“The Company”

Secured

Hassle-Free

Superior Yields

Agenda

The Program The Market Company Overview How it all comes together…

The Program

We locate a property. We borrow from you for the purchase. We have a formal closing.

You receive a first position Deed of Trust & note. Title insurance with a mortgagee clause Hazard insurance naming the mortgagee

You share in the profits and depreciation

Benefits to the Company

Availability of cash allows us to buy at a discount.

Availability of cash allows for quick closings.

Continued purchasing to build long-term value.

Banks don’t want to lend right now (build cash reserves).

Benefits to Mark Cuban

Superior yields vs. CD’s, T-Bills, and money market

Superior stability vs. stock market Minimum 30% equity cushion Receives monthly payments per the terms of

the Note and Deed of Trust Is secured in first position Payoff occurs when the property is sold. Receives 10% of the net profit as properties are

sold.

Benefits to the Community

Employ local tradesmen Rehabilitate “eye sore” houses Provide affordable housing Maintain local tax revenues with a

producing property

The Market Foreclosures remain high More than 10 months of inventory * Existing home prices begin recovery

in 2009 * Prices are down 6% since 2007 + Financing for sub prime…disappeared Mortgage rates 5.5% (Wells Fargo)

* Business Week January 30, 2009+ Dallas Morning News January 27, 2009

The Market – continued

Unemployment 8.3% by mid 2009 Recession until 3rd qtr 2009

Yields

US Treasury – 30 Year 3.542% US Treasury – 10 Year 3.27% US Treasury – 5 Year 2.822% Dow Jones (^DJI) 10 Years 0.303% Dow Jones (^DJI) 40 Years 5.80% Vanguard (VWNDX) 5 Years -6.52% Fidelity (FFIDX) 5 Years -3.61%

Data from Bloomberg.com and yahoo.com 2/2/2009

Yields for CD’s

Wells Fargo: 1year CD rate – 1.10% Bank of America: 5 yr CD rate – 2.08% Wamu: 5 yr CD rate – 1.54% Chase Bank: 5 yr CD rate – 2.5% Capital One: 7 yr CD rate – 4.0 %

As of January 30, 2009, from bank websites

Company Overview

Buy at a significant discount Renovate Sell at market value Lease to tenants

Single familyDuplexesFour-plexes

Success Factors

We have an established and documented formula.

Proprietary marketing plan locating motivated sellers (distressed)

What to buy and what not to buy Experienced in renovations Personal involvement Extensive management experience

CompanyPrincipals

Jim L. MBA & BBA – Univ. of Memphis20 years business experience10 years real estateOver 200 real estate transactionsMarketing & Acquisitions

Bill K.BBA – Cal St. Northridge24 years business experience6 years real estateOver 120 real estate transactionsSales & Operations Management

How does it all come together? Locate a property meeting our criteria

Maximum of 70% of value less repairs And/or price is 50-70 times monthly rent

Present property and plan to lender Desk top appraisal Repair estimate Projected rent or sale price

Formal closing with all documentation First position Real Estate Lien Note (Vendor’s Lien) First position Deed of Trust Title Insurance with Mortgagee’s Clause Hazard Insurance with Mortgagee’s Clause

How Does It All Come Together?

Renovate the property Lease the property

Income 3 times greater than rent Deposit Verifications (employment & landlord) Public records check

Sell the property (5-7 years estimated) Calculate profit and pay owners

Samples

The following slides are real properties that are currently in our inventory.

The purchase month and year are stated at the top.

The basic financials are listed to the right of the picture.

