BUSINESS DEVELOPMENT PROPOSAL Texas Investment, LLC. “ Plans for success”

1. BUSINESS DEVELOPMENT PROPOSALTexas Investment, LLC.“Plans for success” Hector J. Ibarra http://www.texas-investment.com

2. Table of Contents Requested Equity Amount Executive Summary Summary Opportunity Project Details Developer Site Feasibility Surrounding Vicinity Area Employers Sources & Uses Construction Costs Equity Cash Flow to Investor Map

3. REQUEST FOR EQUITY FINANCING Property: Palo Alto Apartments Requested Equity Amount: $ 3,600,000 Property Location: SW LOOP 410 FRONTAGE SOUTHWEST SAN ANTONIO, TX.

4. Executive Summary Property Type Multifamily Requested Equity Amount $3,600,000 Purpose Development Investment Term 48 Months Equity Share 60% Preferred Rate on Equity 8% Return Ratio 1.98 Times Investment Projected Net Cash Return $7,152,000 Recourse Developer responsible for recourse

5. Summary This project represents a buyout whereby Texas Investment will reinvest equity to remain in the deal. Currently, Texas Investment has a letter of intent from a Dallas-based Company to provide Permanent Financing for the Apartment Project once the Apartment Complex is 95% occupied and has a stabilized rent record. We have a Marketing Company that has had 100% success in the past to achieve this goal with its innovative strategies. The Dallas-based Company mentioned above also has committed to fund the entire Construction and Soft Costs for the Apartment Complex, if Texas Investment will provide the land. Texas Investment has an understanding from Wendel Jones that the current possible investor/s, perhaps would be interested in negotiating a Contract to provide the Construction and Soft Costs for the Apartment Complex for a percentage of the Project plus payback of Investment at Permanent Financing.

6. Opportunity Loan Amount: $1,650,000. Collateral: 4 acre commercial lots to be platted along Loop 410 SW with completed value of $2,600,000. Investors to have first lien position on lots. Interest: 8% annual interest, beginning 90 days after the funding of the loan; quarterly payments for 2 to 3 years Principal Payback: A. Upon sale of the commercial lots and/or B. Upon funding of the permanent loan on the 10 acre apartment project Residual Investment: On sale of any commercial lots, repayment of prorated principal per lot and 15% of gain on sale Default: Deed the 4 lots to the investors Infrastructure: $400,000 out of the initial $1,650,000 is allocated for site planning, drainage engineering, water, sewer and fire protection (fire hydrants), roads (curb cuts and paving from Loop 410 access road to the back of lot lines on each lot) and electric power and gas utilities to lots. Any required drainage for the 4 lots will be on the adjoining property so that 100% of each lot is buildable and not encumbered by detention ponds. Also, sewer lines will have to be run from the 4 lots to the adjoining property. Our Plan is to add value to the 4 lots that investor has as collateral. Further, we have ongoing communications with business entities which have expressed interest in the lots. Our expenses will be 100% spent on assuring the investor gets paid in 2 years or earlier.

8. Developer:Site to be developed by Kim Wise, a development partner. Contiguous Land: 4± acres of land contiguous to the north of the site, will likely be developed into retail, restaurant, office, hotel, or another similar type of development.

9. Site Feasibility: The site feasibility report conducted by UTSA MBDA Business Center and included in this presentation, suggests the project is market justified for a construction start in 2013. The report forecasts an average annual demand of roughly 600 units per year beginning 2013 through 2015. Austin Investor Interests, LLC (Apartment Trends), an apartment market research company, reported that San Antonio occupancy and effective rents have continued to increase over the past year despite the faltering economy.

10. Surrounding Vicinity: Palo Alto College, serving the southern sector of Bexar County, has excelled in preparing first-generation college students to successfully gain employment or transfer to a four-year institution to earn a bachelor’s degree. Begun in 1985 with 231 students, Palo Alto College reached a record enrollment of 9,163 students in 2012. The students are 69 percent Hispanic and 80 percent are enrolled as part-time students. The college is located within 1 mile of the Project Site. Texas A & M University– San Antonio is located within a mile of the Site and has an enrollment of 4,000 students average attendance in 2012. The campus is still being expanded with buildings and faculty to meet the growing needs. Hispanic students account for about 78% of enrollment. The school was created to address an educational need in South San Antonio. The Texas Legislature asked The Texas A&M University System to establish a center that would offer junior- and senior-level courses in South San Antonio, an area that has been historically underserved in terms of higher education.

11. Area Employers:Area employers include the campuses of Palo Alto College and Texas A&M University and the Toyota assembly plant, located south of the Project Site about 4 miles.

16. Texas Investment, LLC. • Hector J. Ibarra – President, Texas Investment, LLC ; former Superintendent, San Benito ISD • David Miller – Vice President of Texas Investment; Realtor Prudential . • Gerardo (Jerry) Noriega – Architect. • Vincent John Rameriz– Designer/Production. • David Flores – Desiger/Production, Construction documentation to Contract Administration. • Charles Williams – Financial Consultant. • Matías Cisternas – Financial Analyst and Director for Marketing

17. Project Management Will Drive Implementation • Clear business vision • Validated program objective • Agreed-on decision-making process/phasing strategy and architecture • Charters, approaches, work plans, milestones • Interface and integration requirements • Planning and control • Resource management • Status reporting • Controls all project-related initiatives.

18. Effective Project Management Will Ensure Objectives Are Met 1 2 10 3 9 Successful Implementation 4 8 5 7 6 Active, Visible Committed Leadership Focus on Desired Business Results w/ Clear Vision and Objectives Focus on Skill Training and Process Education Established Sense of Urgency Active Barrier Removal Effective Communications and Stakeholder Management Disciplined Project Management Validated and Approved Design “Blueprint” • Process • People • Systems • Organization • Metrics Integration Issues/ Requirements Defined Responsibilities Established Clear and Complete Roles and

22. Value Proposition Estimated Assessment: Texas InvestmentResources: Already explained INVEST $1,650,000 OWN PROPERTY WORTH $2,600,000, when complete Interest is paid as indicated above Initial investment is paid at Permanent Financing 2. Investor/s Shares in apartment Complex: Resources Already explained INVEST an additional $2,300,000 (investment total $3,600,000) Has 15% ownership of $14,000,000 Apartment Complex until Apartment Complex is Permanently Financed At the time of Permanent Financing the additonal $2,300,000 is paid to Investor/s plus interest of 8% per year. Once the $2,300,000 have been paid Investor/s is 8% owner of the Apartment Complex (Investor/s may decide to sell their interest to Texas Investment At anytime for market value).

23. BUSINESS DEVELOPMENT PROPOSALTexas Investment, LLC.“Plans for success” Hector J. Ibarra http://www.texas-investment.com