Helping You Create Financial Independence

Affordable Housing Investment Program

in Sevier County, TN

The strategies mentioned in the presentation may not be appropriate for everyone; other options not mentioned may be more suitable for your specific circumstances. Consult your personal accountants, tax advisor and/or attorneys to discuss your specific situation.

Past performance is no guarantee of future results. Real Estate purchases are subject to investment risks, including the possible loss of amounts invested.

While every effort is made to maintain accurate and current information, the possibility of errors and/or updates always exists. No guarantee is made that all information is current and accurate.

Obligatory Disclaimers

Down Payment: $1,500Positive Cash Flow During Year 1: $14,400 (based

off of $1,200/month) Immediate Equity: $35,000Asset Appreciation: $41,000 (based off of 8% per year)

Total 2 year return: 35,000k+41,000k+14,400k=$90,400

Cash on Cash Return= 6,000%

2 year ROI: 6,000% !!!

Knoxville Ranked #5 In Real Estate Growth 2nd Half of 2006 Home of the University of TN – 26,400 students 5 Major Hospitals Rapidly Rising Land Costs Affordable Housing Shortage Substantial Tourist Hub, Support Resort Town A Second Florida for Retirees with Less Weather Risk & Lower

Cost of Living Accessibility – 3 Major Interstates Collide – I-75, I-40, I-81

Knoxville & Gatlinburg

Why Tennessee?

No State Income Taxes Sales Tax Credit to Residents Lower Taxes than Knoxville Lower Insurance than Gulf

States 12 Minutes to Knoxville, TN 20 Minutes to Gatlinburg, TN

Area Lower Land Costs Down Home TN Feeling Growing Amenities &

Infrastructure Development

Why Tennessee?

13 Million + visitors per year often returning 2- 4 times per year

50% of visitors travel up to 500 miles

33% of visitors stay 4 to 7 nights

The average couple spends $1,800 per trip

$1.2 Billion in travel expenditures in 2005

Tennessee Tourism

• Gateway to Great Smoky Mountains National Park

9 Million Visitors Per Year, spending over $652MM in the surrounding areas

#1 Attraction in Tennessee

Tennessee Attractions

Tennessee Attractions

2.4 Million Visitors Per Year #2 Attraction in Tennessee

Tennessee Attractions

Dollywood's Splash Country was named the "Best New Waterpark" by the World Waterpark Association during the park's inaugural season.

Featuring more than 23 water adventure slides, thrill rides with daring drops, white water rafting ride, and two interactive children's playground areas.

Tennessee Attractions

• 2 Million Visitors Per Year2 Million Visitors Per Year• Most Visited Aquarium in the U.S.Most Visited Aquarium in the U.S.

Sevier County is now Ripley’s Entertainment “new attraction” launch site preferred over

Orlando – it includes The Haunted Adventure, Motion Theatre and a Miniature Golf

Experience

Harrah’s Casino (a peaceful 35 mile drive through the

mountains)

The Hard Rock Café #2 ranked city for weddings and the only Hard

Rock Café with a wedding “Chapel” on site in America

Wonderworks of Orlando only 2 in the United States

Tennessee Attractions

Other Attractions

• Comedy Barn Theater

• Dolly Parton’s Dixie Stampede Dinner & Show

• Country Tonite Theatre

• Great China Circus Legends of China

• Miracle a faith based musical

Shopping District

The largest shopping district from Nashville to North Carolina, new upscale with boutiques, anchor stores, specialty stores, restaurants and more

Free College Tuition

2 years paid college tuition for any student graduating from a Sevier County

schools with a “C” or better GPA

Tennessee Attractions &Characteristics

Number of Attractions Up! Projects Under Development

• Cabella’s

• Dollywood Expansion

• 90 Acre River Walk

• NASCAR Experience

Planned Projects

• LPGA Course

• NASCAR Speedway

• Additional 1 Million SQFT of Outlet Space

Potential Projects

• Disney

Sevier CountySUMMARY OF FEATURES

Immediate Equity of 10% even with Low Down Payment Financing Options Available Quadruple-Digit Cash on Cash Returns 1 year developer lease back 100% positive cash flow during year 1 (due to developer lease back) 6,000% ROI Multiple Hold Strategies Own the Property Starting with up to $1500 out of pocket Total Out of Pocket for full 20 months less than $2,000 while

appreciating easily $20k+/year for buy and hold strategy (based on 8 month build out time and property appreciating at 10% a year)

