1 INVESTMENT OPPORTUNITY! Investing In Houston’s Economic Strength with a “Purpose Built” investment property The Following is provided for informational purposes only and is not intended as Tax or Legal advice

2 The Need Unprecedented need for Affordable Housing Near Jobs –More than 150,000 people moved to Houston in the aftermath of Hurricanes Katrina and Rita in 2005 –More than 30,000 families are still on some sort of FEMA assistance. Currently DHAP handles the FEMA related Housing needs in Houston. Many of these will ultimately be converted to Section 8 Housing Vouchers –Over 15,000 families were already on Houston’s Section 8 Housing waiting list Prior to the Hurricane Refugee increase –INCREDIBLE demand for Affordable Rentals in Locations on Bus Routes close to Job centers –THIS NEED has NOT yet been Fully Absorbed!

3 The Solution Meet current Market demand for Affordable Housing by building Duplexes that are construction built as Town Homes. Build in an area Close to Great Job Growth – the Medical Center of Houston –30,000 jobs to be added between 2008 and 2011 in the Houston Medical center Area Build in an area poised for Re-urbanization affording investors the best potential for accelerated appreciation. Medical center area poised to growth ( 30,000 jobs to be added over the next 36 months) at the rate the Heights of Houston did during the last 7-8 years

4 Purpose Built Investment The Duplexes are built to Town Home Construction Standards –This gives you 2 advantages as an investor Each building only take up ONE of your available Spaces on your Credit Report while giving you 2 doors of Income. When the Appreciation Market does come you can easily Convert these into 2 Town Homes with NO construction conversion allowing you Maximize the Appreciation through the sale of separate units with minimal cost.

5 The Product 2712 Sq. ft. Duplexes that have 2 units Each unit has –1356 Sq. ft. –4 bedrooms and 2.5 baths –Stove, Refrigerator, Microwave, Dishwasher, and Washer and Dryer included –Separately fenced Back Yard –2 inch faux wood blinds in ALL Windows –Ceiling Fans in Each Bedroom –Completely separate Utility lines from the other unit (allowing the later sale as Town Homes)

6 Some Street-view Pictures

7 Some Interior Pictures

8 Flight to Value Many Time-tested investors are selling properties in currently over valued (Deflating) markets and 1031 exchanging into positive cash flow rentals in Major cities with Great economics.

9 Bubble Busted Now What? Buy Positive Cash Flow investments Near expected Job Growth Look for Cities whose Economics will perform well in Recessionary times –Energy Industry cities (Energy cost continue to rise) –World Class Medical Center areas (ever aging population of Baby-boomers need more medical care) Houston has BOTH

10 Income Potential Currently the 3 different subsidized rental authorities in Houston, DHAP (FEMA housing), City of Houston Section 8, and Harris County Section all Maximum Allowable rents for a 4 Bedroom Voucher as $1428 a month as of November 2007 as the. –The lesser of Market Rents or the Maximum Voucher amount will set the Rental amount for your units –Currently Potential Gross rents would not exceed $1428 per month per Unit on a voucher and each Duplex has 2 units. –Market rents fluctuate. –Current market average a month depending on location.

11 Rent Income Conservative Today rents –$ Per Unit –$ Per Duplex Proforma As Rents Rise $ Per Unit $ Per Duplex

12 Investment returns – Example! Purchase Price 250,000 Loan Scenario 1 –20% down 30 year fixed 6.5% $ Payment $450.00* Taxes and Insurance (*= estimated) $ PITI Gross rents of $ = $ per month Gross Rents of $2600 – = $ per

13 Cash on Cash Returns – Example! $2300 Gross Rents ($ gross cash flow * 12) divided by the $50,000 Down = 14% cash on cash return $2600 Gross Rents ($ gross cash flow * 12) divided by the $50,000 Down = 21% cash on cash return

14 Potential Tax Savings The Following is provided for informational purposes only and is not intended as Tax or Legal advice You should check with a Qualified Tax Advisor of your choice for validity and application to you individually. Cost Segregation –Cost segregation will allow you to amplify your depreciation of components of you residential rental properties by allowing to classify different building components of the Duplex into various 5,7,10,15, 20 and 27.5 year Schedules –Once the Cost segregation is completed you and Your CPA may Elect to use the INCREASED Section 179 deduction to take any of the 20 year or LESS depreciations in the 2008 Calendar year due to the new Stimulus Plan Enacted by Congress... –Early estimates are that this could be from 40-55% of the purchase Price of your rental Property (Est. $100K-137,500 in accelerated deductions the first year) and placed into Rental Service in –Please Verify with a Competent Licensed Tax Advisor as to the benefit you may personally receive if any.- We offer this for informational purposes only. –Perform Your Own Due Diligence.

15 Only 11 Duplexes Available Act Fast as we only have 11 Completed Construction unsold units out of the 65+ we have Built. $10,000 Non Refundable Earnest Money Deposit Required. Tremendous Demand from Investor unlock equity in Falling Markets