This is a sample of how to properly submit your loan

request to a HM lender and get your loan funded.

This shows your lender that you have done your

homework and throughly understand your real estate
deal.
 EXECUTIVE SUMMARY

PROJECT DESCRIPTION—R&H Holdings will acquire Lot 15 Blk B Brookhollow Sec 1

known as . The purchase price is $85,000 with the closing
scheduled for 02/25/2010.

After acquisition, R&H Holdings will rehab the above mentioned single family
home and then market it for resale. The home will be a 3 bedroom, 2 bathroom
fully remodeled configuration at 1525 square feet. The finish out will meet or
exceed market for that area, featuring quality materials such as granite counter
tops, hardwood floors and will be the only home in the neighborhood with an in-
ground pool. The fact that we will list the property at the same price point as
average homes in the area, gives us a viably short turn around time and allows
us to move on to the next project.

PROJECT LOCATION— is located in Pflugerville, TX, just two

miles from HWY 1825 in zip code 78660. This provides quick and easy access to
downtown Pflugerville. The home is located in the center of the Pflugerville ISD,
which includes Park Crest Junior High School and Pflugerville High School. It’s also
just minutes away from the downtown Pflugerville shopping and dining area. This
area of Pflugerville continues to be a laid back staple of everyday life with
families, homes and businesses that have been a part of the community for
decades.

PROJECT FINANCIAL SUMMARY—The overall development strategy is to acquire

the property and begin remodeling immediately. The closing date for the
property is on or before February 25th, 2010.

The project capital structure for a phased rehab plan with incremental draws is
based on securing a 12 month, interest only hard money loan in the amount of
$110,000.00. R&H Holdings will have $20,000.00 to contribute to the overall
project costs of $130,000.00 and will be the sole guarantor of the hard money
loan, with total repayment to be finalized on or before February 25th, 2011.

1|Page
AFTER REPAIRED VALUE: $150,000.00

PROJECT COSTS: $130,000.00 TOTAL

$85,000.00 PURCHASE PRICE
$25,000.00 REHAB COSTS
$8,500.00 CLOSING COSTS
$5,200.00 4 MONTHS LOAN PAYMENTS
$6,300.00 CONTINGENCY/INSURANCE

PROJECTED PROFIT: $20,000.00

For the $110,000.00 investment, a 13% annual interest only return is being offered
with 4 months of payments to be figured in up front. As mentioned in the Project
Financial Summary, R&H Holdings does have $20,000.00 to invest in the project;
however, we will consider offering an equity position - subordinate lien position to
majority lender - in the project for 13% (or $2,600.00). The 13% equity position will
be fully paid upon successful execution of ‘exit strategy’ employed; not to
exceed 12 months.

PROJECT EXIT STRATEGIES:

 STRATEGY 1:
o Rehab, market and sell
o If goal is not achieved within 6 months, execute ‘Strategy 2’
 STRATEGY 2:
o Refinance property through conventional means and pay off hard
money loan
o Give additional 2 months to sell property
 Make any necessary price adjustments to move property
o If goal is not achieved within 60 days, execute ‘Strategy 3’
 STRATEGY 3:
o Market for rental and add to ‘Buy and Hold’ portfolio. All net
positive cash flow will be directed to 13% equity partner while all
operational diligence will be applied to manage and maintain the
subject property’s value by guarantor.

2|Page
COMPARATIVE MARKET ANALYSIS—There is sufficient data to support the
projected ARV as well as a strong LTV analysis. The floor plan for
is in the mid range for the area, which is in strong demand.

: SOLD COMPS

ADDRESS SqFt Sold Price Sold Date

1828 $162,950.00 1/11/2010
1780 $147,000.00 10/23/2009
1765 $155,000.00 08/18/2009

The average of the recent sales is $154,983.33. There have been adjustments
made for square footage, and it must be taken into consideration that
is the only home in the immediate area with an in-ground
swimming pool. The decision to list the remodeled home at $150,000 is not only
within comparable values, but due the quality of the finished product, will make
it the most desirable home in the area, prompting multiple offers.

ABOUT R&H HOLDINGS—R&H Holdings was officially formed in September 2009. A

Texas general partnership, it is lead by Harvey and Rosa Ryan. Both leaders have
extensive corporate America backgrounds, with Harvey Ryan having 5+ years of
extensive experience in the acquisition, remodel and sale of single family homes.
R&H Holdings has a close working relationship with H.I.S.R., Inc. and IFCOM, ran
by Bobby R. Howard and will be working closely with him on all future projects.
The geographic focus of the company is strictly in Central Texas, with the greater
Austin area the immediate priority. Full resumes and references available upon
request.

