This

property was purchased at trustee sale, fully renovated, inspected, and rented to a qualified tenant

1652 KEY COLONY DR, LAS VEGAS, 89156 3 bedroom 2 F bath 1340 SF home built in 1990 $ 91,900 Asking price
Notes: 7 8 22 9 1 2 3 10 11 12 13 8 14 5 6 30-year fixed Financed purchase $ 91,900 Asking price $ 73,520 Maximum loan $ 18,380 Down payment $ 6,433 Closing costs and fees @7% $ 24,813 Total Investment 5.00% Investment loan interest rate $ 925 $ 281 $ 645 $ 395 $ 250 $ 88 $ 338 $ 4,058 $ 24,813 16.4% $ 101,309 26.2% Rent Expenses Monthly net income Payment Monthly cashflow Principal amortization in payment Cashflow plus amortization Yearly cashflow plus amortization Total Investment (down payment plus closing costs) Cash-On-Cash Return = cashflow / total investment Cash at Sale in year 10 (profit plus amortization) Internal Rate of Return
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15-year fixed $ 91,900 $ 73,520 $ 18,380 $ 6,433 $ 24,813 4.50% $ 925 $ 281 $ 645 $ 562 $ 82 $ 287 $ 369 $ 4,426 $ 24,813 17.8% $ 130,809 36.0%
larry@IdealHomeBrokers.com (949) 351-6913

Ideal Home Brokers Property Offering Report

Notes: 1 2 3 $ 925 $ 281 $ 645 $ 7,734 $ 91,900 8.4% $ 160,864 $ 68,964 12.8%

All-cash purchase
Rent (see page 2 for comparables) Expenses (see page 2 for detail) Monthly net operating income Yearly net income Asking price (Investment) Capitalization Rate = net income / asking price Resale value in year 10 (net of 8% liquidation costs) Profit from sale in year 10 Internal Rate of Return

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Notes: Calculations 1 $ 925 Rent 15 16 17 18 19 $ 80 $ 50 $ - $ 56 $ - $ 186

Net Operating Income Detail

Terms

Cash Operating Expenses Property Tax Homeowners Insurance Homeowners Association Fees Property Management Fees (% of Gross Rent) Other Expenses Monthly Cash Expenses

1.0% 0.65% varies 6.0% 20.1%

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Reserve Expenses $ 55 Maintenance and Replacement Reserves $ 40 Vacancy and Collection Loss $ 95 Monthly Reserve Expenses $ 281 Total Expenses $ 645 Net Operating Income Comparable Resales
1928 JINGLE CT -- 3 bed 2 bath 1340 SF -- 1991 List: $89999 6067 SUNKISS DR -- 3 bed 2 bath 1506 SF -- 1983 List: $100000 6141 DESERT SUN DR -- 3 bed 2 bath 1382 SF -- 1984 List: $100000 1927 TRILLY LN -- 3 bed 2 bath 1324 SF -- 1990 List: $107350 5983 UNDERWOOD WY -- 3 bed 2 bath 1340 SF -- 1990 List: $74900 1672 KEY COLONY DR -- 3 bed 2 bath 1340 SF -- 1990 List: $85000 1941 JINGLE CT -- 3 bed 2 bath 1340 SF -- 1991 List: $95000

5.9% 4.3% 10.3% 30.3% 69.7% Resale Date

5/25/11 5/6/11 3/28/11 3/7/11 3/4/11 2/1/11 1/0/00

Amount
$ 93,000 $ 107,000 $ 100,500 $ 94,000 $ 75,000 $ 85,000 $ -

Comparable Rentals
5976 SUNKISS DR -- 3 bed 2 bath 1424 SF -- 1982 List: $950 1550 DESERTAIRE WY -- 3 bed 3 bath 1511 SF -- 1988 List: $1150 1492 SUNVUE CR -- 3 bed 5 bath 1106 SF -- 1983 List: $1050 1571 SUNRISE VIEW DR -- 3 bed 2 bath 1106 SF -- 1983 List: $875 6161 DESERT SUN -- 3 bed 2 bath 1219 SF -- 1984 List: $895 6182 MORNING SPLENDOR WY -- 3 bed 2 bath 1318 SF -- 1989 List: $900 1721 SUNRISE VIEW DR -- 4 bed 2 bath 1528 SF -- 1990 List: $1050 Ideal Home Brokers Property Offering Report
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Lease Date
7/8/11 3/31/11 3/14/11 2/10/11 2/22/11 1/14/11 10/4/10

