1. Renovating a Foreclosed Property versus Buying Prime Real-estate Jonathan Lee,Jimmy Luong,Vincent Rodriguez, Bryan Vine Team #5

2. Scenario # 1: Foreclosed Property  4 bedroom  2 bathroom  1,770 ft 2  7800 ft 2 lot size  Land $40,340  $121,290 Improvements  Assessed Total $161,720  Transaction Value $150,000

3. Scenario # 1: Interior/Basic Repairs  New Floor (tile, carpet combined) $8500  New Interior Paint $2000  New Fixtures $3,000  Damaged Walls $1000  Window Repairs $1000  Total (Internal Repairs) $15,500

4. Scenario # 1: External/Extreme Repairs  Roofing $4,000 to $8,000  New Windows $4,000  Landscaping $5,000  Exterior Paint $2,500  Central Heating $4,000  Kitchen Remodeling $10,000  Total (Worse Case) $33,500  Grand Total (Internal + External) $49,000

5. Scenario 1: Purchasing Price Best Case / Worst Case  Assessed Total $161,720 / $161,720  Auction discount -$85,712 / -$30,727 (53% / 19% )  Purchase Price $76,008 / $130,993  Basic Improvements $15,500 / $49,000  Total $81,508 / $179,993

6. Scenario # 2: Premium Property  4 bedroom  2 bathroom  1,787 ft 2  Property Value $359,900

7. Scenario 1 Best: Cash Flows 1 st Mortgage @ 7.5% = -$8,455/year 2 nd Mortgage @ 7.5% = -$1,724/year Rent (4 rooms @ $325) = $18,000/year Appreciation @ 2.5% = $4,043/year Total Cash Flow = $7,820/year Sale Profit at 3 years = $12,129 Sale Profit at 5 years = $20,215 Sale Profit at 30 years = $121,290

8. Scenario 1 Worst: Cash Flows 1 st Mortgage @ 7.5% = -$14,571/year 2 nd Mortgage @ 7.5% = -$5,451/year Rent (4 rooms @ $325) = $18,000/year Appreciation @ 2.5% = $4,043/year Total Cash Flow = -$2,023/year Sale Profit at 3 years = $12,129 Sale Profit at 5 years = $20,215 Sale Profit at 30 years = $121,290

9. Scenario 2: Cash Flows Mortgage @ 5.5% = -$24,522/year Rent (4 rooms @ $325) = $18,000/year Appreciation @ 2.5% = $8,998/year Total Cash Flow = -$6,521.64/year Sale Profit at 3 years = $26,993 Sale Profit at 5 years = $44,988 Sale Profit at 30 years = $269,925

10. Future Value at 3 years Scenario 1 Best Profit:$34,591 ROR:----- Scenario 1 Worst Profit:$6,061 ROR:79% Scenario 2 Profit:$7,428 ROR:34%

11. Future Value at 5 years Scenario 1 Best Profit:$59,318 ROR:----- Scenario 1 Worst Profit:$10,102 ROR:35% Scenario 2 Profit:$12,379 ROR:16%

12. Future Value at 30 years Scenario 1 Best Profit:$508,600 ROR:----- Scenario 1 Worst Profit:$360,951 ROR:17% Scenario 2 Profit:$74,276 ROR:-----