Peak Financial Partners Investor Presentation

Investors Presentation

2

Disclaimer

THE INFORMATION CONTAINED IN THIS PRESENTATION IS NOT INTENDED TO BE A SOLICITATION OR OFFERING. THE INFORMATION CONTAINED IN THIS PRESENTATION MUST BE KEPT CONFIDENTIAL AND MUST NOT BE USED FOR ANY OTHER PURPOSE.

THE INFORMATION CONTAINED IN THIS PRESENTATION INVOLVES A SUBSTANTIAL DEGREE OF RISK AND IS NOT APPROPRIATE FOR ANY PERSON WHO CANNOT AFFORD TO INCUR A LOSS OF PRINCIPAL. THE STATEMENTS CONTAINED IN THIS PRESENTATION ARE BASED ON INFORMATION AND ESTIMATES BELIEVED TO BE RELIABLE. ANY PERSON REVIEWING THIS DOCUMENT SHOULD CONSULT WITH HIS OR HER OWN LEGAL COUNSEL, ACCOUNTANT OR OTHER PROFESSIONAL ADVISOR CONCERNING THEIR POSSIBLE PARTICIPATION.

ALL INFORMATION CONTAINED IN THIS PRESENTATION IS SUBJECT TO CHANGE RESULTING FROM FLUCTUATIONS IN NATIONAL AND WORLD MARKETS INCLUDING, BUT NOT LIMITED TO, REAL ESTATE AND FINANCIAL MARKETS. THUS, CHANGES IN MARKET CONDITIONS (EXPECTED OR NOT) MAY CHANGE ALL ASSUMPTIONS AND ESTIMATES SET FORTH HEREIN. THEREFORE, NO RATES OF RETURN, PRICING, PROFITS, EXAMPLES OR ESTIMATES SET FORTH HEREIN ARE IN ANY MANNER GUARANTEED.

3

Table of Contents

I. History of Success

II. Opportunistic

III. Credit Facilities / JV

IV. Private Money Lending

V. Contact

4

I. History of Success

5

The Chinese use two brush strokes to write the word 'crisis.' One brush stroke stands for danger; the other for opportunity. In a crisis, be aware of the danger - but recognize the opportunity.

The unprecedented economic crisis over the past year has presented us with a rare opportunity. Private sector deleveraging is occurring throughout the real estate markets and we intend to take full advantage.

We have always strived to indentify trends and opportunities early on. Some 20 years ago, we began the Peak Corporate Network (“Peak”) and have successfully built a “one stop” network of real estate services and investment companies. This synergistic vision has enabled us to finance, acquire, develop, manage, market and exit investments using our own in-house resources.

Peak has the infrastructure, experience and know-how to take full advantage of this rare opportunity in the real estate markets.

History of Success

6

Ove

rvie

wPeak focuses on the acquisition and financing of residential andcommercial real estate

Opportunistic - Stable and distressed assets (notes and REO) are acquired from crisis stricken owners and lenders. Recent focus has been on failed condominium projects

Credit Facility / JV - Provide financing through credit facilities to buyers of small pools or single home purchases. Returns are high yield on a short term basis (ability to JV with equity kicker)

Private Money Lending - Collateral-based real estate loans that fill a non-conventional need for funding. Returns are high yield on a short term basis

History of Success

7

Peak manages assets in its portfolio as follows:

Use existing infrastructure and technology of Peak to support growth (MortgageServ, Doc Magic, RoboDocs, Calyx Point)

Experienced compliance team (best practices, reviews and ensures accuracy and monitors new regulations)

Complete investor/partner reporting system with weekly personal updates of all loans in the portfolio and their status

Servicing capabilities - our Fiserv platform is all done through lock boxes and also utilize Deutsche Bank as a custodian of valuable documents and City National bank for all banking

Use competent legal structuring and superior financial reporting (GAAP)

P OR

TFO

LIO

MG

MT

History of Success

8

Peak manages risk as follows:

All Peak lending is secured by a 1st Trust Deed on assets being purchased

Facilities and loans are secured by Personal Guarantees of the borrowers

In many cases, secondary collateral is brought to provide additional security

Peak underwrites at a conservative 50-65% LTV

Current distressed environment has lowered current market values and meant that LTVs are significantly less risky that in recent years - today's 50% LTV being equivalent in many cases to 25% of 2008 market value

Properties are insured and visited during loan term to assure occupancy and upkeep

Ris

kHistory of Success

9

Expe

rienc

eHistory of Success

Purchase of Partially Completed Condo ProjectsSouthern California Completed the purchase of two notes secured by partially completed condominium projects

Purchase of Non-Performing LoansSouthern CaliforniaCompleted the purchase of five non-performing loans secured by high-end residential properties

Development of Outlet MallThe Outlet Shoppes at El PasoEl Paso, TXCompleted the development of a 450,000 sq. ft. retail outlet mall

REO Credit FacilitiesWestern United StatesCompleted the financing of credit facilities to buyers of small residential

Purchase of 16 SFR HomesSouthern CaliforniaCompleted the purchase of 16 new homes

Private Money FinancingWestern United StatesCompleted the financing of short-term high yield mortgage loans

Acquisition of Office BuildingEl Paso, TXCompleted the acquisition of a 80,000 sq. ft. office building (class A)

Acquisition of LandSouthern CaliforniaCompleted the purchase of a 400 acre development

Acquisition of Retail CenterReno, NVCompleted the acquisition and rehab of a retail center with a top brand name anchor tenant

Acquisition of Class A Office BuildingsAgoura and Encino, CACompleted the purchase of two notes secured by Class A office with over 38,000 sq. ft.

