1. ITS INVESTOR PORTFOLIOFLOW CHART BUSINESS PLAN CHECKS MEMORANDUM LEGAL DOCUMENTSPNL S FINANCIALSKEY NUMBERSBANK ERRORINVESTMENT BREAKDOWN ITSInternal Tax Service

2. FLOW CHART ITS FLOW CHART ITSInternal Tax Service 3. BUSINESS PLAN ITS FLOW CHART ITSInternal Tax Service 4. ITSInternal Tax ServiceM I S S I ONTo maximize returns for investors through strategic investmentin the Georgia tax deed market.Executive SummaryInternal Tax Service (the Company) is a U.S. based real estate investment rm that is primarily focused on theGeorgia tax deed market, providing investors with a high ROI from the repayment of taxes and penalties through taxdeed sales. Through the cooperation of local county governments, ITS property tax redemption process, andsubsequent ownership and resale of high valued homes at severely discounted prices, the companys versatileapproach will enable an investor the benet of consistent returns and a steady stream of income backed by tangibleassets.When a property owner cannot pay property taxes, the state or county often places a lien on the property for thetaxes owed plus penalties and administrative fees. Investors may then purchase the liens or deeds and receivepayment for that amount plus interest. In the event a property owner still does not repay the back taxes andpenalties, the lien/deed holder may foreclose on the property and gain the title, thereby acquiring property at a costoften well below market value. Internal Tax Service, Inc. entered this market in 2009, purchasing valuable deeds onideal properties through its founders real estate expertise and vision for protable returns.ServicesInternal Tax Service focuses only on the opportunity available in the state of Georgia because of the favorable taxdeed laws there, as well as the states high number of delinquent properties. Georgia is unique in its hybrid modelfor handling delinquent properties where investors can invest in the deed via the bidding process and are allowed tocharge a government enforced penalty. Perhaps the most unique and compelling element to investing in ITS and taxdeeds in Georgia is that the county awards FIRST PRIORITY LIEN POSITION to the company or individual who buysthe deed at auction.That POSITION along with our companys ICR (Inter-Company Redemption) process forces the bank, mortgagecompany or owner to pay us our statutory 20% penalty or lose the property 1 in an accelerated foreclosure process.The owner of the property has to take immediate action and the necessary steps to recover their property rightsback. This allows ITS to have complete leverage on the property and investment strategy.1 Smith, Elizabeth. NuWire Investor. Georgia Tax Deeds. April 2007. Obtained at: http://www.nuwireinvestor.com/articles/georgia-tax-deeds-51021.aspx. 5. Market Analysis SummaryTax deeds are a consistent way for any investor to make a steady return on their money but based on specic marketconditions in Georgia, the Companys management believes the time has never been better to invest in this geographiclocation. The city of Atlanta in particular is attractive to focus on; not only based on the countys internal proceduresbut ITS has also established favorable relationships within the local government and is able to exercise the highest levelof due diligence in the investment screening process.The city is the second fastest growing metropolitan area in the nation, and has experienced particularly explosivegrowth over the last decade, according to the Atlanta Regional Commission (ARC). 2 During the last eight years alonethe city has added 1.1 million people to its population. The following chart from ARC demonstrates the citys rapidgrowth since 1990, and projects future growth through 2040. Growth is clearly expected to continue at rapid paceover the next 30 years. 