REAL ESTATE INVESTMENT RESEARCH REPORT

100% Financing
Gated Resort Community
Buy with NO Money Invested
Includes 3 Years of Payments
Georgia Mountain Community (near Chattanooga, TN)
Equity and Appreciation

One of seven beautiful lakes.

(800) 611-3060
www.NoradaRealEstate.com
Your Premier Source For Real Estate Investments
INVESTMENT SNAPSHO
SNAPSHOT
Norada Real Estate Investments is proud
to introduce you to our latest real estate
investment opportunity.

This is a limited opportunity located in the

north Georgia mountain community near
Chattanooga, Tennessee.

The community was recently featured by

The Travel Channel as “America’s
America’s Best
Affordable Second Home and Real Estate
Investment Destination”” on their “America’s
Best Places to Live” series.

The Preserve at Rising Fawn is a 3,000 acre gated community with home sites ranging
from 1 to 10 acres. It is located only 30 minutes from Chattanooga, TN, 120 minutes
from the major cities of Nashville, TN, Knoxville, TN and Atlanta, GA. The Chattanooga,
Chattan
TN area has been called the “Gem of the South” by The Wall Street Journal,
Journal and has
also been ranked as one of the top travel destination locations by magazines such as
Southern Living and Family Fun
Fun.

This unique investment can be purchased with 100% financing, 3 years of

payments in escrow, and a S
Sell Option to the developer.

Individual
idual lot prices range from $125
$125,000 to $275,000. We are currently holding a
limited number of lots that have just been released to the public for sale.

n the limited number of newly released lots located in The Preserve at

Don’t miss out on
Rising Fawn in the North Georgia Mountains.

FAST FACTS
Investment Strategy: 2 to 3 Year Hold 100% financing – no payments for 3 years!
Location: Georgia Mountains NO deposit money required.
required
Property Type: Buildable Home Site Buyback (Sell) Option with the developer.
Transaction Type: Pre-Development
Development Strong economic conditions and growth.
Market Value: $160,000
0,000 and up Multiple exit strategies.
Purchase Price: $125,000
25,000 and up Buy using your IRA or 1031 exchange.
Instant Equity: 25% Average Equity Beautiful 3,000
,000 acre gated community.
community
Cash Flow: N/A Purchase at pre-development
development pricing.
Capitalization Rate: N/A Quantities are limited. Rese
eserve today!

(800) 611-3060
.
FINANCIAL SUMMARY
The Preserve at Rising Fawn, Georgia - Home Site Lots
0% net down payment example (15% down-payment at close with full reimbursment after close).

Purchase Basics Assumptions for Calculations (Annual)

Property Type Lot (Home Site) Gross Rental Income (Monthly) $0
Appraised Value (A) $ 210,000 Additional Monthly Income (if any) $0
Investor Purchase Price (B) $ 175,000
Down Payment by Investor 0% 1st Mortgage Loan Type 30 yr fixed
Buyer Credits / Rebates $ 52,500 2nd Mortgage Loan Type 3 yr balloon
Purchase Price % of Appraised Value 83% 1st Mortgage Interest Rate 8.50%
Notes: 2nd Mortgage Interest Rate 0.00%
1st Mortgage Principal Amount $ 148,750
Income Calculations Per Month 1st Year 5th Year 2nd Mortgage Principal Amount $ 14,651
Rental Income $0 $0 $0 Private Mortgage Insurance $0
Additional Income [if any] $0 $0 $0
Approx. Operating Income (C) $0 $0 $0 Property Taxes $0
Insurance $0
Expense Calculations Per Month 1st Year 5th Year Property Owners Association $0
Property Taxes $0 $0 $0 Water/Sewer/Trash $0
Insurance $0 $0 $0 Lawn Care $0
Property Owners Association $0 $0 $0 Property Management Fee 0.0%
Water/Sewer/Trash $0 $0 $0 Maintenance Reserve 0.0%
Lawn Care $0 $0 $0 Other 0.0%
Property Management Fee $0 $0 $0
Operating Expenses (D) $0 $0 $0 Living Square Footage 0
Total Square Footage w/ Garage 0
Mortgage Calculations Per Month 1st Year 5th Year
1st Mortgage Payment ($ 1,188) ($ 13,070) $0 Appreciation Rate 5.0%
2nd Mortgage Payment $0 $0 $0 Vacancy Rate 3.0%
Private Mortgage Insurance $0 $0 $0 Rental Income Increase 2.5%
Mortgage Payments (E) ($ 1,188) ($ 13,070) $0 Property Tax Increase 1.0%
Insurance Increase 1.0%
Cash Flow Assumptions Per Month 1st Year 5th Year Property Association Increase 2.0%
Net Operating Income (C - D) $0 $0 $0 Water/Sewer/Trash Increase 2.0%
Mortgage Payments (E) ($ 1,188) ($ 13,070) $0 Lawn Care Increase 2.0%
Pre-Tax Cash Flow ($ 1,188) ($ 13,070) $0 Closing Costs 3.0%

