EMR Name

Legal DisclaimerThis document is an interest seeking document only. IT IS NOT ADVICE. IT IS AN OPINION BY THE AUTHORS AND/OR PRESENTERS. No information, forward looking statements, or estimations represent any final determination. While every effort has been made to ensure accuracy in this presentation, numbers are subject to change and are not guaranteed. This document is for general information purposes only and is not to be construed as selling securities or real estate. While the information presented in this investor document has been researched and thought to be reasonable, in general, real estate investment is highly speculative, real estate values can go up but they can also go down, and thus PRESTIGIOUS PROPERTIES, THOMAS BEYER , SCOTTY GRUBB, EMD, EMR, MIKE HAMMERLINDL, RICK LINKLATER, KEITH MCMULLEN, ITS PARTNERS AND/OR ITS AGENTS CANNOT AND DO NOT GUARANTEE ANY RATE OF RETURN OR INVESTED AMOUNT OR INVESTMENT TIMELINE.

The reader acknowledges and agrees that Prestigious Properties, Thomas Beyer, its partners and/or its agents do not assume and hereby disclaim any liability to any party for any loss or damage caused by the use of the information contained herein or errors or omissions in the information contained in this investor document to make any investment decision in the venture referred to herein, whether such errors or omissions result from negligence, accident or any other cause.

Investors are required to conduct their own investigations, analysis, due diligence, draw their own conclusions, and make their own decisions. Any areas concerning taxes or specific legal or technical situations should be referred to lawyers, accountants, consultants, realtors, or other professionals licensed, qualified or authorized to render such advice. IN NO EVENT SHALL PRESTIGIOUS PROPERTIES THOMAS BEYER, SCOTTY GRUBB, EMD, EMR, MIKE HAMMERLINDL, RICK LINKLATER, KEITH MCMULLEN AND/OR ITS AGENTS BE LIABLE TO ANY PARTY FOR DIRECT, INDIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES OF ANY KIND WHATSOEVER ARISING OUT OF THE USE OF THE INFORMATION CONTAINED HEREIN EVEN IF PRESTIGIOUS PROPERTIES, THOMAS BEYER AND/OR ITS AGENTS HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. PRESTIGIOUS PROPERTIES, THOMAS BEYER, SCOTTY GRUBB, MIKE HAMMERLINDL, RICK LINKLATER, KEITH MCMULLEN, ITS PARTNERS AND/OR ITS AGENTS (INCL EMR and EMD) SPECIFICALLY DISCLAIM ANY GUARANTEES, INCLUDING, BUT NOT LIMITED TO, STATED OR IMPLIED POTENTIAL PROFITS OR RATES OF RETURN OR INVESTMENT TIMELINES.

This is not a solicitation for investments. Investments are sold via offering memorandum or LP agreement only. Please read disclosure and/or due diligence documents carefully. This offering is void where prohibited. Not every potentially interested party is eligible to invest. Minimum investment amounts and hold periods apply. E & OE.

30% Medium Risk

10%High Risk

3

Asset Allocation – A Proven Model !(Stocks, Bonds and Private Equity)

60% Low Risk

Land Development (with no mortgages)

Second Mortgages (non-construction)

Most large CAP stocks

Euro Bonds

Gold, Diamonds

Commercial Real Estate

Construction Projects(with low mortgages orIn very high demand locations)

Land Development (with mortgages)

Second Mortgages (construction)

Most penny Stocks

Construction Projects (with mortgages)

Greek Bonds

Private Software Firms

Restaurants

Apartment Buildings (with modest mortgages)

First mortgages (non-construction)

Quality Corp. Bonds

Many Municipal Bonds

Government Bonds Note: RISKY (according to the security commission rules) is an exempt market offering with any of these even if some asset classes are less risky than others !

Location

Mission Statement:

“We build wealth for investors by offering well selected real estate investments in W - Canadian

growth markets that provide positive cash flow and/or, tax free equity growth, and hassle free management for the

benefit of tenants, communities and investors.”

