Business Proposition

• Based upon our strategy it is reasonable to expect to be able to accumulate a portfolio of multi-family and single family rental properties in South Florida with a cap rate of 20%.

• The expectations of these returns are not dependent on an improvement in the Florida real estate market. They can be achieved by transforming non-performing, distressed properties into performing, reliably cash flowing assets.

• The potential returns discussed assume no leverage.

Executive Summary• Value has been created by price declines to below 50% of replacement

costs

• This decline has created the opportunity to produce capitalization rates of 15% to 25% supported by low-price entry levels and strong, improving rental rates and demand

• We have an implementable accumulation strategy provided by substantial and continuing availability of attractively priced properties.

• Florida real estate has appeal because of its climate, tax structure, land trust law, demographic draw, international buyers and cost of living.

• Our exit strategy is to transform non-performing properties into cash flowing 20% cap rate properties and sell them to investors, individual and institutional at 10% cap rates.

• Florida 360 Realty was formed specifically to support this investment strategy. We manage several hundred units, utilize software to provide 24/7 transparency via dozens of management reports to investors and have 16 real estate agents to rent properties.

VALUE

CAPITALIZATION RATE

• Cap rate = NOI divide by Purchase Price

• NOI = Rental Income – Expenses

• Expenses = 10% management fee, 10% vacancy and credit loss, taxes, insurance and maintenance

• Current Institutional Market Cap Rates are Class A 4.5%, Class B 6%, Class C 7% to 8%

Key to Cap Rate? Ability to Rent at Targeted Levels

• According to CBRE Econometric Advisors, “…Recent declines in homeownership rates are contributing to near-record growth in rental demand”

• Overall multi-housing market fundamentals are continuing to improve. Most multi-housing properties are experiencing higher occupancies and rents which are translating into higher net operating income (NOI)

• Occupancies have increased in Miami-Dade, Broward and Palm Beach counties and are at 96.0%, 95.0%, and 93.8% respectively.

$3 Billion Construction/Work

PROPERTY ACCUMULATION STRATEGY

Single Family

Condominium

Multi-Family

CLIMATE

FLORIDA LAND TRUST LAW PROVIDES: OWNERSHIP PRIVACY:

PURCHASE PRICE PRIVACYSALE PRICE PRIVACYBENEFICIARY PRIVACYPROTECTION FROM JUDGMENTPROTECTION FROM PROBATEPROTECTION FROM LAWSUITSEASE OF PARTNER MANAGEMENTEASE OF NEGOTIATIONIMPROVED FINANCIALSREDUCED SALES EXPENSESEASE OF FRACTIONAL TRANSFERGIFT SIMPLIFICATIONLIABILITY LIMITATIONS

See Attached presentation for details

Boomers* + Immigrants = Demand

22

*See attached study

Cost of Living

Two Distinct Markets to Serve Our Exit Strategy

EXIT STRATEGY

• Having established a dependable cash flow on these properties we will be able to sell them to a second line of investors at substantially lower cap rates.

• If we’ve purchased, renovated and leased a property at a 20% cap rate and sell it at a 10% cap rate we double our money. During the time we hold the property we are earning a 20% return.

We Are NOT In The Predicting Business

PROPERTY MANAGEMENT

Asset Managem

ent

Brokerage Services

Owner Web

Access

PROPERTY MANAGEMANT TOOLS

Auditable Full Disclosure-24/7

Demand Exceeding Supply

Newsmakers

CONCLUSION