Financial Performance 1st Year 3rd Year NOTES:

Capitalization (Cap) Rate 0.0% 0.0% 1. This pro-forma illustrates a 3 year buy-and-hold
Gross Rent Multiplier (Annual) N/A N/A strategy with a sale at the end of year three.
Rent to Purchase Price Ratio N/A N/A 2. You are free to build and/or hold longer term if
Rent per Sq Ft N/A N/A the "numbers" make financial sense.
Equity (Wealth) % (A - B) 37.5% 33.8% 3. Out-of-pocket cash after close is $0.
Equity (Wealth) $ (A - B) $ 82,777 $ 82,198
v 5.1 Updated: 8.04.08
CASH FLOW and EQUITY ACCUMULATION
The Preserve at Rising Fawn, Georgia - Home Site Lots
0% net down payment example (15% down-payment at close with full reimbursment after close).

CASH-FLOW YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 9 YEAR 10 YEAR 15 YEAR 20
Gross Rental Income $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Monthly Income (if any) $13,070 $13,725 $13,725 $0 $0 $0 $0 $0 $0
Vacancy Allowance $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Income $13,070 $13,725 $13,725 $0 $0 $0 $0 $0 $0

Property Taxes $0 $0 $0 $0 $0 $0 $0 $0 $0
Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0
Property Owner Association $0 $0 $0 $0 $0 $0 $0 $0 $0
Water/Sewer/Trash $0 $0 $0 $0 $0 $0 $0 $0 $0
Lawn Care $0 $0 $0 $0 $0 $0 $0 $0 $0
Property Management $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0
$0
1st Mortgage Payment ($13,070) ($13,725) ($13,725) $0 $0 ($13,725) $0 $0 $0
2nd Mortgage Payment $0 $0 $0 $0 $0 $0 $0 $0
Private Mortgage Insurance $0 $0 $0 $0 $0 $0 $0 $0
Total Debt Service ($13,070) ($13,725) ($13,725) $0 $0 $0 $0 $0

BEFORE-TAX CASH FLOW $0 ($0) ($0) $0 $0 #DIV/0! $0 $0 $0

Monthly $0 ($0) ($0) $0 $0 #DIV/0! $0 $0 $0
Value of negative operating cash flows#DIV/0! 0 0 0 0 0 - 0 0 0
1 2 3 4 5 10 15 20
Depreciation $0 $0 $0 $0 $0 $5,091 $0 $0 $0
1st Mortgage Interest $12,222 $11,801 $11,379 $0 $0 $8,851 $0 $0 $0
2nd Mortgage Interest $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $12,222 $11,801 $11,379 $0 $0 $13,942 $0 $0 $0
Taxable Income $848 $1,924 $2,346 $0 $0 ($13,942) $0 $0 $0
Tax Bracket Savings 36% $0 $0 $0 $0 $0 $5,019 $0 $0 $0
AFTER-TAX CASH FLOW $0 ($0) ($0) $0 $0 #DIV/0! $0 $0 $0
Monthly $0 ($0) ($0) $0 $0 #DIV/0! $0 $0 $0

