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Kevin Strasser WestOne Properties

Real Estate Service Provider


Executive Summary
Advantages of Investing in Real Estate
Pittsburghs Posed for Growth
Key Investment Considerations
Experienced Management Team
Investment Process
Synergy Capital Investment Portfolio
Investment Risks
Why Invest in Real Estate?
Diversification
Stocks Bonds
help grow your portfolio bring in income

International investments
Real estate
provide growth and help maintain
provides a hedge against inflation and
buying power in an increasing
has a low "correlation" with stocks
globalized world

Cash
gives you and your portfolio security
and stability
Stocks vs. Real Estate
Stock Market Private Lending for Real Estate

Intangible Asset Tangible asset you can visit


Uninsured Secured by mortgage deed
Invest at market price Collateral is insured
Returns are unknown Collateralized below market value
Return subject to market conditions (equity position)
Liquid Asset Returns are known, fixed and agreed
upon
What about REITs? Illiquid asset
Investment Comparison

Barclays
Aggregate US Treasury
Russell Bond T-Bill Synergy
Inflation S&P 500 2000 Index 10 Yr Capital

5 Year 1.80% 4.83% 6.83% 5.89% 5.55% -

3 Year 2.06% 11.66% 9.66% 5.73% 8.28% 7.00%

1 Year 1.75% 15.60% 15.97% 3.86% 5.02% 7.00%


Why Pittsburgh?
Pittsburgh Accolades
Americas Most Livable City, The Economist and Forbes.com
Best Commercial Real Estate Market, WestOne Service
North American City of the Future, fDi
Economically Strongest U.S. Metros, The Brookings Institution
Top 10 City for Job Growth, Forbes.com
Americas Best Housing Market, Forbes.com
Best Cities for Recent Graduates, Huffington Post
Safe Havens in Real Estate, Kiplinger Magazine
Pittsburgh Population by Age
65+ yrs. Under 10 yrs.
17% 11%
10-17 yrs.
10%

55-64 yrs. 18-24 yrs.


14% 9%

25-34 yrs.
11%
45-54 yrs.
16%
35-44 yrs.
12% Source: 2010 U.S. Census Bureau
Metro Area Violent Crime Property Crime
Pittsburgh, PA 319.5 1,975.6

Crime Index 2010 Boston, MA


San Diego, CA
Raleigh, NC
406.0
378.5
242.6
2,189.5
2,206.4
2,442.6
(rate per 100,000 inhabitants) Richmond, VA 269.3 2,542.9
Washington, DC 380.0 2,550.6
Philadelphia, PA 551.8 2,662.7
Denver, CO 337.1 2,771.4
Cleveland, OH 415.7 2,835.6
Minneapolis, MN - 2,894.2
Portland, OR 268.5 2,929.0
Detroit, MI 635.4 2,950.3
Baltimore, MD 685.3 3,090.7
St. Louis, MO 497.4 3,159.5
Cincinnati, OH 314.1 3,340.7
Milwaukee, WI 464.1 3,360.3
Atlanta, GA 413.8 3,462.6
Kansas City, MO 461.3 3,476.1
Phoenix, AZ 370.8 3,534.6
Indianapolis, IN 627.9 3,827.1
Charlotte, NC 528.2 3,902.2
Seattle, WA 353.0 3,905.8
Source: FBI Uniform Crime Report 2010
Pittsburgh Key Economic Sectors

Advanced Manufacturing Energy

Financial & Business Health Care & Life


Services Sciences

Information &
Communications
Technology
Median Sales Price of Average Asking Monthly
Existing Single-Family Apartment Rent
Homes (4Q 2011) (1Q, 2012)
$350,000 $2,500

$300,000
$2,000
$250,000

$1,500
$200,000

$150,000
$1,000

$100,000
$500
$50,000

$- $-

Source: The NAHB/Wells Fargo Housing Opportunity Index: Complete History by Metropolitan Area (1991-Current)
Investment Opportunity
Synergy Capital Investment Conditions:

