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Private Mortgage Investments

High Yield Investments Secured by Real Estate

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Private Mortgage Investments

Kevin PalmerPresident

Palmer Management, LLC

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DisclaimerPlease carefully consider Palmer

Management, LLC's investment objectives, risks, and associated costs or expenses before investing. Real estate investments

are not guaranteed or insured and past performance is not a guarantee of future performance. Please ask questions and

ask for more information before you consider any investment.

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WELCOMEGlad you could be here this afternoon.We have a exciting and profitable program for you to understandPlease feel free to ask questions and participate in the presentationIf you have further questions we can schedule a one-on-one meeting at a later date.

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Agenda Private Investor Program

1st Mortgage Program2nd Mortgage Program

Company OverviewHistoryDream team

Questions

3/20/2009

Agenda Private Investor Program

1st Mortgage Program2nd Mortgage Program

Company OverviewHistoryDream team

Questions

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“More millionaires have created their wealth

through real estate than any other endeavor”

Andrew Carnegie

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Private Investor ProgramOverview

We buy and sell 1 to 5 houses per monthTo fund our deals we generally borrow money from banks at 70% to 80% of value and borrow the balance from private individuals Or we borrow 100% of the purchase price from private individualsWe pay private investors 9% for 1st mortgage money or 12% for 2nd mortgage moneyWe typically use your money for 1-3 years but we can offer shorter terms in some cases

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Private Investor ProgramHow it works

We typically buy Pre-Foreclosure and Bank owned homesWe negotiate to buy a house that is typically 35% to 65% below marketAt closing we borrow from you the private investor to purchase the propertyAt the closing you get a mortgage and insurance as securityWe make payments to you on the scheduled dates

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Private Investor ProgramGuidelines - 1st Mortgage

Program1st Mortgage Program1. $50,000 minimum2. Up to 75% LTV 3. 9% Interest4. Numerous payment options (monthly,

quarterly, ect.)5. 1-3 years (we allow early withdrawal without

any penalties)

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Private Investor ProgramGuidelines - 2nd Mortgage

Program 2nd Mortgage Program1. $5,000 minimum2. 12% Interest3. Numerous payment options (monthly,

quarterly, ect.)4. Up to 95% LTV5. 1-3 years (we allow early withdrawal without

any penalties)

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Private Investor ProgramPayments Options

You get 9% simple interest on your invested capital (12% if you choose the 2nd Mortgage Program)

We can pay you any of the following ways:Monthly (9.0% APR)Quarterly (9.1% APR)Semi-annually (9.2% APR)Annual (9.4% APR)No Payment Accrual Program (11.3% APR)

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$100,000 Investment ExampleOne Year

Yield 12 Month Return

3.7% $3,7009.0% $9,000

This is a 240% increase in return to you the Private Investor

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$100,000 Investment ExampleFive Year

Yield 60 Month Return

3.7% (monthly) $18,5009.0% (accruals for 5 years) $56,568

This is a 310% increase in return to you the Private Investor

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Our Target PropertyAverage Purchase Price $10,000 - $250,000Ramsey or Dakota County Repair Cost $8,000 – $35,000Typically 3 to 5 bedrooms and 1.5 bathsTime to renovate and rent or sell is less that 90 daysHouse will rent for $950 to $1,800 per monthTypical Loan is $100,000 or $750 per monthOur profit is the spread between the rent and your interest paymentRent payment pays the 9% interest.

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People Who Sell Us Houses

Foreclosures (80%)BanksHUDVAFreddieFannie

Private Individuals (15%) Realtors (5%)

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People Who Rent then Buy our HousesWe have Tenant/Buyers who plan to rent for a year or two then purchase the homeMany will become first-time home buyersThey work with our mortgage brokers to eventually purchase our homes in 12 o 24 monthsOur goal is to get people off of the rent rolls and into a home of their own

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How Do We Protect YouThe Investor?

