1. PRIVATE LENDING INVESTOR FIX & FLIPMODEL PRIVATE LENDING INVESTOR FIX & FLIP MODEL SRCapitalManagement.com

2. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL Disclaimer… This presentation and its associated training materials are proprietary to SR Capital Management. Copies may not be made without the express written permission of SR Capital Management. The information contained in this document is subject to change and supplementation without prior notice. Welcome to Private Lending

3. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL We are excited for the opportunity to share our Private Lending Investor Fix & Flip Model… In these challenging times, our model provides an alternative to traditional investing i.e. stocks, bonds, cd’s, etc. We have designed a simple, straight forward, transparent, and easy to understand system of private lending that is backed by well secured real estate. Let’s look at the agenda to get started… Welcome to Private Lending

4. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL 5 Step Process Review & Action Items. 4 Core Assumptions & Key Metrics. 2 Model Overview. 1 AGENDA Glossary – Industry Terms. 5 AGENDA 3 Model Example – Story of an Investor.

5. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL Model Overview. 1 AGENDA AGENDA

6. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL We are looking to build trusted relationships… One Investor at a Time! at a Time! In the model… Model Overview OVERVIEW You become the bank for select real estate borrowers and enjoy all the benefits of being the bank. You are making the rules, moving the risk, and making the money. The synergistic relationships that bring the investors and borrowers together in this model will keep both parties coming back time and time again.

7. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL INVESTOR BENEFITS Generate an immediate monthly cash flow. Provide higher and more competitive yields. Are backed by Protective Equity (safe, well secured real estate collateral). At SR Capital Management, we are creating safe, secure, short term real estate investments that… Model Overview

8. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL PRIVATELENDER PRIVATEINVESTOR BORROWERINVESTOR How it works between the parties involved… Model Overview

9. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL Core Assumptions & Key Metrics. 2 AGENDA AGENDA

10. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL INVESTOR CORE ASSUMPTIONS Potential investor has reviewed the “Generating Wealth through Private Lending” introduction presentation from SR Capital Management. Potential investor has money to invest, i.e., self-directed IRA, 401k, qualified retirement plan, or cash in the bank. LENDER KEY METRICS Risk tolerance identified. Amount of money available to invest determined. Lead time to access money ascertained. As the process of becoming an investor begins, Investor Core Assumptions and Lender Key Metrics are … Things to Consider

11. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL Model Example – Story of an Investor. 3 AGENDA AGENDA

12. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL To understand the process from the Private Investor perspective, let’s look at scenario based on an actual deal with a fictional Investor, Borrower, and Lender… BORROWER INVESTOR Meet our Investor, Isabella. As a successful professional, she is seeking a safe place to invest her money that will provide better returns than her 401k. Meet our Borrower, Bob. He has found a property worth $80,000 in a nice neighborhood with good resale value. He is looking for financing to fix and flip the home. Meet our Lender, Larry. With his successful Private Lending model, he is continuously looking for Borrowers and Investors for whom he can structure profitable deals. PRIVATEINVESTOR Model Example PRIVATELENDER

13. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL After perusing the story, you will be able to: To illustrate our example, let’s explore the Story of an Investor… OUTCOMES Differentiate the three parties involved in the process. Identify the requirements of becoming a Private Investor. Understand the model and expected returns as a Private Investor. Determine the next steps involved in working a deal. Let’s start by learning more about our Investor, Isabella… Story of an Investor

14. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL ISABELLA PRIVATEINVESTOR Isabella has been introduced to the concept of Private Lending and is enticed by the core benefits… CORE BENEFITS Investment is secured by Protective Equity; tangible property which has a greater value than monies invested. Relative safety as it provides a lower risk investment when structured properly. Delivers healthy returns. Provides predictable monthly payments. Story of an Investor

15. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL She finds this exciting and secure method of real estate investing very similar to how banks invest… SECURED INVESTMENT Recorded deed of trust. Promissory note. Favorable lending ratios. This includes the safe haven of securing her investment against a property with… With $90,000, she is eager to pursue an opportunity and invest when the right deal comes along. Story of an Investor ISABELLA PRIVATEINVESTOR

16. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL Meanwhile, our Borrower… BORROWER DETAILS Estimates it will cost $12,000 to update the interior and bring the property up to neighborhood standards. Determines that, once the property is updated, it will be worth $154,000. Suggests with three weeks of work, 60 days of marketing, and an escrow period of 30-45 days, it will take about six months to turn the property for a profit. Realizes that, being short of the cash needed to do the deal, he will have to secure a loan. BOB BORROWER INVESTOR He is looking to begin the rehab process to fix & flip the property. Has found a property worth $80,000 in a nice neighborhood with good resale value. In his initial assessment he… Story of an Investor

17. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL To secure the potential loan, Bob calls Larry … LENDER & BORROWER AGREEMENT Maximum loan amount of $90,000 on a $154,000 ARV or 58% Loan To Value (LTV). 12% interest rate and a share of the profits. 6 month term. Borrower required funds to close of $13,000. Taking all factors into consideration Bob and Larry agree to the following… Larry begins reviewing Bob’s initial assessment details to determine viability of the project. Story of an Investor LARRY PRIVATELENDER He and Bob agree to a verification plan to satisfy the Lender and begin negotiating the terms of the deal.

18. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL As our story continues… INVESTOR DEAL POINTS 10% interest on her $90,000 investment for 6 months which calculates to $750 per month. 4% bonus profit once the home sells. Isabella receives this offer and decides to participate, agreeing to… Larry completes terms with Bob. Story of an Investor LARRY PRIVATELENDER Larry is prepared to communicate the interest rate and overall yield to his pool of Private Investors. Bob secures the property with a down payment.

19. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL For our Investor, this total potential return calculates as… Story of an Investor Bonus Profit Off Sale Interest on $90,000 Loan Potential Investor Return 4% 10% $4,500 $3,600 ISABELLA PRIVATEINVESTOR She was becoming the bank, moving risk to the borrower, in control of her money, and ready for her first transaction.

20. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL With all parties in agreement… INVESTOR Recorded deed of trust. Promissory note. Insurance: title & hazard. Protective Equity based on the loan ratio. The escrow process commences and the required paperwork is completed. Isabella wires $90,000 and Bob provides $13,000 to close escrow. Upon closing each party receives…BORROWER Home. Access to rehab funding controlled by 3 rd party service provider. Story of an Investor

21. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL The Story of an Investor draws to completion… Now that escrow is closed, the 6 month term of the note begins. Bob starts rehabbing the home and Isabella begins receiving monthly interest payments of $750. The home is completed, marketed, and sells within the 6 month term. The final Investor payouts for Isabella are… Bonus Profit Off Sale Interest on $90,000 Loan Investor Receives $8,100 4% 10% $4,500 $3,600 Story of an Investor

22. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL But wait, there’s more to the story… In our example, the transaction only took six months to complete with a 9% Return on Investment (ROI). Isabella realizes there is MORE money to be made throughout the year. Instead of investing in traditional, lower return options, she decides to do another similar deal with Larry, reinvesting her $90,000. Story of an Investor Total Profit Share of Bonus Profits Per Month Payout $4,500 $3,600 $ 8,100 6 Month Investment: One Deal $90,000 ROI 9%

23. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL There’s more to the story, continued… In order to calculate the before tax annual Cash on Cash Return we have to look at 12 months vs. the six month single transaction. With two similar transactions Isabella receives a sum total of $16,200 for the use of her $90,000 for the year. Her before tax annual cash on cash return on investment is a solid 18%. Total Profit Share of Bonus Profits Per Month Payout $9,000 $7,200 $ 16,200 12 Month Investment: Two Deals $90,000 Reinvested Annual Cash on Cash Return 18% With a return of 18%, Isabella is satisfied and plans to continue investing in the model. Story of an Investor

24. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL 5 Step Process Review & Action Items. 4 AGENDA AGENDA

25. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL The 5 Step Process Review Now that we have gone through the Story of an Investor… Let’s review the 5 Step Process from the “Generating Wealth Through Private Lending” introductory presentation. We will also break down each step in the process and highlight what it involves for the Borrower, Lender, and Investor.

26. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL THE 5 STEP PROCESS REMEMBER: YOU ARE THE BANK Borrower Requests Loan & Submits Documents Lender Assesses Project & Establishes Terms Investor Introduced to Project & Commits Escrow Initiated to Completion Investor Payout Let’s review... The 5 Step Process Review

27. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL STEP ONE The 5 Steps in Detail Borrower Requests Loan & Submits Documents PRIVATE BORROWER 1.Secure a property with a down payment. 2.Provide an initial estimate of the After Repaired Value (ARV). 3.Establish term needed for project. 4.Provide initial estimate of rehab costs to repair and/or renovate. 5.Confirm purchase price. Borrower responsibilities…

28. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL STEP TWO The 5 Steps in Detail PRIVATE LENDER 1.Assess viability of the project based on initial data received from the Borrower. 2.Review purchase contract, rehab estimate, timeline of project, borrower experience, borrower funds and/or collateral property available. 3.Determine 3rd party valuation method (ARV appraisal or BPO) to confirm Borrower’s initial ARV data. 4.Establish maximum loan amount or LTV based on evaluation of borrower risk factors and revised ARV valuation from 3rd party source. Lender responsibilities… Lender Assesses Project & Establishes Terms

29. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL STEP TWO The 5 Steps in Detail PRIVATE LENDER 5.Validate Borrower’s rehab cost estimate and coordinate equitable distribution of rehab funds through a 3 rd party contractor. 6.Establish the length of term needed for the project based on size of rehab, time to market, sale, and close with a buyer. 7.Determine the amount of additional Borrower funds or collateral that will be required to close the transaction. 8.Negotiate the interest rate, bonus profit off sale, and any other terms favorable to the Lender. Lender responsibilities, cont… Lender Assesses Project & Establishes Terms

30. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL STEP THREE The 5 Steps in Detail PRIVATE INVESTOR 1.Accept Private Lender interest rate offer. 2.Agree to note term. 3.Agree to percentage of bonus profit off sale. Investor responsibilities… Investor Introduced to Project & Commits 4. Communicate amount of funds that can be committed to the offer.

31. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL STEP FOUR The 5 Steps in Detail PRIVATE LENDER & 3 rd PARTY ADMINISTRATORS 1.Borrower formally completes loan application, credit report, and any other documents required by the Lender to close. 2.3rd Party appraisal or BPO is completed and reviewed by the Lender. 4.Preliminary title report is requested from escrow and reviewed by Lender. 5.Title and hazard insurance are placed on order by Lender. Private Lender & 3 rd Party Administrators responsibilities… Escrow Initiated to Completion 3.3rd Party contractor submits the final rehab estimate and disbursement plan to the Lender for approval.

32. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL STEP FOUR The 5 Steps in Detail 6.Escrow completes all Lender requirements and paperwork to close. 7.Escrow orders the closing and instructs title company to generate the necessary paperwork for funding. 8.Private Investor receives request for funding and wires funds to the title company’s bank. 9.Title receives the wire and disburses funds to close the escrow. 10.Borrower takes possession of the property; Investor gets a promissory note and a recorded deed of trust. Escrow Initiated to Completion Private Lender & 3 rd Party Administrators responsibilities, cont… PRIVATE LENDER & 3 rd PARTY ADMINISTRATORS

33. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL STEP FIVE The 5 Steps in Detail PRIVATE INVESTOR 1.Monthly payments commence. 2.Bonus profit percentage received after sale of the home. Investor receives… Investor Payout 3.Initial investment recouped.

34. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL In conclusion… Time to Act Remember… Learned about the Private Lending Investor Fix & Flip Model. Seen the model come to life in the Story of an Investor example. NOW THAT YOU’VE… Reviewed The 5 Step Process in detail.

35. The “Perfect Storm” has been created by current economic challenges… Time for Private Lending Tight credit markets. Home values down. Increase in foreclosures. Distressed banks. ECONOMIC CHALLENGES Limited opportunities for Borrowers to purchase properties. It’s time to… The timing and conditions for private lending are ideal…

36. Contact SR Capital Management to take advantage of this unique economic environment to start generating wealth with Private Lending. The “Perfect Storm” has created this limited window of opportunity. Don’t miss out… Take action today! THE TIME FOR PRIVATE LENDING IS NOW David Stromswold 949-929-7355 david@srcapitalmanagement.com Time for Private Lending Take advantage of this window of opportunity… SRCapitalManagement.com

37. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL AGENDA Glossary – Industry Terms. 5 AGENDA

38. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL PRIVATE INVESTORS After Repaired Value (ARV) Value of the property after all repairs are completed. After Repaired Value (ARV) Appraisal The “as is” value of the property, plus rehab estimate, as determined by a licensed appraiser, to establish ARV. Broker Price Opinion (BPO) The “as is” value of a property, plus rehab estimate, as determined by a licensed real estate broker or other qualified individual or firm. Cash on Cash Return The ratio of annual before-tax cash flow to the total amount of cash invested expressed as a percentage. Deed of Trust A deed wherein legal title in real property is transferred to a trustee, which holds it as security for a loan (debt) between a borrower and lender. The borrower is referred to as the trustor, while the lender is referred to as the beneficiary of the trust deed. Fix and Flip Acquiring a distressed property below market value that once repaired can be sold at a profit. Home Owners Association (HOA) A nonprofit association that manages the common areas of a planned unit development (PUD) or condominium project. Interest InstallmentImpounded interest payments. INDUSTRY TERMS & DEFINITIONS – for INVESTORS

39. PRIVATE LENDING INVESTOR FIX & FLIPMODEL INVESTOR FIX & FLIP MODEL PRIVATE INVESTORS Impounds To take into control or custody. Impounds in real estate often refer to any future recurring interest payments, taxes, HOA, insurance payments and rehab fund disbursements. The Servicer disburses the funds accordingly during the terms of the agreement. Lenders Minimum YieldMinimum interest rate and profit share that will generate investor interest. Loan to Value The percentage relationship between the amount of the loan and the appraised value or sales price. Promissory Note Negotiable instrument wherein one party (the maker or issuer) makes an unconditional promise in writing to pay a determinate sum of money to the other (the payee), either at a fixed or determinable future time or on demand of the payee, under specific terms. Protective Equity The difference between the ARV, ARV Appraisal or BPO and the maximum loan amount; tangible property which has a greater value than monies invested. Recurring Closing CostsClosing costs that recur during the note term. See Impounds. RehabThe process involved in repairing and/or updating a distressed property for resale. Servicing Company The company that services the loan; they process payments, send statements, manage the impound account, provide collection efforts on delinquent loans, ensure that insurance and property taxes are made on the property, handle pay-offs and assumptions, and provide a variety of other services. TermLength of loan. INDUSTRY TERMS & DEFINITIONS – for INVESTORS