32 Atlanta Regional Commission 2009. Obtained at: http://www.atlantaregional.com/info-center/arc-region.3 Atlanta Neighborhood Development Partner. Obtained at: http://www.andpi.org/. 6. Strategy and Implementation SummaryInternal Tax Service will perform thorough due diligence on each potential investment, through tax lien research(www.GSCCCA.com) accurate assessments (CMAs) and any potential legal ramications (title searches) therebymitigating investment risks. The Company will place particular emphasis on properties with a mortgage, though willconsider some without. Internal Tax Service will focus on properties that can be sold immediately after purchase.Internal Tax Service has assessed its current competition and can ensure an even greater ROI if provided with anappropriate infusion of capital. The Company realizes that there are several organizations and local investors who willcompete for choice properties and try to nd hidden gems throughout the counties involved. Most of thesecompanies and people have limited resources in both their nances and research efforts. If Internal Tax Service is putin a position of nancial strength at each auction, it will be able to frequently outbid its competition, maintaining alarger property portfolio and providing larger returns to investors. Also, by employing more realtors and a largerresearch staff, the Company can nd, locate, and verify the select properties that will provide large prot margins forminimal cost. By selecting choice properties it will not only allow for greater redemptions but ensure solidinvestments.Investor Distribution and BreakdownITS will offer investors a 10 -12% rate of return on their principal paid out quarterly. We will pay an additional 8-10%on the portion of the principal that result in a foreclosure and sale. The principal will be vested with the company for arequired 18 month period before any attempt at redemption. Your principal will be guaranteed against the propertieswe purchase with those particular funds and agreed upon by both parties in a formal contract (deed to secured debt)before investing. Any and all companies that ITS is associated with in order to make these transactions and returnspossible will be held to the same agreement aforementioned.ConclusionThe Company purchases tax deeds that amount to well below the market value of the property in question, therebyensuring a large return on investment regardless of the means through which the lien/deed is satised. ITS will eitherearn 20% on their investment collecting penalties and interest within 1 to 12 months or sell the properties acquiredthrough quiet title and foreclosure via the Companys real estate brokerage division. This steady ow of revenueassures investors we will be able to pay their guaranteed interest and all agreements and principal are backed bycompany assets and tax deed ownership.Management SummaryTodd Lipton, Director of OperationsMr. Lipton has an extensive background in nance, sales and management. Todd was previously an equities trader withT3Capital, a commodities trader on the oor in New York in the mid 90s and following those positions was anAccount Manager in Sales at TEKsystems. He managed an IT sales delivery team and was responsible for building abase of clients in the nance and communications industries. He now pursues the endeavors of ITS full time.Daniel Lipton, Chief Executive OfcerCurrently, Mr. Lipton trades commodities as well as owns and operates a nightclub that encompasses 40,000 squarefeet and employs more than 120 individuals. Daniel holds nancial series 5, 7, and 63 licenses. Prior to this venture,Mr. Lipton owned and operated a oor trading operation at the New York Board of Trade for 20 years where heoversaw 30 professional traders. He also owns and oversees businesses involving social media, technology and nance. 