WHY WE LIKE APARTMENT BUILDINGS4 REASONS YOU SHOULD TOO

#1 The Power of Leverage

• Cheap Money Available from the Banks• Multiplies your earning power

#2 Cash Flow• Revenue – Expenses = Cash-Flow• Sources of Revenue:

- Rents from Tenants- Vending, Cell Towers- Parking

• Expenses- Mortgage (Principal and Interest)- Maintenance and Repairs- Taxes and Insurance- Utilities - Property Manager

• The larger and safer the revenue stream…

• …The more it is worth

#3 No New Build• We Buy for $80K - $150K per

door• Cost to build new from $150K –

$220K per door (not including land)

#4 Rental Real Estate – Demand Increase

Profit Centers in Real EstateA Three Course Meal !

• Appetizer: Positive Cash-Flow• Main Course: Mortgage Pay-

down• Dessert: Value Growth

– Improvements – Re-positioning– Reduced expenses / higher rents– Time

Total Return: 11.3% AvgIncome Return: 7.4% AvgCapital Growth: 3.6% Avg

Investment in Multi Family Buildings

vs. Stock market

After MER of a typical mutual Fund

10 year average2% per year

Average TSX10 year average4% per year

• TSX Index Performance over 10 Years Raw Index and after 2% MER / year

Macro-Location + Micro-Location

+ Timing + Upgrades

+ Hard Work + Impeccable Management

=SUCCESS

Alberta = OIL & Gas

• “2011, per capita investment in Alberta was $23,461, more than double the national average of $10,758.” - albertacanada.com

• “In 2011, Alberta had the highest GDP per capita of any state or province in North America.” – albertacanada.com

• “Cumulative investment in Canada’s oil sands in the past decade has surpassed $100 billion, and $364 billion in price-adjusted investment is expected to take place over the next 25 years.” – CBOC, Fuel For Thought

Jobs Jobs Jobs

• 50% of all new Jobs created in Canada in 2011 were created in Alberta

• Average of 44,000 new jobs generated per year in Oil and Gas alone between 2012 and 2025

Source: Conference Board of Canada – Fuel for thought

• 367 people per day moved to Alberta in 2012

• 80% of newcomers to the Province rent for the first 2 years

• More people drive up the demand for rental property

• Vacancies Decrease and Rents Increase

Migration

Prestigious Properties

Who is Prestigious Properties• Founded in 2000

• Transacted 35 buildings to date valued over $166M (or 1/6th of a billion $s)

• Currently own 900 units across 16 buildings under the Prestigious Properties Brand worth over $85M

• 600+ investors have invested over $45M so far

• Proven, Rock Solid Track Record over 10+ years

Assets Under Management• $11.22M per year in revenue• 2012 Mortgage Paydown: approximately $1M

Our TEAMTogether Everyone Achieves More

• 7+ decades of experience• Executives of each LP have no

salaries • An expert for each individual

business unit• Executives personally invest

alongside investors

• Apartment Buildings – high demand and recession proof

• Growth Markets

• Cash Flow (year 2 & forward) and Equity Growth

• Conservative leverage

• Proven & Repeatable

• Experienced Management

A Proven Business Model

Our Track Record

Case Study - Yorkton, SK PortfolioFour Existing Apartment Buildings•126 Units Total•Acquisition Overview

• Date: May 2007 to September 2009• Total Purchase Price: Approximately $4.5M

• Date: September 2011• Total Sale Price: $7,771,000

Return on Investment:• Increase of ~85% in building values• 140%+ on the cash invested• 75%+ ROI for investors• 15%+ per year ROI

Case Study 2 – 39 Suites Edmonton

Purchase Price: $1,900,000 – Dec 2004•Total Cash Investment - $450,000

Sold: $3,900,000 August 2008•Investor ROI 50%+ per annum

Case Study 3 – 101 Suites Edmonton

Purchase Price: $4.16M – Fall 2005•Capital Improvements - $300,000•Total Cash Investment - $1,000,000

Sold: $9,929000 July 2007•Investor ROI: 25% per annum LP1•LP1 Late comers 12.5% per annum

