PRIVATE LENDING INVESTOR FIX & FLIP MODEL

1. PRIVATE LENDING INVESTOR FIX & FLIPMODEL SRCapitalManagement.com

2. Welcome to Private Lending 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.

3. Welcome to Private Lending We are excited for the opportunity to share our Private Lending Investor Fix & Flip Model… Let’s look at the agenda to get started…

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

5. Model Overview. 1 AGENDA AGENDA

6. Model Overview In the model… We are looking to build trusted relationships… One Investor at a Time!

7. Model Overview At SR Capital Management, we are creating safe, secure, short term real estate investments that…

8. PRIVATE LENDER PRIVATE INVESTOR BORROWER INVESTOR Model Overview How it works between the parties involved… YIELD PROPERTY CAPITAL TERMS

9. Core Assumptions & Key Metrics. 2 AGENDA AGENDA

10. Things to Consider As the process of becoming an investor begins, Investor Core Assumptions and Lender Key Metrics are …

11. AGENDA AGENDA Model Example – Story of an Investor. 3

12. PRIVATE INVESTOR Model Example 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… PRIVATE LENDER 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. BORROWER INVESTOR 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.

13. Story of an Investor To illustrate our example, let’s explore the Story of an Investor… After perusing the story,you will be able to: Let’s start by learning more about our Investor, Isabella…

14. PRIVATE INVESTOR Story of an Investor Isabella has been introduced to the concept of Private Lending and is enticed by the core benefits… ISABELLA

15. PRIVATE INVESTOR Story of an Investor She finds this exciting and secure method of real estate investing very similar to how banks invest… ISABELLA 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.

16. Story of an Investor Meanwhile, our Borrower… BOB • Has found a property worth $80,000 in a nice neighborhood with good resale value. BORROWER INVESTOR • He is looking to begin the rehab process to fix & flip the property. • In his initial assessment he…

17. Story of an Investor To secure the potential loan, Bob calls Larry … PRIVATE LENDER LARRY • Larry begins reviewing Bob’s initial assessment details to determine viability of the project. • He and Bob agree to a verification plan to satisfy the Lender and begin negotiating the terms of the deal. • Taking all factors into consideration Bob and Larry • agree to the following…

18. Story of an Investor As our storycontinues… PRIVATE LENDER LARRY • Larry completes terms with Bob. • Bob secures the property with a down payment. • Larry is prepared to communicate the interest rate and overall yield to his pool of Private Investors. • Isabella receives this offer and decides to participate, agreeing to…

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

20. Story of an Investor With all parties in agreement… • 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…

21. Investor Receives $8,100 Story of an Investor 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 final Investor payouts for Isabella are… • The home is completed, marketed, • and sells within the 6 month term. $4,500 10% Interest on $90,000 Loan $3,600 4% BonusProfit Off Sale

22. 6Month Investment: One Deal Story of an Investor $8,100 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). $4,500 $3,600 TotalProfit $90,000 • Isabella realizes there is MORE money to be made throughout the year. Share of Bonus Profits ROI 9% • Instead of investing in traditional, lower return options, she decides to do another similar deal with Larry, reinvesting her $90,000. Per Month Payout

23. 12 Month Investment: Two Deals Story of an Investor $16,200 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. $9,000 $7,200 $90,000 Reinvested • Her before tax annual cash on cash return on investment is a solid 18%. TotalProfit • With two similar transactions Isabella receives a sum total of $16,200 for the use of her $90,000 for the year. Share of Bonus Profits Annual Cash on Cash Return 18% Per Month Payout • With a return of 18%, Isabella is satisfied and plans to continue investing in the model.

24. AGENDA AGENDA 5 Step Process Review & Action Items. 4

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

27. The 5 Steps in Detail Borrower responsibilities… STEP ONE Borrower Requests Loan & Submits Documents

28. The 5 Steps in Detail Lender responsibilities… STEP TWO Lender Assesses Project & Establishes Terms

29. The 5 Steps in Detail Lender responsibilities, cont… STEP TWO Lender Assesses Project & Establishes Terms

30. The 5 Steps in Detail Investor responsibilities… STEP THREE Investor Introduced to Project & Commits

31. The 5 Steps in Detail Private Lender & 3rd Party Administrators responsibilities… STEP FOUR Escrow Initiated to Completion

32. The 5 Steps in Detail Private Lender & 3rd Party Administrators responsibilities, cont… STEP FOUR Escrow Initiated to Completion

33. The 5 Steps in Detail Investor receives… STEP FIVE Investor Payout

34. Time to Act In conclusion… Remember…

35. Time for Private Lending The timing and conditions for private lending are ideal… The “Perfect Storm” has been created by current economic challenges… It’s time to…

36. Time for Private Lending Take advantage of this window of opportunity… David Stromswold949-929-7355david@srcapitalmanagement.com SRCapitalManagement.com

37. AGENDA AGENDA Glossary – Industry Terms. 5

38. INDUSTRY TERMS & DEFINITIONS – for INVESTORS

39. INDUSTRY TERMS & DEFINITIONS – for INVESTORS

40. Thank You!