7. CHECKS ITS FLOW CHART ITSInternal Tax Service 8. MEMOMORANDUM ITS FLOW CHART ITSInternal Tax Service 9. MEMORANDUM RE: United Capital Financial of Atlanta, LLC v. American Inv. Associates, Inc., 302 Ga.App. 400, --- S.E.2d ----, 2010 WL 522690(2010).ISSUE: What is the effect of the captioned case on tax deed investors? BACKGROUND OF CASEThe United Capital case was decided by the Georgia Court of Appeals on February 16, 2010. The issue before the courtwas which party had priority to claim the excess tax sale proceeds remaining after a tax sale.Georgia law states that the excess tax sale funds are rst paid out to any lienholders of the property sold for taxes, andthen to the delinquent taxpayer if there are any funds remaining.Generally, the rst lien led of record gets priority over all other liens led later in time. However, the law makes certainexceptions and gives some later in time liens priority over earlier liens. The most common example is a lien for realestate taxes. In certain situations, Georgia law gives a one paying off a tax deed (called a redemption) lien in the amountpaid to redeem a property that is superior to all other liens, which is commonly referred to as a super lien.STATEMENT OF FACTSAmerican Investment Associates claimed it held a rst priority lien on the property because it held a judgment lienagainst the delinquent taxpayer originally led in 1992.United Capital claimed it held a super-priority lien which was superior to American Investment Associates because itredeemed the tax deed from the original tax deed purchaser.United Capital redeemed the tax deed at issue after taking assignment of assignment of a debt for $71.00 from DynamicRecovery Services, a collection agency, on the day of the tax sale. United Capital did not redeem as a lienholder, and onlyas a creditor, which, until this case was decided, had signicance as to whether a redeeming party obtained a super lienor a standard lien.American Investment Associates challenged the super priority lien claimed by United Capital, and the Court had todecide whether or not United Capital in fact held a super priority lien.O.C.G.A. 48-4-41 deals with redemptions by creditors without a lien. It states that in such a case, the creditor shallhave a claim against the property for the amount advanced by him to redeem the property if, there is any sale of theproperty after the redemption under a judgment in favor of the creditor. It is unknown whether a claim is the same asa lien.In the United Capital case, the creditor without a lien (United Capital) did redeem the property, but it never obtained ajudgment on the debt, and the property was not sold under such judgment. United Capital asserted in the suit that itshould be afforded the super priority lien anyway. The trial court rejected this claim on the grounds that the debt hadnot been reduced to judgment, nor had the property been sold under such judgment. On appeal, the Court of Appealsdecided in favor of the redeeming creditor without a lien in holding that even though it had no judgment on the debt,United Capital obtained a super lien when it redeemed the property as a creditor.The Court focused on the language of O.C.G.A. 48-4-43 which says that a redemption made by any creditor gives it arst lien on the property and in essence ignored the qualifying language of O.C.G.A. 48-4-41 that requires creditorswithout liens to rst have obtained a judgment and also to have sold the property under that judgment. CONCLUSIONThe case gives any creditor who redeems a tax deed a super lien without rst having to satisfy the requirements to rstobtain a judgment and also sell the property under that judgment. The practical effect is two-fold. First, the super liengives the redeeming creditor the right to the excess tax sale funds, such that the only real money the redeeming party isout is the 20% redemption premium. Second, the redeeming creditor has a rst lien on the property, which it canforeclose by judicial foreclosure and wipe out any other liens on the property by banks or other lien holders. 