EQUITY ACCUMULATION YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 9 YEAR 10 YEAR 15 YEAR 20
Property Value $220,500 $231,525 $243,101 $0 $0 $0 $0 $0 $0
minus 1st Mortgage Balance $147,903 $145,978 $143,633 $0 $0 ($16,969) $0 $0 $0
minus 2nd Mortgage Balance $14,651 $14,651 $14,651 $0 $0 $14,163 $0 $0 $0
plus Reserve Account Balance $24,830 $11,105 ($2,620) $0 $0 $0 $0 $0 $0
EQUITY (WEALTH) $82,777 $82,001 $82,198 $0 $0 $0 $0 $0 $0

Capitalization (Cap) Rate 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Internal Rate of Return (IRR) 0% 0% 0% 0% 0% 0% 0% 0% 0%
Return on Investment (ROI) Infinite Infinite Infinite - - - - - -

* See detailed assumptions and purchase parameters on the Financial Summary page.
ECONOMIC CONDITIONS
The following are key micro-economic factors considered on this real estate investment:

Unemployment Rate Trend

This chart shows the unemployment trend within a neighborhood. The unemployment rate is an important
driver behind the housing market. Low and declining unemployment characterize a strong economy.

Median Sales Price Trend

This chart shows the median sales price trend over time. An upward trend combined with low
unemployment is a good buy signal.

Employment and Price Trend

This chart shows the relationship between employment numbers and home prices within a neighborhood.
Employment is a good measure of the strength of the local economy. Generally speaking, the better the
job market, the better the chances of rising home prices.

(800) 611-3060
Building Permits Trend
This chart shows building permits for single- and multi-family homes issued within a neighborhood.
Issued permits are a good indicator of future construction and an important signal of how homebuilders
see housing market strength in the area.

Buy / Sell Trend Trend

The farther the trend line is located from the center line, the stronger the “buyer’s” or “seller’s” market is.

BUY

Future Job Growth Trend

The projected change in job availability over the next ten (10) years
based on migration patterns, economic growth, and other factors:
Metropolitan Area/County = 18.5% Chattanooga = 27.3% to 29.4%

Appreciation Forecast Trend

Chattanooga area forecast over next 12 months (1 year): 2.91%

Chattanooga area forecast over next 24 months (2 year): 6.38%
Chattanooga area forecast over next 36 months (3 year): 10.22%
(Forecast confidence score = 81.02%)

DealGrader™ Score
The DealGrader™ Score measures the investment quality of a real estate investment. It is
designed to give you an overall snapshot of the profitability and investment risk in the form of
an easy to understand score (out of 10).
DealGrader™ is a proprietary algorithm that uses a blend of over 15 different variables
including cash-flow, existing equity, internal rates of return (IRR), job growth, market stability,
market absorption, macro economic factors, and others.

(800) 611-3060
PURCHASE & SALE STRATEGY
HIGHLIGHTS

• 100% Financing
• 3 Years of Payments in Escrow
• Sell Option with the Developer

STRATEGY OVERVIEW

• Buy – with NO money invested.

• Hold – while value is being created – no carrying costs (2.5 - 3 years).
• Sell – keep your profits or reinvest your profits.

PURCHASE STRATEGY (Example using Sell Option)

STEP 1
• Client purchases the Lot for $175,000.
• Client closes with an 85% LTV Loan ($148,750).
• Client brings 15% “temporary” down payment to closing ($26,250).
o There is approximately $3,000 in closing costs (= $29,250 total).

STEP 2
• Client sells Option to developer for $52,500 and takes a second loan from
developer for $14,651.
• Client receives $26,250 + approximately $3,000 from the developer to reimburse
the “temporary” down payment and closing costs.
• Developer deposits $37,900 in a third party escrow account in name of Client.

EXIT STRATEGY

1. Developer buys lot back using their Option Agreement (at developer’s choice).
2. Sell through developer’s dedicated retail sales people.
(Atlanta, Miami, Orlando, Washington DC, Tampa, Chattanooga, Birmingham)
3. Build a second home after 3 years (vacation rental or vacation home).
4. Build a second home now (vacation rental or vacation home).
5. Build a vacation rental and join rental pool.
6. Sell through outside real estate brokerages.
7. Retirement – primary residence.

