REOLP Inc. Real Estate Owned Limited Partnerships .

REOLP Inc.REOLP Inc.Real Estate Owned Limited PartnershipsReal Estate Owned Limited Partnerships

REOLP Inc.REOLP Inc.Real Estate Owned Limited PartnershipsReal Estate Owned Limited Partnerships

www.REOLP.comwww.REOLP.com

www.REOLP.com © 2008 REOLP Inc. All Rights Reserved.

Table of ContentsTable of Contents

C. Business Factors

B. The Market

E. Financial Model

F. Management Team

D. Key Investment Benefits

G. The Deal

A. The Concept


A. The Concept

1.1.Organizer,

Manager Investor REO Property REO LLC

2.2.(a) Lease Property to Home Buyer

(b) Provide Option-to-Purchase

(c) Include Rent Increases

3.3.(a) Manage Property

(b) Sell Property

(c) Distribute Profits


B. The Market


Lending Lending InstitutionsInstitutions

REOREO Inventory Inventory

B. The Market

Willing BuyersWilling Buyers







REOLPREOLP

3. 3. InvestmentInvestment

StrategyStrategy

3. 3. InvestmentInvestment

StrategyStrategy

1. 1. TheThe

OpportunityOpportunity

1. 1. TheThe


2. 2. TheThe

SolutionSolution

2. 2. TheThe

SolutionSolution

7.7.ProfitProfit

DistributionDistribution

7.7.ProfitProfit


5.5.LimitedLimitedLiability,Liability,Low RiskLow Risk


4.4.ProfitProfitPlanPlan


6.6.TaxTax

AdvantagesAdvantages

6.6.TaxTax


C. Business Factors


3.3.InvestmentInvestment

StrategyStrategy

3.3.InvestmentInvestment

StrategyStrategy

1.1.TheThe


1.1.TheThe


Investment in Foreclosures:Investment in Foreclosures:

► Pre-foreclosures with Short SalesPre-foreclosures with Short Sales

► Foreclosures at AuctionsForeclosures at Auctions

► REO PropertiesREO Properties

► $300 Billion Market$300 Billion Market

Purchase at 30%, 40%, and 50% DiscountPurchase at 30%, 40%, and 50% Discount

2.2.TheThe

SolutionSolution

2.2.TheThe

SolutionSolution

Market Solution For:Market Solution For:

► Short-TermShort-Term Unsold Inventory of Unsold Inventory of Single Family HomesSingle Family Homes

► Long-TermLong-Term Trend of Declining Trend of Declining Affordability by ConsumersAffordability by Consumers

7.7.IncomeIncome


7.7.IncomeIncome






6.6.TaxTax


6.6.TaxTax


C. Business Factors

► PurchasePurchase:: REO Single Family Homes REO Single Family Homes

► LocationLocation:: Dispersed in Northern California Dispersed in Northern California

► AgeAge:: Newer Homes, Built in 1995-2008 Newer Homes, Built in 1995-2008

► SizeSize:: Min 3br 2ba, Max 4br 3ba Min 3br 2ba, Max 4br 3ba

► PricePrice:: $250k - $400k after discount $250k - $400k after discount

► Discount GoalDiscount Goal:: 40% - 50% off high Value 40% - 50% off high Value

► FinancingFinancing: Qualifies for 75% LTV Mortgage: Qualifies for 75% LTV Mortgage

► OtherOther: Qualifies for 3yr Lease/Option: Qualifies for 3yr Lease/Option

Investment Protection:Investment Protection:

► LLP Corporate Format to Limit LiabilityLLP Corporate Format to Limit Liability

► Land-Trust for Each Property to Limit Exposure Land-Trust for Each Property to Limit Exposure

► Lower Risk through Professional ManagementLower Risk through Professional Management

►Incentive Based Pay Structure for Management Incentive Based Pay Structure for Management

Use OfUse Of: :

► Depreciation Allowance Depreciation Allowance

► Tax-Deferred Component of ProfitTax-Deferred Component of Profit

► Long-Term Capital Gain Rates Long-Term Capital Gain Rates

► Annual Allotment from Cash-FlowAnnual Allotment from Cash-Flow

► Annual Tax BenefitsAnnual Tax Benefits

► Profit Payment at DisposalProfit Payment at Disposal

RevenueRevenue::► Option-Commitment and Security DepositOption-Commitment and Security Deposit► Annual Increase In RentsAnnual Increase In Rents

ExpenseExpense::► Mortgage, Taxes, InsuranceMortgage, Taxes, Insurance► Minor Maint. & Mgmt ExpenseMinor Maint. & Mgmt Expense

ExitExit::► Dispose within 3yrs, no Sales CommissionDispose within 3yrs, no Sales Commission► Re-invest or Distribute Profits & EquityRe-invest or Distribute Profits & Equity


D. Key Investment Benefits

Powered by Incentives

Diversified

Shielded from Liability

Backed by Tangible Assets

High Return on Investment

Tax Efficient

Low Maintenance

Positioned for Appreciation

Positioned for Cash Flow


Expenses:Expenses:

