SQUARE ONE HOMES & MORTGAGE LP

Friday, July 01, 2011

We would like to thank you for taking the time to review and consider our business concept. We appreciate that you are busy and we respect the time you spend reviewing this document. We look forward to your positive response or any request for further clarification..

INTRODUCTORY MESSAGE The Square One Homes and Mortgage concept came about as a compassionate but financially grounded response to seeing the real human pain and misery of the middle class after their basic economic lifestyle eroded as a result of the sudden and extreme economic crisis experienced in late 2007 and early 2008. Our plan is practical and seeks to restore some hope, faith and trust that has been lost by the victims of this financial crisis. We are a group of experienced diversely talented real estate professionals who have invested many long hours into the research, modeling, confirmation, and testing of our conceptual plan and believe after significant investment time energy and market feedback that it warrants serious consideration by the right kind of seed capital investor who is not only motivated by a financially safe and tax friendly return of and on his/her investment but also, by the knowledge that they will be prudently helping themselves by sincerely helping others an experienced and socially responsible and wise investor who wishes to enhance the lives of the less fortunate but in a safe way with full recourse against loss. The opportunity is simple. We wish to create a real estate management company which creates real estate capital pools/funds based on satisfying a real market need and based on sound economic market principals. This company seeks to connect three specific target markets: a large market of below market value and foreclosed homes, a large pool of investors who will see the value in asset backed investing at the bottom of the market, a large existing and growing market of qualified consumers who are motivated to invest and own a home. Our business model connects these three markets in a new creative way, featuring the contract for deed.

This plan contains forward looking statements and opinions which, rely on many risk factors which exist beyond the control of the authors. However, every effort has been made to provide the fullest and most accurate transparent disclosure possible given the limitations that this is a plan and plans cannot contemplate every possibility or eventuality and plans by nature are subject to change. We advise review with professional competent legal and accounting advisors before making any financial commitment.

SQUARE ONE HOMES AND MORTGAGE, LP An Executive Summary

Purpose: The purpose of this Memorandum is to attract seed capital investment in the form of either a line of credit or a lump sum to capitalize the creation of Square One Homes and Mortgage LP (the Company) a fully Integrated Real Estate Services Company which creates, services and administrates Real Estate Investment Capital Pools. Vision: Our Vision at Square One Homes and Mortgage is that any qualified person or family can be forgiven and move beyond their past and be provided an opportunity to own a hometheir personal piece of the American Dream. Mission: Our mission is to redefine credit worthiness and facilitate the financial reconciliation process between the consumer and the traditional institutional lender. We will create a bridge between cautious private investors and the NOW wiser, and more responsible; credit disadvantaged consumers who are financially qualified to own a home. Unlike conventional lenders we will forgive the qualified consumers credit score and/or lack of current cash. We will re-empower them by granting a carefully parameterized opportunity which allows them home ownership. They will be able to rebuild their credit rating and create an equity position in a home. Goals & Objectives: At Square One Homes and Mortgage our main Goal and Objective is to create an integrated Real Estate Services company that balances the needs of three parties: the Consumer, the Fund Investor, and the conventional institutional Lender. As an ethical, professional and experienced Agent acting collaboratively on behalf of all three parties we will undertake to raise equity capital in investment pools and invest and manage this capital prudently with a carefully considered exit for all three parties Use of Seed Capital Funds: The seed capital will be used to complete a more specific, detailed, quantified, marketing and business plan for both the company and the funds it creates. We shal set up the company office, and then complete an initial sales initiative to have the USA/CAN Private Placement/Offering Memorandum significantly subscribed. Initially we shall create three Real Estate Fund types (the the Funds) which are to be funded by pooled investors (the Fund Investors) who earn a return through the Funds purchase of homes at below current market value (the Fund Capital Asset) which are then improved, and resold under a Contract for a Deed (the Fund Asset backed Financial Security) to consumers (the Customers) who typically have a blemished credit rating, but stable employment income and possibly a cash down payment. Through a safe level of leverage we shall enhance the returns to the Fund pool investor by taking down a blanket mortgage loan.

This plan contains forward looking statements and opinions which, rely on many risk factors which exist beyond the control of the authors. However, every effort has been made to provide the fullest and most accurate transparent disclosure possible given the limitations that this is a plan and plans cannot contemplate every possibility or eventuality and plans by nature are subject to change. We advise review with professional competent legal and accounting advisors before making any financial commitment.