10. LEGAL DOCUMENTS ITS FLOW CHARTITSInternal Tax Service 11. Ga. Code Ann., 48-4-45 Page 1Wests Code of Georgia Annotated Currentness Title 48. Revenue and Taxation (Refs & Annos) Chapter 4. Tax Sales (Refs & Annos) Article 3. Redemption of Property Sold for Taxes (Refs & Annos) 48-4-45. Notice to foreclose right to redeem; time; holders of unrecorded titles, etc.; heirs(a) After 12 months from the date of a tax sale, the purchaser at the sale or his heirs, successors, or assigns may terminate, foreclose, divest, andforever bar the right to redeem the property from the sale by causing a notice or notices of the foreclosure, as provided for in this article:(1) To be served upon all of the following persons who reside in the county in which the property is located:(A) The defendant in the execution under or by virtue of which the sale was held;(B) The occupant, if any, of the property; and(C) All persons having of record in the county in which the land is located any right, title, or interest in, or lien upon the property;(2) To be sent by registered or certified mail or statutory overnight delivery to each of the persons specified in subparagraphs (A), (B), and (C)of paragraph (1) of this subsection who resides outside the county in which the property is located, if the address of that person is reasonablyascertainable; and(3) To be published, if that tax sale occurs on or after July 1, 1989, in the newspaper in which the sheriffs advertisements for the county arepublished in each county in which that property is located, which publication shall occur once a week for four consecutive weeks in the six-month period immediately prior to the week of the redemption deadline date specified in the notice.(b) Nothing contained in this Code section shall be construed to require that any notice be sent to or served upon any person whose right, title,interest in, or lien upon the property does not appear of record in the county in which the land is located.(c) The heirs of any deceased owner of any land entitled to notice pursuant to this Code section shall be served by the sheriff or notified asprovided in this article.CREDIT(S)Laws 1937, p. 491, 2; Laws 1978, p. 309, 2; Laws 1989, p. 1391, 1; Laws 2000, p. 1589, 3.Formerly Code 1933, 91A-434.HISTORICAL AND STATUTORY NOTESThe 2000 amendment provided for use of statutory overnight delivery as an alternative to certified mail.LAW REVIEW AND JOURNAL COMMENTARIESComment: Learning to Live with Jones v. Flowers: A New Wrinkle for an Old Standard. C. Jordan Myers, 57 Emory L.J 463 (2008).LIBRARY REFERENCESTaxation708(4).Westlaw Key Number Search: 371k708(4).C.J.S. Taxation 740, 856.RESEARCH REFERENCESEncyclopediasGa. Jur. Property 35:73, Foreclosure of Right of Redemption; Notice.Ga. Jur. Property 35:75, Ripening of Tax Title by Prescription.Forms9 Brown Georgia Pleading, Prac. & Legal Forms Anno. 48-4-42, Redemption Amount.9 Brown Georgia Pleading, Prac. & Legal Forms Anno. 48-4-21 Form 1, Deed by County.1 Pindars Ga. Real Estate Law & Proc. with Forms 4-48, Tax Sales.1 Pindars Ga. Real Estate Law & Proc. with Forms 4-51, Redemption of Tax Sales. 2010 Thomson Reuters. No Claim to Orig. US Gov. Works. 12. Ga. Code Ann., 48-4-45 Page 2Treatises and Practice AidsGeorgia Real Estate Finance and Foreclosure Law 11-7, The Non-Judicial Procedure: Redemptions.Georgia Real Estate Finance and Foreclosure Law App. A, Statutory Materials.NOTES OF DECISIONSConstruction and application 1Due process 2Failure to foreclose right of redemption 6Failure to provide notice 7Lien holders 7.5Persons entitled to notice 3Publication 5Reasonably ascertainable address 4Review 81. Construction and applicationAfter expiration of the statutory period for redemption, the right to redeem may be barred either by the filing of a notice of barment, or