3|Page
 Short Term Investment Summary for Property Parkview

Property Basics
Address
City/State/Zip
Bedrooms/Baths 3/2.0
Square Feet 1525
List Price $85,000.00
Market Value $158,096.00
Cost Per Square Foot $55.74
Before

Mortgage Info First Second Short Term Performance

Loan-to-Value Ratio 70.00% -- Acquisition Expenses $6,000.00
Loan Amount $110,000.00 -- Repair Expenses $25,095.00
Monthly Payment $1,239.33 -- Holding Expenses $3,000.00
Loan Type Hard Money -- Hedge Expenses $2,500.00
Term 1 -- Sales Expenses $6,000.00
Interest Rate 13.00% -- Total Expenses $42,595.00
Monthly PMI $0.00 --
Market Value $158,096.00
Expenses $42,595.00
Total Loan Payments $4,957.32
Prepayment Penalties $0.00
Balloon Payment $0.00
Mortgage Points $0.00
Expected Profit $20,000.00
Assignment Fee $0.00
Max Offer $90,543.68
Short Term Acquisition Expenses for Parkview
Appraisal

Title Exam

Title Insurance

Document Prep

Recording Fees

Down Payment

Loan Origination Fees

Closing Costs

Attorney Fees

Pre-Title Search

Termite Report

Survey

Transfer Fees

Prepaid Escrow

Inspection

House Insurance

Other

Percentage Method $6,000.00

Total Expenses (using Percentage Method) $6,000.00

Short Term Repair Expenses for Parkview
Floors - Carpet $1,660.00

Floors - Vinyl or Tile $1,230.00

Floors - Hardwood Floor $1,100.00

Walls - Interior Patch, Paint, and Trim $2,575.00

Walls - Trim and/or Window Area

Walls-Wallpaper

Kitchen-Sink and Base $450.00

Kitchen-Counter $1,025.00

Kitchen-Cabinets $2,000.00

Bathroom #1- Sink and Base $550.00

Bathroom #1-Vanity/Cabinet/Mirror $400.00

Bathroom #1- Tub $275.00

Bathroom #1-Toilet

Bathroom #1-Shower $270.00

Bathroom #1-Accessories $175.00

Plumbing-Kitchen $150.00

Plumbing-Bathroom #1 $225.00

Plumbing-Bathroom #2 $325.00

Plumbing-Bathroom #3

Plumbing-Hot Water Heater

Plumbing-Miscellaneous $610.00

Plumbing-Washer/Dryer/Hookup

Plumbing-Washer Sink Tub

Heat-Furnace

Heat-Ducts

Heat-Thermostat

Appliances-Stove $475.00

Appliances-Dishwasher $300.00

Appliances-Refrigerator $1,050.00

Appliances-Disposal $175.00

Electrical-Fuse Box

Electrical-Circuit Breaker

Electrical-Wiring $1,500.00

Foundation-Floor Joist
Short Term Repair Expenses (continued)

Foundation-Drainage

Attic-Water Damage

Attic-Ventilation

Attic-Insulation

Fireplace-Gas

Fireplace-Wood $50.00

Alarm System

Exterior $2,525.00

Roof-Shingles $650.00

Roof-Sheeting

Chimney

Exterior-Siding $1,550.00

Exterior-Water Damage

Door-Screen

Door-Main $200.00

Door-Patio $600.00

Window-Replacement

Gutters and DownSpouts

Landscaping $550.00

Carpentry $1,500.00

Garage $375.00

Driveway

Porch

Deck $475.00

Miscellaneous

Window-Glass

Window-Treatments

Smoke Detectors

Mailbox $50.00

Door-Knocker

Electrical-Bulbs $50.00

Exterior-Termite Damage

Other
Short Term Repair Expenses (continued)

Percentage Method

Total Expenses $25,095.00

Short Term Holding Expenses for Parkview
Electric/Hydro

Water

Taxes and Insurance

Grass Cutting

Snow Removal

Inspection

Cleaning

Other

Percentage Method $3,000.00

Total Expenses (using Percentage Method) $3,000.00

Short Term Hedge Expenses for Parkview
Hedge Expenses $2,500.00

Other

Percentage Method

Total Expenses $2,500.00

 Main File No. 010525 Page #13

Subject Photo Page

Borrower/Client
Property Address Dr
City Pflugerville County Travis State Tx Zip Code 78660-2361
Lender