The Company (Square One Homes & Mortgage) y y y The Company shall be a fully Integrated Services Real Estate Services Company that is legally structured as a Limited Partnership. The Funds shall also be Limited Partnerships. The Head Office will be within the greater Metro Phoenix Area in the state of Arizona, in the United States of America with Satellite Office in Calgary, AB, Canada The Ownership will be comprised of the active day to day management group (the General Partner) and the seed capital Investor (the Limited Partner ). Day to Day Company control and governance shall vest with the General Partner governed through a mutually agreeabale Partnership Agreement with the Limited Partner. Overall Legal Organizational Structure shall be comprised of Square One, LP the services provider - the General Partner holding a minority ownership interest in several LP Funds. Please see exhibit below.

Legal Organizational Structure Square One Equity Investor Square One Homes & Mortgage, General Partner

ASSET Fund Type A, LP

ASSET Fund Type B, LP

ASSET Fund Type C, LP

ASSET Fund Type D, LP

Purchase &Resale
Values of $350K & Up

Contract For a Deed

Up to 100% Financing

Contract For a Deed

Up to 70% Financing

1st Mortgage Notes

Up to 80% Financing

POOL FUND INVESTORS - LLC MEMBERS of Funds

Company Management We are a professional, experienced and ethical and team. Each manager has a proven and confirmable track record, work history and good character reputation in their respective market. The skills sets are complimentary, the personalities are compatible and each manager fills a required role and shall operate and administrate a profit center or division within the company. Team Track Record: There have been extensive meetings over months of time to test the individual commitment level of each team member and there has been no change in commitment by anyone. The team members have complimentary skill sets, and compatible mature, responsible, personalities - tested by responses to risk tolerance and liability discussions.

This plan contains forward looking statements and opinions which, rely on many risk factors which exist beyond the control of the authors. However, every effort has been made to provide the fullest and most accurate transparent disclosure possible given the limitations that this is a plan and plans cannot contemplate every possibility or eventuality and plans by nature are subject to change. We advise review with professional competent legal and accounting advisors before making any financial commitment.

Managers/General Partners:  Jay Galt, Director of Capital Assets Design, Construction and Facilities Services o Property Inspections & Condition Reports, Estimating, Tendering, Procurement, Work Scheduling, Job Cost & Variance Reporting, Trade, Employee Contract Administration  Lawrence Kolikoff, Director of Financial Assets, Asset Management and Financial Brokerage o Investment Analysis, Financial Structuring, Portfolio Balance, Fund Investment Reporting, Creation of Financial Products, Direction of IT and Accounting,  Mack McKenzie, Director of Marketing & Sales o Market Research and Analysis, Strategic Market Planning, Development and Implementation of Advertizing and Promotion Campaigns, Direct Sales Operations  Gary Lazo, Director of Securities Brokerage o Support the Director of Finance and Director of Marketing in the creation of Fund Investor strategy, collateral materials, develop and lead a financial products sales team, assess performance of team.  Marlys Lazarus, Co-Director of Property Brokerage o Support the Director of Marketing in market and neighborhood analysis, and implement the procurement plan. Oversee the sales teams acquisitions on a unit by unit basis, follow the purchase through from offer to closing.  Sammy Glassman, Co-Director of Property Brokerage o Support the Director of Marketing in purchaser analysis, and implement the Sales plan. Oversee the sales teams closings on a unit by unit basis, follow the sale through from offer to closing. Company Management Organizational Chart Jay Galt
Director of Capital Assets Design, Construction, Facilities & Property Management

Lawrence Kolikoff
Director of Finance, Mortgage Brokerage & Asset Management

Mack McKenzie
Director of Marketing, Research & Sales

Down Line Resources

Architects, Engineers, General and Trade Contractors, Supplier Vendors & Property Mgt.

Gary Lazo
Director of Securities Brokerage / Financial Sales

Marlys Lazarus Sammy Glassman

Co-Directors of Property Brokerage (Purchases & Sales)

This plan contains forward looking statements and opinions which, rely on many risk factors which exist beyond the control of the authors. However, every effort has been made to provide the fullest and most accurate transparent disclosure possible given the limitations that this is a plan and plans cannot contemplate every possibility or eventuality and plans by nature are subject to change. We advise review with professional competent legal and accounting advisors before making any financial commitment.

