Project Develpment Overview

The Partnership was established for the purpose of owning and operating interests in a diversified portfolio of residential real estate properties. The Partnership does not have an operating history. To date, the activities of the Partnership have been confined to conducting discussions for the purpose of identifying potential acquisitions of commercially viable businesses and assets, but the Partnership has not entered into any agreement regarding the same.

Assuming that the Maximum Offering is sold, the General Partner intends to cause the Partnership to apply the $33,070,000 remaining of the Net Proceeds (after creating a reserve fund, paying the expenses of the Offering and paying the closing costs associated with the purchase of Portfolio Investments) to the purchase price of as yet unidentified properties.

The Partnership intends to raise sufficient funds through the Offering to match the supply of suitable properties on market. Whether purchasing properties: (i) at REO auctions; (ii) directly at courthouse auctions; or (iii) directly from lenders in possession of homes, the Partnership will seek to limit the exposure of the Partnership while trying to achieve positive returns by:

(a) primarily targeting for acquisition as Portfolio Investments, properties having an acquisition cost that is below seventy-five percent (75%) of their Fair Market Value;

(b) determining, through internal research, the maximum acquisition cost that may be invested in a particular property in order for the Partnership to achieve its desired returns; and

(c) purchasing primarily properties subject to foreclosure proceedings in the United States.