POTENTIAL OF 50% ANNUALIZED RETURN to JOINT VENTURE EQUITY INVESTORS!!!

EXPERIENCED DEVELOPER OFFERS INVESTMENT OPPORTUNITIES
TO JOINT VENTURE WITH EQUITY INVESTORS

POTENTIAL OF 50% ANNUALIZED RETURN

The project is to develop and construct 6 new single family homes in the Monterey Hills area of North East Los Angeles, which is about 5 miles from Downtown Los Angeles. The location is near the border of South Pasadena. The land is zoned for residential use, and all 6 lots have great city views.

The selling price is projected to be $599,000 per home, which is a popular price for the area. The estimated construction costs consist of the on-site and offsite construction, including the housing construction, street paving, curbs and gutters, underground utilities, and street lighting.

The initial phase is to complete all of the Entitlements for all of the Lots. These entitlements are
all nearing completion, and include the Architectural Plans, Engineering, Soils & Geology,
Topographic Maps, and Boundary Surveys.

Investment Funds
The Investment Funds required are to purchase the Land and finish the entitlements. The developer is requesting $360,000 from the Joint Venture Investors. The developer will also contribute an additional $360,000 in the form of cash and services. The balance of funds required to finish the development will be procured from a Construction Loan.

The Investors shall accrue monthly preferred interest payments at 12% per annum for their
Investment funds immediately from the time of the close of escrow for the Land Purchase.
The Investors shall receive the Repayment of their original Investment from the Sale of the
Single Family Residences, plus the accrued interest, prior to any of the Developers Profit Distribution.

Profit Participation
The project is expected to take 18 to 24 months to finish construction and complete the sales of all 6 homes. The profits shall be shared on a 50/50 basis with the Investors and with the developer.
The 12% preferred Interest accrued shall be paid to the Investors upon the sales of each unit on
a pro-rata basis. This preferred interest is part of the Investors 50% share but will be paid
before the developer receives his share of the profits. Depending on the speed of the sales, the
Investors may expect an estimated 50%, or more, annual return on their investment funds.