Investor Summit 2008

POWER OF THE GROUP ™ INVESTMENTS

Using Group Investments to Ladder Your Wealth

David Campbell

•Professional Investor

•Real Estate Developer

•Real Estate Broker

•Author / Public Speaker

•Hassle-Free Cash Flow Investing Specialist

David Campbell

If you have questions about anything in this presentation please contact

David Campbell(707) 373-9966

David@HassleFreeCashFlowInvesting.com

Your Role as an Investor

Active or Passive?

The Challenges of Owning Individual Properties

Individual Properties are Always Active even w/ professional property management.

YOUR TIME = YOUR MONEY

High ROIs Require Use of Leverage Loans are Difficult to Acquire Using Retirement

Funds Loans Requires Good Credit and Cash Flow Loan Cost & Transactional Costs Affect Net ROI

The Challenges of Owning Individual

Potential for negative cash flowPotential for negative equityPotential for personal liability

Group Investing

Several individual investors combining their financial resources into a single investment that is managed by a team of professionals.

The Power of the Group™

Deals Attract Dollars Dollars Attract Deals Together Everyone Achieves More Bigger and Better Opportunities Leverage

Time Money Knowledge Relationships

Who Should Consider Group Deals?

Busy People: “Hands Off” Investing New Investors: Earn While You Learn Retirement Funds: IRA, 401k Those Interested in Bigger Deals More interesting projects / Higher net

margins Lifestyle Investors Active vs. passive diversification Marketplace diversification Product type diversification

Advantages of Group Projects

1. Limited Liability2. Force Equity without Effort3. No Loan on Your Credit Report4. Easier for IRAs than Individual

Properties5. Cash Flow Security6. Shorter Timeframes & Predictable

Liquidity Points

Deal TypesPassive Equity / Passive Cash Flow

Market Appreciation / Rental income from operations

Found Equity Purchase through strategic relationship or

don’t wanter

Phased Equity Purchase in early phases of a development Forced Equity Add Value through Construction / Rehab /

Subdivision

Investment Objective Varies Per Project

Direct Ownership (TIC) or Entity (LLC)

Equity Growth – Proforma 14-30% annualized

Cash Flow – Proforma 10 – 14% annualized

Blend of Cash Flow & Equity Growth- Proforma % cash flow + % appreciation

Ownership Structure Varies per Project

Member of LLC Active (Managing Member) / Passive (Limited

Member) Co-Tenant in TIC

Active (manager) / Passive (co-tenant) Corporation

Shareholder (passive) Trust

Trustee (active) / Beneficiary (passive) Lienholder

The A-B-C Development Concept

AControl• Contract

• Relationship

• Ownership

BAcquisition•Investors Hold the Land During Pre-Development

•Specific Entry & Exit Price

CDevelopment•Investors Fund Development

•Return Varies Based on Performance

DFinished Product•Sold to End Users

•May or May Not Provide Inventory for Investors

Laddered investments

Stagger entry and exit points into multiple investments to create variable liquidity intervals based on estimated project completion dates.

Laddering: Staggered Entrance Points

Assumptions: ~$480,000 to place 8Q Cash to Asset to Cash Cycle 20% Annualized Return Q1 $60,000 x 1.40 = $84,000 due

