Year 0 Year 1 Year 2 Year 3 Year 4

Acquisition Cost ($10,000,000) $0 $0 $0 $0

Loan Funding $7,500,000
Net Operating Income $650,000 $650,000 $689,585 $497,191
Debt Service ($429,674) ($429,674) ($429,674) ($429,674)
Cash Flow after Financing $220,326 $220,326 $259,911 $67,517

Loan Payof ($7,367,922) ($7,230,463) ($7,087,404) ($6,938,517)

Property Value $10,000,000 $10,609,000 $7,649,089 $9,566,825
Cap Rate 6.50% 6.50% 6.50% 6.50% 6.50%

Unlevered Cash Flow ($10,000,000) $650,000 $650,000 $689,585 $497,191

IRR 9.2%
Equity Multiple 2.05X

Levered Cash Flow ($2,500,000) $220,326 $220,326 $259,911 $67,517

IRR 18.3%
Equity Multiple 2.05X

IRR Matrix
Unlevered 0 1 2 3 4
IRR
1 6.50% ($10,000,000) $10,650,000 $0 $0 $0
2 9.41% ($10,000,000) $650,000 $11,259,000 $0 $0
3 -1.31% ($10,000,000) $650,000 $650,000 $8,338,674 $0
4 5.24% ($10,000,000) $650,000 $650,000 $689,585 $10,064,016
5 8.92% ($10,000,000) $650,000 $650,000 $689,585 $497,191
6 9.00% ($10,000,000) $650,000 $650,000 $689,585 $497,191
7 9.06% ($10,000,000) $650,000 $650,000 $689,585 $497,191
8 9.11% ($10,000,000) $650,000 $650,000 $689,585 $497,191
9 9.14% ($10,000,000) $650,000 $650,000 $689,585 $497,191
10 9.17% ($10,000,000) $650,000 $650,000 $689,585 $497,191

IRR Matrix
Levered 0 1 2 3 4
IRR
1 14.10% ($2,500,000) $2,852,404 $0 $0 $0
2 24.47% ($2,500,000) $220,326 $3,598,863 $0 $0
3 -23.50% ($2,500,000) $220,326 $220,326 $821,596 $0
4 8.98% ($2,500,000) $220,326 $220,326 $259,911 $2,695,825
5 20.32% ($2,500,000) $220,326 $220,326 $259,911 $67,517
6 19.87% ($2,500,000) $220,326 $220,326 $259,911 $67,517
7 19.44% ($2,500,000) $220,326 $220,326 $259,911 $67,517
8 19.04% ($2,500,000) $220,326 $220,326 $259,911 $67,517
 9 18.68% ($2,500,000) $220,326 $220,326 $259,911 $67,517
10 18.34% ($2,500,000) $220,326 $220,326 $259,911 $67,517
 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
$0 $0 $0 $0 $0 $0

$621,844 $753,528 $776,134 $799,418 $823,401 $848,103 $873,546

($429,674) ($429,674) ($429,674) ($429,674) ($429,674) ($429,674)
$192,170 $323,854 $346,460 $369,744 $393,727 $418,429

($6,783,563) ($6,622,297) ($6,454,460) ($6,279,786) ($6,097,995) ($5,908,797)

$11,592,741 $11,940,523 $12,298,739 $12,667,701 $13,047,732 $13,439,164
6.50% 6.50% 6.50% 6.50% 6.50% 6.50%

$621,844 $753,528 $776,134 $799,418 $823,401 $14,287,266

$192,170 $323,854 $346,460 $369,744 $393,727 $7,948,796

5 6 7 8 9 10

$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$12,214,584 $0 $0 $0 $0 $0
$621,844 $12,694,051 $0 $0 $0 $0
$621,844 $753,528 $13,074,873 $0 $0 $0
$621,844 $753,528 $776,134 $13,467,119 $0 $0
$621,844 $753,528 $776,134 $799,418 $13,871,132 $0
$621,844 $753,528 $776,134 $799,418 $823,401 $14,287,266

5 6 7 8 9 10

$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$5,001,347 $0 $0 $0 $0 $0
$192,170 $5,642,080 $0 $0 $0 $0
$192,170 $323,854 $6,190,739 $0 $0 $0
$192,170 $323,854 $346,460 $6,757,659 $0 $0
$192,170 $323,854 $346,460 $369,744 $7,343,464 $0
$192,170 $323,854 $346,460 $369,744 $393,727 $7,948,796
 Year 0 Year 1 Year 2 Year 3 Year 4
Acquisition Cost ($10,000,000) $0 $0 $0 $0
Loan Funding $7,500,000
Net Operating Income $650,000 $650,000 $689,585 $497,191
Debt Service ($429,674) ($429,674) ($429,674) ($429,674)
Cash Flow after Financing $220,326 $220,326 $259,911 $67,517