Investing in Emerging Market Strong Demand Dynamics in Place

Program Highlights

NO PAYMENTS till 2009! Total out of pocket money to purchase is only $1,500 Built in equity is 10+% of sales price Build time is 3-4 months (no out of pocket money during this time) 1st year leaseback covers payments Vacant Developer Leaseback You can work w/ our property management firm to rent out your

property for PURE POSITIVE CASH FLOW during year 1 THE TIME IS NOW TO BUILD YOUR PERSONAL NET WEALTH!

1 Year Developer Leaseback

Instant Equity of 10+%

8% Projected Appreciation

1 Year Developer Leaseback

100% Positive Cash Flow - up to $14,400 During Year 1

Factors Mitigating Risk

The Brentwood Model

The Brentwood Model

SUMMARY ILLUSTRATION

Typical Lot $ 47,000Typical Model Price $ 165,000Net Home Price $ 210,000**Closing Cost on Loan $ 10,000 Construction Interest $ 3,000

Total Purchase Price $ 226,000

Total Loan Amount $ 226,000 Appraised Value $ 261,000 Total out of pocket $ 1,500

Approximate Equity at Closing $ 35,000Annual 2 yr Appreciation if @ 8% $ 41,000Positive Cash Flow During Yr 1 $ 14,400 Total 2 year return $ 89,000 Cash on Cash Return 6,000%

2 yr ROI Example: Sevierville, Tennessee

Investment Overview

*example purposes only – prices and inventory may vary

EXIT STRATEGY

Rent upon Completion (Certificate of Occupancy)

Projected Amount of Rent per Month (net) $ 1,200Pure Positive Cash Flow During Yr 1 $ 13,200 (due to 1 year developer leaseback)

Projected Value of Home after 2 Years $ 301,600 (based on 8% appreciation per yr)

Enjoy Available Tax Benefits (12 months +)

*All prices, building costs, interest rates, and appreciation rates are subject to change without notice. Cozza Investment Group, Inc is not responsible for losses, damages, or changes in the market conditions. All information is deemed reliable but not guaranteed.*example purposes only – prices and inventory may vary

Planning Your Exit

How do I get started?

Please read the following steps involved to get your clients started!

STEP 1: Email Brad Cozza or call to reserve an allocation for this investment. (limit of 2 per person) STEP 2: Each investor needs to be pre-approved by the preferred mortgage company, Home First Financial. This company will need to obtain a complete residential mortgage application, including information provided by three independent credit reporting agencies, asset and income information, work, and residential history, and other necessary information.STEP 3: Upon pre-approval, Home First Financial will contact you letting you know the exact deposit amount required

*Reservation does not guarantee final lot selection – lot selection subject to availability of inventory at time of pre-approval

How do I get started? Cont.•STEP 4: If application meets lender’s criteria for financing, Cozza Investment Group will assist investor in lot and/or resort cabins. Each investor will receive a call from Cozza Investment Group.

•STEP 5: Client will receive a package from Home First Financial comprised of a contract for land purchase, a builders contract, and a loan package. The lot acquisition process is on a first come first serve basis after your loan is pre-approved. Cozza Investment Group, Inc. will provide any information in regards to the lot acquisition process.

•STEP 6: Upon completion of a fully executed contract by both parties, the time clock begins. Any additional deposits should be sent to the title company within 5 days or less.

•STEP 7: Investor will work with Home First Financial to provide them all required documentation to complete the loan file. Simultaneously, the appraisal and title companies will complete their services.

•STEP 8: A completed loan package is submitted on behalf of the borrower and approved for closing. Approximately two weeks after the closing, the builder receives their first draw to begin the permitting and building process.