1. Presented by the MogulsPresented by the Moguls

2. The Current Property Physical Description Market Description The Prospected Idea Physical Description Financial Description 3. 150 X 330 4. Location: 734 N. Goddard Road Goddard, Kansas Highway 54 & Goddard Rd. Current Zoning: C2 General Business District Size: 49,050sq. ft. 150 x 330 50 Ft. easements 5. Personal income growth State of Kansas 7.7% growth rate (Q3 2007) Average household income 936 households report income in excess of $100,000 (2006) Job Growth City of Wichita 2.5% growth rate (January 2008) 6. Goddard population growth 1,804 in 1990 2,037 in 2000 3,549 in 2006 2007 bond issue Three new schools in Goddard School district 7. Easy to access Goddard Residents Commuters into Wichita Employed in Goddard Traffic count: US 54 = 23,700 8. Demand exceeds Supply Projected Demand = 236 full time children Current Supply = 186 full time children Quality of care 9. Higher level of success Focus shifting to family Pre-K enrollment up Studies support future success 10. Government support Reduction in Taxable Income SRS Subsidies 11. Child safety in the news Quality of care Safety in question 12. Site Area: 49,050sq. ft. Building Area: 4,000sq. ft. Play Area: 5,400sq. ft. Parking Area: 11,800sq. ft. 13. $/SF Project: GoddardDaycare BuildingSize: 4,000 LandArea 49,050 LandPurchasePrice $159,413 $3.25 Project Costs: Cost Per Square Foot (PSF) LandPurchasePrice $159,413 $39.85 BuildingShellCost $300,000 $75.00 TenantFinishAllowance $110,000 $27.50 Architect/Engineering $9,000 $2.25 Survey $1,500 $0.38 PhaseI $1,250 $0.31 LegalFees $2,500 $0.63 RETaxDuringConstr. $1,051 $0.26 Landscaping/PrivacyFence $15,000 $3.75 Commons(roads,sidewalks,etc.) $37,920 $9.48 Builder'sriskinsurance $1,500 $0.38 LoanCosts $6,833 $1.71 Contingency $15,000 $3.75 ConstructionInterest $16,111 $4.03 Total $ 677,078 $ 169.27 Commons Cost Detail Asphalt $29,500 11,800sqft $2.50sqft Concrete $2,500 500sqft $5sqft Curbing $5,520 460ft $12ft ParkingStriping $400 20 $20per Total Commons $ 37,920 Loan Cost Detail Cost Loanamount 482,813 MortgageRegTax 1,255 Originationfee 4,828 Appraisal 750 Total Loan Cost 6,833 14. Project Details $/SF Project: GoddardDaycare BuildingSize(sf): 4,000 LandArea 49,050 LandUseFactor 12.3 LandPurchasePrice $159,413 $3.25 TenantImprov.Allow. $110,000 $27.50 InterimInterestRate 6.50% LoanAmt 482,813 InterestRate: 6.25% Amort.Period(yrs): 25 DebtServiceCoverageRatio 1.35 Required Rent Dollars $/SF BaseRent $54,000 $13.50 NNN OperatingExpenses $2,500 $0.63 NOI $51,500 $12.88 Annual Debt Service $38,219 $9.55 Net Cash Flow $ 13,281 $ 3.32 Building Value Equity Req't DSCR NOI $51,500 Valueat8%Cap $643,750 $33,328 75%L-V $482,813 $194,266 1.35 15. Property Name GoddardDaycare $677,078 PreparedFor PreparedBy Date Prepared 27-Apr-08 $482,813 $194,266 MortgageData Cost Recovery Data 1stMortgage 2ndMort. Improvements PP Amount 482,813 - Value 517,666 InterestRate 6.25% C.R.Method SL Amort.Period 25Years UsefulLife 39 LoanTerm 25Years InService Jan-09 Payments/Year 12 DateofSale Dec-18 PeriodicPayment 3,184.97 - Ann.DebtService 38,220 - 16. Taxable Income Year: 1 2 3 4 5 6 7 8 9 10 11th Year PotentialRental Income 54,000 54,000 54,000 54,000 