Personnel Human Resources phased in at Operational Stage as Income Permits: y y y y y y y y Receptionist / Secretarial Accountant / Controller Bookkeepers Converged Voice/Data MS Certified IT Network and Applications Technician Mortgage Underwriter Building Operators Property Managers Project Managers

Outsourced Professional Service Providers: y y y y y y Susan Wissink, Corporate, Fennemore Craig Law Firm Stephen Good, Investment Tax planning, Fennemore Craig Law Firm, Don Miner, Real Estate, Fennemore Craig Law Firm Sean Sabo, Real Estate, Fennemore Craig Law Firm Bob Keats, Keats Connelly, CA and CPAs Canada/US Tax Accounting, Harry Grange, Information Technology Service Provider (TBD)

Strategic Partners: y y y Vernon Swaback, Swaback & Partners, Architect Larry Lazarus, Lazarus and Associates, Land Use Attorney Chris Smith, Sunbelt Realty

MARKETING - Creation of the Funds - A Market Driven Opportunity y History: Although this is not the first US residential market meltdown, the current one has similar characteristics to the Savings and Loan or Junk Bond meltdowns experienced in the late 1980s. However, this downturn has been more pervasive as the entire national economy slowed considerably. Introducing excess liquidity by encouraging over leveraging of a conventionally low yield asset class through the use of subprime notes created a pyramiding effect that eventually imploded because in many cases it exceeded the financial capacity of the note payer or consumer. Market Research: The opportunity for Square One Homes & Mortgage came about as a result of researching and analyzing the after effects of the local economy and the subprime mortgage market liquidity within our target markets. During the resulting devaluation, many consumers walked away from their loan commitments due to upside down equity positions and/or unemployment and/or lack of savings. Our research to date has been by in depth verbal discussions with a variety of university professors, property brokers, mortgage underwriters, bankers, economists and review of many in depth economic market research reports from banking, mortgage, and other housing industries. General Housing Market Trend: The US residential market has been in a declining position for three years and based on a double bottom theory has reached bottom in all of

This plan contains forward looking statements and opinions which, rely on many risk factors which exist beyond the control of the authors. However, every effort has been made to provide the fullest and most accurate transparent disclosure possible given the limitations that this is a plan and plans cannot contemplate every possibility or eventuality and plans by nature are subject to change. We advise review with professional competent legal and accounting advisors before making any financial commitment.

our respective target market areas but there is evidence that these markets have stabilized and have begun to recover. Banking Laws: Current changes to federal banking laws to which we are not bound, have now set minimum purchaser ownership equity requirements to 20% of market value. Nearly all those who have lost or walked away from their homes now have blemished credit ratings and little to no savings. They will find the change in banking laws an even more difficult financial hurdle to overcome when considering home ownership in any price range. Market & Neighborhood Areas of Fund Investment Focus: The market areas of focus will be the states of Arizona, Nevada, California and potentially Texas and Florida. The areas of focus within these states are Metropolitan Statistical Areas of: Phoenix, Tucson, Dallas/Fort Worth, Palm Springs, and Las Vegas. These areas have shown a very large number of foreclosures and will continue to for some time. As an example, the current number of unoccupied homes in the Metro Phoenix valley market currently exceeds 360,000 units. In these respective metropolitan statistical areas we shall analyze the county, the city, the zip code, the subdivision, the neighborhood, and the block that the home sits within to ensure that the property is located within a desirable and sustainable neighborhood. Consumer/Buyer Profile: Our target consumer is a young couple aged 28 to 50 years old, with or without a family, typically a double income household with combined incomes of $70,000 or greater, not carrying excessive auto loan, LOC or credit card debt balances, in good health, properly insured, university, college or tech school educated, sound in character, a sense of ambition, and a sense of family values, employed by stable employer in an established business within an established industry segment, with the employer for at least a year. Basically, those consumers that meet reasonable underwriting requirements but have insufficient savings and/or damaged credit ratings and can sustain new ownership under financial underwriting where the payment is not more than 30 -35% of their gross income. Currently, this represents a large and growing market fueled by the new banking laws which will be further quantified in the business plan. Our targeted consumers are individuals who are motivated to both own a home and to invest in a home at the bottom of the market so as to create a new sustainable equity position. Product Sources: We shall use a variety of suppliers to achieve our procurement objectives including but not limited to trustee/foreclosure auctions, private and short sales, bank/mortgage companies, insurance companies and home purchasers/the consumer. Financial Product / Contract for Deed: Simply a long term installment sale contract protracted up to 5 years allowing the consumer an opportunity to rebuild credit, participate in a potentially raising market and to build equity. The Opportunity: There is a large pool of residential homes available at a significant discount to market, a large pool of private investors and a large pool of financially capable non-creditworthy buyers. Therefore by investing seed capital in Square One to create investment funds backed by real estate, the investor will earn a strong and safe yield.