(800) 611-3060
POSSIBLE EQUITY POSITION
Estimates assume 5% annual appreciation.

Year 2 Year 3

Property Value $192,937 $202,584

1st Mortgage Balance $148,750 $148,750
2nd Mortgage Balance $ 14,652 $ 14,652

Equity $29,535 $39,182

Escrow Balance $12,634 $0

Total: $42,169 $39,182

Zero Money Down ROI = Infinite!

(800) 611-3060
CHATTANOOGA, TENNESSEE
Historic Chattanooga widely recognized, as one of
the best midsize cities is only minutes away and
perfect for shopping, dining and cultural
opportunities. Chattanooga was named one of the
Top 11 Southern Retirement Towns in the
February/March 2007 issue of Retirement
Lifestyles, a ten-year-old magazine that highlights
locations, communities and lifestyles for
prospective retirees across the U.S. "Our editorial
staff was impressed by the moderate cost of living,
great year-around climate, great outdoor
recreational opportunities, strong healthcare, resurgent riverfront and downtown
festivals," said Retirement Lifestyles Publisher Dan Owens. "Our team definitely felt that
Chattanooga has a lot to offer relocating retirees from other states."

"As baby boomers age, there will be an increasing interest in finding unspoiled smaller
communities with great natural assets and a good quality of life,” Owens said. “We feel
that Chattanooga has a great opportunity to prosper as a retirement destination," the
publisher said.

The Chattanooga area is a Mecca for outdoors enthusiasts who enjoy scenic vistas.
Additionally, the many attractions located in the area include Lookout Mountain, Ruby
Falls, Rock City and Nickajack Lake. Chattanooga is home to the world’s largest
freshwater aquarium and more than a half million people from all over the world
visit Lookout Mountain each year.

The Wall Street Journal and New York Times have identified
Chattanooga as a “powerful, new emerging market.”

NORTH GEORGIA MOUNTAINS

Atlanta residents are forgetting cities like Ft. Lauderdale or Naples and replacing them
with north Georgia Mountain retreats. They are starting to view Florida more as a
vacation and the mountains as a place to relax. Floridians tired of high taxes and
insurance and a continued concern for hurricanes are moving to north Georgia in record
numbers. Homes in Florida that are costing $12,000 in annual taxes will cost only
$1,800 in the Georgia Mountains.

(800) 611-3060
According to The Georgia Trend magazine, this area is becoming a haven for second
homebuyers, thanks to the low cost of living and beautiful geography. Second home
sales are being spurred by the wealth transition from aging parents to their baby
boomer young, new and more favorable tax laws, rapid increases in property values,
and jittery stock market investors seeking more stable environments for their cash. In an
April, 2006 article, USA TODAY stated “Americans snapping up second homes, as
investments or vacation properties, accounted for four out of every ten sales of existing
homes last year.”

THE PRESERVE AT RISING FAWN

The Preserve at Rising Fawn is a 3,000 acre gated community located on Lookout
Mountain in north Georgia. A short drive away is Southern Bluff and Southern Trace.
Southern Bluff is approximately 250 acres featuring beautiful bluff views. Southern
Trace is the golf course community including approximately 265 acres. Both of these
communities are associated with The Preserve.

The Preserve will feature amenities to include unlimited golf at a private club; an indoor
equestrian facility; horse stables and horseback riding; a community clubhouse,
including a swimming pool and fitness center; tennis courts; a playground; twenty-two
miles of hiking and walking trails; seven lakes for fishing and paddle boat fun; along with
unbelievable long range views. Homeowners will have access to all amenities
regardless of where they reside.

The developer has already begun building the roads and many of the amenities. The
current plan calls for total completion of the roads and amenities by May, 2009. The golf
course is scheduled to be ready in one year. Some of the amenities including horseback
riding, hiking trails and fishing are ready now.

Located on the southern end of Lookout Mountain, The Preserve at Rising Fawn is
easily accessible in just under two hours from Atlanta, Birmingham, Nashville and
Knoxville. Retail stores, restaurants and gas stations are located just ten minutes away.