We collect rent from our tenants though careful negotiations or the court actions, if neededWe require a 3% to 10% non-refundable deposit from our tenant/buyers which dramatically reduces non-payment issuesFor monthly rentals we require at least two months security to protect both you and usWe will never default on a loan - We will pay you out of our pocket, if needed

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Three Documents SecuringYour Investment

Promissory Note signed at time of investment by Palmer Management LLC (Personal Guarantees Upon Request) Recorded first or second mortgageCertificate of insurance naming you as additional insured

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Your BIGGEST ConcernProtection of Principle

1st Mortgage Program – we never borrow more 75% Loan-to-ValueWe typically buy 35% to 65% below marketWe then build in equity by rehabbing the property ($8,000 to $35,000)We find quality tenants who give us large up front depositsWe aggressively manage our properties to make sure tenants pay on time and maximize the property value

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Compare Private Lending Versus Hard Money

LendersPrivate Lender Hard Money9% to 12% 15% or HigherOne Point Fee 5 to 10 PointsNo Credit Check Credit Score 600+ 5 Year Term 6 to 12 MonthsNo Back End Fees 2 to 5 Point BackendTotal Cost < 13% Total Cost >25%

This Why We Use Private Lenders Versus Hard Money Lenders

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Appreciation Helps Too!!!!! Price Increase 1995 -2005

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Questions ???

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Can We Accept IRA Money?

We can accept loans form IRA & Roth investments

We Recommend Entrust Midwest or Equity Trust Company as the Third part Administrator

Located in Plymouth, MN and Elyria, Ohio

Allow self directed investments in real estate from both an IRA or ROTH account

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SEC Registration Issues These secured mortgage notes are exempt transactions pursuant to Section 203 (d) of the Minnesota code

No registration is require as long as we stay below 25 investors and only deal with Minnesota residents

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Agenda Private Investor Program

1st Mortgage Program2nd Mortgage Program

Company OverviewHistoryDream team

Questions

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Palmer Management , LLC

A Limited Liability CompanyWe hold properties both short and long term4+ years of experienceManage RentalsCurrently own 6 properties with $ 1.1M in asset value

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Palmer Management, LLCWho Is Kevin Palmer?

2% Years OldEngaged – Jessica RaineySon named Kaleb – 4 YearsLittle Girl on the wayHome – St. Paul, MNA.A.S – Rasmussen College (2002-2005) Business Management - Sales and Marketing 2 Years as a Supervisor at Alexander’s Mobility Services, leading 3-32 men per job.Currently Supervising at Greatland Transportation Systems Inc. A local family owned company.

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Company StoryWe started in April 2006 with the purchase of a SFR in St. Paul, MN. Since that first purchase, we have become serious property investors in Ramsey and Washington county.We have grown to hold over 6 (consisting of 13 units and over 25 acres of land) properties worth over $1.3 millionOur goal is to grow the company to hold and manage about 200 units by providing affordable housing to tenants and 1st time homeowners

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Company Story, continued

The company is a private for-profit Real Estate Investing CompanyWe acquire, rehab, and lease or sell residential and, at times, commercial real estate

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Organization Chart

President

Office Manager

Acquisition Manager

PropertyManager

Sales Manager

Administrative Assistant

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Competitive AdvantageOur competitive advantage is speed to purchase a property and knowledge of creative real estate techniques That speed comes from knowing we have private funds and the ability to pay cash and close quickly We are very focused in a small geographic area and know the values in our market much better than the sellers and, in most, cases than our competition

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How to find usMailing Address: 1911 Suburban Ave Suit 140 St. Paul, MN 55119Web Site: www.palmermgmt.com

www.SellShortPro.comwww.QuickCashClose.com

E-Mail: palmermanagement@gmail.com

Cell Phone: 651-792-6147Office Phone: 651-730-2345Fax 651-294-9276Toll Free: 888-309-5611

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Questions ???

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The Next Step ?By now you know how this program works and how you can earn 9% or 12% starting todaySign up today for a private meetingWe want a chance to answer any questions and appreciate the opportunity to work with you