Real Estate Funds explained

1. Real Estate Funds explained Mike Zlotnik | Mike@TempoFunding.com | 917-806-5029 | Aug 2019

2. Disclaimer • This presentation and its contents are not an attempt to sell securities, nor to sell anything at all, nor provide legal, nor tax accounting, nor any other advice. • The presenter is a private lending and real estate fund management business, and the information represented herein are purely for educational purposes and represents the opinions of the presented. Prior to making any investment or legal decision you should seek professional opinions from a licensed attorney, and a financial advisor. • Investments in Tempo Opportunity Fund LLC are offered via the Private Placement Memorandum (PPM) to accredited investors only. Please request and review the above mention PPM before making any decisions. Consult with your Investment professional before making any decisions. • Past results do not guarantee future performance. • Information provided is approximate in nature and for educational purposes only.

3. Who is Big Mike? • Married, 4 kids and a cat • CEO of TF Management Group LLC • Co-Manager of TF Investment Fund II LLC was founded in 2014. • Co-Manager Tempo Opportunity Fund LLC was founded in 2017. • Retired Software executive (1995-2009 career) • Real Estate Investor since 2000 • Part Time Investor 2000-2009 • Full Time fund Manager since 2009

4. Why consider Real Estate Funds? Roller Coaster Ride vs Smooth Sailing

5. Diversified portfolio building blocks • Funds • Syndications • Partnerships • Direct ownership

6. Diversification elements / dimensions • Type • Self-Storage, Multifamily, Office, Industrial, Residential • Strategy • Value-add vs. Stabilized • Income vs. Growth • Duration • Short Term vs. Long Term • Location • Sponsor / Fund Manager / Operator • Equity / Debt

7. Public vs. Private funds • Publicly traded REITs (Real Estate Investment Trust) • Privately offered via PPMs (Private Placement Memorandum)

8. Fund Objective and Investment Philosophy • Wall Street terms • Conservative Income • Moderate Growth & Income • Aggressive Growth • Main Street terms • Investment grade Cashflow • Speculative grade Growth

9. Investment Quadrants

10. Focus on Risk Adjusted Return • Risk Adjusted Return = Projected Return – Loss Reserves Note: Many funds and syndications state projected returns, but they don’t mention “Risk Adjusted Return”. You should always lower your expectations by the level of risk in a given investment – that will give you your target Risk Adjusted Return.

11. Diversified vs. Focused Funds • Diversified funds: • Broad set of investment strategies, various asset types, geographies, mix of debt and equity investments, etc. • Focused Funds: • Single strategy, e.g. Multifamily, Office Space, Non-Performing Notes, Self-Storage, Retail, Hard Money Lending on Fix-n-flips, Gas stations real estate holdings • Certain limited geography, e.g. single State or City • Strong Value-add vs. Performing

12. Tempo Opportunity Fund example (mid-June) • Debt Investments: • Loans outstanding: 64 • Equity Investments: • Projects outstanding: 22 • Multifamily 5 • Self-Storage 4 • Shopping Centers 6 • Office 1 • Residential 1 • Corporate Debt 2 • Funds 1 • Distressed Debt 1

13. Open-ended vs. Close-ended funds • Open-ended funds, a.k.a. “Evergreen” funds • Raise capital ongoing basis, typically Quarterly (but could be monthly, etc.) • Re-invest capital coming from asset sales or repaid notes • “Mark to market” value of assets for the purpose of subscriptions / redemptions • Distribute “Realized gains” or Realized Income on Quarterly basis (same as subscriptions/redemptions) • Close-ended funds • Raise capital during a specific period of time, e.g. 12 months • Purchase assets / make investments • Run those assets through their life cycle and liquidate them • Distribute income and return capital at various times throughout life of the fund • Fund has typically projected exit date(s)

14. Fund structure examples • Fund example 1: • Preferred Return: 8% • Annual Mgnt fee: 2% • Performance Split (above Pref): 60/40 (investors/sponsor) • Fund example 2: • Preferred Return: 7% • Annual Mgnt fee: 1.5% • Performance Split (above Pref): 70/30 (investors/sponsor) • Fund example 3: • Preferred Return: 0% • Annual Mgnt fee: 1.5% • Performance Split (above Pref): 80/20 (investors/sponsor)

15. Tempo Opportunity Fund LLC – structure • Target Return = 10-13% NET to investors • Preferred return = 7% • Management fees = 2% • Performance split (above the 7% Pref): • A Units: 80/20 ($1,000,000+ invested) • B Units: 70/30 ($500,000 - $999,999 invested) • C Units: 60/40 ($100,000 - $499,999 invested) • Distributions: Quarterly • All pointes and fees collected on hard money loans go to the Fund, not Manager • Manager does not charge the Fund any Asset origination fees

16. How Funds derive income and growth • Income (Realized gains or Realized Returns) • Points + interest + fees on hard money loans • Cash distributions on equity projects • Any other current income Note: Income is distributable on quarterly basis • Growth (Unrealized gains / Appreciation) • Forced Appreciation on Value-Add projects (e.g. Multifamily apartment renovations, Self-Storage development or redevelopment) • Natural Appreciation based on local and broader market conditions • Total return = Income (Realized gains) + Growth (Unrealized gains) Note: Ultimately unrealized gains convert to realized gains on sale, and this produces Income.

17. Long-Term vs. Short-Term investing • Long Term investing • Short Term investing

18. Fund Summary and Performance, TOF example

19. Tempo Opportunity Fund LLC - overview • Strong Cashflow and value-add Equity Appreciation • Mix of Hard Money loans and Equity deals with strong Pref, and forced appreciation play. • Network / Relationship driven deal-flow • Mastermind Group relationships • Diversification (Equity/Debt/Location/Deal Type/etc) • Investor favored Performance Split with no manager-only fees (all points/fees go into the split) • Better Risk Adjusted Returns, projected 10-13%

20. Should you invest in Individual Deal(s) vs. Fund(s)

21. Text to get more info • Get • Info on the Tempo Opportunity Fund LLC • Copy of this presentation • PDF copy of the eBook • Get access to our monthly newsletter • Text “QuestTOF” to 39492 • www.BigMikeFund.com/TOF • www.BigMikeCall.com (schedule time to talk via ZOOM) • www.BigMikeFund.com (Podcast)