REAL ESTATE INVESTMENT RESEARCH REPORT

J u st $ 7 ,0 0 0 C a sh a t C lo s e
$25,000 Instant Equity 2 Years Free Management & HOA
St. Robert, Missouri
Cash-Flow, Equity and Appreciation

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Your Premier Source For Real Estate Investments

INVESTMENT HIGHLIGHTS
• • • • • • • • • • • Positive Cash-Flow Even With No Down Payment! New- and Pre-Construction Duplexes Rent Ready (Washer, Dryer, Blinds, Refrigerator, Microwave, and Stove) Approx. 1,300 Square Feet (Per Side) $925 Per Side Expected Rent ($1,850 total) 3 Bedroom, 2 Full Baths 1 Car Garage Plus 2 Cars In Driveway Brick Front Community Center Fitness Center Playground Area

FAST FACTS
Investment Strategy: Location: Property Type: Transaction Type: Market Value: Purchase Price: Instant Equity: Cash Flow: Capitalization Rate:
Buy & Hold St. Robert, Missouri Duplex (3 bed, 2 bt) Pre-Construction $230,000 $205,000 $25,000 (11.0%) $2,689 (year 1) 8.3% (year 1) Zero Down! Only $7,000 total cash at close. 2 years FREE management and HOA. No mortgage payments during construction. Over $2,700 per year positive cash flow! Large rental demand due to base expansion. 100% turn-key tenant-ready homes. New playground, fitness & community center. Just a $2,500 refundable deposit required. Quantities are limited. Reserve today!

The DealGrader™ Score measures the investment quality of a real estate investment. It is designed to give you an overall snapshot of the profitability and investment risk in the form of an easy to understand score (out of 10). DealGrader™ is a proprietary algorithm that uses a blend of over 15 different variables including cash-flow, existing equity, internal rates of return (IRR), job growth, market stability, market absorption, macro economic factors, and others.

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CASH FLOW and EQUITY ACCUMULATION
CASH-FLOW
Gross Rental Income Initial Vacancy Rental Impact Vacancy Allowance Total Operating Income Property Taxes Insurance Property Management Other: Lawn Care Other: PMI Other: Water/Sewer/Trash Other: HOA Dues Total Operating Expense
Loan Payments (Principle & Interest)

0% Down Payment Model
St. Robert, MO - Duplexes

YEAR 1 $22,200 $0 ($666) $21,534 $1,500 $720 $0 $240 $2,132 $0 $0 ($4,592) (1,296) ($14,253)

YEAR 2 $22,755 ($683) $22,072 $1,515 $727 $0 $245 $1,845 $0 $0 ($4,332) ($15,549)

YEAR 3 $23,324 ($700) $22,624 $1,530 $734 $1,357 $250 $1,845 $0 $240 ($5,957) ($15,549)

YEAR 4 $23,907 ($717) $23,190 $1,545 $742 $1,391 $255 $0 $0 $245 ($4,178) ($15,549)

YEAR 5 $24,505 ($735) $23,770 $1,561 $749 $1,426 $260 $0 $0 $250 ($4,246) ($15,549)

YEAR 10 $27,725 ($832) $26,893 $1,641 $787 $1,614 $287 $0 $0 $276 ($4,604) $0 ($15,549)

YEAR 10 $27,725 ($832) $26,893 $1,641 $787 $1,614 $287 $0 $0 $276 ($4,604) ($15,549)

YEAR 15 $31,368 ($941) $30,427 $1,724 $828 $1,826 $317 $0 $0 $304 ($4,999) ($15,549)

YEAR 20 $35,490 ($1,065) $34,425 $1,812 $870 $2,066 $350 $0 $0 $336 ($5,433) ($15,549)

CASH FLOW (Before Tax)
Value of negative operating cash flows Depreciation Loan Interest Subtotal Taxable Income Tax Bracket Savings

$2,689
0 $5,964 $14,253 $20,217 ($3,275) $1,179

$2,191
0 $5,964 $15,549 $21,513 ($3,772) $1,358

$1,119
0 $5,964 $15,549 $21,513 ($4,845) $1,744

$3,463
0 $5,964 $15,549 $21,513 ($2,501) $900

$3,975
0 $5,964 $15,549 $21,513 ($1,989) $716

$6,740
$5,964 $15,549 $21,513 $776 $0

$6,740
0 $5,964 $15,549 $21,513 $776 $0

$9,880
0 $5,964 $15,549 $21,513 $3,916 $0

$13,443
0 $5,964 $15,549 $21,513 $7,480 $0

36%

CASH FLOW (After Tax)

