Sample

Property Report

December 12, 2011

123 Main Street 123 Main Street Houston, TX 77002

Presented by:

Intero Agent Intero Real Estate Services Office: 713 568 2389 Mobile: 832 766 6772 agent@interowestave.com www.interowestave.com

This document(s) is for information only. By accepting delivery of this document, it is expressly understood and agreed that no representations, warranties expressed or implied, or suitability for any purpose are made. Avanti Capital Management, L.L.C. d/b/a Intero Real Estate Services (“Intero�) accepts no responsibility for any errors or omissions in the document(s). Intero shall not be liable for direct, indirect, consequential, incidental, special, punitive or other damages arising from the use of this information, although Intero has been advised of the possibility of such damages.

Intero Real Estate Services

1

Overview 123 Main Street 123 Main Street Houston, TX 77002

December 12, 2011 Intero Real Estate Services 713 568 2389 agent@interowestave.com

Purchase Info Square Feet

2,250

Initial Market Value

$250,000

Purchase Price

$237,000

Initial Cash Invested Income Analysis Net Operating Income Cash Flow

$64,620 Monthly

Annual

$1,529

$18,353

$575

$6,902

Financial Metrics Cap Rate (Purchase Price)

7.7%

Cash on Cash Return (Year 1)

10.7%

Internal Rate of Return (Year 10)

20.2%

Sale Price (Year 10)

$335,979

Large bedroom downstairs. Double Glass doors open up to an extended patio and backyard. Travertine tile downstairs, hardwood floors. Master has High Ceilings, His/Her Closets. All Bathrooms have Carrara Marble Countertops, custom cabinetry, and natural stone floors. Nice backyard with built-in grill

Intero Real Estate Services

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Purchase Analysis 123 Main Street 123 Main Street Houston, TX 77002

December 12, 2011 Intero Real Estate Services 713 568 2389 agent@interowestave.com

Purchase Info

Income

Monthly

Annual

Initial Market Value

$250,000

Gross Rent

$2,450

$29,400

Purchase Price

$237,000

Vacancy Loss

($204)

($2,450)

Operating Income

$2,246

$26,950

Monthly

Annual

$120

$1,440

$99

$1,185

Taxes

$498

$5,972

Operating Expenses

$716

$8,597

Monthly

Annual

- First Mortgage

($177,750)

- Second Mortgage

0

= Downpayment

$59,250

+ Buying Costs

$2,370

+ Initial Improvements

$3,000

= Initial Cash Invested

$64,620

Expenses Cleaning & Maintenance Insurance

Square Feet

2,250

Cost per Square Foot

$105

Net Performance

Monthly Rent per Square Foot

$1.09

Net Operating Income

$1,529

$18,353

- Mortgage Payments

($954)

($11,450)

0

0

$575

$6,902

Mortgages

First

Second

Loan-To-Value Ratio

75%

0

Loan Amount

$177,750

0

Loan Type

Amortizing

Term Interest Rate Payment

- Year 1 Improvements = Cash Flow

30 Years 5% $954.20

0

Financial Metrics (Year 1) Annual Gross Rent Multiplier Operating Expense Ratio Debt Coverage Ratio

8.1 31.9% 1.60

Cap Rate (Purchase Price)

7.7%

Cap Rate (Market Value)

7.1%

Cash on Cash Return

10.7%

Assumptions Appreciation Rate Vacancy Rate

3.0% 8.33%

Income Inflation Rate

3.0%

Expense Inflation Rate

3.0%

LTV for Refinance Selling Costs

Intero Real Estate Services

70.0% $10,000

3

Buy and Hold Projection

December 12, 2011

123 Main Street 123 Main Street Houston, TX 77002 Income

Intero Real Estate Services 713 568 2389 agent@interowestave.com

Year 1

Year 2

Year 3

Year 5

Year 10

Year 20

Year 30

Gross Rent

$29,400

$30,282

$31,190

$33,090

$38,360

$51,553

$69,283

Vacancy Loss

($2,450)