theripening of title pursuant to statute allowing title under tax deed to ripen by prescription. BX Corp. v. Hickory Hill 1185, LLC, 2009, 285 Ga. 5,673 S.E.2d 205. Taxation 3013; Taxation3075Once transferee of purchaser of real property at a sale for delinquent ad valorem taxes gave notice under the barment statutes to all interestedparties that their rights of redemption would expire and be barred as of one year after the tax sale purchase of the property, and all interestedparties elected not to redeem the property within the redemption period, transferee held indefeasible fee simple title to the property. NationalTax Funding, L.P. v. Harpagon Company, LLC., 2003, 277 Ga. 41, 586 S.E.2d 235. Taxation3039The effect of expiration of the redemption period and bar of the right of redemption is to vest the purchaser of real property at a tax lien salewith an absolute and unconditional title to the land, provided such title was owned by the original owner, and the tax sale was valid. NationalTax Funding, L.P. v. Harpagon Company, LLC., 2003, 277 Ga. 41, 586 S.E.2d 235. Taxation 3039After the expiration of the twelve-month period to redeem property following a tax sale, the right to redeem may be barred by notice offoreclosure of the right to redeem or the ripening of title by prescription. O.C.G.A. 48-4-40(1), 48-4-45, 48-4-48. Mark Turner Properties,Inc. v. Evans, 2001, 274 Ga. 547, 554 S.E.2d 492, reconsideration denied. Taxation 3001; Taxation3013One seeking to bar right of redemption based on tax sale purchase must comply with statutory notice requirements. O.C.G.A. 48-4-45.Blizzard v. Moniz, 1999, 271 Ga. 50, 518 S.E.2d 407. Taxation3014Statute setting forth procedure for giving notice of foreclosure of right to redeem following tax sale requires that 12 months elapse before rightto redeem property is foreclosed and before notice of right to foreclose the right shall be served. O.C.G.A. 48-4-45. Wallace v. PresidentStreet, L.P., 1993, 263 Ga. 239, 430 S.E.2d 1. Taxation 30132. Due processRequirement that delinquent taxpayers pay redemption amount of $112,516 to redeem property sold at tax auction to satisfy $2,000 in unpaidtaxes, before they could challenge the tax sale, did not violate delinquent taxpayers right to due process or opportunity to be heard, particularlysince they were not given actual notice of tax sale until after it took place; due process did not require actual notice, rather it required noticereasonably calculated to apprise taxpayers of pendency of the action, and to afford them opportunity to object, and personal service ondelinquent taxpayers satisfied those requirements. Saffo v. Foxworthy, Inc., 2009, 2009 WL 4015606.The statutory allowance of other than actual notice of tax sale of property for unpaid taxes, did not violate delinquent taxpayers due process as-applied by sheriff; taxpayers had actual notice when they met with representative of tax sale purchaser three years prior to barment date, andany remedy for alleged defects in sheriffs implementation of tax sale process would be a suit against the sheriff, and not against the propertysnew owner or its manager. Saffo v. Foxworthy, Inc., 2009, 2009 WL 4015606.Mere published notice of foreclosure of right to redeem property sold at tax sale did not satisfy requirements of due process with respect toowners of security deed who lived outside county in which property was located. O.C.G.A. 48-3-9(a, b), 48-4-40, 48-4-45(a), 48-4-46(b, c);U.S.C.A. Const.Amend. 