$3,868

$3,549

$2,863

$4,363

$4,691

$6,740

$6,740

$9,880

$13,443

EQUITY ACCUMULATION
Property Value minus Loan Amount plus Reserve Account Balance YEAR 1 $241,500 $205,000 $0 YEAR 2 $253,575 $205,000 $0 YEAR 3 $266,254 $205,000 $0 YEAR 4 $279,566 $205,000 $0 YEAR 5 $293,545 $205,000 $0 YEAR 10 $374,646 $205,000 $0 YEAR 10 $374,646 $205,000 $0 YEAR 15 $478,153 $205,000 $0 YEAR 20 $610,258 $205,000 $0

EQUITY PROFIT (WEALTH)

$36,500

$48,575

$61,254

$74,566

$88,545

$169,646

$169,646

$273,153

$405,258

Capitalization (Cap) Rate Internal Rate of Return (IRR) Return on Investment (ROI)

8.3% 3,403% 524%

8.7% 525% 697%

8.1% 254% 879%

9.3% 167% 1,070%

9.5% 125% 1,270%

10.9% 63% 2,434%

10.9% 63% 2,434%

12.4% 61% 3,919%
v 4.1

14.1% 59% 5,814%
Updated: 7.07.08

* See detailed Purchase Parameters and Assumptions on next page.

CASH FLOW and EQUITY ACCUMULATION
INTERNAL RATE OF RETURN (IRR)
(10 Year)
600% 3,000%

0% Down Payment Model
St. Robert, MO - Duplexes

TOTAL RETURN ON INVESTMENT (ROI)
(10 Year)

525%
500% 2,500%

2,434% 2,178%

400%

2,000%

1,934% 1,702% 1,481% 1,270% 1,070% 879% 697% 524%

300%

254% 167% 125% 102% 87% 76%

1,500%

200%

1,000%

100%

69%

63%

500%

0% YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10

0% YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10

CASH-FLOW (AFTER TAX)
(10 Year)
$8,000 $180,000

TOTAL EQUITY
(10 Year)
$169,646 $151,805 $134,815 $118,633 $103,222
$100,000 $80,000

$7,000

$6,740 $6,159 $5,726 $5,372 $5,027 $4,691

$160,000 $140,000 $120,000

$6,000

$5,000

$4,363
$4,000

$3,868

$88,545 $74,566 $61,254

$3,549 $2,863
$60,000

$3,000

$48,575 $36,500

$2,000

$40,000 $20,000 $0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10

$1,000

$0

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

YEAR 6

YEAR 7

YEAR 8

YEAR 9

YEAR 10

Summary Acquisition Information
Current Market Value: Purchase Price: Total Loan Amount: $230,000 $205,000 $205,000

Purchase Parameters and Assumptions
Current Market Value: Purchase Price: Down Payment: First Loan: Loan Interest Rate: Second Loan: Loan Interest Rate (2nd): Closing Costs: PMI Mortgage Insurance: $230,000 $205,000 0.0% $205,000 6.500% $0 0.000% 3.4% $153.75 Gross Monthly Rent: Vacancy Allowance: Initial Vacancy (months): Monthly Property Tax: Monthly Insurance: Monthly HOA: Monthly Lawn Care: Monthly Water/Sewer/Trash: Property Management: $1,850 3.0% 0 $125 $60 $20 $20 $0 6%

Annual Increases (%)
Appreciation: Rent Increase: 5.0% 2.5%

Down Payment: Closing Costs (est.): Reserve Account: Buyer Credits: Total Investment:

$0 $6,970 $0 $0 $6,970

Property Tax: Insurance: HOA: Lawn Care: Water/Sewer: Depreciation:

1.0% 1.0% 2.0% 2.0% 2.0% 27.5

DISCLAIMER: The information in this "Cash Flow and Equity Accumulation" worksheet is for estimation purposes only. All information should be independently verified. Consult a licensed tax advisor and/or attorney before making any purchase or sale decision. All figures are projections unless otherwise indicated. No guarantee is made as to its accuracy or reflection of performance.

ST. ROBERT, MISSOURI
St. Robert is known as the “business hub” of Pulaski County. The city is relatively young but it has achieved more than most cities since its birth, living up to its motto “Grow With Us.” St. Robert business district continues to grow and is the home of many national chain stores, hotels and restaurants in addition to many specialty small businesses. The City owns and operates all of its utilities, including natural gas and runs a model solid waste transfer station. St. Robert has recently constructed a new city hall and police complex. Come see what we mean when we say, “Grow With Us”.