($2,523)

($2,599)

($2,757)

($3,197)

($4,296)

($5,774)

Operating Income

$26,950

$27,759

$28,591

$30,332

$35,164

$47,257

$63,509

Year 1

Year 2

Year 3

Year 5

Year 10

Year 20

Year 30

Cleaning & Maintenance

($1,440)

($1,483)

($1,528)

($1,621)

($1,879)

($2,525)

($3,393)

Insurance

($1,185)

($1,221)

($1,257)

($1,334)

($1,546)

($2,078)

($2,793)

Taxes

($5,972)

($6,152)

($6,336)

($6,722)

($7,793)

($10,473)

($14,074)

Operating Expenses

($8,597)

($8,855)

($9,121)

($9,676)

($11,218)

($15,076)

($20,260)

Year 1

Year 2

Year 3

Year 5

Year 10

Year 20

Year 30

Net Operating Income

$18,353

$18,903

$19,470

$20,656

$23,946

$32,181

$43,249

- Mortgage Payments

($11,450)

($11,450)

($11,450)

($11,450)

($11,450)

($11,450)

($11,450)

0

0

0

0

0

0

0

$6,902

$7,453

$8,020

$9,206

$12,496

$20,731

$31,799

Cap Rate (Purchase Price)

7.7%

8.0%

8.2%

8.7%

10.1%

13.6%

18.2%

Cap Rate (Market Value)

7.1%

7.1%

7.1%

7.1%

7.1%

7.1%

7.1%

10.7%

11.5%

12.4%

14.2%

19.3%

32.1%

49.2%

8.4%

8.0%

7.7%

7.3%

6.5%

5.7%

5.2%

Year 1

Year 2

Year 3

Year 5

Year 10

Year 20

Year 30

$257,500

$265,225

$273,182

$289,819

$335,979

$451,528

$606,816

($175,128)

($172,371)

($169,473)

($163,226)

($144,586)

($89,963)

($0)

$82,372

$92,854

$103,709

$126,593

$191,394

$361,564

$606,815

Loan-to-Value Ratio

68.0%

65.0%

62.0%

56.3%

43.0%

19.9%

0.0%

Potential Cash-Out Refi

$5,122

$13,287

$21,754

$39,647

$90,600

$226,106

$424,771

Sale Analysis

Year 1

Year 2

Year 3

Year 5

Year 10

Year 20

Year 30

$82,372

$92,854

$103,709

$126,593

$191,394

$361,564

$606,815

($10,300)

($10,609)

($10,927)

($11,593)

($13,439)

($18,061)

($24,273)

$72,072

$82,245

$92,781

$115,000

$177,954

$343,503

$582,543

$6,902

$14,355

$22,375

$40,184

$95,888

$264,133

$529,621

($64,620)

($64,620)

($64,620)

($64,620)

($64,620)

($64,620)

($64,620)

$14,355

$31,980

$50,536

$90,565

$209,222

$543,016

$1,047,543

22.2%

23.3%

23.1%

22.1%

20.2%

18.2%

17.4%

22%

49%

78%

140%

324%

840%

1,621%

Expenses

Income Analysis

- Improvements = Cash Flow

Cash on Cash Return Return on Equity Loan Analysis Market Value - Loan Balance = Equity

Equity - Selling Costs = Proceeds After Sale + Cumulative Cash Flow - Initial Cash Invested = Net Profit Internal Rate of Return Return on Investment

Intero Real Estate Services

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Graphs

December 12, 2011

123 Main Street 123 Main Street Houston, TX 77002

Intero Real Estate Services 713 568 2389 agent@interowestave.com

Monthly Cash Flow $2,500 $2,000 $1,500 $1,000 $500 $0 0

5

10

Loan Balance +

15 Year

20

25

30

25

30

25

30

Equity = Market Value

$600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 0

5

10

15 Year

20

Internal Rate of Return (IRR)

25% 20% 15% 10% 5% 0% 0

Intero Real Estate Services

5

10

15 Year

20

5