21% Cash Return From Day 1*y

Single Family Investment PropertiesProperties Available –

From $51,000

Overview

• Requires less than $14,000 down

• Delivered fully rented

• Excellent financing available for qualified Buyers – 75% LTV fixed for 30 yearsBuyers 75% LTV fixed for 30 years

• Over 35% Annualized return over hold period

• Local property management in place –hands off investment

• Priced Below Replacement Cost – Only

*Does not take mortgage into account. See Cash Flow analysis for more detail.

p y$46/SF

• Rehabbed to HUD rental guidelines

• Strong rental location with high demand

Oth ti il bl t t f d t dOther properties available – contact for an updated Inventory List.

This is NOT a get rich quick scheme. Serious Investors only.

Interior Photos

Comparables

Current Listings:

$72,0004003 Tracy Ave3 Beds, 1 Bath1,379 Sq Ft$52 /Sq Ft

$90,0004332 Troost Ave4 Bed, 1.5 Bath1,342 Sq Ft$67/sq ft

$84,0004004 Bellafontaine3 Bed, 1 Bath1,215 Sq Ft$69/sq ft

$72,0004508 Benton Blvd3 Beds, 1 Bath1,198 Sq Ft$60 /Sq Ft

Additional Sales CompsAddress Sq Ft Beds Bath Sale Price $/Sq Ft Sale Date

3742 Wayne Ave 1,029 2 1 $78,000 $77 07/31/09

4009 Forest Ave 1,425 3 1 $89,000 $62 09/14/09

3726 Warwick Blvd 1,216 3 2 $69,000 $57 01/12/10

4126 Holmes St 1,228 3 1 $85,000 $70 07/31/09

l $ $ / /

Source: First American CoreLogic

4244 Holmes St 1,512 3 1 $94,000 $62 11/23/09

4315 Campbell St 1,674 4 2 $88,000 $53 07/16/09

1502 E 50th St 1,031 3 1 $60,000 $58 03/04/10

3937 S Benton Ave 1,262 3 2 $65,000 $52 07/30/09

Reasons to Invest

Reasons to InvestReasons to Invest• 21% Cash Return from Day 1*

• Requires less than $14,000 down

• Delivered fully rented

E ll t financing a ailable f lifi d B 75%• Excellent financing available for qualified Buyers – 75% LTV fixed for 30 years *

• Over 35% Annualized return over hold period

• Local property management in place – hands off investmentinvestment

• Priced Below Replacement Cost – Only $46/SF

• Rehabbed to HUD rental guidelines

• Strong rental location with high demand

• Rents in U.S. are projected to grow an average 5.9% in 2011

• Multiple exit strategies available

*Figures are estimates based on projections and assuming 75% LTV financing. Buyer to make his/her own determination of feasibility of investment and rely on his/her own investigation. Financing availability will depend on credit worthiness of Buyer and each Buyer must submit a full loan application and be approved.

Cash Flow

•Earn 21% Cash ReturnEarn 21% Cash Return on Day 1 •Earn 35% Annualized Return Over the hold periodperiod•Financing available –75% LTV fixed for 30 years*•Only $14,000 Down*y $ ,

*Financing available to qualified Buyers. Buyers must complete an application and submit a credit report. Figures above calculated using a 75% LTV loan fixed at 6.00% for 30 years.

Floor Plan

Ground Floor 1st Floor

Kansas City, Missouri

Why Buy Kansas City?

Kansas City metropolitan area is the largest city in the state of Missouri, encompassing 318 squaremiles. The population of the Kansas City metropolitan area exceeds two million people.

Kansas City is sometimes referred to colloquially as the Heart of America as it is near both thepopulation center of the United States and the geographic center of the 48 contiguous states.Situated at the confluence of the Missouri and Kansas rivers, Kansas City is well known for itsycontributions to the musical styles of jazz and blues as well as its famous cuisine known as KansasCity style barbecue.

Historically the real estate market in Kansas City has been one of stability and predictability,typically avoiding steep appreciation or depreciation. Fortune Magazine dubbed Kansas City a“safe haven for real estate”.

Missouri voters approved riverboat casino gaming on the Missouri and Mississippi Rivers in 1992.The first casino facility in the state opened in 1994 by Harrah's Entertainment. The combinedrevenues for the four casinos successfully operating in Kansas City exceeded $153 million permonth by Mid-2008.

Kansas City has an economy that has become diversified enough to withstand difficult times andhas even stayed ahead of the curve During the recent recession according to U S Department ofhas even stayed ahead of the curve. During the recent recession, according to U.S. Department ofLabor, Kansas City has held a lower unemployment rate than the US nationwide unemploymentrate. The healthcare and service industries have helped replace most jobs lost in themanufacturing sector. Compared to the rest of the country, Kansas City's cost of living is 19.59%lower than the U.S. average.

Kansas City has recently invested $9 billion into re-development with $4.5 billion going to create ad d h d h d bl knew entertainment district downtown. The Power and Light district is a new, nine-block

entertainment district comprising of numerous restaurants, bars, and retail shops. It is anchoredby the Sprint Center, a 19,000 seat complex that has become a top draw for sports and musicalentertainment.

Greater Kansas City is headquarters to four Fortune 500 companies (Sprint Nextel Corporation,H&R Block, Embarq Corporation, and YRC Worldwide Inc). In spite of a sluggish economy, USBank will be creating 1,100 new positions for a new service center in Overland Park. Othercompanies who are large employers in the Kansas City area include, Interstate BakeriesCorporation, Great Plains Energy, Aquila, AMC Theatres, DST Systems, Garmin International,Cerner Corporation and Russell Stover Candies.

RefurbishmentRefurbishment

The refurbishment of the property consists of:

• Brand new kitchens, including white goods

• New flooring is installed throughout the property

• New air conditioning systems replaced where necessaryg y p y

• New drywall installed where necessary

• All interior walls are completely repainted

• Exterior of the house is repainted where necessary

• Bathroom fixtures and fittings are refurbished or new

• All electrical and plumbing works are checked and replaced where necessary

• Front and rear gardens cleared and free from overgrowth and debris• Front and rear gardens cleared and free from overgrowth and debris

• First year home warranty (maintenance insurance) is included for all properties

• Homes are refurbished so that they are suitable for the private rental market and

qualify for the HUD (US Department of Housing and Urban Development) rental

program.

Exit Strategies

Should you wish to exit from the investment, you have a number of options available:

• Sell to your tenant

• Sell on the open market - as the general market picks up we can help advertise, promote and

k ( h l h f f l lmarket your property (we recommend holding the property for 5 years for optimal capital

growth)

• Refinance - withdraw your equity after 12 months

• We match sellers together - single units are packaged by us and sold as portfolios to investors.

• A blend of everything above will allow for a faster exit based on a portion of tenants taking up

the mortgage offer as well as open market and portfolio sales

• Don’t exit! Retain ownership of your property and continue to benefit from excellent yields

and long-term income streams

Contact InfoContact Info

For more information and an updated inventory list:

info@theresnofreelunchinrealestate.com

To get Prequalified for a Loan:

John Charlton

MORTGAGE ADVISOR

MIDWEST MORTGAGE CAPITAL

1227 FERN RIDGE PARKWAY, STE 200

ST. LOUIS, MO 63141

Office: 314.744.7851 | Fax: 314.744.7951

Cell: 314-517-0262

jcharlton@midwestmortgagecapital.com

www.midwestmortgagecapital.comg g p