LOCATION
• • • • • Located on Interstate 44. Military Based community (Fort Leonard Wood). Less than 1 hour away from Missouri wine country and Lake of the Ozarks 1 ½ hour from St. Louis, and 2 ½ hours from Branson. 4 Regional Hospitals.

POPULATION GROWTH
The City of St. Robert has experienced rapid growth, which has primarily occurred in the last five years. The population has increased from 1,730 (1990 Census) to an official population of 2,760 (2000 Census), an increase of over 59%. We project that this population trend will continue for the next 5-10 years. The City serves a far greater population base which includes: Fort Leonard Wood (Population=28,937) and Waynesville (Population=3,507). In addition to the city’s population increase, there has been a corresponding increase in commercial construction as St. Robert is becoming the commercial and retail hub of our region.

OTHER
• • • • Average officer rank is Major ($65-75k/year). Average enlisted rank is Staff Sergeant ($33-35k/year) plus housing. Gold Star awarded school district (only one of three in state). 3 year old High School is being expanded already. 20 minutes from University of Missouri-Rolla (top engineering and mining school).

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FORT LEONARD WOOD
• • • • • • • • Army, Navy, Marines, and Air Force. Army Officer and Enlisted Corp of Engineers School for entire United States. Over 60,000 service members graduate from Fort Leonard Wood every year. Training base is over 100,000 acres. Fort Leonard Wood is a training base. Fort Leonard Wood ranked 35 out of 97 based on value to Department of Defense and ability to support the future military IAW 2005 BRAC Commission. 50% of retirees stay in this area. 2005 house value increase = 9%.

COMMUNITY PROFILE
Fort Leonard Wood is home to the U.S. Army MANSCEN or Maneuver Support Center, which hosts the Army Engineer, Military Police and Nuclear, Biological and Chemical Schools. Fort Leonard Wood is a state of the art training facility on 100 square miles of rugged Ozark wilderness. Fort Leonard Wood trains over 55,000 military and civilian people each year. Throughout its growth, Fort Leonard Wood’s soldiers and their family members have enjoyed an outstanding quality of life, A new multi-million Davidson Fitness Center, state of the art Child Development Center, superb hospital and many other key facilities and amenities, help maintain a outstanding quality of life for the residents of the Fort Leonard Wood. MANSCEN Center. Fort Leonard Wood, originally the home of the Army engineers has been expanded with the addition of the Military Police and Chemical schools to form the Maneuver Support Center (MANSCEN). MANSCEN develops concepts, doctrine, force structure, material requirements and experiments to ensure the vitality of the chemical, engineer and military police organizations. Growth Potential. Fort Leonard Wood as one of the premier military bases in the country, has excellent growth potential to attract additional military and homeland security missions. Fort Leonard Wood has also been designated as a center for homeland security excellence. The post is also well positioned to take advantage of future BRAC (Base Realignment and Closure) moves and to attract additional Department of the Army and Department of Defense missions to the base. Joint Service Post. Not only does Fort Leonard Wood train Army soldiers, it trains all branches of our Nation’s military to include: Navy, Marines and the Air Force. Fort Leonard Wood is home to the largest Marine detachment not stationed on a Marine base. It also trains Navy and Air force soldiers and provides training to the civilian law enforcement community. Science and Technology Industrial Park. One new concept featuring a partnership between the military and the University of Missouri system is the new Science and Technology Industrial park located on the Fort Leonard Wood military installation.

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LOCATION MAPS

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Builder Specification Sheet
Specificities for 3 Bedroom Duplexes Location: Hunter’s Ridge Sub-division, St. Robert, MO
Dated 7/8/08

Section 1: Concrete a. All footings to be dug 18” deep with 4000 psi concrete poured. All footings will have 2 rows of ½” rebar installed in them. With ½” rebar placed in footings to tie into slaps. There will be 2 concrete test pulled on each footing to be broke in 7 days as well as 28 days. The test at 7 days will have to be a break of no less than 2000 psi, the test at 28 days will have to break at 4000 psi. Slabs formed with 2x12 on top of footings There will be a thicken edge footing poured no less than 6” from the edge 8” of 1” clean rock to be placed in the slap 6 mil poly will be placed on top of 1” clean rock ½” rebar will be placed on top of 6 mil poly on 2’ centers There will be 4 concrete test pulled on each slap. The test at 7 days will have to test no less than 2000 psi, the test at 28 days will have to test 4000 psi. Concrete to be no less than 4” thick with a saw joint separating every unit

b. c. d. e. f. g. h.