Three-Year Commitment
Management Fixed 7% Annual Return
Investors
Team

Residential Commercial Private Lending


Three-Year Return
Compounded
Investment Annual 3-Year Annual Aggregate
Amount Interest Rate Return Return Annual Return

$ 25,000 7% $ 5,626 $ 1,750 $ 5,250

$ 50,000 7% $ 11,252 $ 3,500 $ 10,500

$ 100,000 7% $ 22,504 $ 7,000 $ 21,000

$ 250,000 7% $ 56,261 $ 17,500 $ 52,500

$ 500,000 7% $ 112,522 $ 35,000 $ 105,000

$ 750,000 7% $ 168,782 $ 52,500 $ 157,500

$ 1,000,000 7% $ 225,043 $ 70,000 $ 210,000


Key Investment Considerations
Experienced Management Team

Value Added Strategy

Unique Deal Flow

Capital Preservation

Risk Mitigation

Alignment of Interests
Experienced Management Team
Josh Adamek Managing Partner
Ten year track record
2003-2010 built personal portfolio of rental properties
Full-time since 2010
Has been the principal in over 100 transactions
Vice President of ACRE of Pittsburgh
Scott Hastings Managing Partner
Eleven years of experience, completing over 500 transactions
Accumulated 50 rental units in first year of investing
2002-2007 was the 2nd largest wholesaler in Pittsburgh with over 200 transactions
2008-2010 opened Pittsburgh regional office for a national private lending company
2010-2011 started own investment company and bought, renovated, sold 30 properties
Reputable real estate agent
Mentor to Pittsburgh area real estate investors
Key Investment Considerations
Experienced Management Team

Value Added Strategy

Unique Deal Flow

Capital Preservation

Risk Mitigation

Alignment of Interests
Commercial Investment Process

Sourcing Evaluating
Due Diligence Renovating Selling Closing
Properties Deals

Average Investment Period from Due Diligence to Closing:


18 Months
Private Lending Process

Sourcing Evaluating Due


Lending Loan Payoff
Borrowers Deals Diligence

Average Rollover Rate:


8 Months
Invest with Synergy Capital
Real estate is a tremendous opportunity to add value and diversification to
investment portfolios and outperform industry averages
Information-intensive aspect of real estate investing favor experienced and well
connected investors like our local firm
Specialized managers with excellent market knowledge add enormous value
Invested management team encourages thoughtful acquisitions, careful oversight,
and timely dispositions
Management team garners a margin of safety by paying a low purchase price in
which properties are acquired at a discount
Exhibit 1: Self-Directed IRA or 401(k)
All investments must be arms length, meaning the buyer and seller are acting in their own self-interest and there is no influence from
other parties.
You cannot sell or buy property from a disqualified individual. Disqualified individuals include you, your spouse, your parents, your kids
and/or their spouses, grandchildren, grandparents, investment advisors, fiduciaries and entities where the disqualified individual owns
50% or more interest.
You cannot receive immediate benefit from a property owned by your IRA. No vacation homes, personal residences or office spaces
because these would benefit you in some way.
You cannot lend yourself money to perform rehab work or cosmetic work on the home purchased by your IRA.You can't perform any
maintenance on the home or even furnish the home. It's all done via a property management company, which is nice because then you
don't have to deal with tenants. All income or rental profits generated from your investment must go back to your self-directed IRA and
all expenses like improvements, property taxes and bills directly related to the investment property must be paid from your IRA account.
Your IRA may invest in: Single-family residences and vacation homes, Certain condominiums and duplexes, Multi-family (5+ units)
properties, Commercial properties (retail/office/warehouse), International properties
A self-directed 401(k) offers the same benefits of pre-tax savings and automated payroll deductions that you'll find with a traditional
401(k) plan. The difference is in your investment choices.
A self-directed plan is similar to a brokerage account. It's essentially a do-it-yourself 401(k), and you're the fund manager. Rather than
choosing 401(k) investments from a short menu of pre-approved mutual funds, participating employees have an entire universe of
investments to consider.