Q9 Q2 $60,000 x 1.40 = $84,000 due

Q10 Q3 $60,000 x 1.40 = $84,000 due

Ladder to Generate Cash Flow $60K x 8Qs = $6,000 / month

InvestDate principal

Liquiddate

Profit=

20%x2yearsCapitalGainsTax=25% AfterTaxProfit

MonthlyIncome

ReinvestPrincipal

Q1 $ 60,000 Q9 $ 24,000 $ 6,000 $ 18,000 $ 6,000 $ 60,000

Q2 $ 60,000 Q10 $ 24,000 $ 6,000 $ 18,000 $ 6,000 $ 60,000

Q3 $ 60,000 Q11 $ 24,000 $ 6,000 $ 18,000 $ 6,000 $ 60,000

Q4 $ 60,000 Q12 $ 24,000 $ 6,000 $ 18,000 $ 6,000 $ 60,000

Q5 $ 60,000 Q13 $ 24,000 $ 6,000 $ 18,000 $ 6,000 $ 60,000

Q6 $ 60,000 Q14 $ 24,000 $ 6,000 $ 18,000 $ 6,000 $ 60,000

Q7 $ 60,000 Q15 $ 24,000 $ 6,000 $ 18,000 $ 6,000 $ 60,000

Q8 $ 60,000 Q16 $ 24,000 $ 6,000 $ 18,000 $ 6,000 $ 60,000

Q9 $ 60,000 Q9 $ 24,000 $ 6,000 $ 18,000 $ 6,000 $ 60,000

Q10 $ 60,000 Q10 $ 24,000 $ 6,000 $ 18,000 $ 6,000 $ 60,000

Q11 $ 60,000 Q11 $ 24,000 $ 6,000 $ 18,000 $ 6,000 $ 60,000

Q12 $ 60,000 Q12 $ 24,000 $ 6,000 $ 18,000 $ 6,000 $ 60,000

Q13 $ 60,000 Q13 $ 24,000 $ 6,000 $ 18,000 $ 6,000 $ 60,000

Q14 $ 60,000 Q14 $ 24,000 $ 6,000 $ 18,000 $ 6,000 $ 60,000

Q15 $ 60,000 Q15 $ 24,000 $ 6,000 $ 18,000 $ 6,000 $ 60,000

Q16 $ 60,000 Q16 $ 24,000 $ 6,000 $ 18,000 $ 6,000 $ 60,000

Ladder to Generate Net Worth $60K x 8Q repositioned 15 times =

Q1 $ 60,000 Q9 $ 24,000 $ 6,000 $ 18,000 $ 78,000

Q2 $ 60,000 Q10 $ 24,000 $ 6,000 $ 18,000 $ 78,000

Q3 $ 60,000 Q11 $ 24,000 $ 6,000 $ 18,000 $ 78,000

Q4 $ 60,000 Q12 $ 24,000 $ 6,000 $ 18,000 $ 78,000

Q5 $ 60,000 Q13 $ 24,000 $ 6,000 $ 18,000 $ 78,000

Q6 $ 60,000 Q14 $ 24,000 $ 6,000 $ 18,000 $ 78,000

Q7 $ 60,000 Q15 $ 24,000 $ 6,000 $ 18,000 $ 78,000

Q8 $ 60,000 Q16 $ 24,000 $ 6,000 $ 18,000 $ 78,000

Q9 $ 78,000 Q17 $ 31,200 $ 7,800 $ 23,400 $ 101,400

Q17 $ 101,400 Q25 $ 40,560 $ 10,140 $ 30,420 $ 131,820

Q25 $ 131,820 Q33 $ 52,728 $ 13,182 $ 39,546 $ 171,366

Q33 $ 171,366 Q41 $ 68,546 $ 17,137 $ 51,410 $ 222,776

Q41 $ 222,776 Q49 $ 89,110 $ 22,278 $ 66,833 $ 289,609

Q49 $ 289,609 Q57 $115,843 $ 28,961 $ 86,883 $ 376,491

Q57 $ 376,491 Q65 $150,596 $ 37,649 $112,947 $ 489,438

Q65 $ 489,438 Q73 $195,775 $ 48,944 $146,832 $ 636,270

Q73 $ 636,270 Q81 $254,508 $ 63,627 $190,881 $ 827,151

Q81 $ 827,151 Q89 $330,860 $ 82,715 $248,145 $ 1,075,296

Q89 $1,075,296 Q97 $430,118 $107,530 $322,589 $ 1,397,885

Q97 $1,397,885 Q105 $559,154 $139,789 $419,366 $ 1,817,251

Q105 $1,817,251 Q113 $726,900 $181,725 $545,175 $ 2,362,426

Q113 $2,362,426 Q121 $944,970 $236,243 $708,728 $ 3,071,154

Ladder to Generate IRA Wealth $60K x 8Q repositioned 15 times =

InvestmentDate Principal ReinvestmentDate Profit=20%x2years ReinvestmentCapitalQ1 $ 60,000 Q9 $ 24,000 $ 84,000