Sidewalks and Driveways a. b. All sidewalks to be 4” thick with 2 rows of ½” rebar installed, There will be a thicken edge where concrete meets sidewalk Concrete to be 4000 psi

Section 2: Culverts and water control a. b. Culverts will be installed where needed to shed water off parking lot as well as keeping it away from buildings All downspout drains to be installed in a way to get water away from building

Section 3: Termite Treatment a. b. All buildings to be treated before concrete is installed Termite treatment to carry a 5 year warranty

Section 4: Plumbing a. b. All underground plumbing to be dug in below concrete level to prevent freezing All plumbing to carry a 5 warranty on parts as well as labor

Section 5: Framing a. b. c. d. e. f. g. h. All exterior walls to be #2, 2x4 studs with ACQ plate meeting the concrete. Walls to be framed 16” on center Interior walls to be 16” on center Upper unit floor to be constructed with TGI floor system with ¾ OSB decking All decking to be glued and nailed Roof system to be made of yellow pine trusses with 7/16 OSB decking Trusses to be placed 2’ on center Overhangs on back and sides to be 16”, Front porch to be min of 2’

i.

Sheeting to consist of 7/16 OSB

Section 6: Windows / Doors a. b. c. d. e. All windows to be maintenance free vinyl single hung to meet excess Entry doors to be 6 panel insulated steel doors with peep holes Entry doors to have knob and dead bolt locks, keyed alike Front and garage door to be keyed alike Windows to have mini blinds installed on the inside

Section 7: Roofing, flashing and gutter a. b. c. d. e. All shingles to be 30 year series Drip edge to be installed on all fascia boards Gutter to be 5” with 3x4 downspout placed to drain roof area 15 lb felt will be placed on sheeting before shingles All roof penetrations to be flashed

Section 8: Electrical a. b. All electrical work to meet code Switches and plugs to located for ease of use

Section 9: HVAC a. b. c. All units to be 1 ½ ton, manufacturer will be Goodman series All units to carry a 5 year warranty Registers to be placed for best air flow

Section 10: Drywall a. b. c. d. e. Walls to be ½ “ hung to prevent as many joints as possible Garage ceiling to be hung with 5/8 sheet rock Sheetrock in garage taped with one coat (no texture) All drywall to meet code All sheetrock to be textured (see c)

Section 11: Paint and finishes a. b. c. d. e. Wall and ceiling paint to be shell white by Pittsburg Paint Company Trim to be a off white semi gloss (for ease of cleaning) Check floor plans for brick placement Vinyl siding to be installed above brick to soffit Soffit to be alum. series to match gutter

Section 12: Flooring a. b. All areas that require flooring (rooms with water): kitchen, bathrooms, utility room are to be vinyl All areas that require carpet: living room and bedroom to be carpet of 30 oz

Section 13: Cabinets a. Cabinets to be manufactured by Kitchen Kraft or equal.

b. c.

Cabinets to be installed in kitchen area with counter tops to be colored to best accent units colors Vanities installed in bathroom

Section 14: Appliances a. b. c. All appliances to be manufactured by Whirlpool and to consist of the follow: Refrigerator, dishwater, garbage disposal, microwave, ceramic top stove. Units to have washer and dryers

Section 15: Light fixtures and shelving a. b. c. Light fixtures to be brushed nickel finish Ceiling fans in living room and master bedroom Shelving installed in all closets to be maintenance free

Section 16: Insulation a. b. c. d. All walls to be insulated with R13 batts Bathroom walls to be insulated with R11 to prevent noise going from unit to unit Ceilings on top floor R30 Vents installed for proper ventilation

Section 17: Landscaping a. b. c. Top soil to be hauled in and spread to insure grass to grow Sod to be installed on front of buildings with seed and straw on sides and backs Shrubs and trees installed along fronts of building

Section 18: Management of project a. Management team to consist of the following Construction Manager Construction Foreman Construction Labor Office Staff All material and shipments to tracked to project All invoices approved and submitted for payment Waste control Quality control Cost tracking to budget

b. c. d. e. f.

HOW CAN I RESERVE A PROPERTY?
Fax or mail the Reservation Form attached.

Phone: Fax: Email:

(800) 611-3060 (866) 611-3060 Deals@NoradaRealEstate.com

Reservation does not guarantee final unit selection which is subject to availability at time of pre-approval.