The Business Revenue Model: y We shall operate all funds on a fee for service basis plus a share on capital gains AFTER the fund investors receive their quarterly dividends, and achieve a targeted internal rate of return. The Company shall get paid last (see financial statements for detail.) We will provide a full range of services and complete, detailed and transparent financial performance reports showing complete Asset, Liability, Income, Expense and Net Asset Values. Each report

This plan contains forward looking statements and opinions which, rely on many risk factors which exist beyond the control of the authors. However, every effort has been made to provide the fullest and most accurate transparent disclosure possible given the limitations that this is a plan and plans cannot contemplate every possibility or eventuality and plans by nature are subject to change. We advise review with professional competent legal and accounting advisors before making any financial commitment.

shall include each funds current financial status and yield, and a communication of managements ongoing plans and activities. Square Ones Services to the Square One Funds are: y y y y y y y y y y y y y Financial Securitization (Securities Brokerage) Acquisition of assets (Property Brokerage) Design and Specifying (Design Management) Construction (Construction Management) Repair and Maintenance (Facilities Management) Asset and Portfolio Management (Asset Management) Contract & Property Management (Property Management) Accounting and Financial Reporting Services (Converged Management) Sales of Financial Instruments (Mortgage Brokerage) Disposition of assets (Property Brokerage) Mortgage Sales (Mortgage Brokerage) Mortgage Fund/ Asset Management Disposition/ Expiration of note (Return of Capital)

Square Ones Funds Products are: y y y y y LP Fund Membership Units the investors financial security Residential Housing Units, the real assets to back the financial security Value Purchase for Contract for a Deed the funds main income product Purchase/Agreement for Contract for a Deed the funds yield enhancement product. Mortgage Backed Notes

Square Ones Revolving Management Operational Work Flow Processes performed on behalf of the Square One fund(s) shall include: y y y y y y y y y y y y y y Advertize and Promote Financial Securities Initial sale of financial securities, Promote our business to banks and financial institutions Advertise and promote to home purchasers and Mortgages Research and Identification of homes and pre-purchase inspection Decision of which homes to acquire Purchase at auction or in blocks from lending institutions Finalize repair and improvement budget and schedule Implement repairs and improvements Take application from potential purchaser and analyze their financials Take Application from potential Mortgagor Reject or accept applications Enter into Contract for a Deed / Enter into Mortgage Note If more prudent and profitable, sell the improved home conventionally

The Parties Involved:

This plan contains forward looking statements and opinions which, rely on many risk factors which exist beyond the control of the authors. However, every effort has been made to provide the fullest and most accurate transparent disclosure possible given the limitations that this is a plan and plans cannot contemplate every possibility or eventuality and plans by nature are subject to change. We advise review with professional competent legal and accounting advisors before making any financial commitment.

y y y y y

Management team; Private investor; Banks, financial institutions and private sellers; The Funds and their respective Investors; and Home purchasers and Mortgagors

Square One Homes and Mortgage LP Operating Process y y y y y y y y y y y Create and fund LP Funds Purchase foreclosed homes at an appropriate price to market and in the appropriate location Renovate homes into a better than average condition Prepare it for sale Find buyer / review credit history Prepare and sign contract for sale, future homeowner agrees to 100% financing @ 400bps above LIBOR, 30 year amortized loan Move allowance Work with banks to restore homeowners credit Within a 5 year term, homeowner will close on the contract with conventional financing. If the market value of the asset during the contract period appreciates more than 25%, Square One will share in 50% of that appreciation. Homeowner prepays or takes out note at the end of its 5 year term with conventional financing.

Competition The competition comes from three sources: buyers of distressed and foreclosed single family homes and the already existing supply of available homes already on the market and for mortgages, conventional lenders. Investment Risks y y y y y y y y y Currency Risk between CAN/US Dollar Foreclosed Home Supply Tightening by Lenders holding inventory Consumer Housing Market Demand Depth and quality of qualified Purchasers for Contract for a Deed or Mortgagors Fund Liquidity - Fully Subscribing the PPM/OM Competition by other groups Housing prices decline Management Team performance Window of Opportunity Closing faster than expected and tightening value differential

Marketing Plan We shall run a four tiered marketing campaign, to our investors into the Square One Funds, to banks and financial institution for home purchases, to the credit disadvantaged public and to the needy.