Q2 $ 60,000 Q10 $ 24,000 $ 84,000

Q3 $ 60,000 Q11 $ 24,000 $ 84,000

Q4 $ 60,000 Q12 $ 24,000 $ 84,000

Q5 $ 60,000 Q13 $ 24,000 $ 84,000

Q6 $ 60,000 Q14 $ 24,000 $ 84,000

Q7 $ 60,000 Q15 $ 24,000 $ 84,000

Q8 $ 60,000 Q16 $ 24,000 $ 84,000

Q9 $ 84,000 Q9 $ 33,600 $ 117,600

Q17 $ 117,600 Q25 $ 47,040 $ 164,640

Q25 $ 164,640 Q33 $ 65,856 $ 230,496

Q33 $ 230,496 Q41 $ 92,198 $ 322,694

Q41 $ 322,694 Q49 $ 129,078 $ 451,772

Q49 $ 451,772 Q57 $ 180,709 $ 632,481

Q57 $ 632,481 Q65 $ 252,992 $ 885,473

Q65 $ 885,473 Q73 $ 354,189 $ 1,239,663

Q73 $1,239,663 Q81 $ 495,865 $ 1,735,528

Q81 $1,735,528 Q89 $ 694,211 $ 2,429,739

Q89 $2,429,739 Q97 $ 971,896 $ 3,401,635

Q97 $3,401,635 Q105 $ 1,360,654 $ 4,762,289

Q105 $4,762,289 Q113 $ 1,904,915 $ 6,667,204

Q113 $6,667,204 Q121 $ 2,666,882 $ 9,334,086

Ladder to Generate Down Payment Machine $60K x 8Qs

InvestDate principal

Liquiddate

Profit=

20%x2yearsCapitalGainsTax=25% AfterTaxProfit

ReinvestPrincipal

Q1 $ 60,000 Q9 $ 24,000 $ 6,000 $ 18,000 $ 60,000

Q2 $ 60,000 Q10 $ 24,000 $ 6,000 $ 18,000 $ 60,000

Q3 $ 60,000 Q11 $ 24,000 $ 6,000 $ 18,000 $ 60,000

Q4 $ 60,000 Q12 $ 24,000 $ 6,000 $ 18,000 $ 60,000

Q5 $ 60,000 Q13 $ 24,000 $ 6,000 $ 18,000 $ 60,000

Q6 $ 60,000 Q14 $ 24,000 $ 6,000 $ 18,000 $ 60,000

Q7 $ 60,000 Q15 $ 24,000 $ 6,000 $ 18,000 $ 60,000

Q8 $ 60,000 Q16 $ 24,000 $ 6,000 $ 18,000 $ 60,000

Q9 $ 60,000 Q9 $ 24,000 $ 6,000 $ 18,000 $ 60,000

Q10 $ 60,000 Q10 $ 24,000 $ 6,000 $ 18,000 $ 60,000

Q11 $ 60,000 Q11 $ 24,000 $ 6,000 $ 18,000 $ 60,000

Q12 $ 60,000 Q12 $ 24,000 $ 6,000 $ 18,000 $ 60,000

Q13 $ 60,000 Q13 $ 24,000 $ 6,000 $ 18,000 $ 60,000

Q14 $ 60,000 Q14 $ 24,000 $ 6,000 $ 18,000 $ 60,000

Q15 $ 60,000 Q15 $ 24,000 $ 6,000 $ 18,000 $ 60,000

Q16 $ 60,000 Q16 $ 24,000 $ 6,000 $ 18,000 $ 60,000

Down Payment Use LADDERED group investments to

generate CASH for regular down payments on individual properties without depleting principal.

$72,000

Down Payment Machine

$360,000 $360,000 $360,000 $360,000 $360,000 $360,000

$ 72,000 $ 72,000 $ 72,000 $ 72,000 $ 72,000 $ 72,000

1 2 3 4 5 6

What about Equity Optimization on the Properties?

Down Payment Machine

Laddered exit points to hit a cash flow target

$0

$75,000

$150,000

$225,000

$300,000

1 2 3 4

Series1

InvestmentTerm Principal Profitat20%ROI4 $ 58,750 $ 47,000 3 $ 78,334 $ 47,000 2 $ 117,500 $ 47,000 1 $ 235,000 $ 47,000

TotalPrincipal $ 489,584

If you have questions about anything in this presentation please contact

David Campbell(707) 373-9966

David@HassleFreeCashFlowInvesting.com

disclaimers

NOT AN OFFER TO SELL SECURITIES: This is neither an offer to sell nor an offer to buy or securitize securities.

CONFIDENTIAL: The information contained in this presentation is a confidential communication for the intended recipient. If you are not the intended recipient, you are notified that any review, use, dissemination, distribution or copying of this presentation is strictly prohibited. This presentation and its educational content are the property of Fourth Dimension Real Estate, Inc. All rights reserved.

CONSULT A PROFESSIONAL: The information contained in this presentation should not be deemed as personalized investment advice. Although the educational materials herein address general investment concepts, they are not intended to replace qualified real estate, legal and/or tax advice. This investment is not suitable for all investors. Prospective investors are encouraged to review any investment decision with qualified investment, legal and/or tax advisors.

disclaimers

NO GUARANTEE OF ACCURACY: While reasonable efforts have been made to include accurate information in this presentation, errors or omissions will occur. No guarantee is expressed or implied regarding the accuracy of any information contained herein, including but not limited to statements regarding financial performance, valuations, actual or potential income, business strategy, legal effect, availability or suitability of financing strategies, and plans and objectives of future operations. All information in this presentation is provided "as is" and is subject to change without prior notice. Prospective investors are responsible for evaluating the accuracy, completeness or usefulness of any information or content available in this presentation. The Presenter and its affiliates expressly disclaim any liability, whether in contract, tort, strict liability or otherwise, for any direct, indirect, incidental, consequential, punitive or special damages arising out of or in any way connected with your access to or use of this presentation, and/or any other information provided by Presenter or its affiliates.

disclaimers

FORWARD LOOKING STATEMENTS: The Presenter, its related companies, this written presentation, and its related documents contain forward-looking statements and information related to future events. These statements may be identified by words such as “expects,” “looks forward to,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will,” “project”, “forecasted” or words of similar meaning. Such statements are based on assumptions that contain a high degree of subjectivity and are, therefore, subject to certain risks and uncertainties. Changes in general economic and business conditions, developments in the financial markets, including fluctuations in interest rates, inflation or deflation rates, and many other unforeseen risk factors will cause your actual investment results to vary materially from these forward-looking statements as expected, anticipated, intended, planned, believed, sought, estimated or projected. Presenter does not intend or assume any obligation to update or revise these forward-looking statements in light of developments which differ from those anticipated.