Loan Payof ($7,367,922) ($7,230,463) ($7,087,404) ($6,938,517)

Property Value $10,000,000 $10,609,000 $7,649,089 $9,566,825
Cap Rate 6.50% 6.50% 6.50% 6.50% 6.50%

Unlevered Cash Flow ($10,000,000) $650,000 $650,000 $689,585 $497,191

IRR 9.2%
Equity Multiple 2.05X

Levered Cash Flow ($2,500,000) $220,326 $220,326 $259,911 $67,517

IRR 18.3%
Equity Multiple 2.05X

IRR Matrix
Unlevered IRR 0 1 2 3 4
1
2
3
4
5
6
7
8
9
10

IRR Matrix
Levered IRR 0 1 2 3 4
1
2
3
4
5
6
7
8
9
10
 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
$0 $0 $0 $0 $0 $0

$621,844 $753,528 $776,134 $799,418 $823,401 $848,103 $873,546

($429,674) ($429,674) ($429,674) ($429,674) ($429,674) ($429,674)
$192,170 $323,854 $346,460 $369,744 $393,727 $418,429

($6,783,563) ($6,622,297) ($6,454,460) ($6,279,786) ($6,097,995) ($5,908,797)

$11,592,741 $11,940,523 $12,298,739 $12,667,701 $13,047,732 $13,439,164
6.50% 6.50% 6.50% 6.50% 6.50% 6.50%

$621,844 $753,528 $776,134 $799,418 $823,401 $14,287,266

$192,170 $323,854 $346,460 $369,744 $393,727 $7,948,796

5 6 7 8 9 10

5 6 7 8 9 10
 Year 0 Year 1 Year 2 Year 3 Year 4
Acquisition Cost ($10,000,000) $0 $0 $0 $0
Loan Funding $7,500,000
Net Operating Income $650,000 $650,000 $689,585 $497,191
Debt Service ($429,674) ($429,674) ($429,674) ($429,674)
Cash Flow after Financing $220,326 $220,326 $259,911 $67,517

Loan Payof ($7,367,922) ($7,230,463) ($7,087,404) ($6,938,517)

Property Value $10,000,000 $10,609,000 $7,649,089 $9,566,825
Cap Rate 6.50% 6.50% 6.50% 6.50% 6.50%

Unlevered Cash Flow ($10,000,000) $650,000 $650,000 $689,585 $497,191

IRR 9.2%
Equity Multiple 2.05X

Levered Cash Flow ($2,500,000) $220,326 $220,326 $259,911 $67,517

IRR 18.3%
Equity Multiple 2.05X

IRR Matrix
Unlevered IRR 0 1 2 3 4
1
2
3
4
5
6
7
8
9
10

IRR Matrix
Levered IRR 0 1 2 3 4
1
2
3
4
5
6
7
8
9
10
 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
$0 $0 $0 $0 $0 $0

$621,844 $753,528 $776,134 $799,418 $823,401 $848,103 $873,546

($429,674) ($429,674) ($429,674) ($429,674) ($429,674) ($429,674)
$192,170 $323,854 $346,460 $369,744 $393,727 $418,429

($6,783,563) ($6,622,297) ($6,454,460) ($6,279,786) ($6,097,995) ($5,908,797)

$11,592,741 $11,940,523 $12,298,739 $12,667,701 $13,047,732 $13,439,164
6.50% 6.50% 6.50% 6.50% 6.50% 6.50%

$621,844 $753,528 $776,134 $799,418 $823,401 $14,287,266

$192,170 $323,854 $346,460 $369,744 $393,727 $7,948,796

5 6 7 8 9 10

5 6 7 8 9 10
 Year 0 Year 1 Year 2 Year 3 Year 4
Acquisition Cost ($10,000,000) $0 $0 $0 $0
Loan Funding $7,500,000
Net Operating Income $650,000 $650,000 $689,585 $497,191
Debt Service ($429,674) ($429,674) ($429,674) ($429,674)
Cash Flow after Financing $220,326 $220,326 $259,911 $67,517

Loan Payof ($7,367,922) ($7,230,463) ($7,087,404) ($6,938,517)

Property Value $10,000,000 $10,609,000 $7,649,089 $9,566,825
Cap Rate 6.50% 6.50% 6.50% 6.50% 6.50%

