FREQUENTLY ASKED QUESTIONS

Q: What is the primary focus of LIV Capital Group?

Our primary focus is to provide a passive income opportunity & wealth growth for investors via
property acquisition, rehabilitation and/or development, and disposition. Using the Group
Investing method, LIV Capital Group empowers individuals to pool their money with other like-
minded individuals and invest in local real estate projects.
Q: How much capital has LIV Capital Group transacted?
LIV Capital Group has performed over $100 million in transactions since 2009.
Q: Is the Management team personally invested in the project?
Yes, the Management team is fully committed to the companys investment strategy. LIV
Capital Group executives and principals have personal funds invested in ALL investment
projects they undertake. The Management team will be providing the soft costs for all of the
upfront expenses previously paid, the land acquisition, as well as an additional $50-$200k of
personal investment funds.
Q: Can I withdraw my money whenever I want?
This investment is not a savings or checking account, nor should it be used as such. This
investment requires a minimum commitment of 18 months, but is entirely dependent upon the
sale of the asset. The investor should not participate in this investment if s/he has the belief that
s/he may need their funds in the near future. All profits will be disbursed when profits are
received. First profits are anticipated within 18 months.
Q: How long will this investment last?
The estimated timeline for the entire investment is scheduled to be complete within 18 months.
Q: How frequently can I expect communication regarding this
investment?
We have noticed that quarterly updates are sufficient for most investors. As it states in the
agreement, if there are requests for any documentation/information we will make the information
available on-request (within a reasonable time).
Q: Are all the investors getting the same Operating Agreement?
Yes, all investing partners will be receiving the same Operating Agreement. The only variation
between investors will be the priority of distribution, capital contribution and shares allocated
based on that amount.
Q: What documentation should I expect to receive?
The Memorandum, which includes the presentation, FAQ, Pro Forma, and Appraisal.
Operating Agreement, Subscription Agreement, Detailed Financials, Wiring Instructions, and
any third-party reports. After your investment has been accepted and you have become a
Member, you will receive a confirmation receipt confirming your membership (Exhibit to the
Operating Agreement), Quarterly Updates, a K-1 (annually), and distributions (as available or
planned).
Q: How do you plan to procure financing for construction costs?
We have received a full approval and commitment from Presidio Bank for the construction loan,
approximately $5 million.
Q: What if we have hurdles with attaining some of the final
construction permits?
The project has been approved and has already been evaluated for the high-risk items, such as
environmental, public notice, etcThe soft costs are padded to consider the high-end of those
costs if further evaluation was needed. The hurdles could cause delays and potentially higher
costs.

Q: What is your estimated unit pricing by plan?
These prices are referenced in the Pro Forma, which you will receive. We priced the units based
on today's prices for new construction (built in 2005 and newer) in the metro area (specifically in
Bankers Hill). We also used the third-party appraisal to cross-check the values.
Q: Will the investment entity be a limited partnership (LP) or a Limited
Liability Company (LLC)?
Currently, we are an LLC. That is our normal procedure for this investment type.
Bankers Hill 1, LLC.
Q: How will the roles and responsibilities be divided between
Matthew Gordon and Richard Montao?
Matthew will be primarily focused on working with the city, architect, engineer, and contractor
to ensure successful construction. Richard Montao will be handling administrative tasks such as
bookkeeping/accounting, file maintenance, investor relations, and all aspects of marketing which
will include pricing, determining appropriate upgrades and finish products, and sales. We will
both coordinate with all decisions but those are the basic functions of our positions.

Q: What fees/commissions will be paid to the Sponsor for
developing, managing, and selling the project?
There is a developer fee paid via the construction loan. There will be a 5% fee for administrative
and capital-raising expenses (which will be shared with any outside individuals for other services
rendered). Fit Properties, a subsidiary of LIV Capital Group, will handle all sales, and will
receive a commission (3% including co-op) for sales and will also operate the marketing budget.

Q: What environmental reports and permits have you obtained on
the property?
The following reports have been obtained; environmental report and soils report. We also have
the extension for the building permit. Once we have updated construction drawings, we are ready
to break ground.
Q: What soil quantities will need to be exported from the site?
To accommodate the below-grade parking we will be exporting 160cu yds.

Q: Do you have a current marketing feasibility study / marketing
plan that will show pricing recommendations supporting the 6
homes per month absorption rate?
The construction lender, Presidio Bank, has an MAI appraisal completed October 2013 that
contains pricing, values, market data, market trend, and absorption info.

Q: Are there any Mello Roos, CFD or special finance district
associated with the project?
No

Q: Is an independent auditor going to audit the books?
We will have more than a 3rd party audit. The bank will be monitoring all expenses paid,
because they will be providing distributions based on our construction breakdown. We also have
CW Business Services audit all of our books monthly and they will provide Profit and Loss
Statements and Balance Sheets each month. Annually, we provide all accounting to our CPA and
Tax Advisor, Gaines and Welsh. They are also consulted on an as-needed basis throughout the
year. All of which will be available to all investors, within a reasonable time frame, upon
request.
Q: What if we are not able to sell the units for the price we projected
(approx $8.5M)?
We have evaluated the low-price threshold of what we would consider the low-end price-point,
and the project is still profitable at $8.1M

To break-even, the prices would have to be approximately 25% below the price of current
comps. Prices would average around $678k for the individual units. This is a very unlikely
scenario, but one to consider. The break-even gross amount would be approximately $6.1M.
Q: Do you have full construction drawings and engineers and
contractors estimates?
Full construction drawings will be complete 3-6 months. We do have engineers and contractors
estimates readily available.
Q: How is my investment secured?
Each investor will own an interest in Bankers Hill 1 LLC as a Member, and the LLC owns the
asset via holding title.
Q: Where will the capital account be held?
The accounts are held with Wells Fargo in the name of the LLC. All cash will belong to the
Members Pro Rata.
Q: Are all employees used on the project covered by workmans
comp? What insurance coverage has been taken out for the project?
Is there an umbrella policy? If so, how much?
We will have an OCIP policy, also called a wrap policy. This is a bulk insurance policy that
covers ALL insurance concerns during construction. The lender we have has required it. It
includes items such as liability, hazardous waste, workmans comp, construction defect (for 10
years), etc