Amount
$ 900 $ 1,150 $ 1,050 $ 875 $ 898 $ 900 $ 1,000

larry@IdealHomeBrokers.com (949) 351-6913

Projected 10-year appreciation to near rental parity with liquidation resale

$250,000 Rental Parity
2.5% annual rent growth

Resale Value $197,494 $174,852

Resale near rental parity in year 10

$200,000

$150,000

$154,282 $91,900

Undervaluafon

$100,000

3 year trough to breakeven

5 years of double-digit appreciafon

$50,000

$- 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Financing Terms and Cash-On-Cash Returns

40.0% 35.0% Cash-On-Cash Return 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%

lower interest rates generate higher returns

lower down payments generate higher returns

Interest Ra te
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larry@IdealHomeBrokers.com (949) 351-6913

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Notes: Gross Rent is estimated from comparable rentals or taken from actual rent rolls. 1 2 3
Summary of expenses from page 2 Net Operating Income is the rental income minus the cash expenses. This figure is independent of taxes or financing which vary considerably from deal to deal. Many rental properties are purchased without debt, and the Net Operating Income is necessary to compute the Capitalization Rate. The capitalization (cap) rate is the (yearly) Net Operating Income divided by the purchase price. It is the simplest measure of an investment's financial performance, and it provides a convenient comparison to competing investment alternatives. A cap rate is like an interest rate on a checking account, a mutual fund return, or a bond yield. The cap rate is inversely related to price; in other words, high cap rates are synonymous with low prices and visa versa. The cap rate an investor will accept varies from person to person. There is no single appropriate rate to apply to value. Instead, we show a range of values at different cap rates to show the current investment return someone can expect from this property. The resale value at in year 10 assumes prices appreciate strongly after the supply problems are resolved. (see page 3). The Internal Rate of Return evaluates the timing and the amount of each source of income and calculates a rate which would balance these various sources of income with the initial investment. IRR is the best method for calculating the returns on investments with variable income. Maximum loan based on lender limitations or available cashflow. Generally smaller for 15-year amortization. The down payment reflects the minimum up-front investment required based on financing limitations. Mortgage interest rates vary based on amortization schedule. The quicker the loan amortizes, the lower the interest rate. The monthly payment is the based on the largest loan a lender offers that still provides for positive cashflow The monthly cashflow shows the amount left over after all payments and reserves have been met. This is the calculated principal amortization in the first payment. This amount increases in subsequent payments. The actual monthly gain includes both left-over cashflow and amortization in the loan. The Cash-On-Cash Return is similar to a capitalization rate in that it shows a return on investment, but it is measured by comparing the Total Profit and Loss after Expenses, Debt and Taxes and compares that to the cash investment. This is the important rate of return for investors who are not purchasing with all cash. As long as debt is less expensive than the cap rate, the cash-on-cash returns can be magnified by increasing debt. This is an appropriate use of leverage to increase investment returns. This is the property tax amount set by the local jurisdiction. Estimated homeowners insurance. Homeowners association dues from property investigation. Property management fees vary, but 8%-10% of the monthly rent is a common fee. Monthly cash expenses are the actual outlays of cash each month to support the property. Estimated maintenance and replacement reserves. These are higher in single-family detached homes and in older properties. Vacancy and Collection Loss is an allowance for tenant turnover. Closing costs are estimated from our experience with dozens of transactions. This includes bank loan fees, escrow fees, title insurance, transfer taxes, and other costs associated with a typical real estate transaction.

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General Disclaimer
This report represents the considered opinion of Ideal Home Brokers. We make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates may not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

Ideal Home Brokers Property Offering Report

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larry@IdealHomeBrokers.com (949) 351-6913