10

MA

NA

GEM

ENT

Gil Priel

30+ years of experienceFounder of the Peak Corporate NetworkPreviously President of Priel Investment Properties, Inc. and Managing Director of Peak Capital Group, LLC, a fund in partnership with MSD CapitalSpecializes in equity-based joint ventures, acquisition of residential and commercial real estate and debt and equity financing J.D. from Southwestern University of Law and B.A. in Political Science from California State University, Northridge

Eli Tene

30+ years of experienceFounder of the Peak Corporate NetworkSpecializes in equity-based joint ventures, foreclosures, residential and commercial real estate, debt and equity financing and loss mitigation.Negotiated 1,000+ short sale transactions and managed various real estate portfoliosB.S. in Finance from California State University, Northridge

History of Success

11

History of Success

12

II. Opportunistic

13

Opportunistic

Peak focuses on the acquisition of the following types of assets:

Acquisition of commercial properties (condominiums, office, retail, industrial)

Acquisition of REO residential properties

Acquisition of performing and non-performing notes (commercial and residential), ultimately leading to direct property ownership

Recent focus has been on acquiring failed condominium projects (incomplete projects where lender stopped funding)ASS

ET T

YPE

14

Peak handles the deal flow and acquisition process as follows:

Use existing relationships of Peak to evaluate assets and portfolios

Direct negotiations with the owners and/or lenders prior to competitive bid

Offer aggressive, low price bids and negotiate for best value

Focus has been on quickly concluding one or two initial acquisitions to hit the ground running in order to develop further opportunities

DEA

LF L

OW

/P R

OC

ESS

Opportunistic

15

Peak acquires assets located primarily in the Western U.S.

Peak management has significant experience in these markets

Other states will be considered for investment opportunities

GEO

GR

APH

IC F

OC

US

CALIFORNIALos AngelesOrange CountySacramentoSan BernardinoSan DiegoSan Fernando ValleySan JoseEast Bay (SF)

NEVADALas VegasReno

ARIZONATucsonPhoenixScottsdale

TEXASEl PasoDallasAustinHouston

FLORIDAMiamiFt. LauderdaleNaplesWest Palm BeachOrlando

CALIFORNIALos AngelesOrange CountySacramentoSan BernardinoSan DiegoSan Fernando ValleySan JoseEast Bay (SF)

NEVADALas VegasReno

ARIZONATucsonPhoenixScottsdale

TEXASEl PasoDallasAustinHouston

FLORIDAMiamiFt. LauderdaleNaplesWest Palm BeachOrlando

Opportunistic

16

Cas

eSt

udy

14 unit failed condominium project in Southern California

Purchase of note from lender at a substantial discount (builder is in default)

Partner with the builder to complete the building (in exchange builder receives 20% of profits after preferred return)

Average square feet per unit is 1,800

Current value is approximately $6.45 million (avg. of $460,000 per unit)

Purchase price and holding costs are approximately $4.5 million

Exit strategy is 12 month sale of the units

Overall IRR of 37.5%

Opportunistic

17

Cas

eSt

udy

Opportunistic

Breakdown: Structure - Peak/Investor and Builder# of Units 14 Net Profit (After Pref) - Peak/Investor 80.0%Peak Current Value1 $6,450,000 Net Profit (After Pref) - Builder 20.0%

Avg Current Price Per Property $460,714Purchase Price of Note $4,200,000 Overall Internal Rate of Return2 37.5%

Additional Construction Costs $150,000Buyout - Partner $100,000Commissions (on purchase) $63,000

Total Purchase Price & Holding Costs $4,513,000Avg Purchase Price Per Property $322,357

Expense Assumptions:Property Taxes (% of Current Value) 1.25%Insurance (% of Current Value) 0.50%Closing Costs (% of Sales Price) 7.00%Foreclosure & Legal Fees $20,000

Footnotes:1. Based on Peak's internal assessment.2. Includes the net profit of 80% (after pref).

THIS MODELS ARE COMPLETED FOR ANALYSIS PURPOSES ONLY AND ARE IN NO WAY A GUARANTEE OF ANY RETURN OR EXPECTATIONS FROM PEAK.