This plan contains forward looking statements and opinions which, rely on many risk factors which exist beyond the control of the authors. However, every effort has been made to provide the fullest and most accurate transparent disclosure possible given the limitations that this is a plan and plans cannot contemplate every possibility or eventuality and plans by nature are subject to change. We advise review with professional competent legal and accounting advisors before making any financial commitment.

Investors of the Square One Funds: y y y y Internet we will have an Internet landing page that will entice investors to contact us. Public Relations - We we launch a series of press releases and feature articles that will appeal to investors and provide credibility for our company. Direct calls and Sales presentations Word of mouth

Buying homes from banks and financial institutions: We believe our story will be compelling to this market. The public image of the banking industry as a whole has suffered greatly over the last several years. They are in need of a vehicle that will lift this image up. We believe Square One can be one of them giving us a competitive advantage in purchases. It our intent to buy in bulk. y y y Direct mail campaign A direct mail campaign to banks and financial institutions is one of the best ways to reach this market. Direct calls and Sales presentations We will support the marketing efforts with the corporate brochure, website, support materials, etc.

Credit disadvantaged: This market is a very diverse market of all ages and can be found in a variety of places. We will use a variety of marketing mediums to reach and attract this audience. Internet - We shall utilize both push and pull social media correspondence engines and create direct and indirect websites that speaks directly to this target market. Our specific site will be both motivative and informative. Additionally and more traditionally, banners will be placed on a variety of select websites. y y y Public Relations - We will launch a series of press releases and feature articles on the ways we are helping those with bad credit purchase a new home. Brochures - A brochure and flyers will be developed for the home buyer and will provide information to those who have inquired about out program and properties. Social Media/Email campaigns In addition to purchasing lists for people who have low credit scores or have applied to banks for home loans and have been turned down, we shall use the latest social media technologies. Newspapers - When targeting buyers of a specific area, ads will be placed in the home and real estate sections of some select newspapers.

Kids for Kids Charities: y The Management of Square One currently assists with a specific charity called Kids for Kids. It is completely run by kids to specifically help kids in need. They work with sick, homeless and orphaned children of all ages. They also help with single parent families and single moms. It is Square Ones intention to work with our investors and donate a few of our acquired homes to Kid for Kids at a discounted price where the tax credit is equivalent to the assets equity, in essence no cost to the investor. Kid for Kids will then donate these homes at cost to Single Moms and homeless families while Square One will offer 100% financing at Square Ones cost of capital. The benefit of this other than all

This plan contains forward looking statements and opinions which, rely on many risk factors which exist beyond the control of the authors. However, every effort has been made to provide the fullest and most accurate transparent disclosure possible given the limitations that this is a plan and plans cannot contemplate every possibility or eventuality and plans by nature are subject to change. We advise review with professional competent legal and accounting advisors before making any financial commitment.

of the feel good reasons simply is great public relations and we strongly believe this will aid in increasing the velocity in sales. Government / Taxes y y y The tax Treaty between Canada and USA allows for the recovery of withholding tax held by IRS and/or Offsetting investment tax credits by Revenue Canada. Private Placement Memorandum/Offering Memorandum will be registered as being marketed with the SEC in each province and state. Funds shall operate under the laws of the State of Arizona

Business Model: Our business model shall include four types of investments and thus we shall create four types of investment pools. The four investment types shall include, The Simple Flip, the Value Purchase, the Purchase Agreement and finally Mortgage Loans. The Simple Flip Model Simply we will take advantage of distressed single family home market by buying such properties at a significant discount to market value. We are offering homes for sale with an equity position no greater than at 80% of its market value. If you reference the example below you can see the value, purchase price and the additional capital with an 80% equity position. In this scenario the six, nine and twelve month internal rate of return varies from 41% to 19% respectively. Simple Flip Example Value Purchase Price Closing Costs Operating Cost During 6 Mo. Hold Additional Capital Subtotal Cost Discount to Value Staging Closing Cost Selling Brokerage Selling Cost Total Equity Discount to Value 6 Month IRR 9 Month IRR

$600,000 $414,600 $3,000 $2,400 $60,000 $480,000 80.0% $600 $2,000 $18,000 $20,600 $500,600 83.4% 41.3% 26.4%

This plan contains forward looking statements and opinions which, rely on many risk factors which exist beyond the control of the authors. However, every effort has been made to provide the fullest and most accurate transparent disclosure possible given the limitations that this is a plan and plans cannot contemplate every possibility or eventuality and plans by nature are subject to change. We advise review with professional competent legal and accounting advisors before making any financial commitment.