FLY & BUY REBATE!
For those investors interested in flying down to visit the project site and “kick the tires”, we are offering you a Fly-and-Buy rebate of up to $1,000 to help cover the cost of your flight and accommodations for your trip. Your rebate will be paid by check upon close of escrow. This incentive is offered to you exclusively by Norada Real Estate Investments!

DISCLAIMER NOTICE
The materials and information contained in this document are provided on an “AS IS” basis and “AS AVAILABLE” basis, without representations or warranties of any kind. Norada Real Estate expressly disclaims any and all such representations and warranties, either expressed or implied, including without limitation warranties of title, noninfringement, or implied warranties of merchantability or fitness for a particular purpose. Norada Real Estate does not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. Norada Real Estate may make changes to this material at any time without notice. While Norada Real Estate strives to keep the information in these materials accurate and current, Norada Real Estate cannot guarantee the accuracy, completeness or timeliness of the information. Information within these materials may contain technical inaccuracies or typographical errors. Norada Real Estate reserves the right to make changes, corrections and/or improvements to the information contained within these materials at any time, without notice. This is not an offering for securities. We are in a market with rapidly changing interest rates. A steady rise in interest rates could alter your cash flow. As with any large purchase, it is highly recommended that you perform your own due diligence. There are no guarantees made and your returns could be higher, lower, or you could lose money. The length of time to build your property can vary depending on weather, city inspections, etc. The California Department of Real Estate has not inspected, examined, or qualified this offering.

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Revised: April 1, 2008

Reservation / Pre-Approval Form
St. Robert, MO Duplex INVESTMENT NAME: _______________________________

INDIVIDUAL INFORMATION
Name: Address: Phone: Social Security #: Email:
Print clearly First Street Home Work Middle City Last State Cell Zip

Date of Birth:

Present Employer: Years Employed: My Stated Income: $
/yr

Position or Title: I have been self-employed in the same line of work for the past 2 years. I can verify income. (Your income is not verified with a Stated Income loan)

Previous Employer: Years Employed:

(If less than 2 years with present employer)

Position or Title:

FINANCIAL INFORMATION
Personal Checking Balance: Money Market / Liquid Assets: Home Equity Credit Line Available: $ $ $ Personal Savings Balance: Retirement Accounts (401k, IRA’s): Other Liquid Assets: Own Yes Yes Yes Rent No No No Don’t know $ $ $

Do you own or rent your current residence? To my knowledge my FICO score is over 660? Are you a US citizen or Permanent Resident? Have you filed for Bankruptcy in the past 7 years?

I hereby grant permission for Norada Real Estate Investments, and its participating lenders and mortgage brokerage firms including but not limited to Capital Direct Lending, and/or their assigns (“Broker”) to obtain all information deemed necessary to process my mortgage loan application. This information includes, but is not limited to, my past and present employment status, my deposit accounts, my past and present consumer credit record, my mortgage records and/or my rental records. You are consenting to be contacted by up to 3 mortgage providers either by telephone, email or mail based on the information you have provided, even if you have previously listed yourself on any private, state or federal Do-Not-Call List. You understand that the providers may maintain the information you submitted to us whether you elect to use their services or not. In the event you no longer want to receive communications from a provider, you agree to notify the provider directly. Broker, their successors and/or assigns, as their interest may appear, may reverify the information or documents used in processing this loan. I hereby authorize release of information to the lender or its designee, by my employer, bank, accountant, mortgage lender, landlord, creditors and other sources to verify the accuracy of documents and credit information the lender uses in deciding whether to approve my mortgage loan application. I also grant permission to use photographic copies of this form containing my signature to obtain any information/documentation authorized hereby.

X___________________________________ Signature

_____________________ Date

Fax this form to (866) 611-3060 or Mail to Norada Real Estate, 30251 Golden Lantern, Suite E261, Laguna Niguel, CA 92677

_____________________________________________________________________________
Privacy Act Notice: The information to be obtained will be used by the lender and any federal agency insuring, guaranteeing or purchasing the mortgage to determine whether you qualify as a prospective borrower under the lender’s and agency’s underwriting standards. The information will not be disclosed outside the lender and the federal agency without your consent except to the person or company verifying the information including, but not limited to your employer, bank, lender and any other credit reference as needed to verify other credit information, but if you do not, your mortgage application may be delayed or rejected. USA Patriot Act: The Patriot Act requires that we obtain the full “Date of Birth” (month, date and year) for all loan applicants.
All programs are subject to change without notice. This is not a guaranteed offer to lend and some interested applicants may not qualify. Occasionally additional documentation will be required. Completing this form does not obligate you in any way.