Subject Front
Dr
Sales Price N/A
Gross Living Area 1,525
Total Rooms 7
Total Bedrooms 3
Total Bathrooms 2
Location Average
View Typical
Site +/- 0.24 Acres
Quality Average
Age 27 - Updated

Subject Rear

Subject Street
 Main File No. 010525 Page #14

Subject Photos
Borrower/Client
Property Address Dr
City Pflugerville County Travis State Tx Zip Code 78660-2361
Lender

Pool Exterior

Interior Interior

Interior Interior
 Main File No. 010525 Page #15

Subject Photos
Borrower/Client
Property Address Dr
City Pflugerville County Travis State Tx Zip Code 78660-2361
Lender

Interior Interior

Interior
 Main File No. 010525 Page #12

Location Map
Borrower/Client
Property Address Dr
City Pflugerville County Travis State Tx Zip Code 78660-2361
Lender
 Main File No. 010525 Page #3

Uniform Residential Appraisal Report File # 010525

There are 9 comparable properties currently offered for sale in the subject neighborhood ranging in price from $ 90,000 to $ 180,000 .
There are 19 comparable sales in the subject neighborhood within the past twelve months ranging in sale price from $ 85,000 to $ 190,000 .
FEATURE SUBJECT COMPARABLE SALE # 1 COMPARABLE SALE # 2 COMPARABLE SALE # 3
Address Dr 603 Green Field Cv 1000 Creekbend Dr 801 Brookhollow Dr
2361 Pflugerville Pflugerville Pflugerville
Proximity to Subject 0.30 miles W 0.38 miles NW 0.33 miles NW
Sale Price $ N/A $ 162,950 $ 147,000 $ 155,000
Sale Price/Gross Liv. Area $ sq.ft. $ 89.14 sq.ft. $ 82.58 sq.ft. $ 87.82 sq.ft.
Data Source(s) MLS # 7289794 MLS # 6745628 MLS # 6809678
Verification Source(s) CAD CAD CAD
VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment
Sales or Financing Cash Conventional FHA
Concessions None None None
Date of Sale/Time 1/11/2010 10/23/2009 8/18/2009
Location Average Average Average Average
Leasehold/Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple
Site +/- 0.24 Acres +/- 0.25 Acres +/- 0.23 Acres +/- 0.25 Acres
View Typical Greenbelt -5,000 Average Average
Design (Style) Traditional Traditional Traditional Traditional
Quality of Construction Average Average Average Average
Actual Age 27 - Updated 14 27 - Updated 25 - Updated
Condition Good Good Good Good
Above Grade Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths
Room Count 7 3 2 7 3 2 7 4 2 7 3 2
Gross Living Area 1,525 sq.ft. 1,828 sq.ft. -12,120 1,780 sq.ft. -10,200 1,765 sq.ft. -9,600
Basement & Finished None None None None
Rooms Below Grade N/A N/A N/A N/A
Functional Utility Average Average Average Average
SALES COMPARISON APPROACH

Heating/Cooling Central Central Central Central

Energy Efficient Items Typical Typical Typical Typical
Garage/Carport 2 Car Garage 2 Car Garage 2 Car Garage 2 Car Garage
Porch/Patio/Deck CvPorch / Patio Similar Similar Similar
Additional Features Inground Pool None +10,000 None +10,000 None +10,000
Days on Market 25 186 52 4

Net Adjustment (Total) + - $ -7,120 + - $ -200 + - $ 400

Adjusted Sale Price Net Adj. 4.4 % Net Adj. 0.1 % Net Adj. 0.3 %
of Comparables Gross Adj. 16.6 % $ 155,830 Gross Adj. 13.7 % $ 146,800 Gross Adj. 12.6 % $ 155,400
I did did not research the sale or transfer history of the subject property and comparable sales. If not, explain