54,000 62,100 62,100 62,100 62,100 62,100 71,415 1 -Vacancy&Credit Losses 2 =EffectiveRental Income 54,000 54,000 54,000 54,000 54,000 62,100 62,100 62,100 62,100 62,100 71,415 3 +OtherIncome (collectable) 4 =GrossOperating Income 54,000 54,000 54,000 54,000 54,000 62,100 62,100 62,100 62,100 62,100 71,415 5-OperatingExpenses 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 6 =NETOPERATING INCOME 51,500 51,500 51,500 51,500 51,500 59,600 59,600 59,600 59,600 59,600 68,915 7-Interest-1stMortgage 29,941 29,409 28,842 28,239 27,597 26,914 26,186 25,412 24,589 23,712 8-Interest-2ndMortgage 9-ParticipationPayments 10 -CostRecovery- Improvements 13,273 13,273 13,273 13,273 13,273 13,273 13,273 13,273 13,273 13,273 11 -CostRecovery- PersonalProperty 12 -AmortizationofLoan Fees/Costs 13-LeasingCommissions 14 =RealEstateTaxable Income 8,286 8,818 9,385 9,988 10,630 19,413 20,141 20,915 21,738 22,615 15 TaxLiability(Savings) @36.00% 2,983 3,175 3,379 3,596 3,827 6,989 7,251 7,529 7,826 8,141 17. 16Cash Flow NETOPERATING INCOME(Line7) 51,500 51,500 51,500 51,500 51,500 59,600 59,600 59,600 59,600 59,600 17-AnnualDebtService 38,220 38,220 38,220 38,220 38,220 38,220 38,220 38,220 38,220 38,220 18-ParticipationPayments 19-LeasingCommissions 20-FundedReserves 21 =CASHFLOWBEFORE TAXES 13,280 13,280 13,280 13,280 13,280 21,380 21,380 21,380 21,380 21,380 22 -TaxLiability(Savings) (Line16) 2,983 3,175 3,379 3,596 3,827 6,989 7,251 7,529 7,826 8,141 23 =CASHFLOWAFTER TAXES $10,298 $10,106 $9,902 $9,685 $9,454 $14,392 $14,130 $13,851 $13,555 $13,239 Year: 1 2 3 4 5 6 7 8 9 10 11thYear 18. MortgageBalances Year: 1 2 3 4 5 PrincipalBalance-1stMortgage 474,534 465,723 456,346 446,365 435,743 PrincipalBalance-2ndMortgage TOTALUNPAIDBALANCE $474,534 $465,723 $456,346 $446,365 $435,743 Year: 6 7 8 9 10 PrincipalBalance-1stMortgage 424,437 412,404 399,597 385,966 371,458 PrincipalBalance-2ndMortgage TOTALUNPAIDBALANCE $424,437 $412,404 $399,597 $385,966 $371,458 CalculationofSaleProceeds-Year10 PROJECTEDSALESPRICE $984,500 $918,867 $861,438 7%Cap 7.5%Cap 8%Cap 19. CALCULATIONOFADJUSTEDBASIS: 1BasisatAcquisition $677,078 $677,078 $677,078 2+CapitalAdditions 3-CostRecovery(Depreciation)Taken 132,730 132,730 132,730 4-BasisinPartialSales 5=AdjustedBasisatSale 544,348 544,348 544,348 CALCULATIONOFCAPITALGAINONSALE: 6SalePrice 984,500 918,867 861,438 7-CostsofSale 59,070 55,132 51,686 8-AdjustedBasisatSale(Line5) 544,348 544,348 544,348 9-ParticipationPaymentonSale 10=Gainor(Loss) 381,082 319,386 265,403 11-StraightLineCostRecovery(limitedtogain) 132,730 132,730 132,730 12-SuspendedLosses 13=CapitalGainfromAppreciation 248,352 186,656 132,673 ITEMSTAXEDASORDINARYINCOME: 14UnamortizedLoanFees/Costs(negative) 15+ 16=OrdinaryTaxableIncome CALCULATIONOFSALESPROCEEDSAFTERTAX: 17SalePrice 984,500 918,867 861,438 18-CostofSale 59,070 55,132 51,686 19-ParticipaitonPaymentsonSale 20-MortgageBalance(s) 371,458 371,458 371,458 21+BalanceofFundedReserves 22=SALEPROCEEDSBEFORETAX 553,972 492,277 438,293 23-Tax(Savings):OrdinaryIncomeat36%(Line16) 24-Tax:StraightLineRecaptureat25%(Line11) 33,183 33,183 33,183 25-TaxonCapitalGainsat21%(Line13) 52,775 39,664 28,193 26=SALEPROCEEDSAFTERTAX $468,015 $419,430 $376,918