Mortgage, Property TaxMortgage, Property Tax

Low MaintenanceLow Maintenance

MiscellaneousMiscellaneous

Financing:Financing:

25% Down Payment25% Down Payment

8% -12% Return to Investor8% -12% Return to Investor

Leverage 6.75% 30yr Fixed Leverage 6.75% 30yr Fixed

75% LTV Mortgage75% LTV Mortgage

Cash-Flow ReserveCash-Flow Reserve

E. Financial Model

Lease/Purchase Option:Lease/Purchase Option:

Up to 3yr Lease:Up to 3yr Lease: Security DepositSecurity Deposit Commitment DepositCommitment Deposit Rent at Market+Rent at Market+ Annual rent increasesAnnual rent increases Improvement allowanceImprovement allowance

Fixed Sales PriceFixed Sales Price

BuyerBuyerWilling BuyersWilling BuyersBuyerBuyer


F. Management Team

REOLP Launched and Incorporated in 2008REOLP Launched and Incorporated in 2008Berkeley, CABerkeley, CA

Richard VaredRichard Vared Yaron MayerYaron Mayer

25 Years Entrepreneurial 25 Years Entrepreneurial Experience: Experience: Founder & CEO of PCSNetworks, LoyalCommerce, WritingHub, ThinkingExecutives, and EV-Sales.

25 Years Entrepreneurial 25 Years Entrepreneurial Experience: Experience: Founder & CEO of PCSNetworks, LoyalCommerce, WritingHub, ThinkingExecutives, and EV-Sales.

MS Management/QBMMS Management/QBMBS StatisticsBS StatisticsMS Management/QBMMS Management/QBMBS StatisticsBS Statistics

Investor in bay area single-Investor in bay area single-family homes, since 1980.family homes, since 1980.Investor in bay area single-Investor in bay area single-family homes, since 1980.family homes, since 1980.

FoundersFounders

20 Years Bay Area Real 20 Years Bay Area Real Estate Experience:Estate Experience:Successfully Invested, re-developed, and managed single-family & multi-family units.

20 Years Bay Area Real 20 Years Bay Area Real Estate Experience:Estate Experience:Successfully Invested, re-developed, and managed single-family & multi-family units.

12 Years Corporate Sales 12 Years Corporate Sales and Sales Management and Sales Management Experience.Experience.

12 Years Corporate Sales 12 Years Corporate Sales and Sales Management and Sales Management Experience.Experience.

BS Molecular BiologyBS Molecular BiologyBS Molecular BiologyBS Molecular Biology


The DealThe DealThe DealThe Deal G. The Deal

1. Definition1. DefinitionPrivate Real EstatePrivate Real Estate

Partnership Designed Partnership Designed to Profit from Investing into Profit from Investing in

Single FamilySingle FamilyPropertiesProperties

2. Philosophy2. Philosophy REO PropertiesREO Properties Newer PropertiesNewer Properties Northern California Northern California Buyer to Lease/OptionBuyer to Lease/Option Manage & LeverageManage & Leverage

3. Requirements:3. Requirements: Invest $25,000 or moreInvest $25,000 or more Accredited Investor Accredited Investor Sign Partnership AgreementSign Partnership Agreement

4. Investor’s Profit:4. Investor’s Profit: 8.0% Min Annual Total-Return8.0% Min Annual Total-Return

12.0% Probable Annual Total-Return,12.0% Probable Annual Total-Return, including Cash-Flow & Appreciation including Cash-Flow & Appreciation

Plus Tax BenefitsPlus Tax Benefits

Annual Income Available as:Annual Income Available as: Cash-Flow Dividend, or Tax SavingsCash-Flow Dividend, or Tax Savings


PlusPlus Annual Income-Tax BenefitAnnual Income-Tax Benefit

MinMin Total 4yr Return: Total 4yr Return: 8.0% Min Annual Rate of Return8.0% Min Annual Rate of Return

$100,000 + $36,060 = $136,060$100,000 + $36,060 = $136,060

The DealThe DealThe DealThe Deal G. The Deal: Example

$100,000$100,000 InvestmentInvestment(Min $25k)(Min $25k)

MaxMax Total 4Yr Return: Total 4Yr Return: 12.0% Probable Rate of Return12.0% Probable Rate of Return

$100,000 + $57,350 = $157,350$100,000 + $57,350 = $157,350

REOLP Inc.REOLP Inc.1442-A Walnut Street1442-A Walnut Street

Berkeley, CA 94709Berkeley, CA 94709

www.REOLP.com

REOLP Inc.REOLP Inc.1442-A Walnut Street1442-A Walnut Street

Berkeley, CA 94709Berkeley, CA 94709

www.REOLP.com

Corporate: (415) 992-6330Corporate: (415) 992-6330

Sales: (510) 860-5000Sales: (510) 860-5000

[email protected]

Corporate: (415) 992-6330Corporate: (415) 992-6330

Sales: (510) 860-5000Sales: (510) 860-5000

[email protected]

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REOLP Inc. Real Estate Owned Limited Partnerships .

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