THE OPPORTUNITY

Norada Real Estate investors can purchase 1 to 7 acre lots at pre-development pricing,
direct from the developer, with up to a 30% discount, 100% financing and 3 years of
payments in escrow with the developer. The appraised price of these tracts today is in
the $165,000 - $250,000 range.

Investors may also consider funding their purchase through a 1031 Tax Exchange or
Self-Directed IRA.

(800) 611-3060
COMMUNITY FEATURES
• Spa
• Organic Restaurant featuring items from The Preserve
• Seven Professionally Maintained Ponds
• Equestrian Facilities Including Stables and Horses
• Indoor Riding Arena With 64 Stalls
• Meeting Room and Party Room
• Golf Carts
• Miles of Walking And Riding Trails
• Fitness Center, Tennis Courts, and Game Room
• Swimming Pool
• Playground
• Unlimited Access to Golf Course (Green Fees Covered In HOA)
• Gated Entry
• 30 Minutes From Lake Nickajack and TN River
• Paved Roads, City Water, and Underground Utilities On Each Lot
• Trails for walking, hiking, biking and horseback riding
• Professionally managed and stocked lakes
• 53,000 sq. ft. Equestrian Center with indoor arena and 64 stalls
• On-site horse trainer with clinics
• 18-Hole Golf Course (off-site) - Southern Trace Golf Club membership
• 400+ acres of preserved green space

COMING SOON

• Swimming pool and outdoor hot tubs (January 2009)

• Fitness center and lighted tennis courts (January 2009)
• Clubhouse and game room (January 2009)
• Pergola area with outdoor cooking space (January 2009)
• Playground area (January 2009)
• Destination Spa (Early 2010)
• Conference Center (Early 2010)
• Restaurant (Early 2010)

(800) 611-3060
LOCATION

• Only 5 minutes to Highway

• Chattanooga, TN is 30 minutes

• Nashville, TN is 120 minutes

• Knoxville, TN is 120 minutes

• Huntsville, AL is 90 minutes

• Birmingham, AL is 90 minutes

• Atlanta, GA is 120 minutes

• Miami, Tampa, and Orlando, FL is 90 minutes (flight ~ $60)

(800) 611-3060
COMMUNITY MAP
The Preserve at Rising Fawn is a 3,000 acre gated community with home sites from 1
to 10 acres and are priced from the high 100’s to mid-$200’s. The Preserve, nestled in
Lookout Mountain, is located only 30 miles from downtown Chattanooga, fine dining,
entertainment and shopping. Additional local amenities include Cloudmont family ski
resort, and the Tennessee River.

Norada Real Estate investors can purchase 1 to 7 acre lots at pre-development pricing,
direct from the developer, with up to a 30% discount, 100% financing and 3 years of
payments in escrow with the developer. The appraised price of these tracts today is in
the $165,000 - $250,000 range.

Investors may also consider funding their purchase through a 1031 Tax Exchange or
Self-Directed IRA.

(800) 611-3060
PHOTOS

Front entrance gate under construction summer 2007 Front entrance gate completed fall 2007

One of seven beautiful lakes. Another one of seven beautiful lakes.

New log home under construction. Distant view of neighbor barns.

(800) 611-3060
RESERVING A PROPERTY
Fax or mail the Reservation Form attached. NO DEPOSIT REQUIRED!

Phone: (800) 611-3060

Fax: (866) 611-3060

Email: Deals@NoradaRealEstate.com

Reservation does not guarantee final unit selection which is subject to availability at time of pre-approval.

FLY & BUY REBATE!

For those investors interested in flying down to visit the project site and “kick the tires”, we
are offering you a Fly-and-Buy rebate of up to $1,000 to help cover the cost of your flight and
accommodations for your trip. Your rebate will be paid by check upon close of escrow.
This incentive is offered to you exclusively by Norada Real Estate Investments!

