1. Fix ‘n Flip…by the numbers Tom Ruff AZREIA May 14, 2012

2. In the beginning… Tracking daily real estate transaction since 1983 Tom Ruff Director or Operations AZ Bidder, LLC

3. “One way to think about it is, the longer a household formation stays down the greater the pent-up demand is, and it's like a rubber band — you keep pulling back on it. At some point, when you let it go, it's going to snap back in a very big way. So that's very likely to happen in the housing market. We can debate exactly when it happens, but happen it will.” - Nariman Behravesh, Chief Economist of forecasting firm, IHS

4. “Before I tell you what I know… …let’s go over what I don’t know” Tom Ruff

5. Methodology o Data set: June 1, 2011 thru March 31, 2012 o Flips are defined as properties purchased and resold in within a 6 month window o Subtleties No cost considerations Wholesale model/Deed considerations

6. “The reports of my death are greatly exaggerated.” ― Mark TwainMark Twain

7. DATEFLIPSNORMALPERCENTAGE Jun-1198310,23610% Jul-119108,61812% Aug-119419,02810% Sep-118198,01310% Oct-117487,44610% Nov-118247,03112% Dec-119627,92712% Jan-127706,49912% Feb-129377,40313% Mar-121,1339,01413% TOTAL9,02781,21511% Short Term Trends Increasing

8. A deal is a deal wherever you find it! SALE TYPECOUNTPERCENTAGE 3RD PARTY AUCTION 5926 66% BANK SALE 962 11% FANNIE MAE 520 6% ACTIVE NOTICE 431 5% SHORT SALE 331 4% NOT CODED 250 3% HUD 233 3% NORMAL SALE 181 2% FREDDIE MAC 170 3% VA 17 0.19% NEW CONSTRUCTION 6 0.07% Speculators Returning

9. Standardized Breakdown SALE TYPECOUNTPERCENTAGE 3RD PARTY AUCTION592665.65 BANK SALE190421.09 SHORT SALE7628.44 NORMAL SALE4354.82 TOTAL9027100

10. Sales - Median Normal Sales$ 70,000$ 113,600$ 43,60059% Short Sales$ 79,900$ 120,000$ 40,10046% Bank Sales$ 68,000$ 109,900$ 41,90053% Third Part Auction$ 107,000$ 145,000$ 38,00039%

11. Sales Average TYPESALEPRICEAPRICEDIFFERENCECOUNT INCREASED VALUE 3RD PARTY AUCTION $ 130,173 $ 171,871 $ 41,698592639% BANK SALE $ 84,211 $ 123,767 $ 39,556190455% NORMAL SALE $ 110,275 $ 153,920 $ 43,64543559% SHORT SALE $ 106,633 $ 147,517 $ 40,88476246%

12. Flipper’s Target

13. o Flippers like a sure thing o Over the last 10 months, “9027 Flips” have accounted for 11.11% of all sales o 98% have had a positive return o They know their market o Time

14. Time TYPECOUNTTIME 3RD PARTY AUCTION592666 BANK SALE190490 NORMAL SALE43569 SHORT SALE76278

15. Range RANGECOUNT PERCENT AGE RUNNING TOTPROFITRATIOTIME 500002000.1765 2392176%60 1000004120.36360.54013855753%79 1500002430.21450.75464106734%74 2000001280.1130.86766027335%84 250000610.05380.92146414328%88 250001+890.078619112324%81 TOTAL1133114447247%76 RANGECOUNTPERCENTAGE RUNNING TOTALDIFFERENCE INCREASED VALUETIME $ 50,00020018% $ 23,921.0076%60 $ 100,00041236%54%$ 38,557.0053%79 $ 150,00024321%75%$ 41,067.0034%74 $ 200,00012811%87%$ 60,273.0035%84 $ 250,000615%92%$ 64,143.0028%88 $ 250,001+898%100%$ 91,123.0024%81 TOTAL1133100% $44,472.0047%76

16. Tidbits: o Purchases 93% cash or hard money o On the flip side 65% are financed o The median price paid at auction by flippers is $10,000 higher than the median price of all homes purchased at auction, $107,000 compared to $97,000 o April flips were 13% of the normal market o Prices continue to move up in May

17. Ancient History NormalShortBank3rd Party Auctions 10 Months30 Days10 Months30 Days10 Months30 Days10 Months30 Days Average $ 43,645$ 47,627$ 40,884$ 43,887$ 39,556$43,845$ 41,698$ 44,402 Increased Value 59%69%46%52%55%60%39%40%

18. Single Family Residence Recorded 5/10/2012 TYPE INCREASED VALUE PURCHASE Price SOLD Price ASSESSED Value DAYSZIP LOT SQFT POOLSQ_FT YEAR BUILT NORMAL SALE $ 56,000$ 129,000$ 185,000$ 119,200 49850236550Y16371997 3RD PARTY AUCTION $ 72,400$ 47,500$ 119,900$ 32,100 71850357728N18121971 SHORT SALE $ 59,000$ 53,000$ 112,000$ 49,000 34850376508N14551993 SHORT SALE $104,900$ 225,000$ 329,900$ 203,000 104850506985Y18341996 3RD PARTY AUCTION $ 91,000$ 44,000$ 135,000$ 59,100 87852047745N12241970 3RD PARTY AUCTION $ 59,500$ 97,500$ 157,000$ 99,600 86852058481N16431988 NORMAL SALE $ 80,000$ 75,000$ 155,000$ 87,500 91852108538N12441976 SHORT SALE $ 57,250$ 105,000$ 162,250$1 09,700 113852247701Y19731971 BANK SALE $ 67,201$ 109,699$ 176,900$ 122,800 48852348512Y17071993 NORMAL SALE $ 84,000$ 155,000$ 239,000$ 162,600 658525410676N17851969 BANK SALE $ 81,750$ 56,500$ 138,250$ 76,800 101853089506N13851974 3RD PARTY AUCTION $ 57,450$ 192,500$249,950$155,200 56853408627N39062002

19. Recorded 5/10/2012 13026 W ALEGRE DR LITCHFIELD PARK, AZ 85340 Purchase Price: $192,500 Sold Price: $249,950 Spread: $57,450 3 rd Party Auction : 56 Days on Market 4419 E JAEGER PHOENIX AZ 85050 Purchase Price: $225,000 Sold Price: $329,900 Spread: $104,900 Short Sale: 104 Days on Market 6507 E ENCANTO ST Purchase Price: $ 97500 Sold Price: $ 157,000 Spread: $59,500 3 rd Party Auction: 56 Days on

20. “A deal is a deal is a damn deal.” - Tom Ruff Thank you!