Duplex – Jan 2009Dallas

2/1/1 – 2 units Brick

Price: 46,000

Repairs 5,000

Total 51,000

Value 88,000

LTV 58.0%

PITI 642.80

Rent 1,150.00

Cash Flow 507.20

Single Family – Oct. 2008 Pleasant Grove

3/1/1 vinyl

Price 26,000

Repairs 7,000

Total 34,000

Value 60,000

LTV 56.7%

PITI 400.29

Rent 700.00

Cash Flow 299.71

Single Family – Oct 2008Oak Cliff

2/1/1 & 2-cp, aluminum

Price 11,500

Repairs 6,000

Total 17,500

Value 45,000

LTV 38.9%

PITI 222.50

Rent 595.00

Cash Flow 372.50

Single Family – Aug 2008Dallas

3/1/1 Brick

Price 35,500

Repairs 4,000

Total 39,500

Value 75,000

LTV 52.7%

PITI 487.67

Rent 695

Cash Flow 207.33

Four-plex – Jun 2008Dallas

2/1 – 4 units Brick

Price 96,000

Repairs 2,500

Total 98,500

Value 150,000

LTV 65.7%

PITI 1,213.94

Rent 1,580.00

Cash Flow 366.06

Single Family – Jun 2008Pleasant Grove

2/1 Frame

Price 21,000

Repairs 7,000

Total 28,000

Value 45,000

LTV 62.2%

PITI 333.56

Rent 595.00

Cash Flow 261.44

Tri-plex – May 2008Oak Cliff

2/1, 1/1, 1 bed studio

Price 26,000

Repairs 7,000

Total 33,000

Value 55,000

LTV 60%

PITI 400.96

Rent 1,145.00

Cash Flow 744.04

Single Family – Apr 2008Dallas

3/2/2 Brick

Price 41,000

Repairs 7,000

Total 48,000

Value 80,000

LTV 60%

PITI 598.88

Rent 950.00

Cash Flow 351.12

Single Family – Mar 2008Pleasant Grove

2/1/1 vinyl

Price 18,000

Repairs 9,000

Total 27,000

Value 50,000

LTV 54%

PITI 336.81

Rent 600

Cash Flow 263.19

Single Family – Mar 2008Grand Prairie

2/1/1 Frame

Price 10,000

Repairs 2,000

Total 12,000

Value 25,000

LTV 48%

PITI 168.09

Rent 300.00

Cash Flow 131.91

Duplex – Jan 2008Pleasant Grove

1/1/1 2 units

Price 32,000

Repairs 7,000

Total 39,000

Value 75,000

LTV 52.0%

PITI 482.89

Rent 745.00

Cash Flow 262.11

Single Family – Mar 2007Oak Cliff

2/1/1 Vinyl

Price 10,000

Repairs 5,000

Total 15,000

Value 35,000

LTV 42.9%

PITI 188.52

Rent 300

Cash Flow 111.48

Single Family – Oct 2007Richardson

3/2/2 BrickPrice 82,000Repairs 4,000Total 86,000Value 120,000LTV 71.7%

PITI 910.00Rent 1,100.00Cash Flow 190.00

Owner financed note

Single Family – Oct 2006Garland

3/1/1-CP Frame

Price 22,000

Repairs 8,000

Total 30,000

Value 60,000

LTV 50%

PITI 434.37

Rent 625.00

Cash Flow 190.63

Single Family – Jun 2006Irving

3/1/1 Aluminum

Price 40,000

Repairs 2,000

Total 42,000

Value 78,000

LTV 53.8%

PITI 556.50

Rent 750.00

Cash Flow 193.50

Single Family – Sep 2005Oak Cliff

2/1 Vinyl

Price 12,000

Repairs 8,000

Total 20,000

Value 43,500

LTV 46.0%

PITI 267.39

Rent 600.00

Cash Flow 332.61

Single Family – May 2005Oak Cliff

2/1 Frame

Price 6,000

Repairs 2,000

Total 8,000

Value 25,000

LTV 32%

PITI 145.23

Rent 250.00

Cash Flow 104.77

Single Family – Feb 2008West Dallas

2/1 Frame

Price 8,000

Repairs 2,000

Total 10,000

Value 25,000

LTV 40%

PITI 137.87

Rent 250.00

Cash Flow 112.13

Single Family – Jan 2005Oak Cliff

2/1/1 Frame

Price 16,000

Repairs 5,000

Total 21,000

Value 40,000

LTV 52.5%

PITI 279.36

Rent 550.00

Cash Flow 270.36

Single Family – Nov 2004Irving

3/2/1 BrickPrice 82,000Repairs 4,000Total 86,000Value 109,000LTV 78.9%

PITI 865.92Rent 950.00Cash Flow 84.08

30-year loan