My research did did not reveal any prior sales or transfers of the subject property for the three years prior to the effective date of this appraisal.
Data Source(s) CAD & MLS
My research did did not reveal any prior sales or transfers of the comparable sales for the year prior to the date of sale of the comparable sale.
Data Source(s) CAD & MLS
Report the results of the research and analysis of the prior sale or transfer history of the subject property and comparable sales (report additional prior sales on page 3).
ITEM SUBJECT COMPARABLE SALE #1 COMPARABLE SALE #2 COMPARABLE SALE #3
Date of Prior Sale/Transfer 10/6/2009 None None None
Price of Prior Sale/Transfer Foreclosure
Data Source(s) CAD & MLS CAD & MLS CAD & MLS CAD & MLS
Effective Date of Data Source(s) Appraisal Date Appraisal Date Appraisal Date Appraisal Date
Analysis of prior sale or transfer history of the subject property and comparable sales The Subject property has a foreclosure on 10/6/2009.

Summary of Sales Comparison Approach Subject and all three comparables are located in the same market area and are considered to appeal to the
same potential buyers. Comparables have been adjusted for site locations, gross living area, and exterior features. No other adjustments are
deemed necessary and none are made.

***The attached appraisal report is subject to completion of rehab. See attached budget / rehab list.***

Indicated Value by Sales Comparison Approach $ 150,000

Indicated Value by: Sales Comparison Approach $ 150,000 Cost Approach (if developed) $ 158,593 Income Approach (if developed) $
The Sales Comparison Approach is considered to give the most accurate indication of the current market value. Primary reliance placed on the
Sales Comparison Approach.
RECONCILIATION

This appraisal is made "as is", subject to completion per plans and specifications on the basis of a hypothetical condition that the improvements have been
completed, subject to the following repairs or alterations on the basis of a hypothetical condition that the repairs or alterations have been completed, or subject to the
following required inspection based on the extraordinary assumption that the condition or deficiency does not require alteration or repair: Date of Photographs/Inspection:
February 05, 2010. Date of Appraisal: February 05, 2010.
Based on a complete visual inspection of the interior and exterior areas of the subject property, defined scope of work, statement of assumptions and limiting
conditions, and appraiser’s certification, my (our) opinion of the market value, as defined, of the real property that is the subject of this report is
$ 150,000 , as of February 05, 2010 , which is the date of inspection and the effective date of this appraisal.
Freddie Mac Form 70 March 2005 Page 2 of 6 Fannie Mae Form 1004 March 2005
 Main File No. 010525 Page #2

Uniform Residential Appraisal Report File # 010525

The purpose of this summary appraisal report is to provide the lender/client with an accurate, and adequately supported, opinion of the market value of the subject property.
Property Address Dr City Pflugerville State Tx Zip Code 78660-2361
Borrower Owner of Public Record County Travis
Legal Description Lot 15 Blk B Brookhollow Sec 1
Assessor's Parcel # 02744007090000 Tax Year 2008 R.E. Taxes $ N/A
Neighborhood Name Brookhollow Map Reference 12420 Census Tract 0018.36
SUBJECT

Occupant Owner Tenant Vacant Special Assessments $ None PUD HOA $ per year per month
Property Rights Appraised Fee Simple Leasehold Other (describe)
Assignment Type Purchase Transaction Refinance Transaction Other (describe) Hard Money Appraisal
Lender/Client Walter Capital Funding LLC Address 600 Round Rock West Drive #601, Round Rock, Tx 78681
Is the subject property currently offered for sale or has it been offered for sale in the twelve months prior to the effective date of this appraisal? Yes No
Report data source(s) used, offering price(s), and date(s). The subject is currently listed for sale at $92,500. DOM - 25. MLS .

I did did not analyze the contract for sale for the subject purchase transaction. Explain the results of the analysis of the contract for sale or why the analysis was not
performed. Contract not available
CONTRACT

Contract Price $ N/A Date of Contract N/A Is the property seller the owner of public record? Yes No Data Source(s)
Is there any financial assistance (loan charges, sale concessions, gift or downpayment assistance, etc.) to be paid by any party on behalf of the borrower? Yes No
If Yes, report the total dollar amount and describe the items to be paid.

