April 29, 2013

Dear Fellow Investors

As our real estate company is growing and the markets are changing, I need to constantly communicate with you better so that we can ensure continued growth of our company and so that you can make better informed investments.

The State of the Market

Residential market in San Diego is dry because the inventory is very low. We are having a difficult time finding deals as every property we bid on is outbidded by others who are often willing to pay above asking price. For this reason we have only acquired and finished one deal this year so far.

We are making headstrong efforts to find more deals and changing our business model as the market changes. We expect the market to continue to appreciate for the foreseeable future and want to buy, fix, and sell as much as we can while the market is hot.

The Company

The integral members of my team now includes John Hostetler our COO, Olga Levin-Diaz our CFO, Lenny Dance our soon to be in house realtor, and Jason Guthrie our General Contractor with whom we have started a sister construction company called San Diego Quality Rehab (SDQR).

The Deals

We do not have any current deals but are looking at different deals all the time. We are also looking at deals that others have asked for funding. We are looking at deals outside of California. We will present them to you as they mature. We will be consulting legal counsel in the next several weeks to ensure that we continue to operate in a way that is fully compliant with rules and regulations and that maximally protects our investors from liabilities.

Completed Deals

We recently finished and sold a deal in San Diego. We will have the details of this deal and how we did in the next email.