Case Study 4 – Campbell River 65 Suiter• Discovery Village – Campbell River, BC• 65 units • Purchased for $4,387,500M (~$67,700/unit) in Sept. 2008• $687,500 cash to mortgage• Plus approx. $250,000 additional cash since then• $3.7M mortgage (plus 183,000 CMHC fee) – paid down to about $3.325M• Sold for $5.192M on Nov. 26, 2012 (approx. $79,000/unit)• $804,000 gain, plus• Approx. $375,000 mortgage paydown• Total equity gain over $1.1M in about 4 years• 65%+ ROI for investors after GP split and expenses• 16%+ per year ROI

How We Add ValueBefore

After

• Walls: vanilla / beige • Baseboards: 3 inches, white• Lights: pewter/nickel• Outlets/lights switches: white• Door handles: nickel or pewter• Closet door handles: nickel or pewter• Carpets: like new or new or laminate• Lino: like new or new• Ikea curtains or room dividers• Laminate flooring

In the Suite Value Add

Before After

After

• Paint closet doors white• New countertop if worn• New sink, or• New vanity • Single lever tap: chrome or nickel• Tubs / toilets / sink: white• One piece tub surround• Towel bar / TP holder: nickel• Check bathroom fans (white cover)

Bathroom

Cost:•1 BR (600 sq ft): $2000 to $4000 + appliances + flooring•2 BR (800 sq ft): $3000 to $5000 + appliances + flooring

Increased Rents:•$150 to $450 - depending on market/area•Value Increase of $10,000-$25,0000 on $2,000 to $8,000 investment•ROI: 50% to over 400%

The Numbers

BEFORE

AFTER

After

AFTER

Prestigious PrioritiesOur Priorities• Return OF your money• Return ON your money• Quarterly Cashflow

Other Important Issues•Ethical Management •Open Communication•Transparency with Financial Information•Low overhead, low soft costs, no initial uplift of assets•Win/Win: their profit only after your profit

Kings Castle LP• Target 10% + per annum ROI to investors

• Medium term 6-7 year hold with early exit options if needed

• LP Structure – LIRA/RRSP/TFSA eligible

• Volume Discounts

• 5% quarterly Cash Flow option or 6% Drip

• Minimum investment $20,000

Castleview Park Apartments NE Calgary, AB

• 120 units• 84 - 1BRs and 36 – 2 BRs• Purchased for $14.65M (~$122,000/unit) in December 2010• $10,065,000 first mortgage at 4.14% interest• Current rent roll - $120,000/month

• About 15% higher than on purchase• VALUE ANALYSIS

• Appraised at $19.3M in Feb. 2013 - our 5 year conservative value forecast• Offer received by a REIT for $19.8M – over our most optimistic 5 year forecast• With an NOI of $1,030,000 and a 5% CAP rate value today is: $21.5M

Hawkwood Manor, Red Deer AB• 18 units - all 2 BRs – condo converted @ $97,000/unit • Good condition outside – suites need some work to get rents up 20%• Purchase Price: $1,750,000 - November 2012• $75% first mortgage at prime + 1.5% for one year• Current rent roll - $14,200/month

• Rent increases of 20%+ on lease renewals from $750 to $900 to $995• Appraised February 2013: $2,100,000 - 50%+ cash-on-cash ROI with $550,000

invested all in.

Why Invest in ApartmentBuildings?

•Positive, regular cash-flow•Historically low vacancy rates•Mortgage paydown / leverage•Renting is the economic choice –a paradigm shift in W-Canada•Equity appreciation / value improvements•Real Asset

•Excellent return•Proven business model•Ethical stewardship by lead managers•Outstanding track record - references•No property management hassles•No inflated going-in values•No stock market volatility•Hard Asset – Lower Risk

Why Invest withPrestigious Properties ?

SUMMARY – WHY ? WHY NOW ?

JOIN US IN OUR MISSION !

Questions?

Talk to us !

Mission Statement: We build wealth for investors by offering well selected real estate investments in North American

growth markets that provide positive cash flow, tax free equity growth, and hassle free management for the benefit of tenants,

communities and investors.

Mission Statement: We build wealth for investors by offering well selected real estate investments in North American

growth markets that provide positive cash flow, tax free equity growth, and hassle free management for the benefit of tenants,

communities and investors.