10

12 Month IRR

19.2%

Value Purchase Model Like above, we shall take advantage of distressed single family home market by buying distressed properties at a significant discount to market value. We are offering homes for sale with an equity position no greater than 80% of its market value for no money down or as much as 100% financing. The company will lend at 400 basis points (bps) above the companys cost of debt. This 100% financing is essentially a long term contract of sale (Contract For Deed) for up to a 5 year period, the time it will take in some cases to clear the buyers credit. The deed will pass when only all parties completed the terms on the contract and the buyer obtained third party financing to pay balance owed in full. The company will help buyer to reestablish credit, obtain financing to close the transaction and well take the buyer through the third party financing process. For the buyers we will lock in the purchase price in a bottoming market and offer 100% financing for the contract period. This will enable them to own their home where renting is their only conventional option. During the contract period buyers shall benefit from amortization. We shall also allow the buyer to sell their position in the contract with approval when their position has value. Upon closing of the contract for sale, should the increase in value of the home exceed 25%, the Square One Fund will receive 50% of the increase in value greater than 25% of the contracted purchase price. During the contract period the company will leverage each property up to a 70% loan to value ratio taking all or most of the investors equity out. Also during the contract period the buyer will be responsible for taxes, insurance, HOA expenses and all maintenance. This strategy will increase liquidity, shorten sale time, the investor will share in sharp upswings in value with minimal or zero equity in each asset. The company will earn a high rate of interest on up to 100% of its market value. In the case of default, the rate in which the buyer is paying during the contract period in almost all cases will exceed current market rental rates. Thus, a default has little or no downside. If you reference the example below you can see the value, sales price and loan amount at $150,000. Upon contract signing, the company shall obtain a 70% LTV ratio ($105,000) interest only loan at 5% while lending $150,000 to the buyer at 9%. This scenario enjoys more than a 80% periodic annualized return and upon closing two to five years later a 41% to 35% IRR respectively. Essentially this business model elongates a high yield for up to five years versus if we have just flipping in a 3 to 12 month time period. Sale To Tenant Value LTV Ratio Rate Amortization Term (years) Monthly Loan Payments Taxes/Mo. (pass-through)

$150,000 100% 9% YES 30 $1,207 $200

This plan contains forward looking statements and opinions which, rely on many risk factors which exist beyond the control of the authors. However, every effort has been made to provide the fullest and most accurate transparent disclosure possible given the limitations that this is a plan and plans cannot contemplate every possibility or eventuality and plans by nature are subject to change. We advise review with professional competent legal and accounting advisors before making any financial commitment.

11

Ins./Mo. (pass-through) HOA/Mo. (pass-through) Total Buyers Payment

$100 $50 $1,557

Equity Investment Purchase Price Closing Costs Capital Improvements Contract Cost Broker Staging cost Moving Allowance Bridge Loan Closing cost Bridge Loan (70% LTV) Equity Debt /Mo.(5% no amort.) After Debt Cash Flow Annualized Periodic Yield 2 Year IRR 3 Year IRR 4 Year IRR 5 Year IRR

$90,000 $3,000 $15,000 $2,000 $4,500 $600 $0 $1,000 ($105,000) $11,100 $438 $769 $9,233 83.2% 41.0% 38.2% 36.7% 35.7%

Purchase Agreement Model The Credit disadvantaged market is quite vast, far greater than the amount of foreclosures we could be possibly acquire. This business model takes advantage of the market as a whole and gives the client their choice in all available homes, not just our acquisitions like in the example above. In the example below a client wishes to purchase a house for $150,000, the market value. They would be responsible for the 20% LTV deposit ($30,000), and all of the closing costs ($5,100). The Company would then purchase the property for the client and sign a contract for deed. In a simultaneous closing, the company shall use the clients capital above to secure a 70% LTV 30 Year amortized mortgage in this example at 5%. The company would supply the remaining 10% equity ($15,000) and the company and client would sign a contract for deed with where the client would make payments on an 80%
This plan contains forward looking statements and opinions which, rely on many risk factors which exist beyond the control of the authors. However, every effort has been made to provide the fullest and most accurate transparent disclosure possible given the limitations that this is a plan and plans cannot contemplate every possibility or eventuality and plans by nature are subject to change. We advise review with professional competent legal and accounting advisors before making any financial commitment.