14. Funderburke v. Kellet, 1988, 257 Ga. 822, 364 S.E.2d 845. Constitutional Law 4148; Taxation3019 3. Persons entitled to noticeOne seeking to bar redemption of property sold for nonpayment of taxes must comply with statutory notice requirements. Washington v.McKibbon Hotel Group, Inc., 2008, 284 Ga. 262, 664 S.E.2d 201, reconsideration denied. Taxation 3013Purchaser of property at tax sale was required to give landowner corporation notice of intent to foreclose owners statutory right of redemption,though corporation had been administratively dissolved; owners corporate status was later reinstated, and this reinstatement related back totime of dissolution. O.G.C.A. 14-2-504(a), 14-2-1422, 48-4-45. H & C Development, Inc. v. Bershader, 2001, 248 Ga.App. 546, 546 S.E.2d907, certiorari denied. Corporations 615.5; Corporations630(.5); Taxation 3016 2010 Thomson Reuters. No Claim to Orig. US Gov. Works. 13. Ga. Code Ann., 48-4-45Page 34. Reasonably ascertainable addressGenuine issue of material fact existed regarding whether landowners new address, which appeared in countys tax records, was reasonablyascertainable, for purposes of sending landowner notice of foreclosure of right to redeem property sold at tax sale, precluding summaryjudgment in landowners action to redeem property. O.C.G.A. 48-4-45(a)(2). H & C Development, Inc. v. Bershader, 2001, 248 Ga.App. 546,546 S.E.2d 907, certiorari denied. Judgment 181(32) 5. PublicationIn determining whether notice of foreclosure of right to redeem property sold at tax sale was published four times in six months precedingweek in which right of redemption would be foreclosed, Supreme Court could take judicial notice that notation 10/12-11/2, which appearedat end of copy of published notice, was one customarily employed in legal advertisements to show dates of publication. O.C.G.A. 24-1-4,48-4-45(a)(3). GE Capital Mortg. Services, Inc. v. Clack, 1999, 271 Ga. 82, 515 S.E.2d 619. Evidence21Record showed that tax sale purchaser met statutory requirements concerning notice of foreclosure of right of redemption, even thoughstatement in purchasers summary judgment affidavit that notice was published as required by law did not establish compliance as factbecause it did not state his personal knowledge that notice was published four times in six months preceding week in which right of redemptionwould be foreclosed, and did not state dates on which notice was published; copy of notice attached to affidavit showed on its face when it waspublished and that notice was published four times during appropriate period, in light of notation 10/12-11/2, which appeared at end ofpublished notice. O.C.G.A. 48-4-45(a)(3). GE Capital Mortg. Services, Inc. v. Clack, 1999, 271 Ga. 82, 515 S.E.2d 619. Judgment185.1(4)6. Failure to foreclose right of redemptionTax deed grantee failed to foreclose the right of redemption by failing to comply with statutory notice requirements. O.C.G.A. 48-4-45.Blizzard v. Moniz, 1999, 271 Ga. 50, 518 S.E.2d 407. Taxation 3014Transferee of security deed to property subsequently purchased by tax deed was entitled to redeem property where purchaser of property by taxdeed failed to foreclose right to redeem. O.C.G.A. 48-4-45. Leathers v. McClain, 1986, 255 Ga. 378, 338 S.E.2d 666. Taxation30087. Failure to provide noticeDefects in following the notice provisions of the tax sale statute may give an injured party a claim for damages, but will not render the tax saleor the deed therefrom void. Saffo v. Foxworthy, Inc., 2009, 2009 WL 4015606.Defects in following the notice provisions of the tax sale statute may give an injured party a claim for damages, but will not render the tax saleor the deed therefrom void. Davis v. Harpagon Co., LLC, 2006, 281 Ga. 250, 637 S.E.2d 1, reconsideration denied. Taxation 3072(4)Validity of tax sale purchasers foreclosure of right of redemption was not affected by purchasers failure to serve notice of foreclosure ondebtor, who was defendant in fi. fa.; creditor had foreclosed upon debtors interest in property prior to issuance of tax fi. fa., and thus, debtorsinterest did not appear of record in county when foreclosure of right of redemption was begun. O.C.G.A. 48-4-45(a)(1)(A), (b). GE CapitalMortg. Services, Inc. v. Clack, 1999, 271 Ga. 82, 515 