1. Best Solutions for…

2. Managing Expectations and Delivering Challenging Information

3. PANELISTS: Mark Petersen President, Behringer Securities Darryl Steinhause Partner/Legal Counsel, DLA Piper Ray Sun President, SunCoast Realty Due Diligence, SANDLAPPER Securities MODERATOR: Brandon Balkman Chief Marketing Officer, Keystone National Group

4. Survey Respondents (chose all that apply)

5. Combining low risk with high returns, what programs do you favor? Average Ranking BDCs 11.78 Credit Markets/Receivables 10.89 NT REITs 10.78 Real Estate Funds 10.67 1031 Exchange (TIC/DST) 10.11 Hedge Funds 9.89 Equipment Finance/Leasing 9.78 Oil & Gas 9.78 Alternative Energy 9.22 Secondary Market Opportunities (NT REITS/Funds) 8.89 Private Equity 8.38 Note Programs 7.67 Managed Futures 7.56 Life Settlements 7.50 Other 3.25

6. Best Solutions for… Managing Expectations and Delivering Challenging Information

7. Past challenges originated from:

8. Causes of challenges? Average Ranking Erratic market movements/Economy 13.33 Original structure 11.44 Leverage 11.44 Investment underwriting 11.33 Management 9.43 Property/Assets 9.33 Loan 9.22 Inadequate accounting/valuation 9.00 Sponsor’s lack of capital 8.56 Sponsor reporting 8.00 Fraud 6.80 Investors lack of funds for capital call 4.89 Change in accreditation of investor(s) 4.11 Rep/Adviser performance 3.78

9. Sponsor have helped by: Frequent and transparent reporting w/ reps and clients. Negotiated complex workouts and loan modifications. Listed asset to give liquidity. Frequent conference calls with CEO of company.

10. What would tempt you to do business again? Nothing! Depends upon how they handled the situation. A very well fleshed out idea. A Smoking Deal.

11. Best way to manage challenges: Average Ranking Open and frequent communication 4.88 Be upfront and honest 4.50 Other (Due Diligence) 3.78 Allow people to ask questions (investor forums) 3.75 Reps play an active role to help 3.38

12. Managing Expectations: Promise only what you can deliver Deliver what you promise Meet deadlines Display thoroughness

13. Q&A

14. Crystal ball: Next blow up in the alternative space will be caused by what? Sponsors that cut corners to profit themselves. Too much capital chasing opportunity. Non real estate alternatives. Products not thoroughly underwritten. Government change in regulations.

15. #1: Communicate! (1 x month for bad news, 1 x three months for good news) #2: Don’t ignore the client Top Two Best Solutions to -Manage Expectations -Deliver Challenging Information

16. PANELISTS: Mark Petersen President, Behringer Securities Darryl Steinhause Partner/Legal Counsel, DLA Piper Ray Sun President, SunCoast Realty Due Diligence, SANDLAPPER Securities MODERATOR: Brandon Balkman Chief Marketing Officer, Keystone National Group email: brandon@balkman.com