DISCLAIMER NOTICE
The materials and information contained in this document are provided on an “AS IS” basis and “AS AVAILABLE”
basis, without representations or warranties of any kind. Norada Real Estate expressly disclaims any and all such
representations and warranties, either expressed or implied, including without limitation warranties of title, non-
infringement, or implied warranties of merchantability or fitness for a particular purpose. Norada Real Estate does not
warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these
materials. Norada Real Estate may make changes to this material at any time without notice. While Norada Real
Estate strives to keep the information in these materials accurate and current, Norada Real Estate cannot guarantee
the accuracy, completeness or timeliness of the information. Information within these materials may contain technical
inaccuracies or typographical errors. Norada Real Estate reserves the right to make changes, corrections and/or
improvements to the information contained within these materials at any time, without notice. This is not an offering
for securities.

We are in a market with rapidly changing interest rates. A steady rise in interest rates could alter your cash flow. As
with any large purchase, it is highly recommended that you perform your own due diligence. There are no guarantees
made and your returns could be higher, lower, or you could lose money. The length of time to build your property can
vary depending on weather, city inspections, etc.

The California Department of Real Estate has not inspected, examined, or qualified this offering.

(800) 611-3060
 Revised: April 1, 2008

Reservation / Pre-Approval Form

The Preserve at Rising Fawn, GA
INVESTMENT NAME: _______________________________
INDIVIDUAL INFORMATION
First Middle Last
Name:
Street City State Zip
Address:
Home Work Cell
Phone:
Social Security #: Date of Birth:
Print clearly
Email:

Present Employer: Position or Title:

Years Employed:
I have been self-employed in the same line of work for the past 2 years.
My Stated Income: $ /yr
I can verify income. (Your income is not verified with a Stated Income loan)

(If less than 2 years with present employer)

Previous Employer:
Years Employed: Position or Title:

FINANCIAL INFORMATION
Personal Checking Balance: $ Personal Savings Balance: $
Money Market / Liquid Assets: $ Retirement Accounts (401k, IRA’s): $
Home Equity Credit Line Available: $ Other Liquid Assets: $
Do you own or rent your current residence?
Own
Rent
To my knowledge my FICO score is over 660?
Yes
No
Don’t know
Are you a US citizen or Permanent Resident?
Yes
No
Have you filed for Bankruptcy in the past 7 years?
Yes
No

I hereby grant permission for Norada Real Estate Investments, and its participating lenders and mortgage brokerage firms including but not limited to Capital Direct
Lending, and/or their assigns (“Broker”) to obtain all information deemed necessary to process my mortgage loan application. This information includes, but is not
limited to, my past and present employment status, my deposit accounts, my past and present consumer credit record, my mortgage records and/or my rental records.
You are consenting to be contacted by up to 3 mortgage providers either by telephone, email or mail based on the information you have provided, even if you have
previously listed yourself on any private, state or federal Do-Not-Call List. You understand that the providers may maintain the information you submitted to us
whether you elect to use their services or not. In the event you no longer want to receive communications from a provider, you agree to notify the provider directly.

Broker, their successors and/or assigns, as their interest may appear, may reverify the information or documents used in processing this loan. I hereby authorize release
of information to the lender or its designee, by my employer, bank, accountant, mortgage lender, landlord, creditors and other sources to verify the accuracy of
documents and credit information the lender uses in deciding whether to approve my mortgage loan application. I also grant permission to use photographic copies of
this form containing my signature to obtain any information/documentation authorized hereby.

X___________________________________ _____________________
Signature Date
Fax this form to (866) 611-3060 or Mail to Norada Real Estate, 30251 Golden Lantern, Suite E261, Laguna Niguel, CA 92677
_____________________________________________________________________________
Privacy Act Notice: The information to be obtained will be used by the lender and any federal agency insuring, guaranteeing or purchasing the mortgage to determine whether you qualify as a
prospective borrower under the lender’s and agency’s underwriting standards. The information will not be disclosed outside the lender and the federal agency without your consent except to the
person or company verifying the information including, but not limited to your employer, bank, lender and any other credit reference as needed to verify other credit information, but if you do
not, your mortgage application may be delayed or rejected.
USA Patriot Act: The Patriot Act requires that we obtain the full “Date of Birth” (month, date and year) for all loan applicants.
All programs are subject to change without notice. This is not a guaranteed offer to lend and some interested applicants may not qualify. Occasionally additional documentation will be required. Completing this form does not obligate you in any way.