Unlevered Cash Flow ($10,000,000) $650,000 $650,000 $689,585 $497,191

IRR 9.2%
Equity Multiple 2.05X

Levered Cash Flow ($2,500,000) $220,326 $220,326 $259,911 $67,517

IRR 18.3%
Equity Multiple 2.05X

IRR Matrix
Unlevered IRR 0 1 2 3 4
1
2
3
4
5
6
7
8
9
10

IRR Matrix
Levered IRR 0 1 2 3 4
1
2
3
4
5
6
7
8
9
10
 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
$0 $0 $0 $0 $0 $0

$621,844 $753,528 $776,134 $799,418 $823,401 $848,103 $873,546

($429,674) ($429,674) ($429,674) ($429,674) ($429,674) ($429,674)
$192,170 $323,854 $346,460 $369,744 $393,727 $418,429

($6,783,563) ($6,622,297) ($6,454,460) ($6,279,786) ($6,097,995) ($5,908,797)

$11,592,741 $11,940,523 $12,298,739 $12,667,701 $13,047,732 $13,439,164
6.50% 6.50% 6.50% 6.50% 6.50% 6.50%

$621,844 $753,528 $776,134 $799,418 $823,401 $14,287,266

$192,170 $323,854 $346,460 $369,744 $393,727 $7,948,796

5 6 7 8 9 10

5 6 7 8 9 10
 0 1 2 3 4
Acquisition Cost (10,000,000)
Loan Funding 7,500,000
NOI 650,000 669,500 689,585 497,191
Debt Service (429,674) (429,674) (429,674) (429,674)
Cash Flow after Financing 220,326 239,826 259,911 67,517

Loan Payof (7,367,922) (7,230,463) (7,087,404) (6,938,517)

Property Value 10,300,000 10,609,000 7,649,089 9,566,825
Cap Rate 6.5% 6.5% 6.5% 6.5%

Unlevered CF (10,000,000) 650,000 669,500 689,585 497,191

IRR 9.2%
Equity Multiple 2.06x

Levered CF (2,500,000) 220,326 239,826 259,911 67,517

IRR 18.4%
Equity Multiple 2.06x
 5 6 7 8 9 10 11

621,844 753,528 776,134 799,418 823,401 848,103 873,546

(429,674) (429,674) (429,674) (429,674) (429,674) (429,674)
192,170 323,854 346,460 369,744 393,727 418,429

(6,783,563) (6,622,297) (6,454,460) (6,279,786) (6,097,995) (5,908,797)

11,592,741 11,940,523 12,298,739 12,667,701 13,047,732 13,439,164
6.5% 6.5% 6.5% 6.5% 6.5% 6.5%

621,844 753,528 776,134 799,418 823,401 14,287,266

192,170 323,854 346,460 369,744 393,727 7,948,796

 Year 0 Year 1 Year 2 Year 3 Year 4
Acquisition Cost ($10,000,000) $0 $0 $0 $0
Loan Funding $7,500,000
Net Operating Income $650,000 $650,000 $689,585 $497,191
Debt Service ($429,674) ($429,674) ($429,674) ($429,674)
Cash Flow after Financing $220,326 $220,326 $259,911 $67,517

Loan Payof ($7,367,922) ($7,230,463) ($7,087,404) ($6,938,517)

Property Value $10,000,000 $10,609,000 $7,649,089 $9,566,825
Cap Rate 6.50% 6.50% 6.50% 6.50% 6.50%

Unlevered Cash Flow ($10,000,000) $650,000 $650,000 $689,585 $497,191

IRR 9.2%
Equity Multiple 2.05X

Levered Cash Flow ($2,500,000) $220,326 $220,326 $259,911 $67,517

IRR 18.3%
Equity Multiple 2.05X

IRR Matrix
Unlevered IRR 0 1 2 3 4
1
2
3
4
5
6
7
8
9
10

IRR Matrix
Levered IRR 0 1 2 3 4
1
2
3
4
5
6
7
8
9
10
 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
$0 $0 $0 $0 $0 $0

$621,844 $753,528 $776,134 $799,418 $823,401 $848,103 $873,546

($429,674) ($429,674) ($429,674) ($429,674) ($429,674) ($429,674)
$192,170 $323,854 $346,460 $369,744 $393,727 $418,429

($6,783,563) ($6,622,297) ($6,454,460) ($6,279,786) ($6,097,995) ($5,908,797)

$11,592,741 $11,940,523 $12,298,739 $12,667,701 $13,047,732 $13,439,164
6.50% 6.50% 6.50% 6.50% 6.50% 6.50%

$621,844 $753,528 $776,134 $799,418 $823,401 $14,287,266

$192,170 $323,854 $346,460 $369,744 $393,727 $7,948,796

5 6 7 8 9 10

5 6 7 8 9 10