EXECUTIVE SUMMARY LIFELINE

ONE SOLUTION FOR SINGLE FAMILY DISTRESS

Tom Neary, CEO

April 21, 2012

LIFELINE

2012 NCRC ANNUAL CONFERENCE

WASHINGTON, DC

EXECUTIVE SUMMARY LIFELINE

SYSTEMIC BREAKDOWN OF U.S. HOUSING MARKET •  7-10 million homes in distress •  Hundreds of billions of dollars in non-performing loans NEGATIVE EQUITY HOMEOWNERS •  Unable to sell and move downmarket •  Facing inadequate supply of rental property TROUBLED BANKS •  Time, effort, and expense in loss mitigation •  Need to sell assets GOVERNMENT INTERVENTION •  Public commitment and political will to dispose of assets OPPORTUNITY TO •  Achieve a socially responsible outcome driven by private capital •  Acquire distressed, single family homes at scale •  Generate rental income + capital appreciation •  Achieve positive community impact while minimizing the financial impact to all

parties involved – do good, do well

PROBLEM / OPPORTUNITY

Page 2

EXECUTIVE SUMMARY LIFELINE

FORECLOSURE AVOIDANCE •  Reduces losses for borrower and lender •  Minimizes negative impact on community •  Reduces the number of unnecessary foreclosures SOLUTION FOR LENDERS •  Focused on banks, government agencies,

fulfillment agents and its potential status as a minority-owned business (MBE)

PROACTIVE PROPERTY MANAGEMENT •  Delivers world-class rental experience •  Property management is in-house, a critical part of the

solution •  Preserves property value •  Maximizes rental profitability

SOLUTION FOR DISTRESSED OWNERS •  Potential rebuilding of finances •  No eviction / relocation, or social / family upheaval CONSERVATIVE STRATEGY

•  Generates rental income •  Future capital appreciation SOCIALLY RESPONSIBLE •  Aligns interests of homeowners, lenders, investors and

taxpayers •  Private capital working to avoid family distress •  A situation where social responsibility enhances

financial results and lowers risk •  Benefits the community

SCALABLE PLATFORM TO ACQUIRE DISTRESSED HOMES IN PRE-FORECLOSURE AND RENT THEM BACK TO EXISTING OCCUPANTS

SOLUTION

Page 3

EXECUTIVE SUMMARY LIFELINE

SOLUTION PROCESS

OPERATING STRATEGY TARGET POOLS PROPRIETARY RELATIONSHIPS

ACQUIRE •  Distressed single-family homes •  Unique short-sale process •  Formula-based pricing •  Conversion to rental for

existing occupant FROM •  Bulk pools at government

agencies, banks GENERATE •  Current rental income •  Capital appreciation

HOMES •  Starter homes, clean title,

no liens •  Occupant willing and able to

become Lifeline tenant MARKETS •  Major markets •  Infill neighborhoods •  Positive price dynamics INITIAL GEOGRAPHIC FOCUS

•  Areas outlying Chicago

WITH •  Banks •  Government agencies •  Servicers •  Fulfillment agents

Page 4

EXECUTIVE SUMMARY LIFELINE

LENDERS

Avoid foreclosure

Avoid negative brand image

Clean up balance sheets

HOMEOWNERS

Avoid foreclosure

Avoid eviction

Recover and possibly regain home ownership

INVESTORS

Receive rental income

Benefit from recovering property values

TAXPAYERS

Avoid subsidizing foreclosure avoidance

Avoid local tax base erosion

LIFELINE ACQUISITION

BANKFORECLOSURE

60–70% optimistic foreclosure selling price

4% vicinity spillover

6% broker fees

20% foreclosure administrative costs (on $250K home)

100% OF CURRENT APPRAISAL

COMPARATIVE NET YIELDS TO LENDER

DISCOUNT CAPITAL GAIN TO INVESTORS

BASIS FOR SETTING THE RENTAL RATE

NET

30–40%OF APPRAISAL

LIFELINE OFFER APPROX.

65–80%OF APPRAISAL

LIFELINE OFFER APPROX.

70-80% OF FORECLOSURE COMMENCEMENT APPRAISAL

ACQUISITION ECONOMICS

NET

30-40% OF FORECLOSURE COMMENCEMENT APPRAISAL

Data summarized from FRB Boston & MIT-Harvard studies

Page 5

EXECUTIVE SUMMARY LIFELINE

•  7–10 million distressed sales over time, nationwide

•  1–2 million qualify for Lifeline’s short-sale program

•  Lifeline has a scalable operating platform readily deployed on a national basis

•  Initial deployment: infill neighborhoods outside the city of Chicago

ADDRESSABLE MARKET

Page 6

Source: RealtyTrac January, 2012

EXECUTIVE SUMMARY LIFELINE

LIFELINE INVESTMENT LIFECYCLE

QUALIFY LENDER

QUALIFY HOME

QUALIFY OCCUPANT

CLOSE MANAGE DISPOSE

LIFELINE INVESTMENT

MANAGEMENT

LIFELINE PROPERTY

MANAGEMENT

LIFELINE INVESTMENT

MANAGEMENT

FULFILLMENT AGENT

Page 7

EXECUTIVE SUMMARY LIFELINE

DISCLAIMER

This document is strictly for discussion purposes and is not a solicitation for investment in Lifeline, nor shall it be construed as such by any party. The information contained in this document is provided on a confidential basis to selected entities. It must not

be copied or disclosed to anyone except to personnel and professional advisors of the recipient on a need-to-know basis. The information contained in this document does not purport to be complete or current or to cover all the information or risk factors that a recipient may need in order to make an investment. Each recipient should conduct its own independent investigation and assessment, and make such additional inquiries as it deems necessary or appropriate rather than relying on the information in this

document. All information contained in this document is subject to and qualified in its entirety to the offering document and subscription documentation relative to the investments discussed therein. Statements contained in this document that are not

historical facts are based on current expectations, estimates, projections, opinions and beliefs. Such data may not include unknown risks, and makes forward looking statements. Actual results may differ from those contemplated in such forward-looking

statements. Targeted returns are not necessarily indicative of future performance.

Page 8

EXECUTIVE SUMMARY LIFELINE