This

property was purchased at trustee sale, fully renovated, inspected, and rented to a qualified tenant. This is a desireable single-story house with high-end finishes and vaulted ceilings. Future owner occupant demand will be high. Resale value will come back sooner on properties like this one.

2214 AKAMINE AVE, NORTH LAS VEGAS, 89031 4 bedroom 2 F bath 2230 SF home built in 1996 $ 149,900 Asking price
Notes: 7 8 22 9 1 2 3 10 11 12 13 8 14 5 6 30-year fixed Financed purchase $ 149,900 Asking price $ 119,920 Maximum loan $ 29,980 Down payment $ 7,101 Closing costs and fees from estimated HUD closing statement $ 37,081 Total Investment 5.00% Investment loan interest rate $ 1,300 $ 418 $ 882 $ 644 $ 238 $ 144 $ 382 $ 4,588 $ 37,081 12.4% $ 165,248 24.0% Rent Expenses Monthly net income Payment Monthly cashflow Principal amortization in payment Cashflow plus amortization Yearly cashflow plus amortization Total Investment (down payment plus closing costs) Cash-On-Cash Return = cashflow / total investment Cash at Sale in year 10 (profit plus amortization) Internal Rate of Return
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15-year fixed $ 149,900 $ 115,295 $ 34,605 $ 7,101 $ 41,706 4.50% $ 1,300 $ 418 $ 882 $ 917 $ (35) $ 450 $ 414 $ 4,971 $ 41,706 11.9% $ 215,255 29.5%
larry@IdealHomeBrokers.com (949) 351-6913

Ideal Home Brokers Property Offering Report

Notes: 1 2 3 $ 1,300 $ 418 $ 882 $ 10,584 $ 149,900 7.1% $ 262,389 $ 112,489 11.5%

All-cash purchase
Rent from tenant lease (see page 2 for comparables) Expenses (see page 2 for detail) Monthly net operating income Yearly net income Asking price (Investment) Capitalization Rate = net income / asking price Resale value in year 10 (net of 8% liquidation costs) Profit from sale in year 10 Internal Rate of Return

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Notes: Calculations 1 $ 1,300 Rent 15 16 17 18 19 $ 125 $ 85 $ - $ 78 $ - $ 288

Net Operating Income Detail

Terms

Cash Operating Expenses Property Tax Homeowners Insurance Homeowners Association Fees Property Management Fees (% of Gross Rent) Other Expenses Monthly Cash Expenses

1.0% 0.65% varies 6.0% 22.2%

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Reserve Expenses $ 75 Maintenance and Replacement Reserves $ 55 Vacancy and Collection Loss $ 130 Monthly Reserve Expenses $ 418 Total Expenses $ 882 Net Operating Income Comparable Resales
2214 SEXTON AV -- 3 bed 2 bath 1874 SF -- 1997 List: $137500 2207 LAPALCO AV -- 3 bed 2 bath 1874 SF -- 1996 List: $104900 6041 MARVIN ST -- 3 bed 2 bath 1702 SF -- 1997 List: $125000 6140 SATRE CT -- 3 bed 2 bath 1874 SF -- 1997 List: $149900 2111 SEXTON AV -- 3 bed 2 bath 1874 SF -- 1996 List: $130000 2203 LAPALCO AV -- 4 bed 2 bath 2230 SF -- 1996 List: $152000

5.8% 4.2% 10.0% 32.2% 67.8% Resale Date

10/26/11 9/30/11 9/30/11 9/16/11 7/8/11 6/28/11

Amount
$ 137,500 $ 135,000 $ 122,000 $ 165,100 $ 130,000 $ 152,000

Comparable Rentals
6039 THEATRICAL RD -- 3 bed 2 bath 1874 SF -- 1996 List: $1200 2316 SEXTON AV -- 3 bed 2 bath 1874 SF -- 1997 List: $1295 3605 LA CASCADA AV -- 4 bed 3 bath 2283 SF -- 2004 List: $1350 3524 PANTEGO AV -- 4 bed 2 bath 2212 SF -- 2005 List: $1500 3605 LA CASCADA AV -- 4 bed 3 bath 2283 SF -- 2004 List: $1350 3584 CANTURA CREST CT -- 4 bed 3 bath 2283 SF -- 2005 List: $1395 3605 LA CASCADA AV -- 4 bed 3 bath 2283 SF -- 2004 List: $1350 Ideal Home Brokers Property Offering Report
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Lease Date
10/9/10 10/19/10 6/9/11 1/14/11 5/18/11 10/13/10 9/3/10

Amount
$ 1,200 $ 1,295 $ 1,350 $ 1,400 $ 1,350 $ 1,395 $ 1,350

larry@IdealHomeBrokers.com (949) 351-6913

Projected 10-year appreciation to near rental parity with liquidation resale

$300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $- 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Rental Parity
2.5% annual rent growth