18

III. Credit Facilities / JV

19

Provide financing through credit facilities to buyers of small pools or single home purchases

Typical facilities size range from $1 to $2 million (currently financing five facilities)

Predominate focus in the tri-state area of California, Nevada and Arizona

High yield returns on a short term basis (ability to JV with equity kicker)

Exposes investor to the current REO market in the safest possible position

Peak handles the due diligence and approval process in-house

Credit Facility / JVO

verv

iew

20

Peak completes a thorough background check on the borrower (track record, pricing, repairs)

Peak uses its in-house “independent” valuation team to review all potential REO purchases by borrower

Borrower pays for all expenses (repairs, maintenance, sale) and manages the entire purchase

Peak inspects and re-visits properties if they stay on the books over 4 months

Peak has the capability to handle all aspects of the default process using its FISERV platform and foreclosure services

Due

Dili

genc

eCredit Facility / JV

21

Key terms of the facility will include:

Facility Amount: $2 million to $10 million

Finance Charge: 12.0% to 14.0% annual rate fixed

Commitment Fee: 1.0% of the max facility amount

Draw Fee: 1.0% to 2.5% per draw

Exit Fee: 0.50%

Advance Rate: lesser of (a) 50% of our in-house valuation, or (b) 65% of the purchase price

Position: 1st TD

Term: One year from with a 1.0% renewal fee

F AC

ILIT

Y T

ERM

SCredit Facility / JV

22

Key terms (cont’d):

Payments: Payment of 150% of the amount allocated to that property or 70% of the selling prices, whichever is greater

Assures that investor is taken-out well before it reaches the least desirable, hard to move assets

Non-Use Fee: Balance must exceed 50% of the maximum amount of the facility within 90 days or the facility amount will be reduced and a fee of 1.0% applies to the reduction

F AC

ILIT

Y T

ERM

SCredit Facility / JV

23

Cas

eSt

udy

Credit Facility / JV

$2 million facility

Interest rate of 12.99%

Commitment fee of 1.0%

Draw fee of 1.50%

Exit fee of 0.50%

Servicing fee of 0.50% and transaction fee of $250 (paid to Bridgelock Servicing)

Borrower had 20 draws totaling $2.3 million

Average draw was $115,000

Average line outstanding was $402,000

Overall IRR of 22.7%

24

Credit Facility / JVC

ase

Stud

yAssumptions: Cash Flow Totals

Line of Credit Facility $2,000,000 Interest Income 52,285Advance Rate1 65.0% Draw Fee Income 34,500Average Home Market Value $176,923 Commitment & Exit Fee2 30,925Average Loan Size $115,000 Servicing & Transaction Fee3 (29,150)Note Rate - Borrower 12.99% Total Income Generated 88,560

Fees: Internal Rate of Return - Overall 22.7%

Draw Fee 1.50%Committment Fee 1.00%Exit Fee2 0.50%Transaction Fee3 $250Servicing Fee3 0.50%Term 1 Year

Line Overview:

# of Draws 20Total Draws $2,300,000Average Draw Amount $115,000Average Line Outstanding $402,500

Footnotes:1. Advance rate is 65% of market value based on Peak's estimate of value.2. Paid to Investor and Peak.3. Paid to Bridgelock Servicing.

THIS MODELS ARE COMPLETED FOR ANALYSIS PURPOSES ONLY AND ARE IN NO WAY A GUARANTEE OF ANY RETURN OR EXPECTATIONSFROM PEAK.

25

IV. Private Money Lending

26

Private Money LendingO

verv

iew

Peak provides private money collateral-based real estate loans that fill a non-conventional need for funding

Borrowers come to Peak due to a need to obtain capital in a short time span and/or traditional lending sources are not a good fit for the borrower

Peak is not encumbered by prohibitive policies and procedures that institutional lenders must follows

In exchange for the ease of obtaining a loan, Peak is able to charge a premium for its services

27

Private Money LendingC

hara

cter

istic

sSpecific characteristics of private money loans include:

Quick funding for time-sensitive loans

Short-term bridge loans

Larger loans with more flexible terms than institutions

Funding of investments by pledging equity in other real estate as collateral

28

Private Money LendingPa

ram

eter

sTARGET INVESTMENT PARAMETERS

Asset Type Private money loans secured by real estate

Geography National, with a focus on Southern California

Property Types All residential and commercial property types will be considered

Loan Purpose Any legal purpose/no construction loans

Loan Size Target loan commitment of $100,000 to $5,000,000 with average of between $500,000 and $1,000,000

Loan Term Terms of 6 to 12 months, excluding extensions

Loan-to-Value An average LTV of 65%

Pricing Fixed annual interest rates ranging from 12.0% to 15.00% and a 4% to 8% origination fee

Amortization All loans will be interest only

Other Collateral/Guarantees Loans will often include secondary collateral and personal guarantees

Prepayment Typically open to prepayment without penalty

Extension Fees Typically 3% for each 6-month period

29

V. Contact

30

Contact

Corporate Headquarters: Woodland HillsPeak Financial Plaza22837 Ventura Blvd. Suite 300Woodland Hills, CA 91364818-591-3300

Beverly Hills Office:Escrow of the West / Peak Finance Co.9440 Santa Monica Blvd., Suite 310Beverly Hills, CA 90210310-402-5555

Georgia Office:Asset Foreclosure Services (East Coast) 1280 Thistle Gate PathLawrenceville, GA 30045888-312-7738

Sherman Oaks Office:Escrow of the West13949 Ventura Blvd Ste 300Sherman Oaks CA 91423(888) 822-3689