S.E.2d 619. Taxation3016Former owner of property that was sold to county at tax sale was barred from collaterally attacking validity of countys ownership of property,where he never tendered redemption price and there was nothing in record to indicate that taxes, which formed basis for tax sale, were not dueat time of sale or that county failed to provide proper notice or service of its bar of redemption. O.C.G.A. 48-4-45, 48-4-47. Hill v. Mayor &Aldermen of City of Savannah, 1998, 233 Ga.App. 742, 505 S.E.2d 35, reconsideration denied , certiorari denied. Taxation 3039Property owners were entitled to opportunity to redeem property sold at tax sale, though final redemption date had passed, to extent they hadnot received required 30-day advance notice of bar date. O.C.G.A. 48-4-46. Dixon v. Conway, 1993, 262 Ga. 709, 425 S.E.2d 651. Taxation 3016 7.5. Lien holdersTax deed holder failed to establish by documentary record that he foreclosed all rights of redemption on subject property consistent withstatutory notice requirements, and therefore, purchaser who acquired the interest of a prior tax deed grantee with notice only that tax deedholder held an inchoate or defeasible title was a good faith purchaser for value without notice. Washington v. McKibbon Hotel Group, Inc.,2008, 284 Ga. 262, 664 S.E.2d 201, reconsideration denied. Taxation 3014After transferee of purchaser of real property at a sale for delinquent ad valorem taxes invoked the barment statutes and the one-yearredemption period expired, the taxpayer no longer had any interest in the subject property, and thus, former lien holders tax lien, which coveredonly property in which the taxpayer had an interest was divested from and could no longer be enforced against the property. National TaxFunding, L.P. v. Harpagon Company, LLC., 2003, 277 Ga. 41, 586 S.E.2d 235. Taxation2743; Taxation 30398. ReviewAlthough a trial court must make the initial determination of the legality of notice to landowner of purchasers foreclosure of right to redeemproperty sold at tax sale, appellate courts must independently decide whether under the facts of each case the search for the absentee interestedparty was legally adequate. O.C.G.A. 48-4-45. H & C Development, Inc. v. Bershader, 2001, 248 Ga.App. 546, 546 S.E.2d 907, certioraridenied. Taxation 3050Allegation that party claiming title by adverse possession was not entitled to notice of foreclosure of right to redeem property would not beconsidered on appeal where not raised in trial court in action by party claiming title by adverse possession to recover property. O.C.G.A. 48-4-45. Southerland v. Bradshaw, 1986, 255 Ga. 455, 339 S.E.2d 579. Appeal And Error170(1)Current through Acts 346 through 350 and 353 through 360 of the 2010 Regular SessionEND OF DOCUMENT 2010 Thomson Reuters. No Claim to Orig. US Gov. Works. 14. PNL s ITS FLOW CHART ITSInternal Tax Service 15. 6854 Derby Ave. City, GA 00000 16. 6854 DERBY LEGAL DATEEXPENSE PAYMENTDESCRIPTION BALANCE 5/28/10$1,250.001ST FLAT FEE INSTALLMENT$1,250.00 5/28/10 $1,250.00 1ST FLAT FEE INSTALLMENT$0.00 7/16/10$2,500.002ND FLAT FEE INSTALLMENT$2,500.00 7/22/10 $2,500.00 2ND FLAT FEE INSTALLMENT$0.00 7/23/10 $11.00COURT FILING FEES$11.00FEES FOR CONTESTED ISSUES INCLUDING Many conversations w/ Ayoub and Client; in ofce meeting w/client; research to locate underlyingowners; drafting QCDs for underlyingowner, forming new LLC and numerous conversations w/client re strategy for 7/29/10$750.00 same. $761.00 8/13/10$32.00 COURT FILING FEES $793.00 $4,543.00 DEEDPurchased on County Steps - Taxes 11/3/09$50,000.00 Saitsed were $3,462.21LIEN 5/27/10 $2,415.08 TCFC Cashiers check9/2/10 $5,280.54 Conduit Law Firm Cashiers check TOTAL$62,238.62 COLLECTED 7/16/10 $42,003.05 Overage Collected ????Sale of Home (pending) TOTAL$42,003.05TOTAL NET PROFIT -20235.57Home valued at 95Kon market for 89Klowest offer will be 81K and well use that $81,000.00assumption for our business model$2,430.00 3% commission $78,570.00 Expected NET PROFIT on home 17. 