Resale Value

$285,205 $277,560

$216,829 $149,900
Undervaluaeon

Resale near rental parity in year 10

3 year trough to breakeven

5 years of double-digit appreciaeon

Financing Terms and Cash-On-Cash Returns

35.0% 30.0% Cash-On-Cash Return 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%

lower interest rates generate higher returns

lower down payments generate higher returns

Interest Ra te
Ideal Home Brokers Property Offering Report

larry@IdealHomeBrokers.com (949) 351-6913

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Notes: Gross Rent is estimated from comparable rentals or taken from actual rent rolls. 1 2 3
Summary of expenses from page 2 Net Operating Income is the rental income minus the cash expenses. This figure is independent of taxes or financing which vary considerably from deal to deal. Many rental properties are purchased without debt, and the Net Operating Income is necessary to compute the Capitalization Rate. The capitalization (cap) rate is the (yearly) Net Operating Income divided by the purchase price. It is the simplest measure of an investment's financial performance, and it provides a convenient comparison to competing investment alternatives. A cap rate is like an interest rate on a checking account, a mutual fund return, or a bond yield. The cap rate is inversely related to price; in other words, high cap rates are synonymous with low prices and visa versa. The cap rate an investor will accept varies from person to person. There is no single appropriate rate to apply to value. Instead, we show a range of values at different cap rates to show the current investment return someone can expect from this property. The resale value at in year 10 assumes prices appreciate strongly after the supply problems are resolved. (see page 3). The Internal Rate of Return evaluates the timing and the amount of each source of income and calculates a rate which would balance these various sources of income with the initial investment. IRR is the best method for calculating the returns on investments with variable income. Maximum loan based on lender limitations or available cashflow. Generally smaller for 15-year amortization. The down payment reflects the minimum up-front investment required based on financing limitations. Mortgage interest rates vary based on amortization schedule. The quicker the loan amortizes, the lower the interest rate. The monthly payment is the based on the largest loan a lender offers that still provides for positive cashflow The monthly cashflow shows the amount left over after all payments and reserves have been met. This is the calculated principal amortization in the first payment. This amount increases in subsequent payments. The actual monthly gain includes both left-over cashflow and amortization in the loan. The Cash-On-Cash Return is similar to a capitalization rate in that it shows a return on investment, but it is measured by comparing the Total Profit and Loss after Expenses, Debt and Taxes and compares that to the cash investment. This is the important rate of return for investors who are not purchasing with all cash. As long as debt is less expensive than the cap rate, the cash-on-cash returns can be magnified by increasing debt. This is an appropriate use of leverage to increase investment returns. This is the property tax amount set by the local jurisdiction. Estimated homeowners insurance. Homeowners association dues from property investigation. Property management fees vary, but 8%-10% of the monthly rent is a common fee. Monthly cash expenses are the actual outlays of cash each month to support the property. Estimated maintenance and replacement reserves. These are higher in single-family detached homes and in older properties. Vacancy and Collection Loss is an allowance for tenant turnover. Closing costs are estimated from our experience with dozens of transactions. This includes bank loan fees, escrow fees, title insurance, transfer taxes, and other costs associated with a typical real estate transaction.

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General Disclaimer
This report represents the considered opinion of Ideal Home Brokers. We make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates may not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

Ideal Home Brokers Property Offering Report

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larry@IdealHomeBrokers.com (949) 351-6913

Apple Blossom Arbitrage, LLC

Estimated HUD

The estimated HUD statement is an estimate of closing costs provided by a local escrow agent. The actual closing costs may vary from the amounts shown.

Apple Blossom Arbitrage, LLC 53 Midnight Sky Irvine, CA 92620

cell: (949) 351-6913 email: golfplan18@gmail.com

Apple Blossom Arbitrage, LLC

Signed Lease

The signed lease showing the actual rental amount obtained each month from the property.

Apple Blossom Arbitrage, LLC 53 Midnight Sky Irvine, CA 92620

cell: (949) 351-6913 email: golfplan18@gmail.com

Apple Blossom Arbitrage, LLC

Management Contract

The property is currently under third-party management. This section shows the signed management contract demonstrating fees.

Apple Blossom Arbitrage, LLC 53 Midnight Sky Irvine, CA 92620

cell: (949) 351-6913 email: golfplan18@gmail.com

Apple Blossom Arbitrage, LLC

Inspection Report

The property inspection report shows all the pertinent physical details of the property. The property was inspected after the initial renovation work, and any items which were revealed in the report were taken care of prior to tenant occupancy.

Apple Blossom Arbitrage, LLC 53 Midnight Sky Irvine, CA 92620

cell: (949) 351-6913 email: golfplan18@gmail.com

Apple Blossom Arbitrage, LLC

Draft Purchase and Sale agreement

A draft of the purchase and sale agreement is included for review prior to signing.

Apple Blossom Arbitrage, LLC 53 Midnight Sky Irvine, CA 92620

cell: (949) 351-6913 email: golfplan18@gmail.com