capital injectionPurchase portfolio (2 weeks)Exit strategy (3-5 months) 6/14/2009

Using IRA Funds Open a Self–Direct IRA account with American Pension or other passive custodian companies. IRA is an effective investment vehicle, can be used for various asset classes, including real estate. From American Pension a/c, invest through LLC. Return of investment goes back into American Pension a/c. 6/14/2009

Real Case Example 6/14/2009

REO Pictures 6/14/2009

REO Pictures 6/14/2009