12

amortized loan ($120,000) with an interest rate 400 basis points (bps) above the companys cost of debt (5%). The contract shall be set to expire in 5 years, the outside time it would take to clear up their credit and the client within that period is required to find conventional financing sources to close on the contract, purchasing the property and taking The Company out. During the contract period The Company will escrow for taxes, insurance, HOA, landscaping and exterior maintenance. Should the client default, we shall evict them, put the property on the market for quick sale, make the company whole and return remaining equity to the client. Please see example below. Sale To Purchaser Value Deposit Contract Cost Bridge Loan Closing cost Other Closing Costs LTV Ratio Rate Amortization Term (years) Payments Balance After 5 years Equity Investment Purchase Price Contract Cost Broker Bridge Loan Closing cost Bridge Loan Equity Bridge Loan Interest Rate Loan To Value Bridge Debt Closing cost Amortization Term Years Payments Balance After 5 Yrs Terminal Sale Cost

$150,000 $30,000 $2,000 $2,100 $1,000 80% 9.00% YES 30 $966 $115,056

$120,000 $0 $0 $0 ($105,000) $15,000

5% 70% $105,000 2% YES 30 $564 $96,420 1.00%

This plan contains forward looking statements and opinions which, rely on many risk factors which exist beyond the control of the authors. However, every effort has been made to provide the fullest and most accurate transparent disclosure possible given the limitations that this is a plan and plans cannot contemplate every possibility or eventuality and plans by nature are subject to change. We advise review with professional competent legal and accounting advisors before making any financial commitment.

13

Payment Spread Reversion Spread Periodic Return IRR

$402 $18,636 32.2% 33.5%

Both Contract for Deed Business model (Value Purchase and Purchase Agreement) fee structure is performance based and is as follows: y y y y y y y y y y 5% Syndication Fee 5% Finders Fee 25% Capital Improvement Override 25% R&M Override $150 Property Management Fee per unit 2% Financial Underwriting & Financing Fee 5% Disposition Fee 25% Brokerage Override 5% Asset Management Fee of cash flow A 50:50 Equity split above investors 12% IRR

Mortgages Business Model This is a simple mortgage fund business model where we shall lend 400 basis points above prime. Schedule and Milestones Upon funding from our equity investor we shall spend three months creating the Private Placement Memorandum (PPM), the Operating Agreement, coordinate with tax and accounting professionals and write the complete Business Plan. The next six months will be spent marketing, pooling investment capital and sourcing investments. As investment opportunities arise we shall close down pools and invest. Before the conclusion of year two, we anticipate returning Square Ones equity investor investment with their required interest. Exit to Square One Homes and Mortgage Equity Investor Our contemplated exit at this point before discussions is, first return of the original invested principal during the securitization stage, estimated to be within 9 months. Then, provide either an ongoing equity position which can be purchased back by the other Partners after a specified yield or a repayable note held in priority to the distribution of dividends to the other General Partners. Exit to the Square One Homes and Mortgage Pool Fund Investors

This plan contains forward looking statements and opinions which, rely on many risk factors which exist beyond the control of the authors. However, every effort has been made to provide the fullest and most accurate transparent disclosure possible given the limitations that this is a plan and plans cannot contemplate every possibility or eventuality and plans by nature are subject to change. We advise review with professional competent legal and accounting advisors before making any financial commitment.

14

There are a number of exits available to pool investors. Some of the possible exits we envision are: holding the contract deeds until take out by conventional lenders, resale of security to another private investor, sale of entire fund pool to a significant purchaser, payout part of the original investment through assumption of portfolio debt. At this point there are many exits and they shall be more firmly defined upon completion of the business plan and Offering memorandum and after further investigation of pool investors preferences.

This plan contains forward looking statements and opinions which, rely on many risk factors which exist beyond the control of the authors. However, every effort has been made to provide the fullest and most accurate transparent disclosure possible given the limitations that this is a plan and plans cannot contemplate every possibility or eventuality and plans by nature are subject to change. We advise review with professional competent legal and accounting advisors before making any financial commitment.

15