Note: Race and the racial composition of the neighborhood are not appraisal factors.
Neighborhood Characteristics One-Unit Housing Trends One-Unit Housing Present Land Use %
Location Urban Suburban Rural Property Values Increasing Stable PRICE AGE
DecliningOne-Unit 75 %
Built-Up Over 75% 25-75% Under 25% Demand/Supply Shortage In Balance $ (000) (yrs) 2-4 Unit
Over Supply 5%
NEIGHBORHOOD

Growth Rapid Stable Slow Marketing Time Under 3 mths 3-6 mths 50 Low
Over 6 mths
0 Multi-Family 5%
Neighborhood Boundaries Boundaries: City of Pflugerville, Texas and surrounding areas. 300+ High 60 Commercial 5%
175 Pred. 25 Other 10 %
Neighborhood Description Marketability and appeal of properties in the neighborhood are average. Shopping and recreational facilities, access to
employment, schools, fire and police protection, garbage removal, street maintenance, protection from detrimental conditions and utility availability
are adequate and acceptable.
Market Conditions (including support for the above conclusions) General appearance and overall appeal of properties are average. No abnormal financing
conditions are known. Neighborhood is part of local MLS area PF.

Dimensions Plat not available Area +/- 0.24 Acres Shape Rectangular View Typical
Specific Zoning Classification A1 Zoning Description Single Family Residential
Zoning Compliance Legal Legal Nonconforming (Grandfathered Use) No Zoning Illegal (describe)
Is the highest and best use of subject property as improved (or as proposed per plans and specifications) the present use? Yes No If No, describe

Utilities Public Other (describe) Public Other (describe) Off-site Improvements - Type Public Private
Electricity Water Street Asphalt
SITE

Gas Sanitary Sewer Alley

FEMA Special Flood Hazard Area Yes No FEMA Flood Zone X FEMA Map # 48453C0280H FEMA Map Date 9/26/2008
Are the utilities and off-site improvements typical for the market area? Yes No If No, describe
Are there any adverse site conditions or external factors (easements, encroachments, environmental conditions, land uses, etc.)? Yes No If Yes, describe
A survey was not provided and therefore no apparent adverse easements, encroachments, special assessments, slide areas, illegal or legal
nonconforming use, are known. The highest and best use of the site and improvements is considered to be single family residential.

General Description Foundation Exterior Description materials/condition Interior materials/condition

Units One One with Accessory Unit Concrete Slab Crawl Space Foundation Walls Wood/Good Floors WdLm/Tile/Cpt/New
# of Stories 1 Full Basement Partial Basement Exterior Walls Brick/Siding/Good Walls Sheetrock/Good
Type Det. Att. S-Det./End Unit Basement Area sq.ft. Roof Surface Composition/Good Trim/Finish Wood/Good
Existing Proposed Under Const. Basement Finish % Gutters & Downspouts Typical Bath Floor Tile/New
Design (Style) Traditional Outside Entry/Exit Sump Pump Window Type Metal/Good Bath Wainscot Fiberglass/Exclnt
Year Built 1983 Evidence of Infestation None Ntd Storm Sash/Insulated Typical Car Storage None
Effective Age (Yrs) 12 Dampness N Settlement Screens Typical Driveway # of Cars 2
Attic None Heating FWA HWBB Radiant Amenities Woodstove(s) # Driveway Surface Concrete
Drop Stair Stairs Other Fuel Gas / Elec Fireplace(s) # 1 Fence Wd Pvcy Garage # of Cars 2
Floor Scuttle Cooling Central Air Conditioning Patio/Deck Patio Porch Carport # of Cars
Finished Heated Individual Other Pool Inground Other Att. Det. Built-in
IMPROVEMENTS

Appliances Refrigerator Range/Oven Dishwasher Disposal Microwave Washer/Dryer Other (describe)

Finished area above grade contains: 7 Rooms 3 Bedrooms 2 Bath(s) 1,525 Square Feet of Gross Living Area Above Grade
Additional features (special energy efficient items, etc.). Subject to completion appraisal. See updates / budget list.

Describe the condition of the property (including needed repairs, deterioration, renovations, remodeling, etc.). The functional utility of the subject floorplan is
considered to be typical for the area. No items of physical, curable functional or external depreciation noted.

Are there any physical deficiencies or adverse conditions that affect the livability, soundness, or structural integrity of the property? Yes No If Yes, describe

Does the property generally conform to the neighborhood (functional utility, style, condition, use, construction, etc.)? Yes No If No, describe

Freddie Mac Form 70 March 2005 Page 1 of 6 Fannie Mae Form 1004 March 2005
Previous Project located at 12508 Deer Falls Drive, Austin TX

Before After
 Previous Project located at 8314 Cahill Drive, Austin TX

Before After