3880 Wolf Creek Circle City, GA 00000 18. WOLF CREEKLEGALDATE EXPENSEPAYMENT DESCRIPTION BALANCE 5/28/10 $1,250.001ST FLAT FEE INSTALLMENT$1,250.00 5/28/10 -$1,250.00 1ST FLAT FEE INSTALLMENT$0.00 6/22/10 $265.50 COURT FILING FEES$265.50 7/16/10 $2,500.002ND FLAT FEE INSTALLMENT$2,500.00 7/22/10 -$2,500.00 2ND FLAT FEE INSTALLMENT$0.00 7/22/10$120.00 PUBLICATION COSTS $385.50 7/26/10$865.00 SERVICE OF PROCESS FEES$1,250.50 8/24/10$1,250.50 $0.00 $4,735.00DEEDPurchased on County Steps - Taxes 12/1/09 $40,000.00 satised were $ 2,452.84 LIEN 5/27/10$1,736.43 TCFC Cashiers checkTOTAL$51,206.43COLLECTED5/4/10 7/16/1036,197.66 Overage Collected 8/12/10 Invoice 55653.63 8/31/10 $53,719.58 Redemption Check From C link (1934.05 short )TOTAL$89,917.24 TOTAL NET PROFIT38710.81 19. FINANCIALS ITS FLOW CHART ITSInternal Tax Service 20. First Fiscal Year In Business (September 2009 - September 2010)Facts$ $$ DescriptionWe collect recycled $ through our ICRprocess. This money is received from thecounty, re-invested and accounts for thedifference between capital vested and cashCash Spent $700,000.00spent Capital VestedYear 1 $586,000.003 Investors (DBL, MSL, DZC) Revenue $53,524.99 9 redemptions $38,710.81 1 Double Dip$58,334.431 SaleTotal Revenue$150,570.23 Expenses$25,000.00 Legal $18,000.00 Liens $10,000.00 Operations $13,000.00 Interest$8,000.00 Start up$3,500.00 Misc. $13,458.25 Losses$9,200.00 Taxes and HOA FeesTotal Expenses$100,158.25 Net Prot50411.98 Second Projected Fiscal Year In Business (October 2010 - October 2011)Facts$ $$ DescriptionWe collect recycled $ through our ICRprocess. This money is received from thecounty, re-invested in ITS and accounts for thedifference between capital vested and cashCash Spent $680,000.00spentTotal Spent 2Years $1,380,000.00 Capital VestedYear 2 $500,000.005 Investors (DBL, MSL, DZC, MH, DB) TotalVested 2Years $1,086,000.00Projected Revenue$98,000.0014 Redemptions $128,000.004 Double Dips $480,000.0010 SalesTotalProjectedRevenue$706,000.00 Expenses$57,000.00 Legal $38,000.00 Liens $14,000.00 Operations $69,000.00 Interest $50,000.00 Salaries$5,000.00 Misc. $21,200.00 Taxes and HOA FeesTotal ProjectedExpenses$254,200.00Net Prot 451800 21. KEY NUMBERS ITS FLOW CHART ITSInternal Tax Service 22. KEY NUMBERSTotal # of Deeds Purchased 38Average Price of Deeds $26,031.77 Average Price of Deeds Since May$35,055.56 Total Cost of Deeds Purchased$859,048.41Total Assessed Value of Property$3,300,900.00 Average Property Assessment$100,027.00If we can buy up to 6 properties a month or put at least200K a month to work; the company will assure itself minimum revenue of at least 40K a month.ITS Internal Tax Service 23. BANK ERROR ITS FLOW CHART ITSInternal Tax Service 24. INVESTMENT BREAKDOWN ITS FLOW CHARTITSInternal Tax Service 25. MINIMUM BIDDATE COMPARABLE PROPERTY ESTIMATED HIGHEST DATE!$ OVERAGE(DELINQUENT REDEMPTION AMOUNTESTIMATED LOWEST RETAIL (* released)MEMO ICR PROCESSOVERAGE PROPERTY PURCHASED WINNING BID AMOUNTANNUAL TAX VALUEPROJECTED VALUEINITIATED COLLECTED RECEIVEDTAX OWEDVALUEOBLIGATION),/#-###0## ,1#-###0## %4(5674%#*"+*%##"#$%!&()%#*+*#$,"-.//0#% ,"-.//0#% ,%-#1.0## ,2-/%"0.% ,3-###0##,"$-###0## ,/3-###0## ;9)*%4(5674%#*"+*%##"2.#!89:: %#*+*#$,2-22.032 ,2-22.032 ,%-#2$0## ,/-##+0/.,%+-###0##,1#-###0## ,31-###0## %4(5674%#*"+*%##112!?)@A:7B)%#*+*#$ ,.3+0#/ ,.3+0#/,%-#/10## ,%-#1%0"1,%+-###0##,%22-###0##,%3$-11#0##E=F1*"3!"#%#/"-##20#1 3*%+*%#+.1/!C)(D4%#*+*#$,2-/+"0"% ,1#-###0##,"-%2$0## ,+#-###0## ,%#1-###0##E=F 1*/*%#2+-%$30++ 3*%+*%# ,+-###0## ,"#-###0## ,2#-###0## ,/#-###0## E=F5%/"+!G@@9D9:9A4 !!XY)(7H)!M(>)(A4!X@@)@@J)@@9D9:9A4ROI % / YEAR PURCHASEDREDEEMEDPURCHASEDREDEEMEDPROFIT,.-###0##,+$-###0##,$#-###0##,%1#-###0## %+#Z %#*+*#$ %*"$*%#12/!V()